Purchasing Through an LGP Panel When Pricing Isn’t Listed
LGP requests that all our LGP-approved suppliers provide a price list for the panels they operate under. These prices provide maximum ceiling rates for the products, works and services that councils purchase most frequently and can be used as a benchmark. Due to the broad scope of many panels and available offerings from suppliers, it is not practical for the price lists to be an exhaustive list of all products, works and services a supplier is able to provide under the panel.
As a result, we are often asked what a council buyer should do if the item they want to purchase isn’t shown in VendorPanel, and can they still purchase the item through the LGP panel?
The good news is that, yes you can!
If you are making a purchase of an item not specified in an LGP-approved supplier’s price list you are able to obtain one or more quotes before making the purchase from the panel.
Section 55 of the Local Government Act (the legislation pertaining to tendering) was updated a few years ago to make the availability of pricing on panels optional. Section 55, clause 3(a), which deals with the exemption to tendering when using prescribed organisations such as LGP, states:
(3) This section [Section 55] does not apply to the following contracts —
(a) subject to the regulations, a contract for the purchase of goods, materials or services specified by a person prescribed by the regulations made with another person so specified, during a period so specified and, if a rate is so specified, at a rate not exceeding the rate so specified,
This means that there is no legislative need to have a specified rate made available prior to making a purchase. You can simply go ahead and make the purchase. When determining how many quotes you require before purchasing, be guided by your own organisation’s procurement policy.
So, there you have it! There is no legislative hurdle to overcome if the item you wish to purchase isn’t listed in an LGP-approved supplier’s price list in VendorPanel.
Process for how to buy when there’s no listed price
Confirm the goods/services you need and the scope (quantity, delivery, installation, timeframes).
Request a quote from the LGP-approved supplier (and seek additional quotes from other suppliers on the panel if your procurement policy requires it).
Check value for money (e.g., compare scope, assumptions, lead times, warranties and whole-of-life costs—not just price).
Document your decision and approvals in line with your organisation’s procurement policy.
Proceed to purchase through the LGP panel in VendorPanel and keep the quote/records on file.
Remember to quote the LGP panel number on your purchase order and all other documentation between council and the supplier.
For further information, please contact your LGP Business Development Manager.
Article written by Bronwyn Challis, Head of Business Development - LGP