Procurement in Local Government
What is Procurement?
Procurement is about more than just buying things. It involves achieving best value for Council and ratepayers, as well as developing good working relationships with suppliers in a fair and transparent way. Council operates under the NSW Local Government Act 1993 and is required to follow specific rules set down by State and Local Government, and also has to adhere to its own Code of Conduct, Procurement policy and Tendering policy.
The Local Government Act
All Councils in NSW are subject to the Local Government Act 1993 (The Act) and section 55 of The Act states that purchases of goods and services above $150,000 inclusive of GST must go to public tender. This can be quite a lengthy and involved process. There are certain conditions however which may exempt councils from adhering to the procurement provisions of The Act, including emergency situations (e.g. bushfires) or, a council may purchase from State and/or Local Government contracts that have been tendered by prescribed bodies. Kogarah City Council also supports the SSROC (Southern Sydney Regional Organisation of Councils) in all of their collaborative projects where Council can measure the benefits.
As part of the requirements of The Act, each council is required to develop its own set of rules for buying goods and services, called a Procurement Policy. The purpose of the Procurement Policy is to ensure a standard process is followed across the council and to ensure that probity, transparency and ethical behaviour is demonstrated at all times. Kogarah City Council aims to achieve best value in the interests of rate payers and has set benchmarks that require three separate quotes be obtained for purchases between $1,000 and $150,000. Council’s Procurement Policy can be viewed here.
Our community rightly expects a high standard of governance and ethical behaviour from all levels of government. Council takes any suggestion of anti-competitive, collusive, dishonest or corrupt behaviour very seriously and all our suppliers are expected to maintain the highest standards of conduct and behaviour. Kogarah City Council has a Code of Conduct which outlines the conduct expected to be shown by its staff, including rules around receiving gifts and/or other benefits. Please refer to the Gifts and Benefits Policy.