Tenderers for Australian Government work now have to demonstrate how they’ll give small and medium enterprises (SMEs) a fair go when bidding for major Government contracts.
From January 1, this year all new contracts over $20 million put out to tender will require the inclusion of an approved Australian Industry Participation (AIP) Plan with any bid – setting out how suppliers will give SMEs full, fair and reasonable opportunity to supply goods and services.
“This new requirement is part of the Rudd Government’s $19.1 million commitment to support buying Australian at home and abroad by extending and strengthening the AIP framework,” said Innovation Minister Senator Kim Carr.
“The Government wants Australian manufacturing, construction and services firms to be afforded genuine opportunities to participate in major government procurements.
“That’s why we are applying the AIP framework to our own procurements.
“It is about giving Australian companies the best chance of getting in the game, and the best chance of winning.
“This is evidence-based policy in action – a survey of project proponents who have used AIP plans previously found that they improved procurement outcomes and reduced risk by broadening the supply base.
“SMEs will have better information about the work available, and tenderers will be better informed about the capabilities of Australian industry.”
Tenders will only be awarded to those local suppliers who can best demonstrate that they will deliver value for money and that their goods and services are competitive on timeliness, capabilities and whole-of-life-costs.
The amended procurement arrangements are consistent with Australia’s free trade agreements.
For further information about Australian Industry Participation visit: www.aip.gov.au