TO COUNCILS OF LOCAL BUY ARRANGEMENTS
the last six years the Local Government Association of Queensland
(LGAQ) has operated a program called CAPS (Contracts and Purchasing
Services) that provided Queensland Local Government the option of
using contractual arrangements that had been set up by the LGAQ through
a full tendering process. The Local Government Act allows Queensland
Local Governments to purchase goods and services through these contracts
without having to go through the laborious and costly exercise of
calling tenders themselves. It was resolved to transform this CAPS
program into an all-encompassing procurement service that is called
Local Buy Pty Ltd. The relevant sections of the Local Government Finance
Standard and Local Government Act are listed below.
Buy provides a number of benefits to councils purchasing through a
Local Buy Tendered Arrangement.
Exemption from requirement to seek tenders or quotes.
a) Reduced time, effort and expenditure for Councils in not having
to call tenders. Quotes, evaluations and appointments.
b) Immediate access to suppliers' products and services.
c) Common terms and conditions
d)Improved efficiencies associated with purchasing and contracting.
2. Best offer/terms provided by suppliers - achieved through the aggregation
of purchasing and negotiating power.
3. Supports local industry and business - arrangements created through
the local supplier where possible.
4. Reduction in costs for suppliers means a lower cost for products
and services through simplified documentation preparation and evaluation
5. Contracts designed specifically for Queensland Local Governments'
specific needs and requirements including product specifications,
local business component, delivery and payment processes.
6. Streamlined purchasing processes.
7. Standardized terms and conditions, product specifications and purchasing
8. Open competition across a much wider market place.
9. Detailed contract and purchasing information from LGAQNet includes
company details, product specifications through to pricing and delivery.
10. Ease of use via LGAQNet. List suppliers locally and statewide.
11. Hard copy of contract supplied by contracted suppliers on request.
12. A completed Contract Access Request Form is not a mandatory requirement
for a Council. This is however effective for our auditing purposes.
Suppliers on the LGAQNet Local Buy database are obliged to report
to Local Buy all transactions to councils through any Local Buy contract.
13.Participation in Better/Best Practice employed through collaboration
with Member Councils.
PREFERRED SUPPLIER ARRANGEMENT
Contract is an LGA arrangement as defined in the Local Government
Finance Standard (1994) - ie. 'LGA arrangement' means
(a) an arrangement
entered into by -
i the Local Government Association;
ii a company registered under the Corporations Act if the Association
is its only shareholder;
(b) that would be a purchasing arrangement if entered into by a local
(c) for which the procedure set out in section 14 1 has been followed
by the Association as if it were a local government.
The Finance Standard defines purchasing arrangements as:
(a) a standing offer arrangement; or
(b) a preferred supplier arrangement; or
(c) a register of pre-qualified suppliers.
this contract is a Preferred Supplier Arrangement that Local Buy has
established via a public tendering process. The Finance Standard defines
preferred supplier arrangements as,
supplier arrangement" for a local government means an arrangement
by the local government with a supplier for the supply of goods or
services under agreed pricing conditions for a stated period".
THIS CONTRACT IS ESTABLISHED AS AN LGA ARRANGEMENT, COUNCILS MAY USE
IT TO MAKE PURCHASES THAT ARE EXEMPT FROM ANY FURTHER REQUIREMENTS
TO SEEK TENDERS OR QUOTES.
Local Government Act (1993), in Part 3 - Contracts and Tendering,
A local government may enter into a contract without complying with
section 484 (When tenders are required) or 485 (When quotations are
required) if -
(a) it resolves that it is satisfied that there is only 1 supplier
reasonably available to it; or
(b) it resolves that a genuine emergency exists; or
(c) it resolves to obtain second-hand goods; or
(d) it resolves to purchase goods at an auction; or
the contract is made under an exemption to open competition in the
Local Government Finance Standards; or
(f) the contract is made with, or under an arrangement with or made
i. the State, a government entity, the Brisbane City Council or another
local government; or
ii. another Australian government, an entity of another Australian
government or a local government of another State or a Territory.
486.(1) (e) refers to Section 11 of the Finance Standard, which states
A contract is made under an exemption to open competition if the contract
is entered into
(a) under a standing offer or a preferred supplier arrangement; or
(b) with a supplier from a register of pre-qualified suppliers; or
(c) under an LGA arrangement.