12 July 2016

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LGP News July 2016

" Keeping you connected in local government procurement "


Networking Meetings - a Nice Lunch or Are They Valuable?

by Michael Robinson, Acting General Manager

Like many others, I am sure you have opportunity to attend many types of networking meetings – everything from your regional or LGP procurement meetings, conferences or simply participating in online conversations via LinkedIn and other social media. In the past I have fallen into the trap of thinking that if this is just going to be another
'chat fest' I won’t attend as my time is valuable and I have more important work priorities.

Recently, I have started to see the bigger picture and thinking back to when I first started in local government and how much I have gained from attending these types of meetings. I have learnt that it wasn’t the individual event that was valuable but rather the accumulation of knowledge, network of colleagues and skills I have obtained along the way. Imagine if you never left your desk, the amount of opportunity to obtain knowledge would pass you by. It is by attending these events and networks that enable us to raise our collective knowledge and skills and improve the profession of procurement, particularly within local government. If you have ever thought that the meetings aren’t providing value to you I would suggest you recognise this and talk to others in the group and take it upon yourself to inject your enthusiasm and ideas into the meeting, to ensure it is providing value for all. Remember: it isn’t just what you get out of the meeting, but perhaps the knowledge you may impart on others, as we all have the opportunity to mentor others that may not have been in this sector as long as ourselves.

I am fortunate to be part of the National Procurement Network (NPN) which operates in a very similar way to a Regional Orgainsation of Councils (ROC) network, but on a bigger geographical scale. The NPN is the network of peak bodies (LGP equivalent in each state and territory in Australia) and I was fortunate to have hosted the most recent event here in Sydney. Over a day and a half it was fascinating to learn how others operate, discuss how the NPN can gain consistency, investigate joint tenders and contracts and ultimately assist each other to achieve great outcomes. An example of an outcome is a commitment to a secondment (or staff sharing) program to have staff work in each other’s organisation for a few weeks to learn how others operate, a great learning opportunity on so many levels.

Another example where I am seeing real progress made is with the quarterly LGP Network meetings. I am starting to see a real shift where council and ROC procurement professionals are putting up their hands to present case studies, suggest speakers and topics and get involved with discussions to provide real value to all attendees. These events will have even greater importance as we move through council mergers and establishment of Joint Organisations (JO’s).

LGP is committed to providing forums to help build the network of local government procurement professionals and encourage you to get involved – whether it is with our events or your ROC, JO or other networks. Some of the events LGP offers include:

With all of these types of events, ultimately you need to decide if you are to be an innocent bystander or active participant, and evaluate if this is a waste of your time or to get involved. This will ensure the meetings provide value for all attendees and that the event is more than a 'chat fest and a nice lunch'.  

If you would like to find out more about getting involved with networking opportunities, please go to the LGP website or speak to your LGP Business Manager.


2016 Local Government Procurement
Annual Conference

'Effective Governance: An Essential Part of Procurement'

2016 marks the tenth annual Local Government Procurement Conference for the NSW Local Government sector. With a theme of 'Effective Governance: An Essential Part of Procurement' the conference will address governance in procurement including appropriate levels of control and probity. 

At the conference you will hear case studies from local government professionals about their experiences as well as invaluable governance and procurement insights from notable speakers. The conference provides opportunities to develop new and build on existing networks and working relationships.

Dates and location

Dates: Thursday 17 and Friday 18 November 2016
Location: Sydney Masonic Centre, 66 Goulburn Street Sydney
Click here to view the location map and parking information.

Who should attend

The conference will bring together procurement and governance practitioners and local government managers to hear and learn about a range of governance and procurement challenges within the sector. The conference is an ideal event for those involved in governance and procurement, in particular:

  • Procurement Managers
  • Governance Managers
  • Purchasing Officers
  • Contracts Managers
  • Directors and Senior Managers


The conference is coordinated by Local Government Procurement based on the needs of sector, with input and feedback from procurement professionals incorporated into the conference and program.

The program will include relevant case studies from local government professionals as well as invaluable governance and procurement insights from notable speakers.

A draft program will be available in July.

Procurement Awards

The Local Government Procurement Awards celebrate those procurement professionals or groups who are making a difference in local government and their community. The Awards recognise excellence and best practice in the field of procurement within the local government sector and are presented at the conference dinner. Click here to learn more about the awards or how to nominate.


There are four registration options to choose from which all include:

  • Full attendance at the two day conference
  • Conference pack
  • Conference dinner on Thursday evening

Early bird: $825 inc GST (prior to and including 21 October)
Full fee: $990 inc GST
First timer: $660 inc GST (a person who has not attended the conference previously)
Special offer for general managers and directors - attend the conference free of charge, when attending with a paying council officer.

Registrations open in mid July.  

Contact the LGP Events team to register your interest.


Special accommodation rates are being negotiated and will be available mid July. 

Further information

The LGP website will be updated regularly with new information. You can also contact the LGP Events Emma Murray or Melisha Williams or call 02 8270 8710.


NamoiJO LGP Procurement Workshops

LGP has recently been working with NamoiJo and Gwydir Council to run a series of procurement workshops for each council in the region.
Taryn Quarmby, LGP Business Manager for the Northern Region NSW, has been working with the NamoiJO region and Gwydir Council’s Tim Cox, who has put together a Regional Strategic Procurement Plan for the NamoiJO region, to create workshops that are beneficial for council staff working in the procurement.

So far, around 60 attendees have been taken through an interactive session designed to provide an introduction to joint procurement activities. The aim of these workshops is to highlight how aggregating certain procurement activities across a region can result in great savings, a reduction in administrative burdens, and a better


approach to risk management as well as a more positive relationship with suppliers. Real life case studies are used to demonstrate the advantages and challenges of following particular approaches to joint procurement.

The overarching goal is to encourage council collaboration where possible, helping to save time and money for both council and suppliers.

If you are interested in conducting procurement workshops in your region, contact your LGP Business Manager.


August LGP Network Meeting

The next LGP Network meeting will be held on Friday 26 August 2016 in Sydney. The meeting encourages council professionals to meet in an environment where networking and information sharing is conducted, and discuss the latest procurement initiatives happening within local government.

The August LGP Network meeting will focus on the topic of 'Council Trends', and will include special guest speaker Dr Marta Andrecka, Assistant Professor at the University of Copenhagen, Faculty of Law. A detailed biography of Dr Andrecka is detailed further below. The meeting will also include an update from Phill Scott, LGP Tenders & Contracts Manager, who will provide an overview of what local government employees have been requesting advice from LGP over the last three months. The update will be followed by a Q&A session where questions submitted by attendees will be discussed by members of the group. If you have a question you would like discussed by the group please send it to Bruce Rose. Please indicate if you want your question considered anonymously.

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

Date: Friday 26 August 2016
Time: 9:30am to 1:45pm. Please arrive at 9:00am for registration
Location: The York Centre, 95-99 York Street Sydney NSW
​Light refreshments will be provided.​

Register: Click here
Agenda: Please email suggestions to potential agenda items to Bruce Rose

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.


August LGP Network Meeting - Guest Speaker

LGP looks forward to having Dr Marta Andrecka at the next LGP Network meeting on 26 Friday August 2016. Please see below a detailed bio on Dr. Andrecka for your information.

Dr Marta Andrecka is an Assistant Professor/PhD/Master of Laws at the Centre for Enterprise Liability, Faculty of Law, Copenhagen University.

Dr Andrecka specialises in procurement practises, research and academia 
across the profession. Dr Andrecka has provided independent insight to key projects for the European Commission, Danish Institute for Human Rights, Swedish Purchasing Consortium, Public Procurement Analysis (London) and Rambøll Management Consulting (Copenhagen) and multiple universities. Dr. Andrecka is also the 
co-founder of Scientific Support for PPP in Poland. 

 Areas of expertise include:

  • Corporate social responsibility. -Marta is currently working with Danish Construction Association on establishing a standard on CSR that could be implemented and used in the public tendering. Relevant also to private sector construction and Capex
  • Human rights in procurement -Modern slavery, Prohibition of child labour, Prohibition of forced labour, illegal wages and hours, Unsafe working conditions, Freedom of association. Considers also the issue of liability and responsibility of governments for breaches of human rights in outsourced services, and the possibility of inclusion of HR considerations in the procurement process. Private and public sector modern slavery issues.
  • Sustainability in international public trade and the emerging laws that impact it– Also covers implantation of green and social consideration clauses, as well as innovation. From the customers perspective and from the suppliers perspective.
  • EU procurement - Legal framework of European Union procurement that includes policies and EU Directives which are the law on procurement in EU. The changes since its first release and why it will benefit customers and suppliers. The global roll out of this directive [by many other names ] to other modern societies beyond just Europe.
  • Private public partnerships – what makes them work... what makes them fail. Lessons learnt.
  • Creating innovation in procurement in the public sector- Taking the private sector experiences and tailoring to public sector.
  • Framework agreements – The pros and cons, challenges and modern solution. Impacts of Aggregation of supply and structuring centralized procurement models.
  • Criminality and Corruption. The Efforts to fight these elements in Public Procurement 
  • What are the emerging trends in EU procurement that might be on its way to Australia and other countries.

LGP Fleet Category Cost and Spend Review

What is the Fleet Category Cost and Spend Review and how can my council benefit from it?

Every council in local government manages a fleet of some size or shape. Typically, councils have fleet managers that are adept in understanding fleet movement and the costs associated with managing their fleet. With more emphasis on being “fit”, it has become crucial that councils understand their savings opportunities. Immediately, we look to our fleet to identify if there are some easy wins and improved ways to manage our fleet, in turn this may deliver quantifiable savings.

By engaging LGP and Procurement Advisory Services (PAS) to undertake a Fleet Category Cost and Spend Review you will be utilising an independent body to expertly review the effectiveness and efficiency of your existing systems. As a result council will be able to determine where the change effort should be focused to enhance council’s fleet management system.

Below is a testimonial from Jim Roberts, Manager Corporate Procurement and Supply, after they conducted the Fleet Category Cost and Spend Review within council:

We engaged Procurement Advisory Services (PAS) to perform a detailed spend category review across our Council's fleet of cars and light commercial vehicles. Our intent was to achieve a clear understanding of the whole of life costs of these assets and to discover opportunities for cost savings in our current processes along with investigating other alternatives to fleet ownership.


We felt it was important that this analysis be done independently and not internally. A two stage approach was recommended which saw the initial review determine the current cost of fleet ownership. Stage 2 followed and identified savings opportunities, process improvements and alternatives. Interviews with key staff were performed in a professional manner and progress updates given to us were regular and informative.

As a result of the analysis we now have a database tool that provides a clear picture of our cost drivers. The review performed by PAS was very effective and delivered on time and on budget. Fleet category specialist Colin Davies was thorough and detailed in his analysis. Clear goals and expectations were identified in the scope at the start of the process and were met throughout the course of the exercise. The final report highlighted significant cost saving opportunities along with other key findings, recommendations and a risk matrix. I would have no hesitation in recommending PAS to perform a review of this type.”

To fully appreciate the potential return on investment for your council from participating in this program click hereor contact your LGP Business Manager.

For more information about the LGP Fleet Category Cost and Spend Review visit the LGP website here.


LGP Learning Centre

LGP will be conducting procurement training in Sydney from 26 to 28 July 2016. Council staff involved in any form of purchasing are encouraged to attend. 

What are the benefits to councils?

  • A range of interactive and best practice modules covering seven critical areas of procurement and contract management
  • Specifically developed for NSW local government
  • Experienced trainers with hands on experience in local government
  • The content, case studies and activities are tailored with practical examples to maximise knowledge transfer.

Training Courses and Dates

26 July 2016 
Procurement for Local Government 

This is a full day course designed to provide a comprehensive overview of the purchasing function within the NSW Local Government sector. The Procurement for Local Government course is a great way to learn the end to end procurement life-cycle and practical ways to apply principals within council. Register here.


27 July 2016
Social Procurement and Economic Development

This is a full day course designed as an interactive workshop, this course provides council staff with insights into how procurement can be designed to support the achievement of social outcomes and local economic development. Frameworks for social procurement are explored as well as practical tools and methods to assist your council to become social procurement ready along with models to enable greater collaboration for regional social procurement outcomes. Register here.

28 July 2016
Spend Analysis for Savings, Efficiencies, Compliance & Collaboration

This full day course will provide you with the ability to look for efficiencies, savings and increase compliance. It will cover internal analysis, external factors such as economic development and how to drive fact based procurement and contract management decisions. Register here.

    View the entire LGP Training calendar here.

    Training is also available in your council or for your ROC or JO. For more information please contact Rebecca North, Training Coordinator by email or on 02 8270 8709.


    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.


    Can You Spot an Illegal Contract?

    How would you detect an illegal contract?

    The contract considered in Gynch v Polish Club Ltd [2015] HCA 23 was a lease for Mr and Mrs Gynch to occupy premises in the Polish Club to operate a restaurant, however no formal lease resulted. After about 16 months the Club requested the Gynchs to vacate the premises.

    This case is also a salient reminder that an agreement’s construction is paramount in determining what type of document it is, regardless of what it is called.

    Some points to consider:

    • Illegality of contract is a very complex area of law and one that continues to be developed
    • Encourage everyone in your council to consider what type of agreement is being formed, either expressly or inadvertently
    • Remember that construction is everything. If it quacks like a duck and swims like a duck, it’s a duck, regardless of what it is called
    • Illegality may not automatically make an agreement void. Relevant legislation needs to be considered.

    Monica Kelly from Prevention Partners explains more here.


    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.


    Tip of The Month

    By LGP Projects Team

    Scoring Methodology

    Evaluation criteria and weightings provide the importance to the elements of the submissions when determining the overall best value submission. But what minimises the subjectiveness of the scoring by each evaluation members?

    Develop a scoring methodology to provide a brief outline of each scoring level. For example, 10 out of 10 – the tenderer has provided detailed methodology to deliver the services including timeline, staffing and standard operating procedures. 8 out of 10 – the tenderer has provided detailed methodology to deliver the services but not timeline.


    Sustainable Procurement News

    On the 2 May 2016, 8 speakers from 5 continents and 150 participants came together to share their experiences and ideas on sustainable supply chains, social procurement and responsible sourcing at the Global Forum on Sustainable Procurement in Sydney.

    The development of an International Standard (ISO 20400) for Sustainable Procurement is currently underway and is expected to be launched in early-mid 2017. This guidance document will standardise guidelines and principles for all stakeholders working with internal and external purchasing processes – including contractors, suppliers, buyers and local authorities – as part of an effort to demonstrate good practises for sustainable purchasing.

    Sustainable Choice is representing local government on the Australian Committee for the development of ISO 20400. Sustainable Choice, a partnership program between Local Government NSW and the NSW Office of Environment and Heritage, is a procurement program assisting NSW councils to embed sustainability into their procurement systems.

    For further information on embedding sustainability into your council’s procurement practices or if you would like to know more about what is happening in the field of sustainable procurement, visit the LGNSW Sustainable Choice website or contact the team by email or on 02 9242 4000. 


    Social Enterprise and Business Forum

    Social enterprise is a business model that is raising much interest from media, government and business as an innovative approach to generating social and environmental good through business.

    There are 20,000 social enterprises contributing to an estimated 2-3% of GDP and employing 300,000 Australians, this nascent sector is rapidly growing.

    Join this local event to understand and learn about social enterprise and how to incorporate these innovative businesses into business and government supply chains. 

    This is an event for social enterprises, for buyers and for those interested in learning more about social enterprise within Newcastle and the surrounding area. The event will focus on raising awareness and understanding of social enterprise and buying and selling from social enterprise.

    The event details are below:

    Date: Monday 8 August 2016
    Time: 9:30am to 4:00pm
    Location: Mereweather Surfhouse, 5 Henerson Parade Merewether 2291

    This is a complimentary event being run by Social Traders in partnership with the NSW government Office of Environment and Heritage. If you would like to find out more information please click here.  If you would like to attend registration is required via the event page here.


    There is a huge amount of change occurring around strategic public sector procurement, and the opportunities for procurement to deliver increasing value to public sector and government organisations are growing.

    ICT Procurement in Government will be held as a one day conference in conjunction with the Technology in Government Conference and Expo.  Now in its 10th year, Technology in Government is Australia’s most established public sector focused ICT event, bringing together technology leaders from all levels of government. 

    Michael Robinson, LGP Acting General Manager will be moderating the CPO Panel discussion 'Agile procurement - cost effectiveness, sustainable models, holistic solutions, and delivering value' at the conference.

    Themes at ICT Procurement in Government will include: 

    • Procurement and public sector ICT transformation
    • Changing market models
    • Digital and e-procurement marketplaces
    • Cloud and software as-a-service – data sovereignty, risk mitigation and negotiation
    • Vendor management – relationships, controlling costs, and ensuring value
    • Maximising ROI from effective ICT contract management
    • Best practice procurement models - cost effectiveness, sustainable models, holistic solutions, and delivering value
    • Performance based / outcomes based contracting
    • ICT procurement data and analytics - measurement; cost reductions; and increased efficiencies
    • Changing IT and ICT delivery trends - keeping up with the digital curve
    • Driving value in ICT procurement through shared services

    For more information please visit the ICT Procurement in Government website.


    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 Your
    Business Manager is 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.

    LGP Spotlight on Social Enterprise: 
    Beehive Industries

    Operating for more than 45 years, Beehive Industries is a NFP social enterprise supporting seniors and persons with disability, which provides social procurement solutions for government and corporate clients such as City of Sydney, Racing NSW and Telstra, enabling them to make sustainable supplier choices while not compromising quality or value.

    For further information about the impact of social procurement please click here, and you can find further information on the range of services offered by Beehive here. If you would like to know more about Beehive Industries please visit their website or contact Brendan Lonergan by email or on 02 9331 4085.


    2016 Annual LGP Conference - Sponsorship and Exhibitor Opportunities

    Sponsorship and exhibitor opportunities are now available for the 2016 Annual Local Government Procurement Conference. 

    The conference provides a unique opportunity for suppliers to showcase their goods and services to a cross section of procurement professionals from across the state over two days, and is an excellent opportunity to attract potential customers and build on existing relationships already established. 

    LGP Approved Contractors are given the first opportunity to register as a sponsor at the conference. The event provides excellent value for money with an anticipated 80 delegates who are key procurement professionals within NSW local government councils.

    For further information view the Sponsorship and Exhibitor Prospectus or register online. The sponsorship and exhibition space is limited, suppliers will be treated on a ‘first in, first served’ basis.

    If you have any questions about the conference please contact the LGP Events team via email or 02 8270 8710.


    What's happening with LGP approved contractors?

    LGP 508-2 Small Plant and Outdoor Power Equipment

    Makinex Construction Products wins Safe Work Australia’s Award for Good Design

    Makinex Powered Hand Truck is a material handling device with a difference –  The revolutionary machine replaces the need for a forklift and has the potential to cut shoulder and back injuries in the workplace.

    The Makinex Powered Hand Truck is a universal materials handling solution that enables one person to safely lift and load small equipment or bulky goods weighing up to 140kg (309lbs). It provides a quick and easy alternative to using a forklift or tailgate loader for small loads.

    To find out more information about the Makinex Powered Hand Truck click here. You can also find out more information about Makinex on their website.