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Local Buy - Grow Local

Meet your obligations under the Local Government Act while at the same time helping to develop the competitiveness of your local suppliers with Local Buy’s “Grow Local” initiative.

Pursuant to s.104 of the Local Government Act 2009, Queensland local governments are required to consider the development of competitive local business and industry when awarding contracts.

One way to achieve this is through the use of pro local weightings (eg local suppliers receive an evaluation weighting bonus of 10%). Local Buy believes that there are more effective ways of achieving the aims Queensland local governments are seeking.

Problems with the use of a pro local weighting bonus

  • Local ratepayers may end up paying more for the same services.

  • Local suppliers may take advantage of the weighting bonus to increase rates.

  • It does not necessarily develop a businesses’ competitiveness if they are always subsidised (in fact it may encourage some businesses to remain uncompetitive).

Alternative solutions

  • Put in place a local business development strategy.

  • Engage local business development officers.

  • Encourage local business procurement training (especially around responding to tenders and quotations).

  • Rather than a fixed percentage applied based on location, make one of the evaluation criteria (worth say 15%) the question, “what does your business contribute to the local government area”. Make local suppliers earn their local supplier preference.

How Local Buy can assist

  • Local Buy pre-qualifies local suppliers and offers them the opportunity to compete for business outside the local government area.

  • Using Local Buy arrangements allows local government procurement officers focus on the strategic side of procurement (ie they can spend time undertaking market analysis rather than spending all their time evaluating responses to tenders).

  • Local Buy can arrange local business procurement training.

  • Local Buy arrangements are at arm’s length and reduce the risk of conflicts of interest.

  • Local Buy undertakes a comprehensive evaluation process.

Competitive local business isn’t developed by removing competition. It is achieved through facilitating those businesses to grow and achieve their potential.

Local Buy, through its Grow Local initiative, allows local governments to focus on the strategic elements of their local supplier engagement. We do however require your help.

When you see a Local Buy arrangement coming up for tender, please speak to your local suppliers and make sure to pass on the opportunity.

Rather than only supplying to one council, Local Buy pre-qualified local businesses will be able to develop their competitiveness by gaining the opportunity to supply to local governments across Queensland.