LGAProcurement update
Roads and Works 2014
Rob Ackland
CEO, LGA Procurement
MISSION
Improve Councils financial performance and risk
management by providing strategic procurement
services & advice
What we do?
• Development & risk management for tenders and
contracts
• Vendor Panel. Simple to use, value for money
contracts, no need to do your own tender
• Consulting services, procurement audits,
contracts, etc.
• Procurement training
• Strategic procurement and forward procurement
planning
Why is procurement important
• Councils spend >50% of expenditure on goods and
services
• Sustainable savings and risk reduction from
improving procurement
• Very few staff have procurement as a full time role so
opportunities being missed
• Procurement reform can support regional
development and capacity building by collaboration
and forward procurement planning
Key opportunities for procurement
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Understand spend and opportunity by Council and Region
Success comes from having the right skills and resources
Move from price to cost and benefits
Link forward procurement planning to financial planning and
asset management strategies
• Reduce cost and risk by streamlining purchasing policy and
practice
• Council spend, used strategically, can support your local
area/region
Top Tier 1 Spend Categories
represents 76 % of total spend
Engineering services panel
• There are 47 suppliers on the Engineering
Services panel with capabilities across the
following key categories:
(1)Engineering Consultancy Services (34
Vendors)
(2)Asset Management Services (18 Vendors)
(3)Water Management Engineering Services
(16 Vendors)
• Access via Vendor Panel
• Details from our stand
Road signs and services
• Two suppliers
• Pricing benchmarked below a large
Council so very sharp
• Statewide services
• Access via Vendor Panel
• Purchase orders to have contract
number to get discounts
Electricity
• <160kWh
• Green
• Unmetered street
Other contract of interest
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Bulk fuel
Tyres and batteries
Oils and lubricants
Plant and equipment
Special bodies
Trucks
Small plant and equipment
Light fleet
Contract development and evaluation
• Thanks to those who participate
• Your expertise helps shape the
contracts
• Even if you are outside of Adelaide
Supplier feedback
• Increasing use of LGAP T’s&C’s is great
news and helps keep costs down for
everyone
• Specifications need to be standardised
• Be careful what you ask for
• Hand deliver a tender to a regional Council
• 3000 pages of WHS procedures
• Specification out of date by 10 years
• PI and PL needs to be balanced against
the risk of each project not templated
WTFH?
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Casual labour hire
General hardware and associated products
RC pits, pipes and grates, plus spun products
Pavement marking & crack sealing
Procurement training for Council groups and
regions
• Visit the stand
Thank you for the opportunity to share
some thoughts on procurement.
Come to the stand for a chat