SME and regional procurement: making it easier to do business in NSW

| February 3, 2019

Small, medium and regional enterprises will find it easier to do business with the NSW Government under a major procurement policy launched on Friday (1 February).

Martin Hoffman, Secretary of the Department of Finance, Services and Innovation, said the new Small and Medium Enterprise and Regional Procurement Policy will ensure the procurement process is easier for small and medium businesses to navigate.

“We have consulted with small businesses and across Government to deliver a policy that includes a sustainable development focus and encourages a diverse supplier base,” Mr Hoffman said.

The policy encourages Government agencies to prioritise small and medium businesses when considering suppliers and setting a standard for contracts to consider economic, ethical, environmental and social priorities. Where an agency can purchase directly from a supplier, agencies must first consider engaging SMEs for contracts of up to $250,000.

For larger contracts over $3 million, a new SME and Sustainability Criteria will apply. This requires agencies to include a minimum 15 per cent of the non-price evaluation criteria that considers how potential suppliers will support the government’s economic, ethical, environmental or social priorities. Of this, at least 10 per cent must be allocated to SME participation.

The Policy also includes a continuation of the Procurement Innovation Stream. This allows agencies to directly engage an SME for proof-of-concept testing or outcome-based trials for values up to $1 million.

Improved resources, support and feedback mechanisms will be available to SMEs and regional businesses to increase participation in government procurement.

The Policy will be effective from 1 February 2019 and replaces the current NSW Government SME Policy Framework. For more information on government procurement and to access the NSW Government Small and Medium Enterprise and Regional Procurement Policy, visit