Legislation

Local Government Procurement (LGP) has been prescribed under s55 of the Local Government Act 1993 (NSW), allowing councils to utilise supply arrangements coordinated by LGP without the need to go to tender in their own right. LGP therefore has the same status as NSW Procurement in having this legislative requirement.

View the Legislation

View the Local Government (General) Regulation 2005 (NSW) - Part 7 Tendering

View an extract regarding LGP's prescription from NSW Government Gazette Week 33/2006.

What is the authority of Local Government Procurement to tender on behalf of councils?

LGP has been ‘prescribed’ by the NSW State Parliament to carry out group tenders on behalf of NSW local government.  ‘Prescribed’ means LGP is named in the Local Government (General) Regulation 2005 (NSW) and as such a council does not need to go to tender if that council buys from a contract already set up by LGP. Councils can therefore procure  goods or services from LGP contracts for  values  greater than $150,000 (inclusive of GST), without the need to tender themselves.  In fact, for all but 2 of the LGP contracts they can procure up to any value.
 
Obviously they can also procure for amounts less than $150,000 without restriction from LGP contracts too.

The regulatory environment at a glance

Section 55 (3) of the Local Government Act 1993 (NSW) provides a number of exemptions from the need for councils to call for tenders for goods and services. View how LGP has met the requirements under Section 55(3) of the Local Government Act 1993 (NSW).

One of the exemptions includes if the council purchases from contracts put out by NSW Procurement. 

As a result of the National Competition Policy Review's Local Government Amendment Bill of 2003, the Local Government Act 1993 (NSW) was amended with the inclusion of a new clause within Section 55 (3).

After a somewhat lengthy and complicated process between LGNSW and Office of Local Government, Department of Premier and Cabinet (OLG), LGP has been prescribed under this clause.

LGP has been gazetted, it stands in the Act equivalent to NSW Procurement. That is, LGP is a bulk purchasing organisation as prescribed by the Local Government Act 1993 (NSW).

In short, this means that councils are able to buy - if they so choose - from LGP contracts in the same way councils can buy off NSW Procurement contracts without any further need to go to tender.