The McGowan Government will implement changes to procurement of works contracts from today (July 22) to make it easier for local businesses to work with government agencies.
The Department of Finance will provide a co-ordinated response with agencies to introduce changes to works procurement that includes:
- allowing agencies to purchase direct from a local business up to $250,000;
- lifting the threshold for public tender processes up to $500,000 when at least one local business is involved; and
- enabling agencies to obtain written quotations, in place of a tender, between $250,000 and $500,000, where one or more local businesses can supply.
These are temporary changes established under the Procurement Act 2020 (the Act) to boost the local economy and businesses during the pandemic. These changes will be in place until the end of 2020.
The Act establishes a cohesive procurement framework for all government agencies and will help accelerate the State’s economic recovery during the COVID-19 pandemic.
To further assist during the COVID-19 pandemic, agencies are also required to consider how their procurement processes will impact local businesses and if programs of work can be made more accessible to small and medium enterprises.
As stated by Finance Minister Ben Wyatt:
“In May 2020, when I announced changes for goods and services procurement, I committed to implementing similar measures for works procurement to support the recovery of the building and construction industry.
“The new Procurement Act provides government with central procurement leadership and a consistent framework for all types of procurement.
“The new Act has allowed us to take urgent action to implement temporary changes to works procurement that will enable agencies to stimulate our local economy by making it easier to contract with local businesses.
“The State Government is doing all it can to stimulate our local economy and create WA jobs as the pandemic continues to impact the State.”