The potential traps of joint procurements - don't get
caught!
Before proceeding with any joint procurement, multiple
government entities must carefully consider their proposed method
and approach to procuring the goods or services.
Governments at all levels are requiring departments, statutory
authorities and agencies, government owned corporations or local
governments to curb their budgets by reducing expenditure and by
making significant cost savings. This can raise key commercial
challenges for government entities, particularly when they are
engaging in significant procurement exercises.
There may be opportunities for different government entities
(being separate legal entities) to make significant savings by
jointly procuring goods or services. However, caution must be
exercised and the entities need to be alive to the potential
competition law implications of pursuing this course. It is clear
that the competition provisions of the Competition and Consumer
