When a South Australian Government agency buys ICT services, price and technical capability are not the only things being scored. Under the South Australian Industry Participation Policy (SAIPP), many procurements also assess the economic contribution a supplier will make to the State. For Adelaide ICT SMEs, this is one of the few evaluation areas where being local is a genuine, scoreable advantage — but only if you explain it with evidence. This guide covers what the policy is, what buyers look for, how to write about it in capability statements and tender responses, and how to show SA benefit when you are subcontracting to a larger prime.
What the SA Industry Participation Policy is
The SAIPP is the State Government’s policy for making sure capable South Australian businesses get a full, fair and reasonable opportunity to compete for government contracts, and that government spending delivers economic benefit to the State. It is overseen by the Industry Advocate, established under the Industry Advocate Act 2017 and supported by the Office of the Industry Advocate (OIA).
The policy applies to goods, services and construction procurement by state government agencies above set value thresholds, and to some other forms of government expenditure. In practice, ICT suppliers usually meet it in two forms:
- The Economic Contribution Test (ECT) — a short set of questions in mid-range procurements about where your workforce, supply inputs and business operations are based.
- An Industry Participation Plan (IP Plan) — a more detailed commitment document required for higher-value procurements, scored on labour (SA jobs), supply inputs and capital associated with the contract.
The exact value thresholds, minimum evaluation weightings and templates are set out in the current policy and its Procedural Guidelines, and they are updated from time to time. Always check the version referenced in the tender documents and the Industry Advocate website rather than relying on figures from an older bid.
Why it matters in ICT tenders
ICT work is often delivered by small teams, remotely, using global cloud platforms. That can make it hard for evaluators to tell an Adelaide supplier apart from an interstate or overseas one on paper. The SAIPP gives buyers a structured way to recognise local delivery. Where it carries a formal weighting, a clear and credible response can change the outcome between two bids that are otherwise close on value for money.
It can also matter on panels. Industry participation requirements can apply to panel arrangements and to work procured through them, so read the SAIPP section of both the panel documents and each request for quote. See our guide to SA Government ICT panels for how panels fit into the buying process.
What buyers look for
The SAIPP measures economic contribution, not good intentions. Evaluators generally look for concrete, checkable information in these areas:
| Area | What evaluators want to understand | Useful evidence |
|---|---|---|
| Local employment (labour) | How much of the contract work will be done by people based in South Australia | Named roles and where they are based; estimated share of labour hours delivered from SA; any new roles or apprenticeships the contract would support |
| Supply chain and inputs | Whether you will buy goods and services from SA businesses to deliver the work | Named SA subcontractors or partners and what they will do; local procurement of hardware, hosting support, design or testing services where relevant |
| Capital and operations | Whether the business has, or will invest in, an operating presence in the State | Office location, length of time operating in SA, local tooling or facilities, and planned investment tied to the contract |
| Skills and capability transfer | Whether the agency and the local workforce will be more capable at the end of the contract | Handover plans, documentation, training sessions for agency staff, mentoring or graduate involvement |
| Aboriginal and broader participation (where relevant) | Whether the tender includes Aboriginal economic participation or other social procurement expectations | Engagement with Aboriginal businesses or employment commitments only where you can genuinely deliver them; follow the specific tender requirements |
Not every procurement asks about every area. Read the evaluation criteria and response schedules carefully and answer exactly what is asked.
Writing it up: evidence, not adjectives
The most common weakness in SME responses is a paragraph that says “we are a proud local business committed to South Australia” and nothing else. Evaluators cannot score that. Stronger responses are specific, measurable and honest.
In your capability statement
- State your ABN, SA office address and how long you have operated in South Australia.
- Say where your delivery staff are based. If your core team is in Adelaide, say so plainly.
- List the types of local partners you work with (for example accessibility testing, design or specialist security) without naming organisations you have not agreed terms with.
- Keep a short “SA economic contribution” section you can reuse and adapt. Our government capability statement shows one way to present this.
In a tender response or ECT
- Quantify where you can. “We estimate around X% of labour hours will be delivered by Adelaide-based staff” is scoreable. Base the estimate on your resourcing plan so it survives a clarification question.
- Name roles, not just headcount. “Project lead, solution architect and two developers based in Adelaide” is clearer than “a local team”.
- Separate current state from commitments. Be clear what is true today and what the contract would enable, such as a new hire or a local subcontract.
- Link benefit to the work. Explain how local delivery helps the agency: face-to-face workshops, on-site user testing, same time zone support, and knowledge transfer to agency staff.
- Keep it consistent. Your SAIPP response, resourcing plan, pricing schedule and key personnel CVs should tell the same story. Inconsistencies are easy for evaluators to spot.
- Do not overcommit. IP Plan commitments may be monitored and reported against during the contract. Commit to what you can deliver and report.
For the wider tender picture, including registration on SA Tenders and Contracts and the documents to prepare in advance, read how small IT businesses can win SA Government ICT work.
Partnering with primes: showing SA benefit as a subcontractor
Many larger ICT contracts go to national or global prime contractors. Primes bidding for SA Government work also have to address the SAIPP, and a capable local subcontractor can strengthen their response. For an Adelaide SME, this is a practical route into bigger projects.
- Make your local contribution easy to include. Give the prime a short, ready-to-use paragraph covering your SA location, staff based in Adelaide, and the scope you would deliver locally.
- Be clear about scope. A defined package of work — for example AI proof of value, accessibility remediation, cloud automation or a specific integration — is easier for a prime to cost and for an evaluator to credit as SA content.
- Agree what will be claimed. Confirm in writing how your participation will be described, and make sure the labour share the prime attributes to you matches your actual resourcing.
- Be findable. Primes often search the ICN Gateway and supplier websites for local capability. Keep your profile, website and capability statement current.
Teaming works best when the SME brings a distinct specialist capability rather than duplicating what the prime already has. Our AI consulting, application development and DevOps and cloud services are examples of packages that can sit cleanly inside a larger program.
A practical checklist before your next bid
- Download the current SAIPP and Procedural Guidelines, and check which version the tender references
- Prepare a reusable SA economic contribution summary: ABN, office, years operating, where staff are based
- Build a simple resourcing model so you can estimate the SA share of labour hours for any bid
- Keep a list of potential SA partners and what each could deliver, with their agreement to be named
- Plan knowledge transfer and handover as part of delivery, not as an afterthought
- Make sure your SAIPP answers match your CVs, pricing and delivery plan
- Ask the Office of the Industry Advocate or the procurement contact if a requirement is unclear
This article is general guidance, not legal or procurement advice. Requirements differ between procurements, so always follow the tender documents and current policy.
Talk to an Adelaide team
If you are an agency or council scoping an ICT, AI or cloud project, or a prime looking for an Adelaide delivery partner, see our capability statement or discuss a tender or teaming opportunity. We reply within one business day.