The NSW government has launched a new government agency procurement policy which could benefit ICT SMEs.

As of July 1, government agencies will be required to seek at least one quote from a small-to-medium enterprise for contracts worth up to $1 million.

This comes as part of the changes to the Government's pre-qualification scheme.

Finance and services minister, Dominic Perrottet, said this would mean small businesses would have the potential to compete for in excess of a billion dollars' worth of government work each year. "Small businesses are the backbone of a sound and steady economy, and it is essential that governments do all they can to assist and support local enterprise. "These changes will allow SMEs to bid for all sorts of work with government departments, whether it is contracts for building and construction, ICT or other professional services."

NSW Procurement manages the procurement of goods and services for the NSW Government. Each year more than 16,000 NSW Government eligible customers spend around $15 billion on goods and services. Perrottet said recent procurement reforms had also provided more opportunities for small-to-medium businesses in rural and regional areas to gain. "Since 2011, we've introduced a number of changes to make it easier for businesses in regional NSW to gain work with the government," he said. "Under NSW Procurement's SME policy, government agencies located in non-metropolitan areas can purchase goods and services up to $5000 (including GST) directly from local suppliers, without having to go through whole-of-government contracts. "Not only does this help make it simpler and quicker for agencies to procure goods and services, but it also means that they are able to support local businesses in the communities they reside."

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