Government Procurement

In reply to Mr PATTERSON (Morphett) (20 June 2024). (Estimates Committee B)

The Hon. S.C. MULLIGHAN (Lee—Treasurer, Minister for Defence and Space Industries): Due to the recent commencement of the 2024-25 financial year, details in relation to what South Australian businesses will be used in procurement and what percentage of total procurement expenditure does this represent are not yet available for 2024-25.

The details of 2023-24 expenditure on South Australian businesses against total procurement expenditure are currently being finalised and will be made publicly available in the departmental annual report in September 2024.

The Malinauskas government has made significant changes to state procurement policy to make South Australian dollars work for South Australians. The below changes have been made to support South Australian businesses:

Adopt the following principles for government procurement, value for money, creating SA jobs, increasing the numbers of apprentices and trainees in SA, stimulating innovation and new businesses and achieving environmentally sensitive, low carbon, socially-just outcomes.

Mandate SA workers deliver a minimum 90 per cent of labour hours on major infrastructure projects; impose penalties on lead contractors for not achieving these targets.

Require the use of South Australian manufactured products on public housing construction and maintenance programs, where available.

Require departmental procurement staff to undertake regular training on the industry participation polices of government, and education of local industry participants and providers.

Require chief executives to sign off on procurements where the successful tenderer is not South Australian.

Undertake a broad market assessment to identify SA businesses that can deliver projects, goods or services to government and advise departmental procurement staff of industry capability.

Establish an independent complaints process for tenderers who feel they have unreasonably missed out on government work.

Require that apprentices, trainees, Aboriginal workers, and long-term unemployed deliver 20 per cent of all labour hours on major projects.

Assist local business to become tender ready, holding regular industry-specific workshops conducted by the Industry Participation Advocate, helping more local businesses win work.

Only use local project managers, architects, designers, engineers, surveyors, planners, and other professional services providers on government projects.

Broadly publicise government procurement opportunities three months in advance.

Publish an annual project pipeline of coming infrastructure projects over $10 million over the next three years, to enable lead contractors to prepare thoroughly.

Ensure that public projects above $500m are broken into smaller stages / components to allow multiple South Australian companies the opportunity to participate on projects, unless that nature of the project makes this unfeasible; and

Tenders for major projects will be released within 30 days of funding being available for the project.

These changes are producing real results for South Australian businesses and building on the Malinauskas governments strong record of supporting local businesses.'