Image: Minister for Domestic Manufacturing and Government Procurement, Coutney Houssos. Image: Coutney Houssos/Facebook
By JUSTIN COOPER.
The NSW Government is to engage with smaller businesses, through new procurement policies and additional funding towards the purchase of local goods and services.
Small enterprises, of less than 200 employees, will be provided more opportunities to be procured by government through the policy changes.
The government plans to raise the small business procurement threshold from $150,000 to $250,000, and businesses will be provide additional time to provide proof of insurance when given contracts.
In announcing the policies, Minister for Small Business Steve Kamper explains the necessity for local business “expertise and agility” throughout the government.
“By increasing the direct procurement threshold we are providing small businesses with the most valuable resource in business, greater opportunity,” said Kamper.
Minister for Domestic Manufacturing and Government Procurement Courtney Houssos continued noting the changes aims to scource “local content and domestic manufacturing.”
“Small businesses already play an important role as they grow the state’s economy and sustain local jobs,” said Houssos.
“By growing their opportunities to engage with the Government we can give them an even bigger boost.”
Local business win
Following the announcement, CEO of Business NSW Dan Hunter says the plan “opens the door” for local enterprises to receive contracts without “tedious tender processes.”
“We know businesses have been deterred from bidding for government contracts in the past due to the need to secure hefty insurance coverage – regardless of whether they win the contract,” Hunter explains.
“Currently 46,000 [small to medium sized enterprises] directly engage with government contracts and this announcement is a positive signal to government departments to increase their engagement with small business in NSW.”
NSW currently holds the highest number of smaller sized enterprises, with over 840,000 businesses making up 98% of the state’s business.
The government will focus on businesses offering goods and services, including catering, office supplies, landscaping maintenance, and training resources for health and wellness support with the new procedures.
The NSW Procurement Board has received the Ministerial Direction for the policy changes, and are expected to be implemented before December 31, 2023.
