Local Suppliers Given A Major Boost

Toowoomba Regional Council is adopting an amendment to its Procurement Policy giving extra price weighting to local suppliers when engaged by Council to supply goods or services.

TRC Finance and Business Strategy Chair Cr Geoff McDonald said supporting local businesses and regional areas remains a priority and the changes to the policy ensured local businesses were given the best chance possible to work with Council.

This is a great result for our entire community,  and stems from the work we did earlier this year when the Coronavirus pandemic first impacted our Region,” he said.

At that time Council made a decision to assist local suppliers wherever possible with its procurement and purchasing activities and adoption of the policy not only cements these changes, but extends on those principles, to provide further incentive for our local suppliers.

• As part of the changes to the Procurement Policy, Council will:Seek quotes from only local suppliers for procurement under $200,000 (where possible);
  Give local suppliers an additional 10% price variance for purchases up to $50,000;
  Give local suppliers an additional 5% price variance for purchases greater than $50,000 but less than $200,000;
  Will continue to follow the public tender or contractual arrangement exceptions contained within Local Government Regulation 2012 (Regulation) s223 to s235 for procurement with an expected value greater than $200,000.

In addition to this, Council will give a further 2% price advantage to local suppliers in regional areas (all areas inside the Toowoomba Region boundary that are outside of the Toowoomba City, i.e. postcode 4350) for anything up to $200,000,” Cr McDonald said.

Effectively this means that if a local supplier provides a quote for $44,000 and we receive another quote from outside the Region for $40,000 then we’ll be able to go with the local supplier thanks to the changes in our policy.

Council already has a target for 60% of spending locally and these amendments will go a long way to not only help us achieve this goal, but possibly surpass it.

This will provide opportunities to upskill local businesses and ensure money spent stays within the Toowoomba Region which will benefit everyone in our community,” Cr Geoff McDonald said.

Toowoomba Chamber of Commerce Chief Executive Officer Todd Rohl supported the amendments, stating, Toowoomba Regional Council is to be congratulated on its changes to its procurement policies by increasing opportunities for local suppliers to secure work.”

The decision is a win for local small business and the local economy and demonstrates a real commitment by Council to buy and source locally.”

The changes to the policy were formally adopted at the Ordinary Meeting of Council with a review date of 31 December 2020. For further information visit www.tr.qld.gov.au or contact Council on 131 872.

Submitted by:
Brendan Steinhardt
Principal Media and Strategic Relations
Stakeholder Engagement and Communications
Toowoomba Regional Council