The Queensland Charter for Local Content (the charter) provides a framework for encouraging government agencies to apply best practice in local content procurement while minimising the compliance burden on government agencies and contractors and ensuring full, fair and reasonable opportunity for local suppliers.
The charter has the core objective of maximising local content through greater participation of capable local industry in major government procurement activities. In addition, other objectives of the charter are:
• encouraging more effective and adaptive approaches to maximising local content
• applying greater transparency in the expenditure of Government funds
• providing greater certainty for government agencies in the engagement of local content
• adopting an efficient and effective tracking and review process for local content outcomes.
The charter does not mandate that government agencies must use local suppliers; rather it is about providing a mechanism for government agencies to be able to effectively and efficiently give consideration to a wide range of potential suppliers when making procurement decisions.
The charter supports government agencies to embed local content principles within their procurement practices and procedures. The benefits of embedding local procurement principles in government purchasing include:
• supporting the Queensland Government’s objective of value for money in major procurements by enabling purchasers to consider a wider range of potential suppliers and encouraging greater competition
• providing market opportunities for local companies
• demonstrating equivalence with private sector best practice.
These guidelines are designed to highlight the features of the charter and assist government agencies to support local industry involvement in major procurement. These guidelines should be read in association with the charter.
The Department of State Development (DSD) is responsible for administrative oversight of the charter, provides advisory services for proponents and facilitates industry development support to assist suppliers to improve their capability and capacity to effectively tender for government projects, where the market does not otherwise provide these services.
Government agencies are encouraged to consult with DSD on:
• the application of local content principles within their procurement procedures
• how industry development support programs may enhance local content outcomes and project objectives.
Any queries in relation to the charter or these guidelines should be directed to:
Department of State Development
tel +61 7 3452 7259
Copies of these guidelines, the charter and supporting documents and templates are
available at www.dsd.qld.gov.au/local-content.
Principle 1 - Full, fair and reasonable opportunity
Principle 2 - Value for money
Principle 3 - Regional and industry development
Principle 4 - Transparency of process
Principle 5 - Compliance with international obligations
Support to increase local content:
The Queensland Government aims to optimise local content by maximising participation of capable local industry and to minimise the compliance burden on project proponents and their contractors.
DSD can provide early engagement with government agencies to assist in formulating an approach to promoting local content in relation to procurement and to help identify those goods and services that could potentially be supplied by capable local companies.
The government partners with ICN Qld to provide a suite of services to support government agencies to meet their local content obligations. These include:
• supporting project proponents establish a Gateway listing including goods and services as a forward procurement tool
• providing early visibility of project opportunities to local suppliers through Gateway and targeted briefing sessions
• helping increase competition by providing access to a wider range of capable local industry that can deliver value for money.
As a part of the ICN national network across Australia and New Zealand, ICN Qld has access to a comprehensive capability data base (www.gateway.icn.org.au) of more than 45,000 ANZ companies, particularly in the manufacturing, construction and related services sector.
Procurements subject to the charter:
The charter does not mandate that government agencies must use local suppliers, rather it is about providing a mechanism for government agencies to be able to effectively and efficiently give consideration to a wide range of potential suppliers when making procurement decisions.
Taking this into account, the following procurement categories are captured under the charter.
• procurements with a total Queensland Government contribution of greater than $5 million (exclusive of GST), or greater than $2.5 million (exclusive of GST) in regional Queensland, excluding ICT products and services
• any Public Private Partnerships (PPP) for projects and capital asset acquisitions greater than a capital value of $5 million (exclusive of GST)
• strategically significant procurements as determined by the procuring government agency
• Standing Offer Arrangements where expenditure is projected to exceed $5 million (exclusive of GST) over the life of the arrangement
• Queensland Government grants greater than $2.5 million (exclusive of GST); and
• large infrastructure projects where funding of over $20 million is provided by the Commonwealth through the Queensland Government.
Download the Queensland Charter for Local Content Project report example workbook in the publications section. Select Queensland region.