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SA Government introduces “no brainer” changes to local procurement

SA Government introduces “no brainer” changes to local procurement

The South Australian Government is shaking up procurement to get more public spending “into the pockets” of local businesses.

The Australian Associated Press reports spend allocated to SA businesses will increase by 5% or about $425 million.

The Government’s annual spend on goods and services is about $8.5 billion a year. 

Other changes under the procurement reforms include:  

  • local workers must deliver at least 90 per cent of labour hours on major infrastructure projects
  • contracts valued in excess of $55,000 awarded to interstate or overseas suppliers must be approved by a departmental chief executive
  • A minimum of 20% of labour hours on major projects must be allocated to apprentices and trainees, Indigenous workers and those unemployed long term
  • 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
  • Government projects worth more than $55,000 must use local project managers, architects, designers, engineers, surveyors, planners, and other professional services providers

“These changes are designed to get more public spending into the pockets of local businesses and workers,” SA Treasurer Stephen Mullighan told AAP. 

“Awarding South Australian contracts to South Australian businesses, and keeping those dollars in our state, is a no-brainer.”

An independent complaints process is being set up for those who feel hard done by if they are overlooked for government work. 

An annual project pipeline will be made available detailing infrastructure projects valued over $10 million.

With public projects above $500 million, the government says it will create smaller stages to open the door for South Australian companies to bid for work where possible.

More on the SA Procurement Framework.

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