Report 25: 2017

Local Content in Government Procurement

Audit focus and scope

This audit focuses on the Buy Local Policy and how it has been implemented by government agencies. For the purposes of the audit we excluded policies aimed at Aboriginal and disability organisations.

From 2,593 contracts valued above $750,000 in the 5 years to 30 June 2017, we sampled 100 to assess the proportion awarded to WA companies. A separate sample of 23 contracts was analysed more closely to assess how local content was treated in the request for tender, evaluation of submissions, contracting and delivery.

A sample of 23 contracts was obtained from (Appendix 2):

  • Department of Finance
  • Department of Communities
  • Department of Education
  • Main Roads WA
  • Horizon Power.

The Department of Finance, the Department of Primary Industries and Regional Development, Regional Development Commissions and the Department of Jobs, Tourism, Science and Innovation (formerly Department of Commerce) provided additional information.

The Chamber of Commerce and Industry WA and Regional Chambers of Commerce and Industry WA assisted the audit by facilitating a survey of members and a roundtable discussion. The survey asked about businesses’ experience of the Buy Local Policy. It was conducted online and received 64 responses.

This was a broad scope performance audit, conducted under section 18 of the Auditor General Act 2006 and in accordance with Australian Auditing and Assurance Standards. Performance audits focus primarily on the effective management and operation of agency programs and activities. The approximate cost of tabling this report is $251,000.

Page last updated: December 5, 2017

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