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LGP News - August 2015 

Procurement Insights

Innovation, collaboration and procurement – do these words belong together?

Do you consider yourself a brave person, a person of courage and conviction in the face of a challenge? Bravery means opening oneself up to criticism and overcoming the fear of failure in order to do something extraordinary – to create a better world than the one we’re living in, or to go further than anyone has ever gone before.

Bravery is more than the lack of fear, it’s about being able to face uncomfortable situations and still persevere in pursuit of that better world. I believe procurement is the perfect vehicle to be able to embrace these ideals and deliver outcomes that challenge the status quo whilst delivering the sustainable expectations of our communities. Often this thinking is promoted and then shunned in local government for fear of failure, particularly with the expenditure of public money.

Have you ever had a great idea, only to be met with opposition which has ultimately led to your idea falling by the way side? In local government, this opposition can be due to a need for legislation compliance, time constraints, lack of resources, the need to be risk adverse, “that’s the way we’ve always done it” thinking and other restrictions that prevent innovation and collaboration in the procurement of goods and services.

Fit for the Future has been a key driver to again promote the need for innovation and collaboration and I am pleased to say that we are starting to see an emerging landscape where those oppositions listed above get further challenged. We are starting to see more councils working together and relinquishing some control of processes, this has been an enabler of collaboration and true aggregation to deliver financially beneficial results – THAT is brave and innovative thinking! In coming months I hope to share some case studies of this great work. I would like to offer you free and ongoing support from our expert staff who are available and excited to assist you realise these benefits, it is what we are here to do!

LGP has always been a leader of innovation in procurement; it is built into the culture of the organisation. This is again evident as it has recently been announced that LGP are finalists in the category of “best contribution to the reputation of procurement” at the 2015 Chartered Institute of Procurement and Supply (CIPS) Australasia Supply Management Awards. This is an achievement in itself and one we are very proud of.

So, do the words innovation, collaboration and procurement belong together? Absolutely, in fact we believe the word procurement should come to be synonymous with innovation and collaboration and continue to be a driver of change in local government.

If you would like to talk to someone about how LGP can assist your council build upon your great ideas, be brave and talk to your local LGP business manager today.

Upcoming events

LGP Network and Special Interest Group Meetings

LGP Network meetings are facilitated to bring procurement staff from across NSW together. They are a forum to discuss ideas, current issues and where appropriate, work as a team on special projects. Details of the next LGP Network meeting and Special Interest Group (SIG) are below:

Date: Thursday 24 September
Times: 9.30am to 12.30pm (LGP Network)
Times: 1pm to 3pm (SIGs – Civica and Tech1)
Venue: Sydney CBD.

Register your attendance here

The afternoon concurrent sessions of Civica and Tech1 SIGs are a continuation from the 16 June meetings to bring staff together to work through common issues with finance/procurement systems. 

Please send suggested agenda items to info@lgp.org.au.

Procurement training

LGP has been delivering procurement training for over three and half years and to date over 1700 staff from 145 NSW councils have attended procurement training modules.

Upcoming training is scheduled for: 

Diploma of Government (Procurement & Contracting) for Local Government staff is scheduled to commence in September. 

  • Block 1: 2-3 September
  • Block 2: 15-17 September
  • Block 3: 13-15 October
  • Block 4: 28-30 October.

Click here for more information or click here to register your attendance.

LGP Procurement Services

Have you or your organisation ever had a need for assistance with procurement?  We have worked with many councils where due to lack of resources, time constraints, complexity or other factors we have been able to assist them meet these challenges.

LGP has a team of highly qualified procurement practitioners with extensive experience within both corporate and government sectors.

The procurement services team will work with you to ensure the tendering process is conducted in accordance with all legislation with comprehensive legal, due diligence and probity systems to ensure an advantageous result is achieved that can withstand any scrutiny. It goes beyond tendering.

Our dedicated team can assist your organisation by offering the following services:

  • Facilitating tenders for goods and services
  • Ongoing management and benchmarking of contracts and suppliers
  • Auditing and training of procurement processes
  • Development and review of policies and procedures
  • Outplacement services
  • Probity advice
  • Any other procurement service.

Please contact the procurement services team for further information or to request a quote.

Advice from Fair Work Australia

The Fair Work Ombudsman (FWO) has announced that it will undertake random audits of local government contracts to ensure compliance with federal workplace laws.

The FWO stressed the importance of councils understanding that when they engage low-cost security services, they are not “contributing to the underpayment of employees working for their sub-contractors”.

Although contracting out labour is viewed as a legitimate approach to doing business, the FWO says that councils need to consider whether such arrangements create an environment where workers are open to exploitation. Currently, some security operators are gaining an unfair advantage and are profiting at the expense of workers and legitimate operators who comply with workplace laws.

In 2009, FWO audited over 300 security businesses and found that less than half were compliant with workplace laws. After a campaign in 2012, this improved to 75% of businesses meeting their obligations.

The current investigation will take a year to complete, with a report due to be released in August 2016.

To ensure good procurement practices, organisations contracting in security service are expected to do their due diligence by understanding the cost of employment. This includes knowledge of minimum rates of pay, including penalties, overtime and allowances. Indirect costs such as superannuation, workers compensation, payroll tax, insurance and licences should also be considered. Minimum rates of pay will vary depending on the award or agreement of the employees of the contractor.

‘Council resolved to accept the tender and delegates the General Manager to formally enter into the contract’. So, when is the contract formed?

In the recent case of Woollahra Municipal Council v Secure Parking Pty Ltd ([2015] NSWSC 257) the Supreme Court considered this question and reaffirmed that the contract between Woollahra Municipal Council (Council) and Secure Parking Pty Ltd (Secure) came into existence from the time the resolution was conveyed to the tenderer, not from the time a formal acceptance letter was received by the tenderer (even though the contract stated that; Notification of acceptance to any Tender will be given by a formal letter from the Council [cl 1.17]).

Council was awarded $6,940,811.41 damages plus legal costs. We shall keep watch for an appeal.

Message to take away;

  • A council resolution is a ‘council decision’, or in contractual terms, ‘acceptance’, once it is conveyed to the tenderer.
  • Only with the agreement of both parties can the terms of the contract be amended after acceptance by way of a variation.
  • Make sure that any communications prior to your council’s resolution to accept a tender, which may affect the terms of the contract, are thoroughly documented.
  • Make sure that the documents you create to call for tenders are the ones you wish to use for the life of the contract. In particular, well developed specification can prevent a lot of heartache later on.
  • Call Prevention Partners NSW for further information – 0438 280 621. Click here to view the article in full.

New contracts

LGP2.13 (E1) Asphaltic Concrete (AC) Materials & Related Services (LGP213) Extension to Panel

This extension for additional parties to be appointed as approved panel members is complete. The successful tenderers will be joining the existing contract therefore there is no group “commencement date”. Each successful tenderer will be added to the existing panel as they execute Deeds and complete all activation requirements (VendorPanel).

The following Contractors have been successful and will joining the panel pending execution of Deeds:

  1. ANA Industries Pty Ltd
  2. Ashcroft Holdings Pty Ltd
  3. Asphalt Laying Services Pty Ltd
  4. Bitu-mill (Road Maintenance) Pty Ltd
  5. Christopher Burke Pty Ltd; T/as Brisbane Water Bitumen
  6. Clark Asphalt Pty Ltd
  7. D & M Excavations & Asphalting Pty Ltd
  8. Denrith Pty Ltd
  9. Eastcoast Asphalt & Construction Pty Ltd T/as Fishers Asphalt
  10. Fenworx Pty Ltd
  11. Hodge Mills Pty Ltd
  12. J & E Excavations & Plant Hire Pty Ltd
  13. J&M Schembri Pty Ltd
  14. Menz Plant Pty Ltd
  15. Optimum Roads Pty Ltd
  16. Norman McMahon Patches Pty Ltd t/a Patches Asphalt
  17. Roadworx Surfacing Pty Ltd
  18. Roads Corporation t/a SprayLine
  19. Stabilco Pty Ltd
  20. Stabilicorp Pty Ltd
  21. StabilFix Pty Ltd
  22. The Trustee for SuperSealing Unit Trust t/a SuperSealing
  23. The Asphaltman Pty Ltd
  24. The Jenkins Family Trust T/as Complete Road Seal
  25. Town & Country Asphalting Pty Ltd; and
  26. Tropic Asphalts Pty Ltd t/as Tropic Asphalts.

Term: The contract concludes on 30 June 2017 with optional 2 x 12 month extensions.

Visit the LGP website or contact your LGP Business Manager for further information.

NPN2.11-2 Corporate Wardrobe

Local Buy Pty Ltd, LGP, the Municipal Association of Victoria and Local Government Corporate Services as members of the National Procurement Network (NPN) invited tenders from organisations interested in being appointed to a Preferred Supplier Arrangement for the supply of corporate wardrobe.  This is collaborative arrangement between NSW, QLD, VIC and SA. Local Buy Pty Ltd is acting as the lead agency on this process.

This contract includes the following goods/services:

Goods: This contract includes: suiting, separates, shirting, accessories, knits and casuals and other (other items include: blouses, long sleeve shirts, short sleeve shirts, 3/4 length shirts/cardigans, jumpers, corporate chinos, tops/singlets/ corporate polo fleece, corporate polo’s, pullovers/corporate shorts, pants, trousers/dresses, skirts/jackets, vests/scarves, ties, belts/other).

Services: Corporate logos (embroidered, patch, transfer), onsite sampling packages/onsite fitting services/made to measure/ alterations/post pick embroidery/automatic stock replenishment.

Term: The contract is for a two (2) year term, concluding on 30 June 2017 with optional 2 x 12 month extensions.

Visit the LGP website or contact your LGP Business Manager for further information.

Current tenders

T12.08-3 Professional Consulting Services

LGP invites tenders for Standing Offers to supply professional consulting services. Requirements of the RFT include: architectural and interior design services; asset management services; building services engineering; civil engineering services; environmental services; heritage conservation and planning services; landscape architecture and design services; planning, design and development services; surveying services; and water and waste water engineering services.

Tenderers: For information contact the LGP Tender Team

LGP buyers: Contact your LGP Business Manager

RFT status: Tenders close at 2.00pm on 14 August 2015 (AEST).

EOI 1.15 IT&C Products, Services & Consulting

LGP invites submissions as part of stage 1 of a 2 part procurement process, for Standing Offers to supply: IT&C; products, services & consulting. The categories include: telecommunications services; IT hardware (on-premise); network infrastructure (on-premise); phone systems; professional services; printing and scanning; software; ICT support; website services; managed services; business support; audio visual; cloud services (XaaS); integration services; and development services.

Respondents: For information contact the LGP Tender Team

LGP buyers: Contact your LGP Business Manager

EOI status: To be released on 7 July 2015.

NPN 1.15 Specialised Trucks and Bodies

This is NPN collaborative arrangement with Local Buy Pty Ltd acting as the lead agency on this process. The National Procurement Network (NPN) member states participating include; Local Buy Pty Ltd (Queensland), Local Government Procurement Pty Ltd (NSW), LGA Procurement (SA), Local Government Association of the Northern Territory (LGANT), Local Government Association of Tasmania (LGAT), WA Local Government Association (WALGA) and MAV Procurement (Municipal Association of Victoria).

Tenderers: For information contact the LGP Tender Team

LGP buyers: Contact your LGP Business Manager

RFT status: This tender closed on 28 July 2015 and is currently in evaluation.

In the pipeline

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

The current panel has been extended to 31 December 2015. Thank you for your responses to the survey. LGP will commence contacting you in the coming weeks.

Amendments to contracts

Advertising Agencies

Leonards Advertising has updated its pricing schedule.

Advertising - Media Sydney Metropolitan Daily Newspapers, Regional Publications and On-line Advertising

John Fairfax Publications Pty Ltd has updated its pricing schedule, in accordance with its contract anniversary.

Asphaltic Concrete (AC) Materials & Related Services

Boral Asphalt has refreshed their pricing schedule.

HR Temporary Placements and Associated Services 

As of 1 July 2015, changes to the awards applicable to local government have come into effect. Panel members on this contract have accordingly been invited to submit updated pricing schedules in relation to pricing directly affected by the statutory changes.

The following panel contractors have updated their pricing schedule to incorporate statutory changes to awards applicable to local government from 1 July 2015: Challenge Recruitment Limited, Early Learning Placements Pty Ltd, McArthur, SCO Recruitment, Men At Work Labour Hire NSW, Hay Specialist Recruitment (Australia) Pty Ltd and Quay Appointments Pty Limited.

IT&C Professional Consulting Services

Hitech Support Pty Ltd has updated its pricing schedule, in accordance with the contract anniversary.

NCS Chameleon Limited has changed its registered business name to Magiq Software Ltd. LGP has noted that there has been no change to the company’s ABN.

Mobile Garbage Bins, Industrial Containers & Bins, Static Compactors, Associated Products and Services

Papas Waste Equipment International Pty Ltd has updated its pricing schedule, in accordance with the contract anniversary.

Playground, Open Space and Recreational Infrastructure

Moduplay Group Pty Ltd has updated its pricing in accordance with the contract anniversary.

Road and Traffic Signage, Associated Hardware and Roadside Products

Platinum Traffic Services Pty Ltd has updated its pricing schedule, in accordance with the contract anniversary.

HiVis Signs & Safety has updated its product range available under contract and has updated its pricing schedule accordingly.

Polyfabircs Australia Pty Ltd has updated  its product range available under contract and has updated its pricing schedule accordingly.

Telecommunications
Applied Satellite Technology (AST) Australia has updated its pricing in accordance with the contract anniversary.

Traffic Management Services
The following panel contractors have updated their pricing schedules to incorporate the statutory changes to the Awards applicable to Local Government: Watchout Traffic Control, Men At Work Labour Hire NSW and Coast Traffic Solutions.

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

Bulk Fuel

LGP are in discussions with NSW Procurement in order to ensure that a replacement for the State Bulk Fuel Contract 366 will be available for local government and NSW Government departments and agencies to access from 1 January 2016. It is planned that councils will be able to access bulk fuel exactly as they do now with no interruption.

For further information contact your LGP Business Manager or Colin Emerson, Category Manager on 0477 372 265.

Current contracts

Engineering and Works

  • Bitumen, Emulsions and Asphalt Materials and 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)
  • Supply, Fitting, Maintenance & Recycling of Tyres, Tubes and Automotive & Marine Batteries (NPN1.14)
  • Trucks for Local Government (Aust.) (NPN04-13)

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 (NPN2.11-2)
  • 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.

Phrase of the month

"Every day do something that will inch you closer to a better tomorrow".

                                          - Doug Firebaugh