May 19, 2020
Toowoomba Regional Council has made it easier for local suppliers to gain more Council business.
At Tuesday’s Ordinary meeting, Councillors adopted an amendment to the existing Procurement Policy to give extra price weighting to local suppliers of goods or services.
Cr Geoff McDonald said the changes ensured local businesses were given the best possible chance to work with Council.
“This is a great result for our entire community and stems off the work we did earlier this year when the coronavirus pandemic first impacted our region,” he said.
“At that time Council made a decision to assist local suppliers wherever possible with its procurement and purchasing activities.
“Today’s adoption of the policy not only cements these changes, but extends those principles to provide further incentive for local suppliers.”
As part of the changes to the Procurement Policy, TRC will:
- Seek quotes from only local suppliers for procurement under $200,000 (where possible)
- Give local suppliers an additional 10 per cent price variance for purchases up to $50,000
- Give local suppliers an additional 5 per cent price variance for purchases greater than $50,000 but less than $200,000
- Will continue to follow the public tender or contractual arrangement exceptions contained within Local Government Regulation 2012 (Regulation) s223 to s235 for procurement with an expected value greater than $200,000
“In addition to this, Council will give a further 2 per cent price advantage to local suppliers in regional areas (ie. all areas inside the Toowoomba Region boundary that are outside of Toowoomba City) for anything up to $200,000,” Cr McDonald said.
“Effectively this means that if a local supplier provides a quote for $44,000 and we receive another quote from outside the region for $40,000, we’ll be able to go with the local supplier thanks to the changes in our policy.”
Cr McDonald said TRC already has a target for 60 per cent of spending locally.
Toowoomba Chamber of Commerce Chief Executive Officer Todd Rohl supported the amendments.
“Toowoomba Regional Council is to be congratulated on its changes to its procurement policies by increasing opportunities for local suppliers to secure work,” Mr Rohl said.
“The decision is a win for local small business and the local economy and demonstrates a real commitment by Council to buy and source locally.”
The changes to the policy will be reviewed on December 31.