Explained: How TRC will give local suppliers more work

LOCAL suppliers will be even more competitive in bidding for TRC tenders, after the council voted to strengthen its procurement policy amid COVID-19.

Toowoomba Regional Council councillors Kerry Shine, Mayor Paul Antonio, and Geoff McDonald discuss the council's adopted $10.5 million economic relief package.

LOCAL suppliers will be even more competitive in bidding for local government tenders, after the Toowoomba Regional Council voted to strengthen its procurement policy amid COVID-19.

Councillors voted at Wednesday's committee meeting to endorse changes to the council's procurement policy, with a review of the updates due by the end of the year.

Chief among the changes was the practical application of the COVID-19 economic relief package, which dictated the TRC could only seek local suppliers for tenders up to $200,000.

But council procurement principal Robyn Grey said the council would still need to seek quotations from outside sources if just one local supplier existed for a particular service, in the interests of value for money.

"What if there is only one supplier in the Toowoomba region, but we're bound by legislation and our adherence of value for money to do a price test?" she told councillors.

"We've stepped out some processes that will help our officers to understand the intent of the policy.

"Where there are only two suppliers in the local region available, a quotation must be sought from a non-local supplier, and where there are three or more local suppliers, it's necessary to seek either three or more quotes to do that competitive bidding."

Price weighting also applies for tenders, with city suppliers' quotes given a 10 per cent handicap for jobs under $50,000, with regional companies also given an extra two per cent on top.

"If a non-local supplier offers $40,000 in quotations, a local supplier may offer $44,000 and a regional supplier may offer $44,800, and for all intents and purposes those prices are equal," she said.

"When we go into a quotation process that is over $50,000, that price advantage reduces to five per cent and those examples are there.

"For $150,000 purchase from a non-local, a regional supplier may offer $160,650 and it's equal to $150,000 for that evaluation process."

The council has made local procurement a focus in recent years, with figures putting the ratio of work going to Toowoomba region suppliers at 60 per cent for March.

Mayor Paul Antonio said the move was a positive step in light of the coronavirus.

"The policy we've developed makes me feel happy, because we are a local community organisation and answerable to the ratepayers of this region," he said.

"The percentage of money on a monthly basis that is spent in this community has risen and that's the very reason we worked together with the Toowoomba Second Range Crossing construction, to make sure the money was spent in this postcode."

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