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By Michael Franzmann, Category Manager & Partner

After 7 years, the BUS259(A) Recruitment: Vendor Neutral Managed Services (Temporary Staff) contract will expire on 02 May 2024. As a result, Local Buy is expanding our service offering in this space with two new Arrangements. The LB336 Recruitment: Managed Service Providers (MSP), which is a replacement for BUS259(A), and the new LB334 Recruitment: Temporary & Labour Hire Services. Both will go-live from 03 May 2024.

The two new Arrangements have been designed to ensure Local Buy provides a suitable recruitment solution that will benefit all participating councils and other purchasers into the future.

The design of these new arrangements kicked off in early 2023 with an extensive analysis of the expiring arrangement. This included: financial performance, usage, contract performance and delivery, and issues raised by councils and other approved purchasers. To assist in this process, we surveyed the following:

  • Existing users of the arrangement;
  • Non-users of the arrangement; and
  • Recruitment agencies who are on our LB297 Recruitment: Permanent Staff arrangement, some who work as third party recruitment suppliers to the existing contractor, and most who provide contingent labour services.

Consultation also took place with a number of councils who are the biggest users of the existing arrangement to seek their feedback, gather input on improvements they would like to see in a new arrangement and to review the draft Specification document. We also contacted some of the interstate Local Government Associations to see if they would like to participate in the new arrangements, and for those who had recently undertaken a tender for similar services, to seek information about their tendering experience and share ideas.

There were two clear findings that came out of this review:

  1. Councils wanted more choice of Suppliers – the increased competition would drive service levels and create more competitive pricing; and
  2. Many councils don’t have the required volume of contingent workforce to make an MSP service a viable option for them. Currently they don’t have an option to engage temporary and labour hire staff except through the existing MSP arrangement.

After due consideration, it was identified that there was a need for two new arrangements to replace the existing BUS259(A) Recruitment: Vendor Neutral Managed Services (Temporary Staff), these being:

  • LB334 Recruitment: Temporary & Labour Hire Services - This will be a Register of Prequalified Suppliers LGA Arrangement (RPQS) for the supply of both temporary and labour hire recruitment services to councils and other approved purchasers for Queensland, Northern Territory, and Tasmania, and will form part of Local Buy’s Active Arrangements. Tender refreshes will be done quarterly to allow new suppliers the opportunity to join the arrangement during the contract term.
  • LB336 Recruitment: Managed Service Providers (MSP) – This will be a Preferred Supplier LGA Arrangement (PSA) for the supply of recruitment services through a Managed Service Provider (MSP) service to councils and other approved purchasers for Queensland, Northern Territory and Tasmania, and will not be refreshed on a quarterly basis. The tender is open for both Neutral-Vendor and Master-Vendor Managed Service Providers only. The Suppliers who best meet the tender selection criteria will be appointed to this contract.

In addition to traditional temporary recruitment solutions, we wanted to cater for recruitment services that are becoming more popular across the recruitment industry as we move into the future.

As a result, the LB336 MSP arrangement has included additional categories for Recruitment Process Outsourcing (RPO) Services and Statement of Work (SOW) Services.

Recruitment Process Outsourcing (RPO) is where an organisation outsources all or part of its recruitment function to an external service provider. This service can cover permanent, contract or contingent workforce requirements.

A Statement of Work (SOW) is a document that is used to procure deliverables from a third party. It defines details of the work to be performed and documents the working agreement between two parties: the Purchaser and the Contractor/service provider, providing a commitment on the quality and outcome of the work to be provided. SOW’s offer flexibility to employers who are looking to engage contingent workers with specific expertise to work on a specific project or perform a particular task. Once the project or task has been completed, the workers are released.

By introducing these two new arrangements, we now have more options in place that will cater for councils’ contingent workforce needs in the future. The long term contracts will also provide suppliers with future certainty, allowing them to implement long-term business planning.

Arrangement LB334 is currently OPEN FOR TENDER, closing 13th of March 2024 (2.00pm AEST).
Visit our Open Tenders page to find out more, including how to apply

Open Tenders

Arrangement LB336 has a planned commencement date of 3rd May 2024
Visit our Corporate Services and Equipment arrangements to view current Recruitment Arrangements

Corporate Services and Equipment

For more inforamtion, please reach out to Michael Franzmann: E

News (Feb 2024) New Recruitment Arrangements