AIIA welcomes govt IT contract cap

The federal government’s decision to cap IT contracts at a maximum value of $100 million, to make it easier for SMEs to secure government projects, has been positively received by the industry.

Industry body the Australian Information Industry Association (AIIA) welcomed the ICT procurement reforms, which were announced yesterday as part of the first measures enacted based on the recommendations of the ICT Procurement Taskforce.

In a statement, AIIA CEO Rob Fitzpatrick said the changes align with the AIIA’s recommendations to provide a more level playing field for smaller Australian technology companies.

“[These] changes are an important step forward to make it easier and less expensive for smaller Australian ICT companies to bid for components of larger projects and have the opportunity to do business with the government,” he said.

Through the changes, the government has set a target of increasing SMEs’ share of government contracts by 10%, or $650 million.

Fitzpatrick said other reforms planned by the government will also serve to modernise procurement arrangements.

“We are particularly pleased to hear the ... strong commitment to cloud services across government and to reforming existing panel arrangements. AIIA has expressed concern for some time that current approaches are out of sync with new business and operating models,” he said.

“All these changes open the door for government agencies to embrace innovation and new ideas and puts us a step closer to breaking down Canberra’s risk-averse culture. The government has also sent an important message about the importance of delivering on its digital transformation agenda. To succeed, it will be important to implement the spirit of these changes effectively, and industry looks forward to working with the government to ensure an effective rollout.”

Image caption: Rob Fitzpatrick. Image courtesy AIIA.

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