“Winning a government contract can be life-changing for a small business. As all businesses know, there is no substitute for good customers,” said Bruce Billson from the Australian Small Business and Family Enterprise Ombudsman.
In the fiscal year 2021-22, the government and its entities awarded an impressive 92,303 contracts, valued at a staggering $80.8 billion.
Within these impressive numbers lies a significant share for small and medium-sized enterprises (SMEs), who secured approximately 55% of contracts by volume or 31% by value, totalling nearly $25 billion. Notably, SMEs accounted for $8.5 billion worth of work, representing 10.5% of all contracts by value.
Recent developments have sparked fresh interest in this landscape.
In August 2023, the ASBFEO launched an Inquiry to scrutinise the effects of reforms to Commonwealth procurement rules on small businesses. The subsequent release of an issues paper and extension of the deadline for public submissions has raised the curtain on a vital discussion.
If you’ve found yourself grappling with any of these issues (rest assured, you’re not alone), you’re in the right place. We’ll unravel these challenges, shedding light on each problem while providing practical solutions.
From enhancing your grasp of the SME government procurement process to widening your scope for work opportunities, we’re here to guide you.
So, let’s dive right in and address the first stumbling block that SMEs often encounter in government tenders:
Problem 1 – Difficulty in navigating the SME government procurement process
Education and training
Invest in workshops, training, and resources that help SMEs understand the procurement process, tender requirements, and documentation.
Consult experts
Seek guidance from consultants, legal advisors, or organisations that specialise in government procurement to navigate complex procedures.
Collaboration
Form partnerships with other businesses to share expertise, knowledge, and resources when preparing tender responses.
Problem 2: Limited awareness of SME government procurement opportunities
Networking
Actively participate in industry events, seminars, and workshops to build relationships with procurement officials and other stakeholders.
Online platforms
Regularly check government and industry-specific websites, as well as dedicated procurement platforms, for information on upcoming opportunities.
We’ve done the hard work for you – read our blog – Where to source and find tenders in Australia
Industry associations
Join industry associations related to your field; they often provide insights, newsletters, and updates about government tenders.
Problem 3: Limited work opportunities despite panel membership
Government panels are a short list of providers that departments can draw from to have work carried out up to a particular value.
Market diversification
Don’t rely solely on panel membership for business. Pursue opportunities from multiple sources to balance your workload.
Regular engagement
Proactively engage with procuring agencies to express your interest and inquire about upcoming projects where your expertise could be valuable.
Demonstrate value
Showcase your capabilities, track record, and unique selling points through your panel membership application and ongoing communications.
Problem 4: Lack of feedback on unsuccessful tenders
Feedback request
Politely request feedback from procurement agencies even if it’s not provided by default. This can show your commitment to improvement.
Open mindset
Embrace feedback, whether positive or constructive, as an opportunity to refine your approach, better align with requirements, and enhance your bids.
Continuous learning about SME government procurement
Regularly assess your tender submissions and incorporate lessons learned from feedback into future proposals.
If you want to go into more detail read our blog – What to do after an unsuccessful tender.
Problem 5: Costly insurances as barriers
Risk assessment
Evaluate each opportunity’s risk level and assess the actual necessity of expensive insurances. Avoid over-insuring for low-risk projects.
Collaborative insurance
Explore collaborations with other SMEs or insurance pooling initiatives to share the costs of insurance coverage.
Negotiate with insurers
Approach insurance providers to negotiate premiums and coverage based on the specifics of the project and your capabilities.
By addressing these challenges with proactive strategies, your SME can enhance their chance of success in the government procurement process.
As an SME, it’s important for you to approach the process with determination, continuous learning, and adaptability to overcome obstacles and secure valuable contracts.
How can Tender Evaluation help you with government procurement?
Leveraging the team at Tender Evaluation can significantly increase your chances of success. We provide a systematic and objective assessment of tender proposals based on the predetermined criteria. By utilising our process, you can ensure that your tender submission aligns with the expectations and requirements of the tendering authority.
Evaluators provide feedback on various aspects, including compliance, proof, technical capability, and overall quality. This feedback can help you identify areas for improvement and refine your proposal accordingly.