Engaging with Australian suppliers

John Sheridan - CIO & CISO
The Department of Finance Archive

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Value for money is the core consideration when entities make procurement decisions. This ensures government procurement processes are accountable and the supplier best placed to deliver the service is awarded the contract. For lower valued procurements, below $80,000 for general goods and services and $7.5 million for construction services, entities are able to directly approach one or more suppliers of their choosing provided Division 1 of the CPRs is followed. The number of suppliers that should be approached is dependent on the scale, scope and risk of the procurement and each entity’s internal operational rules.

For procurements above these thresholds, the additional rules in Division 2 of the CPRs require an open approach to market unless:

a) a limited tender condition applies (found here) or
b) an exemption in Appendix A is relied upon (found here). 

Two of the Division 2 exemptions are designed to increase engagement with Australian Disability Enterprises and Indigenous Businesses. Exemption No. 16 can be applied when engaging a business that primarily exists to provide services of persons with a disability. More information on how to find an Australian Disability Enterprise (ADE) is provided on the ADE website here.

Exemption No. 17 can be used to engage a small and medium enterprise (SME) with at least 50 per cent Indigenous ownership. We have developed some guidance (in the form of an FAQ attached) to assist your understanding on how to use the exemption whether you are a Commonwealth entity or an Indigenous Business.

If you have any questions and you are a Commonwealth entity we suggest you speak with your Central Procurement Unit in the first instance. If you are an Indigenous Business and have a question you can contact us at: haveyoursayprocurement@finance.gov.au.


Last updated: 24 August 2016