Logan City is the latest Queensland council to move towards strategic contracting (SCP) which it says offers a more innovative and flexible procurement model.
Queensland legislation allows two different contracting procedures for local government procurement – Default Contracting Procedures (DCP) and Strategic Contracting Procedures.
DPC is the default framework. It offers a structured and prescriptive approach involving compliance with certain requirements.
In comparison, SCP allows local governments to adopt their own procedures and create their own annual contracting plan and contracting manuals.
Logan City says under SCP Council will be able to adopt, develop and implement its own procurement and contracting framework.
A revised operating model
Jacob Heremaia, Procurement and Appropriations Special Committee Chair for Logan City, says DCP didn’t suit Council’s profile, size and complexity.
“A comprehensive review of Council’s procurement practices was undertaken to develop a series of recommendations based on establishing a revised operating model and adopting SCP,” he told Government News.
“This will deliver significant enhancements in service delivery across Council and the community. It also offers better value for money and supports innovation.”
He says the new model means Logan City Council will be able to negotiate contracts more appropriately and speed up procurement timeframes.
It will also allow Council to start local initiatives to support local businesses and provide innovative solutions.
“The new model supports Council’s procurement vision to be more agile, foster innovation and achieve better value,” Mr Heremaia said.
“SCP allows Council to design and implement its own framework for contracting to take advantage of contemporary procurement procedures.
“This will offer the best value for Council while also creating sensible standard operating procedures tailored to effectively manage risk and the efficient use of Council resources.”
A more dynamic approach
Redland City Council in 2020 resolved to apply the SCP saying the prescriptive nature or SCP was no longer the most advantageous mechanism for council, which wanted a more dynamic approach.
Mr Hermania says Logan City consulted with other South East Queensland councils that have transitioned to SCP.
“Legal firms were consulted to assist us to better understand the process and procurement frameworks along with learning how Council could benefit from a transition to SCP,” Mr Heremaia said.
The new contracting plan will be adopted each year after Council finalises its annual budget.
Council will begin applying SCP to its contracts from March 1.
The Queensland Government Inquiry into Local Government Procurement acknowledged SCP as a flexible framework for tendering and contracting for the supply of goods and servives, as well as the disposal of assets, while managing risks and probity.
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