The Local Content Award is a national Saudi award announced by the Local Content and Government Procurement Authority on May 30, 2022. It aims to raise awareness of local content in the Kingdom of Saudi Arabia and promote successful practices to enhance its level and contribute to its development. The award targets three categories: government entities, private sector establishments, and individuals.
First edition of the Local Content Award
On August 9, 2022, the Local Content and Government Procurement Authority announced the launch of applications for the first edition of the Local Content Award. In this edition, the authority identified three main tracks.
The Local Content Award objectives
The Local Content Award aims to motivate both the public and private sectors, small and medium-sized enterprises, suppliers, and community members to implement practices contributing to enhancing the level of commitment to local content requirements. This reflects the achievement of the objectives targeted by the authority, and it is achieved by promoting the culture of local content, raising awareness of its mechanisms, and expanding the database on local content across sectors.
Tracks of the Local Content Award
The Local Content and Government Procurement Authority identified three main tracks for the award, which include several awards and certificates of excellence for the targeted categories. The first track is dedicated to government entities and consists of two awards: one for entities with high expenditure and another for entities with low to medium expenditure.
In the second track, the authority targets the private sector establishments that achieve greater growth in local content. Additionally, certificates are awarded to the most distinguished establishments in various aspects of local content, including empowering national capacities, development, research, and reliance on national supply chains. This track includes three awards and nine certificates of excellence. The third track is dedicated to individuals who have excelled in providing local services and products.
Evaluation criteria in the tracks of the Local Content Award
The National Content Award relies on several evaluation criteria for each track of the award, as follows:
- The government entities track: The evaluation is based on several elements. The first focuses on cyclical operations, representing 30 percent of the assessment, gauging the extent of application of local content requirements starting from the bidding process, and 20 percent emphasizes the localization of industry, economic participation, and knowledge transfer. Additionally, 15 percent is allocated for the support projects aspect, evaluating the commitment to applying local content requirements in projects executed by companies on behalf of government entities. Projects related to allocation take up 15 percent. The final element focuses on the effectiveness of the team and its responsiveness to the authority, representing 20 percent of the evaluation.
- The private sector establishments track: The certificate of excellence is awarded in three pathways evaluated based on the outputs of the fiscal year 2021 in several areas. The excellence certificate track in empowering national capacities is assessed based on two criteria. The first revolves around the value of local content in salaries, and the second is based on the expenditure on training citizen employees. The certificate of excellence for content in research and development is granted based on expenditure for the development of local suppliers alongside expenditure on research and development. The local content certificate for reliance on national supply chains is determined by the local content in procurement and the local content in asset depreciation.
- For the individual track, it relies on presenting their success stories. The evaluation is based on three aspects: the clarity and coherence of the story represent 25 percent of the evaluation, the results achieved from the project represent 25 percent, and the impact of the project on the local content receives the largest percentage in the evaluation, standing at 50 percent.
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