- a local business has the same definition as an SME
- a small business is defined as an enterprise with 1-19 FTEs including sole traders and start-ups
- a medium business is defined as an enterprise with 20-199 FTEs.
We may exclude large multinational companies with smaller subsidiaries from showing as SMEs in spend data.
1.5 Actions to date
Since 2019, the NSW Government has:
- Created a single platform buy.nsw – a gateway to NSW Government procurement resources and services for buyers and suppliers.
- Created the NSW Supplier Hub, integrated to buy.nsw, which makes it easier for businesses to register to sell to the NSW Government and easier for buyers to find suppliers.
- Committed to creating SimpleQuote to be integrated to buy.nsw for low-risk, low-value procurement.
- Updated the NSW Government’s Faster Payment Terms Policy so that all registered small businesses must be paid within 5 business days for goods and services worth up to $1 million, through a correctly rendered invoice.
- Introduced the Small Business Shorter Payment Terms Policy that requires large businesses who contract with NSW Government agencies for goods and services contracts valued at or above $7.5 million to pay small business subcontractors within 20 business days.
- Committed to the NSW Small Business Commission Tendering Support Program to provide small businesses with information, guidance and training to assist them with successfully finding and tendering for opportunities to sell to NSW Government.
- Extended the Business Connect program, a dedicated and personalised service that provides practical advice and training to support NSW small businesses to start, run, adapt or grow.
- Continued the Industry Capability Network NSW (ICN NSW) to deliver free-of-charge procurement advice and business matching to NSW project owners and suppliers on major projects.
- Continued SME targeted procurement support by providing focused advice via the NSW Procurement Service Centre.
- Created the Business Concierge Service, which provides a suite of assistance for starting or expanding a small business in NSW.
- Implemented e-invoicing to reduce errors and speed up the payment process for businesses.
2. Requirements and permissions
2.1 SME and regional supplier exemption
NSW Government agencies may negotiate directly with and engage an SME or regional supplier, for goods and services up to $150,000, including where there is a whole-of-government arrangement in place.
Expand all Guidance - SME and regional supplier exemptionDirect negotiate with SMEs and regional suppliers up to $150,000
This exemption continues the government’s support for local business, small business, sole traders and start-ups, regional businesses and growing SMEs.
You can directly negotiate with a supplier in one of these categories if your procurement is valued at up to $150,000. It cannot be applied to flow-on procurements though.
Direct negotiate with small and medium suppliers up to $250,000
Under PBD 2023-03 Procurement Opportunities for Small (and medium) Enterprises, agencies may negotiate directly with and engage small (and medium) businesses when procuring goods or services, excluding construction, valued up to and including $250,000, including where there are mandated procurement arrangements in place. This does not apply to regional suppliers.
Other exemptions may apply
Some SMEs fall into other supplier categories, so other exemptions may also apply. For example:
- Agencies may negotiate directly with an Aboriginal business for all procurements up to $250,000, even if a mandated scheme or panel is in place (as per the Aboriginal Procurement Policy).
- Agencies may buy from an approved disability employment organisation goods and services of any value via a single written quote (as per Public Works and Procurement Regulation 2019).
- Agencies may buy directly from an SME for ICT procurements up to $250,000, even if they are not on a whole-of-government contract (please refer to the ICT SME Procurement Commitments for more information).
You're not exempted from achieving value for money
When applying the SME and regional supplier exemption, agencies must still achieve value for money. Agencies must ensure their procurement meets quality, price, fitness for purpose, capability and other requirements.
Agencies must also apply the usual procurement rules – including your own agency's rules – to ensure probity and fairness.
Read more about probity and fairness in our buyer guidance.
Find SMEs and regional suppliers on Supplier Hub
Agencies should be satisfied of the status of SME and regional suppliers.
Supplier Hub has a searchable list of suppliers registered with NSW Government. You can filter suppliers by category, company type, size and location.
Examples - SME and regional supplier exemptionExample 1. Catering by local businesses under $4,000
An agency requires event catering and has a budget of $4,000.
A local bakery with 10 full-time employees (FTEs) is engaged to provide baked goods to a value of $2,500.
A local independent fruit supplier with 20 FTEs is engaged to provide fresh produce to a value of $1,500.
The agency can buy directly from both businesses as they are SMEs.
The exemption is a permission which supports local small businesses, particularly when buying fresh produce from local primary producers.
Example 2. Direct engagement for training services under $40,000
An agency requires whole-of-agency training and the estimated cost is $40,000.
A local training company with 12 FTEs is directly engaged to provide the training.
The agency can directly engage the training company because it is an SME. Importantly, it also offers a competitive price and can deliver the training onsite within the required timeframe.
The company is also a social enterprise, which supports government’s broader objectives of social outcomes through procurement.
Example 3. Local campaign by regional supplier valued under $150,000
An agency needs to develop a large-scale local communications campaign in a regional area, including traditional and social media. The agency’s pre-tender estimate was $120,000.
There is a whole-of-government scheme for advertising and digital communications services. However, a known potential supplier from the regional area is not on this scheme.
The agency believes the regional supplier is best placed to develop the campaign because they know the unique community needs and intricacies.
Given the estimate was below $150,000, the agency asked the regional supplier for a quote. The supplier quoted a competitive price and non-price criteria determined that they should be awarded the contract.
The agency can engage the regional supplier, regardless of the size of the business. The exemption is a permission which allows regional businesses to be supported.
If the regional supplier’s price was over $150,000, the agency would have had to go to market.
Example 4. Workflow management tool valued under $150,000
An agency requires a new workflow management tool. The agency’s pre-tender estimate is $140,000. The agency determines this is a low-risk ICT procurement.
In this case, the agency can buy directly from an SME because:
- the policy allows the agency to engage an SME or regional supplier up to $150,000
- the ICT Digital SME Procurement Commitments allow the agency to buy directly from an SME up to $250,000, even if they aren’t on a whole-of-government contract.
The agency identified an SME supplier with 150 FTEs with a unique solution to the agency’s needs. Although they’re not in the ICT Services Scheme, the agency requested the supplier for a quote. The supplier quoted a competitive price and an assessment determined that they should be awarded the contract.
The agency was able to buy from the SME supplier, regardless of whole-of-government arrangements, using Core& contracts (see ICT risk guidelines). Both permissions allow for SMEs to be supported through low-value ICT procurement.
Example 5. Direct engagement for services under $250,000
An agency requires whole-of-agency service and the estimated cost is $200,000.
A local company with 12 FTEs is directly engaged to provide the service.
The agency can directly engage the company under PBD 2023-03 Procurement opportunities for small (and medium) businesses because it is an small enterprise. Importantly, it also offers a competitive price.
2.2 SME first
NSW Government agencies must first consider purchasing from an SME, for procurements up to $3 million, where the agency is permitted to directly purchase goods and/or services from a supplier, including from prequalification schemes and panels.
Expand all Guidance - SME first requirement'SME first' applies when buying directly
The SME first requirement must be applied where agencies can buy directly from a supplier.
To determine whether you can buy directly, check the rules of the procurement arrangement you're using.
NSW Government schemes, contracts and panels each have their own rules. The rules set out the conditions and thresholds that determine how to buy from it. Depending on the value of your procurement, you may need to seek one or more quotes, run a tender or buy directly from a supplier.
Agencies are not required to record how the SME first requirement has been applied.
There are some exceptions to SME first
You don't need to give first consideration to an SME where:
- direct engagement is not practical
- the engagement may not deliver value for money, or
- there is no suitable SME able to deliver the goods or services.
In this case, you can consider other suppliers on the scheme or contract.
SME first and the Aboriginal Procurement Policy (APP)
SMEs may include Aboriginal-owned businesses, regional businesses, social enterprises and disability employment organisations.
The Aboriginal Procurement Policy requires that you give first consideration to Aboriginal-owned businesses for procurements up to $250,000 where possible. The SME and Regional Procurement Policy extends the threshold to $3 million.
The policies overlap when the procurement value is up to $250,000. When deciding which policy to apply in these cases, consider:
- NSW Government targets associated with direct spend with Aboriginal businesses
- the market and agency requirements.
Example 1. Buying auditing services under $120,000
An agency needs to procure auditing services estimated at $120,000. They are using the Performance and Management Services Scheme, which their agency mandates.
The scheme rules do allow direct engagements for this procurement. They state that 'an engagement can be made directly from the scheme by inviting one written quotation from a supplier prequalified under the scheme up to $150,000.'
As well as the SME first requirement, the Aboriginal Procurement Policy (APP) requires giving first consideration to Aboriginal-owned businesses up to $250,000.
So the agency buyer uses their best endeavours to engage an SME or Aboriginal-owned business on the scheme that can fulfil the requirement.
If the buyer determines there is no suitable SME or Aboriginal-owned business, they may then consider other suppliers on the scheme.
Example 2. Consultancy engagement valued $450,000
An agency needs to engage an external consultant to prepare a strategic business case.
The procurement is estimated to be valued at $450,000. They're using the Performance and Management Services Scheme.
The scheme rules do not allow direct engagements in this case. They state that 'for procurements over $250,000 (excl. GST), an engagement can be made from the scheme by inviting a minimum of 3 suppliers, prequalified under the scheme, to submit written quotations. Open invitations to tender are not required.'
In this case, the agency is not required to apply the SME first requirement.
2.3 SME and sustainability criteria
For goods and services contracts valued at $3 million or more, a NSW Government agency must include in the non-price evaluation criteria as a minimum:
- 10% allocated to SME participation, and
- 10% allocated to support for the NSW Government’s economic, ethical, environmental and social priorities.
Where no weightings are used, SME participation and support for the NSW Government’s economic, ethical, environmental and social priorities should be given appropriate qualitative consideration.
Expand all Guidance - SME and sustainability criteriaCreating a new scheme
When establishing a new prequalification scheme, agencies are exempt from applying the SME and sustainability criteria.
Buying from an existing scheme or panel
When buying from an existing scheme, agencies must apply the SME and sustainability criteria if the value of the procurement is more than $3 million over the life of the contract.
Creating a new standing offer arrangement
When establishing a new standing offer arrangement, whether the SME and sustainability criteria will apply depends on the estimated spend with each supplier on the arrangement.
If the spend with every supplier is estimated to be over $3 million over the term of the contract, the agency must apply the criteria.
If the spend with every supplier is estimated to be under $3 million or cannot be estimated, the agency is exempt from applying the criteria.
View an illustration of this process in a decision tree PDF, 102.09 KB.
Seek CPO approval if you can't apply the policy
If you're unable to apply the SME and sustainability criteria or request a participation plan, you must seek approval from your agency's chief procurement officer (CPO) and include the reasons in the procurement plan.
Sample - statement of requirementsSee an example of how you can reference the policy in your tender documents:
'The SME and Regional Procurement Policy applies to this contract. Respondents are required to:
- Submit an SME and Local Participation Plan. This should contain achievable commitments as the Plan will be contractually binding on the successful Respondent.
- Report to the Principal (using the method directed by the Principal) at the end of each financial year quarter of the term, against the commitments in the SME and Local Participation Plan, including (but not limited to):
- number of SME subcontractors, value of goods and services procured from SMEs, percentage of contract spend with SMEs
- number of FTEs in NSW, value of goods and services procured in NSW, value of capital expenditure in NSW.'
Table 1 lists the minimum percentages of non-price criteria you must apply to your tender evaluation for procurements valued at $3 million and over.
Once you determine the breakdown of price and non-price criteria you're applying (first column), check the minimum percentage you must use for SME participation (second column) and for sustainability commitment (third column).
For example, if your evaluation criteria breakdown is 40% price and 60% non-price, you must use at least 6% of your non-price criteria for SME participation and 6% of your non-price criteria for sustainability commitment.
Table 1. Minimum percentages of non-price criteria for procurements $3 million and over
Price and non-price breakdown SME participation Sustainability commitment Other non-price 90% and 10% 1% 1% 8% 80% and 20% 2% 2% 16% 70% and 30% 3% 3% 24% 60% and 40% 4% 4% 32% 50% and 50% 5% 5% 40% 40% and 60% 6% 6% 48% 30% and 70% 7% 7% 56% 20% and 80% 8% 8% 64% 10% and 90% 9% 9% 72% Ensure all weighted criteria is clear in your tender documents and applied consistently to all potential suppliers.
Your tender evaluation plan shouldn't contravene Australia’s obligations under International Procurement Agreements. Read more about enforceable procurement provisions.
Use the participation plan to evaluate tender responses
The SME and local participation plan is mandatory for procurements over $3 million (section 2.4).
The plan may be used to assess the SME participation and sustainability commitment criteria.
Evaluate SME participation criteria
Some factors agencies can consider when evaluating SME participation include:
- whether the respondent is an SME
- whether the respondent is a consortium of SMEs
- whether the respondent is a large business that will subcontract to SMEs
- the number of SMEs that will benefit from subcontracting opportunities
- the value of goods and services which will directly support SMEs
- the value of goods or services that SMEs will benefit from subcontracting opportunities.
Evaluate sustainability commitment criteria
Sustainability commitments support NSW Government’s economic, ethical, environmental and social priorities.
Some factors you can consider when evaluating sustainability include:
- creation of jobs in NSW where possible
- developing and sustaining NSW industry capabilities, including supporting people to gain in-demand skills, providing skills and training opportunities, employing trainees or apprentices in NSW
- supporting remote and regional communities, such as employment opportunities, upskilling and training
- industry development, including sharing knowledge, skills and technology
- productivity benefits, including the creation of innovative practices, products and supply chains
- Aboriginal participation, for example Aboriginal-owned businesses in the supply chain or employment opportunities for Aboriginal people
- supplier commitments to prevent or minimise the risk of modern slavery in their supply chain
- capital investment
- initiatives to increase resource efficiency or reduce waste
- participation of social enterprises or disability employment organisations in the supply chain
- leasing of green-star rated real estate
- use of goods and services from disability employment organisations that employ persons with disability.
Evaluate local participation
Local participation commitments show how the supplier will support NSW Government’s economic priorities through the NSW economy.
In the best practice participation plan template, we define local content as ‘goods produced, services provided, and labour supplied by the NSW industry’.
Keep in mind that when evaluating local content, you shouldn't discriminate against suppliers on the basis of their size, location or ownership.
2.4 SME and local participation plan and reporting
For contracts valued at $3 million or more, suppliers are required to submit an SME and local participation plan, referencing SME and NSW specific content, consistent with International Procurement Agreement (IPA) obligations, and report on these commitments quarterly.
Expand all Guidance - SME and local participation plansSME and local participation plans help agencies understand how the procurement will benefit SMEs and NSW Government’s economic, ethical, environmental and social priorities.
Agencies consider these benefits when determining the value for money of the tender responses received.
Procurements over $3 million must have a participation plan
Tender documents must include an SME and local participation plan.
The evaluation panel may use the plans to assess the SME participation and sustainability commitment criteria of tender responses.
Agencies can create their own participation plan template
Agencies can create their own or make changes to the best practice participation plan template DOCX, 80.76 KB.
When creating a new plan, keep in mind that the plans shouldn't create excessive red tape or cost for tenderers. The type and amount of information in the plans should be appropriate for the scale, scope and risk of the procurement.
Generally, an SME and local participation plan should cover 3 elements:
- SME participation, assessed under the SME criteria
- sustainability commitments, assessed under the sustainability criteria
- local participation, assessed under the sustainability criteria.
Ensure all weighted criteria is clear in your tender documents and applied consistently to all potential suppliers.
Keep in mind that when evaluating local content, you must not discriminate against suppliers based on their size, location or ownership.
For the SME and local participation plan, we define local content as ‘goods produced, services provided, and labour supplied in NSW’.
Include the final participation plan in the contract
Include the final SME and local participation plan in the contract requirements with the successful supplier(s).
The contract requirements should also state that the supplier must report on progress quarterly.
Report on progress quarterly
Once the contract is awarded, the supplier must report on progress on the agreed SME and local participation plan quarterly.
Reporting is required to be submitted quarterly through the reporting.buy.nsw portal.
Monitor progress
The contract manager is responsible for monitoring progress and ensuring the suppliers are working towards the commitments they have made in the SME and local participation plan.
The contract manager is also responsible for following up with the supplier if the plan is not being met.
Submit a final report at conclusion of the contract
When completing the contract, the supplier must submit a final report confirming compliance with the commitments made in the SME and local participation plan.
If the supplier can't confirm compliance with all measures they've committed to, they must explain why in reasonable detail in the final report.
Examples - SME and sustainability criteria and participation planThe following examples and case studies are provided to assist agencies when evaluating SME participation and sustainability including local content. They are not intended to prescribe a specific process.
Agencies should ensure that considerations reflect the scale, scope and risk of the procurement.
Example 1. New panel for training services over $3 million
A NSW Government agency is establishing a panel for training services. The value is expected to be more than $3 million with each supplier. Therefore, they must include the SME and sustainability criteria. Tender respondents must submit a SME and local participation plan.
In evaluating tender responses, the agency could consider:
- competitive pricing
- employing staff and contractors located in NSW
- taxes paid to the Australian Government on associated profits
- using SMEs in delivering goods and services, such as a subcontractor or a supplier
- using Aboriginal-owned businesses in delivering the product
- sharing knowledge, skills and technology with SMEs or Aboriginal-owned businesses
- using goods and services from a business that provides services of people with disability
- using goods and services from a social enterprise.
The agency received 4 responses:
Supplier 1
SME employing 30 workers across 2 offices in NSW. Supplier 1 has:
- proposed SME participation
- proposed local content (employment in NSW).
Supplier 2
Provides training services across NSW, lease real estate in a number of states and cities which are green-star rated, and use a number of SMEs as subcontractors across Australia (including in NSW). Supplier 2 has:
- proposed SME participation
- proposed local content (lease real estate, subcontractors across NSW)
- proposed sustainable benefit (green-star rating).
Supplier 3
Uses goods and services from a business that provides services of people with disability, which is also an SME. The tenderer also noted further economic benefits given these employees, previously on welfare, are buying additional goods and services. Supplier 3 has:
- proposed SME participation
- proposed social benefit.
The flow-on benefits of buying additional goods and services because the employees are no longer on welfare cannot be considered, as this is a second-round economic benefit, not a direct economic benefit of the procurement to the Australian economy.
Supplier 4
No plan addressing the SME participation or the NSW Government’s economic, ethical, environmental, and social priorities including NSW-specific content was provided. Supplier 4 did not address mandatory requirements.
In this example, the evaluation relates only to the SME and sustainability criteria and the SME participation plan. The evaluation should encompass all evaluation criteria, consistent with the evaluation plan.
Example 2. New panel for laundry equipment over $3 million
A NSW Government agency is looking to establish a panel of prequalified suppliers of industrial laundry equipment via a standing offer agreement. The value is expected to be over $3 million with each supplier. Therefore, they must include the SME and sustainability criteria and consider the SME and local participation plan.
In evaluating tender responses, the agency could consider:
- competitive pricing
- ensuring that supply chains for essential goods and services are competitive and diverse, including by providing opportunities for SMEs and Aboriginal-owned businesses
- productivity benefits, including the creation of innovative practices, products and supply chains
- developing and sustaining NSW industry capabilities, including by supporting people to gain in-demand or relevant skills, providing skills and training opportunities and employing trainees or apprentices in NSW
- supporting remote and regional communities, such as through employment opportunities, upskilling and training
- sharing knowledge, skills and technology with SMEs
- providing environmental, social and economic benefits to Australian communities
- promoting the development of industry capabilities, including in supporting critical industrial capabilities.
The agency received 4 responses:
Supplier 1
Large business that will subcontract installation, maintenance and technical support to numerous SMEs, creating 8 additional jobs in NSW with 2 identified for Aboriginal employees. Supplier 1 has:
- proposed SME participation
- proposed local content (employment in NSW)
- proposed social benefit (employment of Aboriginal employees).
Supplier 2
Large business that will create 5 new apprenticeship opportunities as part of technical support and maintenance. Supplier 2 has:
- proposed local content (apprenticeship in NSW).
Supplier 3
SME that will create 10 new jobs and 2 new apprenticeship opportunities as part of technical support and maintenance. Supplier 3 has:
- proposed SME participation
- proposed local content (apprenticeship and employment in NSW).
Supplier 4
No plan addressing the SME participation or the NSW Government’s economic, ethical, environmental, and social priorities including NSW-specific content was provided. Supplier 4 did not address mandatory requirements.
In this example, the evaluation relates only to the SME and sustainability criteria and the SME participation plan. The evaluation should encompass all evaluation criteria, consistent with the evaluation plan.
Example 3. Software and services over $3 million
A NSW Government agency is procuring software, implementation services and ongoing support. The value is expected to exceed $3 million.
As this is an ICT procurement, the agency must:
- include the SME and sustainability criteria
- include the 25% indirect addressable SME spend target (as part of the ICT SME Procurement Commitments), and
- consider the SME and local participation plan.
The procurement is over $1 million so the high-risk contract will need to be used.
As there are not enough opportunities to engage with SMEs for the specific software, the agency’s chief procurement officer (or assigned delegate) has approved the exclusion of the software from the amount of addressable spend.
Therefore, the 25% addressable SME spend target only includes spend on implementation services and ongoing support.
In evaluating a tender response, considerations could include:
- competitive pricing
- whether the supplier can meet the 25% target of addressable spend with SMEs
- employing staff and contractors located in NSW
- taxes paid to the Australian Government on associated profits
- using SMEs in delivering goods and services, such as a subcontractor or a supplier
- using Aboriginal-owned businesses in delivering the product
- sharing knowledge, skills and technology with SMEs or Aboriginal-owned businesses
- using goods and services from a business that provides services of people with disability
- using a social enterprise or goods and services from a social enterprise.
The respondents are required to submit a SME and local participation plan with their tender response.
The agency received 4 responses:
Supplier 1
Large business employing 100 workers in NSW. They will subcontract the support services to another large NSW business, creating 3 new NSW jobs. Supplier 1 has:
- proposed local content (employment in NSW).
Supplier 2
Large business with an office of 250 people in NSW. They will subcontract the support services to SMEs across Australia (including in NSW). One of the SMEs is a social enterprise. Supplier 2 has:
- proposed SME participation (including meeting the 25% addressable spend target)
- proposed local content (employment in NSW and subcontractors across NSW)
- proposed social benefit (subcontracting with a social enterprise).
Supplier 3
Large business that will be leasing a new NSW facility to provide ongoing support, employing 20 new staff in NSW. They will subcontract the implementation services to an SME in NSW. Supplier 3 has:
- proposed SME participation (including meeting the 25% addressable spend target)
- proposed local content (leasing of real estate in NSW, employment in NSW and subcontracting in NSW).
Supplier 4
No plan addressing the SME participation or the NSW Government’s economic, ethical, environmental, and social priorities including NSW specific content was provided. Supplier 4 did not address mandatory requirements (including 25% addressable spend targets).
In this example, the evaluation relates only to the SME and sustainability criteria and the SME participation plan. The evaluation should encompass all evaluation criteria, consistent with the evaluation plan.
3. Making it easier to supply to government
3.1 Advanced notice of opportunities
NSW Government agencies must provide suppliers with as much notice as possible of upcoming and open procurements.
Expand all Guidance - advanced notice of opportunitiesThe more notice you can give to suppliers of upcoming procurements, the better they can plan and prepare their bids. This is particularly true for small and local businesses.
Tender periods should give all businesses enough time to price and prepare their submissions. This applies to all types of procurements, including requests for tenders, requests for quotes and expressions of interest.
Several factors impact tender periods, including:
- the nature of the goods and services
- the complexity of tender documents
- the conditions that the supplier needs to meet to participate in the procurement, such as evidence or certifications required
- the extent and complexity of the information you're requesting.
There are also special considerations for covered procurements and for accredited agencies.
3.2 Briefings and feedback
NSW Government agencies must provide pre- and post-tender briefings when reasonably requested by SMEs and regional suppliers to clarify requirements and provide feedback on unsuccessful bids.
Expand all Guidance - briefings and feedbackGive potential suppliers a better chance to understand requirements
The main thing to keep in mind is that all suppliers must have equal access to information, so plan pre-tender meetings carefully. Ensure they do not give one tenderer advantage over others. They can be inspections, demonstrations or briefings.
Depending on the nature of the briefing, you can make them mandatory or optional. We recommend only making them mandatory if they are essential for tenderers to understand the requirements or the tendering process.
Keep records of what was discussed at pre-tender meetings and for major meetings, this may include a video recording.
Help suppliers improve future tender responses
Post-tender debriefs are a great opportunity to provide feedback on the supplier's response to help improve their future tender responses.
The debrief should cover the reasons for the supplier not being selected, not a debate on the evaluation process. Include the strengths in the supplier’s response and areas for improvement for future bids.
If the supplier asks about the successful tenderer, you can provide information that is publicly disclosed. Do not discuss commercial-in-confidence information, such as the details of other suppliers' responses.
If you are debriefing a supplier that did not progress to the next stage of a multi-stage procurement, you can send the supplier a written explanation of the reasons for the decision.
Debriefs can be done on a virtual or face-to-face meeting or email. A reasonable request for a debrief will need to consider the time and resources needed to debrief suppliers who have requested a debrief. This will influence how you manage debriefs, especially for tenders that had many suppliers participating.
Keep records of post-tender debriefs
Keep an internal record of the debrief. This should include:
- details of the debrief, such as date, time and format
- who was involved
- what was discussed, and
- comments made.
3.3 Tendering and contract requirements
NSW Government agencies must, whenever feasible, limit the length of tender responses when seeking more than one quote, and minimise tender and contract requirements wherever possible (such as insurance levels or technical requirements).
Expand all Guidance - tendering and contract requirementsMake it easy for SMEs to participate
To ensure that SMEs have a fair opportunity to compete, you should:
- provide a length limit for tender responses
- use plain English
- simplify tender requirements as much as possible.
Minimise insurance requirements
Ensure that the minimum possible levels of public liability and professional indemnity insurance are imposed on SMEs.
Allocate risk to the best party placed to mitigate or manage them – this may or may not be the supplier.
Professional indemnity insurance only applies if you're procuring professional services or expert advice.
Generally, the appropriate level of insurance is based on:
- the type of procurement
- contract value
- risk profile
- category and market profile
- any other relevant factors.
The agency's risk manager is best placed to advise on the risks of the engagement and the minimum levels of insurance.
4. Resources and support for suppliers and buyers
- buy.nsw is the centralised gateway to procurement information and platforms for the NSW Government.
- Supplier Hub is a place for buyers and suppliers of products and services to connect.
- Tenders is Australia’s largest provider of state government tenders.
- The NSW Procurement Service Centre provides one-on-one advice on government procurement requirements and opportunities.
- The Business Connect program is a dedicated and personalised service that provides practical advice and training to support NSW small businesses to start, run, adapt or grow.
- The Industry Capability Network NSW (ICN NSW) delivers procurement advice and business matching to NSW project owners and suppliers on major projects.
- The Sydney Start up Hub provides a central destination for the NSW startup sector and offers facilities for up to 2,500 entrepreneurs.
- The Supplier feedback tool is an online survey, which allows SMEs to provide anonymous feedback on their experiences with specific government procurement processes, with targeted questions regarding aspects of the process.
- A NSW small business, which supplies to participating NSW Government agencies, may be eligible for 5-day payment terms under the Faster Payments Policy. Small businesses must register with the Small Business Commissioner to be eligible.
5. Review of the SME and Regional Procurement Policy
The outcomes and effectiveness of the SME and Regional Procurement Policy will be reviewed in 2023 after the policy has been in effect for 2 years.
Related content
Policy archive
- 2019 SME and Regional Procurement Policy PDF, 1346.45 KB
- 2021 SME and Regional Procurement Policy Review PDF, 2225.81 KB
