The NSW Government has today signed a Ministerial Direction aimed at boosting government procurement of goods and services from small and medium businesses.
The new direction increases the level at which government departments and agencies can purchase goods and services directly from small and medium businesses from $150,000 to $250,000.
Minister for Domestic Manufacturing and Government Procurement, Courtney Houssos the move was the first step of the NSW Government’s planned reforms to support small businesses, local content and domestic manufacturing.
Each year, the NSW Government spends over $9 billion on goods and services obtained directly from 46,000 small and medium businesses in NSW and this change to procurement will deliver more government contracts going to these businesses and a bigger slice of government procurement spend, she said.
This Ministerial Direction was issued to the NSW Procurement Board and requires agencies to implement this policy change no later than 31 December 2023.
It also serves as an important signal to government agencies to directly engage small businesses when procuring goods and services, including for:
- catering, food and beverage services at state-owned museums, galleries, venues and sites
- office supplies and furniture for government offices and buildings
- maintenance and repairs, including ground maintenance and landscaping at government facilities
- the development of training resources, including for health and wellness support.
The Government has also eased procurement requirements for small businesses which will no longer be required to submit proof of insurance when they tender. Instead, proof of insurance will only be required when a contract is awarded.
“Small businesses are the backbone of the NSW economy and it’s only right that the NSW Government use small businesses to deliver goods and services that the state requires,” said Premier, Chris Minns.
“The NSW Government purchases around $40 billion worth of goods and services each year. The bigger we can make the slice that goes to small businesses, the better.
“Small and medium businesses have been through a very tough time over the past few years, the very least the government should do is make accessing government contracts simpler and easier.”
For more information visit buy.nsw.
