Small and Medium Enterprises Policy Framework

The NSW Government Procurement: Small and Medium Enterprises Policy Framework is a key NSW Government procurement reform. This policy improves access by small to medium enterprises (SMEs) to government goods and services procurement by opening up opportunities. It supports competition and reduces the administrative burden on SMEs.

The SME Policy Framework aims to maximise opportunities for SME participation in government procurement. Developed through consultation with industry and agencies, it provides significant enhanced support by:

  • Increasing direct opportunities for SMEs to gain government business - mechanisms include SME targeted supplier panels and prequalification schemes, and government exemptions to purchase goods and services directly from SMEs, regardless of some existing government contracts.
  • Providing greater accessibility for SMEs to government procurement opportunities, such as simpler contracts and contracting processes, SME opportunity statements and SME participation plans.
  • Removing or minimising, where possible, barriers to government procurement opportunities. 

The SME Policy Framework will be implemented progressively as part of the reform of government procurement.

Benefits of the SME Policy Framework

NSW Government agencies will benefit through better service delivery and better value for money.

SMEs will benefit through the provision of simpler and easier ways to effectively access opportunities to supply goods and services to Government.

Agencies and industry will benefit through a more open, transparent process for business to engage with Government, the provision of online tools to support their procurement activities and a procurement landscape that allows for greater competition and innovation in service delivery outcomes.

View the Small and Medium Enterprises Policy Framework
View a Summary of the Small and Medium Enterprises Policy Framework

SME Opportunities Statement

All agencies need to be aware of the impact their procurement action will have on Small and Medium Enterprises (SMEs). Accordingly, agencies will usually prepare an SME Opportunities Statement during the procurement planning stage.

The SME Opportunities Statement identifies the suitability of the procurement for SMEs and the opportunities it presents for them. This includes SMEs as direct suppliers to government or as part of the supply chain providing goods and services to government.

View the SME Opportunities Statement.

SME Participation Plans for large contracts

SME Participation Plans are required for contracts valued at $10 million and above. Tenderers will need prepare SME participation plans to show how their tender will support local industry, including jobs, skills and capability development.

View the SME Participation Plan.