Management Fee

LGA Procurement establishes and manages a wide range of preferred supplier panels that provide councils and local government entities with excellent value, efficiency and probity gains when used correctly.

All preferred suppliers pay a small management fee to LGA Procurement. This is fixed for the term of the contract.

As a fully self-funded entity of the Local Government Association of SA, LGA Procurement uses income derived from the administration fee to provide:

  • Ongoing development of tendering opportunities.
  • Monitoring and management of contract use by councils across the life of the contract.
  • Negotiation of issues that councils or suppliers may have to reach a satisfactory resolution, including obtaining legal advice if required.
  • Marketing and promotion of the contracts.
  • Council and supplier visits and providing ad hoc advice.
  • Training of council and supplier staff.

There are significant benefits in recognition as a preferred supplier, and suppliers are increasingly expressing their preference to engage with councils as part of a procurement panel.

Under the terms and conditions of each contract, suppliers are not permitted to pass on costs relating to the management fee to LGA Procurement to councils procuring through an LGA Procurement arrangement. Such costs are to be regarded as the supplier’s cost for doing business with councils under a whole-of-sector arrangement.