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.

Aims to maximise opportunities for Western Australian businesses when bidding for State Government contracts.

This policy can make your offer more competitive at the evaluation stage 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 you may be eligible for 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 outlined below.

To view this policy go to the Buy Local Policy page.

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

A bid that includes goods, services or other items that are sourced directly from overseas may be evaluated as though the portion of the price relating to the imported content has increased by 20%.

As part of the Buy Local Policy, businesses with an office within a prescribed distance from the contract location may have their entire tendered price evaluated as though it was reduced by 5% (up to a maximum of $250,000 - GST inclusive).

Eligibility

To be eligible for this preference, your business must comply with the relevant conditions contained in the request document. Such conditions may include but may not be limited to:

• maintaining a permanent operational office within a certain distance of the contracted works (as described in the tender)
• having an established office from which it has conducted business for at least six months before the tender was released
• being registered or licenced to operate in WA
• 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. Types of proof may include:

• utility or electricity bills, land line phone bills
• lease agreements
• invoices issued to or from the regional office
• documents that show work has been done or managed from the regional office

Exemptions

The regional business preference does not apply where offers from the following locations are included in the final analysis of tenders:

• an Australian State or Territory
• New Zealand
• a country where a free trade agreement is in place and the contract value is over a certain amount

Businesses that purchase materials or services from ‘local’ businesses may have their tendered price evaluated as though it was reduced by 5% (up to a maximum of $250,000 (GST inclusive) of the 'regional content' portion of their price')..

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 prescribed distance defined in the contract.

Regional content does not include costs for:

• travel
• accommodation
• meals
• wear and tear on plant and equipment
• goods and services supplied by government agencies or the contract principal

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 $6 million (including GST), you must submit a monthly report showing you have met the claims made in your tender. Consultancy contracts and construction contracts valued under $6 million may also be required to report at times.

Exemptions

The regional content preference does not apply where offers from the following locations are included in the final analysis of tenders:

• an Australian State or Territory
• New Zealand
• a country where a free trade agreement is in place and the contract value is over a certain amount

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

Exemptions

The imported content impost does not apply to services purchased separately or where the goods, services or other items are purchased from:

• New Zealand
• a country where a free trade agreement is in place and the contract value is over a certain amount

Declaring imported content

Where 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 from overseas
• ensure all costs of importing the goods, services or other items are included