LGP News - March 2015 

Collaboration

Over the last few months, LGP has been conducting presentations to Regional Organisations of Councils (ROC’s) and Joint Organisations (JO’s) around the state, discussing our new ROC Rebate Offer.

In case you are not aware, the Board of Local Government Procurement has approved a new model whereby LGP is now able to offer a substantial rebate directly to ROC’s /JO’s to support the initiatives of Fit for the Future for member councils. The intent of this offer is to reduce the needless duplication of some contracts and provide a source of income that will allow ROC’s / JO’s to further support economic development and other regionally based opportunities. Supporting documentation and a Memorandum of Understanding has been provided for the ROC/JO consideration.

Part of our presentation to ROC’s and councils includes our recommendations on what contracts we consider work best at the differing levels of tendering. Those contract levels are:

• National contracts
• State wide contracts
• Regional contracts
• Council contracts.

The duplication of contracts and the unnecessary multi level tendering is a major waste of resources for our sector. We agree that all councils want choices, require best value for money outcomes and want to engage local suppliers wherever possible. Publically advertising tenders when an existing contract that provides value for money exists, is not the answer to meeting these goals.

Duplicated tenders are the number one issue for suppliers within our sector. Many hold the view that if a council or ROC tenders unnecessarily the supplier cost of responding has to be added to the pricing structure. There are strategies to achieve savings and value for money with aggregation via LGP contracts that is at least equal to or very often better than a council or ROC will achieve by duplicating an existing contract. We have dedicated procurement professionals that can work with you to achieve these goals.

Going to tender with the wrong intent is the furthest thing possible from collaborating and costs our sector millions of dollars that we do not have .

Collaboration means working together for the common good. For those who are challenging the status quo and looking to work with neighbouring councils, LGP can assist to achieve exciting results that reflect the initiatives of Fit for the Future’s vision of working collaboratively to design a more sustainable system of government - one that provides quality services and infrastructure and will help us to deliver the housing, jobs and transport that people need. We believe that a strategic approach to procurement will be fundamental in achieving this.

Its time to really collaborate and LGP has the resources and expertise to assist and even financially support you.

To date, LGP has received excellent feedback from a number of ROC’s who have either already agreed to proceed with the rebate offer or are working through their approval process.

LGP believes in working collaboratively with all ROC’s, JO’s and councils, as it is with an open line of communication that all our organisations are best able to deliver outcomes for councils in NSW.

We look forward to working with you toward a mutually beneficial relationship into the future.

Mentorship programs are an invaluable part of the development of any professional.  It encourages the sharing of knowledge, experience and wisdom, while also helping to foster a sense of community amongst the sector.

The procurement field is a young and rapidly expanding field of activity in local government. Participants in the Procurement Leadership Program in 2013 identified mentoring as a priority to support the development of new professionals working across the state and strengthen peer networks and support. The Procurement Mentorship Program offers an opportunity for staff across councils working in any area of procurement to work with more experienced procurement professionals on a one-to-one basis, tailored to suit the individual mentor and mentee.

The program aims to support mentees in developing:

• Their personal skills and capabilities
• Strategies to assist them to be successful in their work, delivering on their own objectives and driving change in their organisations
• Their professional development and career paths.

Click here for further information about the program.

If you are interested in being part of the mentoring program register your interest below.

Register here for mentors

Register here for mentees

• LG Executives Conference - 25-27 March, Coffs Harbour
• CivEnEx - 20-21 May, Eastern Creek
• Local Government Finance Professionals Conference - 20-22 May, Hunter Valley

The first of three LGP networking meetings for 2015 is being held on Tuesday 17 March, in Sydney.

This is a valuable way by which all procurement professionals in local government can have a voice on the issues that are important to them.  It also provides you with an opportunity to create a strong, supportive network of like-minded professionals.

Topics on the agenda include:

• Update on standardised category codes and an update on the establishment of a  Special Interest Group (SIG) for Procurement Systems – Civica, Tech 1 and “other”
• The new ROC / JO offer – why, how, what is it? An open discussion
• Energy update
• LGP Consulting update.

Additional LGP Network meetings scheduled for 2015 are below:

• Tuesday 16 June, 9am-12.30pm
• Thursday 24 September, 9am-12.30pm.

Liquidated Damages (LD) continue to be brought before the courts for consideration and are sometimes correctly dismissed as ‘penalties’. Quantifying loss in government contracts can be difficult though.

Make sure your LD are correctly drafted

• Put your calculations in the contract and tailor these as per each project
• Consider the various triggers of breach and quantify them
• Include general damages clauses as well as LDs and government contracts can accommodate loss of profit for delayed revenue, ongoing finance costs, contract administration costs and loss of public utility, amenity and benefit.

View information about Liquidated Damages in full or contact Prevention Partners NSW for help, enquiry@preventionpartnersnsw.com or 0438 280 621.

Often councils simply do not have the time to undertake tenders to best practice standards. LGP can undertake tenders on behalf of councils on a very competitive fee for service basis. This service ensures that council tenders are undertaken professionally, reducing council risk, ensuring that the process follows best practice principles and providing the desired result in a cost effective manner.

LGP has a consulting team of four dedicated procurement professionals:

1. Robyn McKenzie
2. Kris Wozniak
3. Shalan Rao
4. Sasha Kostic.

Contact the Consulting Team for further information or a free quote.

The objective of this module is for council staff to effectively manage relational selling tactics. LGP has developed a specific training package for council staff that have any form of liaison with a council supplier or suppliers. Specifically, this training is designed to upskill council staff on areas of proper communication and managing relational selling practices. Click here to view the outline. 

Recently we have been asked by various suppliers and councils as to what happens if a council doesn’t nominated the LGP contract when making an acquisition.

From a council perspective, not stipulating that a purchase is being made under a prescribed arrangement, such as an LGP contract, but assuming that it is, could lead to a council not being covered by the terms of any such arrangement. This could result in a council inadvertently breaching the Local Government Act 1993 (NSW) and regulations in regards to tendering thresholds. Not a good place to find oneself.

From a supplier’s perspective, not ensuring that a purchase is being made under a legislatively prescribed method could, once again, be placing a council at risk of breaching the Local Government Act 1993 (NSW) and regulations in regards to tendering thresholds. Something no supplier would like to be responsible for. 

There are some simple steps both councils and suppliers can do to ensure that all acquisitions made by council are covered legally such as:

• Council notifying a supplier that each purchase is to be under a nominated LGP contract
• Council staff using VendorPanel to submit a Request for Quote (RFQ)
• Completing and submitting a Notice of Participation for each of the LGP contracts that council wish to utilise for the acquisition of deliverables
• Advising all staff of the need to use prescribed arrangements such as an LGP contract for purchases
• Suppliers asking the purchaser to confirm under what arrangement the purchase is being made
• Comparing the LGP contract usage report with council’s own records in order to confirm that purchases are accurately recorded by suppliers.

The Notification of Participation allows council to advise all suppliers on an LGP contract that all acquisitions of deliverables covered by that LGP contract will be done so under the terms and condition of that contract, unless otherwise notified by the council. This is a safe and easy way for your council to ensure that no matter who it is in your council placing an order for those deliverables and no matter how they are ordered, any such purchases of that type are covered under an acceptable legislative arrangement.

This Notice of Participation supports the obligations the LGP Approved Contractor Standing Offer Deed places on suppliers to ensure that any such purchases by local government are under the LGP contract or not.

Your local Business Manager can help you with the Notice of Participation or you can access them from the associated documents section of the individual contracts on the LGP website.

Having achieved savings in excess of $32 million already, LGP wishes to advise that we are in the final stages of going to the market to secure our next contract with potential energy providers.

With over 100 councils and many not for profit organisations participating the results have been quite outstanding. Some examples include:

• The small council in northern NSW who received a 49% reduction in their electricity costs in 2012 via the LGP contract
• The central west council who reduced their street lighting electricity charges by 22% after having  an increase of more than 10% every two years for the last decade
• The large metro council who reduced their large sites electricity charges by 15% in 2011 and by another 5% in 2013.

Proven results

• In the most recent tender, results for buildings and facilities were above 26%, lower than our maximum price declaration acceptance for peak rates and 29.7% lower for unmetered public lighting
• In the second last tender completed, the results for large buildings and facilities was 22% lower than our maximum price declaration acceptance figures and it was 28% for unmetered public lighting.

The categories that will be covered in this upcoming tender process for the supply of electricity and natural gas are;

Electricity supply for:

• Large buildings and facilities
• Small tariff sites
• Unmetered street lighting
• Green power.

Natural gas supply for:

• Large buildings and facilities
• Small tariff sites

The registration of interest (ROI) stage will be finalising this week. If your councils is interested in participating in this LGP tender process, please email utilities@lgp.org.au.

For further information or clarification of the process, please contact LGP’s Category Manager Utilities, Marie Talevska on 02 8270 8707 or 0477 354 962.

Over the coming weeks the LGP Buyers Guides will be enhanced to provide more detail for you as a buyer. The aim of the Buyers Guide is not only to provide information of “what’s in the contract” but also “how to use it”.

We aim to keep the process as simple as possible but it is important that the buyer understands the arrangement under which they are procuring. In particular, additional information had been provided on WHS i.e. the level of information required for a tenderer to be approved.

Your feedback is always welcome.

If you have any feedback to offer, please contact your Business Manager.

Road and Traffic Signage, Hardware and Roadside Products (LGP1.14)

This contract will be available shortly. The categories include:

• Standard signage
• Non standard signage
• Associated hardware and accessories
• Gabions, Mattresses and Geosynthetics
• Installation.

Execution of deeds is currently in progress and a separate announcement for the commencement of contract will be issued in the coming weeks. The contract will conclude on 28 February 2017 with optional 2 x 12 month extensions.

Approved Contractors - Pending execution of Standing Offer Deeds includes:

1. Artcraft Pty Ltd
2. Australian Construction Products Pty Ltd – pending execution of deeds
3. Barrier Signs Pty Ltd
4. Delnorth Pty Ltd
5. DeNeefe Signs Pty Ltd – pending execution of deeds
6. G&B Services (NSW) Pty Ltd
7. Hunter Valley Signs Pty Ltd T/A HiViS Signs & Safety 
8. HJD Industries Pty Ltd T/As Jaybro Civil & Safety Products 
9. Polyfabrics Australia Pty Ltd – pending execution of deeds
10. Roadside Products Pty Ltd 
11. Roadside Services and Solutions Pty Ltd 
12. W G E Pty Ltd 

For further information contact the LGP Tender Team.

EOI 11.07-3 Provision of Operating Lease and Finance Services

LGP invites expressions of interest for provision of operating lease and finance services to cover IT, telephony, photocopiers & printers & other office equipment.  These services are required for goods with an aggregate capital cost of approximately $20 million excluding GST.  Short-listed parties will be invited to participate in a selective request for tender process. 

EOI status: Submissions closed on 6 February 2015. This EOI is in evaluation.

RFQ1.15 Consulting Services for Energy Sources Specialist

LGP’s request for quotation (RFQ) is to source a suitably qualified and experienced consultant to draft certain tender specification documentation for the upcoming request for tender (RFT) process. The role of the selected consultant(s) may only involve the drafting part of the RFT documentation. Consultant(s) appointed to this RFQ will be excluded from responding to the ensuing tender on the basis that their involvement in the RFQ process creates a conflict of interest.

RFQ status: This RFQ is in evaluation.

Corporate Wardrobe (NPN2.11)

The Corporate Wardrobe contract expires 30 June 2015 and has no further extensions. This is a National Procurement Network (NPN) tender. The new tender process has commenced and tenders close at 2:00pm AEST on 10 March 2015.

For further information contact the LGP Tender Team.

IT&C Products, Services & Consulting - RFT scheduled for release mid 2015

We are in the scoping phase for this contract. We anticipate a high volume of responses and therefore a long lead time for the contract release in early 2016. The intent is that there will be a number of high level categories with a greater number of sub categories – incorporating those in the existing contracts (IT hardware, IT&C professional services and telecommunications) and any additional categories.

To assist in the development of the specifications we are engaging an independent consultant for specialist IT&C - R&D and support services

In the coming weeks we will be contacting councils via survey for feedback and to ascertain their interest in being involved in the working group. This will entail surveys, interviews and forums. All are welcome no matter what time you can afford.

Media Sydney Metropolitan Daily Newspapers & On-line Recruitment (LGP106-2) and Advertising Agencies (LGP406-2) - RFT scheduled for release mid 2015

The current panel  been extended to 31 December 2015. LGP has a survey out at the moment. Your input and feedback is valuable so please take the time to provide it.

Professional Consulting Services (Engineering, Planning, Environment, Community & Assets)(LGP1208-2) - RFT scheduled for release mid 2015

This contract expires 14 February, 2016 with no optional extensions. In the coming weeks we will be contacting councils via survey for feedback and to ascertain their interest in being involved in the working group. All are welcome no matter what time you can afford.

Asphaltic Concrete (AC) Materials & Related Services (LGP213)

Based on feedback LGP is considering an extension of the panel. A final decision will be made in the coming weeks.

Retail and Bulk Fuel Purchase Arrangements

Thank you to those councils who have been forthcoming with information.  The aim was to determine wether LGP can create an arrangement for bulk and/or retail fuel that can deliver further value to local government that is more competitive than current options.

After considerable analysis it has been determined that savings for Local Government could be achieved. There is more scoping to do and possibilities to explore. A final decision is some way off at this stage.

For further information contact your LGP Business Manager or Angela O’Dea (nee Tesoriero), Category Manager on 0428 289 878.

IT&C Professional Consulting Services (LGP1008-2)

Computer Systems (Australia) Pty Ltd has added Vocus Communications as an Approved Subcontractor.

Microsoft Licensing and Associated Products & Services via Large Account Resellers (LGP108-2)

Staples Australia Pty has refreshed their pricing schedule.

Small Plant and Outdoor Power Equipment (LGP508-2)

Cadia Group Pty Ltd has updated its pricing schedule.

STIHL Pty Ltd has updated their dealer list.

IT&C Professional Consulting Services (LGP1008-2)

Chameleon Technology Pty Ltd has changed its company name to NCS Chameleon Limited. LGP note the ABN has changed.

Pipes, Fittings and Fixtures and Associated Products and Services (LGP908-2)

Xylem Water Solutions Australia Limited has added AA Radio Services and Joe Inzitari Electrical and Data Solutions as Approved Subcontractors.

Pentair Water Solutions Pty Ltd has updated its pricing schedule.

Horticultural, Pest, Pool and Water Management (LGP408-2)

Nuturf Pty Ltd has updated their pricing schedule.

Please ensure you refer to the LGP website for the most up to date versions of pricing.

Engineering and Works

• Asphaltic Concrete (AC) Materials & Related Services (LGP213)
• Horticultural, Pest, Pool and Water Management (LGP408-2)
• Pipes, Associated Fixtures, Pumps & Concrete Products (LGP908-2)
• Playground, Open Space and Recreational Infrastructure (LGP308-2)
• Professional Consulting Services (Engineering, Planning, Environment, Community & Assets) LGP1208-2
• Road and Traffic Signage, Associated Hardware and Roadside Products (LGP114)
• Supply of Workwear and Personal Protective Apparel (NPN3.11)
• Traffic Management Services (LGP113).

Fleet and Plant

• Heavy Plant & Equipment (LGP707-3)
• Mobile Garbage Bins, Industrial Containers & Bins, Static Compactors, Associated Products and Services (NPN1.11-2)
• Small Plant & Outdoor Power Equipment (LGP508-2)
• Specialised Truck Bodies & Machines: Waste Collection, Civic Cleaning, Removal and Access (LGP1608-2)
• Trucks for Local Government (Aust.) NPN04-13
• Tyres, Tubes and Automotive Batteries - Fitting and Service (NPN1.14).

Information and Technology

• IT&C Professional Consulting Services (LGP1008-2)
• Microsoft Licensing and Associated Products & Services via Large Account Resellers (LGP108-2)
• Operating Lease Services to cover Information and Communications Technology, Photocopiers, Printers & other Equipment. (LGP1107-2)
• PCs, Notebooks, Servers & Associated Services & Equipment (LGP306-2)
• Telecommunications Services (LGP407-2).

Services

• Corporate Wardrobe (NPN2.11)
• Debt Recovery Services (LGP109-2)
• HR Temporary Placements & Associated Services (LGP808-2)
• Library Books and Resource Materials (LGP507-2)
• Media Sydney Metropolitan Daily Newspapers & On-line Recruitment (LGP106-2) and Advertising Agencies (LGP406-2)
• Office Supplies & Janitorial (including; Heavy Duty Cleaning) & Associated Products (LGP1007-2)
• Radio Frequency Identification (RFID) Systems, Equipment, Associated Products & Services (LGP309-2).

Utilities

• Supply of Electricity & Green Power to NSW Councils and eligible Not For Profit Organisations

View the LGP website for further detail or contact your local LGP Business Manager.

Microsoft Licensing and Associated Products & Services via Large Account Resellers (LGP108-2)

Staples Australia  will be hosting a special event exclusively for local council’s at NextDC Sydney to empower councils to create more efficient city operations through the use of Microsoft Office 365.

To register please contact Setha Sorn or call 02 9335 0252.

"Life is what happens to you while

you're busy making other plans"

                                                     John Lennon