Major changes give local businesses a competitive edge
The Malinauskas Government has announced further ground-breaking changes on how public money is spent to deliver on its election commitment to support local businesses and jobs through government procurement.
Approximately $8.5 billion is spent each year on goods and services by the South Australian Government in areas such as hospitals, schools and government departments.
The Government has set an initial target to increase the amount spent with SA businesses instead of interstate and overseas suppliers by 5 per cent - which would inject an extra $425 million into the state’s economy.
From now:
- SA workers must deliver a minimum 90 per cent of labour hours on major infrastructure projects worth more than $50 million;
- Any contracts worth more than $55,000 awarded to interstate or overseas suppliers must be approved by the Chief Executive;
- 20 per cent of all labour hours on major projects must be delivered by apprentices, trainees, Aboriginal workers, and long-term unemployed;
- Government projects worth more than $55,000 must use local project managers, architects, designers, engineers, surveyors, planners, and other professional services providers;
- A broad market assessment will be undertaken to identify SA businesses that can deliver projects, goods and services to government;
- An independent complaints process will be established for tenderers who feel they have unreasonably missed out on government work;
- An annual project pipeline will be published detailing coming infrastructure projects over $10m to enable lead contractors to prepare thoroughly;
- Public projects above $500m will be broken into smaller stages or components to allow multiple South Australian companies the opportunity to participate on projects, unless that nature of the project makes this unfeasible;
- A minimum of three quotes must be received for government contracts between $55,000 and $550,000 with at least one quote being from a South Australian business;
- In addition to value for money considerations, public authorities will be required to consider the economic benefit of the procurement to South Australian economy;
- Public authorities are also now required to report data on what percentage of contracts are being awarded to non-South Australian businesses.
SA Government Procurement Framework
Procurement Services SA has released the updated Procurement Framework, to achieve the ‘Making the Public Dollar Work’ election commitments and achieve maximum benefit from government spending.
The Procurement Framework and SA Industry Participation Policy are complementary policies that drive economic growth and jobs in the State, and are the policy mechanisms to implement the election commitments.
The Framework is designed to empower public authorities to engage with industry, clients, and communities to innovate and take balanced risks to pursue better outcomes.
Treasurer's Instruction 18 provides public authority Chief Executives with clear accountability and responsibility to establish local procurement governance arrangements and processes suitable to their requirements.
Access here the Treasurer's Instructions List
The Procurement Governance Policy outlines the requirements to ensure appropriate governance.
Access here the Procurement Governance Policy
The Procurement Planning Policy outlines the requirements to plan a procurement process on behalf of the South Australian Government.
Access here the Procurement Planning Policy
The Sourcing Policy outlines the requirements for sourcing goods and services on behalf of the South Australian Government.
Access here the Sourcing Policy
The Contract Management Policy outlines the requirements for South Australian public authorities to undertake effective contract management practices in order to achieve value for money.
SA Industry Participation Policy
The SA Industry Participation Policy is the high-level framework for delivery of the requirements of section 4 of the Industry Advocate Act 2017.
Access here the SA Industry Participation Policy and resources
Forward Procurement Planning 2023-2026
Procurement Services SA will publish a Forward Procurement Plan on behalf of all public authorities to inform prospective suppliers about future procurement opportunities.