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LGP News - July 2014

Procurement insights

Customer service

Good service is memorable, but not as memorable as bad service!

Last Friday I enjoyed a few drinks after work with colleagues and partners. We were in a very nice establishment that only provided table service. I was particularly impressed with the gentleman who looked after our table. He took drink orders from us (around 15 - 20 people) without writing down who wanted what.

When he returned with drinks, he politely placed everyone’s drink in front of them – and did not make an error in the hour or two we were there. Very impressive. He is the type of person who gives a business a great name and reputation.

I would employ him in a heartbeat – and we don’t have a bar! I told a few people over the next few days how good he was. I should have told everyone.

My next experience of customer service was not quite the same as the above.

I have been collecting all my random silver coins over the last few years and placing them into a tin, hoping one day to find a million dollars in there. It was time for the tin to be opened and I did all the counting (It came to about $500). I diligently sorted all the coins into plastic bags - $10 of 5c pieces, $20 of 10c pieces etc. All nice and neat and all bags marked with their contents.

I placed the coins into my back pack and off to MY bank I went. It was a very quiet day at the bank – I was their only customer at the time. When called by a teller, I explained that I had $X of coins all bagged and ready to go. I put the coins on the counter for the teller to take them. I explained I did not need them counted now, but if they could transfer the end result into my account that would be fine. No rush.

The teller was not impressed. The suggestion was “Look, our machine is out of action at the moment. Why don’t you take your money across the road to the XYZ Bank – they are not as busy as we are…..” I should have said earlier, I really like good service and bad service really peeves me.

This was not good service. I thought I had done all the right things - bagging the money, noting how much was in each bag, not needing the transaction done immediately etc.
But their suggestion that I take my money “across the road” was what triggered my next response.

I agreed that taking my money across the road was a good idea and if they could just withdraw all the funds I had in my three accounts at the branch then I would walk across the road as they suggested and deposit it in the competitors bank. My request was overheard by the second teller who just about had a fit. Somehow their service level increased significantly - immediately. My coins were counted that afternoon and deposited into my account that evening.

I told everyone I met during the next month about my bank story. They deserved it, in my opinion.

It’s true that bad service stories are passed on far more than good service stories. That’s a pity really – it should be the other way round. Which brings me to complaints. How many times have you been at dinner with a group of people who are not thrilled with their meals or the service? Then when a waiter asks “how are your meals? Is everything ok?” Everyone smiles and says everything is lovely, thank you for asking!

We need to be more honest with each other. If the food or service is not up to what you expect it to be, let someone know.

Sure, vote with your feet and don’t go back, but how will the service improve if they never get feedback?

When assessing your own service levels in the businesses you operate, you cannot expect to get every thing right 100% of the time. We strive too, as I am sure you do, but we don’t always meet our stakeholders expectations, I am sure. Yes we do get feedback (and we act on it) but I am sure we don’t get ALL the feedback that would help us improve our business.

So something for you to ponder….. what do you do when the level of service is bad?

Be in touch if we can be of assistance info@lgp.org.au.

LGP annual reports and rebates to councils

The January to December 2013 annual reports were posted to councils in early July. Where applicable a rebate was paid to council either via EFT directly into councils bank account or by cheque. The letters were posted to the general manager with a copy sent to the mayor and a key procurement contact.

The rebate structure has been improved. The rebate is now 0.1% of expenditure on all contracts, with the exception of electricity and operating lease contracts where the rebate is 0.05% of expenditure.

To ensure that your council is receiving the correct level of rebate, LGP suggest that the report be assessed for accuracy. If there are any queries relating to these figures please contact LGP in writing to reporting@lgp.org.au by no later than 25 July 2014.

ICAC scholarship

The ICAC is offering scholarships for executive or senior level NSW public officials to attend the ANZSOG / ICAC executive short course, Strategic responses to corruption.

Only ten scholarships, each valued at $4,995 (including GST) are on offer. The scholarship covers the ANZSOG course fee only. 

This is a new course developed by the ICAC which articulates its latest approaches to preventing corruption. It will assist executives to design an effective control environment that also supports efficient operations. Corruption controls are often perceived to be in competition with operational efficiency. This executive course shows that they can be aligned, and equips executives to design an operationally efficient and effective control environment.

The course will be held over five days in Sydney on 29, 30 and 31 October 2014, and on 13 and 14 November 2013.

Applications are competitively assessed against these criteria. Applications close 22 August 2014.

The course is otherwise available to fee paying students through ANZSOG. Full details of the scholarship, as well as the application form, are available.

Social Procurement Australasia

Local Government Procurement is delighted to be a founding member of Social Procurement Australasia (SPA). Set up in June 2013, SPA is a group of individuals and organisations who believe in the extraordinary potential of procurement to deliver social impact above and beyond the product or service being purchased.

When buyers use their purchasing power to achieve social outcomes beyond the products and services they require, they are undertaking social procurement. For example, a local government area with high levels of unemployment could strategically use their procurement to help address this issue by requiring successful tenderers to employ a percentage of their labour force from the local unemployed population. The contract could be for road maintenance, grounds maintenance, catering, cleaning, graffiti removal, leisure services, home help, consultation, and the like.

Click here to view the first Edition of the SPA newsletter which provides a snapshot of the exciting work going on around Australia, New Zealand and internationally in this growing field.

LGP Electricity tender

LGP are pleased to advise that we have gone to the market for our Electricity 6 – selective  tender process to secure a contract with potential energy providers.

Stage 1 – Supply of Electricity for Large Sites – Buildings, Facilities, Street Lighting and Green Power was released on 24 June 2014. This tender closed at 2pm on Wednesday 9 July 2014 AEST.

Stage 2 – Supply of Electricity for Small Tariff Sites was released on 1 July and will close 2pm Wednesday 16 July 2014 AEST.

For further information regarding LGP’s electricity process or queries regarding electricity or utilities, please contact LGP’s Business Manager for Energy & Consulting, Marie Talevska or 02 8270 8707 or 0477 354 962.

Changes in regulated electricity prices

Effective from 1 July 2014, the NSW government made the decision to remove retailer price regulation in the NSW electricity market. As a result, the Independent Pricing and Regulatory Tribunal (IPART) is no longer responsible for the regulation of small site tariffs and under a deregulated market there will be no default price.

Energy retailers will not be able to offer a simple % discount, but will have to outline all their costs and charges. As you can appreciate electricity charges can be complex as consist of several different elements such as; retail usage, network usage, network demand, metering charges, retail service fees etc.

LGP advise that there may be some changes to councils participating in small tariff site contracts however we will endeavour to monitor the market and retailers and provide an update shortly.

For further information regarding LGP’s electricity process or queries regarding electricity or utilities, please contact LGP’s Business Manager for Energy & Consulting, Marie Talevska or 02 8270 8707 or 0477 354 962.

Clarification of the use of the Australian Standards Condition of Contract (AS4000-1997)

In the Procurement Insights section of our April Newsletter we mentioned that LGP had negotiated with SAI Global (owners of the rights to Australian Standards) to pay all costs on behalf of councils for the use of the Annexures in relation to the new Asphaltic Concrete Materials & Related Services Contract (AS4000-1997). This was further detailed in the Use of Australian Standards Documents – Who Pays for These? LGP Does! article, which stated that the arrangement with SAI Global would also apply to the Professional Consulting Services contract (AS4122-2010).

At the time of publishing this was correct, but subsequently it was found that the arrangement could only be applied to the Asphalt contract and not the Professional Consulting Services contract. Additionally, as much as we would like to, the arrangement does not allow LGP to provide this service across all of our contracts. You can be assured though that LGP will, as always, be looking for ways by which we can enhance the delivery of our services and make the procurement process easier and better for local government.

When obtaining a quote on Asphalt, the Australian Standards Condition of Contract (AS4000-1997) Annexures A, B & C can be found under the “Engaging Suppliers” tab in the Asphaltic Concrete (AC) Materials & Related Services LGP213 contract on the LGP website.

If you would like more information about the use of these documents or any other LGP contract or service, please don’t hesitate to contact your local LGP Business Manager.

Procurement and supplier relationship training

New modules:

  • Managing Relational Sales Tactics
  • Project Management Fundamentals (two-day course)
  • ​Tender Training.

*New modules commence August 2014. Tender Training has been developed specifically for suppliers due to demand. 

Recommended modules:

  • Advanced Purchasing
  • Contract Management
  • Evaluation & Report Writing
  • Local Government Purchasing
  • Specification Writing
  • Stores & Inventory Management
  • Tendering Requirements.

Diploma of Government

A recognised procurement and contracting qualification for local government staff

Commences 2 September 2014 – limited places still available

View the training calendar, module outlines or register online. Alternatively contact Shalan Rao, Business Manager of Training 02 8270 8703 or Kris Wozniak, Business Manager 02 8270 8722.

LGP Network meeting - re-scheduled

The next LGP Network meeting has been re-scheduled for:

  • Date: Wednesday 20 August 2014
     
  • Times: the meeting will be held either in the morning or afternoon, please select your preference when registering
     
  • Venue: Local Government House, level 8/28 Margaret Street Sydney.

A light lunch will be provided, so please RSVP your attendance.

Register your attendance here

Upcoming events

Current contracts

Log into the LGP website for contract information, such as contractor contact details. A summary of LGP contracts are listed below.

For further information contact your local LGP Business Manager.

Engineering Contracts

  • Playground, Open Space and Recreational Infrastructure LGP308-2
  • Pipes, Fittings & Fixtures and Associated Products & Services LGP908-2
  • Professional Consulting Services (Engineering, Planning, Environment, Community and Assets) LGP1208-2
  • Supply of products for Horticultural, Pest, Pool and Water Management LGP408-2
  • Supply of Workwear and Personal Protective Apparel (national panel contract) NPN3.11.

Fleet/Plant Contracts

  • Asphaltic Concrete Materials & Related Services LGP213
  • Heavy Plant and Equipment LGP707-3
  • Small Plant and Outdoor Power Equipment LGP508-2
  • Specialised Truck Bodies and Machines: Waste Collection, Civic Cleaning, Removal and Access LGP1608-2
  • Supply of Mobile Garbage Bins, Industrial Containers & Bins, Static Compactors, Associated Products and Services (national panel contract) NPN1.11-2
  • Traffic Management Services LGP113
  • Trucks for Local Government (national panel contract) NPN04-13.

Services/IT Contracts

  • Advertising - Media Sydney Metropolitan Daily Newspapers, Regional Publications and On-line Advertising and Advertising Agencies LGP106-2 and LGP406-2
  • Corporate Wardrobe (national panel contract) NPN2.11
  • Debt Recovery Services LGP109-2
  • HR Temporary Placements and Associated Services LGP808-2
  • Library Books and Resource Materials LGP507-2
  • Microsoft Licensing and Associated Products and Services via Large Account Resellers (LARs) LGP108-2
  • Office Supplies and Janitorial (including; heavy duty cleaning) and Associated Products LGP1007-2
  • Operating Lease Services to cover ICT, Photocopiers, Printers and other Equipment LGP1107-2
  • Provision of IT&C Professional Services LGP1008-2
  • Radio Frequency Identification (RFID) Systems, Equipment,  Associated Products & Services LGP309-2
  • Supply of PCs, Notebooks, Servers and Associated Services and Equipment LGP306-2
  • Telecommunications LGP407-2.

Current tenders

Pipes, Fittings & Fixtures and Associated Products & Services - Panel - Extension 1 (opportunity for additional panel members) T9.08-2E1. For the supply of Pipes, Fittings & Fixtures and Associated Products & Services. This tender closed on Friday 7 March 2014 AEST with 8 submissions received. This tender process is complete and the following tenderers will join the existing panel:

  1. Cadia Group Pty Ltd
  2. Deks Industries Pty Ltd
  3. Grundfos Pumps Pty Ltd
  4. Vinidex Pty Limited.

LGP has also entered into negotiations with other parties and if successful they will join the exiting panel.

The LGP9.08-2 panel contract includes:

  1. BCP Precast - Contractor has been temporarily suspended.
  2. Cadia Group Pty Ltd
  3. Deks Industries Pty Ltd
  4. Grundfos Pumps Pty Ltd
  5. MultiTrode Pty Ltd
  6. Pentair Water Solutions Pty Ltd
  7. Reece Pty Ltd
  8. RuhrpumpSihi Australia Pty Ltd
  9. Tradelink Plumbing Centres
  10. Vinidex Pty Limited.

For further information visit the LGP website or contact the LGP Tender Team.

Amendments to contracts

Asphaltic Concrete (AC) Materials & Related Services LGP213
Quarterly pricing update. Contractors have been asked to refresh their pricing schedules.

Please ensure you refer to the LGP website for the most up to date versions of pricing.

New contracts

Heavy Plant & Equipment LGP707-3

The LGP Approved Contractors are:

  1. AGCO Australia Limited
  2. Atlas Copco Construction & Mining Australia
  3. Ausroad Systems Pty Ltd
  4. CJD Equipment Pty Ltd
  5. Clark Equipment Sales Pty Ltd
  6. CNH Australia Pty Ltd
  7. Conplant Pty Ltd
  8. Cornish's
  9. Earthmoving Equipment Australia Pty Limited
  10. G.C.M. Agencies Pty Ltd
  11. GCM Enviro Pty Ltd
  12. Hitachi Construction Machinery (Australia) Pty Ltd
  13. Hyundai Construction Equipment Australia
  14. JCB Construction Equipment Australia
  15. Kobelco Construction Machinery Australia Pty Ltd
  16. Komatsu Australia Pty Ltd
  17. Komatsu Forklift Australia Pty Ltd
  18. Semco Equipment Sales
  19. Tutt Bryant Equipment.

Mobile Garbage Bins, Industrial Containers & Bins, Static Compactors, Associated Products and Services NPN1.11-2

The NPN Approved Contractors are:

  1. Easyquip Pty Ltd
  2. MacDonald Johnston Pty Ltd
  3. Mil-Tek Waste Solutions Pty Ltd
  4. Otto Environmental Systems Pty Ltd
  5. Papas Waste Equipment International Pty Ltd
  6. SRA Logistics Australia
  7. TORO Waste Equipment Pty Ltd
  8. Trident Plastics (SA) Pty Ltd
  9. Waste Initiatives
  10. Wastech Engineering Pty Ltd.

As these are new contracts, we urge you to review the information on the LGP website to ensure you are fully informed, including contract specifications and pricing for each approved contractor.

For more information contact your local LGP Business Manager.

Upcoming tenders

Supply of Fitting and Service of Tyres, Tubes and Automotive Batteries

LGP is participating in a National Procurement Network tender for the Supply of Fitting and Service of Tyres, Tubes and Automotive Batteries. This NPN tender is being managed by MAV Procurement, LGP’s counterpart in Victoria. MAV Procurement released this tender on Saturday 14 June 2014.

This will replace the non-renewal of the NSW state government contract – Tyres & Ancillary Services - (state contract 367).
Tenders close on 18 July 2014. Tenderers will be directed to MAV Procurement for enquiries and the documents will be available on the MAV Procurement web link www.tenderlink.com/mav.

All enquiries about this tender should be directed to Paul Taylor at MAV Procurement.

WHAT'S GOING ON WITH LGP APPROVED CONTRACTORS?

Gerard Coutts & Associates

Professional Consulting Services (Engineering, Planning, Environment, Community & Assets)  LGP1208-2

Local councils who are considering selling surplus land or have sold large parcels of land within the past four years may be able to maximise net sales proceeds by applying certain concessions in the Goods and Services Tax (GST) law that are available specifically for government entities.

Click here for more information or contact Gerard Coutts & Associates or 03 98199301. Alternatively you can contact Adam O'Connor - PricewaterhouseCoopers or 03 8603 6849.

Quest Security Solutions

IT&C Professional Services and Associated Products LGP1008-2

Quest advise, design and install tailored IP surveillance solutions. This includes safety cameras to cover your council's public safety monitoring and urban duty of care across city streets, parks and public places, meeting your expectations for a safer and more secure public environment.

Click here for more information or contact their sales team or 1300 304 478. Alternatively visit their website.

Semco Equipment Sales

Heavy Plant & Equipment LGP707-3

Takeuchi Manufacturing Co Ltd of Japan has produced its 250,000th unit at its Murukami plant in Nagano, Japan. Graham Murphy of Takeuchi distributor, Semco, said the world’s first compact excavator was developed by Takeuchi in 1970, followed by its first compact track loader in 1980.

Click here for more information or contact or Satch Santilli or 02 9833 6000/0419 468 580. Alternatively visit their website.

Phrase of the month

“Everything that anyone would

ever look for ...

is usually where they find it.”

                                                                     
                                              ~ Margaret Wise Brown