11 March 2016
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LGP News March 2016

" Keeping you connected in local government procurement "


Good Governance - What is It?

by Local Government Procurement


Good governance is often seen as an ideal to be achieved within the local government sector. But what is governance, and more so, 'good governance'? The Governance Institute of Australia defines governance as: 

"Governance encompasses the system by which an organisation is controlled and operates, and the mechanisms by which it, and its people, are held to account. Ethics, risk management, compliance and administration are all elements of governance"

Almost all local government organisations seek to promote good governance as a priority, but unfortunately some fall short. Fortunately, good governance can be defined and achieved by some of the following key characteristics:

Accountability is a key principle in good governance. It is important to identify who is accountable and this should be stipulated in policy statements. Local government is responsible to those who will be affected by their decisions or actions, such as the community.

Information should be easily understood, freely available and directly accessible to those who will be affected by governance policies and practices, as well as any outcomes. Stakeholders should be able to see clearly how and why a decision was made, and what information, advice and consultation was considered during the decision process.

Effectiveness and Efficiency
Local government should implement and follow processes that make the best use of available people, technological, financial and environmental resources to ensure the best possible results for the community.

Participation is a fundamental element as it encourages those who are affected or interested in a decision, an opportunity to participate in the process for decisions made by local government. It can happen in different ways, such as giving community members an opportunity to provide information or recommendations to contribute to the best interests of local government and the community.

These key characteristics can contribute to maintaining good governance practices within local government. Although good governance is an ideal that is difficult to achieve in its entirety, it can be accomplished by involving well-intentioned people and organisations who collaborate their ideas, experiences, and opinions to attain good governance within local government.

We are excited to announce that this year's 2016 Local Government Procurement Annual Conference theme is Effective Governance: An Essential Part of Procurement. In the past decade Local Government Procurement (LGP) has strived to promote procurement excellence and efficiencies within local government, and understand the importance promoting good governance through education and practices. The conference will incorporate governance, probity and good procurement practices, and include a range of speakers and workshops over the two day event.

More information will be available soon on the LGP website. If you have any enquiries please contact LGP Events on 02 8270 8700 or by email.


LGP Celebrates Ten Years in 2016

This year marks the tenth anniversary for Local Government Procurement. Since our commencement on 21 August 2006, we have grown from a small business into a dynamic organisation offering a wide range of products and services to our valued customers, and have saved councils in NSW millions of dollars calculated by time saved and competitive pricing on products and services offered by our approved contractors.

We are proud to have provided a solution for councils, state agencies, not for profit organisations and universities over the years and will continue to do so, with a range of services covering a variety of contracts, professional development, new and improved high quality training services, specialised procurement services and networking opportunities, including our annual conference.

We look forward to continue working with you and providing a variety of solutions for your organisation. If you would like to know more information about who we are as an organisation and our past achievements, please visit our website here.


Procurement Workshops

LGP facilitate procurement workshops which are designed to enable councils to best support their existing procurement function and make best use of the LGP contracts. The feedback received from these workshops has been extremely positive and considered to be providing exceptional value to the councils.

The aim of the workshop is to increase awareness and understanding of the contracts, along with providing guidance on how councils can obtain best value under the contracts by undertaking good procurement practices. The workshops also provide a platform to explore the benefits of regional collaboration and a sector wide approach towards procurement.

The training is facilitated by your local LGP Business Manager and workshops are approx. 2.5 hours in duration and are run at no cost to council. For further information on holding a workshop in your council please contact your LGP Business Manager.


LGP Training -
New Face-to-Face Learning

LGP are pleased to announce the launch of our new training and eLearning programs to be rolled out over 2016. Our new program is being delivered in partnership with ArcBlue, one of Australia’s leading procurement and contract management training organisations.

Our new face-to-face training program features a range of interactive and leading practice modules, designed specifically for NSW local government, covering ten critical areas of procurement and contract management:

  • Planning and Specifications (1 day)
  • Procurement Essentials (1 day)
  • Evaluation, Supplier Selection and Contract Establishment (1 day)
  • Spend Analysis for Savings, Efficiencies, Compliance & Collaboration (1 day)
  • Stakeholder Management (1 day)
  • Social Procurement and Economic Development (1 day)
  • Probity in Procurement and Purchasing (half day)
  • Contract Management Essentials (1 day)
  • Advanced Contract Management (2 Days)
  • Procurement for Councillors and Executive (half day)

The courses are all available to be delivered in your council or for your ROC or JO or through LGP’s Open Training Program. The first courses in the new Open Program will be held in Sydney CBD as follows:

  •  12 April 2016     Planning & Specifications (1 day)
  •  13 April 2016     Evaluation, Supplier Selection & Contract Establishment   (1 day)
  •  14 April 2016     Contract Management Essentials (1 day)

Also our new soon-to-be launched eLearning program will use state-of-the-art technology to deliver cost effective training, specifically designed for council employees engaged in purchasing, quoting, tendering and contract management. More information on our exciting new eLearning program will be available soon.

The next round of face-to-face training courses will be announced shortly. To register or for more information please send enquiries to training@lgp.org.au.


How will Amalgamations Affect your Council’s Contracts?

We are all aware that the land of local government as we know it appears to be about to change. Under the influence of amalgamations many councils face the prospect of ceasing to be.

This brief paper will consider how amalgamations will affect the contracts your council currently holds and those which it is about to execute. Some key points in the article include:

  • Amalgamation will mean that some councils as we now know them will cease to be. Thereby the chance for existing contracts to terminate may be real.
  • It is likely that legislatures will ensure continuation of existing contracts through savings and transitions clauses.
  • However, this does not prevent your council from being proactive and having key clauses drafted to assist.

Monica Kelly from Prevention Partners NSW explains more here.


LGP Gateway Program - Helping Indigenous Businesses get Government Work

As part of a government initiative to stimulate Indigenous business development and opportunities, LGP (joined with the support of Supply Nation) will be offering a free procurement training session, ‘Supplier Tender Training’ on Wednesday 6 April 2016 to suitable participants working within the Indigenous business sector.

Those attending will learn basic principles and best practice in tender writing, including gaining valuable insights from the buyers’ perspective about how proposals are considered and evaluated. Although the training session will focus on preparing tender responses for purchases over the $150,000 threshold, the skills that will be learnt are relevant in a wide variety of business contexts, including preparing quotes and expressions of interest for smaller projects.

There are only 16 places available for suitable Indigenous business owners or operators to register, so hurry before all available places are gone.

For more information on the training session or to register your interest please contact LGP’s Business Manager, Sasha Kostic, on 0475 829 508 or by email to discuss this opportunity.


LGP Request for Tender for Supply of Electricity and Green Power for Participating Councils, Universities and Not For Profit Organisations  (EL0116)

LGP advises that we will be going to tender for the supply of:

  • Electricity for large and small sites;
  • Electricity for street lighting; and
  • Green power.

Your Opportunity to Participate
The opportunity to participate in this process is being offered to all councils, universities and not for profit (NFP) organisations in NSW on existing contracts with LGP or elsewhere expiring between 30 June 2016 to 30 June 2017. LGP would like to invite you to join in this new process.

LGP constantly monitors electricity market trends on a daily basis in order to determine when is the best time to go to the market with a Request for Tender. We anticipate going to market within the next 6 to 8 weeks.

Register Your Expression of Interest Now to Participate in this LGP Electricity Tender Process
At this stage you are only required to register your Expression of Interest in participating in this process. Your registration does not compel your organisation to participate in the process, as your commitment will be verified once a maximum price is established later in the process.

LGP urge interested councils, universities and NFP organisations to promptly nominate their Expression of Interest so that LGP has adequate time to obtain your electricity consumption and profile information prior to tendering.We strongly suggest you read the proposed tender process. To view the document please click here.

To complete your online registration/participation form, please click here. If you would like further information please contact Peter Flood, Category Manager, Utilities on 02 8270 8727 or by email.


2016 Global Forum on Sustainable Procurement: 
Innovative Success Stories From 5 Continents

The 2016 Global Forum on Sustainable Procurement will be held on 2 May 2016 in Sydney NSW. The forum will provide the opportunity to hear some of the world’s foremost sustainable procurement practitioners at a truly unique event for Australia. The forum will answer questions such as:

  • What’s being done around the world and in Australia?
  • What are the leading practices across all sectors?
  • What is the future direction for sustainable supply chains?

A series of short and powerful presentations will be offered along with practical experiences from sustainable and socially responsible procurement functions and supply chains, as well as insights on upcoming publication of ISO20400, the first international guidance standard on sustainable procurement. 

To view the forum prospectus click here. For more information visit the website here.


Are You a Not for Profit Organisation Interested in The LGP Electricity Tender?

Are you a not for profit (NFP) organisation or aware of any NFP organisations who are in interested in the current LGP Electricity Tender process? 

NFP organisations are eligible customers who may be able to participate in this tender, as well as access most LGP contracts available. LGP strongly encourages NFP organisations to take advantage of this tender opportunity for the benefit of potentially favourable pricing through aggregation of electricity. 

Please note that for NFP organisations participation is subject to approval and validation of their status as an approved not for profit organisation. For more information please contact Michelle Gavri, Business Manager on 02 8270 8712 or by email.


New IT Contract Due for Commencement on 1 April 2016


In the past LGP had maintained three individual IT related contracts:

  • Telecommunications;
  • IT Hardware; and
  • IT&C Professional Consulting Services.

Technology is converging and the limitations of separate contracts make the procurement of a solution prohibitive e.g. your council would like to refresh or expand their network. This project requires an assessment of the existing set up, design and implementation of the new and perhaps monitoring to ensure it is optimal. Rather than engaging contractors under two or three contracts, each with different terms and conditions and structures, your council can now do so more easily under just one contract.

What did we change?

  • Our approach to market - LGP conducted an EOI followed by 15 selective tenders for each of the 15 identified categories;
  • The structure of the usual Terms and Conditions – LGP will have a header agreement applicable to all categories. This will be accompanied by special terms and conditions applicable to each specific category; and
  • Our Buyers Guide configuration – there will be a main page providing an overview of the entire arrangement and in addition a link to the 15 individual categories. Housed in each link will be the specifics about the category such as a list of approved contractors, pricing, special terms and conditions and other relevant information.

What did we improve?

  • 15 categories may sound like a lot but combined with the various subcategories we will be able to provide better short lists of contractors from whom quotes can be sought;
  • Eligibility for a category is targeted. Tenderers have had to demonstrate their suitability for the panel at the category level– no more broad, ambiguous categories;
  • Linking the categories for project work by having the header agreement supplemented by the special terms and conditions; and
  • Flexibility to enhance the panel in the future; if a particular category seems inadequate LGP can run a process to specifically build on it.

What wasn’t broken?

  • VendorPanel will still be the most effective way to source a competitive bid from the panel. Buyers can begin their process by selecting one or multiple categories then further selecting by subcategory. Lastly they can refine their already refined short lists using the filter tags; and
  • LGP’s contract management regime will continue to ensure that the panel remains a quality panel of compliant and dedicated contractors.

Want to know more?

For more information on the categories and the tenderers visit the LGP website here. If you require any further information regarding the process or the new contract please Angela O’Dea, Category Manager on 0428 289 878 or by email.


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.


Procurement Tip
of the Month

By LGP Procurement Services Team

In any procurement process an evaluation plan is important to outline the process that will be followed from end-to-end.

This information may include:

  • Evaluation criteria and the associated weightings to be applied
  • Evaluation methodology
  • Members of the evaluation committee and a description of their roles
  • Procurement method
  • Timelines
  • Responsible officers
  • Authorisation to proceed.

Want to
Kow who is your Business Manager 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.


Diesel Dirt & Turf Expo 2016

The Diesel Dirt & Turf Expo was established in 2015 and is a special family-friendly event designed to boost the Western Sydney construction boom The Expo is managed by representatives of the Australian earthmoving equipment industry and aims to help construction contractors keep up to date with the latest technology in earthmoving, construction, and public space maintenance equipment.

The Expo is committed to bringing the biggest range of earthmoving machinery dealers, earthmoving attachments, trucks, boats, bikes, mowing equipment, and much much more to visitors over the event.

Admission to the Diesel Dirt & Turf Expo is free and open to all, especially to LGP customers and their families. The Expo will run on 15, 16, 17 April 2016. All profits from a fundraising evening will be shared amongst three charity organisations - MIRAA House, Make-A-Wish Foundation, and Nepean Hospital. For more information, visit the Diesel Dirt & Turf Expo's website here.