Ensuring compliance: including the Local Buy Arrangement number on POs

Published on 03 September 2025

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As councils across Queensland enter audit season, it's more important than ever to ensure procurement practices are fully compliant with the Local Government Regulation 2012 (Qld). One key compliance requirement that is often overlooked is the inclusion of the Local Buy Arrangement Number on purchase orders, especially when engaging Local Buy suppliers outside of VendorPanel.

Local Buy: a streamlined path to compliance

Local Buy provides councils with legislatively compliant procurement Arrangements that allow them to bypass the default contracting procedures, such as obtaining multiple quotes or running full tenders. Local Buy Arrangements are recognised under Section 234 of the Regulation, offering councils a simplified and efficient way to procure goods and services while maintaining transparency and accountability.

However, engaging a Local Buy pre-qualified supplier does not automatically mean the transaction is compliant. The supplier must be clearly informed that the engagement is under a Local Buy Arrangement. This is where the Local Buy Arrangement number becomes critical.

Why the Arrangement number matters

When councils engage suppliers directly (outside of VendorPanel) they must explicitly reference the Local Buy Arrangement number on the purchase order. This ensures:

  • Suppliers are aware they are being engaged under a Local Buy Arrangement.
  • Councils can demonstrate compliance during audits.
  • Procurement records clearly reflect the use of an approved Local Buy pathway.

Without this reference, suppliers may assume the engagement is a standard commercial transaction, which could lead to non-compliance with procurement regulations and complications during audit reviews

VendorPanel vs. Direct Engagement

VendorPanel is Local Buy’s procurement platform, offering councils a secure and transparent way to issue RFQs and manage supplier engagement.  

When using VendorPanel, the system automatically tracks and documents the use of Local Buy Arrangements.

However, when councils choose to engage suppliers directly, via email or other channels, the responsibility to clearly indicate the use of Local Buy falls entirely on the council. This includes:

  • Quoting the correct Local Buy Arrangement number.
  • Ensuring the supplier understands the terms and pricing limits under the Arrangement.
  • Maintaining documentation that supports the procurement decision.

Audit Season: a time for diligence

With audits underway, councils must ensure every procurement decision aligns with the five sound contracting principles outlined in the Local Government Act 2009 (Qld):

  1. value for money,
  2. open competition,
  3. local business development,
  4. environmental protection, and
  5. ethical behaviour.

Failure to reference Local Buy appropriately can result in findings of non-compliance, reputational risk, and potential financial implications.

Final reminder

If you're engaging a Local Buy supplier outside of VendorPanel, always:

  •  Include the Local Buy Arrangement number on the purchase order,
  • Confirm the supplier understands they are being engaged under a Local Buy Arrangement,
  •  Maintain clear records for audit purposes.

Doing so ensures your procurement is compliant, transparent, and audit ready.

If you would like to attend our monthly Local Buy and VendorPanel Training Session, please check out our website: Events Calendar | Local Buy

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