Local Government Procurement

Message from the CEO – June 2023

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Message from the CEO – June 2023

As we move towards closing out FY23, LGP would like to thank the level of unprecedented support provided by councils and suppliers under our contracts.  Below are some key statistics that outline how strong that support has been:

Over the last 5 years we can see:
  • $4b in spend through all contracts
  • $1b in spend through the LGP Roads contract
  • $400+ in spend under the HR and the Electricity contracts
  • $5m in rebates paid to councils, ROCs and JOs
In FY23 LGP annual contract spend by our councils show:
  • We are projecting a record $850m in spend under all LGP contracts
  • The Roads Contract will exceed $250m for the first time, up $50m on FY22
  • Minor & Major Works contract to pass $55m

Outside of the hard work from our Business Development Managers, Marketing, Category Managers all the team at LGP, we are seeing global supply chains now freeing up to allow orders to be processed where they were previously delayed.  We are also heavily involved in supporting council capital works projects and their flood recovery activity.  Equally we are working hard to make sure spend under LGP contracts are being declared by councils in every instance, and then reported to us by suppliers, helping us capture and share this data.

Our purpose is to create and drive value for local communities.  We are very grateful for this strong growth and terrific support, looking ahead our focus is to stay close to our councils and continue to position procurement to support the current and future needs of their communities.

Release 2 of our Procurement Capability Grant Program has closed, and we are now in the process of evaluating 68 submissions valued at $1.1m.  Pleasingly we have $95,000 to distribute into the sector, sadly not every project can be supported.  We expect outcomes to be communicated in late June and for those who do miss out we encourage you to return for Release 3 coming later this year.

Our first release of the Grant Program is supporting 10 projects, we have already delivered training outcomes, modern slavery supply chain risk assessments, and technology implementations.  We are very proud of this unique initiative and look forward to continue investing in the procurement capability across our sector.

As all our councils will be aware, your FY23 Annual Report requires a statement in relation to the steps your council has taken to detect and prevent modern slavery in the supplier chains of their suppliers.  Please be reminded, LGP conducts annual modern slavery risk assessments across all our 1,000+ suppliers on contract.

If you need some help in preparing your annual report modern slavery statement, or would like to engage the various services and solutions LGP has in relation to modern slavery to include that commitment in your annual report, please reach out to your Business Development Manager as soon as you can.  Please Click Here to find out more.

Finally, our 2023 events program rolls on.  We have just completed our Dubbo Network meeting in early June. We now work towards our Sydney Procurement (26th July) and the Sydney Engineering Network (27th July) Meetings at the Grace Hotel.  In August we visit Goulburn (10th) and Port Macquarie (24th) ahead of the 2023 LGP Annual Conference (17th & 18th October).  You can find all our 2023 event details on the LGP website, click here.

Thank you.

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