- Changes to procurement of both goods and services; and works contracts to be extended
- Measures continue to stimulate the economy by reducing red tape for local businesses to do more work with Government
The McGowan Government will extend procurement changes, announced earlier this year, for both goods and services and works contracts to continue to support Western Australian businesses during WA's COVID-19 recovery.
The measures, which were originally scheduled to finish at the end of 2020 but have now been extended to May 31, 2021, make it easier for government agencies to award and extend goods and services and works contracts with local businesses.
The extension to the procurement changes include:
- allowing agencies to purchase direct from a local business up to $250,000 (a $200,000 increase on the current limit);
- lifting the threshold for public tender processes up to $500,000 when at least one local business is involved (an increase of $250,000);
- 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; and
- providing certainty to businesses by allowing agencies to extend government goods and services contracts with local businesses for up to two years where it represents value for money.
To date the changes have been applied in over 300 goods and services contracts which has resulted in more local businesses receiving opportunities to work with government and provided stability for suppliers with existing government contracts.
The threshold changes also applied to over 250 works contracts across the State worth over $46 million between July and December 2020, further demonstrating improved outcomes for Western Australian businesses and the ability for government to rapidly implement policy changes across all areas of procurement.
The Department of Finance will continue to support agencies and departments to procure from local businesses and continue to provide oversight of agencies' goods and services; and works contracts over $250,000.
Comments attributed to Finance Minister Ben Wyatt:
"The extension of these measures demonstrates the McGowan Government's commitment to supporting WA businesses as we continue the State's COVID-19 economic recovery.
"These measures continue to make it quicker and easier for government agencies and departments to work with local businesses."
Minister's office - 6552 5900