In September, a new State Government pilot program called the Local Procurement program was launched at the 2019 Local Government NSW conference held at Warwick Farm. It was designed to increase direct contact between small businesses and councils by cutting red tape and simplifying the tender process. 

Now small businesses who were unable to compete with larger competitors for council tenders, have a real shot at securing them.

Minister for Small Business Damien Tudehope said the six-month pilot is a great opportunity for local businesses to tender for local government work and boost local economies.

“A toolkit has been developed to help small businesses win council contracts, while providing tips to local councils on how they can become more small business friendly,” Mr Tudehope said.

The pilot follows recent changes to the Local Government Act 1993 by the NSW Government to increase the threshold for tenders from $150,000 to $250,000. This has allowed councils to engage businesses directly without a tender process. 

The Local Procurement program is part of the Government’s Making Business Easier (MBE) initiative.  

This is good news for small business. With more opportunities to win work with Councils through simple quotes, they will save time and money when compared to going through a lengthy and involved tender process.

The Local Procurement Pilot provides tools to cut red tape and simplify the tender process for both small businesses and Councils. A more streamlined process means small businesses now have a better chance of securing Council contracts.

Councils need to follow many regulations that can make procurement complex for small businesses. They want to support their local small businesses to navigate procurement processes.

As part of the Pilot, the ‘Doing Business with your local Council: A guide for small businesses’ provides useful tips for Councils and outlines each step of the procurement process. 

There are also some useful and easy to use forms for small businesses to complete to ensure they are procurement ready.

The Local Procurement Pilot also includes a road map and other resources for Councils to make it easier for small businesses to win their work.

Learn more about the local procurement program.