Statistics on Australian Government Procurement Contracts

AusTender is the Commonwealth Government’s procurement information system. Suppliers and other interested parties seeking information on Commonwealth procurement can visit the AusTender website.

The Commonwealth Procurement Rules (CPRs) require Commonwealth entities to publish a range of information on AusTender, including planned procurements, open requests for tender, standing offer arrangements and details of contracts that have been awarded. Non-corporate Commonwealth entities (NCEs) are required to report details of contracts awarded with a value of $10,000 or more, and $400,000 or more for prescribed corporate Commonwealth entities (CCEs). Under the devolved procurement framework, individual entities are responsible for accurately reporting their procurements on AusTender.

The following data presents aggregated information that has been extracted from AusTender on 12 August 2020. The data reflects contractual information reported by entities during the relevant financial year in accordance with entities' procurement publishing obligations. Contract data can be amended, varied and updated by entities over time.

Invoice Payment Times

Under Finance’s payment terms policy Government entities paid a record 90.6 per cent of invoices for low value contracts within 20 calendar days last financial year, with the annual Australian Government Pay on-Time Survey revealing a significant improvement on the 2018-2019 financial year which saw only 61.7 per cent of invoices for contracts of up to $1 million paid within 20 calendar days.

Total Procurement Contracts

The contract values on AusTender represent the total maximum value of each contract over its life, including where contracts span multiple years. AusTender data does not reflect annual expenditure. 

In 2019-20 there were 81,174 contracts published on AusTender with a combined value of $53.9 billion.

Total Value of Procurement Contracts by Financial Year - $million

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Procurement Thresholds

In 2019-20:

  • 94.0 per cent of contracts by volume (76,342) were below $1 million; and

  • 337 high-value contracts (0.4 per cent by volume) represented 52.4 per cent of the total value of contracts awarded at $28.3 billion.

Below is a summary of the number and value of contracts awarded at various thresholds.

2019-20 Procurement Contracts by Value Threshold
Threshold Value $billion % of Total Value Number of Contracts  % of Total Number
Below $80k 1.5 2.9% 46,743 57.58%
$80k and above 52.4 97.1% 34,431 42.42%
Total 53.9 100% 81,174 100%
    Threshold breakdown  
$80k to <$200k 1.9 3.6% 14,866 18.31%
$200k to <$1m 5.9 10.9% 14,733 18.15%
$1m to <$4m 6.5 12.0% 3,324 4.09%
$4m to <$7.5m 3.4 6.3% 631 0.78%
$7.5m to <$20m 6.4 11.9% 540 0.67%
$20m and above 28.3 52.4% 337 0.42%

Location of suppliers 

95.8 per cent by volume and 88.3 per cent by value of the contracts in 2019-20 were awarded to businesses with an Australian address.

2019-20 Procurement Contracts: Overseas
  Total Overseas
Value $million 53,975.4 6,320.0
% 100.0% 11.7%
Number 81,174 3,410
% 100.0% 4.2%

Goods & Services

Procurement Contracts: Ratio of Goods and Services Contracts
    TOTAL Goods Services
2019-20 Value $million 53,975.4 20,582.0 33,393.3
% 100% 38% 62%
Number 81,174 24,559 56,615
% 100% 30% 70%
2018-19 Value $million 64,454.6 25,496.0 38,958.6
% 100% 40% 60%
Number 78,150 22,706 55,444
% 100% 29% 71%
2017-18 Value $million 71,127.3 39,346.1 31,781.2
% 100% 55% 45%
Number 73,458 23,092 50,366
% 100% 31% 69%
2016-17 Value $million 47,354.7 20,417.8 26,936.9
% 100% 43% 57%
Number 64,092 22,593 41,499
% 100% 35% 65%
2015-16 Value $million 56,912.3 24,460.2 32,452.2
% 100% 43% 57%
Number 70,338 26,520 43,818
% 100% 38% 62%
2014-15 Value $million 59,447.0 20,097.8 39,349.2
% 100% 34% 66%
Number 69,236 26,444 42,792
% 100% 38% 62%
 
2019-20 Procurement Contracts: Top 20 Categories for Goods & Services
Category Titles Value $million % of Total Value
Building construction and support and maintenance and repair services 6,189.5 11.5%
Education and Training Services 3,127.7 5.8%
Computer services         1,932.8 3.6%
Lease and rental of property or building     1,899.9 3.5%
Explosive materials         1,895.2 3.5%
Components for information technology or broadcasting or telecommunications        1,860.5  3.4%
Management advisory services   1,771.0  3.3%
Temporary personnel services       1,676.8 3.1%
Management support services     1,614.5 3.0%
Military watercraft         1,575.7 2.9%
Software   1,470.0 2.7%
Professional engineering services         1,412.5 2.6%
Military fixed wing aircraft         1,300.6 2.4%
Aerospace systems and components and equipment        1,153.7 2.1%
Aircraft         957.9 1.8%
Launchers   820.4 1.5%
Comprehensive health services         700.8 1.3%
Management information systems MIS         681.9 1.3%
Electronic hardware and component parts and accessories         677.5 1.3%
Legal services        668.6 1.2%
Grand Total 33,387.7 61.9% 

Note: Contracts reported on AusTender are categorised under the United Nations Standard Products and Services Code (UNSPSC).

The UNSPSC is selected by an entity when reporting a contract to reflect the primary purpose of the contract.

Contracts by Commonwealth Entity

2019-20 Procurement Contracts: Top 10 Entities
    RANK
Top Entity Value $million % of total Value 2019-20 2018-19 2017-18
Department of Defence 31,371,1 58.12% 1 1 1
Department of Home Affairs 4,223.4 7.82% 2 3 3
Services Australia 2,058.2 3.81% 3 2* 6*
Australian Taxation Office 1,712.9 3.17% 4 4 7
Department of Health 1,615.9 2.99% 5 5 5
Department of Education, Skills and Employment 1,484.5 2.75% 6 8* 10
Department of Infrastructure, Transport, Regional Development and Communications 761.8 1.41% 7 12* 16*
Australian Digital Health Agency 740.6 1.37% 8 21* 49*
Department of Agriculture, Water and the Environment 652.4 1.21% 9 6* 11*
Department of Foreign Affairs and Trade 647.9 1.20% 10 19 15

*The formation of new entities following Machinery of Government changes means they can’t be compared to entities of previous financial years.

2019-20 Procurement Contracts: Value of Top 10 Entities 
  Total Value $million % of Total Value
Total of top 10 entities 45,268.9 83.9%
Total of other entities 8,706.5 16.1%
Grand total of all entities 53,975.4 100.0%

Estimates of Small and Medium Enterprise (SME) Participation

The Government is committed to supporting SMEs through Government procurement

  • The Commonwealth Procurement Rules (CPRs) include a commitment to source at least 10 per cent by value of all procurement from SMEs.
  • In 2018, the Government announced an additional commitment to source at least 35 per cent of contracts valued up to $20 million from SMEs. 

Definition

An SME is defined by the Commonwealth Procurement Rules as an Australian or New Zealand firm with fewer than 200 full-time equivalent employees. A small business is defined as a business with fewer than 20 full-time equivalent employees.  

Statistical Approach

The SME statistics estimate the level of SME participation in Government procurement. The estimate is provided by the Australian Bureau of Statistics (ABS) based on AusTender data and the ABS Business Register

Policies to Support SMEs

A range of policies and frameworks exist to support SMEs participating in the Government procurement market, including:

  • The Commonwealth Procurement Framework is non-discriminatory and requires that all potential suppliers are treated equitably based on their commercial, legal, technical and financial abilities and that they are not discriminated against, for example, due to their size;
  • From 1 March 2017, the CPRs were amended to ensure entities consider the economic benefit to the Australian economy as part of the value for money assessment for procurements valued above $4 million for non-construction services and $7.5 million for construction services;
  • The Indigenous Procurement Policy is a mandatory procurement-connected policy that includes specific targets for agencies to contract with indigenous businesses, most of which are SMEs;
  • Australian Industry Participation (AIP) is a mandatory procurement connected policy that encourages full, fair and reasonable opportunity for Australian businesses to compete for work in major public and private projects in Australia; and
  • The Supplier Pay on Time Policy focuses on facilitating efficient and timely payment to suppliers. In 2019-20, 90.9% of invoices were paid within 20 days, compared to 61.7% in 2018-19. For further information on payment times refer annual Australian Government Pay On-Time Survey.

Statistical Estimate of SME Participation in 2019-20

 

Estimated Value of Contracts with SMEs
Small and Medium Business Particpation Trends

Top 5 SME Categories

estimated value of SME contracts by portfolio 2019-20

Estimated SME Participation

2019-20 Procurement Contracts: Estimated SME Participation
  Total SME Other
Value $million 53,975.4 13,601.0 40,374.4
% 100.0% 25.2% 74.8%
Number 81,174 41,880 39,294
% 100.0% 51.6% 48.4%

2019-20 Estimated SME Participation by Value Threshold

In 2019-20, for contracts valued up to $20m, SMEs were estimated to be awarded $10.4 billion, or 40.5 percent.

Estimated SME value threholds contracts

Estimated SME and Small Business Participation Trends
  SME Small Business Total
Financial Year Value $million Number of Contracts Value $million Number of Contracts Value $million Number of Contracts
2019-20 13,601.0 41,880 5,362.8 21,256 53,975.4 81,174
2018-19 16,668.1 41,341 6,316.5 20,842 64,454.6 78,150
2017-18 12,911.6 38,739 4,017.0 21,135 71,127.3 73,458
2016-17 9,955.0 34,621 3,349.0 18,073 47,354.7 64,092

 The 2019-20 figures indicate the ongoing strength of participation by SMEs in Commonwealth procurement.

 


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