Local Government Finance Amendment Standard (No. 1) 1994 (Qld)

Queensland Subordinate Legislation 1994 No. 481 Local Government Act 1993 LOCAL GOVERNMENT FINANCE AMENDMENT STANDARD (No. 1) 1994 TABLE OF PROVISIONS Section Page 1 Short title . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 2 Standard amended . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 3 Amendment of s 2 (Definitions) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 4 Replacement of Pt 2, Div 4 (Contracts and tendering) . . . . . . . . . . . . . . . . 2 Division 4—Contracts and tendering 11 Exemptions to requirement to seek tenders or quotations—Act, s 400(1)(e) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 12 Preconditions for establishing a standing offer or preferred supplier arrangement . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 13 Preconditions for establishing a register of pre-qualified suppliers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3 14 Procedure for establishing purchasing arrangements . . . . . . . . . . . . 4

s1 2 s4 Local Government Finance Amendment (No. 1) No. 481, 1994 ˙ Short title 1. This standard may be cited as the Local Government Finance Amendment Standard (No. 1) 1994 . ˙ Standard amended 2. This standard amends the Local Government Finance Standard 1994 . ˙ Amendment of s 2 (Definitions) 3.(1) Section 2, definitions “preferred supplier arrangement” and “standing offer arrangement” — omit. (2) Section 2— insert — ‘ “LGA arrangement” means an arrangement— (a) entered into by the Local Government Association; and (b) that would be a purchasing arrangement if entered into by a local government; and (c) for which the procedure set out in section 14 1 has been followed by the Association as if it were a local government. “preferred supplier arrangement” for a local government means an arrangement by the local government with a supplier for the supply of goods or services under agreed pricing conditions for a stated period. “standing offer arrangement” for a local government means an arrangement to which the local government is a party with a supplier for the supply of goods or services at a fixed price for a stated period.’. ˙ Replacement of Pt 2, Div 4 (Contracts and tendering) 4. Part 2, Division 4— 1 Section 14 (Procedure for establishing purchasing arrangements).

s4 3 s4 Local Government Finance Amendment (No. 1) No. 481, 1994 omit, insert — ‘ Division 4—Contracts and tendering ˙ ‘ Exemptions to requirement to seek tenders or quotations—Act, s 400(1)(e) ‘ 11. A contract is made under an exemption to open competition if the contract is entered into— (a) under a standing offer or a preferred supplier arrangement; or (b) with a supplier from a register of pre-qualified suppliers; or (c) under an LGA arrangement. ˙ ‘ Preconditions for establishing a standing offer or preferred supplier arrangement ‘ 12. A local government may establish a standing offer or preferred supplier arrangement only if— (a) the supply of goods or services is needed in large volumes or frequently; and (b) the local government is able to obtain better value for money by aggregating demand for the goods or services needed; and (c) the goods or services needed can be stated in terms that would be well understood in the industry concerned. ˙ ‘ Preconditions for establishing a register of pre-qualified suppliers ‘ 13. A local government may establish a register of pre-qualified suppliers only if— (a) the preparation and evaluation of invitations each time the goods or services are needed would be costly; or (b) the capability or financial capacity of the supplier is critical; or (c) the goods or services supplied involve significant security considerations; or (d) a precondition of an offer to contract is compliance with defined

s4 4 s4 Local Government Finance Amendment (No. 1) No. 481, 1994 standards; or (e) the ability of local business to supply the goods or services needed by the local government needs to be ascertained or encouraged. ˙ ‘ Procedure for establishing purchasing arrangements ‘ 14.(1) If a local government proposes to establish a purchasing arrangement, it must invite persons to tender. ‘ (2) The invitation must— (a) be in the way provided for inviting tenders in section 398 of the Act; 2 and (b) state the purchasing arrangement for which the person is tendering. ‘ (3) The local government must select persons to enter a purchasing arrangement on the basis of the principles mentioned in section 395 of the Act. 3 ‘ (4) The local government must ensure there is provision for the evaluation of a purchasing arrangement including, for example, removal of a person from an arrangement because of the person’s poor performance of a contract entered into under the arrangement. ‘ (5) A local government may enter a purchasing arrangement for longer than 2 years only if it is satisfied that better value will be achieved by entering into a longer arrangement.’. 2 Section 398 (When tenders are required). 3 Section 395 (Principles governing the making of contracts).

5 Local Government Finance Amendment (No. 1) No. 481, 1994 ENDNOTES 1. Made by the Minister on 1 December 1994. 2. Notified in the Gazette on 16 December 1994. 3. Laid before the Legislative Assembly on . . . 4. The administering agency is the Department of Housing, Local Government and Planning. © State of Queensland 1994