Administration Rebate 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 administration fee and/or an appropriate contract management rebate 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 administration fees and/or contract management rebates 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.