Urgent Advice regarding NSW Procurement Pre-Qualification Schemes
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Local Government Procurement (LGP) has received multiple queries from councils over the last two months seeking advice on the use of Pre-Qualification contracts established by NSW Procurement. The concern has been raised as the Pre-qualification schemes appear to have been commonly used by some councils for the procurement of goods and services. There has been conjecture, however, over whether the schemes meet the requirements within Section 55 of the Local Government Act.
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LGP held the view that the Pre-qualification schemes did NOT meet the requirements of the Act. A legal opinion was sought which confirmed our view. We have now sought advice from the Division of Local Government (DLG) and their response confirms that councils utilising NSW Procurement Pre-qualification scheme contracts are NOT meeting the requirements of Section 55 of the Act.
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Note that NSW Procurement does have many panel contracts that councils can use without compliance concerns. LGP recommends that councils check the basis under which the panel contract was established to test compliance before making use of that panel. The responsibility lies with the individual council.
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Please note that the State Motor Vehicle scheme – which is a Pre-Qualification panel is being reviewed. LGP have been working with NSW Procurement to ensure that this scheme can be amended to meet the requirements of councils. The required changes are being explored and we will notify councils when/if this scheme can be altered to meet the needs of councils.
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A copy of the DLG advice follows. DLG have approved LGP distributing the advice to councils.
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We suggest that all relevant council staff are made aware of, and act on, this advice.
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For any advice on this matter please contact the LGP office on 02 8270-8700.
Regards
Brian O’Mara
General Manager
