12 July 2016

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LGP News August 2016

" Keeping you connected in local government procurement "


How to Get Procurement Strategy Right – Start with Why

by Michael Robinson, Acting General Manager

In many councils the capabilities of procurement departments are being tested as never before. They are required to help their organisation deal with the impact of complex tendering, local economic development, legislation compliance, rising costs of goods and services, talent shortages, and much more.  If ever there was a need for procurement to lead the way, it is now.

The good news is that in many cases procurement is better equipped and more eager to meet these challenges than it has ever been. Today, many procurement professionals have a seat at the senior management table. Their councils’ activities and results are getting attention—and for all the right reasons. Not only do they successfully and consistently contribute to cost reduction, but in an increasing number of councils, they are regularly contributing to assisting innovation and driving real value through quadruple bottom line results. That said, there are also many procurement departments that still have blurred ideas of what their true strategic purpose should be. If you ask a dozen different procurement staff what their operation is designed to do - and importantly, what it is not designed to do - you will likely get a dozen different answers. Many of those answers will still tend to revolve around administration and simple purchasing.

So it might seem logical to think that procurement staff are clear about their impact on their council’s budgets however the trouble is, procurement has the ability to influence profitability only when it is operating at a genuinely strategic level within the broader organisation. In the great majority of cases, that is still not so; procurement still does not operate at its full potential. It has not yet gotten the strategy part right.

Today, more than ever, it is critical that the procurement strategy reflects and contributes toward your council’s vision. The vision should articulate WHY your organisation exists and what you are to achieve for your community. This video directs you to a Simon Sinek TED Talk and his ideas around the Golden Circle and the importance of starting with “Why”. This presentation is not talking about procurement, however if you think about any high performing department or organisation, I am sure these messages will ring true. I encourage you to watch this video as, like me, it may inspire you to ensure your procurement strategy is right, it demonstrates WHY it is important and contributing to the vision of council and your community.


Delegate Registrations and Program -
LGP Annual Conference

Delegate registrations are now open for the 2016 Local Government Procurement Annual Conference on 17 and 18 November 2016. The conference theme of
'Effective Governance: An Essential Part of Procurement' will address governance in procurement including appropriate levels of control and probity. 

About the 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.  A snapshot of the presentations are below:

Procurement Before, During and After Council Amalgamations in Victoria
Angelo Saridis, Manager Performance and Innovation – Latrobe City Council 
With Council mergers upon us in NSW, this session will provide a forum for sharing similar experiences in Victoria while opening up discussion on both the challenges and opportunities that the ‘Fit for the future’ reforms are presenting to the NSW local government sector.  A ‘warts and all’ narrative of the Victorian experience will be aimed to highlight the opportunities available to NSW Local Government organisations throughout this period of reform.  

Procurement continues to be one of the most significant contributors to achieving the broader objectives of Local Government and with the changes afoot, Procurement needs to be ready to adjust and reshape itself to continue to add value.   Ensuring that Procurement governance structures are therefore designed to enable ‘Procurement Performance’ is crucial to this task.  

Enabling Broad Reuse of Publicly Funded Information by Anyone 
Martyn Hazelwood, NFRIP - Project Leader - Geoscience Australia

Myth-Busting the subject of Ethics… yours… and theirs 
Craig Lardner FCIPS, Principal – Procurement Advisory Services Pty Ltd
In this session we will explore the myths and truths about our ethics in procurement and in business. We will discuss and debate the view that ethics actually matter…perhaps they don’t matter at all?... as long as, things look OK the surface…. or, your intentions were honourable.

Perhaps it matters more than any other part of the business you do.

Procurement – the hidden trapdoor 
Michael Symons, Managing Director – Anti Corruption Consultants Australia
Mick will provide an insight into two procurement cases outlining how checks and balances were overcome through manipulation by key personnel in the process.  Their methods are discussed highlighting potential red flags that should have raised concerns. 

Procurement Infrastructure Projects specific to Local Government  
Adam Wallwork, Partner – McCullough Robertson Lawyers
Goran Gelic, Senior Associate – McCullough Robertson Lawyers

Probity and Procurement 
Monica Kelly, Principal - Prevention Partners NSW

Update on Local Government Reform
John Davies, Manager, Council Governance - Innovation and Development Group, Office of Local Government

NSW Procurement Update
Jon Doyle, Director Sector Advice – NSW Procurement

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.


There are four registration options to choose from which all include:

  • Full attendance at the two day conference
  • Conference pack
  • Conference dinner on Thursday evening

Early bird: $825 inc GST (prior to and including 21 October 2016)
Full fee: $990 inc GST
First timer: $660 inc GST (a person who has not attended the conference previously)
Special offer for general managers and directors - attend the conference free of charge, when attending with a paying council officer.

Further information

The LGP website will be updated regularly with new information. You can also contact the LGP Events Team or call 02 8270 8710.


LGP Customer Satisfaction Survey

LGP is continually striving to improve our services and processes.  Feedback from our customers will help enhance, improve and develop LGP to continue to meet the needs of local government.

If you would like to provide feedback, please complete the customer satisfaction survey, the questions are not compulsory and you can include as much or as little information as you wish.

The LGP Customer Satisfaction survey closes at 5pm 10 August 2016.


August LGP Network Meeting

The next LGP Network meeting will be held on Friday 26 August 2016 in Sydney. The meeting encourages council professionals to meet in an environment where networking and information sharing is conducted, and discuss the latest procurement initiatives happening within local government.

The August LGP Network meeting will focus on the topic of 'Council Trends', and will include special guest speaker Dr Marta Andrecka, Assistant Professor at the
University of Copenhagen, Faculty of Law. Dr Andrecka specialises in procurement practises, research and academia across the profession. Dr Andrecka has provided independent insight to key projects for the European Commission, Danish Institute for Human Rights, Swedish Purchasing Consortium, Public Procurement Analysis (London) and Rambøll Management Consulting (Copenhagen) and multiple universities. 

The meeting will also include an update from Phill Scott, LGP Tenders & Contracts Manager, who will provide an overview of what local government employees have been requesting advice from LGP over the last three months. The update will be followed by a Q&A session where questions submitted by attendees will be discussed by members of the group. If you have a question you would like discussed by the group please send it to Bruce Rose. Please indicate if you want your question considered anonymously.

LGP encourages procurement professionals in local government to attend the next LGP Network meeting, and details are below:

Date: Friday 26 August 2016
Time: 9:30am to 1:45pm. Please arrive at 9:00am for registration
Location: The York Centre, 95-99 York Street Sydney NSW
​Light refreshments will be provided.​

Register: Click here
Agenda: Please email suggestions to potential agenda items to Bruce Rose

Special interest groups: Meetings of the Special Interest Groups will not occur on this occasion.

The draft agenda will be distributed to network members and available for download via the LGP website.


LGP Learning Centre - August Training Calendar 

LGP will be conducting procurement training in Sydney from
15 to 30 August 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 and Dates

15 August 2016 
Contract Management Essentials

This is a full-day course designed to provide participants with an understanding of key principles that need to be observed when managing contracts in local government sector. Contract management Essentials provides essential information on the contract management life-cycle including foundation insights to procurement principals. Register here.


16 August 2016
Evaluation, Supplier Selection and Contract Establishment

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. Register here.

17 August 2016
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. Register here.

29 - 30 August 2016
Advanced Contract Management

This two-day course is designed to advance skills in contract management and suits those managing high risk, complex contracts or those wishing to learn more in this space. Register here.

    View the entire LGP Training calendar here.

    Training is also available in your council or for your ROC or JO. For more information please contact Rebecca North, Training Coordinator by email or on 02 8270 8709.


    Diploma in Government Procurement and Contracting – September 2016

    Local Government Procurement in association with Bayley and Associates, a registered training organisation, is offering council staff a Diploma in Government Procurement and Contracting commencing September 2016.  

    This is a great opportunity for Local Government staff that has completed Certificate IV to progress to a higher qualification

    The Diploma is 11 days long, made up of two and three-day blocks of training with the last three days focusing exclusively on assessment.

    2016 Dates are below:

    Block 1: 22-23 September
    Block 2: 12-14 October
    Block 3: 26-28 October
    Block 4: 23-25 November

    Click here to view more information on the LGP website.

    If you would like more information regarding the course, please contact Rebecca North, Training Coordinator by email or on 02 82708709.


    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.


    NPN Hardware Contract Survey

    The NPN (National Procurement Network) has received significant interest from local government and major industry leaders in regards to establishing a long awaited Hardware contract for local government in NSW, VIC, TAS, QLD and NT. 

    LGP is the Lead agency for this upcoming contract and we are currently engaging with the main industry stakeholders for the development of the specification in preparation for the Procurement, Probity and Evaluation plans; the release and close the tender; evaluation of the responses; and induction of the tenderers.

    This tender is scheduled for release in early November 2016 for an anticipated contract commencement of June 2017. 

    At this stage the NPN is looking at creating a contract for Industrial, Construction, Electrical and General Hardware and will include:
    •    Paint and Protective Coatings and Adhesives 
    •    Electrical and Lighting (Industrial & Household)
    •    General Hardware
    •    Building and Construction Materials
    •    Hand and Power Tools (excludes Outdoor Power Equipment)
    •    Nursery and Garden Care (excludes Herbicides and Pesticides) 
    •    Domestic Plumbing Supplies (miscellaneous purchases only)

    The following categories will not be included; Safety (Protective Personal Equipment), Bulk/Civil Plumbing Supplies and Outdoor Power Equipment as these goods are already available on current LGP contracts:
    •    Supply of Workwear and Personal Protective Apparel (NPN3.11)
    •    Pipes, Associated Fixtures, Pumps & Concrete Products (LGP908-2)
    •    Small plant (lawn-mowers, whipper-snippers, blowers etc.) (LGP5.08-2)

    To ensure the critical success of this contract in meeting the needs of local government, assistance is requested from councils by completing the survey below:

    The survey will be open until Friday 12 August 2016.

    If you would like more information regarding the Hardware Survey please contact Jessica Jones, Acting Category Manager by email or on 0455 081 848.


    Follow up – Secure Parking Pty Ltd v Woollahra Municipal Council

    You may recall our paper here from July 2015 called ‘Council resolved to accept the tender and delegates the General Manager to formally enter into the contract’. So, when is the contract formed?

    An appeal of the initial judgment was decided on 4 July 2016 in Secure’s favour. The Appeal Court found that no contract existed because there was no ‘meeting of the minds’[1] in regards to essential terms of the contract.

    Essentially, because Secure and Council held different opinions in relation to essential terms that comprised the contract, no contract existed for the Council to make a resolution about.

    Some points to consider:

    • Make sure there is a ‘meeting of the minds’ of the parties, otherwise no contract may have been formed
    • Ensure that the documents you create to call for tenders are the ones you wish to use for the life of the contract and that the elements of the contract are agreed to by both parties
    • Council’s resolution is acceptance of the offer made by the tenderer once it is communicated to the tenderer.

    Monica Kelly from Prevention Partners explains more here.


    LGP Fleet Category Cost and Spend Review

    What is the Fleet Category Cost and Spend Review and how can my council benefit from it?

    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.

    Below is a testimonial from Jim Roberts, Manager Corporate Procurement and Supply, after they conducted the Fleet Category Cost and Spend Review within council:

    We engaged Procurement Advisory Services (PAS) to perform a detailed spend category review across our Council's fleet of cars and light commercial vehicles. Our intent was to achieve a clear understanding of the whole of life costs of these assets and to discover opportunities for cost savings in our current processes along with investigating other alternatives to fleet ownership.


    We felt it was important that this analysis be done independently and not internally. A two stage approach was recommended which saw the initial review determine the current cost of fleet ownership. Stage 2 followed and identified savings opportunities, process improvements and alternatives. Interviews with key staff were performed in a professional manner and progress updates given to us were regular and informative.

    As a result of the analysis we now have a database tool that provides a clear picture of our cost drivers. The review performed by PAS was very effective and delivered on time and on budget. Fleet category specialist Colin Davies was thorough and detailed in his analysis. Clear goals and expectations were identified in the scope at the start of the process and were met throughout the course of the exercise. The final report highlighted significant cost saving opportunities along with other key findings, recommendations and a risk matrix. I would have no hesitation in recommending PAS to perform a review of this type.”

    To fully appreciate the potential return on investment for your council from participating in this program click hereor contact your LGP Business Manager.

    For more information about the LGP Fleet Category Cost and Spend Review visit the LGP website here.


    How Can The 
    LGP Projects Team Help You?

    The LGP Projects Team are a specialised unit established by LGP to provide individual support to councils in relation to specific procurement projects.

    The LGP Projects Team's solutions include:

    • Tender Facilitation
    • Probity Audit and Advice
    • Review and Develop Process, Policies and Procedures
    • Outplacement Services
    • Contract Management 
    • Project Management

    To find out in more detail about what the LGP Projects Team offers click here. To request a quote please visit the LGP website.

    If you would like further information 
    please contact the LGP Projects Team on 02 8270 8700 or by email.


    Tip of The Month

    By LGP Projects Team

    Procurement Templates

    Procurement Templates, such as, Evaluation and Probity Plan, Request for Tender, and many other various forms, should be standardised across the organisation.

    While some minor amendments would be required to suit each type of category, the similar format becomes more familiar with staff, easier to use, and continuous improvements occur.

    Imperative information pertaining to legislation, regulation and policies are included in the templates which enhances communication across the organisation.


    Social Enterprise and Business Forum

    Social enterprise is a business model that is raising much interest from media, government and business as an innovative approach to generating social and environmental good through business.

    There are 20,000 social enterprises contributing to an estimated 2-3% of GDP and employing 300,000 Australians, this nascent sector is rapidly growing.

    Join this local event to understand and learn about social enterprise and how to incorporate these innovative businesses into business and government supply chains. 

    This is an event for social enterprises, for buyers and for those interested in learning more about social enterprise within Newcastle and the surrounding area. The event will focus on raising awareness and understanding of social enterprise and buying and selling from social enterprise.

    The event details are below:

    Date: Monday 8 August 2016
    Time: 9:30am to 4:00pm
    Location: Mereweather Surfhouse, 5 Henerson Parade Merewether 2291

    This is a complimentary event being run by Social Traders in partnership with the NSW government Office of Environment and Heritage. If you would like to find out more information please click here.  If you would like to attend registration is required via the event page here.


    Australasian Waste & Recycling Expo

    Earthmoving Equipment Australia, along with Case Construction Equipment will be hosting a stand at this year's Australasian Waste & Recycling Expo, held on 10 and 11 August 2016 at Sydney Showground, Sydney Olympic Park.

    Australasian Waste & Recycling Expo is Australia’s leading event dedicated to the waste and recycling marketplace, bringing together the industry’s most influential waste and recycling professionals for two days of innovation, industry insights and networking.

    Earthmoving Equipment Australia has five of the world's leading brands:

    • Case Construction Equipment (NSW and SE QLD dealer)
    • Thwaites Site Dumpers (Sole Australian dealer and distributor)
    • Weber MT Compaction Equipment (NSW/QLD importer and dealer)
    • Auger Torque (Authorised dealer Australia)
    • Bergmann Site Dumpers (Sole importer and distributor)

    Earthmoving Equipment Australia would like to offer 25 tickets for councils who predominately those who own waste sites or tips. If you are interested in the opportunity of attending the Australasian Waste & Recycling Expo, click here for more information.


    LGNSW Finance Events - August 2016

    Local Government NSW (LGNSW) have a series of finance events coming up in the week of 15 to 19 August 2016. The events will feature international finance and local government expert, Professor Enid Slack, a Canadian academic and Director of the Institute on Municipal Finance and Governance.

    Details of each of the upcoming LGNSW finance events are below:

    Measuring Fiscal Health – A Masterclass
    Tuesday 16 August 2016
    1.00pm – 5.00pm
    Sydney CBD
    Cost: $330 inc GST
    Register here

    LGNSW Finance Summit 2016
    Wednesday 17 and Thursday 18 August 2016
    Novotel on Darling Harbour, Sydney
    Cost: $660 inc GST
    Register here

    International Perspectives on Amalgamation – Focus on Finance and Governance
    Friday 19 August 2016
    Breakfast Seminar 7.00am to 8.45am
    Sydney CBD
    Cost: $110 inc GST
    Register here

    If you would like more information regarding these events please contact LGNSW Learning Solutions by email or on 02 9242 4181.


    Current LGP

    For information regarding LGP tenders, including current status, click here.


    Current LGP Contracts

    Find out what current contracts LGP has here.


    Upcoming LGP Tenders and New LGP Contracts

    To find out what tenders are coming up at LGP or what new contracts have commenced at LGP, click here.


    Amendments to LGP Contracts 

    To find out information about amendments that have occurred between LGP and Approved Contractors, click here.


    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.


    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.

    2016 Annual LGP Conference - Sponsorship and Exhibitor Opportunities

    Sponsorship and exhibitor opportunities are now available for the 2016 Annual Local Government Procurement Conference. 

    The conference provides a unique opportunity for suppliers to showcase their goods and services to a cross section of procurement professionals from across the state over two days, and is an excellent opportunity to attract potential customers and build on existing relationships already established. 

    The event provides excellent value for money with an anticipated 80 delegates who are key procurement professionals within NSW local government councils.

    For further information view the Sponsorship and Exhibitor Prospectus or register online. The sponsorship and exhibition space is limited, suppliers will be treated on a ‘first in, first served’ basis.

    If you have any questions about the conference please contact the LGP Events team via email or 02 8270 8710.


    What's happening with LGP approved contractors?

    Various LGP contracts - Staples Australia

    Staples and the Australian Economy -
    How we're making an impact

    At Staples, we understand that we are a significant part of the Australian community and that our actions and initiatives have an impact beyond our customers and employees. Take a look at this brochure here to find our more on what we contribute to local communities and the economy.

    To find out more about Staples, visit their website here.


    LGP Spotlight on Social Enterprise: 
    Beehive Industries

    Operating for more than 45 years, Beehive Industries is a NFP social enterprise supporting seniors and persons with disability, which provides social procurement solutions for government and corporate clients such as City of Sydney, Racing NSW and Telstra, enabling them to make sustainable supplier choices while not compromising quality or value.

    For further information about the impact of social procurement please click here, and you can find further information on the range of services offered by Beehive here. If you would like to know more about Beehive Industries please visit their website or contact Brendan Lonergan by email or on 02 9331 4085.