Published on the 30/08/2016 | Written by Beverley Head

Online marketplace links small IT companies with government prospects…

The Digital Transformation Office has launched a beta version of its Digital Marketplace intended to make it easier for small businesses to compete for the Government’s annual $5 billion IT budget.

The online market is now up and running but will continue to evolve over time. Unveiled in Canberra by Assistant Minister for Cities and Digital Transformation, Angus Taylor, the marketplace is open to Federal, State and Local government IT buyers.

Government buyers can use the marketplace to publish outlines of what they are seeking and suppliers can respond. A Digital Services Professionals panel established by the DTO in March this year resulted in 220 individuals and organisations now being listed on the marketplace, though this number is expected to rise as more SMEs qualify for inclusion.

According to DTO CEO Paul Shetler the marketplace is intended as a “relatively simple vehicle for relatively simple problems.” He said that by lowering the barrier to entry it should allow more creative approaches to be adopted by Government, and streamline access to Government work for many small and medium enterprises.

Government buyers can also launch challenges about specific business problems and have SMEs pitch ideas about how they could be solved. At the same time SMEs can use the marketplace to raise their visibility in the public sector.

Shetler said that the transparency and simplicity of the platform should make doing business with Government much easier for small business, while Government should be able to more easily find digital skill and “Usually much more quickly than through recruitment”. He said that over time endorsements (rather than recommendations) about individuals, should make it easier to assess which SMEs offer the best fit for a particular role. Analytics are also being developed which will rate Government clients giving SMEs a better idea of who they might be dealing with.

Speaking at the launch the Minister noted: “We need procurement systems that drive accountability – and this is not just to the seller – it’s also to the buyer. Are you a good buyer? … We can use technology to enhance that process of reputation building and endorsement so, as I always used to say in consulting, you’re only ever as good as your last project, which I felt was pretty unfair. The truth is your reputation should be built on a whole range of projects and a whole range of experiences people have had with you and what we really want is that accountability, for someone’s effectiveness as a supplier and as a buyer, to be built into our technology.”

There are limits, however, as the digital marketplace is not intended as a vehicle for large tenders and large programmes of work according to Shetler, though there are no arbitrary limits set on the platform.

The chief executive officer of the Australian Information Industry Association, Rob Fitzpatrick said the Digital Marketplace was further evidence of the “entire focus of the DTO being to take logical steps forward.” He said that any initiative “to get a free flow of information and business for SMEs has to be a great thing.”