City of Coffs Harbour will seek to source goods and services locally where possible while maintaining a value-for-money approach for the community.
Council has endorsed a local preference model for inclusion in the City’s Procurement Policy, which will be presented to a future council meeting for adoption.
Feedback from regional NSW councils indicates local preference procurement policies are widely used and are considered 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 meeting on 28 May, Council adopted a hybrid local preference model that includes a 10 per cent weighting for local bidders in the assessment of quotations and tenders valued at up to $2 million.
The model also includes a tie-break provision under which a local business would be deemed the preferred bidder where its overall score is substantially equal to the highest-ranked submission.
The remaining assessment 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,” Williams said.
To qualify as local, suppliers must demonstrate either a local presence or a contribution to the local economy.
A local preference clause is permissible under 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 procurement documents, applied consistently to all submissions, proportionate to the value and risk of the procurement, and fully documented in the evaluation report.
The inclusion of a local preference provision would not oblige the City to accept any submission that does not represent best value for money or fails to meet mandatory requirements.
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