For information and communication technology (ICT) companies, Australian governments represent one of the most rewarding client categories available. Billions of dollars are allocated every year to ICT in the public sector. In 2024-25, it is estimated that the total ICT budget across Australian governments has gone up to $34 billion from the previous budget year’s $29 billion. 

However, winning a government contract is not as simple as submitting the lowest bid or having the most innovative offering. It’s about understanding the specific needs of government agencies, navigating the competitive tendering process, and demonstrating your value proposition in a way that aligns with agency and government priorities.  

In this guide, we’ll take you through the essential steps to successfully bid for and win government contracts, providing strategies and insights into crafting a standout proposal, overcoming common challenges, and leveraging tools that can give you a competitive edge in the market.  

Whether you’re new to the government ICT procurement space or looking to increase your rate of success, this comprehensive guide will set you on the path to securing your next big government contract. 

Tendering and Government Procurement in Australia 

What is Tendering? 

Tendering is the formal process where businesses submit their proposals in response to a government’s request for goods or services. The meaning of tendering goes beyond just providing a quote, it involves a structured response that demonstrates your capability to meet the requirements of a project or contract while offering the best value for money. This does not mean the cheapest bid, it’s the proposal that provides the highest lifetime benefits after considering areas including cost, fitness for purpose, quality, risk, capability and capacity. 

Government tenders in Australia can take several forms, including: 

• Open Tenders: Available to all suppliers, providing the highest level of competition. 
• Selective Tenders: Issued to a shortlist of suppliers with the proven ability to meet specific needs. 
• Pre-qualified Supplier Panels: A list of suppliers who have already met certain criteria and are eligible to be invited to bid for specific projects or services within the scope of the panel arrangement. 

Understanding these is crucial for any company looking to compete effectively in the public sector market. It’s essential to be aware of the specific requirements and evaluation criteria that each type of tender might entail. 

Understanding Government Procurement in Australia 

Before diving into the intricacies of securing government contracts, it's crucial to grasp the fundamentals of government procurement in Australia. Being familiar with the procurement rules, guidelines, and legal frameworks at each level of government helps you navigate this landscape more effectively. Each jurisdiction in each level of government—Federal, State/Territory, and Local—may have unique procurement policies that can impact how tenders are evaluated and contracts get awarded. 

How to Overcome Common Challenges in Government Procurement 

1. Complexity of the Tendering Process 

Navigating the complexities of government procurement can be daunting, not only due to the extensive rules and procedures but also because finding trustworthy guidance is a challenge. Each level of government has rules with unique characteristics, such as the Commonwealth Procurement Rules (CPRs) for federal contracts, which outline strict principles and requirements for value, transparency and fairness. Knowing where to access these rules is as crucial as understanding them.  

2. Stiff Competition 

The competition for government ICT contracts is intense. You might find yourself vying for the same contract as much larger suppliers with more resources dedicated to navigating the tender process. To stand out, invest in market research to understand what your competitors are offering and how you can differentiate your proposal. Emphasise innovation, sustainability, and the unique benefits your solution provides. 

3. Lengthy Decision-Making Processes 

Government procurement often involves long decision-making timelines, making it essential for businesses to factor these extended processes into their broader company strategy. Unlike quick-turnaround projects, government contracts are strategic investments that pay off in the long term and aren’t suitable for addressing immediate cash flow needs. By recognising this, ICT suppliers can better align resources, set realistic expectations, and plan for sustained engagement, ensuring they’re prepared to see these opportunities through to completion. 

Key Steps to Securing Government Contracts 

Aside from knowing how to navigate the technical aspects of government procurement, ICT sales and account management teams need a solid strategy to win their next government ICT contract. Here are some key steps Intermedium recommends to help you stand out from the competition: 

1. Market Research: Conduct thorough research to identify government agencies and departments relevant to your business offerings. Understanding their procurement needs, upcoming projects, and budget allocations is essential for targeting the right opportunities. 
2. Registering with Government Portals: Many government contracts are advertised and managed through dedicated online portals such as AusTender (for Federal contracts), BuyICT (for the digital marketplace connecting ICT suppliers with buyers) and respective state-based procurement platforms. Registering your business on these platforms is a crucial initial step to accessing contract opportunities. 
3. Compliance and Qualifications: Ensure that your business meets all regulatory requirements and qualifications specified for government contracts. This may include certifications, licenses, insurance, and compliance with industry standards and codes of conduct. 
4. Building Relationships: Cultivate relationships with key stakeholders within government agencies, procurement officers, and decision-makers. Attending networking events, industry conferences and engaging in proactive communication demonstrates your commitment and enhances your visibility. It is also important not just to know whom to talk to, but also what to talk about based on their needs. 
5. Collaboration and Consortia: Consider collaborating with other businesses or forming consortia to strengthen your bid, especially for larger and more complex contracts. Pooling resources, expertise and capabilities can improve your competitive edge and address broader project requirements. 
6. Quality Assurance and Risk Management: Emphasise quality assurance processes and risk management strategies in your bid to reassure the government of your commitment to delivering outcomes on time, within budget, and to the required standards. Highlighting your approach to managing potential risks demonstrates your readiness to handle project challenges effectively. 
7. Pricing and Value Proposition: Develop a competitive pricing strategy that balances profitability with value for money for the government. Clearly articulate the unique value proposition of your offer, emphasising cost-effectiveness, innovation, and long-term benefits. 
8. Continuous Improvement: After submitting your bid, engage in ongoing communication with the procurement team, seeking feedback and clarifications as needed. Continuously evaluate and improve your processes, systems, and capabilities based on lessons learned from previous bids and projects. 

Using Market Intelligence to Win More Government ICT Contracts 

Market intelligence plays a critical role in shaping your strategy for winning government ICT contracts. It helps you understand industry trends, identify opportunities worth pursuing, and gain insights into your competitors. Here’s how you can leverage market intelligence to your advantage: 

Competitor Analysis 

Understanding what your competitors are doing can help you refine your approach. Intermedium’s Scout IT is one tool that lets you examine competitor activities and track expiring contracts, providing you with a clear view of which competitors are currently engaged with specific agencies and where upcoming opportunities lie. 

Trend Analysis 

Staying ahead in government procurement requires understanding both the numbers and the reasons behind them. With Intermedium’s Analyse IT Plus and Knowledge Base, you’ll have access to everything needed for a well-rounded market analysis. Analyse IT Plus provides over 15 years of data on contracts, tenders, panels, agencies, and suppliers across Australia, giving you the hard numbers on trends, spending shifts, and emerging opportunities. Meanwhile, our Knowledge Base offers the “why” behind those numbers, with our analysts regularly sharing insights into market shifts and agency priorities. Together, these tools let you craft proposals that don’t just meet today’s needs but are primed for what’s next—keeping your bids competitive, credible, and forward-thinking. 

Tools and Resources for ICT Suppliers 

To successfully navigate the tendering process and win more contracts, consider utilising specialised tools that provide a competitive edge. Aside from Scout IT, Analyse IT Plus and Knowledge Base, Intermedium’s Market Intelligence platform offers several other key features designed to support ICT suppliers in their journey to secure government contracts: 

• Tender Alerts and Database: Get time-critical alerts on relevant ICT tenders to stay on top of new opportunities in the market. This is coupled with a database of historical tenders that will show if an agency has gone to the market for your solution previously. 
• GovFacts: A comprehensive resource for understanding the structure, funding, and priorities of government agencies, helping you build tailored proposals. 
• Budget IT: Up-to-date budget data across all ANZ jurisdictions, including New Policy Proposal initiatives funding figures as well as Intermedium’s agency ICT budget estimates. 

Conclusion 

Winning a government ICT contract in Australia is a challenging yet enriching endeavour. By understanding the intricacies of government procurement, mastering the art of tendering, and utilising tools like Intermedium’s Market Intelligence platform, you can significantly enhance your chances of success. It’s not just about having the best or most cost-effective solution, it’s about presenting it in a way that aligns with the government’s needs and demonstrates clear value. 

If you're ready to take your approach to government procurement to the next level, book a demo with Intermedium today to discover how our suite of tools can help you secure more contracts and grow your public sector ICT business.