What Does 'First Consideration' Actually Mean Under the LCA?

"First consideration" is the cornerstone of Guyana's Local Content Act 2021. Section 22 requires that contractors, sub-contractors, and licensees give first consideration to Guyanese suppliers in procurement. But the Act doesn't define "first consideration" with precision — and that ambiguity creates compliance risk.

What the Act Says

Section 22(1): "A contractor, sub-contractor or licensee shall, in the procurement of goods and services, give first consideration to a Guyanese supplier or service provider who is included in the Register."

Section 22(2): "Where a contractor, sub-contractor or licensee considers that a Guyanese supplier or service provider is not available or is unable to provide the goods or services required, the contractor, sub-contractor or licensee shall provide a written explanation to the Secretariat."

What It Means in Practice

First consideration doesn't mean you must always choose the Guyanese supplier. It means you must:

1. Actively seek Guyanese suppliers on the Local Content Register
2. Evaluate their bids on fair and equitable terms
3. Document your decision — whether you chose the Guyanese supplier or not
4. Explain in writing if you bypassed a Guyanese supplier for a foreign one

The key is documentation. If a Guyanese supplier bids on a contract and you choose a foreign company instead, the Secretariat will want to see why. Price alone may not be sufficient justification — the Act implies a preference for local suppliers even if they're not the cheapest option.

How the Secretariat Enforces It

The Secretariat reviews your procurement data in the half-yearly report. They look at:

• Local content percentage by service category
• Written explanations for foreign supplier selections
• Patterns — consistently bypassing Guyanese suppliers raises flags

The Secretariat also receives complaints from Guyanese suppliers who believe they were unfairly bypassed. These complaints trigger investigations.

Common Misconceptions

"First consideration means we just have to look at local suppliers." No — you have to actively seek them out, evaluate them fairly, and document the process.

"We can choose the cheapest option regardless of origin." Not necessarily. The Act's intent is to build Guyanese capacity, and the Secretariat interprets first consideration broadly.

"This only applies to large contracts." The Act applies to all procurement, regardless of size.

Best Practices

1. Maintain a database of LCS-registered suppliers in your service categories
2. Include LCS-registered suppliers in every RFQ/RFP process
3. Document your evaluation criteria and scoring before receiving bids
4. Keep written records of every procurement decision, especially when selecting foreign suppliers
5. Report first-consideration compliance accurately in your half-yearly reports