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Auckland Council Group spends $7 billion with suppliers each year, and with its new approach to procurement hopes to deliver better, faster and cheaper outcomes for Auckland residents.
The Budget and Performance Committee, chaired by councillor Victoria Short, recently endorsed the Auckland Council Group Procurement Strategy and refreshed Market-led Proposals Guidelines.
Mayor Wayne Brown, a long-time advocate for “better, faster, cheaper” council services, says projects can be destined to fail from the beginning.
“Projects do not go wrong at the end, they start wrong,” he says. “We need to define the problem properly, test the alternatives, and use standard designs wherever they will do the job.”
“I want fewer unnecessary bespoke solutions and proper measures to drive supplier performance – suppliers should be judged on results,” Brown says.
Deputy Mayor Desley Simpson introduced the report and welcomes the new approach.
“We want to see Aucklanders’ money go further. That begins with procurement so we get the best deal for our ratepayers,” she says. “That includes ensuring the work is right-sized, competitive and will deliver for a long time.”
Short says council will track results closely, with eight new targets in place.
By 2028-29, council’s goal is a clear record comparing spending against the benefits achieved, alongside contracts being awarded more quickly.
Council general manager of procurement services Dave Colquhoun says a coordinated, outcome-focused system will apply more rigour to all council contracting.
“This means increased challenging of project scope, design and delivery choices, and what will deliver the best all-round outcome,” he says. “In some cases, it might be about exploring whether expenditure is necessary, or how we can get the right results that solve the problem.”
The strategy will target 10 per cent of supplier spending with locally owned and diverse suppliers and five per cent with Maori businesses.
“We need a simple standard approach to consider these proposals,” says Brown.
The strategy will roll out over three years with a pipeline that will give suppliers earlier visibility on upcoming work.
