Economic development, social outcomes and sustainability
- In every procurement, you need to follow government policy on promoting economic development, social outcomes and sustainability.
- This means giving all suppliers a fair go, while respecting the interests of each of them.
- You must also integrate sustainability principles into every procurement.
- A sustainable economy is built on supplier diversity and SME participation so we have requirements for doing business with SMEs, regional business, Aboriginal enterprises and Australian Disability Enterprises.
Importance of sustainability
You must always do your best to spend public money wisely. This means you should seek out innovative solutions and efficiencies, buy only what you need and source sustainable alternatives wherever you can.
Sustainable procurement also means giving suppliers a full and fair opportunity to compete. You should respect the interests of each of them, keeping the rule of law and human rights, such as modern slavery, top of mind.
Support SMEs and regional businesses
As part of our commitment to promoting economic development, social outcomes and sustainability, we’ve created the SME or Regional First initiative. This aims to support small and regional suppliers – particularly those affected by drought.
The program makes it easier for you to award contracts up to $50,000 to small businesses (those with up to 19 full-time staff).
We also ask you to first consider awarding contracts valued up to $250,000 to small or medium-sized businesses (fewer than 200 full-time staff), before you consider large businesses.
On top of this, we've introduced payment terms that should ensure small businesses get paid for most invoices within 5 days.
Encourage groups of businesses
You must be open to flexible collaborations between suppliers. Encourage SMEs to form partnerships, joint ventures or consortiums where it will create greater efficiency or lead to a better result.
You can connect buyers and sellers through the Industry Capability Network. The ICN helps source local components and services for large projects. You can also use it to find local suppliers for major projects.
To meet our environmental, ethical and socio-economic requirements, you must integrate sustainability principles into all your procurement initiatives.
You should encourage skills development and diversity in supply chain sourcing. We expect our suppliers to provide a fair and ethical workplace and to make all reasonable efforts to ensure businesses within their supply chain don’t engage in, and aren’t complicit with, human rights abuses as forced or child labour.
Encourage supplier diversity
To encourage supplier diversity, we’ve launched initiatives that encourage you to engage Aboriginal businesses.
You can buy goods and services valued up to $250,000 from a recognised Aboriginal business, so long as its costs are in line with market rates and it supplies a written quote.
We’ve also made it easier for you to foster apprenticeships and contract with enterprises that employ people with a disability.