LGAProcurement updateRoads and Works 2014

Rob AcklandCEO, 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

• 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 Categoriesrepresents 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

• 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?

• 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