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The NSW government has upped its innovation procurement threshold from $250,000 to $1 million. This threshold is designed to encourage the participation of small and medium enterprise in trialling innovative solutions to problems in government.
The $1million threshold applies to proof-of-concept testing or outcome-based trials. After the trial period, the process reverts to the normal tender process. However, Genesys sees this as a positive step for start-ups or companies with innovative technologies that need to get that vital first contract to prove their value.
Genesys CEO Geoff Sizer says this is a welcome return to earlier days when the NSW government would form relationships with companies to develop innovative solutions to solve problems. Genesys benefited from this with the Police and Roads & Traffic Authority.
“However, these arrangements were all squashed during the corruption scandals of the 1990s which resulted in an inflexible tender-based procurement process. Lifting the threshold to $1 million means some serious work can be done to develop new technologies for the benefit of the community.”
More information on the innovation procurement threshold can be found on the NSW ProcurePoint website.