AQMN Takes Action on SME Discrimination in Procurement

AQMN has commenced legal proceedings against the Commonwealth following allegations that small and medium enterprises (SMEs) were unfairly disadvantaged during a recent panel assessment. The case centres on capacity-based criteria that may have excluded or downgraded SMEs despite their proven ability to deliver.

The Issue at Hand

Panel assessments are designed to provide open and contestable access for all qualified providers. However, in this matter, SMEs were marked down on the basis of scale and staffing capacity—even where these measures were not part of the published evaluation criteria.

AQMN’s legal challenge asserts that this treatment amounts to unlawful discrimination, undermining the Commonwealth’s stated policy of improving SME participation in government procurement.

Legal Grounds

The action is grounded in administrative law and procurement rules, focusing on whether decision-makers:

• Applied criteria beyond what was set out in the request documentation.
• Breached principles of fairness, equal treatment, and transparency.

• Failed to provide proper reasons for excluding or scoring down SME bids.

   

The case also raises questions about whether probity protocols were followed and whether the process complied with Commonwealth Procurement Rules and SME Participation Targets.

Why This Matters for Industry

SMEs make up the majority of suppliers in Australia’s defence and public sector ecosystem. If procurement panels side-line them on capacity grounds, many capable businesses are locked out of opportunities despite meeting technical and financial requirements.

For industry, this case is about more than a single assessment—it tests whether SMEs can compete on fair terms when engaging with government buyers.

AQMN’s Role

With senior lawyers experienced in Commonwealth procurement, AQMN is leading the case to clarify how rules are applied and to set a precedent for future panel assessments. By taking this action, AQMN aims to safeguard fair access and ensure that capability—not size alone—determines outcomes.

Looking Forward

As procurement frameworks evolve, scrutiny of SME participation will only increase. This legal action is a step toward ensuring that government procurement panels remain contestable, transparent, and compliant with the rules they publish. AQMN will continue to stand with industry to enforce those principles.