Over 200 members attended the Chamber's SME Night on Government Procurement on April 9. Colin Sankey, head of the government's Efficiency Unit, outlined during an informal cocktail at Hotel Miramar how companies can supply government with various goods and services through its tender process.

In 2000, the government outsourced 4,370 contracts, valued at HK$31.6 billion (excluding housing) for a variety of projects, from waste management to infrastructure maintenance to property services, he said.

The Efficiency Unit is promoting more and better outsourcing through finding suppliers that offer value for money, but Mr Sankey pointed out that great emphasis is put on quality, not just the lowest price, when evaluating bids.

The procedure for businesses wishing to bid for government supply or service contracts is simple. Companies only need to provide a minimum amount of information about their business and registration is free.

Although not essential, companies should register to be a supplier unless they want to check various government Web sites daily for tender notices.

Another advantage of registering is that generally, only contracts valued over HK$1.3 million are advertised, so only registered companies will be invited to bid for contracts valued under this amount, said Gregory Leung, director of Government Supplies, who also spoke at the event.

The Supplies Department's average total purchase value per annum is HK$5-6 billion, which involves about 2,300 contracts supplying a variety of goods.

Various government departments are responsible for purchasing their own supplies for products or services for smaller contracts -- about HK$1.3 million or less -- while amounts above that generally go through the Government Supplies Department.

SME Committee Chairman K K Yeung hosted the evening which was also attended by representatives from the government's Electrical and Mechanical Services Department, Supplies Department, Housing Department, and Management Services Agency, who introduced their procurement requirements and procedures to members.