New Contract Launched

Solar Power Purchase Agreement

Nothing stays the same at LGP and we are always looking for ways to improve our service offering to our customers.  This month, LGP launched a new service of rooftop Solar Power Purchase Agreement (PPA).  This commenced on the 1st March 2018. 

What is PPA I hear you ask?

PPA is an arrangement in which a solar service provider designs, builds, owns, operates, monitors, and maintains a photovoltaic (PV) system.  You, the customer, agree to site the system on your rooftop or elsewhere on your property and to purchase the system's electric output from the solar services provider for a predetermined period and price.

These arrangements enable a customer to avoid many of the traditional barriers to the installation of solar systems.

A few benefits of a Solar PPA are:

• No upfront capital cost,
• Predictable energy pricing,
• Offsets some, or all, of a premises electricity consumption from the grid,
• No system performance or operating risk – you are still connected to the grid.

PPAs are commonly provided by companies specialised in solar systems design, development and installation and they will install a meter to measure the output of the system.

So take the next step to see how solar PPAs may be utilised within your organisation to reduce energy costs and lead the charge on carbon.  Ask your friendly Business Development Manager for further information, or contact Peter Flood, Category Manager - Utilities via email.

'Networking Meeting' - Sydney

Registration Now Open!

LGP would like to extend an invitation to all NSW council staff to attend the upcoming 'Networking meeting' in Sydney on Thursday 5th April.

The event aims to further build the capability of procurement in NSW local government. This year we promise to deliver another exciting and informative program covering off on current topics and issues.

This event is free of charge to the local government community and is a great opportunity to network with your peers, gain awareness and knowledge of topics covered and for ongoing professional development. The agenda will be out shortly, however the highlights of the day are as follows:

• Probity session – Phill Scott, Head of Contracts and Tendering
• “Sustainable Choice and ISO20400 Training” – Sara Lindqvist, Sustainable Choice
• The Auditor-General's Mandate and Observations on Procurement Practices – Presenter from the Auditor-General’s Department
• Procurement Practices and LGP Update
• Buy Regional Program – Alicia Te Hiko, VendorPanel
• Legal Session – Monica Kelly, Prevention Partners

We will also have time for the popular 'Q&A Panel Session' that will be open to the floor to ask questions and discuss ideas with the attendees on the day and the guest speakers.

LGP Regional Procurement Training

Wagga Wagga - Wednesday 23 May/Friday 25 May

While you attend the 'Networking in the Bush' event at Wagga Wagga on Thursday 24 May, we would like to provide you with the opportunity to attend procurement training locally. 

Course fee: $600 (exc. GST)
Duration: Full-day (9:00 am - 4:30 pm)
Location: Wagga Wagga (Venue TBC)

Please register your interest now so that we can plan for the delivery of the most sought after training courses regionally for you.

Sustainable Choice would like to invite council staff involved in procurement and sustainability to attend the upcoming Sustainable Procurement Forums.

One of the many services offered by Sustainable Choice are the Annual Sustainable Procurement Forums. These forums are a great opportunity to learn more about sustainable procurement, network with your peers and gain knowledge through presentations and case studies on sustainable procurement.

There will also be a number of suppliers at the forums to showcase technology and innovation in sustainable products. 

The 2018 forums are an opportunity to discover ways to implement sustainable procurement effectively within your organisation; with a focus on resources and tools, case studies, electric vehicles and charging stations, sustainability in tenders and social enterprise. 

The following forums are scheduled for 2018:

• 2 May – Sydney, Manly Town Hall
• 8 May – Shellharbour, Council Auditorium
• 27 June – Byron Bay, Byron Bay Services Club

The Local Government Procurement Conference is an established industry event for NSW local government. 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.  It is also an excellent opportunity to attract potential customers and build on existing relationships already established.

The conference will be held on Thursday 18 October and Friday 19 October 2018 at Doltone House, Darling Island Wharf, Pyrmont Point.

Sponsorship opportunities are limited. Suppliers who wish to participate as a sponsor or as a trade exhibitor can view our Sponsorship Prospectus.

Simple is Often Best

by Tenders and Contracts Team​

Some procurement staff may not be aware of the recently released Local Government Capability Framework.  This framework includes Procurement and Contracts.  The Capability Framework has come about because local government expressed a strong desire for capabilities on performance and behaviour.

The framework was developed by LGNSW and covers desired behaviours & attitudes. NSW councils can choose whether to use the framework or not.  The important thing for those of us in procurement to know is that it describes the core knowledge, skills, abilities and other attributes expected in a range of areas including procurement and contract.  Levels covered include Foundational, Intermediate, Adept, Advanced and Highly Advanced.  The information may assist you in developing your procurement team and in drafting job descriptions and work plans.

For further information click here.

At the Commonwealth level, the Attorney-General’s Department has released a public consultation paper titled Modern Slavery in Supply Chains Reporting Requirement.  The intention is that business will in the future, be required to monitor its supply chains for evidence of slavery situations and to publish a ‘modern slavery statement’ annually.  Presumably some form of audit will be required.  Some public companies are already making related statements in their annual reports.  The proposed revenue threshold for reporting is expected to be set no lower than $100 million of total annual revenue.  The Australian Government is considering ways to demonstrate leadership including consideration of a procurement connected policy on human rights.  State Government is also considering its options in this regard.  Conceivably local government may be affected in due course.

For further information click here.

LGP Training would like to continue its pursuit to support in developing your knowledge and skills in procurement and contracting space during 2018. We are equipped to cater to your varied procurement training requirements through the following four suites. More details in the links below:

eLearning: You can control your learning through this choice that we deliver using a state-of-the-art technology. Currently, the following three modules are on offer:

• Procurement Essentials
• Contact Management
• Probity in Procurement

Public Courses: These face-to-face training units are delivered at our LGP office based in Sydney CBD. We provide a range of interactive and leading practice modules comprising of the following critical areas of procurement and contract management:

• Procurement for Local Government 
• Contract Management Essentials 
• Advanced Contract Management 
• Supplier Tender Training
• ISO 20400 Training
• Planning and Specifications 
• Spend Analysis for Savings, Efficiencies, Compliance & Collaboration 
• Evaluation, Supplier Selection and Contract Establishment 
• Social Procurement and Economic Development
• Project Management Essentials

Customised On-site Training: LGP Training can reach out to your premises and deliver any of the above-listed modules. If needed, the contents can be contextualised with client specific case studies, templates, policies & procedures for better expected outcomes in a more cost effective way.

Nationally Recognised Training (NRT) in Procurement: In partnership with ProLeaders Academy (Registered Training Organisation), we offer the following accredited Nationally Recognised Training from Certificate-IV to Advanced Diploma levels.  

• Certificate IV in Procurement and Contracting
• Certificate IV in Project Management Practice
• Diploma of Procurement and Contracting
• Diploma of Project Management Practice
• Advanced Diploma of Procurement and Contracting

For more information and to register click here.

Upcoming Training Sessions

ISO 20400 Training for Senior Management

This is a full day course designed to provide participants with an understanding of ISO 20400 on sustainable procurement and how it can be used in their own context and professional role.

This course covers how to analyse a council’s current sustainable procurement framework, identify drivers for sustainable procurement and define a sustainable procurement strategy and program of work that is tailored to your council’s context.

This course is targeted at: procurement management, management staff in charge of environmental, social and economic issues, management in finance, legal, HR, engineers and operations.

Date of upcoming session: Thursday 17th May 2018 (9:00 am to 4:30 pm)
Venue: LGP Office, Sydney CBD
Course fee: $600 (exc. GST) for non-members or $500 (exc. GST) for members.

For any information or assistance regarding training, please contact Niv Roy, Training Manager on 02 8270 8709 or send an email.

There is no legislative requirement to run a tender process for banking services in NSW*.

So what is the imperative to ‘test the market’ when there is no legislative compulsion to do so?  Since the privatisation of banks, the local government sector has had the perfect opportunity to ‘test the market’ and access much more competitive rates and value for money. Very few councils have pursued this opportunity through a public tendering process. LGP believes the expenditure for Banking and Bill Payment services for almost all of the 128 councils over the term of the current contracts would easily surpass the tender threshold of $150,000.

Does your council’s procurement policy include or exclude Banking and Bill Payment services? Are you aware of what your annual contract spend is on these services?  Do you know how long your council has been banking with the same bank? Could it be 5 years or 10 years without the contract being reviewed? One large regional council has been with the same bank for over 100 years! Is this good practice?

*Local Government Act 1993 (NSW) section 55(1)(f)

For more information read full Case Study or contact the LGP Consulting Team.

LGP Consulting Team

LGP extends its expertise and experience to provide councils with an additional service through its Consulting Team.

LGP’s Consulting Team are well positioned to facilitate end to end tender processes on behalf of individual councils.  Our Consulting Team comprises highly qualified and experienced professionals who have demonstrated success in facilitating tenders on behalf of councils.

Examples of recent tenders we have conducted on behalf of individual councils are:

• Refurbishment of Library Building
• Legal Services Panel – two individual council tenders
• Internal Audit Services
• Natural Resources Services
• Management and Operation of Swimming Centre
• Security Services - two individual council tenders
• Food and Garden Organic Processing
• Scrap Ferrous Metals, Green Waste Processing, Crushing and Screening of Concrete and Waste Bin Audit (4 separate tenders for a group of councils)
• Remediation of Land works
• Development and Management of Caravan Park (EOI)
• ICT Services Provider
• Vehicle Leaseback
• Cleaning Services
• Trade Services Providers
• Lighting and Sound Technician Services
• Dry and Wet Plant and Equipment – two individual council tenders
• Insurance Broker and Insurance Brokerage Services  for ten councils (joint tender process)
• CBD Reconstruction Tender

If you have any requirements for tender facilitation for any product or service please email the LGP Consulting Team or call 02 8270 8747.

LEAP, a low cost ongoing continuous improvement program that uses real data and evidence to improve procurement capability of council, continues to gain momentum!

We are pleased to inform you that the LEAP program has now been successfully rolled out to five councils, with more councils expected to sign up shortly. Councils such as Inner West, Armidale and others are now able to demonstrate the effectiveness of their current procurement programs and show the plans and savings they have made.

If you would like more information about the program, please email us or visit our  website.

The LEAP program is delivered to councils by LGP in association with ArcBlue.

Update - 'Networking in the Bush' - Coffs Harbour

The first networking meeting for 2018 was held in Coffs Harbour on the 22nd February, 2018 at the Cex Club. The day was a tremendous success attended by staff from Coffs Harbour and 17 surrounding councils within the region.

The General Manager of Coffs Harbour City Council, Steve McGrath, officially opened the event and the agenda for the day was well received and full of current topics.

This year LGP has partnered with the NSW Audit Office and was very pleased to hear them present to the group on the findings from the 2017 audits. Discussions were held on the latest procurement issues in the contract and legal space held by Phill Scott (Head of Tendering and Contracts – LGP) and Monica Kelly (Principal - Prevention Partners). We also heard from Sustainable Choice on the new ISO 20400 for Sustainable Procurement and Vendorpanel on their Local Supplier Engagement Tool.

In addition, we heard from our 2018 Networking Meeting Sponsor, Boral, who provided the group with an informative briefing on the storage and handling of bitumen emulsion. The day was wrapped up with a Q&A panel session, where questions from the group were discussed and various viewpoints put forward.

We had close to 50 attendees present representing many different sections of council such as procurement, fleet, finance, engineering, governance, economic development and executive. Councils in attendance included Coffs Harbour, Bellingen, Uralla, Armidale, Kempsey, Nambucca, Moree Plains, Glen Innes, Clarence Valley, Richmond Valley, Tweed, Kyogle, Lismore, Gwydir, Liverpool Plains and Tenterfield.

A great day was had by all, discussions were robust with excellent networking providing an opportunity for collaboration and sharing of information which was pivotal to the success of the day. It is with great pleasure that LGP is able to share some of the delegate feedback from the day, truly acknowledging that this is an extremely valuable and much needed event in local government.

• “a very informative event”
• “interesting and worthwhile”
• “valuable and really inspiring”
• “very well executed by a very knowledgeable team”

On behalf of LGP, I would like to thank all those that attended for contributing to a successful day and I look forward to facilitating future networking events in Northern NSW.

For information, the metro networking meeting will be held in Sydney on Thursday 5th April, followed by another regional event in Wagga Wagga on Thursday 24th May. For further information, please visit the LGP website.

Jessica Jones
Business Development Manager, Northern NSW

Frequently, my council clients ponder whether the insurance they require from their contractors is sufficient, both in value and form. In considering this we all understand and appreciate the place that well-drafted policy holds, which begs the two following questions:

1. Are the values of insurances required from your contractors, contained within your relevant policy, suitable; and
2. Is the policy flexible enough to satisfactorily deal with deviations from it?

This brief article considers the issue of insurance coverage and asserts that there is no hard and fast rule regarding coverage amounts or even what coverage to ask for. In this article you are encouraged to identify and consider the relevant factors and make informed decisions on a case-by-case basis.

After undertaking the analysis recommended here you will be in a position to know with a degree of assurance which risks you need protection from and how much protection you need.

Message to take away

• Understand your risks and how these can be mitigated.
• Understand what the insurance policies offer, not just what they are called.
• It is best practice to have a policy that is flexible enough to accommodate the risks associated with contracts, not just a box-ticking exercise.
• Undertaking risk assessments for the project your council is contracting out will help you decide what types and how much coverage you need.

Monica Kelly from Prevention Partners explains more here.

Contact Prevention Partners NSW on 0438 280 621 or email to assist.

If there is any topic you would like covered next month, please feel free to contact Prevention Partners NSW to make suggestions.

The new VendorPanel Multi-Party Evaluation module helps simplify the process of collecting and making sense of evaluations from independent evaluators. The module sits at the end of the VendorPanel sourcing process and it automates the aggregation of scores which allows you to easily manage a consensus decision process. It also automatically creates a Value-for-Money chart (below) which provides a visualisation of the Vendors responses and alerts the buyer to the vendor efficiency frontier. Vendors on the frontier represent better performance and/or lower cost and should therefore be your first pick.

The application has been developed in partnership with 1000minds, the world’s leading developer of Multi Criteria Decision Making (MCDM) tools. The team at 1000minds are leaders in the field of MCDM having published research in this field of expertise.

The new feature will be released in March. We will be scheduling Webinars for our upgraded VendorPanel clients in the coming weeks to show the new module.

Click here if you would like to schedule a demo or find out more about Multi-Party Evaluation and VendorPanel in your Council.

Alternatively, please contact VendorPanel Commercial Manager for Local Government, Alicia Te Hiko via email or  call (03) 9095 6181.