Extended procurement measures supporting local business

News story
Continuing to make it quicker and easier for local businesses to work with government.
Construction workers shaking hands over a document

The Minister for Finance recently announced extensions to procurement thresholds to continue reducing red tape and supporting local businesses to work with Government. Originally scheduled to finish at the end of 2020, the measures have been extended to 31 May 2021 to continue supporting the State’s COVID-19 recovery. 

The extensions apply to both goods and services and works contracts and include:

  • 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
  • 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
  • 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.

The changes have already been applied to over 300 goods and services contracts, and over 250 works contracts across the State worth over $46 million. They have delivered improved outcomes for Western Australians by supporting the local economy and providing stability for suppliers with existing government contracts.

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.

Page reviewed 21 December 2020