Inquiry to help SA businesses in government procurement

South Australian premier Steven Marshall has made government procurement the focus of the new SA Productivity Commission’s first inquiry.

South Australian Premier Steven Marshall has made government procurement the focus of the new SA Productivity Commission’s first inquiry.

Mr. Marshall said the inquiry was part of the State Government’s commitment to implement reforms enabling South Australian businesses to better participate in government procurement.

Mr. Marshall said the Productivity Commission should focus on reform options to improve procurement practices, and the impact of procurement on local industry output and employment.

“The Productivity Commission has a critical role in getting the State Government’s finances and the South Australian economy back on track,” the Premier said.

“The Government’s first referral to the independent Productivity Commission sends an important signal to the business community that we are focused on making it easier for them to participate in government procurement.

“What we know is that the small business sector has indicated that the procurement process for goods and services is too costly and labour intensive.We want this issue addressed and improved.

“I expect the Commission will consult with a large cross section of small and medium South Australian businesses, the Small Business Commissioner, Industry Advocate, State Procurement Board, key business associations and industry representation as part of the public engagement process.”

Mr. Marshall said he has written to Productivity Commission chair Matthew Butlin to ask that the inquiry:

  1. Consider the time and costs associated with procurement.
  2. Assess the level of compliance by public authorities with the government procurement policies, guidelines, principles, standards and directions.
  3. Consider the appropriateness of procurement governance and reporting arrangements.
  4. Evaluate the effectiveness of the Industry Participation Policy.
  5. Examine the risk management framework used by public agencies to evaluate supplier bids.
  6. Consider contemporary procurement practice in other jurisdictions and the private sector.

The commission is due to hand its report to the government by May 2019.

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