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LGP News - July 2017 " Keeping you connected in local government procurement "
New Financial Year - New Opportunitiesby Luke Kenny, Chief Executive Officer July marks the conclusion of one financial year and the beginning of another. Since I joined Local Government Procurement (LGP) in October last year, we have been working hard to address some key areas of our business where we want to be better. Whilst we are not done yet, we are making good progress, and by June 2018 I hope our councils, and our suppliers will see the benefits from the changes and the hard work we are putting in right now. NPN1.16 - New Hardware Contract. This month also brings in a brand new hardware contract from LGP. This is an NPN Contract (National Procurement Network), which leverages the spend volume across all Australian State and Territory local government associations. We have secured Australia’s largest brands and we now welcome our councils to come and test what we have developed. During July you will see more and more contractors added as their negotiations conclude. If you would like further information please contact your regional Business Development Manager. New Government Procurement Rules. Last week we saw the Commonwealth Government, via a Joint Select Committee, release a proposed new set of procurement guidelines which are proposed to take effect in March 2018. In the article from Government News some of the most notable details are as follows:
Click here to read the article: Government Procurement Rules to Change. Whilst NSW local government is not obligated to meet these guidelines, LGP has an interest in seeing the greater promotion of outcomes in relation to sustainability, local economic benefit as well as ethical and transparent procurement. The LGP Events Program moves to Armidale with Networking in the Bush being held on Tuesday 25th July, at the unique New England Regional Art Museum. This event is designed for the benefit of council procurement staff. Registrations for this event will be closing soon and I urge councils in the northern NSW to register now. The 2017 LGP Annual Conference - Building Procurement Capability and Embracing Innovation is now open and available for attendees to register, and for sponsorship opportunities. The early bird rate allows you to attend for under $1,000, hopefully making this important event accessible for all councils who wish to attend. To attend the conference Register now. To participate as a sponsor or a trade exhibitor click here. NPN1.16 - Industrial, Construction, Electrical and General Hardware & Materials
The first National Hardware contract driving value, buying power, flexibility and consistency! Local Government Procurement is pleased to announce the commencement of the new Industrial, Construction, Electrical and General Hardware & Materials Contract (NPN1.16). Being extremely diverse in what it delivers, NPN1.16 is the first to provide local government with a wide range of hardware categories under one major contract, making it a ‘one stop shop’ for council’s hardware requirements. The product categories included within this contract are:
The NPN1.16 contract is designed to support councils in their operations through the provision of a wide range of approved contractors delivering flexibility, greater buying power and substantial discounts on a large range of products. For more details on the panel and products click here NPN1.16.
Avoiding Ambiguity in Tender Documentationby Heidi Wolfenden, Contracts and Legal Officer It goes without saying, but when we are in a rush or under pressure we often neglect the finer details. Oversight of the finer details has the capacity to undo one’s best laid plans, or indeed, a tender process. Every week, LGP receives a number of enquiries from council staff seeking procurement guidance as to their own tender processes and documentation. At the crux of many of these enquiries is ambiguity in tender documentation. LGP usually receives these enquires at evaluation stage or at contract stage, where there may be a dispute and the issues turn to a matter of interpretation of the wording used in the tender. Many of these issues arise as a result of hastily drafted wording, often due to pressure experienced by council staff to release a tender on time. But there is hope, as many of these issues can be easily avoided, and in turn, councils can save themselves both time and money (not to mention headaches!) in the long run, simply by giving due consideration to the drafting of its tender documentation. As LGP’s Contracts and Legal Officer, I would like to take this opportunity to provide some commentary as to some basic checks that council staff should – at minimum – undertake when drafting its tender documentation. When commencing a process on behalf of council, ask yourself the following questions: “What kind of process am I seeking to run?” Is it an Expression of Interest (EOI) process, with the aim to then proceed to selective tender stage? Is it a Request for Tender (RFT) process, with a direct approach to market? Or is it a Request for Quotation (i.e. through an LGP panel arrangement to be uploaded through VendorPanel)? This may seem obvious, but it is crucial that the type of tender process is identified from the very beginning and is clearly and consistently identified throughout the documentation. There are strict legislative requirements as to tender processes in New South Wales and as such, the implications not clearly identifying which type of process a council is following may not only be a breach of the local government legislation, but also that the entire process may be flawed. This may mean that a council has to abandon its process to date and recommence the tender process once again. Further, there is a real risk that a council may be in breach of process contract with tenderers if it has to set aside a tender process. “What kind of goods, materials or services am I seeking in this process?” In drafting your requirements/specifications, always consider whether the wording used would be easily understood by the market. If you are ambiguous in the specifications, you may be unintentionally limiting the number of respondents which may deliver the best ‘Value for Money’ solution for your council. “Is this tender documentation robust enough to withstand public scrutiny?” Consider whether there may be any perceived bias in the document. For example, are the requirements tailored in such a way that only one or two possible suppliers in the market may be able to lodge a submission? Another point to consider is the ‘newspaper test’ - is anything in the tender documentation that you wouldn’t want to see on the front page of the newspaper? “Am I being consistent with my terminology?” If you chose a word, be clear as to its meaning and be clear as to its application. For example, if you are referring to a tenderer, keep referring to a ‘tenderer’ throughout the documentation; do not use other words interchangeably, such as ‘respondent’ or ‘contractor’, as it creates ambiguity and thus, uncertainty. “Should this really be a mandatory requirement?” When asking whether a tenderer must provide a certain document in their tender submission, consider whether this should be a mandatory requirement. Be mindful that this requirement (i.e. use of ‘must’ or ‘shall’) may remove the opportunity for council's evaluation team to seek clarifications and a tenderer may be excluded from the process at initial compliance stage without permitting council the opportunity to seek clarifications. “Do I need this proof read?” The simple answer is “Yes!” Always allocate the time for both yourself and another person in your team to proof read the tender documentation and in doing so, being mindful of the objectives of the tender process and to check for any ambiguities. If you are not clear in expressing council's requirements or terms of contract, there is even less chance that a tenderer will understand it! DON’T PANIC. If you do feel at a loss, remember that help is at hand! LGP offers a service to NSW councils to provide general procurement advice. Please feel free to contact your LGP Business Development Manager. LGP Procurement Training Enhance productivity and become more compliant in procurement processes by up-skilling and acquiring new skills and competencies.
LGP provides a range of innovative learning and development solutions tailored specifically for NSW council staff, delivered via different mediums including face to face and online mode. Through the extensive and exciting gamut of training programs in procurement, LGP can support you in achieving the best outcome from your suitably qualified and skilled staff members. LGP training programs are offered as the following three suites and you can learn more about each by clicking on the relevant links:
Grab this opportunity to partner with LGP for your procurement training needs. There are limited seats available for the Advanced Diploma of Procurement and Contracting qualification starting Wednesday 19 July 2017. Register now! Training Calendar and Registration To contact LGP Training,
email or call 02 8270 8709. UPCOMING EVENTS'Networking in the Bush' - ArmidaleRegistration Closing Soon!LGP is committed to supporting local government procurement professionals to achieve efficiencies and drive capability development in procurement. LGP’s second networking meeting for the year will be held in the Northern region of NSW in Armidale on Tuesday, 25 July 2017. Who should attend?
Why should you attend?
Agenda: Click here Date: Tuesday, 25 July
2017 Sponsorship Opportunities
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