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Build awareness
Create opportunitiesInitiate change
Objectives
• Ensure procurement reforms provide andeconomic benefit to the State and local businesses.
• Remove unnecessary barriers and costs associated with Government tenders
• Increase the number and diversity of locally based companies winning Government contracts
State Government Expenditure
• Never before has the spotlight been so firmly on
the role of procurement and what it can deliver
the State.
• The total procurement spend (excluding
employee expenses) was estimated to be
$7.5bn across 18 agencies, including SA Water
but not other State owned authorities.
Overseas 2.6%
Metropolitan Adelaide 55.4%
Other Australian States/Territories and New Zealand 33.2%
Regional SA 8.8%
The proportion of contracts public authorities entered into during 2012-13,
categorised by supplier location:
State Government Expenditure
• Clearly the governments procurement strategies can play
an important role in stimulating the economy and creating
jobs in the private sector.
• This large purchasing power also has the capacity to shape
incentives and firm behaviour, and can be a significant
‘demand side’ source of growth in innovation.
• This can be through capital projects, goods and services
but also through outsourcing some government functions.
Procurement and productivity improvements
• Have procurement functions and arrangements that endure
across budgets, agencies and MOG changes
• Encourage cross agency collaboration to deliver integrated
portfolio outcomes
• Implement a category management approach versus and
agency centric approach.
• Drive value for money by thinking through the strategies to
achieve desired outcomes
• Challenge existing ways of working and employ flexible and
responsive approaches that provide fit-for-purpose
solutions and drive innovation and better outcomes across
categories
Price versus Value – there is a difference
“Price is what you pay. Value is what you get.”
Warren Buffett
Connecting with Business – Tender Ready
The Handbook covers some fundamental questions:
• Does it fit your organisation’s strategic or business plans?
• Can we afford to win?
• Can we afford to tender?
Connecting with Business – Tender Ready
Including how to:
• Plan and manage the tender process
• Develop a winning bid
• Plan and manage the tender process
• Assess and manage risks
• Determine your pricing strategy
• Review your tender documentation
• Plan the production of your tender
• Presentation
Connecting with Business
•Employment, investment and supply-chain inputs are now
key drivers of economic contribution from procurement.
•Industry Participation Plan weightings in the key categories
of the economy: heavy and civil engineering construction;
professional, scientific and technical services; non-residential
building construction; and electrical equipment
manufacturing, now receive a minimum weighting of 10%
Connecting with Business
From 1 July 2014 of an employment contribution test will apply for
all contracts between $22,000 and up to $4 million in metropolitan
Adelaide and $1 million in regional South Australia that will
determine the following:
– For the primary contract; are the goods and/or services available within the
State or region? If so what is the number of FTE South Australian jobs
associated with the primary contract?
– For any secondary contracts of significant value to the primary contract; are
the goods and/or services available within the State or region? If so what
are the number of FTE South Australian jobs associated with the secondary
contract?
Meet the Buyer Events
• Building, Construction & Civil Engineering• Goods & Services• Professional Services• Creative Industries• Information Communication Technology
Procurement and productivity improvements
• Can stimulate economic activity in regional and remote areas
by ensuring that WoG procurement initiatives allow for local
participation
• Ensure CEs and leadership teams consider implementation of
WoG procurement reform as a strategic platform within their
Agencies
• Design structures and operations which encourage
relationships that improve customer engagement
• Embed category management at a portfolio level to provide
strategic over-sight, exploit industry knowledge and build
specialist expertise
Engagement
Framework
Industry Participation Taskforce
Inn
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Leve
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Major projects
Building & construction
Supply of goods & services
Advanced technologies
Creative industries
Professional services
Industr
y A
dvis
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Panels
THANK YOUwww.dpc.sa.gov.au/office-industry-advocate
Ian Nightingale
Industry Participation Advocate
Procurement can become an economic lever for the State