The content on this page and other DCITA document archive pages is provided to assist research and may contain references to activities or policies that have no current application. See the full archive disclaimer.
Final Report of the ICT SME Joint Industry Government Working Party - 2
Introduction
In June 2002, the then Minister for Communications, Information Technology and the Arts,
Senator the Hon Richard Alston, established an ICT SME Joint Industry Government Working
Party (the Working Party) as part of a package of measures to simplify the industry development
(ID) arrangements for Government procurement of ICT.
The package was the implementation of the Government’s 2001 election commitment to progress the ID arrangements for ICT procurement in consultation with the sector. A copy of the package can be found at Attachment A, with Senator Alston’s media release. The new arrangements eliminated the formal reporting and compliance obligations on multinational companies (MNCs) thereby helping to achieve the Government’s objective of creating an attractive and uncomplicated business environment for its ICT suppliers. The Working Party, a collaboration between industry and Government, was established to further enhance SME participation in the Government ICT procurement market.
Legislative and policy framework
A legislative and policy framework applies to Government agencies undertaking ICT purchasing as follows. Section 44 of the Financial Management and Accountability Act 1997 (the FMA Act) requires Chief Executives of agencies to promote the efficient, effective and ethical uses of resources to the greatest extent possible while complying with relevant laws. The Financial Management and Accountability Regulations 1997 (the FMA Regulations) provides for the Minister for Finance and Administration to issue guidelines on procurement related matters—the Commonwealth Procurement Guidelines (CPGs). The FMA Regulations also provide for other Government policies to apply to procurement activities.
The CPGs articulate the Government’s expectations as to how all departments and agencies subject to the FMA Act will perform their duties in purchasing goods and services, including ICT. The CPGs, while requiring agencies to ensure that SMEs have appropriate opportunity to compete for business, establish that the core principle underpinning Australian Government procurement is the achievement of value for money which includes an analysis of all relevant costs and benefits of each proposal throughout the whole procurement cycle.
Within this procurement policy framework, the Working Party was to act as a central ‘clearing house’ for activities to help ICT SMEs access a greater share of the Australian Government ICT market, establish alliances with key players in the industry and locate the Government information they require. The Working Party was also to identify solutions and measures to address inhibitors to SME participation in Australian Government contracts and act as a communication channel between industry and Government on Government ICT purchasing issues.
Background
Many of the issues examined by the Working Party have been the subject of a number of inquiries and reviews in previous years. Further background is at Attachment B.
On 4 October 2001, Senator Alston released an Action Plan addressing inhibitors to SME participation in Australian Government IT outsourcing contracts. The Action Plan was developed following extensive industry consultation, and forms part of the Government’s response to the Humphry Review—the IT outsourcing industry development requirement.
It was not the Working Party’s intention to go over ‘old ground’ and it was not tasked to examine these former reports. Rather, its main focus was on further enhancing SME access to the Australian Government ICT market within the existing procurement framework.
1. Working Party operations
Industry membership of the Working Party was drawn from the Australian Computer Society
(ACS), the Australian Electrical and Electronic Manufacturers’ Association (AEEMA), and the Australian Information Industry Association (AIIA). A list of members of the Working Party, a schedule of meetings held and members’ attendance is at Attachment C.
The Working Party met 17 times. All meetings were held in Canberra and secretariat support was provided by the Department of Communications, Information Technology and the Arts (DCITA).
A number of consultancies assisted the Working Party. These were:
- Mr Jack Radik, who prepared a working paper identifying major procurement issues and options for action;
- LODESTAR Management Services, who assisted with the drafting of Selling ICT to Government: A guide for SMEs; and
- Intermedium, who researched and analysed the extent of SME involvement in Australian Government ICT purchasing contracts.