Greater SME participation in government procurement needed

The NSW Small Business Commissioner has highlighted some of the challenges faced by small businesses in government procurement, along with the opportunities for NSW from greater engagement with SMEs, at last week’s NSW Parliamentary Inquiry into the procurement practices of government agencies.

In his evidence, Commissioner Chris Lamont said it was vital that the NSW Government support and promote measures designed to encourage small business participation, not only to maintain a vibrant small business sector, but to ensure a diverse and competitive market, ensuring best value for NSW taxpayers.

The Commission regularly receives commentary from business regarding the complexity of procurement processes and bespoke contracts which not only confuse business, particularly small businesses, but also public servants responsible for administering procurement processes.

In a submission to the Parliamentary Inquiry earlier this year the Commission highlighted reports from the industry that infrastructure and transport works packages were being consolidated, which limits the opportunities for small business to participate.  The other issue routinely raised by business is the need for independent debriefings for small businesses to help them understand why they were unsuccessful for a tender and to help them improve their chances next time.

Through the inquiry, the Civil Contractors Federation NSW also highlighted the importance of the NSW government extending its collaborative efforts beyond tier 1 contractors and more actively engaging with tier 2 and 3 contractors at the early stages. The Federation maintains that this would ensure a more balanced and inclusive approach, capturing diverse insights and expertise across all tiers of the industry. 

“Reducing procurement and contractual complexities, along with measures to promote opportunities for local content and small businesses, will provide tangible and lasting benefits for NSW,” Mr Lamont said.

The Small Business Commission has developed practical guides and training to assist small business looking to tender to government. This material is free and available to all businesses, https://www.smallbusiness.nsw.gov.au/about-us/our-work/selling-to-the-nsw-government .

A copy of all submissions made to the Inquiry can be found on the Parliament of NSW web site.