New Procurement Policy promotes more engagement with local suppliers

A more strategic approach to contracting and greater engagement with local suppliers are among the major positives which Sunshine Coast Council expects from its 2018/19 Procurement Policy.

The new policy was endorsed by council at today’s Ordinary Meeting (June 14).

Corporate Strategy and Finance Portfolio Councillor Tim Dwyer said the 2018/19 Procurement Policy would formalise council’s move into Strategic Contracting Procedures.

“This change from Default Contracting Procedures to Strategic Contracting Procedures will allow council to develop and implement its own strategic procurement and contracting framework,” Cr Dwyer said.

“Council currently spends around $250 million per year in procuring goods and services.

“In the 2017/18 financial year (to 1 May 2018), council has spent more than $177 million with local suppliers, which represents around 75% of our total purchasing spend. This is up from 68%, or $180 million, in the previous year.

“The 2018/19 Procurement Policy will enable council to adopt a far more strategic approach to contracting.

“Contracts can be formed through a framework tailored to deliver better value for council, providing significant opportunities for better contracting outcomes.

“The costs of taking Strategic Contracting Procedures will be no more, and likely less, than the costs of maintaining our existing framework under the Default Contracting Procedures, which are restrictive and can inhibit innovation and optimal procurement outcomes.

“The benefits of a strategic approach will be reductions in contracting expenditure and internal costs, reductions in newspaper advertising costs, improved delivery timeframes, better engagement with local suppliers, social benefit suppliers and indigenous suppliers.”

The change to Strategic Contracting Procedures includes a new framework for seeking quotes to a greater threshold than under the previous Default Contracting Procedures. This includes:

• Request only one quote required for contracts with a value up to $25,000
• Request three quotes for contracts $25,000 to $250,000
• Request five quotes for contracts $250,000 to $1 million
• Competitive processes for contracts $1 million to $5 million
• Significant Contracting Plans and competitive processes for contracts worth more than $5million

The Local Government Act 2009 (LGA) and the Local Government Regulation 2012 (LGR) outline frameworks through which councils may conduct procurement of goods and services and disposal of non-current assets.

The LGR provides two frameworks – Strategic Contracting Procedures and Default Contracting Procedures - through which councils may conduct procurement of goods and services and the disposal of surplus assets.

Sunshine Coast Council has previously always adopted the Default Contracting Procedures for its procurement and contracting.