Creating opportunities through government expenditure
The South Australian Government uses its purchasing power to deliver broader economic and social benefits, including supporting local businesses, creating jobs and driving economic growth.
Agencies are required to:
- use locally manufactured products and services
- seek bids from South Australian businesses
- increase opportunities for South Australian workers, apprentices and trainees
- pay invoices promptly.
Advanced notice so businesses can better prepare
To help businesses prepare for future opportunities, government publishes upcoming procurement activity through the Forward Procurement Plan. This provides suppliers with greater visibility of future demand and more time to prepare for upcoming opportunities.
Environmental and social outcomes
We use procurement to deliver more than just goods and services. Through government purchasing, we seek to create broader social, economic and environmental benefits for South Australia.
When making procurement decisions, agencies consider more than price alone. They also look for opportunities to achieve positive environmental, social and governance (ESG) outcomes that provide lasting value to the community.
For example, procurement can help support a strong, climate-smart economy by encouraging businesses to adopt sustainable practices, reduce environmental impacts and contribute to South Australia's transition to a more resilient future.
Frequently asked questions
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For government procurement, a South Australian business is a business that operates in South Australia and, for the relevant procurement, has more than 50% of the workforce delivering the contract residing in South Australia.
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Government procurement is not just about buying goods and services. Procurement can also support broader economic and community outcomes for South Australia.
Depending on the nature of the procurement, agencies may consider outcomes such as:
- supporting South Australian businesses and jobs
- creating employment and skills development opportunities
- engaging apprentices, trainees and disadvantaged job seekers
- participation by Aboriginal businesses and Aboriginal people
- environmental sustainability and waste reduction initiatives
- opportunities for local businesses to participate in supply chains.
If social or economic outcomes are relevant to a procurement, the requirements will usually be outlined in the procurement documents.
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The Government's Procurement Framework has been updated to reflect the ‘Making the Public Dollar Work’ initiative and to achieve the maximum benefit from government spending.
- The Government has set an initial target to increase the amount spent with SA businesses instead of interstate and overseas suppliers by 5 per cent - which would inject an extra $425 million into the state’s economy.
- A minimum of three quotes must be received for government contracts between $55,000 and $550,000 with at least one quote being from a South Australian business.
- Any contract worth more than $55,000 awarded to interstate or overseas suppliers must be approved by the Chief Executive.
- A broad market assessment will be undertaken to identify SA businesses that can deliver projects, goods and services to government.
- Public authorities are also now required to report data on what percentage of contracts are being awarded to non-South Australian businesses.
- In addition to value for money considerations, public authorities will be required to consider the economic benefit of the procurement to South Australian economy.
- Public projects above $500m will be broken into smaller stages or components to allow multiple South Australian companies the opportunity to participate on projects, unless that nature of the project makes this unfeasible.
If social or economic outcomes are relevant to a procurement, the requirements will usually be outlined in the procurement documents.
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The Government's procurement strategy ensures that public money is spent in a way that maximises benefits for the local community, supports local businesses, drives economic growth and increases local jobs. Initiatives include:
- SA workers must deliver a minimum 90 per cent of labour hours on major infrastructure projects worth more than $50 million
- 20 per cent of all labour hours on major projects must be delivered by apprentices, trainees, Aboriginal workers, and long-term unemployed
- government projects worth more than $55,000 must use local project managers, architects, designers, engineers, surveyors, planners, and other professional services providers.