All capital grant recipients must now buy from a Territory enterprise, unless it can be proven, through a competitive process that there are no suitable Territory enterprises able to supply the item or service.
A capital grant is for capital projects including the construction of new facilities, extension to or upgrading of existing facilities and the purchasing of equipment. It does not include general repairs and maintenance on existing assets.
Agencies should clearly identify to applicants where a grant is considered to be a capital grant.
A Territory enterprise is an enterprise operating in the Northern Territory (NT) that has a significant permanent presence in the NT and employs NT residents.
A competitive process that includes local content
A competitive process is where several quotes or tenders have been received and assessed against pre-determined evaluation criteria to establish best value for money.
The evaluation criteria must include local content weighted at a minimum 30% and no other individual criteria are to exceed 30%. Examples of other criteria include quality, time and price.
The invitation to submit quotes or tenders must include one or more Territory enterprises.
Local content broadly refers to the development of business and industry in the NT and support for Territory enterprises.
The types of questions you may ask in determining local content may cover:
- local industry participation
- local employment and training
- Indigenous employment.
Contract and sub-contract arrangements are equally important considerations in understanding the level of Local Content.
Yes, there are certain reporting, audit and compliance requirements. The agency issuing the grant will determine the level of reporting required and this will be reflected in the grant agreement.
The grant recipient will need to adhere to any reporting requirements and the agency will need to keep records on local content in capital grants.
The grant-issuing agency will be able to assist in providing advice on the grant process including the application of the Buy Local requirement.
For more general advice on procurement and assessing best value for money, contact:
Phone: (08) 8999 5212
Last updated: 19 September 2016