Statistics on Australian Government Procurement Contracts

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

The Commonwealth Procurement Rules (CPRs) require non-corporate Commonwealth entities (NCEs) and prescribed corporate Commonwealth entities (CCEs) 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. NCEs report details of contracts with a value of $10,000 or more, and prescribed CCEs report contracts with a value of $400,000 or more. Under the devolved procurement framework, individual entities are responsible for accurately reporting their procurements contracts on AusTender.

The following data presents aggregated information that was extracted from AusTender on 12 August 2021. 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 2020-21 there were 84,054 contracts published on AusTender with a combined value of $69.8 billion.

Total Value of Procurement Contracts by Financial Year - $million

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Procurement Thresholds

In 2020-21:

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

Procurement Contracts by Value Threshold
Threshold Value $billion % of Total Value Number of Contracts  % of Total Number
Below $80k 1.5 2.2% 46,204 54.97%
$80k and above

68.3

97.8%

37,850

45.03%

Total 69.8 100% 84,054 100%
    Threshold breakdown  
$80k to <$200k 2.2 3.0% 16,398 19.51%
$200k to <$1m 6.6 9.5% 16,305 19.40%
$1m to <$4m 6.9 10.0% 3,564 4.24%
$4m to <$7.5m 3.7 5.3% 692 0.82%
$7.5m to <$20m 6.3 9.0% 534 0.64%
$20m and above 42.6 61.0% 357 0.42%

Location of suppliers 

96.4 per cent by volume and 91.1 per cent by value of the contracts in 2020-21 were awarded to businesses with an Australian address.

2020-21 Procurement Contracts: Overseas
  Total Overseas
Value $million 69,794.5 6,177
% 100.0% 8.9%
Number 84,054 3,062
% 100.0% 3.6%

Goods & Services

Procurement Contracts: Ratio of Goods and Services
    TOTAL Goods Services
2020-21 Value $million 69,794.5 25,692.5 44,102.0
% 100% 37% 63%
Number 84,054 24,119 59,935
% 100% 29% 71%
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%
 
2020-21 Procurement Contracts: Top 20 Categories for Goods & Services
Category Titles Value $million % of Total Value
Building construction and support and maintenance and repair services 9,827.8 14.1%
Drugs and Pharmaceutical Products 4,141.2 5.9%
Computer services         3,300.4 4.7%
Disease prevention and control 3,294.3 4.7%
Temporary personnel services 2,853.7 4.1%
Marine craft systems and subassemblies     2,839.3 4.1%
Management advisory services 2,430.8 3.5%
Professional engineering services  1,713.3 2.5%
Components for information technology or broadcasting or telecommunications 1,673.2 2.4%
Light weapons and ammunition 1,629.4 2.3%
Education and Training Services 1,499.3 2.1%
Lease and rental of property or building    1,488.1 2.1%
Military watercraft 1,376.2 2.0%
Aircraft 1,320.9 1.9%
Management support services 1,195.5 1.7%
Project management 1,145.6 1.6%
Personnel recruitment 1,026.4 1.5%
Software     906.8m  1.3%
Information technology consultation services 872m  1.2%
Aircraft maintenance and repair services  832.7m  1.2%
Grand Total 45,366.9 65.0%

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

Contracts by Commonwealth Entity

2020-21 Procurement Contracts: Top 10 Entities
    RANK
Top Entity Value $million % of total Value 2020-21 2019-20 2018-19 2017-18
Department of Defence 37,368.5 53.5% 1 1 1 1
Department of Health 6,073.9 8.7% 2 5 5 5
Services Australia 4,346.6 6.2% 3 3 2* 6*
Department of Home Affairs 3,414.6 4.9% 4 2 3 3
Australian Taxation Office 2,078.3 3.0% 5 4 4 7
Department of Foreign Affairs and Trade 1,724.9 2.5% 6 10 19 15
Department of Education, Skills and Employment 1,049.2 1.5% 7 6 8* 10
Department of Agriculture, Water and the Environment 1,032.0 1.5% 8 9 6* 11*
Australian Federal Police 944.2 1.4% 9 12 23 20
Department of Industry, Science, Energy and Resources 528.1 0.8% 10 14 9 18

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

2020-21 Procurement Contracts: Value of Top 10 Entities 
  Total Value $million % of Total Value
Total of top 10 entities 58,560.9 83.9%
Total of other entities 11,233.6 16.1%
Grand total of all entities 69,794.5 100.0%

Estimates of Small and Medium Enterprise (SME) Participation

The Government is committed to supporting SMEs through Government procurement

The Commonwealth Procurement Rules (CPRs) include commitments to:

  • source at least 10 per cent by value of all procurement from SMEs.
  • 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;
  • The CPRs require the economic benefit to the Australian economy to be considered 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, 90.6% 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 2020-21

2020-21 Procurement Contracts: Estimated SME Participation
  Total SME Other
Value $million 69,794.51 18,657.07 51,137.44
% 100.0% 27.0% 73.0%
Number 84,054 45,773 38,281
% 100.0% 54.0% 46.0%

2020-21 Estimated SME Participation by Value Threshold

In 2020-21, for contracts valued up to $20m, SMEs were estimated to be awarded $11.8 billion, or 43 per cent.

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
2020-21 18,657.1 45,773 5,473.0 23,020 69,794.5 84,054
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 2020-21 figures highlight the ongoing strength of participation by SMEs in Commonwealth procurement.

 


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