How procurement reform, panel changes, and contract data are reshaping Commonwealth spend in 2026.
Significant procurement reform and shifting government priorities are reshaping how the Australian Government buys goods and services. This Tendertrace analysis combines policy expertise with procurement intelligence to highlight the contracts and trends that will shape opportunity for suppliers in 2026.
Wide-ranging procurement reforms introduced by Finance Minister Katy Gallagher in late 2025 will see this calendar year continue to be marked by significant upheaval for suppliers to the Australian federal government.
However, for organisations able to leverage available procurement data, forge relationships and provide value to the Australian taxpayer, the Commonwealth will continue to be a lucrative and important customer.
Now, as 2026 kicks off, the Tendertrace team has run the numbers and identified the notable contracts to watch in the next 12 months, as well as those that stood out in 2025, painting a picture of how federal government spending will play out this year.
The tenders to watch in 2026
Defence facilities renewal
Following the 2024 National Defence Strategy, the Department of Defence has undertaken a large program of estate renewal as well as “hardening” bases across Australia’s north, with an investment of $14 – $18 billion for connected and resilient bases, ports and barracks.
Already this investment has flown through directly to prime contractors and in the retendering of facilities management services under the Base Services Transformation Program.
Tendertrace insight
Utilising the search by category function reveals a clear picture of the shape of contract awards in this space. With a high number of contracts expiring in Q1 2026, it is expected that there will be additional opportunities in the coming year, as well as once the program shifts from a construction phase to an operations and maintenance phase.
With a large average expiring contract size of $12.2 million, for SMEs in this sector analysis of successful contracts in this space can provide a pipeline of subcontracted work.
Department of Defence awarded and expiring contracts summary
Software and ERP Marketplace Platform
Having handled over $5 billion in tenders since its establishment in 2018, the Software and ERP Marketplace Panel is set to expire in April 2026. As the Digital Transformation Agency reviews its use of panels after several Audit Office reports, it will be important to track the shift of participants to the Digital Marketplace 2 and how this new panel shapes buying and selling behaviours.
Tendertrace insight
The network visualisation model for this panel highlights how this panel enables successful providers to sell to multiple buyers across the APS. With a diversity of buying agencies and panel participants and consistently rising contract values, it will be important for suppliers large and small to qualify for the next panel arrangement to successfully engage with government tech buyers.
Defence Support Services Panel
Also expiring in April 2026 is the Defence Support Services Panel. Established as a way for Defence to draw upon specialised expertise, the value of contracts sourced through this platform has been in decline as Defence recalibrates its use of outside contractors, particularly large professional services firms.
Tendertrace insight
This shift can be seen through the Participation tab within the panel page. The high volume of ‘other’ suppliers in FY2026 to date demonstrates how Defence has been seeking a diversity of suppliers, while the emergence of the Australian Submarine Agency as a buyer in the first six months of this financial year suggests the need for professional services firms to identify how they can deliver value under the AUKUS program takes on a greater proportion of Defence budget spending.
Defence Support Services (DSS) Panel: Participation by Volume
Aged Care Act IT reforms
Since the Royal Commission into Aged Care Quality and Safety the Department of Health has spent billions on building the digital IT infrastructure to support Australia’s ageing population. With the department identifying this program as a contributor to its higher use of outsourcing in 2026, this is an area that will continue to rely on the knowledge and skills found outside the public sector.
Tendertrace insight
A number of key contracts are expiring in 2026, including for website operation and digital implementation. As the program shifts from initiation and design to implementation and maintenance this can provide the opportunity for smaller firms providing targeted support in key areas to become involved.
The contracts that caught our eye in 2025
Introduction of the Digital Marketplace 2
While launched in late 2024, this panel really got going in 2025 and reflected the Commonwealth’s updated approach to procuring digital services.
Tendertrace insight
Now after a year of full operation, the key buyers and sellers in this panel are emerging, including the Australian Signals Directorate, which has purchased $175.65 million of services across 340 contracts, demonstrating how valuable security clearances are for firms competing in this space.
Digital Marketplace 2 Panel Top 10 Buyers
BoM’s Robust Program
Making headlines for all the wrong reasons, media reports highlighted the value of IT systems which didn’t hit the mark with the public.
Tendertrace insight
An analysis of the contracts in this program by category showcases how behind the IT systems was a surge in the number of temporary support services contracts, clarifying the importance of human capital in successful project delivery.
Basin Plan Review
What began as a statutory review of the government’s plan for the Murray Darling Basin has morphed into a project comprising data and ICT contracts.
Tendertrace insight
Here a simple keyword search can reveal the lifecycle of a reform program. From request for quote, to initial advice and panel through to early implementation – all on one screen.
A new Environment Protection Agency
After years of political negotiation, the Albanese government finally secured Parliamentary support for the establishment of a federal Environment Protection Agency in late 2025.
Tendertrace insight
In just over a month, the newest Commonwealth agency has turned to the private sector for support, revealed in tender data, with consultancy Synergy Group picking up a $649,220 contract for change management. Suppliers engaged in this space can utilise the alert function to be in at the ground floor in the establishment of a new Commonwealth agency, with other new agencies, including the Centre for Disease Control, also in their nascent stages.
If you are not a Tendertrace Subscriber and would like more information on the insights in this article, please book a meeting with one of our Government procurement experts.
About Tendertrace
Tendertrace enables public sector teams to win smarter, with AI-driven market intelligence that converts to actionable strategy and customised growth plans in seconds.
Purpose-built for both the Australian and UK government markets, we exist to eliminate guesswork, uncover high-value opportunities, and help public sector teams build qualified pipeline quickly – and with confidence.
