LGP News October 2016

" Keeping you connected in local government procurement "

Have You Met the
Governance Manager?

by Michael Robinson, Acting General Manager

You may be aware that in some councils (perhaps even your own?) silos can exist between departments, some are even named “divisions” and that is exactly what they can be. When divisions exist between operational departments it can mean that a lot of good work is duplicated, overlooked or not communicated across the entire organisation, and this is not a good situation for the effective operations or culture of the organisation.

Whilst most councils now operate within a centralised or centre-led procurement model, there are some that continue as de-centralised which may lead to occasions where cross functional collaboration doesn’t happen to the level it could to ensure effective procurement. If a division or silo exists between the procurement and governance teams, I believe there is a fantastic opportunity to work more closely with the governance manager to draw on their expertise to further raise the bar of good governance and probity within the procurement function particularly with projects of high dollar value or risk.

The Governance Institute of Australia is a great resource for understanding what a governance manager does. The institute's website states that a governance professional's title will vary depending on the individual circumstances and needs of each organisation. However, in essence, a governance manager is someone who:

leads and advises on best practice in governance, risk management and compliance
champions the compliance framework to safeguard organisational integrity
promotes and acts as a ‘sounding board’ on standards of ethical and corporate behaviour
balances the interests of the board (or the council), management and other stakeholders.

Governance practitioners have a significant impact on the level and quality of corporate governance and governance culture within an organisation, including a pivotal role in assisting the board achieve the organisation’s vision and strategy.

Clearly the points above should ring true when dealing with tenders and procurement. I therefore pose the question to procurement managers – have you met (or work closely with) the governance manager within your council? If your answer is no, I would recommend arranging a time to do so and discuss how their knowledge and experiences could be drawn upon with specific projects or more broadly within the procurement framework. Likewise, I am sure there is much knowledge and experience you will be able to provide to add value to their role.

We are seeing more and more reasons for governance and procurement to work together particularly in the face of growing and instant availability of information which, on occasion, may lead to scrutiny from external stakeholders and the community. It is for these reasons that the theme of this year's annual conference is around “Effective Governance: An Essential Part of Procurement” to facilitate a program that brings these roles and functions of council together; the LGP team would like to meet all governance managers to hear and learn from their experiences. I therefore challenge all readers to make the governance manager (or staff in other relative roles) aware of the LGP conference to provide them the opportunity to network and share in the lessons learned from this year's program. Perhaps this article and conference may be a good conversation starter?

We are excited that this is our 10th annual conference and will be our biggest and best conference yet. We look forward to bringing procurement professionals together and learning from you all on 17 – 18 November 2016. If you would like more information please speak to your LGP Business Manager or view the information at the LGP website. It is not too late to take advantage of our early bird rates of $825 inc GST
(prior to and including 21 October 2016) or our first timer and CIPSA member rates of $660 inc GST.

We look forward to meeting the Governance Manager and you there!

Early Bird Registration Closing Soon

The 2016 Local Government Procurement Annual Conference, Effective Governance: An Essential Part of Procurement will address governance in procurement including appropriate levels of control and probity. Register now to avoid missing the early bird rate.

Dates and location
Dates: Thursday 17 and Friday 18 November 2016
Location: Sydney Masonic Centre, 66 Goulburn Street Sydney

The conference includes a mock trial which is a new twist on the traditional procurement hypothetical question and answer session. Allegations are rife on how a group of council staff went about awarding a contract to build a new footpath on High Street. The controversial court hearing will be enacted, at the conference. The prosecutor will call defendants (played by conference delegates) to the stand and the verdict will be decided by a jury of procurement and probity experts.

The mock trial, which involves delegates throughout the trial, will be a fun and interactive session. This is one aspect of a well-rounded conference program which focuses on procurement and governance. Click here to view the draft conference program.

Who should attend
The conference will bring together procurement and governance practitioners and local government managers to hear and learn about a range of governance and procurement challenges within the sector. The conference is an ideal event for those involved in governance and procurement.

Register now to take advantage of the early bird offer, as well as the special registration options listed below:

Early bird: $825 inc GST (prior to and including 21 October 2016)
Full fee: $990 inc GST
First timer $660 inc GST (a first timer is a person who has not attended the conference previously)
CIPSA member: $660 inc GST
Special offer for general managers and directors - attend the conference free of charge, when attending with a registered council officer.

Register Here

For further information about the LGP conference please visit the LGP website which is updated regularly or contact the Events Team by email or on 02 8270 8710.

Nominations are closing soon -
2016 Local Government Procurement Awards

The Local Government Procurement Awards celebrate those 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 awarded recipients will receive a personalised plaque and professional development training of the winner's choice to the value of $2,500. The Awards will be presented at the annual Local Government Procurement Conference dinner on 17 November 2016.

There are three categories open for nominations, and you can nominate yourself, another person or organisation. The closing date for nominations is 28 October 2016. To view a copy of the criteria questions click here.

Procurement Professional

To be eligible the nominee must have a minimum 2 years experience in procurement within NSW local government.
Nominate here

New Procurement Professional

To be eligible the nominee must have less than 2 years experience in procurement within NSW local government.
Nominate here

Sustainable Procurement Initiative

This award is for either an individual or organisation that has demonstrated exceptional sustainable procurement work.
Nominate here

For further information contact Emma Murray, Marketing and Administration Manager by email or on 02 8270 8710.

How can the LGP Projects Team help you?

The LGP Projects Team are able to alleviate the strain on council resources in this process by undertaking, for an agreed fee, the following activities:

Request for Tender documentation development
Evaluation and probity plan document development
Criteria (weighted and non-weighted) and scoring methodology development
Develop relevant returnable schedules
Tender release (pre-tender meeting) and tender close
Compliance and reference checking with shortlisted tenderers
Chairing the evaluation committee to determine the most suitably qualified contractors
Develop the recommendation report for approval by council.

The LGP Projects Team are also able to provide contract management services by offering the following services for the panel arrangements:

Contract execution (Including pre-commencement meeting)
Contract implementation (including VendorPanel registration)
Develop a contract management plan and/or provide ongoing contract management support.

The LGP Projects Team also has experience in the following areas:

RFX facilitation - end to end facilitation of the procurement process
Probity advice and audit service
Contract management support
Project management
Outsourcing placement services - provide an “in house” resource.

To find out more about the LGP Projects Team visit the LGP website or contact the team by email or on 8270 8700.

Probity Perspectives -
Your Questions Answered

LGP is pleased to announce a new section in LGP News, answering probity questions from readers.

Probity Question of the Month

We recently engaged a probity advisor to advise on our tender processes, including reviewing our tender documentation. We were told that the tender documents should be clear and concise. Why is this important?

When Council invites tenderers to respond to a tender requirement, probity risks may arise if the tender documents and related specifications and tender requirements are unclear due to poor drafting and inconsistent language in the tender documents.

Such documents may cause confusion and/or misunderstandings by tenderers, which ultimately, may cause a contract to fail or contractual disputes to arise. Clear and concise language promotes integrity and resilience across procurement processes, protecting Council from such risks.

To submit a probity 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.

Council Good News Stories

Do you have a good news story to tell about the great procurement related work being done by you, your team or council? If so we encourage you to tell everyone! Click on the Share Your Story button to share your experience. Your good news story contribution will be shared in upcoming editions of LGP News.

Share your Story

LGP Learning Centre - Upcoming Training

LGP will be conducting procurement training in Sydney in October 2016.
Council staff involved in any form of purchasing are encouraged to attend.

What are the benefits to councils?

A range of interactive and best practice modules covering seven critical areas of procurement and contract management
Specifically developed for NSW local government
Experienced trainers with hands on experience in local government
The content, case studies and activities are tailored with practical examples to maximise knowledge transfer.

Training Courses in November and December

Diploma in Government Procurement and Contracting

LGP are very pleased to announce that we have successfully commenced our first Diploma in Government Procurement and Contracting for the year, in association with our training provider Bayley and Associates. This course is due for completion in early November 2016. Please see the LGP website for more information.

Training Courses in November and December (continued)

Procurement for Local Government

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.
Register here.

Supplier Tender Training

This is a full day course suitable for any supplier who would like to win a public sector contract and wants to gain useful insight into the ‘do and don’ts’ of the tender process, including tender writing. Register here.

Planning and Specifications

This is a full-day course designed to provide participants with information on the key principles that need to be observed when writing best practice Procurement Planning and specifications development. Council staff will be able to develop a basic plan to develop requirements, ensuring that contract arrangements are effective and practical. Register here.

View the entire LGP Training calendar here.

Training is also available in your council or for your ROC or JO. For more information please contact Rebecca North, Training Coordinator by email or on 02 8270 8709.

Certificate IV in Procurement and Contracting – May 2017

LGP is now offering a Certificate IV in Procurement and Contracting commencing March 2017. This is a great opportunity for local government staff who work in the public sector in procurement or in the private sector seeking a good understanding of government.

The course conducted over 11 days, made up of two and three-day blocks of training with the last three days focusing exclusively on assessment. All LGP's accredited courses are currently being enhanced to ensure a focus on local government to meet your needs. Places are filling fast so please 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

If you would like more information regarding the course, please contact Rebecca North, Training Coordinator by email or on 02 8270 8709.

ProcureLearn is Now 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:

LGP online modules consist of the following tailored courses;

Procurement Essentials
Contract Management Essentials
Probity in Purchasing and Procurement

For more information about ProcureLearn please click here or contact Rebecca North, Training Coordinator by email.

Liquidated Damages Revisited

You may remember our paper from last year titled ‘’If it quacks like a duck and swims like a duck …’ Liquidated Damages that are really penalties in government contracts’’, which looked at the case of Andrews v Australia and New Zealand Banking Group Ltd.
However, Paciocco v Australia and New Zealand Banking Group Ltd appealed Andrews v ANZ, which has made determining the difference between a LD and a penalty more difficult than ever.

Make sure your LD are correctly drafted

It is difficult, after Paciocco v ANZ to categorically state how to draft LD clauses and solicitors across Australia are unsure exactly what the case means for contract drafting. However, as best we can, please consider:

Putting your calculations in the contract and tailor these as per each project.
Consider the various triggers of breach and quantify them.
Include general damages clauses as well as LDs and government contracts appear to still be able to accommodate loss of profit for delayed revenue, ongoing finance costs, contract administration costs and loss of public utility, amenity and benefit.

Monica Kelly from Prevention Partners explains more here.

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

Tendering Procedures

Each council should develop their own formal Tendering procedures. The procedures should include reference or links to the Local Government Act 1993 (NSW), s55, and Local Government (General) Regulation 2005, Part 7 Tendering, and the Tendering Guidelines for NSW Local Government 2009.

Specific relevant information should be included such as details on delegated staff responsible for opening tenders, preparing recommendation reports and general internal administrative duties associated with the tender process. The development and introduction of formal tendering procedures will ensure that the Local Government Act 1993 (NSW) , s55, and Local Government (General) Regulation 2005, Part 7 Tendering, are followed and will reduce irregularities in the tender process that could potentially cause additional costs and risks to council.

Sustainable Procurement News

Sustainable Procurement Forum - Wednesday 9 November 2016

Sustainable Choice is holding a Sustainable Procurement Forum on Wednesday 9 November 2016 at Parramatta Town Hall.

This forum is an opportunity to discover ways to implement sustainable procurement effectively within your organisation and will include relevant information in the form of strategies, case studies, and innovative resources for sensible, sustainable procurement.

Presentations on the day include case studies presented by councils, Good Environmental Choice will present on “What makes an Eco-Label good” and Mark Daniels from Social Traders will present on “The Value of Social Enterprise”. There will also be an update on ISO20400, the first international guidance standard on sustainable procurement.

The Sustainable Procurement Forum provides an opportunity for councillors, executive staff, engineers, asset managers, fleet and procurement officers as well as environmental professionals to discover sustainable products that are available and to learn more about their durability, reliability and certification. The forum will also provide opportunities to network with colleagues and to connect with suppliers and environmental innovators.

The Forum is free to attend but attendees need to register here. If you like more information please contact Sustainable Choice by email, on 02 9242 4000 or visit their website.

LGP Fleet Category Cost and Spend Review

Every council in local government manages a fleet of some size or shape. Typically, councils have fleet managers that are adept in understanding fleet movement and the costs associated with managing their fleet. With more emphasis on being “fit”, it has become crucial that councils understand their savings opportunities. Immediately, we look to our fleet to identify if there are some easy wins and improved ways to manage our fleet, in turn this may deliver quantifiable savings.

By engaging LGP and Procurement Advisory Services (PAS) to undertake a Fleet Category Cost and Spend Review you will be utilising an independent body to expertly review the effectiveness and efficiency of your existing systems.

As a result council will be able to determine where the change effort should be focused to enhance council’s fleet management system.

To fully appreciate the potential return on investment for your council from participating in this program click here, or contact your LGP Business Manager.

For more information about the LGP Fleet Category Cost and Spend Review visit the LGP website here.