Council gives local businesses first preference to supply


In a first for local councils, Redland City Council has entered into an alliance with Local Buy that will reduce Council’s procurement costs and strengthen support for local businesses.

Local Buy is a subsidiary of the Local Government Association of Queensland and will undertake procurement and tendering services on Council’s behalf.
Redland City Mayor Karen Williams late last year requested a review of Council’s procurement processes.

“I asked for this because I am passionate about two things – supporting local businesses and providing the best possible value for our ratepayers. The Local Buy agreement ticks both boxes,” Cr Williams said.

“This resulting arrangement will ensure Redlands-based businesses can better compete for Council work, with suppliers being able to register their interest in Council contracts and receive individual notification when those contracts are advertised.

“Work on this new process is still under way, but current Council suppliers can expect to be contacted in the near future. We are committed to retaining relationships with our current local suppliers.”

Cr Williams said Council spent more than $44 million on business services in the Redlands last financial year.

“Council’s new procurement arrangements will provide even greater investment in the community by awarding primary supplier status to Redlands-based businesses. All businesses whose registered address is outside the Redlands go on a secondary supplier list,” she said.

“This is a big win for local businesses, which will provide better opportunities for them to thrive and be more competitive.

“Not only will it put money back into our local economy but it helps to provide local jobs, reduce environmental impacts and promote a stronger sense of community.”

For purchases of up to $15,000, Council will only need to request one quote from the primary supplier list. Suppliers on this list must have their business address registered in the Redlands.
For purchases between $15,000 and $200,000, Council will request three written quotes, two from the primary list and one from the secondary list, which includes businesses from outside the Redlands.

Purchases of over $200,000 will be subject to an open tender process, in accordance with state government legislation.

Local Buy will undertake tendering activities for an initial two-year period on behalf of Council and provide exclusive use of any contracts and panels to Council.

“Value for money will remain a key priority in tender evaluations as we continue to improve Council’s efficiency,” Cr Williams said.

“Studies conducted with other Councils show the true cost of running a tender process internally can range from $15,000 to over $60,000 per tender, depending on the complexity of the arrangement.

“The alliance with Local Buy is expected to provide significant efficiencies to Council’s processes.”
Local Buy will work closely with Council to develop contract conditions which will have regard to Council’s internal policiesand workplace health and safety requirements during any tendering to ensure all statutory and local compliance obligations are met.

For more information, view the Policies page on our website or contact Council on 3829 8999.