Panel-based procurement: leading innovation and value in government

Published on 17 February 2026

Feature article by Glen Duff, General Manager

Why contemporary panel‑based procurement is leading the next wave of innovation and value in government procurement

Across local and state governments, the conversation around whole-of-government aggregator panel arrangements, like Local Buy, and the procurement rules around their use continues. Although some argue panels are now just standard procedure, real-world practice shows they’re also being used more strategically. With a big shift towards smarter policy writing to drive an increase in default and strategic panel use – stronger outcomes for government procurement are being delivered. 

Here’s the reality we’re seeing across government every day:

Panel‑based procurement isn’t the problem – it’s the answer.
It’s important to recognise that not all panels operate in the same way, with many now adopting more contemporary models. Well-designed contemporary aggregator panels are enabling greater regional focus and procurement readiness, stimulating competition, and unlocking a wave of innovation previously unseen in the public sector.

Contemporary aggregator panels are raising the bar for procurement teams.
Across Australia, government procurement teams are transforming their functions, increasing public tender thresholds and allocating more spend to trusted, contemporary aggregator panel arrangements. This change allows staff to allocate more time to strategic planning and contract management outcomes, while reducing the resources spent on navigating complex traditional go-to-market procedures.

Policy and buyer endorsement underscores the strategic value of contemporary panel-based procurement.
The policy shift is underway. Although some differing views remain, their arguments often do not withstand thorough analysis or prove compelling in practical applications. This article will examine why some default to these other pathways despite the clear advantages that panels offer.

Panels can be innovative and transformative.
Local Buy’s contemporary panels have been recognised for their impact, innovation and transformation - winning the prestigious Chartered Institute of Procurement and Supply (CIPSA) ANZ awards in 2024. This was judged by leading procurement practitioners and seasoned experts nationwide, an accolade independently affirming Local Buy’s value and effectiveness in supporting strategic procurement outcomes.

“As the sector continues to evolve, panel-based procurement stands out as a genuine enabler – delivering efficiency, flexibility, and better value.”

Let’s unpack this further...

Panels allow buyers to focus on what matters

There is sometimes a perception that panel arrangements influence behaviours and distract from essential aspects of strategic procurement, including planning, negotiation, and contract management. In fact, panel arrangements tend to strengthen these fundamental activities and frequently serve as facilitators for their effective implementation.

Panels remove repetitive, low‑value work – giving procurement teams the time and capacity to focus on:

• better planning
• deeper risk assessment

• clearer commercial structures

• improved evaluation and negotiation

• stronger contract management

• better community outcomes

Panels don’t replace judgement – they enable it.

How?

When panels are not utilised, procurement teams allocate excessive time to repeated tendering, gathering duplicate supplier data, reviewing numerous surplus submissions, and renegotiating comprehensive contract terms with each market engagement. For procurement professionals and industry stakeholders, this method proves inefficient for both buyers and suppliers, often leading to higher overall project and delivery costs – an overlooked expense that is not commonly discussed.

Using panels streamline procurement by eliminating repetitive and low-value tasks for both buyers and suppliers. This efficiency enables procurement teams to concentrate on high-priority strategic activities and project-specific objectives. By reducing unnecessary administrative burden, panels facilitate a more effective procurement process without sacrificing quality or outcomes. Suppliers also benefit from this approach, gaining a clearer pathway to deliver value and strengthen their competitive position.

Dynamic procurement makes use of panels instead of lengthy and expensive direct quote or open tender processes

Buyer needs are more dynamic than ever. Emergencies, infrastructure peaks, digital transformation, shifting community expectations – none wait for 12- 24-week tender cycles. It’s not just the time involved – the duplication and bloated procedures associated with direct quoting and open tender processes can also contribute to procurement’s negative reputation in many organisations. We estimate an average public tender process to cost on average $70k in buyer and supplier effort alone – significantly higher than quoting via a Local Buy panel.

Contemporary panels make fast, fair, competitive and defensible procurement possible through:

• immediate supplier access

• rapid RFQ processes

• pre‑qualified capability and compliance

• shortened lead times allowing more time for strategic value

Modern procurement reforms by major governments and agencies now aim to raise tender limits and mandate greater use of panels, regardless of value.

It’s not accidental – it’s a deliberate shift toward agility and improved outcomes.

Panels are driving innovation, and the industry recognises it

Innovation doesn’t come from endless expressions of interest and public tenders. It comes from testing prequalified suppliers, quicker delivery, collaboration, learning, and continuous improvement.

Contemporary panel models encourage innovation by:

• reducing administrative friction,
• enabling niche and emerging suppliers to participate,
• increasing competition,
• encouraging suppliers to differentiate through performance and ideas,
• allowing buyers to test, refine and evolve solutions

Local Buy’s contemporary panels have been recognised for their innovation and for driving transformation - winning the prestigious Chartered Institute of Procurement and Supply (CIPSA) ANZ awards in 2024, as judged by leading independent procurement experts nationwide.

Aligning consultant engagements with aggregator panel arrangements

Many consultants engaged by councils may not be fully aware of the sector-wide aggregator panel arrangements available to local government, particularly as comparable solutions are uncommon in other sectors. This presents an opportunity for councils to inform consultants of these arrangements at the outset of an engagement and encourage – or where appropriate, direct – their use.

Where consultants recommend procurement approaches outside existing aggregator panels, councils may wish to consider the rationale for those recommendations alongside the available sector options.

While alternative approaches such as direct sourcing or open‑market tenders can be appropriate in certain circumstances, they often involve:

• broader scopes
• duplication of effort
• longer procurement timeframes
• increased advisory input and internal workloads
• higher tendering, legal and contracting costs
• increased risk exposure

This is not a criticism of the consulting profession. Many consultants provide high-quality, objective advice and actively support aggregator panel arrangements that deliver value for councils and the wider local government sector. However, councils have shared examples where existing panels were not fully leveraged without a clear or logical rationale.

Understanding the context in which procurement advice is provided supports informed decision-making and helps ensure approaches align with both council objectives and sector interests.

Panel-based go-to-market strategies are often:

• more efficient and transparent
• competitive and innovative
• supportive of local participation
• simpler to justify and defend
• supportive of contract management
• better at allocating and managing risk

When consultants seek to "test the market" through direct quotes or open tenders, councils should consider whether a sector aggregator panel could deliver similar or better results more efficiently – particularly where panels already provide frequent opportunities for new suppliers to participate.

Contemporary panel arrangements such as Local Buy in QLD & NT are tendered quarterly to attract new suppliers, delivering effective market testing while supporting councils through streamlined procurement and reinvestment into the sector.

Panels strengthen local economies – not restrict them

The idea that panels “lock out” suppliers is outdated.

Contemporary panel arrangements – notably Local Buy as the best of breed model – are intentionally designed to grow capability and competition.

For example, Local Buy’s model includes:

• rolling quarterly refreshes for new suppliers

• public tendered (not simply an open registration

• dedicated local supplier and SME pathways

• council‑by‑council onboarding support

• simplified and fit-for-purpose barrier entry

• targeted categories servicing the majority of spend

Panels today increase opportunity – especially for regional businesses and SMEs that struggle to participate in large open‑market tenders.

Panels support better contract management and risk allocation

Panels help councils address one of the biggest challenges in procurement – contract management.

Panel frameworks often:

• standardise contract terms with flexibility for custom purchaser conditions

• ensure default risk allocation is pre‑negotiated

• embed consistent KPIs and performance measures

• support category‑based supplier performance

• enable proactive contract oversight

Of course, contemporary arrangements also allow the addition of council’s own purchaser conditions of contract, ensuring any delta requirement is managed.

This innovative model allows councils to focus on quality, outcomes and relationships – not the mechanics of setting up contracts from scratch.

Panel lifecycle management optimises performance

A panel is only as strong as its governance.

This is where peak-body aggregator arrangements like Local Buy stands apart.

As an example, Local Buy oversees the full lifecycle of every Arrangement, ensuring each phase aligns with contemporary requirements:

• design and development tailored to current demands
• market engagement and strategic category planning
• ongoing maintenance and supplier assistance
• quarterly update cycles
• oversight of compliance and performance
• coordinated renewal processes
• structured exit strategies

This comprehensive stewardship guarantees that panels remain up-to-date, competitive, and responsive.

Additionally, Local Buy collaborates directly with councils to refine procurement policies and establish council-specific conditions, enabling councils to fully realise the advantages of Local Buy Arrangements in a confident and compliant manner.

Final thought

Panels don’t make procurement easier to justify – they make good procurement easier to do.

They can:

• enable innovation
• grow local supplier ecosystems
• reduce administrative cost
• support timely procurement delivery
• improve risk and performance management
• achieve stronger commercial outcomes
• give councils more control, not less

The evidence is clear:

Panels aren’t constraints – they’re strategic solutions for better outcomes.

Local Buy’s sector-wide panel arrangements consistently illustrate that, when panels are appropriately designed, governed, and periodically updated, effective procurement and panel usage not only coexist but excel.

About Local Buy - proudly Queensland‑focused

Local Buy, part of the Local Government Association of Queensland (LGAQ), is the only organisation authorised under the Local Government Regulation 2012 (LGR) to establish LGA Arrangements. Fully compliant with the LGR, Local Buy mitigates risk, ensuring councils meet their obligations while setting benchmarks for innovation and procurement outcomes.

Trusted, pre-qualified and compliant

Our award-winning Arrangements provide access to over 4,800 pre-qualified suppliers across more than 55 categories and hundreds of subcategories of goods and services. Designed for Queensland and NT buyers, these Arrangements streamline procurement processes, delivering efficiency, compliance, and competitiveness while supporting local procurement priorities.

100% of profits are reinvested into councils, communities, and procurement across Queensland through sector leadership, technology, professional development, capability programs, advocacy, and partnerships – advancing procurement statewide.

Benefits of using our Arrangements

• Purpose‑built for Queensland & NT
• Trusted, pre‑qualified suppliers
• Full legislative compliance
• Strong local and regional presence
• Competitive, tendered supplier base
• New suppliers can tender quarterly
• Insurances managed and visible
• Aggregated and volume‑based value
• Pre-agreed purchaser conditions, or apply your own
• Simplifies procurement for buyers and suppliers
• Saves time, resources, and costs by avoiding public tenders
• Secure access via Unimarket (powered by VendorPanel)
• Guidance from our experienced Category and Legal teams
• CIPS ANZ Award Winner – Excellence in Procurement