Introducing a Local Content test into all government quotes and tenders, worth a minimum of 30% in tender evaluations

Under the Buy Local Plan, the standalone LDVA tender assessment criteria is replaced by the Local Content test. Agencies must allocate a minimum weighting of 30% to the Local Content test criteria.

A key focus of the test is to ask more objective, clearer local content questions in tender documents, rather than subjective or open-ended questions. Objective questions are simpler for industry to respond to, and simpler for evaluators to assess relative to other responses. This will lead to more consistency of outcomes for industry.

Using the tenderer’s proposed local content as an input, the test seeks to determine the resulting local benefits that will be provided to the Territory economy and community if the tenderer is awarded the contract. Benefits may be directly related to the contract (such as the benefit of the company’s local knowledge, retaining jobs and providing training opportunities), but there can also be indirect, flow-on benefits for the community (such as economic stimulation and broader community activity) including benefits that outlast completion of the contract.

Four sectors in a donut chart: agency planning, tendering (highlighted), contract formation, contract management. A model Local Content test has been produced and made available to all agencies, with the expectation that agencies tailor this as appropriate for their own activity. While the Local Content test assessment criteria will vary depending on the nature of the procurement, typically it will include:

  • employment
  • up-skilling (including apprenticeships, formal and informal training)
  • local industry participation (as contractors and part of the supply chain)
  • local industry development initiatives
  • Indigenous development initiatives
  • regional development initiatives.