Joint tendering and business improvement
SHOROC manages a centralised procurement and contract management service for councils.
All SHOROC tenders are available on our e-tendering site tenderlink.com/shoroc.
This service leverages the combined purchasing power of multiple councils and also improves council productivity and the way we do business.
Current joint tenders under this service value $18.8M annually, representing 20% of the combined regional spend on materials and contracts. Councils participating in our tenders currently include Manly, Mosman, Pittwater, Warringah, Willoughby, Hornsby, Ku-ring-gai, Lane Cove, Hunters Hill and Ryde.
Joint procurement arrangements currently exist for:
- Road construction services
- Road line marking and signposting
- Traffic and safety signage equipment
- Minor works
- Stormwater maintenance and CCTV services
- Parking meter and cash collection services
- Hygienic services
- Fire services
- Air conditioner maintenance
- Plant and equipment hire
- Records archiving and storage
- Financial audit services
- Code of conduct review panel
- Environmental sustainability reporting
- Printing of rates notices and parking permits
- Vehicle and machinery tyres and fitting
This service is overseen by the Business Improvement Program Working Group and supported by the Procurement Working Group of professional staff to maximise the value of this collaboration.
Aggregating our combined spend results in savings for all councils
Savings from joint procurement are achieved through:
- increased buyer power for all councils
- improved economies of scale which can reduce suppliers’ costs
- reduced council and supplier overheads achieved by utilising standardised and centralised processes
Several joint tenders across a range of goods and services have resulted in discounts of 5%-10% being explicitly offered by suppliers if awarded contracts for multiple councils. Savings in this range are significant and can provide direct cost savings or the ability to deliver more services for councils. The SHOROC region has a total combined materials and contracts spend of $90M and this is increased significantly with the involvement of councils across Northern Sydney.
By reassessing how we do business, our councils are seeking to improve services for the community and region through increased capacity and efficiency. The SHOROC councils identified this as a priority in 2010 and SHOROC developed and implemented a program to achieve productivity gains and cost savings for councils. Collaboration with the professional officers from our member councils is central to this program.
Other collaboration and innovation initiatives exist across a range of functions and SHOROC and the professional officers of our member councils continually seek to identify new opportunities to create a better region and stronger councils.