City of Coffs Harbour Council has endorsed a ‘Local Preference’ model which will prioritise the sourcing of goods and services locally where possible, while maintaining a value-for-money approach for the community.
The model, which is set to be included in the City’s Procurement Policy, will be presented to a future council meeting for adoption.
The Council says feedback from regional NSW local governments indicates local preference procurement policies are widely implemented and regarded as effective in supporting local economic outcomes.
“The City is one of the biggest organisations on the Coffs Coast and we want to see local industry engage in business with the City,” Mayor Nikki Williams said.
“When local businesses are successful in the bidding process for City work, it can lead to a positive broader benefit in the local economy.
“That said, it’s essential the procurement process is transparent, grounded in integrity and above all achieves value-for-money for our ratepayers.
“I note the NSW Government is moving toward its own Local Procurement Policy which will prioritise local workers and businesses with a 30 per cent tender weighting for local jobs and skills, local content, and small and medium business participation.”
At its 28 May meeting, Council adopted a hybrid Local Preference model which includes a 10% weighting for ‘local’ bidders in the overall assessment for quotations and tenders up to $2 million. Additionally, there’s a tie-breaker rule where a local business would be deemed as the preferred bidder if its overall score was substantially equal to the best in the pool.
The remaining weighting is allocated to price, capability, methodology and other relevant criteria.
“This model provides a clear audit trail and aligns the City with regional best practice,” Mayor Williams said.
To qualify as ‘Local’, suppliers would have to demonstrate either a local presence or a contribution to the local economy.
A Local Preference clause is permissible within the existing legal framework governing local government procurement in NSW provided it is applied transparently, proportionately and in accordance with statutory requirements.
The use of Local Preference must be clearly stated in all procurement documents, applied uniformly to every submission, matched appropriately to the procurement’s value and risk and thoroughly recorded in the evaluation report.
A Local Preference inclusion would not obligate the City to accept any submission which failed to offer best value for money or did not meet the City’s mandatory requirements, the Council says.
