6 June 2016

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LGP News June 2016

" Keeping you connected in local government procurement "


Merging Councils and Local Government Procurement

by Michael Robinson, Acting General Manager

On 12 May 2016, the NSW Government announced the merging of 42 councils into 19 new councils. There are several additional merger proposals pending. Local Government Procurement (LGP) is currently reviewing all available information to ensure systems are in place to make this transitional period a smooth one for anything procurement related. It should be noted that fundamentally there will be no change to the way any council access or utilise LGP contracts and services, it is business as usual.

I would like to highlight some important information:

  • LGP Group Rebate Offer – In April 2015 LGP introduced a Group Rebate Offer to support the great work of Regional Organisations of Councils (ROC’s) and Pilot Joint Organisations (JO’s). The announcement of the 19 new councils has presented a number of challenges for the purposes of how these rebates are calculated and shared. To ensure LGP fulfils its commitment to this offer it has been decided that all calculations up to 30 June 2016 will be calculated and shared as per the current Memorandum of Understanding. In light of the announcement of the newly merged councils, we will be working with all stakeholders to ensure a simple, effective and sustainable program that will continue to support procurement in NSW into the future.
  • Local Government NSW (LGNSW) has developed a comprehensive web-based Amalgamation Toolkit that includes briefing notes, guidance and other templates and resources. This Toolkit aims to provide a practical level of guidance and support to councils who have started to undertake work on a newly merged council. As part of this, LGP has developed a summary of what will be required to guide the merged entities towards delivering value from a successful merge of procurement functions. See the LGNSW Amalgamation Toolkit - procurement here.
    The LGP Projects Team is also available to provide any assistance required through the council merger process.

    Contracts formed under the previous council – It should be noted that any arrangements entered into with LGP approved contractors will remain in place unless otherwise notified. (The Local Government (Council Amalgamations) Proclamation 2016 Clauses 32 & 33 provide more direction to councils regarding this topic).  
  • Access to LGP website, VendorPanel and LGP contracts – A communication will be sent via email to contacts that are registered in LGP’s database, regarding updating of contact information
  • LGP Forum and network meetings are valuable resources available to you to gain access to information as well as a network of people that may be dealing with the same challenges as you. I highly recommend making use of these services.  

For further information and to keep up to date with what is happening at LGP please refer and direct staff to our website. The LGP team is available and ready to assist you with anything you may need.

If you have any questions or would like further information about our services particularly in relation to the procurement for newly merged councils, please contact your LGP Business Manager.


Council Mergers - Some Information

Machinery of Government Changes

This is a general term and addresses organisational and/or functional changes across government portfolios, 
departments or agencies.

At the Commonwealth level, it is usually formalised by way of an Administrative Arrangements Order (AAO) following a Prime Ministerial decision.

At the NSW local government level, LGP expects to see it formalised by 
Proclamations, Vesting Orders and other legislative changes.

Proclamations and Regulations

You may be interested in the following proclamations and regulation made in May 2016 by the Governor of NSW:

Local Government (Council Amalgamations) Proclamation 2016

Local Government (City of Parramatta and Cumberland) Proclamation 2016

Local Government (General) Amendment (Staff) Regulation 2016

These can be obtained here.

Of particular interest is the first of the above proclamations.  Amongst a range of things, it deals with transfers of assets, rights and liabilities. Clauses 32 and 33 provide some guidance which will assist in regard to contracts.


Probity Services Course in July

The Institute of Arbitrators and Mediators Australia (IAMA) is now conducting a four day course designed as one of the requirements for the accreditation of Probity Services Providers. The course covers the essentials of probity and ethics principles and practice, particularly in procurement related processes.

The course does not replace practical experience, but includes a high level of practical case studies.  Accreditation procedures for Probity Service Providers are currently under review. 

Course content includes:

  • The probity services environment
  • Roles and responsibilities of probity services practitioners
  • General and specialist procurement and similar processes
  • Specific areas of probity and ethics
  • Ethical behaviour of buyers and suppliers
  • Probity risk management
  • Probity issues in contracting, and
  • Other issues impacting on probity and accountability.

For more information and to view the training calendar please click here.


June LGP Network Meeting - Update

The next LGP Network meeting will be held on Wednesday 15 June 2016 in Sydney. The meeting provides an opportunity for all local government professionals to come together to discuss the latest procurement initiatives happening within local government.

The June Network meeting will focus on the topic of 'Council Merger Impact' and will include the following guest speakers:

Monica Kelly, Prevention Partners - Monica will discuss merger matters from a legal point of view
Lee Chapman, Central NSW Regional Organisation of Councils (CENTROC) - Lee will discuss CENTROC's preparation for the 'Joint Organisation' landscape they are about to embark on
Phill Scott, LGP - Phill will provide an overview of what local government employees have been requesting advice from LGP over the last three months.

A Q and A session will also be held for attendees who wish to have any questions answered by Monica and Phill, with input from other attendees. If you do have a question you would like discussed at the Network meeting, please send it to LGP Operations (please indicate if you want your question considered anonymously).

Following a survey of recent attendee’s feedback indicated that the preferred location for the meeting is the Sydney CBD, close to Town Hall station.

LGP encourages procurement professionals in local government to attend the next LGP Network meeting, and details are below.

Date: Wednesday 15 June 2016
Time: 9:30am to 1:45pm. Please arrive at 9:00am for registration
Location: The York Centre, 95-99 York Street, Sydney, NSW, 2000
​Light refreshments will be provided.​

Register: Click here
Agenda: Click here to suggest potential agenda items

Special interest groups: Meetings of the Special Interest Groups will not occur on this occasion.

The draft agenda will be distributed to network members and available for download via the LGP website.


ProcureLearn is Now Available

Do you work in procurement or have any involvement within this space? Look no further, ProcureLearn, LGP's eLearning program is now available.

ProcureLearn offers ‘bite-sized’ online learning ranging from 10-30 minutes providing optimum flexibility within council,  and allowing training to be delivered in a time-efficient and cost-effective way. Most importantly, you learn at your pace and around your work schedule. The ProcureLearn program offers the following training modules:

LGP online modules consist of the following tailored courses;

  • Procurement Essentials
  • Contract Management Essentials
  • Probity in Purchasing and Procurement

For more information about ProcureLearn please click here or contact Rebecca North, Training Coordinator by email.


Are Verbal Contracts with Friends
a Good Idea?

The recent case of Manfate Pty Ltd v Krahe & Krahe (No 1) [2016] NSWDC 70 (Manfate) makes us consider the wisdom of entering into verbal contracts with friends.

It also deals with the difference between a quote and an estimate.

Some points to consider:

  • Written agreements are not only for the risk-averse amongst us but are instrumental in guiding details of the project.

  • If conversations are had that create or vary an agreement, always make sure it is reduced to writing. However it is always advisable to manage contracts and variations formally as a lot can turn on variations at completion of the project.

  • Ensure that statements, statutory declarations and affidavits only contain facts that you know personally.

Monica Kelly from Prevention Partners explains more here.


Tip of the Month

By LGP Projects Team

Stakeholder Engagement for Procurement

When planning your procurement it is important to ensure stakeholder engagement in the procurement process to deliver a successful outcome. Stakeholders should be engaged very early in the process so relevant information regarding the stakeholder’s requirements are included.
Stakeholders should also be a part of the evaluation process. The engagement of the stakeholders can be formal or informal, electronic (e.g.survey or email) or face-to-face. ​


How Can The 
LGP Projects Team Help You?

The LGP Projects Team are a specialised unit established by LGP to provide individual support to councils in relation to specific procurement projects.

The LGP Projects Team's solutions include:

  • Tender Facilitation
  • Probity Audit and Advice
  • Review and Develop Process, Policies and Procedures
  • Outplacement Services
  • Contract Management 
  • Project Management

To find out in more detail about what the LGP Projects Team offers click here. To request a quote please visit the LGP website.

If you would like further information 
please contact the LGP Projects Team on 02 8270 8700 or by email.


LGP1208-3 Professional Consulting Services Contract Now Available

Local Government Procurement is excited to announce the commencement of the new LGP1208-3 Professional Consulting Services contract. The contract is available from Wednesday 1 June 2016.

The LGP1208-3 Professional Consulting Services contract will give you access to consultancy services across ten categories:

  1. Architectural and Interior Design Services
  2. Asset Management Services
  3. Building Services Engineering
  4. Civil Engineering Services
  5. Environmental Services
  6. Heritage Conservation and Planning Services
  7. Landscape Architecture and Design Services
  8. Planning, Design and Development Services
  9. Surveying Services
  10. Water and Waste Water Engineering Services

For further detail about the newly released contract click here.

If you would like more information about the contract please contact your LGP Business Manager.


Current LGP

For information regarding LGP tenders, including current status, click here.


Current LGP Contracts

Find out what current contracts LGP has here.


Upcoming LGP Tenders and New LGP Contracts

To find out what tenders are coming up at LGP or what new contracts have commenced at LGP, click here.


Amendments to LGP Contracts 

To find out information about amendments that have occurred between LGP and Approved Contractors, click here.


As part of our commitment to more sustainable procurement, Local Government Procurement is proud to be a member of Social Procurement Australasia (SPA).

Find out more about who SPA are here.


Want to
Know Who is Your Business Manager at LGP?

Local Government Procurement has dedicated business managers to look after the needs of councils, approved contractors, not for profit organisations and other government bodies.

Click here to see who can help you.