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

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Major projects

Building & construction

Supply of goods & services

Advanced technologies

Creative industries

Professional services

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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