Riyadh: The Local Content and Government Procurement Authority (LCGPA) has announced the introduction of a local content weighting mechanism for the financial evaluation of government procurement, specifically targeting management consulting and IT services. This new requirement is part of LCGPA's broader strategy to enhance local content and optimize benefits from government procurement processes. According to Saudi Press Agency, the LCGPA will mandate a minimum local content level at the company level for participation in management consulting tenders. This initiative is expected to promote local industry growth and align with the authority's ongoing efforts to develop local content. The authority has set a minimum local content requirement of 30% at the company level, which will be implemented in two phases. Starting April 1, 2027, this requirement will apply to tenders with an estimated value of SAR10 million or more. The criteria will later extend to include tenders valued at SAR5 million or more, begin ning January 1, 2028. The local content weighting mechanism will also apply to IT service contracts. For these tenders, the weighting will commence on April 1, 2027, for projects valued at SAR10 million or more. However, unlike management consulting services, there will be no minimum local content requirement at the company level for IT service contracts. Bidders are required to submit a local content certificate as part of their technical proposals. Companies failing to meet the 30% local content threshold, as indicated in their submitted certificates, will be excluded from the bidding process. This exclusion will be strictly enforced based on the terms and conditions outlined in the tender documents. This strategic move by the LCGPA underscores its dedication to bolstering local content and enhancing regulatory frameworks. It also aims to further localize the management consulting and IT sectors, aligning with market trends and the goals of Saudi Vision 2030.
Home » LCGPA Implements Local Content Weighting for Government Procurement in Consulting and IT Services
LCGPA Implements Local Content Weighting for Government Procurement in Consulting and IT Services
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