State Government procurement reforms will make it even easier for South Australian firms to access work through government procurement contracts.

Small Business Minister Martin Hamilton-Smith said that changes to the Better Customer Charter, coming into effect on 1 July 2016, mean that Simple Procurement provisions will reduce the amount of information businesses need to provide when quoting and tendering for Government work.

The Procurement Reform Strategy will:

• Reduce requirements in procurement, raising the chances of success for small business;
• Reduce the time to complete tendering due to document simplification
• Remove barriers to participation, reducing contract costs for both business and government, and
• Timelier decision making in procurement.

Background

These reforms add to the already strong results to come from the Industry Participation Policy (IPP) and the Office of the Industry Participation Advocate, established by the South Australian Government in 2013.

Since then, there has been significant improvement in the value of goods and services contracts awarded to local suppliers, standing now at 90 per cent, an increase of more than 40 per cent since 2012-13

These benefits will be extended through:

• The Industry Participation Advocate and external commercial specialists required to sit on procurement governance committees of major purchasing agencies;
• Enhanced commercial acumen in State Government through targeted staff training;
• Oversight of agencies using spend analytics to identify opportunities for improvement with reporting to the Budget Review Cabinet Committee, and
• Publishing forward procurement plans for contracts from $220,000 will make opportunities more transparent.

South Australia’s economy has seen high value contribution from major construction projects valued at $50 million and over and the IPP has resulted in strong benefit through the IPP. For example, in the past 12 months, South Australian subcontractors have been awarded projects worth an estimated $637 million, out of a potential project pool of $698 million.

Quotes attributable to Martin Hamilton-Smith, the Minister for Small Business

The Industry Participation Advocate has transformed many of the outcomes for small business in procurement and these latest reforms are all about South Australian businesses winning even more contracts.

These procurement reforms mean small business will have simpler, timelier procurement processes and I will make sure that the Industry Advocate ensures these outcomes are delivered.

The removal of red tape in procurement will be a noticeable win for business and the simplified practices will begin in September.

Key agencies have embraced commercial acumen training and this is a move central to better functioning procurement systems and importantly, better commercial outcomes for both suppliers and tax payers.