The State Government’s new Buy Local Policy, released today, is designed to change behaviours within Government and ensure procurement agencies achieve both the letter and intent of the policy.

The current Buy Local Policy got a poor review in 2017 from the State Auditor General, who wrote: “The full effect of the Policy is not achieved because agencies do not always consider the intent when applying specific aspects of it.” The State Government says that’s going to change. Launching the policy, Premier Mark McGowan said: “This is all about ensuring that local businesses are given every opportunity to carry out work for the State Government in their local area.”

The cornerstone of the Buy Local Policy is the Regional Price Preferences, which have stayed the same for construction contracts. The regional business preference, which is 5% of the tendered price up to a maximum of $250,000; and the regional content preference, also 5% of the tendered price up to a maximum of $250,000.

While those preference percentages and limits haven’t changed, agencies will now have the power to increase the maximum preference to $1 million “as a means of addressing social and economic government priorities”.

Generally, though the changes to the policy are more about giving it greater teeth and making it more likely to achieve effective outcomes.

The policy encourages agencies to consider regional businesses when forming procurement panels and says regional panel members based within the prescribed distance of the contract’s point of delivery must be invited to quote.

The policy also extends to managing contractors and others that procure on behalf of government, who will be “required to apply all appropriate requirements of the policy when seeking quotations or calling public tenders on behalf of the government agency”.

The State Government says it will offer training for regional contractors in understanding the policy and how to apply for contracts and will also provide then with 'look-ahead' lists of forthcoming tenders to allow local contractors more time to bid.

Agencies will sign up to new Implementation Agreements to underline their commitment. There will be increased reporting requirements to ensure the policy is being adhered to.

The new Buy Local Policy will be phased in over the next six months. During that time, The Department of Jobs, Tourism, Science and Innovation is inviting industry feedback.

Click here to download the new policy