Government procurement represents a significant economic opportunity for Australian businesses, but access to public sector contracts often depends on factors that extend well beyond the tender process itself. As Queensland introduces measures designed to increase procurement opportunities for veteran-owned businesses, understanding how government buying decisions are made becomes increasingly important for suppliers seeking to participate. This article explores the practical realities of government procurement, including the role of supplier panels, industry engagement, relationship building, compliance requirements and contract delivery, providing insights into how businesses can position themselves to compete more effectively within a rapidly evolving procurement landscape.
With the arrival of the Queensland Government’s veteran procurement policy, for many small businesses, government procurement can feel like a closed shop, reserved only for those in the know. There is a perception that it’s too complex, bureaucratic and difficult to break into, but the barriers are often less about capability and more about how the system works.
CEO of Purpose Procurement, Michelle Creevey, who has spent more than a decade working at the procurement coalface inside one of the world’s largest defence primes Boeing, says success is rarely about simply lodging a tender. A tender is often won well before that entry point through relationships, positioning and a clear understanding of how those decisions are made.
OpOz asked Creevey the best ways to secure that winning bid for the new procurement opportunity open to veterans.
Start with panels, not major tenders
For businesses looking to enter government supply chains, many believe they have to focus on big tenders, but conversely Creevey advises that panels are often the way to get your foot in the door.
Panels are pre-approved supplier lists, and therefore offer an entry point for government to engage with businesses more efficiently, as terms, conditions and pricing structures are already agreed.
While being on a panel does not guarantee work, it does provide a pathway into the system and creates opportunities for engagement that would otherwise be out of reach. From that point business development should become the priority, Creevey says.
Cold calling, or tendering, is an unlikely way to win
A common misconception among small businesses is that procurement is primarily driven by submissions, but in reality relationships play a critical role long before the tender is released.
“Just responding to a cold tender in most instances will not be successful, so you need to know the department in terms of what the procurement team is looking for and how they operate,” Creevey said.
If businesses want success, they must understand which departments are buying particular goods and services, identify the relevant procurement teams and engaging early can make a significant difference. By the time a tender is released, decision makers are already familiar with the market and the operators within it.
Ms Creevey recommends some practical ways to build that visibility to the decision makers:
- Attend industry briefings
- Local government information sessions
- Networking events
- Contract writing workshops
- Meet with tier one contractors (as they often sub-contract to SMEs).
“The tier one contractors that are delivering are at those sessions, and those tier ones are working right across Queensland government infrastructure,” Creevey said. “So, going to those networking sessions and meeting the leading contractors is a really great thing to do because no small business will ever get contracted for large programs of work.”
Know your value beyond price
Cost is an important factor in the procurement process, however government tenders increasingly asses both financial and non-financial criteria. This creates an opportunity for small businesses to differentiate themselves through their broader value proposition and social outcomes, such as:
- Ownership structure
- Community impact
- Workforce composition
- Veteran ownership
- Indigenous ownership
- Women in business
- People living with a disability
- Or are you a supporter of these sectors?
These are not peripheral, Creevey explains, but are embedded within procurement processes and should be clearly articulated in any submission.
Don’t overinvest in first bids
Another challenge for businesses is knowing how much to invest in their early tender responses as there is often temptation to over-commit time and resources in the hope of securing an initial win.
“I would never suggest that a small to medium business over invest in that because the first couple of responses, the likelihood of your win, unless you’re in a niche industry and you’re really strong as a company, your bid-win rate is probably going to be lower in the first couple of runs,” Creevey said.
A more effective approach is to allow early bids to be a part of an early-learning process. This enables businesses to build a library of materials, including capability statements and template responses, while developing a clearer understanding of compliance requirements.
Many unsuccessful bids fail not because the business lacks capability, but because submissions are incomplete or non-compliant.
Missing documentation, failing to address key elements of the statement of work or misunderstanding requirements can prevent a bid from being properly considered.
Don’t set yourself up to lose your win
Securing a government contract for the first time marks an important milestone for a business, both for the win and for beginning a new phase that is unfamiliar. Execution of that contract is where the hard work begins, and requires a detailed understanding of the obligations, including service agreements, reporting requirements and key performance indicators.
Ms Creevey says one of the most common mistakes is launching into delivery without taking the time to unpack how you will meet the terms of the contract. Businesses must understand how they will deliver, what the obligations are and who in the team has responsibility for those.
“A great thing to do is to establish what’s referred to as a RACI, which is a table that says who’s responsible for doing the work, who’s accountable for signing off on it, who needs to be consulted, and who needs to be informed [internally and externally],” Creevey said. “So just stopping for one or two days and having intentional discussions as a team about what this looks like, and then taking that back to your client and saying, have we got this right?”
Taking time at the outset to align internally and externally with the client can prevent issues down the track. Without that clarity, businesses risk falling behind reporting requirements or failing to meet KPIs just because the safeguarding systems were not originally put in place.
Procurement is about people, not paper
Procurement is often viewed as a process driven by documentation and compliance, but while they are important, businesses should never rely on those skills alone to determine a successful outcome. Ms Creevey says the procurement process is a lever for strategy and positive change in the organisation, it comes down to aligning people with the process and the policy.
“We all have the contracts, but contracts are a piece of paper, they’re not the deliverable and they’re not the execution. The execution is done by people,” Creevey said. “That’s why I say stop and think about the contract in writing then make sure all the parties are aligned on what the true execution intent of that contract is, because it’s the people who are going to be doing the work.”
Strong relationships underpin an effective delivery, so it’s vital to create an environment where expectations are clear, communication is open and issues can be addressed early to ensure success. The most effective supply chains operate as partnerships rather than transactional arrangements, with trust, alignment and shared objectives enabling the successful delivery of those contracts.
So while procurement may start with policy, process and paperwork; it ultimately succeeds or fails with people.
