Background Factors Influencing Local Government Capital Works • Capital works procurement practices vary between State and Federal Governments Procurement: Developing a Research • 560 Local governments Agenda • Little work has been done on understanding Peter Vitartas, Marielle Flynn, Kerry local government procurement Brown & Francis D’lima • Need for competent and appropriate procurement processes Key questions Approach • What are the range of relevant factors that • Literature review contribute to procurement decisions? • Examination of local government strategic • What are the potential issues arising out of plans organisational factors when deciding on the • In‐depth interviews with General Managers procurement method for new capital works and Chief Engineers projects? • 15 Local governments of the North Coast region of NSW Findings from the Literature • Prevailing cultures • External influences • Client characteristics • Project characteristics • Monetary factors • Perceived benefits of a method • Perceived barriers towards using a certain method • Organisational issues Council Total Ballina Shire Council 175,639,200 Preliminary findings from North Coast Bellingen Shire Council 11,284,600 Byron Shire Council 32,971,996 Clarence Valley Council 82,958,694 • North Coast Councils have $880 million of Coffs Harbour City Council 44,026,110 planned capital works projects for 2010‐2014 Greater Taree Council 3,646,000 Kempsey Council 38,825,000 • Tweed Heads and Ballina Councils largest Kyogle Council 7,837,740 Lismore City Council 7,409,000 plans Mid North Coast County Council (MidCoast Water) 65,919,880 Nambucca Shire Council 35,695,700 • Water/sewerage and Public/social Port Macquarie Hastings Council 95,092,301 Richmond River County Council 22,632,800 infrastructure largest planned expenditure Richmond Valley Council 55,911,400 Rous County Council (Rous Water) 12,300,000 • Only $4.3m was reported for asset Tweed Shire Council 187,349,602 management Findings from interviews Findings from interviews • Councils differed on their procurement • Preference to outsource large projects processes • Preference to be flexible in procurement approaches • Mix of in‐house and outsourcing of project • management Funding was the main issue regarding procurement – Scale of the project • They appreciated the support of the State – Past experience through NSW Public Works but wanted to – Internal resources (skills of staff) decide on projects Findings from interviews Future directions • Councils wanted to improve procurement • Policy directions to best practice but… – Stronger role of State agencies to assist smaller Councils to achieve best practice procurement – Time and resource pressures – Provide greater flexibility in project timelines to – State funding requirements obtain innovations that save money or provide – Staff resources (recruitment) extra value – Stronger recognition that not all Councils are the same in relation to procurement practices – More support for total asset management reports Future directions • Case studies of innovative procurement practices • What is the procurement – asset Thank you. management relationship? • What effect are different State requirements having on local government procurement practices?.