Government procurement trends for 2023-24.  What’s new and how to leverage them for a win!

In the dynamic landscape of government procurement, where policies shift, technologies evolve, and industries adapt, staying ahead of the curve is not just an advantage – it’s a necessity. As we step into the financial year 2023-24, a new era of government bidding trends emerges, redefining the way businesses engage with public sector opportunities.

The past year has been a remarkable journey, marked by unprecedented global challenges and transformative shifts in how governments allocate resources. Now, as the dust settles and a sense of resilience takes root, both government agencies and the private sector are poised to explore novel avenues of collaboration and innovation.

Whether you’re a seasoned player in the field or a newcomer looking to establish a foothold, this exploration of government procurement trends promises to be an eye-opening guide, equipping you with the knowledge and foresight to seize the opportunities that lie ahead.

The future of government procurement is here.

Government procurement trends in spending

Who are the major spenders in the Australian government?  According to the Australian Government Procurement Dashboard latest published figures –

1. The Department of Defence (DoD) was the largest spender on government tenders and procurement in 2022-2023, accounting for 42.1% of the total value of contracts awarded. The DoD awarded a total of $101.1 billion in contracts in 2022-2023, up from $88.6 billion in 2021-2022.
2. The next largest spender on government tenders and procurement was the Department of Health, which accounted for 12.2% of the total value of contracts awarded.
3. The Department of Education accounted for 9.7%.

Rank	Department		Percentage of Total Value of Contracts Awarded
1	Department of Defence		42.10%
2	Department of Health		12.20%
3	Department of Education		9.70%
4	Department of Infrastructure, Transport, Regional Development and Communications		8.80%
5	Department of Social Services		6.60%
6	Department of Home Affairs		5.80%
7	Department of Treasury		5.10%
8	Department of Agriculture, Water and the Environment		4.70%
9	Department of Human Services		4.40%
10	Department of Foreign Affairs and Trade		3.60%

These departments are all responsible for a wide range of services and programs, and they all require a significant amount of goods and services to deliver these services and programs.

Government procurement trends for 2023-24

Government agencies are becoming more sophisticated in their procurement practices, and they are looking for more than just the lowest price when it comes to awarding contracts. They are looking for innovative, sustainable, and socially responsible solutions that can help them achieve their goals.

Let’s explore these trends and look at ways that your business can incorporate them into your business and tender responses.

Increased use of e-tendering.

The use of e-tendering has increased significantly in recent years. This is due to the many benefits of e-tendering, such as speed, efficiency, and cost savings.

Demonstrating an increased use of e-tendering in a government procurement tender response involves showcasing your organisation’s proficiency in utilising electronic tendering platforms and how it can lead to more efficient, transparent, and streamlined procurement processes.

Your business can effectively demonstrate its increased use of e-tendering in your tender response by:

• If applicable, discuss how your e-tendering platforms can integrate with other procurement and project management systems, enhancing overall process efficiency.
  • Discuss the user-friendly interfaces of the e-tendering platforms you use. Emphasise how they simplify the submission process for both your organisation and the government agency.
  • Address data security concerns by explaining the robust security measures in place to protect sensitive information during the e-tendering process.
  • Discuss any supplier portals that the e-tendering platform offers. Explain how these portals provide a centralised hub for accessing project information, submitting bids, and engaging with the procurement process.
  • Address any compliance requirements set by the government agency related to e-tendering. Demonstrate your organisation’s ability to meet these requirements.
  • If applicable, discuss how your e-tendering platforms can integrate with other procurement and project management systems, enhancing overall process efficiency.

Greater focus on innovation.

Government agencies are increasingly looking for innovative solutions to their challenges. This means that your tender response needs to be able to demonstrate the ability of your company to think outside the box and come up with new and creative ways to meet the client’s needs.

Demonstrating innovation in a government procurement tender response requires showcasing your ability to think creatively, propose novel solutions, and provide evidence of how your innovative approach will bring value to the project or service being procured.

Here’s a guide on how to effectively demonstrate innovation in your tender response:

• Start by thoroughly understanding the requirements of the tender. This includes the project’s objectives, scope, challenges, and any specific needs stated in the tender documents.
• Conduct in-depth research to identify current industry trends, best practices, and emerging technologies relevant to the project. Analyse the problem statement to pinpoint areas where innovation can have a significant impact.
• Propose innovative solutions that address the identified challenges and align with the project’s goals. These solutions could involve new technologies, methodologies, process improvements, or unique strategies.
• Clearly outline the value your innovative approach will bring to the project. Highlight how it can lead to increased efficiency, cost savings, improved outcomes, reduced risks, or other benefits that align with the government agency’s objectives.
• Provide concrete examples of similar projects or initiatives where you have successfully implemented innovative solutions. Highlight the results achieved, such as increased productivity, enhanced user experience, or streamlined processes.
• Showcase any collaborations or partnerships you have established with research institutions, technology providers, or industry experts. These collaborations can lend credibility to your innovative approach.
• Tailor your proposal to the specific needs of the government agency. Highlight how your innovative solution is not a one-size-fits-all approach but is customised to address their unique requirements.
• Address any concerns or risks associated with your innovative approach. Provide a clear plan for managing and mitigating these risks, demonstrating that you have thought through potential challenges.
• Lay out a comprehensive implementation strategy that details how your innovative solution will be integrated into the project. Include timelines, milestones, and key performance indicators to measure success.
• Emphasise the long-term benefits of your innovative approach beyond the scope of the project. Illustrate how your solution can adapt and scale with changing needs, ensuring continued relevance and value.
• Craft your response in a clear, concise, and engaging manner. Use visuals, diagrams, and storytelling to help the evaluators understand the innovative aspects of your proposal.

Remember, demonstrating innovation isn’t just about using buzzwords – it’s about providing a well-reasoned, well-supported, and practical approach that shows how your solution goes beyond the status quo to deliver exceptional results.

Increased focus on sustainability.

Government agencies are also increasingly looking for sustainable solutions. This means that tenderers need to be able to demonstrate how their products or services will meet the agency’s sustainability requirements.

Demonstrating sustainability in a government procurement tender response involves showcasing your commitment to environmental, social, and economic sustainability throughout the project lifecycle.

Here’s how your company can effectively demonstrate sustainability in your tender response:

• Thoroughly review the tender documents to understand the sustainability goals and requirements set by the government agency. These may include environmental protection, social responsibility, and economic efficiency.
• Identify and assess the potential environmental impacts of your proposed solution. Highlight how your approach minimises negative effects on the environment, such as reducing carbon emissions, conserving resources, and promoting eco-friendly practices.
• Showcase any green practices, technologies, or materials that you plan to incorporate. This could include energy-efficient systems, renewable energy sources, low-emission transportation, or waste reduction strategies.
• Conduct a life cycle analysis of your proposed solution. Demonstrate how your approach considers the entire lifecycle of the product or service, from raw materials to production, use, and disposal, in order to minimise environmental impact.
• Outline your commitment to social responsibility. Describe how your solution will positively impact local communities, promote fair labour practices, support diversity and inclusion, and contribute to social well-being.
• Highlight how your solution contributes to economic sustainability. This could involve creating jobs, boosting local economies, providing cost-effective alternatives, or delivering long-term financial benefits.
• If applicable, mention any relevant environmental certifications your organisation holds, such as ISO 14001 (Environmental Management System) or Green Star (Green Building Council of Australia).
• Describe the sustainability practices of your suppliers and partners. Demonstrate that your commitment to sustainability extends to your entire supply chain.
• Detail your waste management and recycling strategies. Explain how you plan to minimise waste generation, promote recycling, and responsibly dispose of any waste produced.
• Highlight your approach to engaging stakeholders, including local communities and relevant NGOs. Show how you incorporate their input and concerns into your sustainability initiatives.
• Include metrics and reporting mechanisms that will track the progress of your sustainability initiatives. Outline how you will measure and report on your sustainability goals throughout the project.
• Outline your long-term sustainability plan beyond the project’s completion. Describe how you will ensure that the positive impacts of your solution continue to be felt over time.
• Use visuals, case studies, and real-world examples to illustrate your past successes in implementing sustainable practices in similar projects.
• Consider including an executive summary that succinctly captures the key sustainability aspects of your proposal. This can provide evaluators with a quick overview.

Remember that demonstrating sustainability isn’t just about listing eco-friendly initiatives – it’s about presenting a comprehensive, holistic approach that aligns with the government agency’s sustainability objectives and contributes to a better future.

Have a look at this environmental impact procurement guide on Buying for Victoria’s website on how to consider environmental factors when making decisions for goods and services procurement.

Head over to our blog  –

How do you demonstrate your commitment to sustainability in your tender –  

to find more ways on sustainable procurement.

Increased focus on social responsibility.

Government agencies are also increasingly looking for socially responsible solutions. This means that tenderers need to be able to demonstrate how their products or services will benefit the Australian community.

Demonstrating social responsibility in a government procurement tender response involves showcasing your commitment to ethical practices, community engagement, and positive social impacts.

How can you effectively demonstrate social responsibility in your tender response?

• Carefully review the tender documents to understand the social responsibility requirements set by the government agency. This may include expectations related to local community engagement, labour practices, diversity and inclusion, and more.
• Highlight your organisation’s commitment to ethical business practices. This could involve adhering to codes of conduct, promoting transparency, and ensuring fair and honest dealings.
• Detail your approach to ensuring fair labour practices and respecting human rights. Highlight initiatives such as equal pay, safe working conditions, and compliance with labour laws.
• Showcase your commitment to diversity and inclusion in your workforce and supply chain. Explain how you promote equal opportunities for all individuals, regardless of gender, ethnicity, or other characteristics.
• Describe your strategy for engaging with and benefiting the local community. Highlight initiatives such as job creation, skills development, community investment, and partnerships with local organisations.
• Emphasise how you collaborate with stakeholders, including local communities, non-governmental organisations (NGOs), and relevant advocacy groups. Show how their input and concerns shape your social responsibility initiatives.
• Conduct a social impact assessment of your proposed solution. Demonstrate how your approach positively contributes to the well-being of the community and individuals affected by the project.
• Detail initiatives to support the well-being of your employees. This could include health and wellness programs, professional development opportunities, and work-life balance measures.
• Highlight any partnerships or collaborations your company has with NGOs or nonprofits that work to address social issues and contribute to community development.
• Showcase your efforts to provide education and training opportunities to local communities, helping individuals acquire valuable skills and improve their employability.
• Explain your approach to sourcing goods and services locally, whenever feasible. Also, discuss your commitment to working with diverse suppliers from different backgrounds.
• Include measurable social metrics and targets that you plan to achieve through your social responsibility initiatives. This could include metrics related to job creation, training participation, community investments, etc.
• Highlight your long-term commitment to social responsibility beyond the duration of the project. Describe how your efforts will continue to benefit the community even after the project is completed.
• Use visuals, infographics, and testimonials to showcase the real-world impact of your social responsibility initiatives in previous projects.
• Don’t forget to include your key social responsibility aspects of your proposal in your executive summary.

Demonstrating social responsibility goes beyond compliance – it’s about showcasing a genuine dedication to creating positive social change and making a meaningful contribution to the communities you operate in.

Want to know more about social responsibility procurement?

Read our blog What is social responsibility procurement and why is it so important?

Greater use of partnering arrangements.

Partnering arrangements are a type of contract where the government agency and the contractor work together as partners to deliver a project. This can help to improve collaboration, communication, and trust, which can lead to better outcomes for both parties.

Demonstrating a commitment to greater use of partnering arrangements in a government procurement tender response involves showcasing your willingness to collaborate effectively with other organisations to deliver the best possible outcomes.

Here are some points on how to effectively demonstrate the use of partnering arrangements in your tender response:

• Thoroughly review the tender documents to understand the scope of the project and any specific requirements related to partnering arrangements or collaboration.
• Identify potential partners or company’s that could contribute complementary skills, expertise, resources, or capabilities to enhance the project’s success.
• Explain the strategic value of partnering arrangements. Highlight how these arrangements can bring synergies, accelerate project delivery, and increase the overall quality of outcomes.
• Describe any existing strategic alliances or partnerships you have established. Highlight successful joint ventures, consortia, or collaborations with other entities for similar projects.
• Detail how each partner brings specific expertise that complements the project’s requirements. Explain how these combined capabilities will lead to better solutions and results.
• Showcase how partnering arrangements help distribute risks more effectively. Explain how shared responsibilities and accountability can mitigate potential project challenges.
• Describe how partnering arrangements foster collaborative innovation. Highlight how diverse perspectives and collective problem-solving can lead to more creative and effective solutions.
• Explain how partnering arrangements enable efficient resource sharing. This could involve shared infrastructure, equipment, personnel, or technology, resulting in cost savings.
• Outline the roles and responsibilities of each partner in the collaboration. Clearly define how tasks, decision-making, and communication will be managed to ensure smooth operations.
• Describe the project management and governance structure for the partnering arrangements. Highlight how you plan to maintain open communication, resolve conflicts, and ensure alignment.
• Include case studies or examples of successful partnering arrangements from previous projects. Highlight specific outcomes achieved through collaboration.
• Articulate how the use of partnering arrangements aligns with the government agency’s goals. Explain how it leads to better value for money, improved project performance, and enhanced service delivery.
• Discuss your approach to engaging stakeholders in the partnering arrangements, including the government agency, local communities, and other relevant parties.
• Outline your long-term vision for collaboration and partnering arrangements beyond the scope of the current project. Explain how you aim to foster ongoing partnerships for continuous improvement.

Demonstrating a commitment to partnering arrangements involves not only explaining the concept but also illustrating how such collaborations have led to positive outcomes in the past and how they will contribute to the success of the current project.

These are just some of the trends that are likely to shape the future of government tenders and procurement in Australia. As the world becomes more interconnected and complex, government agencies will need to be agile and adaptable in their procurement practices. They will need to be able to quickly identify and respond to new opportunities and challenges – and your business will need to demonstrate these in its tender response.