The Queensland Government introduced a new procurement policy which came into effect on 1 September 2017 which will provide a significant advantage to local suppliers looking for Queensland Government procurement opportunities. Government agencies have until the 1 March 2018 to fully implement the new policy.
Through this policy the Queensland Government has committed to putting Queenslanders first when securing value for money by ensuring that value for money reflects more than simply the lowest price.
They will assess cost and non-cost factors and will also pursue opportunities to advance economic, environmental and social objectives. They have committed to giving local Queensland suppliers and small businesses full, fair and reasonable opportunity to become a supplier to the Queensland Government. This is fantastic news to local suppliers - in particular small businesses who previously may not have been considered for these opportunities.
What has Changed
The specific changes the government is introducing to support these principles are as follows:
- Applying a local benefits test to all significant procurement as part of the value for money assessment (see our recent post on this)
- Greater consideration will be given to non-cost factors such as fitness for purpose, quality, delivery, service, and support to advance government objectives
- Ensuring that for each opportunity at least one Queensland and one regional supplier (where possible) is invited to submit a quote or tender
- Increasing opportunities for apprentices and trainees in significant Queensland Government infrastructure projects worth $100 million and above
- Requiring the use local contractors and manufacturers (where possible) in significant projects valued at $100 million or above
- Enabling procurement outside of common-use supply arrangements for regional and remote locations
- Increase government procurement with Aboriginal and Torres Strait Islander business to three percent of addressable spend by 2012
- Doubling the ICT QAssure pre-qualification exemption to $1 million
- Increasing the Prequalification (PQC) system threshold to $1 million for contractors and $60,000 for consultants
- Making it easier for suppliers to find information about upcoming procurement opportunities by developing Forward Procurement Pipelines.
A 'significant procurement' includes goods and services identified by the government agency as being of high expenditure and/or for which there is a high degree of business risk.
A local supplier is defined in the policy as a supplier of goods or services that maintains a workforce whose usual place of residency is located within a 125 km radius of where the good or service is to be supplied. If a suitable local supplier does not exist within 125 km, consideration will be given to suppliers within the local region.
Recommended Steps to Winning
We recommend the following steps to make the most of this new procurement policy if you are a local Queensland supplier:
- Read the available resources on the new procurement policy
- Identify government agencies within 125 km of your existing location
- Register on Qtenders and review the forward procurement pipelines for opportunities with those agencies
- Make sure you understand and can answer the question about where your workforce usually resides (where you sleep, eat and live)
- Where you identify a relevant procurement (tender, contract), develop your value proposition as to how you deliver local benefits to the local area - these might not necessarily be your location
- Where possible meet with the agency long before the tender is published to let them know about your capabilities
- Where necessary lobby for a local benefits test to be included in the procurement
- Bear in mind that even if you are local you still need to offer value for money and be capable of fulfilling the contract
If you are not a Queensland supplier you will need to identify local sub-contractors and suppliers within 125km of the location of the opportunity who can help you deliver the contract and at the same time deliver local benefits. Once you have identified and qualified the best local sub-contractors and suppliers we would recommend entering possibly an exclusive partnership agreement.