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LGP News - August 2014 updated

Procurement insights

Guest Writer - Michael Robinson, Business Manager - Northern Region

What’s in a name?

Are you busy in your role? I know I am and often this can lead to overlooking important details, particularly when it comes to the world of tendering and contracts.

Here is a case in point. After 18 months of research, working with council engineers, industry experts and suppliers, LGP created a contract with a panel of suppliers for Asphaltic Concrete (AC) Materials & Related Services. Those of us involved gave ourselves a pat on the back for creating a comprehensive contract that will meet the needs of NSW councils – however....

Having travelled the state and speaking to hundreds of council staff I was surprised at the number of comments “our council does little asphalt work therefore we wouldn’t use this contract”. It is these repeated comments where for the first time I realised that the name of the contract may not adequately describe all the categories that are provided for, in fact, this was never raised by anybody in the 18 months of working to establish the contract!

It is from this feedback that the name of this contract has been changed to Supply & Delivery of Bitumen, Emulsions and Asphalt Materials and Services, to more adequately describe the categories it provides for. The reality is that this contract does cover all bitumen related materials and services. It should provide the categories of work with a range of suppliers with flexible pricing arrangements that meet council needs and I encourage all councils to call your local LGP Business Manager and discuss just how simple and flexible the contract is. Furthermore there are tremendous opportunities for Regional Organisations of Councils (ROC’s) to achieve greater savings and increased rebates as a result of working collaboratively to access all LGP contracts.

So, what’s in a name? Everything when it comes to getting information quickly and easily in our busy working lives!

Categories under this contract:

  • Ex-bin, asphaltic concrete (AC) materials and other associated material
  • Supply and deliver bulk cationic rapid setting (CRS) grade bitumen emulsion and associated servicing of emulsion vessels
  • Lay of AC services
  • Cold milling of AC and base course services
  • Pavement rejuvenation and/or enrichment services
  • Crack sealing services
  • Stabilisation services
  • Spray sealing services
  • Road patching (major and minor) services
  • Concrete pavement repairs services
  • Asphalt mill & fill services on a project managed basis.

Panel of suppliers:

  • Accurate Asphalt & Road Repairs Pty Ltd
  • Avijohn Contracting Pty Ltd
  • Bernipave Pty Ltd
  • BMR Quarries Pty Ltd
  • Boral Asphalt
  • Borthwick Pengilly Asphalts Pty Ltd
  • Downer EDI Works Pty Ltd
  • Fulton Hogan Industries Pty Ltd
  • Mid Coast Road Services
  • NA (Aust) Group Pty Ltd
  • NSW Spray Seal (RPQ)
  • Ozpave (Aust) Pty Ltd
  • Pacific Blue Metal Pty Ltd
  • Sharpe Bros (Aust) Pty Ltd
  • SRS Roads Pty Ltd
  • Stabilised Pavements of Australia Pty Ltd
  • State Asphalt Services Pty Ltd.

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

New staff members at LGP

LGP is very proud to announce the newest additions to our team Jessica Jones and Michelle Burgess.

Jessica has joined LGP as Business Manager for councils in the southern region. Following 2 years as the Procurement Officer with Bega Valley Shire Council where she was responsible for all aspects of procurement including tendering, process improvement and training. Prior to joining local government Jessica has had experience with the federal government working in defence in the areas of finance and procurementYou can contact Jessica via email jjones@lgp.org.au or 02 8270 8714 or 0455 081 848.

Michelle has joined us from IPWEA as Business Manager for Suppliers. Michelle has a wealth of experience in business relationship management especially with those suppliers operating within the local government arena. Michelle is replacing Angela O'Dea in this role as Angela has moved into the new role of Category Manager. In her new role, Angela will be working with councils and suppliers in the development of future LGP contracts. You can contact Michelle via email mburgess@lgp.org.au or 02 8270 8719 or 0455 081 845.

Local Government Procurement Annual Conference

LGP is very proud to coordinate the eighth Annual Procurement Conference for the NSW Local Government sector.

The 2014 conference theme is Procurement – a Driver of Change. The conference will bring together a diverse group of speakers with relevant and ‘on the ground’ experience covering a variety of topics, which will assist procurement professionals in their roles within council. The content of this conference will be relevant to the most experienced professional as well as those new to the procurement field.

This year's conference includes a conference dinner on the Thursday evening and a breakfast seminar on the Friday morning.

Date: Thursday 20 and Friday 21 November 2014
Location: Sydney Masonic Centre, 66 Goulburn Street, Sydney

Your conference investment includes:

  • Full attendance at two day conference
  • Conference pack
  • Conference dinner on Thursday evening
  • Breakfast on Friday morning.

Early bird: $715 inc GST (registrations received up to 24 October)
Regular: $990 inc GST (registrations received after 25 October)
First timer: $495 inc GST

SPECIAL OFFER for general managers and directors
Attend the conference  free of charge (when attending with a registered council officer).

Click here to register online. For information about accommodation or for further information view the LGP website.

A draft program will be available mid September.

Sponsorship opportunities

Click here to view the sponsorship prospectus.

For further information contact Emma Murray or call 02 8270 8710.

Procurement Awards

Nominate yourself or a peer for a Local Government Procurement Award.  The categories are:

  • NSW Local Government New Procurement Professional Award (less than 2 years procurement experience within local government)
  • NSW Local Government Procurement Professional Award.

The awards consist of a plaque and professional development of the winner's choice to the value of $2,500. 

The awards will be presented at the Local Government Procurement Annual Conference on 20/21 November 2014.

Online nominations are now open. Click here to submit a nomination or for further information contact Emma Murray or call 02 8270 8710.

Brian O'Mara - LGP with Mary-Ellen Wallace - Wyong Shire Council

winner of the 2013 NSW Local Government Professional Award

Brian O'Mara - LGP with Suzanne Cameron - Narrabri Shire Council

winner of the 2013 NSW Local Government New Professional Award

LGP electricity tender

LGP are pleased to advise that we have finalised the Electricity 6 selective tender process. 

Based on historical data from previous energy projects, LGP can confirm that throughout this process, as many as 100 councils and several not-for-profit organisations have participated and registered significant savings.

  • In the most recent tender, results for buildings and facilities were above 26%, lower than our maximum price declaration acceptance form for peak rates and 29.7% lower for unmetered public lighting
  • In the second last tender completed, the results for large buildings and facilities was 22% lower than our maximum price declaration acceptance figures and it was 28% for unmetered public lighting.

The categories covered in this tender were large sites, small sites, unmetered street lighting and green power.

Changes in regulated electricity prices

On Thursday 17 July 2014 the Federal Parliament passed legislation to remove the carbon tax effective 1 July 2014. LGP understand that retailers are currently working through changes to their gas & electricity rates for small business & residential customers following the removal of the carbon tax.

LGP advise that some retailers have not released their revised rates as yet and LGP will provide an update as soon as these rates are available, however a reduction in energy rates is expected.

For more information click here or contact LGP Category Manager for Energy, Marie Talevska or 02 8270 8707 or 0477 354 962.

VendorPanel

LGP launched VendorPanel as its e-quotation tool in July 2010 as a way to assist Local Government Procurement buyers to access vendors on its preferred provider/supplier lists in a transparent and efficient way, so we thought it would be interesting to look back on the last four years.

Initially, only five LGP contracts were migrated to VendorPanel:

  • The IT&C Professional Consulting Services panel more than doubled it’s usage over the past three years, increasing by 61% after the second year, and by 63% after the third, still seeing growth of 24% over the last year and still room to grow
  • Similarly, the Professional Consulting Services panel contract, more than doubled its usage in its second year by 53% and continued it’s increase by 59% in the third year, again by 20% over the last year and a steady growth is expected in the coming years
  • The Heavy Plant & Equipment panel usage has stayed fairly consistent over the last 4 years. That being said, this contract is the most successful since the inception of the VendorPanel web solution
  • The Small Plant panel saw a huge increase in usage of 77% after the second year and then levelled out over the next 2 years. It increased again by another 45% over the last year, these statistics mirror the three year cycle of product renewal as well as the overall addition of new customers using the system
  • The combined Trucks & Bodies (includes Specialised Truck Bodies and Machines: Waste Collection, Civic Cleaning, Removal and Access) panel contract more than doubled it’s usage after the first year by 67%, and has stayed fairly consistent over the past 3 years. This result is very positive indicating that most customers prefer this method of engagement.

Click here to view the graph that shows the growth of usage for contracts in VendorPanel.

In the first year of operation, 187 quotes were put through the system. This grew as more LGP contracts were migrated onto VendorPanel, increasing overall usage by 51% after the second year, 36% after the third year and 16% over the last year. There are now nearly 900 LGP users of VendorPanel (across both councils and suppliers) and a total of 2,103 quotes have been processed through the system - 799 in the last financial year alone.

Nine councils have purchased a Silver VendorPanel licence. This means councils can manage their own local preferred suppliers, as well as having access to LGP’s panel of approved suppliers.

For more information regarding VendorPanel Licences, please visit the LGP website or contact your local LGP Business Manager.

Procurement and supplier relationship training

New Module: Managing Relational Sales Tactics

Objective of this module is for council staff to effectively manage relational selling tactics. We have developed a specific training package for council staff who have any form of liaison with a council supplier or suppliers. Specifically, this training is designed to upskill council staff on areas of proper communication and managing relational selling practices.

Diploma of Government - Places still available

A recognised procurement and contracting qualification for local government staff. 
Commences 2 September 2014 – Limited places still available. 

Click here for a detailed look at the training calendar, module outlines or to register for any sessions.

For further information, please contact Shalan Rao, Business Manager of Training and Consulting 02 8270 8703 or Kris Wozniak, Business Manager, Consulting and Training 02 8270 8722. 

Providing feedback to suppliers

Good procurement is not only about buying a dooverlackie at the cheapest price. We have all probably heard that before but at the end of the day we have budgets to meet and savings to demonstrate. We get that. So, I have a suggestion that won’t cost anything extra. But you might find this saves you a little something down the track.

First, some questions: Are you absolutely sure you’ve got your procurement process right? Did you get the result you expected from vendors? Could you have gotten a better result? How will you ever know? How might you get those answers - feedback!

A complete response to a quote is not just the one you expected to get but also the one you didn’t. Often the response we didn’t expect can tell us more about our processes and also the understanding our vendors have about those processes. You can get that information through feedback. And all too often, our research shows that it is a lack of understanding of a council’s expectations that leads to poor responses.

Your council can go a long way to making those responses to your quote and tender requests even better. If you can tell a supplier that they have been successful in a quote due to a thorough evaluation, you should also be able to tell the others why they were not successful.

Your feedback goes a long way to helping suppliers understand:

  1. Your council’s expectations
  2. Your price points
  3. Their own weaknesses
  4. How to improve their chances with better responses or offerings
  5. What modifications they may need to make to range or service to accommodate you.

With useful feedback suppliers will not become despondent and will keep quoting for you. When finalising your RFQs in VendorPanel, you have the option to provide some feedback. People appreciate genuine comments and honesty - not a brush off. This is a way of fostering a good relationship with your suppliers. If you work with them and help them develop their business you might find that one day the roles are reversed.

Upcoming LGP network meeting

The next LGP network meeting is scheduled for:

  • Date: Wednesday 10 September 2014
  • Time: 9.30am - 12.30pm
  • Venue: Local Government House, level 8/28 Margaret Street Sydney.

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

Scholarships for NSW public officials to attend ANZSOG / ICAC executive short course

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. All other expenses (salary, travel, per diems and accommodation) remain the responsibility of the employing agency, council or the individual. Scholarship holders who require accommodation will be able to access ANZSOG’s residential rate.

For more information click here.

Upcoming events

Current contracts

The contract categories have been updated to include a new category – which is Services. The suite of LGP contracts available have been re-defined into the categories below.

Engineering and Works

  • Asphaltic Concrete (AC) Materials & Related Services LGP213
  • Horticultural, Pest, Pool and Water Management (LGP408-2)
  • Pipes, Associated Fixtures, Pumps & Concrete Products (LGP908-2)
  • Playground, Open Space and Recreational Infrastructure (LGP308-2)
  • Professional Consulting Services (Engineering, Planning, Environment, Community & Assets) LGP1208-2
  • Supply of Workwear and Personal Protective Apparel (NPN3.11)
  • Traffic Management Services (LGP113)

Fleet and Plant

  • Heavy Plant & Equipment (LGP707-3)
  • Mobile Garbage Bins, Industrial Containers & Bins, Static Compactors, Associated Products and Services (NPN1.11-2)
  • Small Plant & Outdoor Power Equipment (LGP508-2)
  • Specialised Truck Bodies & Machines: Waste Collection, Civic Cleaning, Removal and Access (LGP1608-2)
  • Trucks for Local Government (Aust.) NPN04-13

Information and Technology

  • IT&C Professional Consulting Services (LGP1008-2)
  • Microsoft Licensing and Associated Products & Services via Large Account Resellers (LGP108-2)
  • Operating Lease Services to cover Information and Communications Technology, Photocopiers, Printers & other Equipment. (LGP1107-2)
  • PCs, Notebooks, Servers & Associated Services & Equipment (LGP306-2)
  • Telecommunications Services (LGP407-2)

Services

  • Corporate Wardrobe (NPN2.11)
  • Debt Recovery Services (LGP109-2)
  • HR Temporary Placements & Associated Services (LGP808-2)
  • Library Books and Resource Materials (LGP507-2)
  • Media Sydney Metropolitan Daily Newspapers & On-line Recruitment (LGP106-2) and Advertising Agencies (LGP406-2)
  • Office Supplies & Janitorial (including; Heavy Duty Cleaning) & Associated Products (LGP1007-2)
  • Radio Frequency Identification (RFID) Systems, Equipment, Associated Products & Services (LGP309-2).

View the LGP website for further detail or contact your local LGP Business Manager.
 

Current 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 Tender closed on 18 July 2014 and is now in evaluation. This tender will replace the non-renewal of the NSW state government contract – Tyres & Ancillary Services - (state contract 367).

Tenders were received from:

  1. BATTERIES PLUS
  2. Bob Jane Corporation Pty Ltd
  3. Bridgestone Australia Ltd
  4. Complete Tyre Solutions
  5. Goodyear Dunlop Tyres (Beaurepaires)
  6. Michelin Aust
  7. R&J Batteries Pty Ltd
  8. Southern Tyre Services (NSW) Pty Ltd
  9. Toyo Tyres & Rubber Australia Ltd.
  10. Tyre & Tube Australia (Services) Pty Ltd
  11. Tyremax Pty Ltd
  12. Tyrepower Limited
  13. Tyres4U Pty Ltd
  14. Yokohama tyre Australia.

For further information contact the LGP Tender Team.

Amendments to contracts

HR Temporary Placements and Associated Services (LGP808-2)
Statutory pricing update due to Local Government Award changes as of July 1 2014. Contractors have been asked to refresh their pricing schedules.

Playground, Open Space and Recreational Infrastructure (LGP308-2)
Creative Recreation Solutions (CRS) has added the category of playground equipment to their range of services.

Library Books and Resource Materials (LGP507-2)
Contractors to this panel have been asked to accept the Australian Capital Territory (ACT) as a Customer.

IT&C Professional Consulting Services (LGP1008-2)
Marm UPS Pty Ltd has changed its registered business name to Riello UPS Australia Pty Ltd.

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. W. (Bill) Cornish Pty Ltd T/AS 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. JCB Construction Equipment Australia
  14. Kobelco Construction Machinery Australia Pty Ltd
  15. Komatsu Australia Pty Ltd
  16. Komatsu Forklift Australia Pty Ltd
  17. Paveline International Pty Ltd
  18. Porter Equipment Australia Pty Ltd T/AS Hyundai Construction Equipment Australia
  19. Semco Equipment Sales
  20. Tutt Bryant Equipment
  21. Wacker Neuson Pty Ltd
  22. WesTrac Pty Ltd
  23. William Adams Pty Ltd.

Pipes, Fittings & Fixtures and Associated Products & Services (LGP908-2)

The extension for this contract now includes the following approved contractors:

  1. Cadia Group Pty Ltd
  2. Deks Industries Pty Ltd
  3. Grundfos Pumps Pty Ltd
  4. Q-Max Pumping Systems Pty Ltd
  5. Vinidex Pty Ltd.

The total number of LGP Approved Contractors on the panel are as follows:

  1. Cadia Group Pty Ltd
  2. Crane Distribution Ltd t/a Tradelink Plumbing Centres
  3. Deks Industries Pty Ltd
  4. Grundfos Pumps Pty Ltd
  5. MultiTrode Pty Ltd
  6. Pentair Water Solutions Pty Ltd
  7. Q-Max Pumping Systems Pty Ltd
  8. Reece Pty Ltd
  9. Ruhrpump SIHI Australia Pty Ltd
  10. Vinidex Pty Ltd.

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. Garwood International Pty Ltd
  3. MacDonald Johnston Pty Ltd
  4. Mil-Tek Waste Solutions Pty Ltd
  5. Otto Environmental Systems Pty Ltd
  6. Papas Waste Equipment International Pty Ltd
  7. SRA Logistics Australia
  8. TORO Waste Equipment Pty Ltd
  9. Trident Plastics (SA) Pty Ltd
  10. Waste Initiatives
  11. 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.

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. Contact Gerard Coutes & Associates or 03 98199301. Alternatively you can contact Adam O'Connor - PricewaterhouseCoopers or 03 8603 6849. Alternatively you can visit their website.

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. 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. Contact Satch Santilli or 02 9833 6000 or 0419 468 580. Alternatively visit their website.

Randstad

HR Temporary Placements & Associated Services (LGP808-2)

Randstad are proud to have worked with NSW local government since 1993. This month we are enjoying working with an increased number of regional councils across NSW on a diverse range of positions. Randstad offers staffing services in early Childhood and Education, Administration, Health & Community Care, IT, Finance, Engineering & Industrial and always we have a pool of qualified Educators available across NSW. 

For all your staffing needs call 24/7 Early Years on 02 8238 0200 and OOSH 02 8238 0240. Alternatively you can visit their website.

Warwick Australia

Small Plant and Outdoor Power Equipment (LGP508-2)

The Lux 12.200 is a heavy duty 415V compact
pressure cleaner with reliable interpump. It features a steel chassis, s/s cover, timed total stop, an on board descaling system,
high-pressure detergent, s/s boiler housing & heating coil – no corrosion issues! It also has a low diesel warning light with
burner stop.

Click here for more information. Contact Patrick or 02 9625 4423. Alternatively please visit their website.

Phrase of the month

As we express our gratitude,
we 
must never forget that the highest appreciation is not to utter words, but to live by them.

 

                                              John F. Kennedy