Council aims to deliver savings through new Corporate Procurement Policy

Redland City Council has formally adopted its new Corporate Procurement Policy aimed at saving money and supporting local businesses through better purchasing and project delivery processes.

Mayor Karen Williams said the policy was a continuing initiative which set out Council’s framework for procurement and contracting.

“The new Corporate Procurement Policy streamlines our internal authorising processes and ensures the efficient and timely delivery of Council’s capital works, operational and service delivery programs,” she said.

“It continues our strategic approach to procurement, which needs to be agile in response to 18 months of COVID-19 disruptions, including increased demand in the building industry and disruptions in supply of mechanical and computer equipment.

“The policy also aims to support opportunities for local businesses.”

Cr Williams said Council spent about $140 million through its procurement activity each year on goods, services and work.

“Over the past six to 18 months Council has transitioned its procurement activity to use legislated Strategic Contracting Procedures,” she said.

“This model allows us to negotiate bulk buying rates and research into innovative and continuous improvement initiatives, which is particularly relevant as Council supports the broader community and economic response and recovery from the COVID-19 pandemic.”

Cr Williams said that, by adopting the policy, Council had also supported an increase in the CEO contract delegation from $2 million to $10 million.

“This increase is considered reasonable given the CEO, on behalf of Council, is responsible for managing $2.88 billion in assets and delivering a budget of $327 million this financial year.

“It will also facilitate bundled and bulk buying contracts while streamlining approval processes, ultimately strengthening our focus on community services.”

At today’s general meeting, Council also adopted its Annual Contracting Plan 2021-22, which details the goods, services and work to be procured and the disposal of assets by Council consistent with its budget.