The Government of the Northern Territory will replace the current Local Development and Value Adding (LDVA) policy framework with a new “Buy Local” policy to provide local businesses with the opportunity to compete for a greater percentage of the $3 billion in government work awarded each year.
The new policy, which was announced by Business Minister Peter Styles on Sunday, was developed in response to a number of complaints from the business community – predominantly about the complexity of the LDVA’s procurement process – and in extensive consultation with key industry associations through a number of roadshows roundtables, workshops and business breakfast events.
Minister Styles said the suite of measures introduced in the “Buy Local” policy were aimed at improving how local content and benefits were recognised, evaluated and realised.
According to him, the new policy will drive greater emphasis on achieving local content and benefits from NT Government procurement. These measures inlcude:
- Introducing mandatory local involvement in all requests for quotes worth up to $100,000.
- Increasing the minimum weighting of local content and benefits from 20% to 25% in all quotes and tenders.
- Ensuring local content and benefit commitments included in tender responses are carried through into the contract terms and are monitored throughout.
- Establishing an independent panel of Territorians to review and advise on Buy Local aspects of Tender responses and contracts, estimated to be worth more than $5 million.
“The Industry Capability Network NT (ICN NT) will be a key partner in the implementation of this policy, and all local businesses are encouraged to register and ensure their full capabilities are detailed within their ICN profiles,” the Minister said in a statement.
“The ‘Buy Local’ policy will be implemented from January 2016 and businesses are expected to see immediate benefits in the form of more opportunities to tender and clearer, simpler tender documents. Nominations for the representatives to the independent panel will be sought before the end of the year.”