Greater engagement with local suppliers and lower costs are the major positives which Sunshine Coast Council expects from a change to its contracting procedures.
The change from Default Contracting Procedures to Strategic Contracting Procedures was unanimously endorsed by council at the Ordinary Meeting today (May 17).
Corporate Strategy and Finance Portfolio Councillor Tim Dwyer said adopting the Strategic Contracting Procedures would allow council to develop and implement its own strategic procurement and contracting framework.
“This is a great confidence boost for small business on the Sunshine Coast and demonstrates that council is listening and opening the doors to enable more local suppliers to earn contract opportunities with council,” Cr Dwyer said.
“Council currently spends around $250 million per year in procuring goods and services. In the 2017/18 financial year (to March 2018), council has spent $161.1million with local suppliers, which represents around 75% of our total purchasing spend.
“Taking a strategic approach to procurement which allows contracts to be formed through a framework tailored to deliver better value for council, will provide 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 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.