12 March 2021

Morrison Government delivers over $3 billion in contracts with digital businesses through its Digital Marketplace

Note

Joint media release with
The Hon Stuart Robert MP
Minister for the National Disability Insurance Scheme
Minister for Government Services

Today the Morrison Government has announced its Digital Marketplace has reached a significant milestone, delivering over $3 billion in Federal Government contracts to digital businesses, with over $2 billion awarded to small and medium sized businesses.

The announcement comes just 12 months after the Digital Marketplace reached $1 billion in contracts, demonstrating its ongoing and increasing success in simplifying doing business with government.

Managed by the Commonwealth’s Digital Transformation Agency, the Digital Marketplace has made it easier for buyers and sellers to come together to find innovative services - helping support government deliver for Australians.

Minister for Government Services Stuart Robert said the milestone demonstrated the Morrison Government was delivering on its commitment to make it easier to do business with government.

‘With over $3 billion in total contracts and over $2 billion in contracts going to small and medium sized businesses, it is clear the Digital Marketplace is now the go to place for digital businesses looking to get government work,’ he said.

‘I would encourage every single digital business out there, no matter your size, whether you are city-based or in our regions, to get on the Digital Marketplace today – we need your innovative and dynamic services to help government deliver for Australians.’

Minister for Superannuation, Financial Services and the Digital Economy said the $3 billion milestone demonstrated the Digital Marketplace was helping to accelerate Australia’s Digital Economy particularly given $2 billion has gone to small and medium sized businesses.

‘Australian digital businesses are some of the most dynamic globally and the significant opportunities realised through the Digital Marketplace will see benefits flow through right across our economy’ she said.

‘By making it easier to do business with government the Digital Marketplace is delivering Australia a win-win – it is seeing government benefit from all our digital economy has to offer while our digital businesses realise the opportunities to grow through work with government.’

Key data from the Digital Marketplace platform:

  • Over 6,000 opportunities across over $3 billion in contracts
  • A doubling of opportunities since August 2020
  • Australian SMEs have secured 65% of contracts equating to over $2 billion in contracts
  • 5673 contracts awarded to SMEs of the 8000 signed by Commonwealth agencies under the Digital Marketplace

If you are a digital services provider, get on the Digital Marketplace today.


Background

About the Digital Marketplace

Established in 2016, the Marketplace is an innovative online sourcing platform for buyers and sellers. It is always open for businesses to join.

Key features:

  • A simple, clear and fast sourcing experience
  • Driving SME outcomes - over 810 unique SMEs have won work via the Digital Marketplace
  • Of the over 8,000 contracts awarded to sellers on the Marketplace, over 5,670 contracts have been awarded to SMEs.
  • 65% of total contracted value has been awarded to SMEs.

The Digital Marketplace is administered by the Digital Transformation Agency, along with other whole-of government ICT procurement arrangements.

Since its inception, the Digital Marketplace has increased government visibility and access to SME sellers and innovative solutions, as the following case study example demonstrates.

Digital Marketplace SME Case Studies:

The Digital Marketplace has helped Indigenous SME Towcha Technology to increase their visibility and help them grow their business.

Towcha is one of over 50 Indigenous businesses on the Digital Transformation Agency’s Digital Marketplace, through which it has gained several government contracts, including with Services Australia and the Bureau of Meteorology. 

According to Alan Holmes, Managing Director of Towcha Technology, the Digital Marketplace has done particularly well in recent years by expanding the category offering and increasing the Indigenous business footprint.

As an entirely Indigenous-owned company, Towcha now employs 12 people. It is currently approved against 4 categories on the Digital Marketplace and certified as an Indigenous Supplier with Supply Nation.

Quotes attributable to Alan Holmes, Managing Director of Towcha Technology:

‘The really good thing about the Digital Marketplace is we are now more discoverable as a business and this affords us greater opportunity to be considered for, and potentially win government work,’

‘We simply don’t have the large budget of large organisations to promote our business so we regularly use the Digital Marketplace to get visibility and access to government opportunities and, in turn, provides visibility of our business and capability and this has allowed us to grow the business.’

‘When we first joined the Digital Marketplace, there were only a few broad categories. That has now expanded to 17 and this allows SMEs to specialise their capability and not be too broad with their offerings. We also have partnerships with some larger firms and hopefully with the new platform integration category, this might enable us to get access to larger transformational projects.’

‘The growth of Aboriginal businesses on the Marketplace has been encouraging for the Indigenous digital sector and for government buyers. A couple of years ago there were only five, but now there is over 50.’

‘I believe it is increasingly important for SMEs to better articulate their case studies when being assessed for various categories. My advice is to focus on what you can do and don’t be too broad. And focus particularly on how you can assist government arrive at cost-effective solutions.’

The Digital Marketplace has helped ‘1448’ to grow and expand their digital business and tailor their service offering to Government.

1448 is a regional-NSW based SME and one of several small businesses on the Digital Transformation Agency’s (DTA’s) Digital Marketplace achieving solid growth and scale. 

Since its inception in 2015, 1448 has been awarded 22 government contracts, including with Department of Health, Home Affairs and Department of Finance. 

1448 derives its name from it street address in Sutton, NSW and is currently approved against 6 categories on the Digital Marketplace. Co-founded by Simone Fox and Rohan Lane, the digital services company now employs around 50 people.

During the COVID-19 period of 2020, 1448 demonstrated their knowledge and capacity of the business travel and expense management processes, by uplifting 5 agencies in parallel to an end-to-end business process and solution.

Simone Fox said that while it is good to be across the volume of opportunities coming through the Digital Marketplace, 1448 has grown the business aligned to their capability and skill-set. It is vital for them to understand and filter those opportunities that provide the best fit professionally and culturally to help grow their business and expertise. 

‘We find the Digital Marketplace provides a great user experience on a lot of levels," co-founder and partner,’ Simone Fox said.

‘The way in which the Marketplace operates as an intuitive digital platform, is impressive. Our company ethos is delivering value for our clients and the same can also be said of the Digital Marketplace.’

‘It is really effective for our business, as I'm sure it is for other digital businesses, and particularly the visibility of the opportunities thread and daily summary email. It's always a streamlined process (with the Digital Marketplace) from viewing and considering opportunities, assessing the merits or otherwise of our business' suitability, to submitting a proposal, it is so logical and straight-forward,’ she said.

‘The traditional old (procurement) methods were not as intuitive, whereas the Digital Marketplace is very easy.’

‘We generally know the environment and we know the culture that we can be most effective in. We ensure that we understand the problems that need solving. And we determine the right resource-fit required, continually improving our approach and process, through our team's exposure to key agency people, programs and processes.’

‘Most importantly we attract the right staff, who integrate seamlessly into agencies’ multi-disciplinary teams, with the right technical ability, attitude and a focus on delivering quality outcomes.’

‘We haven’t won everything we've pitched for, naturally, but we also know how to be successful and that's being focused on the components of what we do well and the environment we are working in. And that's largely about delivering program design, innovative practices, leveraging connections and collaboration opportunities for our client agencies.’