The Industry department has put out a call for contractors to help deliver its $392 million commercialisation program, seeking around 20 individuals to deliver advice and help with grants for the new scheme while also winding down its predecessor program.
Individual contractors engaged either directly or through their business entity are being sought to provide advice and assess grants to small and medium enterprises in every state and territory as part of the Industry Growth Program.
Genuine competition will be a focus of the procurement for the Industry Growth Program, after the tender process for the Entrepreneurs Programme that it replaces left a cloud over the program.
Unveiled in the May Budget, the new program aims to address early-stage funding concerns, filling a gap in order to get companies investment ready through the $15 billion National Reconstruction Fund, which is targeted at more established companies.
Like the bigger fund, the Industry Growth Program is targeting priority areas like defence, clean energy and value add resources to build a pipeline of companies.
The new commercialisation program has been budgeted $392.4 million over four years, with the money to go to providing advisory services and matched grants to SMEs undertaking commercialisation and growth projects in the priority areas.
The Coalition government’s Entrepreneurs Programme also engaged delivery partners for advisory services and assistance with grant applications to budding companies across the country.
But that program was mired in controversy after a “deficient” tender process with bias toward certain applicants. A performance audit found tenderers were not treated fairly or equitably, large incumbents were given an unfair advantage, and that a number of “significant errors” were made in the procurement process. The procurement left the Industry department facing compensation claims from unsuccessful bidders.
Any contractors engaged for the new program may be required to assist the existing recipients of the Accelerating Commercialisation grants from the Entrepreneurs’ Programme. The old program still has funding through to 2026, even after a $198 million cut made last year by the incoming government.
In an approach to market for the new government’s program released Wednesday, the Industry department has been explicit that there will be a “genuinely competitive” procurement with external oversight of legal and probity advisers and no incumbent providers favoured.
The department expects to recruit around 20 individuals with contracts that run for two years, with an option to extend another two.
Contractors will be expected to provide commercialisation and business advice to recipients of the Industry Growth Program, and help guide with their scale up process, but not undertake operational activities.
Selected SMEs will be assigned to the contractors or they may be identified by the contractor at an earlier stage and encouraged to apply.
The contractors will also be asked to assist with the department’s awarding of grants, expected to be up to $5 million each, by providing advice about the merits of applications. Contractors will not be allowed to write applications on behalf of the applicants.
Advocating for the Industry Growth Program and uplifting the capability of the Australian Public Service is also among the services contractors will be required to provide.
A performance management of the contractors will include assessments of recipient satisfaction through sample interviews and reviews of the contractors’ mandatory service reports, data collection and workloads.
A request for tender is open now and closes on August 16 after an industry briefing next week. The department expects to execute contracts by mid October.
