The South Australian government will now look at the local job market first to see if their new contracts can be met within the State before looking offshore.
The new reform, that came into effect on July 1 means that all government contracts between $22,000 and $4 million in metropolitan Adelaide and contracts up to $1 million in regional South Australia will have to have an employment test in the state before moving contracts elsewhere.
“This requires agencies to first determine whether the goods and/or services are available within the State or region and then, as part of the tender evaluation, consider the number of South Australian jobs that could be created through awarding the contract to a local company,” South Australian Treasurer and Small Business Minister Tom Koutsantonis said.
The Minister hopes the new measures will stimulate the local economy and mean that local businesses don’t miss out on lucrative deals.
“While price is one factor in ensuring Government receives value for money from its procurement, successful contracts should also support local employment and investment,” he said.
A minimum weighting of 5 per cent now applies for local jobs, investment and supply-chain opportunities, with the option to lift the weighting based on the merit of the proposal.
For large jobs in metropolitan Adelaide the weighting will be a minimum of 10 per cent in key economic areas of heavy and civil engineering construction; professional, scientific and technical services; non-residential building construction; and electrical equipment manufacturing.
The reform adds to the Tender Ready project between the State Government and Business SA, aimed at making sure more small businesses are successful in winning Government contracts.