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Government Procurement

  • The US federal government market, which procures at least
    US$535 billion of goods or services annually (2011), is now open to
    Australia.
  • Australia has a waiver from the "Buy American Act" (1933,
    41 USC 10).
  • Thirty-one states of the United States have signed up to
    the Agreement, including the largest procuring governments of
    California, Florida, New York, Pennsylvania and Texas.
  • Australian preferences for small businesses and
    indigenous people remain.

Summary

Australia became a "designated" country in US law, allowing
Australian companies to bid on federal government contracts as
a result of the AUSFTA. The six per cent penalty imposed
under the "Buy American Act" (1933, 41 USC 10) for Australian
products, above agreed thresholds, has been waived.

Much procurement in the US is conducted off Federal Supply
Schedules, and Australian companies now have the opportunity to
be listed on these Schedules.

All Australian States and Territories and 31 states of the
United States have agreed to participate in the
arrangements

Strategic defence procurement is not covered by the Chapter
and Australia has retained the Australian Industry Involvement
program in respect of defence procurement.

It is important for Australian companies to find out whether
the product they offer and their potential buyer are covered by
the Government Procurement Chapter of AUSFTA.

For more information on the types of procurement covered by
the Government Procurement Chapter, see AUSFTA Government Procurement - Exceptions.

For more information on whether potential buyers (or
procuring entities) are covered by the Government Procurement
Chapter, and a list of US states which have signed on to the
Chapter, see AUSFTA Government Procurement - Covered Entities

Gains to Australia

Australian companies are now able to compete in the US$ 535 billion US Federal procurement market (2011). They also have access to the largest government procuring states in the US.

Last Updated: 11 August 2014
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