Queensland has introduced new procurement rules that make it easier for startups and small suppliers to win follow-on work after taking part in state innovation challenge programs.
Under the updated Queensland Procurement Policy, state agencies can now purchase a solution directly from a startup that has developed a new tool, product or service through one of these challenges, as long as the value is under the $500,000 threshold.
The change, quietly revealed as the policy was updated last month, gives innovators who have already proven their solution through a government challenge a clearer path to commercial work.
Until now, many challenge winners have struggled to move beyond pilot projects because even small follow-on work requires full competitive tender processes, which are often costly and time-consuming for young companies.
Companies that compete in programs like the Private Sector Pathways Innovation Challenge will qualify for the exemption, which aim to make government contracts more accessible to local innovators, small and family-run businesses and medium enterprises.
The new policy also encourages government buyers to write specifications in a way that does not shut out new or creative approaches, and to consider using outcome-based requirements that focus on the problem to be solved.
Another practical change is that agencies are asked to request certain documents, such as insurance certificates, certifications or reference reports, only when they are actually needed, such as when a supplier is shortlisted or selected.
For many start-ups, these documents can be expensive to obtain upfront, and the cost often prevents them from bidding at all. By shifting these requirements to later in the process, the government is lowering a common barrier for smaller suppliers.
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