8 December 2016

LGP News December 2016

" Keeping you connected in local government procurement "

Procurement’s Road to 2020 Paved with Uncertainty

by Luke Kenny, Chief Executive Officer

Since our last LGP News, we have successfully delivered our largest ever annual conference. My thanks go to all our delegates, sponsors, speakers and the LGP staff who did an amazing job to deliver a faultless event. My congratulations also go to the 2016 Local Government Procurement Awards winners. Jessica Duong from City of Sydney won the New Procurement Professional of the Year Award, Lyn Blain from SSROC won the Sustainable Procurement Initit Award. The big award winner was Kristie Ward from Mid Western Regional Council, as our 2016 Procurement Professional of Year.

“In 2020, Uncertainty is procurement’s only certainty”

One of my closing comments to the conference was our need as a group to acknowledge the change that is now over us. I was referring to the change that is here now with council mergers (underway or imminent) due to the reform across the NSW local government sector. I also want to share a little about the change that is facing the procurement profession, I ask you to think about what procurement will look like in 2020?

Let’s briefly explore some of the key factors to influence the change in procurement by 2020. The first is global political change where we have recent political structures dramatically transformed (e.g. Brexit, Trump as President-elect), however the impact has yet to be felt. We will certainly know the effect of today’s changes in global politics by 2020. Another impact on procurement by 2020 will be digital technology, some argue it has already invaded and transformed our personal lives, no doubt as people become more comfortable with technology, it will invade our workplace and become our way of working. Things to watch out for and be ready to adapt and embrace include cloud computing, the Internet of Things (IoT), video collaboration & communication, growing direction using business apps, drones, driver-less cars and artificial intelligence.

Gartner Maverick Research state in 2023, 30% of highly skilled workers will be replaced by smart machines. This includes doctors, stockbrokers, lawyers, professors. I suggest 30% of procurement roles we have today will similarly be at risk. Whether you are still working in local government or another sector (because it is everywhere), by 2020 you will be expected to embrace digital technology.

Most significantly for me, Deliotte talk about data-driven procurement. By 2020, I believe procurement professionals (applies to NSW local government and LGP) must become data analysts. We have to identify all our repositories of data, and learn how to analyse the data, turning it into procurement intelligence, and use this to drive future procurement strategy. Some strategies that will command procurement intelligence include; demand forecasting, inventory management, quality assurance, compliance and risk management. Most significantly for you, by 2020 Procurement Intelligence will be mandatory in how we quantify the return-on-investment your procurement function is delivering to your council. Procurement Intelligence may be your only ticket to get new resources, new systems or an audience with your General Manager.

When we consider all that is now happening, and all that will happen to NSW local government structures over the next three or four years, and what is changing in procurement globally, uncertainty is what we need to accept, uncertainty will make procurement transformation mandatory. Scary as that all may sound, LGP has a mission to provide a fully integrated procurement service to councils. LGP is, with LGP itself constantly evolving to meet this challenge, here and ready to discuss change that needs to happen in your council, so you can make the necessary procurement transformation.

From all of us here at LGP, we hope you have a lot of fun on your holidays, we wish you and your family a very happy and safe Christmas, we look forward to starting new activities with you in 2017.

Thank You - 2016 Local Government Procurement Annual Conference

The tenth Local Government Procurement Annual Conference was conducted on 17 and 18 November 2016 at the Sydney Masonic Centre. With a theme of 'Effective Governance: An Essential Part of Procurement' the conference addressed governance in procurement including appropriate levels of control and probity. Thank you to both delegates and exhibitors who participated in the conference, it was a great success. The verbal feedback from delegates at the conclusion of the conference was very good with many delegates taking away information to be implemented back at their organisation. Some comments included:

'Great mix and variety of expert input and shared colleague experiences'
'I think the conference would be beneficial to people starting out in procurement'
'The information and updates, networking opportunity and sharing procurement journeys and challenges is valuable'

The conference was attended by 95+ delegates from 58 councils and organisations. It was wonderful to see a large variety of delegates, speakers and exhibitors networking during the conference and creating new opportunities within local government.

The mock trial held on the Thursday afternoon provided a new twist on the traditional procurement hypothetical question and answer session. It was an interactive session with delegates being able to vote, via a mobile phone app, throughout the trial on whether the defendant was innocent or guilty.Overall, there was great feedback from both delegates and exhibitors attending the conference.

The speaker presentations conducted at the conference are available to download from the LGP website until Friday 9 December 2016.

The early planning has already begun for the 2017 Local Government Procurement Annual Conference. If you have suggested topics, speakers or general feedback which can be incorporated into the planning for the 2017 Conference, please send your comments through to the LGP Events Team.

Preliminary details for the 2017 Conference will be announced in February 2017.

Winners of the 2016 Local Government Procurement Awards

The Local Government Procurement Awards celebrate 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.

The winners were announced at the 2016 Local Government Procurement Annual Conference dinner and were presented with a plaque and certificate on the night. The winners are also eligible to professional development of their choice to the value of $2,500.

Jessica Duong, City of Sydney
NSW Local Government New Procurement Professional Award
Lyn Blain, Southern Sydney Regional Organisation of Councils
NSW Local Government Sustainable Procurement Initiative
Kristie Ward, Mid-Western Regional Council
NSW Local Government Procurement Professional Award

The category of NSW Local Government Procurement Professional was very competitive and the following nominees were recognised as highly commended.

Preston Parkes, Glen Innes Severn Council
Chris Hayne, Wollongong City Council

Thank you to all who submitted an application for the awards this year, we look forward to the 2017 Local Government Procurement Awards.

'Watts Up' - Electricity Pricing Update

Earlier this year, LGP concluded its latest tender for the supply of electricity. The majority of those councils that participated transfer on to this new arrangement from the 1 January 2017. Therefore, for your information, LGP would like to share with you the most recent graph from the ASX that shows the changes over the last 12 months of the NSW Base Futures for Calendar Year 2017.

In general terms LGP concluded this latest round in June 2016 when the Cal 2017 futures were approximately a flat $51.90 / MWh. As you can see from the below, the Cal 2017 futures are now sitting around $69.1 / MWh as at the 1st December 2016 – an approximate 33% increase.

This highlights the benefits that can be gained through participating in an LGP arrangement which are achieved, in part, through the aggregation of your electricity load, but also taking into consideration the timing of when to go to the market.

Whilst, prices may not fall in this volatile market, combining the benefits of load aggregation and timing we can minimise the impact of increasing electricity prices to all our customers.

If you would like further information please contact Peter Flood, Category Manager - Utilities by email or on 02 8270 8727.

Probity Perspectives -
Your Questions Answered

This month's question:

'Would you explain a process contract in relation to tendering with local government?'

When government entities undertake a tender process, often a process contract in relation to this tender process is created. This process contract is different to and separate from any contract for goods or services that is subsequently entered into with a successful tenderer. The process contract created applies equally to all tenderers and the government entity. It relates to the government entity following the procedure and criteria it stated it would follow at the outset.

If a tenderer believes the government entity did not follow the process, the tenderer may have an action for breach of process contract, in which case legal advice may be sought.

To submit a question please follow the link below. You may submit your question anonymously.

Submit your Question

LGP Probity Services
LGP is able to assist you with your probity needs. With over 90 years’ combined experience all LGP Probity advisers have completed training for the development of Probity Service Providers through the Resolution Institute (formerly LEADR and IAMA). To arrange a discussion please call LGP on 8270 8700.

Announcement of Road Funding Projects for Regional Roads and the Building Better Regions Fund (BBRF)

LGP would like to highlight an interesting and informative article by the President of the Australian Local Government Association, Mayor David O’Loughlin. The two announcements made by Government form part of the 24 November 16 response to the Australian Infrastructure Plan released on the 17 February 2016.

The Government’s response outlines the positive impact on Local Government; specifically focusing on funding opportunities that are now available. This article provides key information about road funding and the new Building Better Regions Fund.

For further information on the Governments response to the Australian Infrastructure plan released on
24 November 2016 click here.

For further information and to determine eligibility for the BBRF click here.

Review the article here.

Professional Consulting Services LGP1208-3 Special Update Bulletin

With 10 major categories, 70 sub-categories and 260 LGP Approved Contractors, this contract is vast in its scope. The major categories available under the contract are:

Architectural and Interior Design
Asset Management
Building Services Engineering
Civil Engineering
Environmental
Heritage Conservation and Planning
Landscape Architecture and Design
Planning, Design and Development
Surveying
Water and Waste Water Engineering

Important highlights of this bulletin include;

Availability of the sub-category structure and relevant providers now in the Buyers Guide
Flexibility of the different Contract Conditions on offer
The provision of an easy to use Quotation Template
Key procurement tips for your project

Click here for to review this bulletin. This is the first of a series of three bulletins distributed by LGP.

For further information on this contract please contact the Acting Category Manager, Jessica Jones by email or 0455 081 848.

Local Government Procurement Training

LGP are pleased to announce the upcoming dates for 2017 for the below training courses.

The Certificate IV in Procurement and Contracting, Diploma of Procurement and Contracting and Advanced Diploma of Procurement and Contracting for the year. LGP work closely with our registered training organisation (RTO) and council representatives to ensure that the skills learnt through our courses are applicable in the workplace, please see the LGP website for more information.

Certificate IV in Procurement and Contracting

This Certificate IV qualification will develop skills to enable you to:

Plan, conduct and manage procurement processes
Develop and manage contracts for the delivery of goods and services
Identify, plan for and manage risks in the procurement process
Exercise delegations

The course is conducted over 11 days, made up of two and three-day blocks of training with the last three days focusing exclusively on assessment. This accredited course is specifically developed for NSW council staff and is relevant to those who have any involvement in purchasing, stores, tendering and contract management function. See the LGP website for more information.

Dates are below:
Block 1: 8-10 May 2017
Block 2: 7-8 June 2017
Block 3: 28-30 June 2017
Block 4: 2-4 August 2017

Diploma of Procurement and Contracting

This nationally accredited qualification comes under the current PSP04 - Public Sector Training Package. It is a specialist qualification covering the competencies required for independent and self-directed work as a procurement and contract manager in the local government sector.

The Diploma is 11 days long, made up of two and three-day blocks of training with the last three days focusing exclusively on assessment.

Dates are below:
Block 1: 29-31 May 2017
Block 2: 21-23 June 2017
Block 3: 26-27 July 2017
Block 4: 14-16 August 2017

Please see the LGP website for more information.

Advanced Diploma of Procurement and Contracting

This is a practical program in which participants will develop the strategic management skills necessary to operate at the middle to senior management level in the public sector, with emphasis on conducting and managing higher level and more complex procurement processes. Participants will participate in significant case studies, negotiation scenarios, making presentations and will also examine the legal, legislative and policy framework within which higher level procurements occur.

The Advance Diploma is 12 days long, made up of two and three-day blocks of training. The last 2 days of the course are an assessment workshop.

Dates are below:
Block 1: 19-21 July 2017
Block 2: 28-30 August 2017
Block 3: 12-14 September 2017
Block 4:10-12 October 2017

Please see the LGP website for more information.

Upcoming Regional LGP Training

Procurement for Local Government
16 March 2017 – Casino

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.

Contract Management Essentials
17 March 2017 – Casino

This is a full day course designed to provide participants with an understanding of key principles that need to be observed when managing contracts in local government sector. Contract Management Essentials provides essential information on the contract management life-cycle including foundation insights to procurement principals.

For further information about the courses please see the LGP Training calendar.

In-house Training

Local Government Procurement Training can be conducted in-house. This training provides a cost effective opportunity to increase knowledge, develop skills and share examples. For a proposal please contact LGP Training or call 02 8270 8709.

LGP Training Needs Analysis

LGP Training in partnership with ArcBlue has created a tailored self-assessment tool to assist learners in identifying what training may be required to improve skills and knowledge. The LGP Training Needs Analysis is a comprehensive and concise analysis covering a range of procurement and contract management competencies. This tool enables learners to identify skills gaps in specific areas of training offered by LGP Training.

The LGP Training Needs Analysis is free to complete and will take approximately ten minutes of your time. On completion of the analysis a development report is provided to you, and help you understand what training modules suits your current knowledge level, and provide the opportunity to pursue further training offered by LGP Training.

Please contact LGP Training by email to register your interest in eLearning, face-to-face training or for more information about how to undertake the LGP Training Needs Analysis to receive your instant development report.

ProcureLearn 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:

Procurement Essentials
Contract Management Essentials
Probity in Purchasing and Procurement

For more information about ProcureLearn please click here or contact LGP Training by email.

Constructing Commercial Contracts

As contractual relationships evolve, it can be tempting to amend or add to an existing contract thereby giving rise to new contracts, rather than spending the extra effort in drafting complete new contracts. However, this approach should be avoided as the recent case of Perry v Anthony warns.

However, as best we can, please consider:

The parties' meaning and intention should always be clear in a contract
Contracts should not be amended or added to in order to give rise to new contracts. A new complete contract should be drafted and executed by the parties for each agreement
A well drafted contract in accordance with the rules of Plain English and one that accommodates all foreseeable situations is necessary to avoid the risk of costly litigation
Legal advice should always be sought in drafting a commercial contract in order to ensure the correct terms are used so that a Court's interpretation will not be required.

Monica Kelly from Prevention Partners explains more here.

Please note: Prevention Partners NSW will close from 28 November 2016 until 2 January 2017.

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.

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.

Procurement
Tip of The Month

By LGP Projects Team

Roles and Responsibilities in the Procurement Process

Defining roles and responsibilities at the commencement of any procurement process is an important part in the procurement planning stage. Roles and responsibilities must be established to ensure:

“Buy in” and engagement of relevant staff
Associated tasks are allocated to appropriately skilled and qualified staff
Requirements of the tasks are identified and allocated and due dates are agreed and confirmed
The expectations and outcomes of the team are understood and communicated as required.

Delays in the process may occur when staff are unaware of their responsibilities. This may have a negative impact on the project in regards to project deliverables, timelines and outcomes.

Current LGP
Tenders

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.

What's Happening With LGP Approved Contractors?

LGP1007-2 Office Supplies & Janitorial (including; Heavy Duty Cleaning) & Associated Products - Complete Office Supplies (COS)

COS – 100% Australian owned and active Corporate Citizen

COS is a B2B Office Supplies industry leader, driven by not only making a positive difference for our customers, but also our local community and environment.Below listed are some of the ways COS is actively making a social, cultural and environmental difference:

Environmental sustainability
COS regards environmental sustainability seriously and is actively and continuously working to minimise our global footprint. COS will shortly complete a project to install 1,500 solar panels on the roofs of distribution warehouses. These solar panels will produce 80% of the power required to run operations in this area. We have also sourced over 2,500 eco-friendly products. Click here to read more.

Indigenous engagement
As a Supply Nation member, COS demonstrates a strong commitment to local industry participation and increasing engagement with Indigenous communities. COS is an active networker within the Indigenous business community and the last three years has seen a significant increase in our involvement with Indigenous suppliers. Click here to read more.

Muru Group
COS is the exclusive distributor of the Muru Group range of office stationery. Each purchase of a Muru product provides direct social and economic support to Indigenous communities. Click here to read more.

The Lyone Foundation - By engaging with COS you can make a difference
The Lyone Foundation was established by the Lyone Family to give back to the country that welcomed them, and support charities that help other Australians during challenging times. 15% of COS profits are donated to Australian charities through the Lyone Foundation. Click here to read more.