May 2014 Issue 93

Simpler federal government tender process

B2B Editor1 May 2014

The federal government tendering process can be daunting and time consuming. Under new initiatives announced by the government, the process to bid for Commonwealth Government contracts is getting simpler.

To get government and industry back to doing business, the Commonwealth Government is cutting complexity, eliminating repetition, and reducing unnecessary contractual burdens.

As part of a number of measures, business of all sizes will soon find it much easier to supply their products and services to Government with the new Commonwealth Contract Suite – a suite of documents providing a simplified and consistent bidding process for contracts under $200k.

Standardised terms and conditions, combined with user-friendly and intuitive online templates will remove the need for legal advice and other associated costs.

The new low risk grant template will include a standard set of 20 terms and conditions covered in two pages. This compares with a regular grant template that can stretch to 50 terms and conditions and up to 50 pages. Government agencies will be encouraged to talk to potential suppliers during the tendering process.

The Federal Government is also making it easier for small businesses to be paid. With the introduction of a new policy, credit and debit cards will become the Government’s preferred payment option for purchases under $20,000.

These initiatives will be operational from 1 July 2014. They are part of the parliamentary repeal days to cut unnecessary and costly legislation and regulation. and in-line with the Australian Government’s plan to cut $1 billion in red tape every year.