Winning state and federal government contracts are generally a lot more challenging than bidding for work with local Councils. This guide will explore how small and medium businesses in Lismore, and other regional Australian cities and towns, can make a successful transition from local Council to state and federal government bids, meeting key challenges and avoiding common errors.
A strong focus on systems and processes is critical.
The “Scaling Up” Cheat Sheet for SMEs
Feature | Local Government | State & Federal Government |
Primary Focus | Community impact & local presence. | Value for Money (VfM) & risk mitigation. A state-based approach to local engagement. |
Documentation | Basic insurances & ABN. | ISO Standards, Cyber Security, Modern Slavery and other documentation. |
Methodology | General “how-to” descriptions. | Evidence-based, project-specific workflows and methodologies. |
SME Policy | Local preference “buy local” rules. Strong focus on local procurement. | 20–30% SME spend targets (State/Federal; mandates). This is beneficial to small and medium businesses. Occasional focus on regional businesses as well. |
Portals | VendorPanel / Tenderlink. | NSW eTendering / AusTender. |
Key Gap | Focus on strong local presence and community ties. | Strong focus on having the systems in place to guarantee delivery. |
- Shifting the focus: From “Local impact” to “Value for Money” (VfM)
While local councils prioritise keeping rates within the respective LGA, such as the Lismore LGA, State and Federal agencies define “Value for Money” more broadly. They are usually looking for a credible, low risk outcome where economic benefits form part of the wider weighting criteria and there is less focus on local presence.
To win your tender or bid, you need to demonstrate that your business is a credible partner able to manage and service a long term, complex contract. Financial statements from the last three years are generally required, and you need to take a whole-of-life approach to the contract, and your pricing, ensuring you have the systems and processes in place (such as recruitment processes) to service the contract over the full term.
- The documentation challenge: insurances and compliance
One of the most common reasons for non-compliance with state and federal government tenders is insurance. There are often requirements for $20 million insurance policies for public liability as opposed to Councils which often as for $10 million. Ensure you double check the contract requirements.
In addition, the requirements for other supporting documentation are often more complex. These ay include:
- WHS Management Systems: some contracts require ISO certification, or in the alternate, detailed WHS management systems that mirror ISO requirements.
- Environmental Management: with state and federal government bids, you often need to evidence how you have implemented your policies and plans.
- Cyber Security: Alignment with the Essential Eight security framework is critical.
- A detailed and robust methodology: The “How” and “Why”
With local tenders the expectation for methodology is often less in terms of detail and scope. In state and federal government tenders, you need to put forward a detailed methodology and it often has a high % in the weighting criteria. As part of your methodology you need to:
- Include timelines
- Outline what resources you will allocate and where
- Demonstrate the application of your quality and safety processes and poilicies.
- Leveraging SME and Regional Participation Policies
The good news for Lismore businesses is that both State and Federal governments have mandatory targets to spend with SMEs and often have a strong focus on regional businesses. This also applies across other state governments.
- NSW Government: The Enforceable Procurement Provisions require agencies to consider small businesses first for certain spend thresholds.
- Federal Government: The Commonwealth Procurement Rules have a target to source at least 20% by value from SMEs.
When writing your bid, focus on being a local businesses and talk about how your business is a reliable choice that will help the government department meet these objectives. A focus on the downstream economic benefit to your local regional community is also important and helpful.
- Monitor additional portals
Many regional businesses are comfortable with VendorPanel or Tenderlink, but State and Federal opportunities live elsewhere – mostly on government websites.
- NSW eTendering: Register and watch for opportunities in NSW.
- AusTender: This is the centralised system for all Federal (Commonwealth) business.
It’s a good idea to set up automatic notifications so you are aware of any opportunities as they arise.
- Closing the “Details Gap”: Risk and Professionalism
Risk Registers are critical – especially federal government tenders. You need to identify the risks with the contract, and put forward clear, concise and effective mitigation measures.
Here at The Tender Team, we help businesses in Lismore, and across Australia win federal and state government contracts.
