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Procurement and industry development
The Australian Government has in place a number of policies to facilitate the development of the ICT sector through Government procurement practices. The Government recognises that the public sector is a key market for many Australian information industry SMEs, and a valuable means for demonstrating their credentials and experience. This can help them enter other markets, both domestically and overseas.
The ICT procurement-related industry development policies are implemented by Government agencies in accordance with the Financial Management Act 1997. The 
Commonwealth Procurement Guidelines issued by the Minister for Finance and Administration under Regulation 7 of the Financial Management and Accountability Regulations 1997 require officials undertaking procurement to ensure SMEs are not unfairly discriminated against, that procurement processes are communicated to and accessible to SMEs, and that SMEs have appropriate opportunities to compete for Government business.
ICT specific procurement policies include:
- SME Participation in major Australian Government ICT procurements. This policy provides for levels of SME participation for contracts over $20 million. The policy provides for base SME levels of 10 per cent of hardware and 20 per cent of software and services.
- Management of intellectual property in Government ICT purchases. Agencies are encouraged to only acquire the IP necessary for achieving their corporate missions and to be alert to opportunities for financial savings.
- Capping suppliers' liability in ICT contracts. The Australian Government’s new ICT liability policy was introduced in August 2006—see Finance Circular 2006/03 . The liability of ICT suppliers contracting with agencies should, in most cases, be capped at appropriate levels. Unlimited liability should only be required when there is a compelling reason. To support this, a Guide to limiting supplier liability in ICT contracts with Australian Government agencies (File size: 1Mb), and a Quick reference to limiting supplier liability in ICT contracts with Australian Government agencies (File size: 234Kb) to the guide, which summarises the key points.
- IT Outsourcing Initiative. The former IT outsourcing contracts included requirements for contractors to carry out and report on specific industry development commitments.
- Voluntary Strategic Industry Development Guidelines which encourage multinational firms supplying ICT goods and services to the Government to engage actively with local Australian ICT businesses.