NSW has turned its back on independent agencies, says the Independent Media Agencies of Australia’s (IMAA)
In May, the NSW government ignored IMAA's pleas to review its $78 million state master media tender which locks out independent media agencies and favours foreign-owned players.
Following a two-stage tender process over 12 months, OMD won the NSW government’s new Media Agency Services (MAS) contract valued at more than $70 million, consolidating a roster of five media agencies into a single supplier.
In response, IMAA CEO Sam Buchanan told AdNews: "While we are disappointed with the way the NSW Government conducted its master media pitch and the outcome, we are not surprised.
“The government has turned its back on the independent media agency sector and appears content for agency profits to be sent overseas, rather than supporting Australian-owned businesses.
“The IMAA is continuing to have active discussions with the government to change the process in the future."
While the NSW government claims “the tender was open to all types of media agencies”, the first shortlist released only included multinational agencies, with independent media agencies not making it past the first stage.
The NSW government's own procurement rules that all government services contracts above $3 million must include "10 per cent allocated to SME participation” were also ignored.
“It is now a full-blown conclusion that the NSW government will not support Australian-owned businesses and send the money off to another international economy in the UK, US or France," says Buchanan.
"The EOI process has clearly cut out Australian-owned independent agencies. This is un-Australian and anticompetitive at a time when indies need the support of their government.
“It is a terrible message to send to Australian-owned businesses. We are not asking for a free kick, just a chance to compete.”
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