New Contracts Launched

Playgrounds, Open Spaces, Modular Structures, Exterior Lighting, Recreational and Associated Infrastructure - LGP308-3

Local Government Procurement is pleased to announce the commencement of the refreshed Playgrounds, Open Spaces, Modular Structures, Exterior Lighting, Recreational and Associated Infrastructure (LGP308-3). The contract commences with 35 contractors and comes into effect from 1st February 2018.

The LGP308-3 scope cover the following categories:

• Playground, Fitness & Sporting Equipment.
• Outdoor Furniture, Site Fittings, Shelters & Shade Structures.
• Exterior, Outdoor & Urban Lighting.
• Demountable/Modular Buildings, Temporary Structure, Pre-fabricated Shed Structures & Exterior Restrooms.
• Playgrounds, Skate Parks, Sporting Fields and Bike/Fitness Tracks.
• Public Parklands, Gardens, Wetlands and Foreshores.
• Soft Landscaping & Outdoor Ground Covers.
• Landscape Structures, Fencing, Retaining Walls, Paving & Masonry.

The panel will be further updated with contractors as outstanding contractual matters become finalised. The current list of successful panel members can be found on the LGP308-3 Buyer’s Guide under the 'Engineering and Works' tab.

Should you require any further information on the Panel requirements, please contact the LGP Contracts Management Team at suppliers@lgp.org.au.

Bulk Fuel, Fuel Card Services and Oils, Lubricants and Vehicle Care Products Panel NPN 1.17

The new Bulk Fuel, Fuel Card Services and Oils, Lubricants and Vehicle Care Products Panel, with an initial 4 approved contractors, came into effect on 1st February 2018 based on a successful tendering process. 

This new Panel covers 3 categories for regularly purchased Bulk Fuel, Fuel Card Services Oils, Lubricants and Vehicle Care Products, all under one header agreement currently available to customers throughout NSW and the ACT.

Bulk Fuel includes:

• Diesel
• B5 Diesel
• B10 Diesel
• B20 Diesel5
• B100 Diesel
• ULP
• PULP
• E10
• Jet Fuel
• AVGAS
• On-site refuelling services
• Supply of assistance in purchasing Bulk infrastructure 

Oils, Lubricants and Vehicle Care Products includes:

• Engine and Gear Oils
• AdBlue
• Automotive Fluids
• Lubricants
• Automotive Chemical Products
• Coolants
• Related specialized Hydraulic, Pneumatic, Fluid Transfer and Lubrication Equipment
• Related Installation services
• Other vehicle care products and accessories (related spares e.g. oil filters)

The panel will be further updated with approved contractors as outstanding contractual matters become finalised.

The current list of successful panel members can be found on the Buyer’s Guide under the 'Fleet and Plant' tab and Bulk Fuel, Fuel Card Services and Oils, Lubricants and Vehicle Care Products” (NPN 1.17).

Should you require any further information on the Panel requirements, please contact Peter Flood, Category Manager on 02 8270 8727 or email.

'Networking in the Bush'

Registration Now Open

LGP would like to extend an invitation to council staff in the Northern, Western and Central NSW regions, to attend the upcoming 'Networking in the Bush' events being held in Coffs Harbour on Thursday 22nd February and Thursday 8 March 2018.

The event aims to further build the capability of procurement in NSW local government. This year we promise to deliver another exciting and informative program covering off on current topics and issues.

This event is free of charge to the local government community and is a great opportunity to network with your peers, gain awareness and knowledge of topics covered and for ongoing professional development. The agenda will be out shortly, however the highlights of the day are as follows:

• Probity session – Phill Scott, Head of Contracts and Tendering
• “Sustainable Choice and ISO20400 Training” – Sara Lindqvist, Sustainable Choice
• The Auditor-General's Mandate and Observations on Procurement Practices – Presenter from the Auditor-General’s Department
• Procurement Practices and LGP Update
• Buy Regional Program – VendorPanel
• Legal Session – Monica Kelly, Prevention Partners

We will also have time for the popular 'Q&A Panel Session' that will be open to the floor to ask questions and discuss ideas with the attendees on the day and the guest speakers.

LGP Regional Procurement Training

Coffs Harbour -  Wednesday 21st February 2018
Dubbo - Friday 9 March 2018

While you attend the 'Networking in the Bush Event' at Coffs Harbour and Dubbo, we would like to provide you with the opportunity to attend procurement training locally. Based on your responses, we can offer one of the following.

List of courses:

• Procurement for Local Government
• Contract Management Essentials
• Planning and Specifications Development
• Evaluation, Supplier Selection and Contract Establishment
• Project Management for Procurement

Course Fee: $600 (ex. GST)
Duration: Full-day (9:00 am - 4:30 pm)
Location: Coffs Harbour and Dubbo (Venue TBC)

Please register your interest now so that we can plan for the delivery of the most sought after training courses regionally for you.

Simple is Often Best

by Tenders and Contracts Team​

Pareto was an Italian from the 1800's who came up with what’s known as the 80/20 rule.  This simple  principle has a profound effect for us in procurement and elsewhere.

In simple terms the rule means for instance, that 80% of our problems come from 20% of our suppliers; OR 80% of our inventory turnover is in only 20% of the line items; OR 80% of the $ value of our purchases comes from only 20% of the purchase orders.  So turning this into something useful, if we concentrate on the 20% of problem suppliers, or the 20% of high turnover items or the 20% of high value purchases, we have the chance of improving 80% of our challenges. 

Have you thought about what’s your 20%?

LGP Training would like to continue its pursuit to support in developing your knowledge and skills in procurement and contracting space during 2018. We are equipped to cater to your varied procurement training requirements through the following four suites. More details in the links below:

eLearning: You can control your learning through this choice that we deliver using a state-of-the-art technology. Currently, the following three modules are on offer:

• Procurement Essentials
• Contact Management
• Probity in Procurement

Public Courses: These face-to-face training units are delivered at our LGP office based in Sydney CBD. We provide a range of interactive and leading practice modules comprising of the following critical areas of procurement and contract management:

• Procurement for Local Government 
• Contract Management Essentials 
• Advanced Contract Management 
• Supplier Tender Training
• Planning and Specifications 
• Spend Analysis for Savings, Efficiencies, Compliance & Collaboration 
• Evaluation, Supplier Selection and Contract Establishment 
• Social Procurement and Economic Development
• Project Management Essentials

Customised On-site Training: LGP Training can reach out to your premises and deliver any of the above-listed modules. If needed, the contents can be contextualised with client specific case studies, templates, policies & procedures for better expected outcomes in a more cost effective way.

Nationally Recognised Training (NRT) in Procurement: In partnership with ProLeaders Academy (Registered Training Organisation), we offer the following accredited Nationally Recognised Training from Certificate-IV to Advanced Diploma levels.  

• Certificate IV in Procurement and Contracting
• Certificate IV in Project Management Practice
• Diploma of Procurement and Contracting
• Diploma of Project Management Practice
• Advanced Diploma of Procurement and Contracting

The first intake of the Advanced Diploma course is due to commence on 6 March. Click here to  register online.

Upcoming Training Sessions

For any assistance, please contact Niv Roy, Training Manager on 02 8270 8709 or send an email.

Sustainable Procurement Forums

Sustainable Choice are currently planning three forums in 2018 at the below locations:

• Northern Beaches – 2 May (Tentative)
• Shellharbour – 8 May (Tentative)
• Byron Bay – 27 June 2018

The forums are an excellent opportunity to network, share experiences and listen to a number of interesting presentations on various topics. There will also be a number of suppliers present from our Sustainable Products and Services Database showcasing their products.

Please look out for more information and the agenda closer to the date and be sure to register your attendance.

Video Forums

The topic for our next video forum which is exclusively available to Sustainable Choice members, is “The Sustainable Choice Sustainable Products and Services Database”.

This video forum will include a presentation, demonstration and discussion on the Sustainable Choice Sustainable Products and Services Database. The following topics will be covered:

• How to use the search functions effectively.
• How suppliers and their products and services are assessed and how this can be used in councils' tender evaluation process.
• What products and services are listed, including a discussion on increasing the number available.

LGP Consulting Team

LGP extends its expertise and experience to provide councils with an additional service through its Consulting Team.

LGP’s consulting team are well positioned to facilitate end to end tender processes on behalf of individual councils.  Our consulting team comprises highly qualified and experienced professionals who have demonstrated success in facilitating tenders on behalf of councils.

Examples of recent tenders we have conducted on behalf of individual councils are:

• Refurbishment of Library Building
• Legal Services Panel – two individual council tenders
• Internal Audit Services
• Natural Resources Services
• Management and Operation of Swimming Centre
• Security Services - two individual council tenders
• Food and Garden Organic Processing
• Scrap Ferrous Metals, Green Waste Processing, Crushing and Screening of Concrete and Waste Bin Audit (4 separate tenders for a group of councils)
• Remediation of Land works
• Development and Management of Caravan Park (EOI)
• ICT Services Provider
• Vehicle Leaseback
• Cleaning Services
• Trade Services Providers
• Lighting and Sound Technician Services
• Dry and Wet Plant and Equipment – two individual council tenders
• Insurance Broker and Insurance Brokerage Services  for ten councils (joint tender process)
• CBD Reconstruction Tender

If you have any requirements for tender facilitation for any product or service please email the LGP Consulting Team or call 02 8270 8747.

LEAP, a low cost ongoing continuous improvement program that uses real data and evidence to improve procurement capability of council, recently launched and continues to gain momentum!

We are delighted and pleased to inform you that the LEAP program is now being used by NSW councils, and the program is delivering improved procurement capability as designed.

If you would like more information about the program, please email us or visit our website.

The LEAP program is delivered to councils by LGP in association with ArcBlue.

Last year I fielded a number of questions about the State Government’s plan to permit Joint Organisations to manage tenders on behalf of their member councils. At that time there was nothing formal upon which to rely. However, the Local Government Amendment (Regional Joint Organisations) Act 2017 (Amending Act) has commenced, which amends the Local Government Act 1993 (LG Act). These amendments are briefly explained below insofar as they pertain to tendering only.

Message to take away

• It is not automatic that a JO can undertake calling for public tenders or entering into contracts on behalf of your council.
• A proclamation will determine whether your council is a member of any particular JO.
• Call Prevention Partners NSW on 0438 280 621 to assist.

Monica Kelly from Prevention Partners explains more here.

Contact Prevention Partners NSW on 0438 280 621 or email to assist.

If there is any topic you would like covered next month, please feel free to contact Prevention Partners NSW to make suggestions.

Council Procurement teams are notoriously under-resourced and at the same time under increased pressure to reduce risk and drive value. Unfortunately, there is no silver bullet, but there are a range of options for how you can streamline council procurement.  The key is to understand which options to apply for each category and spend class. This article focuses on sourcing processes across council, and the role technology can play to assist.

Sourcing option:

Tenders - This is clearly the domain of the procurement professional, and councils have got a lot better at running tenders in recent years. But while they make sense for high risk, high value spend and in line with legislation, it is a mistake to turn everything into a tender. They require specialist experience, are time intensive and expensive for both procurement and suppliers.

Aggregated Panels - For categories that can be aggregated across the State, whole-of-sector panels and agreements provide a compelling option.  There is almost no work for council, risks and process have been managed, and deals are leveraged across the sector.  

Regional Panels - Increasingly common. Significant advantages where categories and regional supply chains align with a regional approach. Requires significant collaboration and senior level support as often limited resources for councils to work together. There are some good examples emerging as a compliment to state-wide aggregated deals.

Council Panels - Specific to council needs, obvious benefits in limiting risk and potentially reducing still requires resources to establish and maintain so limited number of categories where this makes sense as compliment to external panels.

Council PreQualification Lists - Ideal to develop and maintain list of prime suppliers who meet the requirements to be considered for works, but don’t require a full panel process. Common and well used in trades, civil works and locally professional services. Lower cost and effort to setup and maintain, has benefit of being more dynamic to new suppliers.

Self Registration Lists - Great for understanding which suppliers specifically want to work with council and provide a level of flexibility. Self Registration Lists "makes it easy for buyers to get a quote.... Procurement only need to do a brief audit to ensure it's being managed properly" (Annette Walker, Fairfield City Council).

Decentralised go-to-market sourcing - Arguably this is the least managed and biggest risk spend class for councils with 40-60% of council spend being sourced via an RFQ process that is managed via email.  Very few councils have successfully centralised, and industry focus is more on centre-led, but this presents a problem about volume of buyers and RFPs. 

Economic Development & Social Procurement - Increasingly important as procurement becomes a more strategic function. But while important for making a positive social impact it is often cumbersome due to small databases across different areas and is difficult to report on. New initiatives and collaborations such as ProcureForGood.com.au and BuyRegional.com.au are streamlining this process.

Role of technology… “all in one place?”

Advances in technology are transforming procurement. One of the enduring challenges has been having multiple systems to manage each process, and in some cases, parts of a process. There’s also a lot of systems out there.

Over the last 7 years LGP has worked closely with VendorPanel.com to design and build a solution that gives councils a one-stop-shop for managing all of the above processes in one integrated platform.  We encourage you to get a demo and see if it would assist your council to get the balance right.

For more information about using VendorPanel in your council, please contact Alicia Farrell, Commercial Manager for Local Government on 03 9095 6181 or email.

Strategic Directions are ICT strategy and management specialists who assist councils with Smart City Strategies and Digital Economy Planning that deliver regional results.

Strategic Directions group is an LGP Approved Contractor providing ITC Support, Integration, IT Business Support and Professional services under LGP’s Panel contract – LGP 115 IT&C Products, Services and Consulting.

Read more on Smart Cities Strategic Advisory

Clients include Sunshine Coast and Logan Councils plus Springfield, Yarrabilba (QLD), Tonsley (SA), and Alkimos (WA).

Talk to us to discover how Strategic Directions can position your smart city and connected community for future success.

For more information contact David Robinson on T: 1300 786 566
M: 0412 482 161, email or visit our website.

Celebrating Our People
In Local Government

It is with great delight that we can acknowledge the hard work of one of our procurement brethren. Tania Myers, Team Leader Contracts and Procurement at Coffs Harbour City Council was recently awarded council’s 2017 Overall Achievement Award. This is a great honour and is councils highest accolade presented to a council staff member each year. This is not surprising given Tania was also the recipient of the 2017 New Procurement Professional Award for Local Government Procurement, announced at the conference in November.

This is a huge achievement that backs Tania’s determination in ensuring procurement stays at the forefront of councils strategy and that it is an ongoing priority with executive management.

When discussing this great achievement with Tania, one of her hopes is that “this will empower and motivate others in the profession to not stand back, but strive for recognition of the contributions they are making to their Council.”

Tania, on behalf of LGP and the wider local government procurement community, congratulations on a wonderful achievement!

LGP would like to advise the local government procurement community that one of our great procurement leaders is retiring.

Mal Ackerman is retiring from his role at Midcoast Council on the 6th February, following a long career in procurement in local government. Mal first came into the local government sector at Penrith Council in the year of the Sydney Olympics in 2000.  Prior to this, Mal worked in State Rail in various procurement manager positions. Back then Mal represented Penrith at the WSROC Supply Management Group meetings and he was elected Chair of the Group several times over the subsequent years and participated in a number of significant WSROC tender processes.

Mal was a member of a procurement leadership group that put together proposals to improve the Local Government Act some years back. One of Mal’s significant contributions that has had a positive impact on us all was the involvement in the drafting of the successful submission to the OLG to have the legislation changed to allow electronic tendering.

A key motivator, Mal was instrumental in WSROC successfully establishing its first asphalt and electricity contracts for the WSROC group of councils. The WSROC procurement initiative resulted in annual savings of over $5 million to member councils. Following on from this, Mal then liaised with LGP to enable both projects to become LGP panels for use by all of local government.

As quoted by Phill Scott, Head of Tendering and Contracts at LGP: “Mal’s contribution towards procurement and in particular the councils in the Sydney area has been significant, as has his involvement in the Taree/Midcoast region. I have worked with Mal for many years and will miss his valued insight and leadership. Mal is a true collaborator and is a very well respected procurement leader who will be missed.” 

Mal, on behalf of the LGP team and the rest of your peers in local government we wish you well and all the very best in your retirement.

You will be missed!