Local Content Authority reduces high-value government contracts to SAR 25 mln

Logo of the Local Content & Government Procurement Authority (LCGPA)

The Local Content & Government Procurement Authority (LCGPA) amended the government contracts classified as high value, to reach or exceed SAR 25 million, instead of SAR 50 million, as of the holy month of Ramadan.
 

The LCGPA affirmed that the mechanisms of local content weight in financial evaluations and the minimum local content requirements apply to these contracts.

It also called on private sector establishments that aim to bid for high-value contracts of SAR 25 million to issue the local content certificate.
 

The Regulations on Preference for Local Content and Local SMEs and Companies Listed on the Capital Market in Business and Procurement Transactions sets two mechanisms for local content preferences in high-value contracts; the local content weight mechanism in financial evaluations, and the mechanism for the minimum local content requirements.
 

The weight of the financial bid shall be 60% (price weight), and the weight of the baseline, the targeted local content percentage, and whether or not the company is listed in the Capital Market during the evaluation shall be 40%. Listed companies have + 5% preference upon financial evaluation.