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 www.tenders.gov.au.

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 28 August 2018. 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 2017-18 there were 73,458 contracts published on AusTender with a combined value of $71.1 billion.

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Procurement Thresholds 

In 2017-18:

  • 94.8 per cent of contracts by volume (69,611) were below $1 million; and
  • 333 high-value contracts (0.5 per cent by volume) represented 71.1 per cent of the total value of contracts awarded at $50.6 billion.

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

2017-18 Procurement Contracts by Value Threshold
ThresholdValue $b% of Total ValueNumber of Contracts % of Total Number
Below $80k 1.5 2.1% 45,396 61.8%
$80k and above 69.7 97.9% 28,062 38.2%
$80k to <$200k 1.6 2.2% 12,122 16.5%
$200k to <$1m 4.8 6.8% 12,093 16.5%
$1m to <$4m 5.0 7.0% 2,572 3.5%
$4m to <$20m 7.7 10.9% 942 1.3%
$20m and above 50.6 71.1% 333 0.5%

 

Location of suppliers 

95 per cent by volume of the contracts awarded in 2017-18 were awarded to businesses with an Australian address.

2017-18 Procurement Contracts: Overseas
 TotalOverseas
Value $m 71,127.3 17,642.1
% 100.0% 24.8%
Number 73,458 3,435
% 100.0% 4.7%

 

 Goods and Services 

Procurement Contracts: Ratio of Goods and Services Contracts
  TOTALGoodsServices
2017-18 Value $m 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 $m 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 $m 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 $m 59,447.0 20,097.8 39,349.2
% 100% 34% 66%
Number 69,236 26,444 42,792
% 100% 38% 62%
2013-14 Value $m 48,921.1 18,886.4 30,034.7
% 100% 39% 61%
Number 66047 24,822 41,225
% 100% 38% 62%
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2017-18 Procurement Contracts: Top 20 Categories for Goods and Services
Category TitleValue $m% of Total Value
Commercial and Military and Private Vehicles and their Accessories and Components 26,898.6 37.8%
Management and Business Professionals and Administrative Services 10,710.5 15.1%
Engineering and Research and Technology Based Services 4,547.5  6.4% 
Defence and Law Enforcement and Security and Safety Equipment and Supplies 4,455.3  6.3% 
Healthcare Services 4,108.0  5.8% 
Building and Construction and Maintenance Services 3,834.6  5.4% 
Information Technology Broadcasting and Telecommunications 3,794.9 5.3%
Education and Training Services 1.933.2 2.7%
Transportation and Storage and Mail Services 1,854.5 2.6%
Politics and Civic Affairs Services 1,798.3 2.5%
Drugs and Pharmaceutical Products 1,043.4 1.5%
Manufacturing Components and Supplies  692.4 1.0%
Public Utilities and Public Sector Related Services 683.8 1.0%
Fuels and Fuel Additives and Lubricants and Anti corrosive Materials  496.0 0.7%
Editorial and Design and Graphic and Fine Art Services  483.8 0.7%
Environmental Services 423.4 0.6%
Travel and Food and Lodging and Entertainment Services 423.4 0.6%
Electronic Components and Supplies 414.1 0.6%
Financial and Insurance Services 394.5 0.6%
National Defence and Public Order and Security and Safety Services 363.5 0.5%
Total of Top 20 69,353.5 97.5% 

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

2017-18 Procurement Contracts: Top 10 Entities
 2017-18RANK
EntityValue $m% of total Value2017-182016-172015-16
Department of Defence 48,479.0 68.2% 1 1 1
National Blood Authority 3,417.3  4.8% 2 33 2
Department of Home Affairs 2,523.4 3.5% 3 N/A* N/A*
Department of Foreign Affairs and Trade - Australian Aid Program 1,854.1 2.6% 4 8 5
Department of Health 1,787.7 2.5% 5 4 7
Department of Human Services 1,767.8 2.5% 6 5 4
Australian Taxation Office 1,686.5 2.4% 7 7 9
CSIRO 948.6 1.3% 8 24 37
Department of Social Services 844.3  1.2% 9 14  14 
Department of Education and Training 651.0  0.9% 10 

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

2017-18 Procurement Contracts: Value of Top 10 Entities 
 Total Value $m% of Total Value
Total of top 10 entities 63,959.5 89.9%
Total of other entities 7,167.8 10.1%
Grand total of all entities 71,127.3 100.0%

 

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 $20m 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. The Department of Finance and the ABS have revised the methodology for the SME analysis to improve the level of certainty over the statistical estimates.

 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; and
  • Australian Industry Participation (AIP) policies and programs encourage full, fair and reasonable opportunity for Australian businesses to compete for work in major public and private projects in Australia.

Statistical Estimate of SME Participation in 2017-18

 

 



 

 


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


 

Value $m

 Estimated SME Participation

 As a new methodology has been used to develop the 2017-18 estimates of SME participation, these statistics are not comparable with the statistics from previous years. For comparison, revised estimates have been prepared for 2016-17, based on the improved statistical methodology.

2017-18 Procurement Contracts: Estimated SME Participation
 TotalSMEOther
Value $m 71,127.3 12,911.6 58,215.7
% 100.0% 18.2% 81.8%
Number 73,458 38,739 34,719
% 100.0% 52.7% 47.3%
2017-18 Estimated SME Participation by Value Threshold
ThresholdValue $m% of Value ThresholdNumber of Contracts % of Number Threshold
$10k to $200k 1592.3 52.6% 31,143 54.1%
$200k to $1m 2417.8 50.1% 6,277 51.9%
$20m and below 8,179.2 39.8% 38,669 52.9%
Estimated Small Business Participation Trends
 Small BusinessTotal
Financial Year Value $m Number of Contracts Value $m Number of Contracts
2017-18 4,017.0 21,135 71,127.3 73,458
2016-17 3,349.0 18,073 47,354.7 64,092

 The 2017-18 figures indicate the ongoing strength of participation by SMEs in Commonwealth procurement.

2016-17 Procurement Contracts: Estimated SME Participation
 TotalSMEOther
Value $m 47,354.7 9,955.0 37,359.7
% 100.0% 21.0% 79.0%
Number 64,092 34,621 29,471
% 100.0% 54.0% 46.0%

Last updated: 17 October 2019