How to Secure Federal Contracts: A Guide for Recruitment Agencies

The federal government’s procurement rules, launched in mid 2024, enhance access to government contracts for small-to-medium recruitment agencies significantly. For recruitment agencies, especially those that are women-led or Indigenous-owned, these updated procurement rules present significant opportunities. By understanding the rules, leveraging available exemptions, and adopting best practices, agencies can position themselves for success in securing federal contracts.

Here's what you need to know.

The background

From July 2024, the federal government made changes to the Commonwealth Procurement Rules (CPRs), that all requests for quotes via the Federal Government’s People Panel must include at least one small or medium-sized enterprise (SME).

Additionally, new targets have been set: 25% of procurements under $1 billion and 40% of procurements under $20 million must be sourced from SMEs. The rules define SMEs as businesses with fewer than 200 full-time equivalent employees, including subsidiaries and associated entities.

Minister for Small Business, Julie Collins, stated that the changes “will help to ensure Australia’s small businesses get a bigger slice of government procurement opportunities.”

Alongside the increased emphasis on small businesses, 5% of government agencies’ spending on People Panel services can now be allocated directly to First Nations businesses that are not on these panels, thanks to a new flexibility allowance in the rules.

Learn the details here: https://www.finance.gov.au/government/procurement/commonwealth-procurement-rules

New Rules Enable "Gender-Responsive" Procurement

The updated procurement rules now allow for the identification of women-owned and led businesses on AusTender.

Finance Minister Katy Gallagher stated that this change will "enable a gender-responsive approach to procurement, and give the government the ability to measure and analyse the women-owned and led businesses the Commonwealth is contracting with."

She emphasised that the government procurement framework is "a major economic lever," and the new changes aim to boost small businesses, stimulate First Nations entrepreneurship, and improve gender equality.

Read the press release here: https://ministers.treasury.gov.au/ministers/julie-collins-2022/media-releases/new-procurement-rules-deliver-more-small-business

🧭 How Recruitment Agencies Can Engage in Federal Procurement

1. Register on AusTender:
All federal procurement opportunities are listed on AusTender. Agencies should create a profile to receive notifications relevant to their services.​Department of Finance+1Legal Kitz+1

2. Join the Whole-of-Australian-Government (WoAG) People Panel:
The Department of Finance manages a coordinated procurement panel for recruitment services. Participation is mandatory for non-corporate Commonwealth entities, making panel membership essential for agencies seeking federal contracts. Details are available here.​NIAA+1Department of Finance+1Federal Register of Legislation+9Department of Finance+9Scceu+9

3. Leverage Exemptions for SMEs and Indigenous Businesses:

• Exemption 17: Allows direct engagement of SMEs for contracts up to $500,000, provided value for money is demonstrated.

• Exemption 16: Permits direct procurement from Indigenous-owned SMEs (minimum 50% Indigenous ownership) without open tendering, regardless of contract value. ​Department of Finance+1kirraservices.com.au+1ibd.supplynation.org.au+1Proximity+1

4. Understand the Indigenous Procurement Policy (IPP):
The IPP mandates:

• Mandatory Set-Aside: For contracts between $80,000 and $200,000, especially in remote areas, Indigenous businesses must be approached first.

• Mandatory Minimum Requirements (MMRs): For contracts over $7.5 million in specific sectors, there are set targets for Indigenous participation. ​Supply Nation+19NIAA+19Indigenous+19NIAAAustLII+4Department of Finance+4NIAA+4

5. Align with Gender Equality Initiatives:
Under the National Strategy for Gender Equality, businesses with 500+ employees must meet specific gender equality indicators to qualify for government contracts

✅ Best Practices for Tendering

• Stay Informed: Regularly monitor AusTender and relevant state portals.

• Tailor Responses: Address all criteria explicitly in your submissions.

• Highlight Unique Value: Emphasise aspects like diversity, regional expertise, or specialised skills.

• Maintain Compliance: Ensure all certifications and registrations are current.

• Seek Feedback: After unsuccessful bids, request debriefs to improve future submissions

🔧 Leveraging Technology

• Tender Management Software: Utilise platforms like Open Windows or Proactis to streamline the bidding process.

• CRM Systems: Implement Customer Relationship Management tools to track interactions and manage client relationships effectively.

• Data Analytics: Use analytics to assess past performance and refine future strategies