26 September 2023

New PS purchase rules to boost business

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New rules making it easier for public sector Departments and Agencies to purchase goods and services from private suppliers have been announced by the Minister for Finance to assist local businesses survive the damaging COVID-19 pandemic.

The Minister, Ben Wyatt said the new temporary arrangements would assist the State’s economy and help businesses recover from the impacts of the crisis.

Mr Wyatt said that among the changes, Agencies would now be able to purchase supplies direct from a local business worth up to $250,000, a $200,000 increase on the current limit.

He said the threshold for public tender purchases had been lifted to $500,000 when at least one local business was involved (an increase of $250,000) and Agencies are to be allowed to obtain written quotations, in place of a tender, for purchases between $250,000 and $500,000, where one or more local businesses can supply.

Agencies will also be allowed to extend Government contracts with local businesses for up to two years as a way of giving businesses certainty.

“These are temporary changes to boost the local economy and businesses during the pandemic,” Mr Wyatt said.

“These changes will be in place until the end of 2020.”

He said the Department of Finance would continue to support Agencies and Departments to procure with local businesses, and continue to provide oversight of goods and services contracts over $250,000.

“These measures support the Government’s focus on economic stimulus to maximise business opportunities and support Western Australian jobs in this challenging economic climate,” Mr Wyatt said.

“This will enable Agencies and Departments to award Government work to local businesses sooner and provide flexibility for the State to deliver recovery services.”

He said the temporary measures were important and appropriate for the situation at hand, given the need to balance risk against the urgent need to stimulate the local economy.

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