We are pleased to announce the publication of the second edition of our Public Sector Contracting: State of The Market Report. This report relates to Q4 2020 and follows on from our first publication which reported on Q3 2020.
Our key findings:
- Overall, in 2020, contracts at state level decreased by $0.43bn. Most of the decline was seen in Q1 and Q3, coincident with the first and second wave of Covid-19.
- Fewer contracts were being awarded, but those that were awarded were of a higher value. This represents a challenge for medium-sized enterprises, since although the government has maintained the overall total value of contracts, the size of those contracts means they are beyond the reach of many medium-sized enterprises, who have seen the number of contracts accessible to them decline.
- Despite the building sector providing the most purchased services in 2020, it has suffered a decline of $560m from 2019, whereas all other sectors, excluding Military, experienced increases.
- Lendlease Building was the most successful contractor in 2020, mainly due to contracting for the defence estate. It therefore also presents itself as the biggest opportunity for subcontracting opportunities.
- However, Qantas Airways Ltd, Boeing Defence Australia Ltd and Virgin Blue Airlines Pty Ltd were also successful (despite the impact of Covid-19), meaning that when combined, the aviation sector accounted for more contracts than Lendlease.
- The value of contracts awarded in Victoria in 2020 dropped dramatically by $3.8bn in comparison to 2019. With Melbourne being the epicentre of the Covid-19 outbreak in Australia, it is clear to see the effects that this has had on the state. It is hoped that Victoria should come back strongly in Q1 2021 as projects and contracts that were delayed by the pandemic are back in play.
We have also produced individual infographics at State level and then at federal government level, which show the value of contracts, who is handing them out, and who is winning them: