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.
