Strategic Contracting Procedures

On 20 November 2019 Council resolved to publish a notice about adopting the ‘Strategic Contracting Procedures’ (SCP) under Chapter 6 Part 2 of the Local Government Regulation 2012; resolving that it will further consider the SCP at Council’s General Meeting on 29 January 2020 where it proposes to formally adopt the SCPs. The General Meeting is held at Council chambers in Cleveland starting at 9.30am.

The spending of Council funds for goods, services and work is regulated by the Local Government Act 2009 (LGA) and Local Government Regulation 2012 (LGR) under procedures described as the ‘Default Contracting Procedures’ (DCP) and the ‘Strategic Contracting Procedures’ (SCP). The DCP is the framework by which Council currently conducts procurement and contracting. This framework provides a prescribed method for conducting procurement and contracting for every Council in Queensland, regardless of size, complexity, strategy or consideration of the risk profile of the individual Council. The DCP is a default framework aligned principally to individual contracting processes and transactions. Council has used the DCP to their maximum capability, however, the prescriptive nature is no longer the most advantageous mechanism for a Council intent on a more dynamic and strategic approach to contracting.

Council has instigated a Procurement Transformation Program that recommends a transition from using the current DCP to using the SCP to strengthen internal efficiencies, external savings and long term sustainability to deliver the Corporate Plan’s (2018-2023) quadruple bottom line. The transition is proposed to start from approximately 1 July 2020 and is aligned to Council’s integrated planning framework and budget prioritisation. The transition is part of the Procurement Transformation Program identified and reported quarterly in Council’s 2019/20 Operational Plan.

The key elements of the SCP were reviewed in 2017 by the Queensland Government Inquiry into Local Government Procurement. The Inquiry acknowledged the SCP as a flexible framework for tendering and contracting for the supply of goods and services and also for the disposal of assets, whilst managing risks and probity. The SCP governance framework will be supported by an amended version of the current Procurement Policy, Contract Manual, Contract Plan and where applicable significant contract plans. The transition is overseen by a Procurement Steering Committee, reported quarterly as part of the Operational Plan whilst noting procurement activities are audited by the Audit Committee. The governance framework will be updated as part of the transition involving three key phases:

Phase 1: Public Notice regarding the proposed SCP resolution to occur at the Council General Meeting on 29 January 2020.

Phase 2: Resolution to implement the SCP as part of the 2020/21 Budget from 1 July 2020.

Phase 3: Review the SCP as part of the ongoing 2020/21 Operational Plan.

Contact the Procurement Services Unit at procurementtenders@redland.qld.gov.au for further information.

References:

Redland City Council: General Meeting Report dated 20 November 2019: Item 13.3 Strategic Contracting Procedures

Qld Parliament: Infrastructure, Planning and Natural Resources Committee: Public Briefing—Inquiry Into Local Government Procurement

Redland City Bulletin: Advertisement dated 11/12/2019 Strategic Contracting Procedures