3 November 2016
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LGP News November 2016
" Keeping you connected in local government procurement "
Introducing LGP's New CEO -
Luke Kenny
by Luke Kenny, Chief Executive Officer
After successfully completing my first few weeks here as the new Chief Executive Officer at Local Government Procurement (LGP), I am delighted to be part of a team that is celebrating ten years in delivering value to our customers and LGP approved contractors.
Prior to joining LGP, I have spent the last 17 years performing leadership roles in aggregated procurement buying groups for the private sector and NSW government. During those years I have enjoyed working with my team, our customers and suppliers to change and grow aggregated procurement organisations, as well promote the value and importance of the procurement profession back to businesses.
Whilst my family (in particular my two daughters) are my priority, I have a love for learning. In the last three years I have completed an MBA, and earlier this year I successfully attained my MCIPS accreditation. In this role with LGP, as in previous roles, I will enjoy meeting with customers and contractors to share concepts from our respective business strategy, and look for areas of alignment to partner together on and deliver. Technology in business is a passion of mine. I love using integrated systems to provide data and intelligence that supports decision making, as well as deliver efficiency in our manual and repetitive tasks.
This new role at LGP is a great opportunity to combine my networks, knowledge and experience with the expert staff and contractors at LGP, to build on what we offer today. LGP celebrates ten years in 2016, from humble beginnings, today we are rapidly growing beyond our $400m+ in annual spend for NSW local government. This is a fantastic achievement, I am humbled to have the opportunity to lead this organisation into the future. In this new chapter for LGP, we look to consolidate our strength areas and search for where we can be better. We will be focused on designing and implementing changes that support the needs of a dramatically changing NSW local government sector.
Without our approved contractors, LGP does not have value in the eyes of our customer. For our partnership to perform, I look forward to working closely with our approved contractors on our opportunities, and find ways to continuously improve the value we can present to customers.
Over the next two months leading into Christmas, I will be well progressed in my customer visitation program. Whilst it will be hard to meet everyone of our customers, however we do have the 2016 Local Government Procurement Annual Conference being held very soon on 17 and 18 November 2016. With a record attendance, and few places still left, this is will be great opportunity to learn more about the people LGP is here to serve.
Outside of a great speaker list, the LGP Conference program is deliberately unique and those attending will have an experience which allows key learnings to be taken back into, and shared across their workplace. We have a mock trial engaging the audience on key probity themes we all need to be conscious of, a look back on how procurement in the local government sector has evolved over the last ten years for good and for bad, as well as a great conference dinner and awards night, which I am told is not to be missed!
Finally, I am excited to be at LGP working with our Chair Paul Braybrooks, the Board, and the LGP staff who are so dedicated to meeting the needs of NSW local government. With a drive for growth LGP has to deliver value, over the next few years I look forward to working across our sector to have LGP as a trusted and valued partner who can help deliver on the future strategies of our customers and contractors.
It's Not Too Late to Register for the Local Government Procurement Conference
The theme of 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.
Program
At the conference you will hear case studies from local government professionals about their experiences as well as invaluable governance and procurement insights from notable speakers. Click here to view the conference program.
Dates and location
Dates: Thursday 17 and Friday 18 November 2016
Location: Sydney Masonic Centre, 66 Goulburn Street Sydney
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 and provides opportunities to develop new and build on existing networks and working relationships.
Registration
- 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.
For further information about the LGP conference please visit the LGP website or contact the LGP Events Team by email or on 02 8270 8710.
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.
Waste Management Workshop - Sydney
Both the public and private sectors are faced with increasing demands from communities around waste management. McCullough Robertson Lawyers is hosting its annual Waste Management Workshop on 10 November 2016 where you will hear from industry experts on best practice in ‘working with waste’. The workshop will cover issues that are likely to be faced and the interplay with relevant legislative requirements.
To find out more about the Waste Management Workshop or to RSVP please click here.
Energy Efficient Street Lighting
Over recent months LGP together with the NSW Office of Environment and Heritage (OEH) have been looking into opportunities to accelerate the uptake of energy efficient street lighting on behalf of our respective organisations.
Councils generally seek reduced costs in both the electricity consumption, network charges (NUoS) and streetlighting use of system (SLUoS) charges.
The reduction of energy costs is in part achieved through LGP’s competitive energy rates minimising the unit price of electricity, but there are other aspects to consider in reducing the overall costs related to street lighting. These are:
- Reduced energy consumption, and
- Reduced streetlight use of system charges.
Current technology leads to the use of LEDs for streetlighting. They are generally more efficient, as the energy consumption for a given level of luminescence is less than the current technology in use. Lower consumption coupled with the lower energy rates through LGP lead to minimised energy charges and indeed lower network charges.
Additionally, LED’s generally have a longer operational life and require less maintenance. These aspects form part of the SLUoS charges that the distributors charge councils directly.
OEH and LGP have met with the distributors and they either have, or are developing, LED based SLUoS charges which will be socialised with councils for your acceptance and approval. Collectively, the distributors have tendered for and finalised the arrangements for, the supply of LED luminaires. We understand that this arrangement has a ten year warranty on parts and three on labour. The distributors are in the process of approaching councils with the details.
You may find that there is an asset residual payment due to the distributors if a council wishes to upgrade their street lighting. Consequently, NSW Treasury Corporation (TCorp), have advantageous financing options for those councils that are deemed “Fit for the Future” should you wish to participate. The NSW Energy Savings Scheme (ESS) also provides financial incentives to implement energy saving projects. The Public Lighting Method may be used to calculate electricity savings from upgrades to public lighting for roads and public spaces where a distributor owns and/or maintains the lighting equipment. More information on the Public Lighting Method can be found here.
Further, OEH are developing workshops aimed at assisting councils to create business cases in relation to these street lighting upgrades. For further information please contact Penny Kalaremas or Justin Roach from OEH by email.
To conclude with a word of caution, if councils wish to own the street lights currently owned by the distributors, the distributors may charge councils for the use of their “poles”. If you would like to discuss this matter further, please contact Peter Flood, Category Manager - Utilities by email or on 02 8270 8727.
Probity Perspectives -
Your Questions Answered
LGP is pleased to announce a new section in LGP News, answering probity questions from readers. To submit a question please follow the link below. You may submit your question anonymously.
What is Probity?
Probity is defined as “Integrity; Uprightness; Honesty” (Macquarie Dictionary, 4th Edition).
In the context of procurement this means that in seeking value for money, correct process is followed and decisions are transparent and made with integrity and honesty.
Probity is not an extra “add on” but should be considered from the outset in the procurement planning stage, before any documents are released to the market.
At a minimum, enough time should be set aside to allow for a probity review of tender documentation. It is often at this stage that probity risks and issues can be identified and managed. It is far more difficult to close the barn door if the horse has already bolted!
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.
NSW Government Spatial Imagery Panel
Land & Property Information-Spatial Data Services regret to advise that they will be discontinuing the NSW Government Spatial Imagery Panel, powered by VendorPanel.
This panel was created to provide an automated option to access the approved and categorised Panel of Spatial imagery and elevation providers and run Request for Tenders. This panel will still be accessible just not through the vendor panel process as the automated way of the current procurement process. This will no longer be able to be available for LGA through panel sharing of the LGPP and the NSWSIP.
The service was released for full production on the 9 June 2015 and since this date there has been very little utilisation of the panel since this time we have decided that it is no longer necessary to provide the automated service.
The service will cease operations on 4 November 2016. However, the approved panel of suppliers can still be accessed through your normal procurement channels. The full list of these suppliers and their services can be requested from Spatial Services.
If you would like to discuss this matter further, please contact Brett Griffiths from Land and Property Information by email or on 02 9228 6666.
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.
LGP Learning Centre - Upcoming Training
LGP will be conducting procurement training in Sydney in November and December 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.
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.
Training Courses in November and December (continued)
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.
Evaluation, Supplier Selection and Contract Establishment
This full-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. Register here.
View the entire LGP Training calendar here.
Regional Training
Regional training can be offered and conducted in-house LGP at a location of your choice. In-house training provides you the opportunity to share examples and network with your peers within a group. The content, case studies and activities are tailored with practical examples to maximise knowledge transfer.
Training is also available in your council or for your ROC or JO. LGP currently has a draft regional training calendar in place so if you would like more information or a proposal 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 May 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.
LGP Training Needs Analysis
LGP Training in partnership with ArcBlue has created a tailored self-assessment tool to assist learners in identifying what training may be required to improve skills and knowledge. The LGP Training Needs Analysis is a comprehensive and concise analysis covering a range of procurement and contract management competencies. This tool enables learners to identify skills gaps in specific areas of training offered by LGP Training.
The LGP Training Needs Analysis is free to complete and will take approximately ten minutes of your time. On completion of the analysis a development report is provided to you, and help you understand what training modules suits your current knowledge level, and provide the opportunity to pursue further training offered by LGP Training.
Please contact LGP Training by email to register your interest in eLearning, face-to-face training or for more information about how to undertake the LGP Training Needs Analysis to receive your instant development report.
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.
Is Force Majeure Still Relevant to Council’s Contracts?
Many agreements contain ‘force majeure’ clauses, but how many of us understand what they mean? This brief paper will consider whether agreements benefit from the inclusion of force majeure clauses or whether they are a waste of space.
However, as best we can, please consider:
- Force majeure clauses are not required in every contract. Consider each contract on the facts and make a decision whether to include these clauses or not.
- If you decide to include force majeure clauses avoid cutting and pasting such clauses from another contract without properly amending them to accommodate the scope of the project and the parties’ intentions (but you wouldn’t do this anyway – would you?).
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
Procurement Intranet Hub
Whether your council is large or small, relevant council documents should be available and accessible for all divisions, departments, sections and staff. All procurement-related documentation such as the procurement policy, procedures and processes should be available to staff via the council's intranet (or similar tool).
It is recommended that a procurement section (or “Hub”) be established that will allow staff to access the relevant documents, templates, processes, checklist and other helpful procurement guidelines to improve communication and delivery of procurement best practice for the council to achieve overall best value outcomes.
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.
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