Small and Medium Enterprise and Regional Procurement Policy
Update history
New policy comes into effect from 1 July 2021.
The Small and Medium Enterprise (SME) and Regional Procurement Policy has been refreshed following a review process.
The policy aims to increase the participation of SMEs and regional business in government procurement of goods and services.
Measures under the refreshed policy include:
- agencies may directly negotiate with and engage an SME or regional supplier up to $150,000, even if there is a whole-of-government arrangement in place
- for procurements up to $3 million, agencies must first consider buying from an SME where direct procurement is allowed, including prequalification schemes and panels
- for procurements valued at $3 million or more, agencies must include in the non-price criteria as a minimum:
- 10% allocated to SME participation
- 10% allocated to support for the NSW Government’s economic, ethical, environmental and social priorities
- for contracts over $3 million, suppliers must submit an SME and local participation plan and report on these commitments quarterly.
NSW Government's policy to support small and medium enterprises and regional businesses through government procurement.
To better support regional businesses affected by bushfires and drought, from 1 January 2020, the 'SME First' requirement under the Policy has been expanded to the 'SME or Regional First' requirement.
Under the 'SME or Regional First' requirement, agencies must first consider purchasing from regional businesses for procurements up to $250,000 in regional areas.
If the procurement is not in a regional area, then the agency must first consider purchasing from an SME. This requirement applies to goods and services procurement excluding construction.
The SME and Regional Procurement Policy aims to make it easier for SMEs to supply to government.
The NSW Government has announced a new SME and Regional Procurement Policy which replaces the SME Policy Framework.
The policy applies to all new government goods and services procurement activity, excluding construction, from 1 February 2019. Extensions to contract arrangements in place before this new policy are exempt.
Initiatives under the SME and Regional Procurement Policy include:
- Giving SMEs a voice through a new feedback tool
- Making it easier to buy from small businesses for values up to $50,000
- Making it easier to buy from SMEs for values up to $250,000
- Making it easier to engage SMEs to do proof-of-concept testing or outcome-based trials valued up to $1,000,000
- Considering SME participation in all procurements valued above $3 million through a new evaluation criteria.
For more information please contact the NSW Procurement Service Centre on nswbuy@treasury.nsw.gov.au or 1800 679 289