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The 'FTA Effect' on Government ICT Tenders

by Kim James •
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The number of open Federal government ICT tenders has increased by more than 70% since 2003-04, indicating that changes arising from the US/Australia Fair Trade Agreement (FTA) in 2005 have taken hold in agency procurement practices. The FTA changes expanded the number of agencies required to comply with the Commonwealth Procurement Guidelines and included an expectation that contracts likely to be valued at more than $80,000 would go to open tender, unless particular circumstances applied.

Intermedium has found that open tenders for ICT goods and services by Federal government agencies increased from 151 in 2003-04 to 185 in 2004-05 and 261 in 2005-06 (as at 3 May).

The higher volume of tenders has been consistently maintained over the current year, unlike the peaks and troughs of previous years. More tenders will, of course, be published during May/June, increasing the overall total for 2005-06.

So yes, there have been more tenders than ever before this year, and no signs that the flood will abate.

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