A new company launched by the Local Government Association of Queensland (LGAQ) has been set up to aggregate the buying power of 125 local councils, allowing them to bypass laborious tender processes.
Traditionally, the Local Government Act and Local Government Finance Standard dictates that local councils in Queensland must go to public tender if they are spending over $100,000 and obtain at least three written quotes if spending between $10,000 and $100,000.
For a small local Government council, such a tender process often proved cost and time prohibitive. But as of December, a company called Local Buy', formed by the LGAQ, has given councils the choice of whether they need to take on such tasks themselves.
Local Buy has been granted the legislative power to call tenders on behalf of all of the councils. By aggregating the purchasing and negotiating power of the councils, Local Buy can negotiate better prices and terms. It also saves suppliers from having to submit applications to multiple councils' tenders.
The procurement company has put together Tender and Quotation Agreements with several hundred companies (206 at last count) with which local councils can now purchase from, under set terms and conditions. Among these preferred suppliers are fourteen IT companies.
These suppliers, including several IT vendors and channel companies (see next week's ARN for details), have contracts with Local Buy valid for two years with an option to extend for 12 months. The contracts for these initial suppliers expire in June 2004, although their progress is monitored on a quarterly basis.