Regional businesses and working with regional businesses

Where WAIPS applies, you will be required to submit a participation plan outlining how you will support and promote local industry. Your plan will be assessed as part of the evaluation process.

If your offer is successful, you will be required to report against these commitments at the end of the contract, and annually for contracts longer than 12 months..

To view this policy go to the Western Australian Industry Participation Strategy page.

This policy can make your offer more competitive during evaluation if you:

• have a regional office within a set distance of the location of the contract (you may be eligible for the Regional Business Preference).
• work with regional businesses or suppliers located within the set distance of the location of the contract (you may be eligible for the Regional Content Preference).

Similarly, directly importing goods, services or other items may make your offer less competitive due to the Imported Content Impost.

Further information on the preferences and the imported content impost is below.

To view the policy, go to the Buy Local Policy 2022 page.

As part of the Buy Local Policy 2022, eligible regional businesses with an office within a certain distance from the contract location may have their entire tendered price evaluated as though it was reduced. The tendered price will typically be reduced by 5 percent up to a maximum of $250,000 (GST inclusive) however these values may vary between contracts.

Eligibility

To be eligible for this preference, your business must comply with the relevant conditions in the request document. These may include:

• maintaining a permanent operational office within a certain distance of the contracted works (as described in the tender)
• being staffed by at least one person who resides in the region
• being registered or licenced to operate in WA
• having had its office established and has conducted similar businesses and contracting from the office for at least six months prior to current tender release 
• managing and delivering most of the contract from the regional business location

Proving eligibility

You may be asked to prove you are eligible for the preference such as:

• utility or electricity bills, land line phone bills
• lease agreements or local government rates notices
• invoices issued to or from the regional office
• documents that show work has been done or managed from the regional office
• a list of key staff that would be used on the contract that are based within the set distance

Exemptions

The regional business preference does not apply where offers from interstate or New Zealand are included in the final analysis of tenders.

Businesses that purchase materials or services from ‘local’ businesses may have their tendered price evaluated as though it was reduced. Typically, the preference is calculated at 5 percent of the value of the submitted price that is attributed to the use of local businesses up to a maximum of $250,000 (GST inclusive). These values may vary between contracts.

Eligibility

To be eligible for this preference, your business must commit to:

• use local subcontractors and subconsultants
• source materials from local suppliers

To be regarded as 'local', subcontractors, subconsultants and suppliers must be located within the distance defined in the contract.

Internal business costs of the respondent’s employees can also be claimed if the employees:

• are involved in the delivery of contract, and
• permanently reside within the distance defined in the contract.

These costs are calculated by estimating the percentage of time each eligible employee spent delivering the contract.

Eligible regional content can also include costs for:

• travel
• accommodation
• meals

Reporting requirements

Submitting a claim commits you to using the declared subcontractors, subconsultants and suppliers. Where you claim this preference, and the contract price is over $1.5 million (including GST), you must submit a monthly compliance report showing you have met the claims made in your tender.

Contracts valued under $1.5 million may also be required to report at times.

Exemptions

The regional content preference does not apply where offers from interstate or New Zealand are included in the final analysis of tenders

Avoiding common mistakes

Before submitting your claim, ensure that:

• the subcontractors, subconsultants and suppliers are defined as ‘local’ (see eligibility)
• you are clear on the requirements
• you can meet the commitments you make

The imported content impost encourages businesses to purchase goods, services and other items from Australian businesses rather than importing them directly from overseas suppliers.

If the imported content impost is included in the tender, a bid that includes goods, services or other items that are sourced directly from overseas will be evaluated as though the portion of the price relating to the imported content has increased by 20%.

Exemptions

The imported content impost does not apply where the goods, services or other items are purchased from New Zealand or Australian based suppliers who have or may have imported the goods, services or other items. 

Declaring imported content

Where the imported content imposts is included in the tender and you will be using goods, services or other items that you directly purchase from an overseas supplier you must:

• include the imported content on the Form of Tender
• complete the Imported Content Declaration form and list all items sourced directly from overseas
• ensure all costs of importing the goods, services or other items are included.