SMEs supplying ICT
The Queensland Government runs a small to medium enterprise (SME) participation scheme policy to help more SMEs supply ICT to government agencies.
We regard SMEs as businesses employing fewer than 200 people. This includes micro-businesses with less than 5 employees.
The ICT SME participation scheme policy* ensures:
- that priority is given to Queensland SMEs to supply to the government, increasing opportunities to contribute to the official Queensland SME Procurement target
- the Queensland Government can directly engage SMEs using the SME and Indigenous Access incentive to provide solutions worth up to $500,000 (including GST) that demonstrate value for Queensland in addressing government priorities.
Read the ICT SME participation scheme standard for more on the SME and Indigenous Access incentive.
*Note: All Queensland Government agencies must apply the ICT SME participation scheme policy when procuring ICT products and services.
Requirements for SMEs
You will need to participate in our assessment processes to supply ICT to the Queensland Government.
The process will depend on whether we approach the market informally by obtaining quotes or formally through a full tender process and Invitation to Offer (ITO).
Requirements for government
When we are approaching the market informally, we must demonstrate that we have undertaken a market assessment to identify appropriate SMEs by obtaining offers from at least one Queensland SME for new procurement opportunities up to a value of $250,000 (incl.GST) where practical.
Approaching the market formally
All formal tenders must include the relevant questions confirming supplier SME status in their Response Schedules.
During offer evaluation, we must allocate 10% of the 100% total evaluation criteria for the purpose of weighting Queensland SMEs vs non-Queensland SMEs.
If you are a Queensland SME, you receive the full 10% allocated.
If you aren't an SME or a Queensland SME, you receive 0%.
If you are a prime contractor engaging Queensland SME sub-contractors to deliver the work, you can receive a portion of the 10% weighting depending on their level of SME participation.
The weighting you receive is calculated on the net proportion of the contract which is to be paid to Queensland SMEs.
You can check whether the policy has been applied by asking the tendering agency 2 questions:
- Did you apply the SME participation scheme policy?
- What SME weighting did I receive?
Requirements for prime contractors
We audit prime contractors and can engage in a withholding process if SME participation requirements are not honoured.
Audit process
Under this policy, our contract managers must verify that the contracted payments have been made to Queensland SME suppliers. They will do this by:
- accepting the prime contractor's assertion of payment
- requesting proof of payment
- auditing the prime contractor's financial records.
If you subcontract to a larger vendor, at bid time, you will need to ensure that their response includes your contribution to the overall cost of the project.
Non-compliance will be reported to ICTCMS@chde.qld.gov.au.
Withholding process
Prime contractors who have not met their contracted Queensland SME participation levels may be subject to contracted liquidated damages by withholding a proportion of the final payment.
Contact us
Contact ICT Strategic Sourcing by emailing ICTCMS@chde.qld.gov.au.
Also consider...
- Read the ICT SME participation scheme policy and the standard that provides guidance for agencies on the scheme.
- Read the Procurement and disposal of ICT products and services policy – Information Standard 13, which Queensland Government agencies must comply with when buying ICT products and services.
- Learn more about the benefits for SMEs in the Queensland Procurement Policy.
- View our webinar on procurement for government contracts for information about the tendering process and how to write a competitive bid.