The federal government has dramatically boosted the share of government procurement earmarked for Australia’s small and medium sized businesses.
Revisions to the Commonwealth Procurement Rules (CPRs) on Friday that will double federal spending available to SMEs.
The new CPRs now require that 20 per cent of procurements by value are sourced from SMEs. Each year the Australian Government spends approximately $70 billion a year on contracts.
Value for money is at the CPRs centre. When assessing value for money officials must consider the relevant financial and non-financial costs and benefits of each proposal.
The revised CPRs now require that procuring officials consider a procurement’s broader impact on climate change – a change in line with Canberra’s commitment to reduce emissions by 43 per cent by 2030.
The CPRs also encourage entities to approach multiple suppliers, when procuring from a panel arrangement.