Local Government Regulation 2012

This section applies to a medium-sized contractual arrangement or large-sized contractual arrangement for goods or services if a local government—

needs the goods or services—

in large volumes; or

frequently; and

is able to obtain better value for money by accumulating the demand for the goods or services; and

is able to describe the goods or services in terms that would be well understood in the relevant industry.

A local government may enter into a contract for the goods or services without first inviting written quotes or tenders if the contract is entered into with a preferred supplier under a preferred supplier arrangement that is made in compliance with subsections (3) to (9).

A local government must invite persons to tender for a preferred supplier arrangement.

The invitation to tender for a preferred supplier arrangement must—

be published on the local government’s website for at least 21 days; and

allow written tenders to be given to the local government while the invitation is published on the website; and

describe the terms of the preferred supplier arrangement.

Also, the local government must take all reasonable steps to publish the invitation in another way to notify the public about the tender process.

When selecting a person to be a preferred supplier under a preferred supplier arrangement, the local government must have regard to the sound contracting principles.

The local government must ensure the terms of the preferred supplier arrangement allow the contract to be cancelled for the poor performance of the preferred supplier.

A preferred supplier arrangement may be entered into for a term of more than 2 years only if the local government is satisfied the longer term will result in better value for the local government.

For subsection (8), the term of a preferred supplier arrangement includes any period provided for under the arrangement by which the term of the arrangement can be extended.