We operate with a similar system.
Every time I bid on a state logging contract, I have to submit my whole CV in the field.
That includes proof that I have the capacity to bid on a contract of that size.
I even have to submit my yearly gross income, to prove that my company is big enough.
That is good, because it keeps the riff-raff out of the woods, but it makes it almost impossible for new guys to enter the field.
So for a newly started faller, it is impossible to work for the state, unless he/she teams up with an operator, who is qualified.
That narrows the field of competitors a lot, which makes my life easier,
But once the oldtimers like me are gone, who are going to take over.