Selling to Government video series

In this video, we’ll introduce you to the idea of selling to the Australian Government, including:

• Why you may be interested
• Rules which simplify processes and encourage participation, and
• How to find out what the Australian Government buys.

Before we get started, lets outline the three levels of government.

Firstly, there is the Australian Government, also referred to as the Commonwealth Government, where the Federal Parliament is the decision-making body. This video series is focused on procurement and contracting arrangements for the Australian Government.

Then, there are state and territory governments, where a state parliament or territory parliament is the decision-making body.

Finally, there is local government, where the decision-making body is usually called a city council or shire council.

Each state, territory and local government has its own arrangements for managing tenders and government contracts, which are different to the Australian Government’s arrangements.

Why might you be interested in selling to the Australian Government?

The Government purchases a wide range of goods and services right across Australia, including in regional and remote areas. This offers businesses of all sizes from many sectors the potential to sell to the Australian Government.

Selling to the Australian Government may be an opportunity to expand your client base, increase your income, and grow your business.

The government wants to work with suppliers of all sizes and has implemented measures to encourage participation and make it easier for you to work with us. This includes:

• A common, non-discriminatory Commonwealth Procurement Framework which governs how relevant Australian Government organisations undertake their procurement activities
• Procurement practices that do not unfairly discriminate against small and medium enterprises
• Allowing Government organisations to purchase directly from small and medium enterprises and businesses owned by First Nations peoples, as well as business that primarily exist to provide the services of persons with a disability
• Simplified contracting processes, and
• Ensuring businesses are paid in a timely manner.

What does the Australian Government buy to ensure it can deliver services and support to Australians?

Government purchases a wide variety of goods and services – from stationery and legal advice to critical health supplies and Defence capabilities.

However, there is no one Australian Government buyer. Each government organisation has its own unique business needs, and makes their own purchasing decisions to meet those needs. Those decisions must be made in accordance with the Commonwealth Procurement Framework. Information on the types of Australian Government organisations which must buy goods and services in accordance with the Framework can be found in the next video.

The easiest way to find out what Government organisations are interested in buying is to visit AusTender, the Australian Government’s central procurement information system, available at tenders.gov.au.

AusTender contains a wealth of information about what Australian Government organisations intend to buy, are out to market for, and who they are contracting with.

You can register on AusTender for free to receive notification of new open tenders which match your self-defined profile as they become available. You can also use AusTender to identify upcoming procurements and find out who is winning contracts.

The AusTender Help and Information Centre, available at help.tenders.gov.au, includes a variety of guidance and reports to help you better understand opportunities in your sector.

Finally, there are also procurement arrangements known as panels, established for goods and services commonly used by the Australian Government, such as advertising, legal services, property services, digital services, travel and accommodation, and stationery and office supplies. Some of these arrangements are mandatory for relevant government organisations to use.

To find out more about how to sell to the Australian Government, please visit sellingtogov.finance.gov.au.

In this video, we’ll introduce the Commonwealth Procurement Rules.

Let’s get started.

The Commonwealth Procurement Rules, or CPRs, set out the Australian Government’s procurement policies and reflect the Government’s expectations for procuring officials.

While each Australian Government organisation is accountable for its operations, including how it spends public money, the CPRs set out common requirements for relevant organisations relating to procurement.

The CPRs reflect the Government’s commitment for its procurement activities to be conducted to the highest standards of ethics, probity and integrity.

They also set out the Government’s commitment to including small and medium enterprises in its procurement activities and requirements to consider broader economic, social and environmental benefits of procurement to the Australian economy for higher value procurements.

The CPRs ensure:

• the proper use of public funds
• that procurement is conducted in a fair, ethical, transparent and accountable manner, and
• that procurement delivers value for money outcomes.

The core focus of the CPRs is achieving value for money.

Value for money is not just about price – when assessing value for money, officials are required to consider the relevant financial and non-financial costs and benefits, including, but not limited to:

• Quality of the goods and services
• Fitness for purpose of the proposal
• Potential supplier’s relevant experience and performance history
• Flexibility of the proposal
• Environmental sustainability of the proposed goods and services, and
• Whole-of-life costs.

There are some additional rules which apply to procurements valued at or above relevant procurement thresholds.

These procurement thresholds are:

• $80,000 and above for most Australian Government organisations (described as non-corporate Commonwealth entities)
• $400,000 and above for specific corporate Commonwealth entities, which are outlined in the CPRs, and
• $7.5 million and above for construction services, regardless of the type of organisation.

Procurements valued at or above these thresholds are generally conducted by open tender, unless a specific exemption or a condition for limited tender is met, as permitted by the CPRs.

Australian Government buyers will take the relevant thresholds for their organisation into account when approaching the market.

The most current version of the CPRs is always available on the Department of Finance’s website finance.gov.au.

In this video, we’ll step through a typical procurement lifecycle and outline how potential suppliers may engage at each step of the process, including:

• Market research and engagement
• Approaching the market
• Industry briefings
• Preparing a response
• Submitting a response
• Tender evaluation
• Contract negotiation, and
• Awarding contracts.

Let’s get started.

Market Engagement

Australian Government buyers have to identify a potential need to approach the market to ensure the market has the capability and capacity to provide the goods or services they require, buyers often conduct market research or engage with businesses to help them understand market conditions. Effective and timely market research or engagement can help inform how buyers determine the most effective approach to a procurement.

Market research and engagement should be focused on gathering collective market information, not selecting preferred suppliers.

If you are not sure if someone is approaching you for market research, or to seek a quote, ask them for clarification.

Approaching the Market

An ‘approach to market’ is a general term used by Australian Government buyers for any notice to potential suppliers to participate in a procurement (such as a request for tender, or a request for quote).

A buyer may approach the market in a number of different ways, such as:

• Open tenders, publicly listed on AusTender and open for all to submit a response
• Limited tenders, only made accessible to suppliers that are invited to submit a response, or
• Approaching suppliers through an existing panel arrangement.

Industry Briefings

For complex approaches to market, a buyer may conduct industry briefings for potential suppliers. These sessions give businesses an opportunity to engage directly with the buyer and increase understanding of tender requirements or processes, prior to submitting a tender response.

Questions and answers from industry briefing sessions are usually collated and provided to all potential suppliers participating in the process. Businesses are not identified in this process.

If there is no industry briefing offered, you can always ask the contact officer any questions you have about the procurement process or requirements.

Preparing a Response

In this step, potential suppliers prepare a response to the Approach to Market.

When responding to an approach to market, potential suppliers will need to submit a response that complies with the request documentation. Many request documents include a template for you to complete. You should ensure that you meet any conditions for participation, minimum content and requirements, address evaluation criteria, complete any mandatory forms or requirements, and demonstrate why your business should be selected.

Request documents and requirements can vary, so make sure you frame your response to the requirements of each individual procurement process.

Submitting a Response

Next, potential tenderers submit a response to the approach to market.

Lodgment timelines and processes are clearly outlined in the request documents. Responses to open tenders are usually lodged via AusTender. If there are alternative arrangements, this will be clearly outlined in request documentation.

For a limited tender, responses may be lodged via AusTender or by another lodgment means such as via email. Always refer to the request documentation about how, when and where to submit a response to an approach to market or request for quote.

Tender responses need to be lodged before the specified closing time and date. The CPRs prohibit the acceptance of late tenders, so be prepared to lodge your submission well ahead of time.

Tender Evaluation

Officials evaluate tender responses against any conditions for participation, the specified requirements, and the evaluation criteria. This evaluation is used to select a preferred supplier, or suppliers, which represent the best value for money outcome.

If your tender response does not meet conditions for participation, mandatory criteria, or minimum content and format requirements, it will be excluded from further consideration.

Contract Negotiation

Following tender evaluation, a contract may be awarded or negotiated with the preferred supplier. Depending on the nature and value of the procurement, organisations may use standard contracts such as a purchase order or the Commonwealth Contracting Suite.

For more complex procurements, the procuring organisation and supplier may need to negotiate specific terms, exclusions and inclusions to the contract.

In most cases, a draft contract will have been included with request documents to set expectations and clarify roles and responsibilities, and any non-compliances are likely to have been factored into the tender evaluation.

Awarding Contracts

Once a preferred tenderer and the procuring organisation have entered into a contract, all tenderers will be notified of the outcome.

All tenderers are entitled to request a debriefing from the officials who undertook the procurement. This is an opportunity to receive feedback on your tender response to help you compete more effectively in future procurement processes. Where requested by a tenderer, Australian Government organisations must provide feedback to the tenderer.

Contracts valued at $10,000 or more are publicly reported on AusTender within 42 days of entering into an agreement.

For further information, please visit sellingtogov.finance.gov.au.

In this video, we’ll outline the various methods Australian Government organisations use to approach the market, including:

• Open tenders
• Limited tenders, and
• Panels.

‘Approach the market’ is a general term used by buyers for any notice to potential suppliers to participate in a procurement (such as a request for tender, request for proposal or a request for quote). Australian Government buyers may use either an open tender or limited tender procurement method for an approach to market.

For an open tender, the Approach to Market is publicly advertised via AusTender, at tenders.gov.au. Any potential supplier can respond to an open tender.

Open tenders are the default approach for procurements at or above the relevant procurement thresholds outlined in the Commonwealth Procurement Rules, unless specific exemptions or conditions apply.

Again, these procurement thresholds are:

• $80,000 and above for most Australian Government organisations (described as non-corporate Commonwealth entities)
• $400,000 and above for specific corporate Commonwealth entities, which are outlined in the CPRs, and
• $7.5 million and above for construction services, regardless of the type of organisation.

For a limited tender, potential suppliers are invited to respond to the approach to market. The approach to market is only accessible to those suppliers invited to submit a response.

Limited tenders are permitted for purchases below the procurement thresholds. However, organisations are always encouraged to promote competition in their tendering activities.

Limited tenders are also permitted for purchases under specific conditions or exemptions outlined in the CPRs (for example, purchases from businesses owned by First Nations peoples, or small and medium enterprises).

Finally, buyers may also approach suppliers through a Panel, established through a previous procurement process.

Under a Panel, a supplier enters into an agreement, known as a 'deed of standing offer’, with an Australian Government organisation, or in some cases, all relevant organisations, to provide commonly used goods or services for a set period under agreed terms and conditions.

Where there are multiple suppliers under a deed of standing offer, it is commonly referred to as a ‘panel’. Australian Government organisations may approach suppliers appointed to a panel to request quotations, in line with the deed of standing offer.

Australian Government buyers may approach multiple suppliers appointed to a panel to request quotations and select the supplier whose response represents the best value for money.

New panels are usually established and periodically refreshed by an open tender approach to market, which are advertised on AusTender. If a panel is refreshed, this may be an opportunity for new suppliers to join the arrangement.

If your response to the approach to market is considered to represent value for money, your business may be invited to join the panel.

For further information, please visit sellingtogov.finance.gov.au.

In this video, we’ll run through some tips on how to get started and find opportunities to sell to the Australian Government.

Firstly, take steps to understand the process, through resources such as sellingtogov.finance.gov.au.

Make sure you know your value proposition and can meet common minimum requirements to tender. You can do this by downloading and reviewing tender documents from AusTender so you understand what is required when you are lodging a tender response. Tender documents include contact information, if you have any questions about the tender you should direct them to this contact.

Then, you can take steps to understand the buyer. Each Australian Government organisation has its own unique purchasing needs. Many buy similar goods and services while others have very particular requirements.

To find out more about the role of Australian Government organisations, visit their websites. This will help you understand their role and identify the most relevant Australian Government market for your business.

Resources such as the online Australian Government directory, at directory.gov.au, can also assist with understanding the structure of the Australian Public Service.

Next, we will step through getting the most out of AusTender.

AusTender is the Australian Government’s procurement information system. AusTender provides a single point of discovery for most Australian Government procurements and contracts.

The Commonwealth Procurement Rules require that relevant organisations publish information about planned procurements, open tenders, contracts awarded and panels on AusTender.

You can register for free on AusTender, and set up your profile to receive email notifications of new planned procurements and open tenders which match your self-defined profile.

You can also use AusTender to:

• See upcoming opportunities in Annual Procurement Plans
• Download tender documents
• Lodge a tender response, and
• Find details about successful tenderers and existing contracts and panels.

The AusTender Help and Information Centre, at help.tenders.gov.au, can help you to find business opportunities and answers to frequently asked questions.

Finally, you may wish to consider how you can make your business visible to Australian Government buyers for limited tender opportunities.

Government purchases below the relevant procurement thresholds do not need to be advertised broadly. In these situations, Australian Government buyers may approach potential suppliers directly for quotes or tender responses, via a limited tender.

There are things you can do to promote the visibility of your business to Government buyers, including:

• Have an active, easy to find and user-friendly website
• Build connections in your industry to be aware of potential opportunities, and
• Attend industry events and trade shows where Government buyers may be present.

This will make it easier for Australian Government buyers to find your business when they are carrying out their market research.

For further information, please visit sellingtogov.finance.gov.au.

To be successful in securing work with Australian Government organisations, you will need to respond effectively and competitively when they approach the market to procure goods and services.

In this video, we’ll step through the process of preparing to respond to an approach to market, and provide some tips to help you understand what will be required when you submit a response

An approach to market will typically include:

• a description of the procurement, which will specify: the scope of work,
• deliverables and expected outcomes,
• any technical or functional specifications,
• timeframes for delivery and performance expectations
• any conditions for participation, which are minimum requirements you must meet to be considered for the work – conditions for participation help organisations ensure you have the legal, financial, technical and commercial capability to fulfil the requirements of the procurement
• minimum content and format requirements which explains what information your tender response should contain and the format you need to use
• evaluation criteria and methodology against which tender responses will be evaluated – the evaluation criteria will help you understand what is required in order for you to be competitive in your tender response
• process rules to help you understand how the process will be run, including: the deadline and location for lodging your response,
• protocols for seeking clarification or asking questions of the procuring organisation,
• their process for responding, and
• how any confidential information will be treated during the process and after a contract is awarded, and
• a draft contract to help you understand the terms and conditions under which work will be delivered.

Let’s run through some of these requirements, starting with licenses and standards.

When you enter into a contract with an Australian Government organisation, you will need to comply with relevant Australian laws. These include holding relevant licenses, certifications, and any other approvals required to lawfully provide the required goods and services.

To ensure you are able to meet these requirements, you may have to provide evidence of relevant licenses and certifications as part of your tender response.

Where relevant, request documents will also outline any specific Australian or international standards that the suppliers are required to comply with.

To ensure you are able to meet these requirements, you may have to provide evidence that you can meet the specified standards. You may also be required to agree to periodic audits or reviews to confirm ongoing compliance with these standards.

There may also be minimum insurance requirements.

While you generally do not need to have insurance to respond to an approach to market, you will need to meet any specified insurance requirements prior to entering into a contract or agreement. The amount and type of insurance required will be clearly stated in the request documents.

Some common types of insurance include public liability insurance, product liability insurance, professional indemnity insurance and workers compensation insurance.

Insurance requirements will be different for each contract. If you feel the amount or type of insurance required is excessive, you may choose to query this with the nominated organisation contact officer to see if there is any flexibility in the requirement.

There are a number of Australian Government procurement connected policies that place minimum requirements on businesses responding to tenders.

Where these policies are relevant, the related requirements will be clearly outlined in request documents.

Up to date information on these policies, and any requirements potential suppliers may need to comply with, is available on the Selling to Government website at sellingtogov.finance.gov.au, and the Department of Finance website at finance.gov.au.

In this video, we’ll step through some tips to help you put your best foot forward when developing a competitive tender response.

Firstly, participating in tender processes can involve costs for your business. It takes time and effort to develop a competitive response that meets the specified requirements, so make sure that the approach to market is the right opportunity for your business.

Next, ensure you understand the expected timeframes and processes for lodging your tender response. This will be clearly outlined in the approach to market documentation. Late tenders cannot be accepted, so start developing your response early and prepare to submit your response well in advance of the specified tender closing time and date.

Remember, each approach to market is different. Take the time to thoroughly review the request documents and understand all of the requirements, including conditions for participation, any minimum content and format requirements, and the need to comply with, or provide evidence of compliance with, Australian laws and standards or international standards.

You should pay close attention to any procurement connected policies and insurance requirements specified and make sure you consider the evaluation criteria and methodology when developing your response.

If offered, be sure to attend industry briefings. These provide an opportunity to clarify processes and requirements. You can also direct any questions about the request documents or the process to the nominated contact officer.

Before you develop your tender response, you should make sure you prepare all documents needed to meet conditions for participation and minimum requirements. These will be clearly outlined in the approach to market documents. Remember, if you do not meet these requirements, your tender response will not be evaluated.

Then, determine how you will develop your tender response against the evaluation criteria.

Meeting evaluation criteria is critical to competitively responding to a tender and demonstrates your ability to deliver the proposed work. Buyers assess each supplier’s tender response against these requirements.

Remember, buyers must assess your submission based on the information contained in your tender response. You should aim to keep your tender response concise and on topic. Structure your tender response in the same order as the information in the approach to market documents, so that it’s easy to follow, and use headings and lists to make your content clear.

Criteria will vary for each ATM, but some commonly used criteria may ask you to demonstrate an ability to provide the requested goods or services, ability to manage risk, pricing, and compliance with the contract conditions.

Australian Government organisations assess tender responses on a value for money basis – they don’t select the cheapest price.

With this in mind, you should consider how you can emphasise your competitive difference, where you exceed the requirements and where you feel you can add value for the Australian Government or contribute more broadly to the Australian economy.

If an ATM imposes a word limit on a response to an evaluation criterion, you should ensure that you do not exceed the word limit, otherwise any information past the word limit will likely not be considered.

However, you should use as much of the word limit as possible to fully explain what you can do.

Finally, make sure you submit your response in the format requested, with the required documentation and information, before the specified closing time and date.

If you have been invited to provide a response to a limited tender or submit a quote, and you do not have the capability or capacity to respond, you should advise the nominated contact officer that you do not intend to respond. This contact keeps your business visible for future approaches to market.

For further information, please visit sellingtogov.finance.gov.au.

In this video, we’ll provide some tips for successfully working with Australian Government organisations when you have been awarded a contract.

Firstly, remember that all businesses, including those who successfully win a contract, are entitled to request and receive a debriefing on their tender response.

Receiving feedback on your tender response can help you understand how to compete more effectively in future processes and help you to build on the strengths in your submission.

If the value of the contract is $10,000 or more, you should be aware that some details of the contract will be published on AusTender as a Contract Notice within 42 days of the contract being entered into.

This will include a description of the contract, its period and value (including extension options, and the maximum end date where options are available), the procurement method, and name and address of the contracted business. For limited tenders and procurement through panel arrangements, this will also include information on how many suppliers were approached.

No other details about your response will be made public.

Now, let’s cover some important points about entering into and managing a contract with an Australian Government organisation.

The contract sets out the roles and responsibilities of all parties, including how, when and to what standard the contract deliverables are to be delivered.

The contract will also contain provisions for how the organisation will monitor outputs and performance. It will outline your rights and obligations, including managing conflicts of interest, managing confidential and personal information, auditing arrangements, liability and indemnification, and dispute resolution.

An official will be appointed to oversee the management of the contract and you will need to appoint someone to manage the contract from your end. Appointing the right person is crucial to ensuring a strong relationship is developed and maintained throughout the life of the contract.

Contracts should be actively managed by both parties to ensure contractual obligations are met, risks identified and dealt with early and any conflicts or impediments to delivery are appropriately managed.

The contract will outline the payment terms under which the organisation is bound to pay the supplier. This might include payment points at agreed milestones. This can include, but is not limited to, the delivery of a product, milestone or outcome, or based on certain dates.

We will now run through some tips for working successfully with Australian Government organisations:

• Deliver the goods or services on time, on budget and in a professional manner.
• Fill in the paperwork for your contract promptly, and give the Australian Government contract manager any information they need as soon as you can.
• Keep your contract manager informed – you might do this via phone, email or attending regular meetings.
• Don’t be afraid to advise of issues – a professional contract manager would prefer to work with you to prevent issues, rather than try to fix them afterwards. Ensure that all deliverables have been completed and contractual obligations have been met, including any reporting requirements, within the timeframes specified in the contract.

Knowing how important it is to pay its suppliers on time, the Australian Government requires organisations to pay suppliers within 20 days of the acknowledgement of satisfactory delivery of goods or services and the receipt of a correctly rendered invoice. Where the organisation and the supplier have compatible eInvoicing capability, payment times are reduced to 5 days.

If an organisation fails to pay in time, it may have to pay interest to the supplier on the outstanding amount.

For more information, please visit sellingtogov.finance.gov.au.

In this video, we’ll outline what you might consider if you have been unsuccessful in competing for a contract.

Not all tender responses can be successful, no matter how good they are. However, the experience of an unsuccessful tender should not be a signal to give up on doing business with the Australian Government. An unsuccessful tender process is a chance to learn and improve your offering for the next business opportunity.

Every business that responds to an approach to market is entitled to a debriefing. The purpose of a debriefing is not to justify the selection of the successful tender, but to give you feedback on your tender response. This can help you to compete more effectively in the future.

Typical themes that may be covered in a debriefing are:

• Comparison of your submission to the evaluation criteria
• Strengths and weaknesses of the submission
• Suitability of your experience and qualifications
• An indication of cost competitiveness
• Referee reports or past performance, and
• Understanding of the Australian Government procurement process.

Requesting a debriefing is good practice, as you can obtain feedback about your submission and gain a better understanding of the process.

Remember, many businesses are unsuccessful at first, but later go on to be successful suppliers to the Australian Government. An unsuccessful tender response is an opportunity for feedback that will help you put in a better tender response next time.

If you are interested in knowing which competitor was successful in winning the contract, if the value of the contract is $10,000 or more, details of the contract, including details of the successful supplier, will be published on AusTender as a ‘Contract Notice’ within 42 days of the contract being entered into. This will include a description of the contract, its period and value, the procurement method, and details of the supplying business.

After a tender process is over, you may have concerns that the process was flawed, or the evaluation was inaccurate or unfair. In the first instance, request a debriefing so you can obtain feedback on your tender response.

If you are not satisfied following a debriefing, and you wish to make a complaint, you should indicate this clearly to the Australian Government organisation that undertook the procurement process and seek to resolve the matter with them in the first instance. Ongoing engagement with the organisation might help you better understand their decision making process.

As a potential supplier, you have the right to be treated fairly, impartially, consistently, and equitably throughout the procurement process. You also have the right to have complaints investigated promptly and without disadvantage. Making a legitimate complaint does not prejudice your involvement in ongoing or future procurement processes.

Each Australian Government organisation is required to publish details of how you can make a complaint relating to a procurement on their website.

Complaints must relate to the process followed by the Australian Government organisation and its consistency with the requirements of the Commonwealth Procurement Rules. The fact that your tender response was not selected is not sufficient grounds for complaint.

If you are not happy with the outcome of a complaint process, there may be other courses of action for you to consider. Depending on your concerns, you may raise the matter with the Australian Government Procurement Coordinator, approach the Commonwealth Ombudsman, or there may be recourse through the courts. Some procurement processes may fall under the Government Procurement (Judicial Review) Act, which places additional requirements on Australian Government organisations in considering and actioning the complaint. The tender documentation will make clear if this is the case for your procurement.

For more information, please visit sellingtogov.finance.gov.au.

In this video, we’ll outline panel arrangements, and help you better understand how to participate.

So, what is a panel, and how do you participate?

A standing offer is an agreement between a supplier and an Australian Government organisation for the provision of goods or services for a set period under agreed terms and conditions. A standing offer typically has one supplier. Where there are multiple suppliers under a standing offer, it is referred to as a panel.

Standing offers and panels streamline and simplify the procurement of commonly procured goods and services that are typically established through an open approach to market.

Once a panel has been established, Australian Government organisations may approach suppliers appointed to that panel to request quotations, in line with the process agreed under the standing offer. When procuring through a panel that has multiple suppliers, Australian Government buyers should approach more than one supplier on the panel to respond to a request for quote.

For the Management Advisory Services Panel and the People Panel it is a mandatory requirement that for each procurement through the panel, at least one of the panel suppliers invited to submit a quote must be a small or medium enterprise. This requirement helps SMEs be more visible to buyers and ensures that businesses of all sizes have the opportunity to win Australian Government contracts.

So, how exactly do you join a panel?

New panels are typically established by an open approach to market.

Open approaches to market are advertised on AusTender and are open for anyone to submit a response. You can register on AusTender for free at tenders.gov.au.

If you submit a response to an approach to market to establish a panel, and your submission meets all minimum and mandatory requirements of the tender and is evaluated as representing value for money, your business may be invited to enter a deed of standing offer and be appointed to the panel.

Suppliers can only join existing panels if the panel was established with the capability to add new suppliers or categories of services after formation.

These panels are commonly referred to as refreshable panels.

Australian Government organisations may issue a new approach to market to refresh an existing panel to seek submissions from suppliers to join the arrangement. Timing of panel refreshes can vary during the term of the panel and in accordance with the terms or conditions under which the panel was originally established.

Organisations are required to publish information about the establishment of a standing offer or panel on AusTender. Information includes the service categories, duration of the arrangement, panel suppliers and which Australian Government organisations can procure from the panel.

To find out whether a panel is refreshable, and details such as when or how a refresh may take place, you can reach out to the panel’s point of contact which can be found on the relevant standing offer notice on AusTender.

Being appointed to a panel is not a guarantee that Australian Government organisations will buy from your business so ensure you promote yourself to organisations you may wish to sell to.

Finally, you may have heard of Whole of Australian Government arrangements.

Whole of Australian Government arrangements are set up for Australian Government organisations to procure commonly used goods or services. These procurement arrangements offer increased transparency, standard terms and conditions, and improved contract management that benefits both the Australian Government and suppliers.

There are Whole of Australian Government arrangements for:

• Management Advisory Services
• People Panel - Labour hire and recruitment services
• Advertising
• Certain ICT hardware, software, cloud or hosting arrangements
• Legal services
• Property services
• Fleet
• Travel and accommodation services, and
• Stationery and office supplies.

The Commonwealth Procurement Rules require that many Australian Government organisations must undertake procurement activities for specific categories through certain panels.

A list of mandatory panels can be found on the Department of Finance website at finance.gov.au. Further information about understanding panel arrangements can be found on the Selling to Government website at sellingtogov.finance.gov.au.

In this video, we will outline arrangements the Australian Government has put in place to support businesses owned by First Nations peoples to participate in procurement and contracting opportunities, particularly under the Australian Government’s Indigenous Procurement Policy.

The primary purpose of the Indigenous Procurement Policy, also known as IPP, is to stimulate First Nations peoples’ entrepreneurship, business and economic development. It does this in three ways.

Firstly, the IPP sets annual targets for Australian Government organisations.

To support First Nations businesses, relevant Australian Government organisations have annual purchasing targets to meet. Performance against these targets on the number and value of contracts with First Nations businesses are published each financial year on the National Indigenous Australians Agency website, at niaa.gov.au/IPP.

Secondly, the IPP encourages procurement from First Nations businesses.

Relevant Australian Government buyers must adhere to Mandatory Set-Aside arrangements in the IPP.

Under these arrangements, prior to making an approach to market, Australian Government buyers must search for, identify and approach suitable First Nations businesses to quote for:

• All work delivered that is delivered in a remote area,
• All contracts wholly delivered in Australia where the estimated value is between $80,000 to $200,000 (GST inclusive).

This requirement must be completed prior to making an approach to market.

In these circumstances, Government buyers must conduct a search for suitable First Nations businesses. This search is often undertaken on a First Nations business directory, managed by Supply Nation, called Indigenous Business Direct.

The Australian Government buyer must determine whether any identified First Nations business could deliver the required good or service on a value for money basis. If so, the good or service must be purchased from the relevant business.

In meeting these requirements, government buyers may approach a number of suitable First Nations businesses for quotes, and must purchase the requested good or service from the business that can deliver the best value for money.

If the buyer cannot identify a suitable business, or the identified businesses cannot deliver the required goods or services on a value for money basis, the buyer may proceed with a general approach to market.

There are some specific cases where Australian Government buyers are not required to approach First Nations businesses prior to a general approach to market. These are outlined in the IPP, available at niaa.gov.au/IPP.

These requirements do not guarantee that First Nations businesses will win work, but they do ensure those businesses get a first go at it.

Australian Government organisations may also procure from First Nations small and medium enterprises, using exemptions in the Commonwealth Procurement Rules, even for purchases outside of the Mandatory Set-Aside arrangements.

Thirdly, the IPP ensures First Nations people have the opportunity to participate in delivery of significant contracts with Australian Government organisations, by including contractual requirements around Indigenous employment and supplier use, known as Mandatory Minimum Indigenous Participation Requirements.

Further information about these requirements, including a list of suppliers that have these requirements in their contracts, is available at niaa.gov.au/IPP.

Let’s move on to considering how to best showcase capabilities and service offerings to Australian Government buyers.

For businesses to give themselves the best chance to win work, make sure that products or service offerings are something the government is likely to buy, provide a competitive response to any request for quote received, and clearly demonstrate that the business can deliver the required goods or services on a value for money basis.

Australian Government organisations need to be able to find First Nations businesses to approach for work.

There are many ways to show that a business is First Nations-owned.

Being a registered or certified business with Supply Nation is one easy way for Australian Government organisations to find your business.

As this is the most common way for Australia Government buyers to find your business, it is worth investing in and maintaining both an up to date Supply Nation profile and an informative business website.

Attending trade shows, and approaching suppliers with Mandatory Minimum Indigenous Participation Requirements in their contracts, can also be a great way to connect with potential opportunities.

Finally, consider other opportunities.

While Australian Government buyers must approach First Nations businesses to seek quotes for work under specific circumstances, businesses can also seek out opportunities by responding to open tender approaches to market, or ATMs, advertised through AusTender. Also consider responding to ATMs to join panel arrangements relevant to the business sector.

Certain Whole-of-Australian Government panels have flexibility provisions, which enable Australian Government organisations to purchase a proportion of goods or services covered by the arrangement from suppliers that are not part of the relevant arrangement.

For example, the Management Advisory Services Panel and People Panel includes a Flexibility Framework, which allows organisations to purchase up to five per cent of their annual total expenditure from service providers not on the panel. In addition, five per cent of an organisation’s spend per financial year or $50,000 (whichever is greatest) on services through the MAS Panel and People Panel can be sourced directly from First Nations businesses who are not on those panels through an additional Flexibility Allowance, further enhancing opportunities for First Nations businesses.

For more information, including up to date details of available support for First Nations businesses, please visit sellingtogov.finance.gov.au and niaa.gov.au/IPP.

Small and medium enterprises, also known as a SME, provide vital services, jobs and support to communities and regions and are the backbone of the Australian economy. That’s why the Australian Government has put in place a range of policies to support SMEs to participate in Australian Government procurement.

The Commonwealth Procurement Rules define an SME as an Australian or New Zealand firm with fewer than 200 full-time equivalent employees, which are genuinely independent businesses, not supported by the resources of a larger business, such as multi-national enterprises.

To ensure small and medium enterprises have plenty of opportunities to win contracts, the Australian Government has committed to procuring:

• at least 25 per cent of contracts by value from SMEs, for contracts valued up to $1 billion, and
• at least 40 per cent of contracts by value from SMEs, for contracts valued up to $20 million.

These targets are genuine stretch-targets for some organisations, and organisations will need to consider ways to increase the use of SMEs to achieve these targets.

In addition, through the Commonwealth Procurement Rules, the Australian Government has made it easier for buyers to directly engage small and medium enterprises through an exemption specifically designed to increase participation by smaller businesses.

This enables Australian Government organisations to directly engage SMEs for contracts valued up to

$500,000. It is important to note that the requirements of the Indigenous Procurement Policy are satisfied prior to directly approaching a small and medium enterprise.

To give SMEs more chances to win contracts, Australian Government buyers must invite a small and medium enterprise to submit a quote when using the Management Advisory Services Panel and the People Panel.

If an Australian Government buyer is seeking to engage an SME on the basis of these measures, you may need to provide evidence of your small and medium enterprise status.

To ensure its procurement practices do not unfairly discriminate against small and medium enterprises, Australian Government buyers are also encouraged to consider:

• the benefits of doing business with competitive SMEs when specifying requirements and evaluating value for money
• barriers to entry, such as costly preparation of submissions, that may prevent SMEs from competing for Australian Government contracts
• the capabilities of SMEs and their commitment to local or regional markets, and
• the disaggregation or unbundling of large projects into smaller work packages, which provides more opportunities for more businesses to participate.

For more information, please visit sellingtogov.finance.gov.au.