The McGowan Government is implementing procurement changes for goods and services contracts to give Western Australian businesses a boost during the COVID-19 pandemic.
The changes, to take effect from June 2, 2020, will make it easier for government agencies to award and extend goods and services contracts with local businesses.
This will assist the Western Australian economy and local businesses recover from the economic impacts of COVID-19.
The procurement changes for goods and services include:
- allowing agencies to purchase direct from a local business up to $250,000 (a $200,000 increase on the current limit);
- lifting the threshold for public tender processes up to $500,000 when at least one local business is involved (an increase of $250,000);
- 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; and
- allowing agencies to extend government contracts with local businesses for up to two years to give businesses certainty.
These are temporary changes to boost the local economy and businesses during the pandemic. These changes will be in place until the end of 2020.
The Department of Finance will continue to support agencies and departments to procure with local businesses, and continue to provide oversight of agencies goods and services contracts over $250,000.
As stated by Finance Minister Ben Wyatt:
“These measures support the Government’s focus on economic stimulus to maximise business opportunities and support Western Australian jobs in this challenging economic climate.
“This will enable agencies and departments to award Government work to local businesses sooner and provide flexibility for the State to deliver recovery services.
“Our focus is to provide immediate support to businesses that supply goods and services to Government.
“Following the passing of the Procurement Bill 2020, similar measures can, and will be, implemented for works procurement to support the recovery of the building and construction industry.
“These temporary measures are important and appropriate for the situation at hand, given the need to balance risk against the urgent need to stimulate our local economy.”
