NSW Government procurement policy improved to encourage innovation

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.”