Your gateway to doing business with Queensland Local Government!
On the 1st of August, Local Buy will be Activating our Local Buy LGA Arrangements. This initiative is the next step in the continuous journey of simplifying the connection for you to the purchasers across Queensland.
With over $900M/annum being spent through Local Buy Arrangements, we will be activating our Arrangements, this means you will have four opportunities throughout the year to join any Arrangement (instead of every second or third year) that is aligned to your business today and in the future.
What will Active Arrangements deliver for suppliers?
- Significantly reduced the annual administration fee from $600 (plus GST) per panel to an annual Verification Fee of $250 (plus GST) per supplier. This means it doesn’t matter whether : you are on 1 or 10 Arrangements: Should you be successfully appointed to any of the Local Buy Arrangements, the annual supplier verification fee (used to be called Administration Fee) is now $250 (excluding GST) per supplier. This is a reduction from the $600 (excluding GST), per supplier, per Arrangement.
- Made the Verification fee-free for those who need it most: If you are a small business (less than 20 FTEs and less than $2m turnover last FY), registered social enterprise, registered charity or indigenous enterprise, you will always be exempt from this yearly fee.
- Simplified Arrangement structures so purchasers can find you and your services more easily. This means more Arrangements, which make it easier for purchasers to find the category you have been appointed: This means those who buy from these agreements will be able to find the right scope and the right suppliers more easily, meaning it is easier to engage you. We do acknowledge you may now be tendering for more than one Arrangement (you only ever pay once), but we have simplified the tender process and the questions we ask. However, by simplifying the Arrangements, it makes the categories you are appointed too easier for a purchaser to find.
- Extended Arrangement terms so you don’t have to continue to be appointed every 2-3 years: To reduce the time impact for suppliers tendering, all new Arrangements will have a nine-year term (3-year blocks), this means you will not have to retender in the next nine years once appointed to an Arrangement. However, we will still be doing the things that are important to purchasers, such as checking your insurances and the applicable compliances. We will even be able to give you certification this has been complete, which you can use in any future tenders to skip those questions that get asked again and again. You also get the opportunity to update your pricing each quarter should you choose to and keep your company’s profile up to date in VendorPanel.
- Ensured we streamlined the compliance checks, providing you with a verification statement that demonstrates you meet all purchaser requirements (min): While we will still be doing the things that are important to purchasers, such as checking your insurances and the applicable compliances. This will be on an annual and a risk-based requirement. We will even be able to give you a verification statement this has been complete, which you can use in any future tenders to skip those questions which get asked again and again or can be given to a purchaser as additional support/information to your RFx.
What does this mean for you today (if I am a current supplier)? It means you are still appointed to your current Arrangements and still visible to all purchasers. You do not have to do anything unless you would like to tender for an additional Arrangement or category.
Won’t more suppliers mean fewer opportunities? We understand it is easy to think that. However, purchasers have told us they need Arrangements that have a diverse range of their local suppliers to be able to increase the opportunities they put through. Local Buy is continuing to actively champion on your behalf increased use by current and new purchasers. We have dedicated resources to support you and focus on helping you connect with multiple purchasers. These resources will be accountable for assisting current suppliers in understanding what it means to be on an Arrangement and how to get the most out of being a supplier.
We will be continuing to connect with your teams about what this change means, however in the interim should you or your team have any questions please reach out or visit our micro-site outlining the changes website or connect with Audrey in the North and Liz in the South.