Portrait shot of Michelle Mitchell

Frequently asked questions

  1. How does the Buy Local Plan support Territory businesses?
  2. Does this introduce red tape to the procurement process?
  3. Does the plan increase the costs of procurement for government?
  4. Will the plan result in only local businesses winning work?
  5. How will this plan work for procurement of specialist equipment and services not available within the Territory?

1. How does the Buy Local Plan support Territory businesses?

One of the ways the Buy Local Plan supports Territory businesses is by increasing their opportunities to tender for and win government work. Specifically:

  • For tenders worth up to $100,000, locals have increased opportunity to tender. This enables more Territory Enterprises to put their case forward and potentially win more Government work. (For further information go to Opportunities for Territory Enterprises to quote)
  • For larger projects, the plan holds companies accountable for their commitments to use local subcontractors and suppliers (For further information go to Contractual terms and conditions)

The plan also focuses heavily on improving the skills and capabilities of procurement staff in recognising and realising local content and benefit opportunities at all stages of the procurement and contract management lifecycle. This benefits local businesses by ensuring that the Buy Local Plan is applied and evaluated in a consistent, objective and defensible manner. (For further information go to Capability development)

2. Does this introduce red tape to the procurement process?

No. This plan is consistent with NT Government’s Red Tape Reduction Strategy and is designed to add no additional red tape to the procurement process. Most aspects of the plan involve changes to internal government processes and policy, with minimal procedural changes for business (for example, go to Consistency and quality of assessment and Agency planning). This allows businesses to focus on investment, innovation and productivity.

3. Does the plan increase the costs of procurement for government?

There is no evidence to suggest that increasing focus on local content increases the cost of procurement for government. To the contrary, all of the available evidence suggests that focusing holistically on local content and benefits improves value-for-Territory outcomes.

4. Will the plan result in only local businesses winning work?

Under the Buy Local Plan, Territory Enterprises do not get an automatic advantage.

When bidding for government work, local businesses still need to be competitive and put their best foot forward in tender responses, demonstrating clearly how they can deliver local benefits and overall value-for-Territory.

The Department of Trade, Business and Innovation offers numerous programs, grants and other forms of support to local businesses to enhance their competitiveness and their ability to respond to tenders. (For further information go to start. run. grow.)

5. How will this plan work for procurement of specialist equipment and services not available within the Territory?

Whilst Government is committed to using local suppliers, the reality is that certain types of goods and services cannot be purchased from within the Territory (or even within Australia).

These include highly specialised Police, Fire and Emergency Services equipment and health equipment amongst others.

In these cases, the Buy Local Plan includes exceptions for certain requirements that cannot be complied (such as the mandatory inclusion of Territory Enterprises under Opportunities for Territory Enterprises to quote). However these exceptions are limited and regularly re-visited, so that if a local market develops for certain equipment it can be detected immediately.