Purchasing Update - Volume 69 October 2007
Procurement Reforms to get underway across Agencies
An implementation team from the Department of Public Works is about to start rolling out the recommendations of a major review into State Government procurement.
The start of the implementation process follows the tabling of the Service Delivery and Performance Commission (SDPC) report, Review of Purchasing and Logistics in the Queensland Government, in State Parliament in August 2007.
The Commission's report represents a major opportunity for the Government to reshape the role of procurement in delivering improved services to stakeholders and provides clear direction for the future.
The SDPC proposed a significant agenda for change in procurement governance, practices and associated business systems.
The Commission's report recommended a strengthening of governance arrangements for public sector procurement, greater coordination of common procurement requirements, and greater accountability for agency-specific procurement by Accountable Officers.
Its key recommendations include the establishment of a Procurement Board of Management, with representation by Deputy CEOs from several government departments, and the formation of a Queensland Government Chief Procurement Office (QGCPO) within the Department of Public Works.
The QGCPO's role will include working with agencies to build and maintain procurement capabilities, leading the development of whole-of-Government procurement policy and best practices, and setting up and managing common-use supply arrangements.
In addition, the QGCPO will have a strong role in the design of the whole-of-Government procurement solution associated with the Government’s standard financial system, SAP, and in leading the whole-of-Government reform in warehousing and distribution.
Agencies are required to review their procurement functions as part of the strategic planning cycle, to ensure sufficient capability and leadership by a suitably-skilled and experienced professional. The QGCPO will assist agencies to build and maintain their procurement capability.
An Implementation Group, set up within the Department of Public Works, will work closely with agencies to identify how best to carry out the Commission's recommendations.
A work program is being developed to help deliver the report's recommendations, and initial consultation with agencies and other stakeholders is being progressed as part of explaining the recommendations and their likely effects.
The SDPC review is set to transform the way the State Government delivers procurement services, providing an even better process for all stakeholders, including agencies and supplier groups.
In 2006-07 the Queensland Government Budget provides for an expenditure of $6 billion on supplies and services and a further $4.5 billion on capital works.
Improved procurement practices are conservatively estimated to deliver efficiencies potentially worth more than $486 million a year, through better organisation, management and skilling of the procurement function across Government.
It is expected to take several years to fully implement all of the proposed changes.
Queensland Government employees potentially affected by the review recommendations should be aware that:
- all permanent Queensland Government employees have secure employment;
- people will not be disadvantaged in terms of current wages and terms and conditions of employment;
- all temporary employees will have existing contractual conditions honoured;
- the process for identifying and transitioning affected people will be transparent and equitable;
- people will be involved in the design of their new work; and
- staff will be supported through the change process
A copy of the SDPC report is available at the
Commission's website.
The Implementation Group's Director, Tom Murphy, can be contacted by email at:
procurementandlogistics@qp.qld.gov.au.
Bad Procurement Practices
A recent complaint from a supplier about a number of agencies has identified a bad procurement practice with potential serious consequences.
The complaint alleges that some government agencies are inviting tenders and through poor planning, under estimating the cost of the purchases, this in turn results in insufficient funds being allocated and the agency then not proceeding with the procurement to a contract. An even more serious concern is that agencies are using the tender process for estimate purposes.
Responding to a tender can be a costly exercise for companies in terms of time, hours/wages, networking, materials costing, other resources and lost opportunity for other work. The more complex the tender, the higher the cost will be to potential tenderers.
When tenders are invited, companies make a commercial decision whether to tender based on the cost of tendering and the likelihood of being successful.
Market research
It is an agency's responsibility to conduct an effective market analysis to gauge potential tenderers, their capabilities, availability and the estimated cost. For big projects it may be appropriate to liaise with other government agencies, jurisdictions and the private sector for their information/experience on similar projects.
Funding
Through the agency’s budgeting process and market research, sufficient budget funds should be available prior to tenders being invited. Other tools for estimating cost are available, such as the use of quantity surveyors in the construction industry.
Plan for significant purchase
The plan for significant purchase should document all of these aspects of the procurement.
30 June 1997 – Hughes Aircraft Systems International x Airservices Australia
The Hughes case has established some fundamental principles in tendering law. In this case, it was determined that when a tender is invited there is a process ‘contract’ with the marketplace and that a contract will result when conforming tenders are received.
Litigation
If a contract does not result, then tenderers could take legal action against the agency and would likely be awarded all tendering costs.
Reduced competition
Because of the actions of some agencies, it could lead to companies declining to tender to all government agencies. In some sectors with the present booming economy this could result in no tenders being received.
Conclusion
Proper procurement planning and budgeting is the key to avoiding such problems which can have serious consequences to agencies and the government as a whole.
Government Disposals Helping out Operation Farm Clear
The Government Disposals unit of Queensland Purchasing recently assisted the Department of Primary Industries & Fisheries with an auction to dispose of the equipment used in Operation Farm Clear.
Operation Farm Clear provided assistance to the North Queensland communities adversely affected by tropical cyclone Larry.
The clearance involved co-ordinating an on site auction at the Walkamin Research Station near Mareeba of plant & equipment used in the clean up across the Atherton Tableland and the wet tropical coast.
Approximately 300 lots were put 'under the hammer' on the day. The range of goods sold ranged from sizeable items including Tractors and other agricultural machinery, Motor cycles and ATV's, Ride on Mowers and Dinghies. The smaller equipment included Winches, Shovels, Axes and an assortment of Chain Saws.
Authorised Government Auctioneer Stacey Quaid from Quaids Auctioneers in Cairns catalogued, marketed and conducted the auction held in late June.
Stacey advises "The Auction was a great success with over 300 registered bidders in attendance."
He also paid special tribute to DPI. "John Hardy from DPI was the driving force behind the auction. He was a great help to us in achieving the successful outcome."
John Hardy was equally happy with the auction result. "Quaids were very professional in their preparation and conduct of the auction and obtained the maximum prices for the goods offered."
Government Disposals Manager Paul Thomasson said that he was pleased with the outcome of the auction. "On Site auctions can be a very efficient way for agencies to sell large numbers of surplus items. They can save costs, such as transportation, which is a great benefit. If an agency has a suitable site Government Disposals can arrange for an Authorised Government Auctioneer to conduct an on-site auction."
If you want to know more about Government Disposals visit their website http://www.disposals.qld.gov.au or call them on (07) 3224 8251.
Update: The legalities of procurement, Australian Competition and Consumer Commission v. Baxter Healthcare Pty Ltd
After the Federal Court recently decided that the TPA did not apply to Baxter's conduct, because Baxter was entitled to the benefit of Crown immunity and was then appealed by the ACCC, on 28th August 2007, the High Court overturned a decision it handed down almost three decades ago that extended government immunity from competition law to private-sector companies with which government had dealings.
In a majority decision, the High Court found that the Baxter Healthcare Group was not entitled to the shield of the Crown Immunity over ACCC allegations that intravenous solution supply contracts between Baxter and the governments of NSW, South Australia, and Western Australia breached sections 46 and 47 of the Trade Practices Act, which prohibit misuse of market power and exclusive dealing.
Our Legal team is now assessing the implications of the High Court decision and the ramifications for government procurement. A further article will be prepared for the December edition of the Purchasing Update.
Finalisation of a new State Procurement Policy
The Service Delivery and Performance Commission tabled its report on purchasing and logistics in the Queensland public sector on 9 August 2007. Executive Government has accepted the Commission's recommendations for implementation, with the exception of recommendations relating to SDS which will be the subject of further consideration by the Minister for Public Works, Housing and Information & Communication Technology.
This brings us another step closer to the adoption of a revised State Purchasing Policy. The publication of the Commission's report means that the Department of Public Works can incorporate the Commission's recommendations, together with its own review recommendations, into an amended State Purchasing Policy.
The Commission supported all of the Department's recommendations made in its review of the State Purchasing Policy completed earlier this year. Some of the Commission’s recommendations were outside of the scope of the Department’s review. These included recommendations for two new procurement governance bodies:
- a Procurement Board of Management, a representative group of senior executives from across the sector. The Board will have a leadership role with regard to the management of strategic procurement and logistics functions across Queensland Government, and will assist the Director-General with significant procurement decision making;
- a Procurement Council, made up of senior procurement personnel from agencies, to provide expert advice and guidance on whole-of-government procurement and logistics strategies and initiatives.
This will result in better leadership, co-operation and collaboration in Queensland government procurement.
The Commission also recommended a change in the title of the Policy to the State Procurement Policy.
Queensland Purchasing will become the Queensland Government Chief Procurement Office (QGCPO), and will have a stronger role in:
- leading procurement planning, measurement and reporting initiatives;
- working with agencies to build and maintain procurement capabilities;
- establishing and managing common use supply arrangements; and
- designing the whole-of-government procurement solution associated with SAP.
Other Commission recommendations which affect agency procurement include:
- mechanisms to increase the profile of procurement in agencies;
- an emphasis on training and development for procurement professionals, and other staff involved in agency procurement activities;
- use of corporate procurement cards for transactions with a value of $2,000 or less ;
- tactical procurement activities to be performed by agencies, not shared service providers; and
- better access to information on procurement arrangements across government.
Recommendations were also made to enhance the procurement of capital works and ICT.
Mr Tom Murphy, Department of Public Works, will lead an implementation team for the Commission's recommendations. A copy of the report can be found at http://www.thepremier.qld.gov.au/sdpc.
As advised in the last edition of Purchasing Update, it is likely that the preferred implementation date for the revised State Purchasing Policy will be 1 January 2008.
Queensland Purchasing is continuing its review of the better purchasing guidance. The new guidance will be rolled out progressively later this year, and will be easier to search and print.
If you would like to know more about the review of the State Purchasing Policy or better purchasing guidance, please contact Megan Collins on (07) 322 42736, or email your query to SPP.Review@publicworks.qld.gov.au.
Standing Offer Arrangement (SOA) Updates
SOA 200 – Office Administrative Employment Agency Temps and Temporary & Permanent A01/A02 Entry Level Office Administrative Employees
The new SOA 200 commenced on 11 June 2007 with an expiry date of 11 June 2009.
This arrangement covers the:
Engagement of Office Administrative Employment Agency Temps
Staff employed by Employment Agencies and supplied to Government Departments/Agencies for short-term absences and/or meet urgent unforeseeable demands.
Placement of Temporary A01/A02 Entry Level Office Administrative Staff
Temporary staff employed by the Government Department/Agency for periods of over 3 months and up to twelve (12) months).
Placement of Permanent A01/A02 Entry Level Office Administrative Staff
Permanent staff employed by the Government Department/Agency.
All current SOA details including pricing are available through the Queensland Government Buyers Catalogue (QGBC). If you do not have access to the QGBC, this can be obtained via Queensland Purchasing's website.
A 'Best Practices Guide for the engagement of Agency Temps' is also available at Queensland Purchasing's website.
It is expected by the end of September 2007, information on current SOA suppliers will also be available in the form of a 'User Friendly Guide', through Queensland Purchasing's website.
Further information on the QGBC, 'Best Practices Guide' and 'User Friendly Guide' can be obtained by phoning Queensland Purchasing on (07) 3224 2661.
Increases to Standing Offer Arrangement (SOA) Rates
Office Administrative Employment Agency Temps hourly rates under the SOA will increase from 1 September 2007, due to an increase in the Clerical Employees Award - State 2002.
Government Departments/Agencies utilising the SOA should check the QGBC or contact Queensland Purchasing on (07) 3224 2661 for details of updated pricing.
SOA 250 – Salary Packaging Arrangement
Recently there have been changes made to the Salary Packaging Arrangement in relation to superannuation and the inclusion of electricity benefits for certain departments and agencies.
The changes made to the superannuation component of this Arrangement incorporate the Federal Government's legislative change from 1 July 2007 pertaining to the following:
- provision of a concessional tax rate of 15% of superannuation contributions up to a maximum of $50,000.00 per year;
- transitional arrangement applying from 2007/08 to 2011/12 allowing persons aged 50 years or over to receive up to $100,000.00 of concessionally taxed employer/salary sacrificed contributions per year;
- a person who turns 50 during that period will be able to use the transitional arrangement (i.e. a person who turns 50 on 1 January 2011 will be able to receive $100,000.00 of concessionally taxed employer/salary sacrificed contributions per year;
- the transition amount of $100,000.00 will not be indexed but the standard $50,000.00 limit will be indexed (in $5,000 increments) in line with Average Weekly Ordinary Time Earnings; and
- an employee who receives employer contributions in excess of $50,000 (or $100,000 for people aged 50 and over) will effectively be taxed on the excess contributions at the top marginal tax rate plus Medicare levy.
This Arrangement now includes the provision of salary packaging of electricity costs up to $1,333.33 (FBT-exempt) threshold amount for each 1 April to 31 March annual period. This new provision has resulted from a private ruling issued by the Australian Taxation Office and is only available to employees employed in certain department and agencies. A list of these departments and agencies can be obtained via the Department of Employment and Industrial Relations website http://www.psier.qld.gov.au/circular/docs/07/circ04-07att.pdf. Alternatively, you can contact the Salary Sacrifice Service Provider – RemServ on 1300 30 40 10.
For further information regarding the Salary Packaging Arrangement, please contact Leah Walker via email at leah.walker@qp.qld.gov.au.
Frequently Asked Questions regarding the New Government Contract for Pump Fuel with Caltex Australia
Queensland Purchasing is pleased to advise that Caltex Petroleum Australia Pty Ltd (Caltex) is the successful supplier to the Queensland Government for the provision of pump fuel. The new contract for Pump Fuel commenced on 15 June 2007 and will terminate 30 June 2010. It is important that all agency's switch across to this new whole-of-Government mandated fuel contract as soon as possible. Your agency will obtain a number of key benefits from purchasing under the new Caltex fuel contract. Some of these benefits are:
- extremely competitive contract prices;
- prices are fixed on a weekly basis;
- prices are verified and audited by Queensland Purchasing on a monthly basis to ensure that prices are accurate;
- Caltex Star Cards can be utilised at Caltex, Woolworths Plus, Ampol and Independent Fuel Supplies Service Stations;
- payment terms of accounts are 21 days from end of month of purchase; and
- fuel transaction data is available in a number of formats, free of charge, to import into Fleet and/or Finance systems.
Queensland Purchasing is currently negotiating with Caltex for additional third party sites in locations where Caltex or Star Card are currently not accepted.
To assist drivers with the transition from BP to Caltex please find below a listing of frequently asked questions:
I have received my Caltex Star Card. Who do I talk to if I have a question or problems with the card(s) I have received?
Your first point of contact should be to your Shared Service Provider or Department. A list of Shared Service Providers and Departments that continue to look after their own fuel cards is provided below:
| CorporateLink |
Joy Tahija |
Phone: (07) 3239 0426
|
| CSQ |
John Laverty |
Phone: (07) 3225 8054 |
| DETA |
Maree Tate |
Phone: (07) 3237 1249 |
| Corrective Services |
Scott Farrell |
Phone: (07) 3239 0242 |
| Partnerone/JAG |
David Mahaffy |
Phone: (07) 3239 6373 |
| Health |
Neil Staines |
Phone: (07) 3234 1123 |
| Emergency Services |
Kylie Balint |
Phone: (07) 3247 8718 |
| Police |
Greg Heskett |
Phone: (07) 3237 9115 |
| Parliamentary Services |
Stephen Ling |
Phone: (07) 3406 7387 |
| Qld Ombudsman |
Mal Seymour-Smith |
Phone: (07) 3005 7030 |
When can I commence using my Caltex Star Card?
Once your Caltex Star Card is received you can begin purchasing fuel. There is no need to activate the card as issued cards are all active.
How do I order new cards or make changes to Caltex Star Cards?
New cards can be ordered via the Caltex Online Business Centre. To use this site you need to complete an application form. This application form can be obtained via the FuelNet website. Once you have completed this form and sent it back to Caltex, you will be issued with a login and password.
Please note, when ordering new cards online you need to select the Plastic-Type '005' and not '177'.
What service stations will accept my Caltex Star Card?
Caltex Australia presently has the largest number of card accepting sites in Queensland. Caltex fuel cards are accepted at the following branded sites:
- Caltex;
- Ampol;
- Woolworths Plus; and
- IFS (Independent Fuel Supplies).
In addition, there are a number of regional independent branded service stations and some, 'white sites' (that is, 3rd party service stations) which also accept the Caltex Star Card. A list of Caltex Star Card accepting sites is available from the Caltex web site as well as the through the Queensland Purchasing fuel website, FuelNet.
Do I need to provide an odometer reading?
Yes. Under the new Fuel Contract, odometer readings are mandatory with drivers required to enter the vehicle’s odometer reading at the time of transacting the purchase for fuel and oil products. At this time, the driver will be prompted by the console operator to enter the odometer reading for the vehicle.
Please note incorrect entries such as '777' will not be accepted, and the driver will be asked to re-enter the odometer.
Do I need to sign the EFTPOS docket?
Yes. To aid in the reduction of fraudulent transactions and at the same time provide both departments and Caltex with the ability to investigate possible suspicious transactions it is a requirement for drivers to sign the EFTPOS dockets at the time of purchase.
My Caltex Star Card has been set up with a PIN number but what is my PIN number?
When your Star Card is used for the first time and if your card has been allocated a PIN number for security reasons, you will be prompted to enter your choice of a 4-8 numeric PIN number. In other words, you set the pin number the first time the card is used to purchase fuel.
Please note your fuel card should be treated as a credit card and therefore be stored in a safe place. For security reasons you should never divulge your PIN to another person.
Should you forget your pin number:
- If you have a login and access to the Caltex Online Business Centre, you will be able to access your pin number;
- Telephone the contact person within your Shared Service Provider or Agency as they will be able to assist you; or
- Contact Melissa Hollingworth from Caltex on 0411 117 607.
- After hours – you will need to find another way of paying for fuel and then during working hours refer to the dot points above.
Who do I contact within my Shared Service Provider or Agency if I have queries about my fuel account or the fuel Contract?
Your first point of contact should be to your Shared Service Provider. A list of Shared Service Providers and contacts is provided below:
| CorporateLink |
Joy Tahija |
Phone: (07) 3239 0426
|
| CSQ |
John Laverty |
Phone: (07) 3225 8054 |
| DETA |
Maree Tate |
Phone: (07) 3237 1249 |
| Corrective Services |
Scott Farrell |
Phone: (07) 3239 0242 |
| Partnerone/JAG |
David Mahaffy |
Phone: (07) 3239 6373 |
| Health |
Neil Staines |
Phone: (07) 3234 1123 |
| Emergency Services |
Kylie Balint |
Phone: (07) 3247 8718 |
| Police |
Greg Heskett |
Phone: (07) 3237 9115 |
| Parliamentary Services |
Stephen Ling |
Phone: (07) 3406 7387 |
| Qld Ombudsman |
Mal Seymour-Smith |
Phone: (07) 3005 7030 |
Now that I have my Caltex fuel card should I cancel my BP fuel card?
BP fuel cards will continue to be valid until they expire (check the expiry date on your fuel card) or are cancelled by the account holder. Queensland Purchasing suggests that drivers retain your BP fuel card until you become familiar with Caltex accepting sites in Queensland.
Drivers should also be aware of the Queensland Government’s requirement that vehicles are required to be fuelled with E10 where it is available. Therefore in some instances, where there is no Caltex E10 Star Card accepting site within reasonable proximity, you may have to retain your BP fuel card in order to purchase E10 from BP service stations in Queensland.
How do I cancel my BP fuel card?
BP fuel cards should be cancelled through your nominated Shared Service Provider or Agency contact:
| CorporateLink |
Joy Tahija |
Phone: (07) 3239 0426
|
| CSQ |
John Laverty |
Phone: (07) 3225 8054 |
| DETA |
Maree Tate |
Phone: (07) 3237 1249 |
| Corrective Services |
Scott Farrell |
Phone: (07) 3239 0242 |
| Partnerone/JAG |
David Mahaffy |
Phone: (07) 3239 6373 |
| Health |
Neil Staines |
Phone: (07) 3234 1123 |
| Emergency Services |
Kylie Balint |
Phone: (07) 3247 8718 |
| Police |
Greg Heskett |
Phone: (07) 3237 9115 |
| Parliamentary Services |
Stephen Ling |
Phone: (07) 3406 7387 |
| Qld Ombudsman |
Mal Seymour-Smith |
Phone: (07) 3005 7030 |
What do I do if I am located in an area that is not serviced by Caltex card accepting sites?
Where Caltex does not maintain a presence in your area/region, you will need to make alternative arrangements in relation to the purchase of fuel. Please email Barbara Clarke (barbara.clarke@qp.qld.gov.au) at Queensland Purchasing to advise your location details so that this information can be provided back to Caltex in relation to the possibility of future Star Card accepting sites.
Am I required to purchase E10 fuel?
As part of the Government’s plan to develop a sustainable Queensland ethanol industry, Queensland Government vehicles are required to be fuelled with E10 where it is available.
Therefore the following principles should be adhered to:
- purchase E10 from a Caltex fuel card accepting outlet where available within a reasonable proximity;
- if a Caltex fuel card accepting E10 outlet is not available then purchase E10 from another available outlet if it is within a reasonable proximity; and
- if E10 is not available, then continue to purchase unleaded fuel from a Caltex fuel card accepting outlet only.
The E10 site listing is available on the Queensland Government Marketplace website and the FuelNet website. This listing will be updated as new sites are established by the fuel suppliers.
Will QFleet's Government Garage at Colchester Street South Brisbane accept my new Caltex fuel card?
Queensland Purchasing, in consultation with QFleet is negotiating with Caltex for the installation of a Caltex card reading system at this site. Further information will be made available to Fleet Managers in the near future.
Is Car wash available under the car wash?
Yes, car wash is included under this contract. Please refer to the Caltex website in order to locate a Caltex service station that offers car wash facilities. Pricing for car wash under the contract is 5% off the merchant site pricing at the time of purchase. Please note, fuel cards are required to have car wash selected as a feature on the card in order for the card to be used for car washes. If you are unsure if your Caltex Star Card can be utilised for car wash and require this feature, you will need to contact your Shared Service Provider or Department.
How does Queensland Purchasing provide information to drivers of changes to the Fuel contract?
Queensland Purchasing manages a website called FuelNet. This website provides contractual information such as the terms and conditions, pricing, E10 information, Caltex site listing, user friendly guide and is also used to disseminate communication in relation to the current arrangement. If you are not currently registered to use FuelNet, please email Barbara Clarke at barbara.clarke@qp.qld.gov.au to obtain a login and password.
Contacts for Pump Fuel:
Queensland Purchasing
Barbara Clarke
Phone: 07 3224 7920
Email: barbara.clarke@qp.qld.gov.au
OR
Tania Palmer
Phone: 07 3235 4831
Email: tania.palmer@qp.qld.gov.au
Caltex Australia
Melissa Hollingsworth
Phone: 0411 117 607
Email: maholli@caltex.com.au
New whole-of-Government Arrangement QP-707 established for Desktop Personal Computers, Portable Computers & Servers
Queensland Purchasing is pleased to advise that a whole-of-Government Standing Offer Arrangement for the supply of Personal Computers, Portable Computers, Servers and related Services has been established.
After release of an Invitation to Offer to the market in March 2007, a new whole-of-Government Arrangement (QP-707) was finalised on 3 August 2007. Contracts have been signed with Data#3 Pty Ltd, Fujitsu Australia Pty Ltd and Dell Australia Pty Ltd for the provision of products and associated services for Corporate Desktops, Notebooks, Tablets and Servers. The Arrangement will be in place until 30 June 2010, with two (2) one (1) year extension options available.
The new Arrangement will replace nine existing arrangements and meets all of the requirements of the Government's Desktop Best Practice Framework. It is therefore important that all agencies switch across to this new whole-of-Government Arrangement as soon as possible. The arrangement does not apply to schools which have their own arrangement through the Department of Education, Training and the Arts.
QP-707 achieves a range of benefits to the Queensland Government, including, but not limited to:
- savings of $20M per annum across the sector;
- improved environmental standards;
- standardisation of hardware and service specifications
- improved State-wide service through a network of 50 regionally-based service agents;
- reduced complexity and improved collection and collation of procurement data;
- greater transparency in price and performance to client Agencies; and
- increased level of accountability of Contractors for their products and services ensuring greater competition throughout the life of the Arrangement.
For further information regarding the QP-707, please contact Greg Smyth via email at greg.smyth@qp.qld.gov.au.
Travel Management Update
Queensland Purchasing chairs the Australian Procurement Construction Council (APCC) Travel Working Group. The APCC seeks to promulgate procurement and construction best practice through the co-operation of Commonwealth, State and Territory representatives.
Queensland Purchasing recognised some time ago that the establishment of cross-jurisdictional arrangements was the best way to approach some markets, particularly when individual jurisdictions have little leverage in obtaining best value for money.
As one of the Travel Management Group initiatives, Queensland recently led a collaborative procurement project for the rental of motor vehicles which was the first of its kind for APCC. The cross-jurisdictional arrangement for Rental of Motor Vehicles not only provided financial saving but delivered significant administrative benefits such as:
- significantly lower tendering costs and risks with the use of one tender process;
- higher level of services and reporting offered by suppliers;
- administrative savings through the use of standardised reporting; and
- reduced account management costs for the supplier and jurisdictions through the adoption of standard terms and conditions.
Queensland Purchasing, through the Travel Management Unit, is again participating in another project for the procurement of International Air Travel, this time led by New South Wales having the largest expenditure. An Industry Briefing was held in Sydney on the 4 September 2007 and there was significant representation by most of the major international airlines. The project is expected to generate a lot of interest in the market and produce similar outcomes to the previous very successful car hire project.
Sustainable Tyre Practices
With water restrictions grabbing the attention of us all it reminds us of the importance of sustainability. There is a new drive towards sustainable procurement and the Queensland Government’s current purchasing priorities reinforce this issue.
SOA360 Tyres and Associated Services is one of a list of whole-of-Government SOAs that has focused on sustainable procurement issues and have highlighted several ways Government Agencies can adhere to better sustainable practices. Queensland Purchasing recommends that agencies should consider the following issues when purchasing tyres and services from SOA360:
- can retreads be used instead of new tyres;
- does the supplier have an AS/NZS ISO 14001 Environmental Management System;
- regularly perform tyre maintenance (as outlined below) to gain maximum tyre life and achieve savings;
- specify lead free weights when balancing tyres;
- ensure that non serviceable tyres are used in recycling processes to reduce landfill; and
- choose environmentally preferred products.
Details on the above arrangement can be located on the Queensland Buyers Catalogue.
Tyre maintenance tips
Air pressure
One of the most important ways you can help the environment is to get the most efficient use out of your vehicle tyres. Correct air pressure in your tyres helps in the following ways firstly, it reduces excessive wear and prolongs the life of your tyres. Modern tyres are designed to reduce anti roll resistance and fuel consumption. The better fuel consumption your vehicle attains the less fuel emissions and fewer pollutants are released into the atmosphere.
Tyre pressure should be checked when tyres are cold so where possible check the pressure before using your vehicle. Driving causes tyres to heat up and the air inside the tyres then expands which results in higher pressure.
Ensure tyre caps are secured tightly to the tyre valve. Tyre valves can be adjusted by tightening with a spanner or a specially designed dust cap. If a valve continues to leak then it will need replacing.
Nitrogen gas can be used to inflate tyres as an alternative to normal air. Nitrogen is a far more effective way to maintain correct tyre pressure. Nitrogen retains constant air pressure for a greater amount of time than normal air. If you choose to use nitrogen remember that you cannot use normal air to top up as this will nullify any advantage of nitrogen. Nitrogen is not readily available from service stations and can only be obtained from tyre dealers under the arrangement.
It is recommended that you check your tyre pressure every four (4) to six (6) weeks.
Balancing
Balancing will help ensure a smooth, vibration free ride as well as improving tyre life.
A vibration that is excessive may result in some suspension damage if the cause of the vibration is not corrected for a long period of time. As the tyre and wheel assembly is vibrating, the contact pressure of the tyre on the road varies, which can cause irregular wear and will in turn, result in premature tyre removal.
The wheels should be balanced when new tyres are fitted, any time that the tyre is removed from the rim and at regular intervals to take into account any variation in tyre balance from irregular wear.
The tyre market is always looking at ways to help the environment. The latest trend in balancing is the use of lead free weights. You should ask your tyre dealer if lead free weights are an option for your particular tyre.
Tyre alignment
Alignment of your tyres is important to prevent premature wear and save you on the cost of tyres. Badly aligned suspensions wear out tyres rapidly and are also unsafe as they affect your car’s handling. Camber and castor angles which are out, cause uneven wear on your tyres and your car is unable to track true.
When fitting new tyres a wheel alignment should be performed. It is recommended that a wheel alignment is performed after the first five (5) thousand kilometres and ten (10) thousand kilometres there after.
Tyre rotation
Tyre rotations are vital to achieving even tread wear and long tread life. Rotation is necessary because of the uneven wear characteristics of each wheel position on the vehicle.
Tyre rotation should be undertaken every five (5) thousand to eight (8) thousand kilometres.
Graduate Profiles
Amy Chen – QR Limited
Procurement Professional QR Limited Graduate, Amy Chen, discusses her new understanding of procurement, current projects, and career direction. Manager, Gerard Reinhardt also discusses the graduate program, and Amy’s journey so far.
PU: Where did you study at university, what did you study, did you enjoy your degree?
AC: I completed a Bachelor of Information Technology degree at QUT majoring in E-Commerce, and also a Master of Business degree at UQ majoring in International Business. I enjoyed the learning experiences provided by both degrees; especially international business studies, which covers a broad area of business management subjects such as marketing, human resource management, strategic management, supply chain and logistics, etc.
PU: How did you find out about the Procurement Professional graduate program?
AC: I found out about the Procurement Professional graduate program on the Queensland Government web site. There is a list of graduate programs on offer from different departments. Procurement grabbed my attention as it is relevant to what I studied at Uni and it is an area I haven’t thought of in my career plan.
PU: Why did you choose procurement as a career?
AC: While studying at University I didn’t have a clear direction as what I will do after graduation. Though I studied business, I don't really like to work in marketing or human resource management areas, and always wanted to have a career that is quite different. When I found out about the procurement graduate program, I believe this is the career for me to utilise my knowledge and skills learnt at uni, and also further develop new skills and experiences in a specific area.
PU: Describe the procurement area in the Agency you work for, what type of projects do they work on?
AC: I am participating in QR Supply Division's one year rotation program, hence I have the opportunity to work in four different teams throughout the year.
I first started in QR's Supply Division's, Business Solution team which acts as a helpdesk providing consultancy services to external and internal customers. My major responsibilities are helping customers solve problems relating to SAP system, procurement queries and outstanding invoices, and these are mainly done via telephone and e-mail. We also run daily tasks and reports in SAP system monitoring the procurement processes such as, purchase requisition errors, blocked invoices, open purchase orders, fax server errors, etc.
In my second rotation I worked in the Commercial Commodity team and the commodities I looked after are the three services: security, waste and air conditioning. I performed various tasks allocated to me by my team's Commodity Analyst and Facilitator in maintaining and monitoring the progress of contracts established with the service providers. I also worked on monthly invoices, run blocked invoice report, open purchase order report, liaise with vendors, etc.
Currently, I have just started working in the Procurement team and my major duty at the moment is setting up supply agreement in SAP system. We manage online supply agreement application in the supply agreement portal on the intranet. Before I set up an agreement, I need to review the supply agreement application form and check that all information filled in is correct and that relevant managers have granted approval.
PU: Where do you see the procurement profession heading in the future?
AC: Procurement is a key business process that contributes to achieving strategic goals for an organisation, as both public and private sectors gradually recognise the importance of procurement. Procurement officers are not just known as purchase order writers. Procurement professionals provide an important source of supply market information to businesses regarding environmental innovations that provide opportunities for cost savings, efficiency and improved quality. Environmental impact has put pressures on all businesses to move toward sustainability, and effective procurement practices can help organisations implementing sustainable development.
PU: What do you like to do outside of the office environment, any interest sports or hobbies?
AC: During my free time I like reading and watching movies. I have a one year old daughter, so she keeps me occupied most of the time.
PU: Where do you see your career path leading?
AC: I am currently taking Purchasing Certificate trainings provided by Queensland Purchasing. By accumulating my knowledge and experiences in procurement as I progress in my career path, I wish to become a professional in procurement and logistic business areas. When I finish my one year rotation program, I plan to apply for a higher position role and be more involved in core business operations.
Gerard Reinhardt, A/Manager Procurement and Contracting and QR Limited, Supply Division
PU: Describe the procurement area in your agency.
GR: The central procurement team is responsible for sourcing internal customers' requirements from the external supplier market via competitive tendering processes whilst utilising SAP system functionality.
Value for money being the determining objective for all sourcing activities.
PU: What type of work is your Procurement Graduate working on?
GR: Amy is currently learning and being mentored in the competitive tendering/quotation procedures that are utilised within this team.
Also to date Amy has proficiently implemented a significant number of SAP outline agreements which are an internal ordering mechanism that utilises the functionality of SAP.
PU: What are the organisational benefits of participating in the program?
GR: Amy's development through participation in this team will be enhanced by her understanding of customer requirements and ordering patterns, as well as tactical knowledge of market procurement lead-times for a range of products.
Louise Connors – Department of Emergency Services
Department of Emergency Services Procurement Professional Graduate, Louise Connors chats about her study with QUT, her role and career aspirations. Rod Hackett, Louise's Manager, speaks about the Department of Emergency Services procurement and the overall benefits of the graduate program.
PU: Where did you study at university, what did you study, did you enjoy your degree?
LC: I studied at QUT and completed a Bachelor of Business majoring in Public Relations and a Bachelor of Creative Industries majoring in Media Communication. I enjoyed my time at uni, but after five years I was very ready to enter the workforce.
PU: How did you find out about the Procurement Professional graduate program?
LC: I actually stumbled across the program by accident when looking through the Rockhampton newspaper for jobs. When I did a bit more research, I realised what a great opportunity this program was.
PU: Why did you choose procurement as a career?
LC: Although I loved what I studied at university, I was really unsure of what it was exactly that I wanted as a career. I knew that uni was merely a building block and the skills I learned, especially studying communication, would help me in whatever I chose. Procurement is a fast growing and extremely important business function and the opportunity to be part of something with such a growing profile with ever-present opportunities appealed to me.
PU: Describe the procurement area in the Agency you work for, what type of projects do they work on?
LC: The procurement function at Emergency Services is broken into categories of ICT, Rescue and Operational Equipment & Vehicles, Medical & Patient Care, Capital Works & Services. While most of my exposure has been to Medical & Patient Care, I have also had the opportunity to help with all sections in one way or another.
PU: Where do you see the procurement profession heading in the future?
LC: Procurement or effective procurement has been overlooked as a key aspect of an organisations success. I think that the business world is starting to realise the value of procurement. Effective procurement is vital for added value and also reduced costs to an organisation. As the function is taken more seriously as an essential part of business, I believe that the profession will see the same growth that HR did in the 1990's.
PU: What do you like to do outside of the office environment, any interests, sports or hobbies?
LC: I like to catch up with friends and enjoy playing with my dog. I am also an avid shopper which is something that my profession has actually made me more effective at.
PU: Where do you see your career path leading?
LC: With the profile of procurement on the rise, my career path could take me anywhere. I do know that it is not a dead end profession.
Rod Hackett, Chief Procurement Officer, Department of Emergency Services
PU: Describe the procurement area in your agency.
RH: The role of Acquisition Services, a unit of Business Support Services is to enhance operational capability through management of a strategic procurement function for the Department's major assets, essential supply and service contracts and the Building Capital works program. Procurement Officers are organised in teams, servicing the following commodity groups.
- capital Works;
- clothing;
- information and Communication Technology;
- medical and Patient Care; and
- rescue and Operational Equipment;
- services (including Consultancies, Contractors, Travel and Accommodation); and
- vehicles.
Acquisition Services is also responsible for the development and maintenance of Level 1 Procurement Training. Introductory Purchasing is a set of operational guidelines developed by Acquisition Services (AS) to assist officers who are involved in purchasing for goods and services which are considered low risk and low dollar value. This is the minimum level of training required for any officer who purchases goods and services on behalf of the Department.
PU: What type of work is your Procurement Graduate working on?
RH:
- placing orders for the replenishment of inventory/stock in the Department Warehouse for the three (3) operational divisions – Queensland Ambulance Service, Queensland Fire & Rescue Service and Emergency Management Queensland;
- sale of Assets through a Tender Process – Fire Appliances;
- assisting in process to establishing Standing Offer Arrangements;
- preparation of Microsoft Gantt Chart – Capital Works Forward Procurement Schedule; and
- assist in development of department procurement plans through application of 'SUPREM'.
PU: What are the organisational benefits of participating in the program?
RH: The benefits to the department by participating in the program are as follows:
- advancing the procurement profession;
- increasing the skill sets in the procurement profession; and
- transition of these skills into the public sector and workforce.
Paula Janssens – Queensland Transport
Queensland Transport Procurement Professional Graduate, Paula discusses her study background, her reason for choosing procurement, projects and vision for the future. Steve Edwards, Manager (Financial Services) talks procurement at Queensland Transport, and Paula’s graduate placement so far.
PU: Where did you study at university, what did you study, did you enjoy your degree?
PJ: I studied at the University of Southern Queensland. I studied the Bachelor of Arts with a major in Public Relations, International Relations and a minor in Tourism. I really enjoyed my time at university, I found the choice I made regarding what to study really agreed with me. I found my courses interesting, challenging and rewarding.
PU: How did you find out about the Procurement Professional graduate program?
PJ: I discovered this program on the internet while I was job hunting. I then made a point of searching for the QP display at my University Careers Day.
PU: Why did you choose procurement as a career?
PJ: I found that it was interesting and provided challenges. I thrive on learning so being that this was not my specified university field meant that I would hopefully learn about something new and be provided with challenges to expand my knowledge in another field.
PU: Describe the procurement area in the Agency you work for, what type of projects do they work on?
PJ: I work in the Strategic Procurement Field. I give recommendations on our department purchasing procedures for contractual purposes. Our area is also involved in Contract Management, Reporting, Customer Relations and Dispute Resolution.
PU: Where do you see the procurement profession heading in the future?
PJ: Environmentally sustainable procurement and sociably responsible procurement will become a large part of the procurement field's future.
PU: What do you like to do outside of the office environment, any interests, sports or hobbies?
PJ: I have many interests, hosting dinners for friends, reading, lots of reading, drawing, watching movies, old, new or in between. I have just started Yoga and have a keen interest in learning how to hang glide (maybe in the future).
PU: Where do you see your career path leading?
PJ: There is not enough room here for me to even start answering that question. There are so many opportunities….
Steve Edwards, Manager (Financial Accounting), Queensland Transport
PU: Describe the procurement area in your agency.
SE: The Procurement area is decentralised in Queensland Transport. This is due to the different characteristics of each of the divisions within the department. Finance Branch provides an overall strategic procurement advisory role to ensure compliance to departmental and whole-of-Government purchasing policies.
PU: What type of work is your Procurement Graduate working on?
SE: Paula is based in Finance Branch and therefore has a strategic focus in her activities. This includes participating in the review of Departmental Purchasing Policies, development of a Departmental Contract Management Register and participation in sourcing activities.
PU: What are the organisational benefits of participating in the program?
SE: Due to current skills shortages in the procurement and contract management areas, QT has the opportunity to develop their own resource specifically trained Departmental procedures, policies and systems.
Tanya Gillis – QBuild
QBuild Procurement Professional Graduate Tanya Gillis, shares her graduate procurement journey, study background, thoughts on procurement and aspirations for the future. Gary Martin, Procurement Capability and Procurement Manager at QBuild chats about Tanya's recent regional procurement role, and the benefits of the graduate program.
PU: Where did you study at university, what did you study, did you enjoy your degree?
TG: Seeking a challenge I moved from Queensland to Melbourne to study at Swinburne University Of Technology and completed a Bachelor of Business majoring in Management and Tourism. The reason for choosing two contrasting majors allowed for a greater exposure and provided me with a greater knowledge base. Although at times I did find the management subjects quiet theoretical and bland, the course in general was really interesting and it was a terrific learning environment.
PU: How did you find out about the Procurement Professional graduate program?
TG: I knew that working for the Government gave any individual a great opportunity to advance their career in a variety of trades, so I looked up the Queensland Government website and found the procurement professional graduate program open for offers and I applied.
PU: Why did you choose procurement as a career?
TG: After completing my degree I wasn't 100% sure which career path I wanted to take. I was working in a small scale management role but really wanted to utilise my degree in an area that interested me. Not knowing very much about procurement, initially I perceived it as a profession involving the purchase of items on the basis of gaining value for money. I grew up in Rockhampton and since shopping was a highlight, I used to budget and save. My brother always teased me about being too stringent with my money so I thought that I would fit well into this career. Since embarking in this career, however, I can see how vital procurement is to the operations of every business function. Strategic procurement can condense risk and streamline benefits back to the organisation.
PU: Describe the procurement area in the Agency you work for, what type of projects do they work on?
TG: QBuild procurement is constantly involved in State-wide building, maintenance, cleaning and horticulture projects conducted for State Government clients such as police, education and housing etc. With 12 regional offices throughout Queensland, the variety of procurement services is extensive ranging from liaising with contractors/suppliers, tendering and raising purchase orders through to managing State-wide standing offer arrangements, capability and development, policies and procedures, training and strategic procurement including analysis, KPI’s and e-procurement.
PU: Where do you see the procurement profession heading in the future?
TG: I believe that the procurement profession is going to become a vital instrument to the success of every organisation as education increases throughout the world, and becomes increasingly aware of the benefits to be derived from strategic procurement through not only operational cost reduction but strategic value adding. Practices will be refined to produce policies, procedures and technology i.e. e-procurement that will provide organisations with the cutting edge. Further investment in training and education for procurement, beginning at high schools rather than university level, is definitely the avenue for further development of talented, flexible and analytical procurement officers in the future.
PU: What do you like to do outside of the office environment, any interest sports or hobbies?
TG: I enjoy playing hockey, squash and kickboxing. I love sport - rugby league in particular - and I am a 'Queenslander' fanatic. I also enjoy travelling and I am currently possessed by the travel bug after exploring Bali.
PU: Where do you see your career path leading?
TG: In the short term I am seeking to continue gaining expose to all of the elements of procurement, including both strategic and e-procurement, and expanding my knowledge base within the public sector. In the long term I would like to progress to a managers' position within the procurement profession where I can engage in the management and motivating team members to seek better business practice.
Gary Martin, Manager Procurement Capability and Development, QBuild
PU: Describe the procurement area in your agency.
GM: Procurement in QBuild ranges from strategic direction, sourcing and policy making at head office to operational procurement functions at twelve regional offices. While our procurement focus is on construction works there is substantial procurement activity in the broader spectrum of goods and services.
PU: What type of work is your Procurement Graduate working on?
GM: We expose our graduates to the operational and hands on aspects of procurement at our regional offices before giving them greater exposure to, and involvement in, the strategic aspects. Tanya spent her first six months of the program at our busy Cannon Hill regional office and has just joined our head office team where she is assisting in the management of several State-wide SOA’s and becoming involved in new initiatives such as e-procurement.
PU: What are the organisational benefits of participating in the program?
GM: We provide our graduates with the opportunity to develop their skills and experience base, so to equip them with an ability to compete for jobs within the pubic sector at the end of the program. During this period, QBuild benefits from people with a fresh-eyed view of process and abilities to research, analyse and articulate ideas that may challenge our modus operandi and may even lead to improvements in the way we do business.
Last updated October 2007
