6 February 2017
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LGP News February 2017
" Keeping you connected in local government procurement "
2017 - A Year of Review and Evolution
by Luke Kenny, Chief Executive Officer
We here at LGP would like to wish all the very best to our readers in 2017. For LGP, 2017 will be a year of review and evolution. Taking all of our successes over the past 10 years and looking to define where we can be better, and what innovations we can deliver to benefit our councils, our contractors and our staff.
I thought it might useful to outline some of what we will be working on in 2017. Over the coming months, as advised to all councils prior to Christmas, we will be reviewing the LGP Rebate Model. LGP wants to continue the rebate program, however the current model is too complex, it is difficult to administer, and fails to provide transparency on how funds are being used to advance local government procurement capability.
In 2017 LGP will be looking to evolve our reporting processes. We started to discuss possible changes, or alternative ways for information and reports to be submitted by our Contractors. We are also looking at how we can share key data through customized dashboards on the LGP website. Our vision here is to provide councils with a set of dashboards they can access to analyse and track their activity under LGP contracts. Similarly, we are looking to design a set of Contractor dashboards to help display useful information on how they are performing under their contract, and use this data to work with LGP on where they can identify and secure new business opportunities.
We have always had our panel contracts which today manages over $400m in annual spend for our councils, over the coming months you see a drive to create greater awareness on our procurement consulting capability for councils. Even in my short time here under our Projects Team, LGP consulting has delivered some unique outcomes for councils. We are quickly becoming the procurement consulting firm of choice, I think mostly because we are from local government, so we know how to guide and support local government.
The other key service we will drive for awareness is our Training services. The new online eLearning service is unique, customizable, and a service we believe should be attended by those council staff involved in any stage of the purchasing process. Our 2017 Training Calendar has been opened on our website and we encourage councils to take a look and register before they fill up.
Between now and June we will build our 3 year Strategic Plan to set our direction, and define our priorities for the business. We will also complete a recruitment program to fill vacant positions, which excitingly provides our staff with new professional opportunities, and may see new people join the business to drive towards our 3 year goals.
Coming up in February and throughout March, LGP will be a key sponsor at the IPWEA NSW Regional Forums. We are pleased to again partner with IPWEA, travelling to all parts of NSW to share what we see as the Future of Procurement, and making sure our councils know what they need to prepare for. We have started planning our regional network meetings, and expect the first network meeting will be held in late March or early April.
No question we have all come back to plenty of activity for 2017, and of course we watch with interest the political environment here in NSW, and globally. What this all brings we may not know, LGP will be working hard to find our opportunities and work with all our councils and contractors to change, strengthen and grow our partnerships.
Changes to VendorPanel Trucks Purchasing Process
Some exciting new changes have been made to VendorPanel Purchasing for Trucks and Specialised Bodies to help make this process easier and more streamlined for you. These changes were requested by both councils and contractors to simplify the process.
You may have noticed that in Step 3 of the Supplier Selection process in VendorPanel, you have the option to “Filter Vendors” by the procurement method you wish to follow.
Once you select the “Filter Vendors” option, the following procurement methods will be shown.
Only ONE Procurement Method should be chosen:
This enables council to instruct Approved Contractors how they would like to conduct the purchasing process. For example, council may wish for the Cab Chassis Manufacturer to source the body from the NPN1.15 contract and project manage the process. In this case, council would select this procurement method, and only Cab Chassis Manufacturers who can project manage this process would be able to be selected.
The benefit of this process is that it clearly informs suppliers of the way in which council intends to purchase a truck and/or body. It also reduces the list of approved contractors on the panels to only those that can respond to the quotation in the way council would like the process to be run.
This Filtering process is optional and council can choose not to filter based on the procurement method.
All quotations issued on the Trucks for Local Government NPN04.13 or Specialised Trucks and Bodies NPN1.15 are sent through to the Category Manager for approval. You will receive a notification when this is happening.
The reasons for this process change are twofold, firstly to ensure that the correct categories and filtering options are being used and to double check that only one procurement method has been selected.
This process takes only a couple of minutes and will not effect the time taken for suppliers to respond.
We hope these changes make the process of purchasing a Truck and/or Specialised Body through VendorPanel easier for you. We are always interested in your feedback on this and any of LGP’s processes.
If you would like further information please contact Taryn Quarmby, Business Manager and Acting Category Manager by email or on 0432 264 232.
New VendorPanel Document Uploader
This feature, requested by a number of Users and Administrators, enables support of larger files submitted by buyers and suppliers in their RFx documentation. It means Users will be able to upload some much bigger files (375% bigger), and can also upload a lot more (100% more) of the smaller files that make up 97.7% of all uploads. In addition, the total data allocation is larger (25% more total data). This upload array has been based on analysis of actual user data as well as feedback.
Current uploader
- 25 files @ 40Mb each
- 1 GB total data
New uploader
- Bigger files - 5 files @ 150Mb each (large file uploader)
- More smaller files - 50 @ 10Mb each (standard uploader)
- More total space - 1.25GB total
Government Procurement Training – Procurement Qualifications
Registrations are open for accredited procurement qualifications courses developed specifically for NSW council staff.
Local Government Procurement offers training for council employees involved in purchasing, stores, tendering and contract management functions.
The following courses are available:
Certificate IV in Procurement and Contracting
Sydney CBD
2017 dates (participants must attend all four blocks):
Block 1: 8-10 May 2017
Block 2: 7-8 June 2017
Block 3: 28-30 June 2017
Block 4: 2-4 August 2017
A practical, hands-on program that gives participants practice gaining approvals, and developing procurement plans, related legislation and key documents such as specification requirements, the Request for Tender and the Tender Evaluation Plan.
More information and to register.
Diploma of Procurement and
Contracting
Sydney CBD
2017 dates (participants must attend all four blocks):
Block 1: 29-31 May 2017
Block 2: 21-23 June 2017
Block 3: 26-27 July 2017
Block 4: 14-16 August 2017
This specialist qualification covers the competencies required for independent and self-directed work as a procurement and contract manager in the local government sector. The program is suitable for local government staff who have completed Certificate IV to progress to a higher qualification.
Learn to:
- Conduct more significant procurements, including managing contract performance
- Apply government processes, implement policy and promote and monitor compliance with legislation
- Coordinate risk management activities and manage contract risk.
More information and to register.
Advanced Diploma of
Procurement and Contracting
Sydney CBD
2017 dates (participants must attend all four blocks):
Block 1: 19-21 July 2017
Block 2: 28-30 August 2017
Block 3: 12-14 September 2017
Block 4:10-12 October 2017
A practical program in which participants will develop the strategic management skills necessary to operate at the middle-to-senior management level in the public sector, with emphasis on conducting and managing higher level and more complex procurement processes. Students will participate in significant case studies and negotiation scenarios, make presentations and examine the legal, legislative and policy framework in which higher level procurements occur.
Learn to:
- Develop a comprehensive understanding of strategic procurement and contract management in the public sector, including legislative requirements
- Understand the importance of good corporate governance and internal controls
- Support strategic thinking in relation to government procurement issues
- Communicate effectively with staff and other stakeholders
- Support productive working relationships and achieve results.
More information and to register.
All LGP training can be conducted in-house at a location of your choice. For further information view the LGP website or contact, LGP Training or 02 8270 8709.
Local Government Procurement Training
Registrations are open for LGP's upcoming procurement training for council staff.
Procurement for Local Government
Casino – Thursday 16 March 2017
Providing a comprehensive overview of the purchasing function within the NSW local government sector, learn the end-to-end procurement life-cycle and practical ways to apply principles within council. More information and to register.
Contract Management Essentials
Casino – Friday 17 March 2017
Understand the key principles of managing contracts in the local government sector, and learn essential information on the contract management life-cycle including foundation insights to procurement principles. More information and to register.
Planning and Specifications
Sydney CBD – Wednesday 29 March 2017
Designed on the key principles that need to be observed when writing a best practice procurement plan and specifications development, council staff will be able to construct a basic plan to develop requirements, ensuring that contract arrangements are effective and practical. More information
and to register.
Spend Analysis for Savings, Efficiencies, Compliance & Collaboration
Sydney CBD – Wednesday 5 April 2017
A practical full day course will provide you with the ability to look for efficiencies, savings and reinforce compliance. It will cover internal analysis, external factors such as economic development and how to drive fact based procurement and contract management decisions. This course will particularly suit procurement and finance professionals. More information
and to register.
Advanced Contract Management
Sydney CBD – Tuesday 16 & Wednesday 17 May 2017
This two-day course, designed to advance skills in contract management, is suitable for those managing high-risk, complex contracts or wishing to learn more in this space. A large portion of value is extracted (or lost) post contract award. Through advanced contract management, you can manage risk, increase innovation, reduce waste and increase efficiency. More information
and to register.
Evaluation, Supplier Selection and Contract Establishment
Sydney CBD – Wednesday 24 May 2017
This one day course supports supplier selection and evaluation techniques aligned to probity and value for money. Learn key tips on setting up evaluation criteria for the quotation and tender stage to ensure the right supplier is selected. Designed for staff either currently involved in quotation/tender evaluations or about to do so, participants will come away with practical skills applicable in the Local Government context. More information
and to register.
All LGP training can be conducted in-house at a location of your choice. For further information; view the LGP Training Calendar or contact LGP Training or 02 8270 8709.
Are You Strategic With Your Contracts?
As a solicitor, I cannot deny that contracts sit fairly and squarely in the legal realm, however, do you permit, or perhaps encourage, your solicitor to assist with the strategy that underpins the contract?
Strategy
Strategy is a word that can be applied in various circumstances. Your council usually starts down the contract path with nothing more than an idea – ‘let’s build a bridge’, ‘this thing needs replacing’, ‘get an expert in’. The idea is tossed around and a strategy starts to form that deals with budget, timing, political palatability, and hopefully, probity.
Then procurement starts. Is the time for strategy over, does it continue or does procurement require a new form of strategic thinking?
Do you make these decisions in isolation or does your solicitor help? The answer to this question depends upon whether you view your solicitor as merely a tool to do your bidding or whether you have a partnership with your solicitor. In a partnership, your solicitor should understand your business and work with you to achieve your goals, protect you from risk and take your limitations into considerations.
However, as best we can, please consider:
- When designing the contract you need, think strategically, not just legally.
- Be brave and think outside the ‘done thing’.
- Push your solicitor to be creative with you. It is not enough to say ‘no, can’t do’, ask ‘why?’
- Ensure that staff use reporting and other forms of measurement against the contractors’ and the contracts’ performances.
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
Contract Management Plan
Developing and implementing an effective, contract management plan supports the ongoing success of a contract.
A robust contract management plan should be developed which provides a framework for the management of the contract. Development of a contract management plan should be part of an effective tender process. Depending on the tender value and associated risks a draft contract management plan could be included in the tender document or developed as soon as council resolution is received. A contract management plan should contain the data and information from the tender documents, tender submissions received and council requirements and be relevant and appropriate to the awarded contract.
The contract management plan should contain templates and checklists ranging from:
- Letter of Acceptance
- Formal Instruments of Agreement
- Pre-Commencement Meeting Agenda/Minutes
- Internal Workflows
- Performance Management Forms
- Reporting requirements
- Other relevant documents for ongoing management of the contract.
The development of the contract management plan should be done in conjunction with the successful tenderer to ensure a proactive approach in managing the objectives of the procurement. A good contract management plan also ensures open communication to relevant parties, contingency planning, and, if needed, swift dispute resolution.
What's Happening With LGP Approved Contractors?
LGP115 IT&C Products, Services and Consulting - Lange Consulting & Software
Data captured by Council contractors can be shared back to you through the ConnectiX integration framework to update your internal systems. ConnectiX replaces manual with automation, inefficiency with efficiency, and reduces operational costs and risks for Councils and their contractors.
For more details, contact Col Lange on 0418 481 494 or by email. You can also visit our website.
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