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ARTICLE · 12 APRIL 2018

Update: Victorian local government reform and procurement changes

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These proposed changes in procurement governance recognise different sizes and varied needs of Victorian local councils.

AustraliaGovernment, Public Sector
Scott Alden
Scott Alden
Joseph Monaghan
Joseph Monaghan
Joshua Clark
Joshua Clark
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Progress of the reforms

The Victorian Government released to the public on 12 December 2017 its exposure draft to the Local Government Bill (the Bill). Submissions closed on Friday 16 March 2018 at 5pm. Once finalised, the Bill is expected to be introduced into Parliament by mid-2018.

Procurement under the current Act

Procurement by local councils in Victoria is currently governed by s 186 ('Restriction on power to enter into contracts') and s 186A ('Procurement policy') of the Local Government Act 1989 (Vic) (the Act). These provisions set a threshold of $100,000 above which all councils must comply with certain formalities in a public tendering process. Councils must also prepare, maintain and comply with their own procurement policies. Local Government Victoria (a State body) also updated its "Victorian Local Government Best Practice Procurement Guidelines" (Guidelines) in 2013 to assist council staff and those in the field of local government procurement.

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