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 30 August 2019. 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.

 

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 2018-19 there were 78,150 contracts published on AusTender with a combined value of $64.5 billion.

Total Value of Procurement Contracts by Financial Year - $million

 
 

 

Procurement Thresholds

 

In 2018-19:

  • 94.1 per cent of contracts by volume (73,575) were below $1 million; and

  • 340 high-value contracts (0.4 per cent by volume) represented 63.0 per cent of the total value of contracts awarded at $40.6 billion.

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

2018-19 Procurement Contracts by Value Threshold
Threshold Value $billion % of Total Value Number of Contracts  % of Total Number
Below $80k 1.5 2.3% 46,103 59.0%
$80k and above 64.2 97.7% 32,047 41.0%
$80k to <$200k 1.7 2.7% 13,388 17.1%
$200k to <$1m 5.6 8.7% 14,084 18.0%
$1m to <$4m 6.2 9.6% 3,160 4.0%
$4m to <$20m 8.8 13.7% 1,074 1.4%
$20m and above 40.6 63.0% 340 0.4%

 

Location of suppliers 

95.7 per cent by volume and 91.6 per cent by value of the contracts awarded in 2018-19 were awarded to businesses with an Australian address.

2018-19 Procurement Contracts: Overseas
  Total Overseas
Value $million 64,454.6 5,428.8
% 100.0% 8.4%
Number 78,150 3,345
% 100.0% 4.3%

 

Goods and Services

Procurement Contracts: Ratio of Goods and Services Contracts
    TOTAL Goods Services
2018-19 Value $million 64,454.6 24,496.0 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%
 
2018-19 Procurement Contracts: Top 20 Categories for Goods and Services
Category Title Value $million % of Total Value
Commercial and Military and Private Vehicles and their Accessories and Components 16,433.6 25.5%
Management and Business Professionals and Administrative Services 12,940.4 20.1%
Engineering and Research and Technology Based Services 9,680.4  15.0%
Healthcare Services 4,642.8  7.2%
Building and Construction and Maintenance Services 4,265.3 6.6%
Information Technology Broadcasting and Telecommunications 3,930.9  6.1%
Defence and Law Enforcement and Security and Safety Equipment and Supplies 2,297.9 3.6%
Transportation and Storage and Mail Services 2260.4 3.5%
Politics and Civic Affairs Services 1056.4 1.6%
Education and Training Services 957.4 1.5%
Environmental Services 843.1 1.3%
Fuels and Fuel Additives and Lubricants and Anti Corrosive Materials 641.0 1.0%
National Defence and Public Order and Security and Safety Services 486.9 0.8%
Farming and Fishing and Forestry and Wildlife Contracting Services 460.0 0.7%
Drugs and Pharmaceutical Products 427.4 0.7%
Public Utilities and Public Sector Related Services 416.4 0.6%
Editorial and Design and Graphic and Fine Art Services 387.6 0.6%
Financial and Insurance Services 377.4 0.6%
Electronic Components and Supplies 280.2 0.4%
Apparel and Luggage and Personal Care Products 212.5 0.3%
Total of Top 20 62,998.0 97.7% 

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

2018-19 Procurement Contracts: Top 10 Entities
  2018-19 RANK
Entity Value $million % of total Value 2018-19 2017-18 2016-17
Department of Defence 43,177.6 67.0% 1 1 1
Department of Human Services 3,845.7 6.0% 2 6 5
Department of Home Affairs 2,478.4 3.8% 3 3 N/A*
Australian Taxation Office 2,119.8 3.3% 4 7 7
Department of Health 1,627.8 2.5% 5 5 4
Department of the Environment and Energy 776.8 1.2% 6 13 10
Department of Foreign Affairs and Trade - Australian Aid Program 740.7 1.1% 7 4 8
Department of Education and Training 605.0 0.9% 8 10 3
Department of Industry, Innovation and Science 565.2 0.9% 9 18 17
National Blood Authority 507.3 0.8% 10  2 33

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

2018-19 Procurement Contracts: Value of Top 10 Entities 
  Total Value $million % of Total Value
Total of top 10 entities 56,444.2 87.6%
Total of other entities 8,010.4 12.4%
Grand total of all entities 64.454.6 100.0%

 

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.

Statistical Estimate of SME Participation in 2018-19





Estimated SME Participation

2018-19 Procurement Contracts: Estimated SME Participation
  Total SME Other
Value $million 64,454.6 16,668.1 47,786.5
% 100.0% 25.9% 74.1%
Number 78,150 41,341 36,809
% 100.0% 52.9% 47.1%
2018-19 Estimated SME Participation by Value Threshold
Threshold Value $million % of Value Threshold Number of Contracts  % of Number Threshold
$10k to $200k 1,691.4 52.3% 32,239 54.2%
$200k to $1m 2,826.4 50.3% 7,359 52.3%
$20m and below 10,010.3 41.9% 41,261 53.0%
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
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 2018-19 figures indicate the ongoing strength of participation by SMEs in Commonwealth procurement.


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