Ombudsman launches Inquiry into Commonwealth Procurement

Olivia Pearce — Wed, 29 Mar 2023 22:41:33 +0000

Ombudsman launches Inquiry into Commonwealth Procurement Olivia Pearce Thu, 03/30/2023 - 09:41

30 March 2023

The Australian �Թ�� and Family Enterprise Ombudsman Bruce Billson has launched an Inquiry to examine the impact of reforms to Commonwealth procurement rules on small business.

The Inquiry was referred to the Ombudsman by the Minister for Finance, Katy Gallagher.

In 2021-22, the Australian Government awarded $80.8 billion in procurement contracts, of which 30.8% or just under $25 billion by value, was awarded to small and medium sized enterprises.

“It’s great to see the Australian Government’s commitment to be a bigger customer for small businesses,” Mr Billson said.

“But for many small and family businesses, identifying and securing Commonwealth procurement contracts can be complex, costly, confusing and time-consuming.

“Supporting the opportunity for small and family businesses to compete for and fully participate in supplying the goods and services the Australian Government needs helps to ensure full value for money, vitality in the economy, support for local businesses to scale and can enable innovation.

“Where there are procurement impediments, it can diminish opportunities to encourage entrepreneurship and competition and means the taxpayer and the nation may not be getting the most value for money.

“It is timely to examine how the system is working for small and family businesses, the role procurement rules are playing to support small business participation and what lessons and improvements can be made.

“We want to identify those departments and agencies who are exemplars in providing procurement opportunities to small businesses and celebrate this success and help others to emulate it.

“Similarly, we seek to shine a light on those whose dealings with small business are poor.”

The Ombudsman will review the implementation of the 1 July 2022 changes to Commonwealth procurement, and the impact these changes have had on small businesses that participate in Commonwealth procurement activities.

The Ombudsman intends to release an issues paper and invites written submissions from small businesses and other interested parties which should be sent to inquiries@asbfeo.gov.au by 1 July 2023.

A final report with recommendations will be given to the Australian Government in December.

Mr Billson said the review will seek to identify additional changes to Commonwealth procurement rules and processes to boost small business participation.

The review will also examine the effectiveness of AusTender, the Commonwealth Contracting Suite, methods for identifying small businesses, and other measures to enable small businesses to join together to bid for larger and multi-faceted contracts and how accessible rolling short-listed provider ‘panels’ are for smaller businesses.

Mr Billson said a particular concern frequently raised by small businesses was how to know about, and tender for, government contracts.

“We want to look at what support is given to small businesses to navigate what can be a complicated procurement process,” he said.

“In some cases, small businesses are deterred by a feeling there is a ‘closed shop’ while in other cases they simply don’t know about the opportunities available, or the size of the contract can be simply too big.

Mr Billson said he particularly wanted to determine whether capacity-building contracts were being offered that would enable smaller businesses to really benefit from the contracts to grow their business.

Terms of Reference.

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Everyone’s a critic, but small businesses need kindly customers

Donna Acioli — Mon, 17 Jan 2022 01:45:39 +0000

Everyone’s a critic, but small businesses need kindly customers Donna Acioli Mon, 01/17/2022 - 12:45

17 January 2022

Everyone’s a critic, but small businesses need kindly customers

The Australian �Թ�� and Family Enterprise Ombudsman Bruce Billson is urging people to refrain from posting negative online reviews, as short-staffed small businesses struggle to stay open.

Mr Billson says many small businesses are working hard to keep their doors open and their employees and customers safe, as we learn to live with Covid.

“Small businesses are doing their best to serve their communities, despite the challenges that come with having staff in isolation and supply chain disruptions,” Mr Billson says.

“The best way to support small businesses is to be a kindly customer – patient and understanding, with good and generous intent. Small businesses are run by real people who deserve our respect and empathy.

“Negative online reviews can be devastating for a small business, particularly those that are struggling to recover from tough couple of years. So just put the phone away. Resist the urge to give that unfair one-star review.”

The Ombudsman’s comments about the lasting and damaging impacts of negative online reviews, follows a submission to the Federal Government’s social media inquiry calling for digital platforms to make it easier to remove fake reviews.

“Our office has assisted more than 30 businesses dealing with fake reviews in recent years,” Mr Billson says.

“These so-called reviews hurt business reputations and cause significant distress to staff and business owners.

“Unfortunately, small businesses have few avenues for recourse when a fake review is posted, which is why there needs to be a transparent review system in place.

“In the US, Google acted to protect the interest of the investment application Robinhood by removing hundreds of thousands of fake reviews on its Google Play Store. We believe small businesses should be afforded similar protections of their interests.

“We recommend digital platforms build tools to prevent fake reviews and be clear about the evidence small businesses need to provide to have fake online commentary reviewed and removed.

“Small business owners are under enormous strain as they work get their businesses back on track. Fake reviews are contributing to those mental health pressures. Digital platforms should be doing more to support the small business community.”

Review

Ombudsman launches Inquiry into Commonwealth Procurement

Everyone’s a critic, but small businesses need kindly customers