The union representing manufacturing workers believes Aurora Energy has given a contract to a New Zealand company over a Tasmanian supplier.
The Manufacturing Workers Union says Aurora Energy plans to buy concrete power poles offshore and has overlooked a Launceston business.
It comes a day after the Premier, Lara Giddings, agreed to review the awarding of government tenders to interstate or overseas companies.
The procurement process was a hot topic at the jobs forum in Launceston.
The union's John Short says it is disappointing when foreign and interstate companies are preferenced over local firms.
"There is a company that's able to do that and prepared to put in new machinery to do that but unfortunately it's my understanding that they're not in the race anymore," he said.
In a statement, the state-owned power provider Aurora Energy says it is not appropriate to comment on its tender processes while contracts are still being negotiated.
A Tasmanian economist says the state is not doing enough to preference local companies when it comes to awarding tenders for work.
Economist Bruce Felmingham says in other jurisdictions, a local and a foreign list of applicants are compiled.
"The top two are often compared...that means provided there's not a huge loss of efficiency for providing the service, the contract could be awarded on the basis of that evaluation."