LGP News - May 2018 " Keeping you connected in local government procurement "
Procurement Manages Risk, Cost and Supply Chain for Engineering Projects by Luke Kenny, Chief Executive Officer The concept of “Supply Chain” is how procurement should be positioned in the world of local government construction and infrastructure development projects. In our day-to-day activity working
with councils we hear how procurement in a council is rarely engaged in a major infrastructure project. Often procurement is not involved in a construction project, or they get brought in when it’s too late. Procurement can sometimes be the people who make sure final decisions can be retro-fitted to comply with guidelines. Here is where we argue when procurement is actually used as project ‘supply chain’ there is significant added value to a local government construction project. Procurement is Part of the Project Team Engineers usually have the role of preparing the technical specifications for the products and materials required for the project. As a project team member, procurement can deliver value by: - Planning the Market Engagement – After identifying the products and services to be sourced, a procurement plan can be developed and integrated to meet (not hold up) the construction program
- Securing Supply - Engage the supplier-market early to secure the supply of the required products or materials in line with the
project and construction timeline
Supporting the Construction Process
As mentioned earlier, procurement is rarely brought into a construction project at the right time (if ever). When procurement acting as the supply chain function is involved from the beginning, it can help avoid unnecessary project costs associated with inadequate time, these include: - Sourcing expensive alternatives due to a lack of available stock
- Expensive special production runs
- High costs associated with
fast-tracked transport solutions
Protecting Project Finances
In 2012, a review of 650 completed industrial projects conducted by the Business Council of Australia showed that Australian projects were 40% more expensive than similar projects completed in the US. Further, on average these projects ran 19% above budget. With procurement as part of the project team, it can preserve construction project budgets by: - Running RFx activities allowing time for quality submissions, and rigorous negotiations all preserved in well-built contracts
- Agreeing a flexible production or delivery
cycle to attract supplier discounts because early engagement allows them to better manage resources across a range of customer requirements
- Securing any excess products or materials at a discounted rate
- Avoid some of the costs outlined above in 'Supporting the Construction Process'
Procurement is about risk management, poor risk management can be the greatest threat to a construction project budget. Procurement can ensure any issues related to ‘supply’ don’t happen, or if they do, the financial
implications are contained. Supply chain management in a construction project can be managed by proficient procurement teams. Those who saw LGP present at the recent IPWEA Roadshow will know, LGP is driven to work with engineers in council to make sure procurement is understood, and proactively engaged to maximise value from rate-payers funds, and deliver high quality community projects. In August LGP is running its first Network Meeting to support our engineers in local government. Here you will hear from one of Australia's largest construction companies, a legal firm specialising in supporting construction
projects and a council case study. If you are part of the engineering team within local government and would like to attend the meeting, please click here to REGISTER. Thank you!
Microsoft Licensing for NSW Local Government via Microsoft Licensing Solution Providers
LGP108-3The new Microsoft Licensing Solution Providers (LSPs) Panel commenced on 1 April 2018 with two LSPs appointed to the Panel. The final panel is expected to be in place by mid May 2018. Please note that all LGP approved LSPs are also officially approved Microsoft contractors for provision of Microsoft Licenses and Services in Australia. To improve the LSP services to customers, this LGP contract offers Microsoft Licensing true-up assistance to optimise licenses, customer data protection and audit and access requirements through the LGP Standing Offer Deed. Any specific customer compliance requirements can be captured under the Customer Contract
through mutual agreement between the LSP and Customer, subject to the approval of LGP. LGP’s master agreement with Microsoft enables this exclusive arrangement for Microsoft licenses and services to all NSW Local Government Customers. For further Microsoft LSP queries, please contact Santhosh Dorairajan - Category Manager, ITC & Services, either by email or call 02 8270 8732.
Waste Audit Management Services
LGP118The new LGP118 Waste Audit Management Services Panel commenced on 1 May 2018 with six contractors appointed to the Panel. All NSW councils, county councils, approved NSW Government agencies and approved non-for-profit organisations may access this arrangement. Please note that this panel was earlier managed by NSW Office of Environment and Heritage Department. Audits through this panel can cover all parts of the waste stream, including municipal solid waste, commercial and industrial waste, construction and demolition waste, multi-unit dwellings and/ or single unit dwellings and various recycling streams. Audits can include visual
assessment or physical sorting, weighing, data analysis and waste audit reporting. They may be source based, depending on the context and purpose. Waste audits can be stand-alone projects for data collection or may form part of larger studies involving public places, an industry, or policy review. For further queries, please contact Santhosh Dorairajan - Category Manager, ITC & Services, either by email or call 02 8270 8732.
Codes of Conduct and Whistle-blowers - Opinionby Phill Scott, Head of Tendering & ContractsThe Hayne Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry continues to hold the
headlines and to take its toll on reputations, even to the extent of finance industry executives collapsing in Court. What is evident is that there are real questions to be answered concerning conduct in the sector generally and that of specific individuals. The Code of Banking Practice 2013 (Australian Banking Association) appears to have been largely ignored. Shame about the conduct within that sector. Within the local government sector, the New South Wales Office of Local Government released the Model Code of Conduct for Local Councils in NSW (November 2015). “Councillors, administrators, members of staff of council, independent conduct reviewers, members of council committees including a conduct review committee
and delegates of the council must comply with the applicable provisions of council’s code of conduct in carrying out their functions as council officials. It is the personal responsibility of council officials to comply with the standards in the code and regularly review their personal circumstances with this in mind.” At Part 7, Clause 7.9, it states: “In addition to your general obligations relating to the use of council information, you must: a) protect confidential information, b) only release confidential information if you have authority to do so, c) only use confidential information for the purpose it is intended to be used.” Breaches of the Code of Conduct by council staff may result in disciplinary action, termination or, in the case of non-senior staff, other penalties permitted under the relevant industrial award. Most councils have their own Code of Conduct requiring similar standards of behaviour. From time to time, people may become uneasy with ethical situations that they witness in the workplace and which they feel unable to have appropriately investigated or resolved. People may grapple with this for long periods and the risk is that, in frustration, they take matters outside the normal protocols and contact, for instance, the press. This can have disastrous consequences to the complainant, both personally and career wise. Council staff should be aware that there are a number of options available for reporting staff non-compliances, inappropriate or suspicious behaviour within their organisation. These include raising with the Chief Executive Officer, higher level supervisor, internal ombudsman, internal auditor, internal probity adviser, or a staff counsellor. Should council staff feel compelled to report staff non-compliances, inappropriate or suspicious behaviour, to someone outside their organisation, they might consider the Independent Commission Against Corruption (ICAC), State or Commonwealth Ombudsman, external auditor, external probity adviser, or the Police.
Recycling and the Role of Procurement The recent strengthening of China’s National Sword Policy, which places restrictions on the importation of recycled materials, is starting to have a big effect on the future of Australia’s recycling programs. Recycling programs in Australia are set to become uneconomical due to significant increases in handling costs for recyclable materials, as a result of China’s actions.
At this stage, many councils do not know what to do with their recyclable materials and do not know how they will handle future cost increases. One council in Queensland has already had to scrap their recycling program due to affordability and more councils are likely to follow. This of course will put additional pressure on our already fast-filling landfills. How can procurement contribute to solving this serious issue? There is a need to grow the market for recycled materials and public procurement provides a mechanism to strengthen local markets and the NSW recycling industry. Councils’ procurement decisions can contribute to closed material loops within supply chains by purchasing products made from recycled material and ensuring that products purchased are recyclable
and will be recycled at the end of life stage. The NSW Government is releasing a one-off package of up to $47 million to support local government and industry to respond to China’s National Sword policy. This will include funding support to improve council tendering processes to increase the production and use of recycled products. To learn more about this important topic and proposed funding support, attend one of Sustainable Choice’s upcoming Sustainable Procurement Forums. The NSW Environment Protection Authority will be presenting how councils can use their purchasing power to support the NSW recycling industry and
the continuation and processing of kerbside recycling. This presentation should trigger some great discussions. If you are interested in hearing more about this and other interesting topics, please register for our forum to be held on the 27th of June in Byron Bay.
For more information, please call the Sustainable Choice team on 02 8270 8703 or email.
'Networking Meeting' - Wagga WaggaRegistration Now Open! LGP would like to extend an invitation to council staff in the Southern NSW region, to attend the upcoming 'Networking in the Bush' event being
held in Wagga Wagga on Thursday 24th May 2018. 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 - Local Government Procurement
- Sustainable Choice and ISO20400 Training – Sara Lindqvist, Sustainable Choice - Local Government Procurement
- The Auditor-General's Mandate and Observations on Procurement Practices – Presenter from the Auditor-General’s Department - NSW
- Procurement Practices and Update - Michael He, Business Development Manager - NSW Southern Region, Local Government Procurement
- Buy Regional Program – Alicia Te Hiko, VendorPanel
- Legal Session – Monica Kelly, Prevention Partners NSW
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 While delegates attend the ‘Networking in the Bush’ meeting at Wagga Wagga on Thursday 24 May, we had planned to deliver two one-day training courses regionally. To meet the wider training requirements and to make
these courses viable for participants in terms of time and cost, we are now offering a condensed version of both the modules on 23 May. Modules on offer: Procurement for Local Government and Contract Management Essentials
Course fee per module: $300 (excl. GST)
Date: Wednesday 23 May 2018
Time: Procurement for Local Government 8:30 am. - 12:30 pm.
Contract Management Essential 1:00 pm. - 5:00 pm.
Venue: The Rules Club, Wagga Wagga Please register now for the course/s as seats are limited.
Sponsorship OpportunitiesLocal Government Procurement
Annual Conference 2018
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 SoldPlatinum
Silver
Dinner
Lanyard
Gold
Sponsorship Opportunities AvailableGold (1)
Entertainment
Drinks
Name Badge
Pen
Trade Display Stands
Large Format Display Area
Sponsorship opportunities are limited. Suppliers who wish to participate as a sponsor or as a trade exhibitor may view our Sponsorship Prospectus to confirm their participation as a sponsor/exhibitor.
LGP's New eLearning ProgramProcurement & Contract Management Learn on the go! Explore the newly created online courses! LGP has developed a brand new eLearning modular program specifically focussed on NSW local government. This package is hosted on a state-of-the-art Learning Management System (LMS) that will enhance the overall learning experience. List of courses - Procurement for Local Government
- Contract Management in Local Government
- Probity in Procurement
Benefits - Flexible learning option: anytime, anywhere.
- Multi-device operability (computer, laptops or any other mobile
devices)
- Interactive, engaging and independent learning
- Monitor, track and record learning journey
- Share knowledge and experience through discussion forums
- Administrative reporting on the progress and completions
Some of the other services on offer
include: - Customisation of LGP’s current modules
- Instructional designing
- Content writing
- Graphic designing
- eLearning programming using Articulate 360 (one of the best
packages)
For more information or for a trial access, please contact Niv Roy, Training Manager via email or call 02 8270 8709.
Upcoming Training Sessions
Procurement for Local Government - One day face-to-face training This one day course provides a comprehensive overview of the purchasing function within the NSW local government sector. The participants get to learn the end to end procurement life-cycle and practical ways to apply principals within this sector. This course is relevant for any staff involved in purchasing activities in a local government context. Date: Monday 14 May 2018 (9:00 am to 4:30 pm)
Venue: LGP Office, Sydney
Course fee: $600 (exc.GST)
Contract Management Essentials – One day face-to-face training In this module, participants learn the key rules of managing contracts in the local government sector and gain an insight of contract management life-cycle including procurement principles. This course is relevant for any staff involved in purchasing activities in a local government context. Date: Monday 18 June 2018 (9:00 am to 4:30 pm)
Venue: LGP Office, Sydney
Course fee: $600 (exc. GST)
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: Thursday 17 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.
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.
Councils Identify Cost Savings through LEAP
We are pleased to inform you that the LEAP program has now been successfully rolled out to six councils, with more councils expected to sign up shortly. The councils who have begun the program now have a clear understanding of their current procurement standard, a strategic improvement path and understanding of council procurement savings. Councils have been able to identify savings of around $750,000, through better procurement practices. To our knowledge this is the first time councils are able to identify savings. This number will only increase as the program continues. LEAP, a low cost ongoing continuous improvement program that uses real data and evidence to improve procurement capability of council, continues to gain momentum! 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.
Current TendersFor information regarding Local Government Procurement tenders, including current status, click here.
Current ContractsFind out what current contracts are available at Local Government Procurement here.
Upcoming TendersTo find out about upcoming tenders at Local Government Procurement, click here.
Contracts
AmendmentsTo find out information about amendments that have occurred between Local Government Procurement and Approved Contractors, click here.
Want to Know who Your Business Development Manager is at LGP?
Local Government Procurement has a dedicated team 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.
Sustainable Choice - The Sustainable Approach to Procurement in Local Government
Sustainable Choice assists local government to integrate sustainability into their procurement systems and purchase sustainable products and services. Every purchase counts and Sustainable Choice can make it easier; it’s the responsible and sensible approach to procurement.
Find out more about Sustainable Choice, its products and services click here.
Sydney Networking Meeting - Update LGP’s third 'Networking Meeting’ for 2018 was held in Sydney on 5 April 2018. The meeting was represented by 22 councils from all around NSW with 40 attendees from different departments such as procurement, fleet, finance, engineering, governance, economic development and executive. The agenda comprised of a range of current procurement related topics and presentations which
were well received. This year LGP has partnered with the NSW Audit Office and participants heard them present the findings from the 2017 audits of councils. Discussions were also held on the latest procurement issues in the contract and legal space with Phill Scott (Head of Tendering and Contracts – LGP) facilitating with Monica Kelly (Principal of Prevention Partners). We also heard from Sustainable Choice on the new ISO 20400 standard for Sustainable Procurement and VendorPanel on their Local Supplier Engagement Tool. In addition, we heard from our 2018 Network 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. From LGP’s point of view the day was an outstanding success. The next LGP networking meeting will be held in Wagga Wagga on Thursday 24th May. For further information and to register, please visit the LGP website.
Non Complying Tenders and the Process Contract
When calling for public tenders it is common for councils to also permit contractors to submit nonconforming tenders. This brief paper will consider how nonconforming tenders should be dealt with and whether breaching the process contract may be a risk that you need to be aware of. One thing I learnt at the Sydney Network Meeting on 5 April 2018 was that the terms ‘nonconforming’ and ‘noncomplying’ do not have universal definitions across councils. This leads me to think that if these terms do not have universal definitions within local government, it is most unlikely that the contractors will know what you mean by them. Message to take away - Define the terms you wish to rely on. Do not assume that ‘nonconforming’ and ‘noncomplying’ have universal meanings. Help the reader understand what council’s intentions are by defining these terms in the RFT.
- Before going to market decide whether you really want nonconforming tender submissions and what you will do with them.
- Make sure there are no conflicting statements in your tender documents.
Call Prevention Partners NSW on 0438 280 621 to assist. 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.
What's Happening With LGP Approved Contractors?
Playgrounds, Open Spaces, Modular Structures, Exterior Lighting, Recreational and Associated Infrastructure
LGP308-3
Para-Kenguru ProSpecially designed to aid people with disabilities to get out, workout and enjoy themselves. It urges people with disabilities to be engaged in the community and assists in their rehabilitation. It helps breakdown the stereotypes caused by misunderstanding and stops the separation of persons with disabilities from the rest of the community.
Para-Kenguru Pro has already been installed in many parks throughout Europe and is bringing the communities closer and developing closer relationships between all people. Maxim Popov – founder of Kenguru Pro - states: “We have seen communities using Para-Kenguru Pro breaking down the barriers that have previously existed. People of all abilities, ages and background are assisting each other to train harder, train better and build a stronger, healthier community. We have seen participation in body weight training and calisthenics grow exponentially over the past 5 years. It is now a global phenomenon and we encourage people – both able and disabled – to be a part of it.” Kenguru Pro equipment is in over 2500 locations globally and is now available for parks within Australia.
For further information contact Craig Dooley via email, call 0418 189 224 or visit the website.
VendorPanel
Multi-Party Evaluation…
Now Available!
VendorPanel has now released a new Multi-Party Evaluation module. The new module allows a buyer to manage a multi-party evaluation process in an online secure application that is fully integrated with the VendorPanel sourcing process. The application has been developed in partnership with 1000minds, a world-leading developer of Multi-Criteria Decision-Making (MCDM) tools. Paul Hansen, co-founder of 1000minds and Professor at the University of Otago, explains that there are two key components required to make a good procurement decision: - Relevant decision criteria and weights (presenting the relative importance of the criteria)
- Accurate ratings of vendors on the criteria
Though most organisations have a pretty good handle on their criteria, accurately weighing vendors on the criteria can be a struggle, especially when multiple evaluators are involved. The challenge comes from knowing how to resolve differences of opinion in evaluators’ ratings. This problem is amplified by the number of evaluators involved (and also by the number of vendors and criteria): the more the evaluators, the more room for differences of opinion. So, how do you keep track of potentially disparate ratings by the evaluators? How do you reach a final decision? It can all get very complex quickly, and this is where the new VendorPanel Multi-Party Evaluation module comes to the rescue. The module has been designed so that evaluators do not need to be registered users in VendorPanel. All that evaluators need is an email address. This
enables any internal or external person to participate as an evaluator - making it easy to include external evaluators such as consultants. Key benefits to your organisation include: - No more spreadsheets required to manage multi-party evaluations. This eliminates the need for potentially 100s of spreadsheets and the associated preparation - e.g. sending emails and arranging meetings - and significantly reduces the risk of poor decisions
- Easy consensus rating and final decision-making
- Online evaluation charts to aid analysis of supplier responses
- One-click evaluation reports available at the end of the process
- A complete audit trail (everything tracked and recorded online)
- Easy to use for non-procurement staff
VendorPanel Multi-party Evaluation is available now. If you would like to schedule a demo or find out more about Multi-Party Evaluation and VendorPanel in your Council please click here. Alternatively, to contact VendorPanel Commercial Manager for Local Government, Alicia Te Hiko please email or call (03) 9095 6181.
This year the NPSFM Conference 2018 theme is Emission & Safety in order to prompt and challenge delegates to consider the implications of emissions and safety policy on vehicle selection, fleet management, operating costs, disposals and the mobile workplace. The Conference will be held from 31 October to 2 November 2018 at Sydney Royal Stables, Sydney Olympic Park. Early Bird Registration is now open. To find out more click here.
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