Who are you going to call… myth busters part 1

Author: 
John Sheridan - CIO & CISO

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Hi all,

Commonwealth procurement is often a hot topic analysed by Senate committees, parliament, the media, industry participants, and peak industry bodies. Occasionally, such analyses unearth some misunderstandings, so I thought it would be useful to dispel some of the myths and set the record straight. The first of many myths is busted below, I’ll be continuing with more mythbusting over a regular series of blogs.

Myth 1: the Government does not support small business or SMEs

Fact: The Commonwealth Procurement Rules include a commitment to source at least 10 per cent of purchases by value from Small and Medium Enterprises (SMEs), but SMEs are even better represented that that in Commonwealth procurement, consistently winning more than 30% of contracts by value.

In 2013-14, SMEs were awarded 34.4% of all contracts reported on AusTender by value ($16.8 billion out of $48.9 billion) and 55.2% by volume (36,487 out of 66,047).

Small businesses (enterprises with fewer than 20 employees) also fared well in 2013-14, winning 30.1% of total contracts awarded by volume (19,887) and 11.6% by value ($5.7 billion).

In 2013-14, 95.7% of the contracts reported on AusTender were valued under $1 million. Only 842 contracts (1.3%) were valued at or above $5 million but these accounted for 79% of the total value reported. Further stats on Australian Government procurement contracts can be found here.

I have also attached [PDF 3.4 MB] some stats on Commonwealth procurement contracts awarded in 2013-14 including Australian vs overseas, SME and small business participation as well as contracts by value. 

Watch this space for 2014-15 stats in the coming months.

Let me know your thoughts in the comments below, or email haveyoursay.procurement@finance.gov.au.

John

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Last updated: 24 January 2018