Guides / AU procurement / Local content

Policy criteria

A target is a gate when it is a mandatory or a weight. Not when it is a press release.


Australian public tenders increasingly allocate 10% to 20% of non-price evaluation weight to local industry participation, SME quotas, and Indigenous business engagement. Treating economic benefit requirements as boilerplate text after drafting leads to score penalties. Part of our guide on Australian government procurement; see also the Commonwealth Procurement Rules.

Published: 2 September 2026 · By Bill · Reviewed by Andre · selrob

Takeaways

  • Mandatory, weighted, or reporting: only the first two change the call today.
  • Held today. A thin schedule written for the response will be read as that.
  • SME and Indigenous status attach to entities, not to adjectives in a method statement.
  • If it is a mandatory you do not meet, the call is no.

What do these targets actually do in a pack?

They appear as a pass/fail, a published percentage, or a reporting obligation after award. Increasingly they are more than one. A target that lives only in the buyer’s annual report is not a row on your scorecard. A target that is 15 percent of the evaluation, or a pass/fail on Indigenous participation, is a gate.

Local content can be labour, supply, or value-add onshore, sometimes a state industry plan. SME is a status. Indigenous Procurement Policy is a Commonwealth policy that packs turn into criteria. The letters on the cover do not change the test: held today, or scored honestly.

When is it a no-bid?

When it is a mandatory you do not meet this morning: the entity is not an SME, the Indigenous enterprise is not in place, the local presence does not exist. Question 6 on the scorecard is a hard gate. “We can get a partner” is how firms write conforming fiction and then cannot deliver.

When it is weighted, score the evidence you can put on the page. A thin Indigenous participation schedule that exists only in the response will be read as that. Evaluators have seen it. So has every debrief that followed.

What about panels and flow-down?

Head agreements sometimes lock reporting for the life of the deed. Call-offs inherit it. If you cannot produce the reports, the seat has a cost you did not price. See panels. Do not join as a trophy and discover the reporting in year two.

Subcontracting to meet a target is still a named subcontractor, confirmed, today. A logo on a slide is not a subcontract.

How should the gate treat it?

Write the criterion, the type (mandatory or weighted), and the evidence held today. If mandatory and missing, no-bid that afternoon. If weighted and thin, it is strategy: are you bidding to win, or bidding to look like you care. Visibility is not a strategy.

This is not legal or policy advice. The pack and the relevant instrument outrank this page. Where the criterion would change the call, name an owner and a date.

Keep reading

Elsewhere in this guide.

Questions

Worth answering before you close the tab.

Do SME or Indigenous targets change a bid/no-bid?

When they are a mandatory you do not meet today, yes: that is a no-bid. When they are weighted, score the evidence you can actually put on the page.

Can we partner to meet a local-content mandatory?

Only if the partner is confirmed today. A Thursday conversation for a Friday close is not a mandatory held.

Is a policy target in an annual report a criterion?

Not by itself. The pack decides: mandatory, weighted, or a reporting line after award.

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