Procurement model goes strategic
A new approach to procurement by Logan City Council, Queensland, will deliver increased value for money for the community.
Strategic contracting procedures will be implemented in March 2022, enabling Council to embrace more innovative purchasing practices.
Councillor Jacob Heremaia, said Council’s spend of around $500 million each year on a diverse mix of goods and services was significant.
“It’s important we have the right purchasing tools in place.”
Queensland councils are bound by two options for procurement under legislation: default or strategic.
Cr Heremaia said Council’s use of the default model did not live up to potential.
“Now we’ll be able to develop and implement our own procurement and contracting framework that allows us to identify and capitalise on opportunities.
“We will be able to better negotiate contracts, speed up the procurement process and create further opportunities for local and indigenous businesses and social enterprises.”
Councillor Natalie Willcocks said the strategic procedures would be more transparent to the community.
“Council will need to adopt a contracting plan and manual each year that aligns with our annual Operational Plan and Budget, and these will be publicly available.
“Our procurement team conducted a successful trial of the strategic model in some of Council’s purchasing over a six-month period and made savings for the organisation.
“It will be a milestone for Council to move fully to this model next year in line with our counterparts at Brisbane, Gold Coast and Sunshine Coast.”