One of the NSW Government’s drivers in its forthcoming labour hire panel is to leverage volume to achieve cost savings and efficiencies. The Government clearly aims to reduce the number of suppliers, and if this contract runs its course, companies who do not secure a place on this panel will be locked out of the NSW government market for up to five years.
An industry briefing was held on 21 July for potential suppliers for the new Contract 100 tender that consolidates the three existing labour hire panel contracts in NSW Government, including the c881 contract for IT personnel.
Commerce estimates that more than 17,000 individual placements will be involved (this is expected to grow) and the annual spend will be more than $400m. The term of Contract 100 is three years with two extension options each of one year duration.
The Government states that it aims to “significantly reduce the number of suppliers”, and expects a single price across NSW Government. It also expects complete cost transparency, and greater usage, spend and savings visibility and reporting than ever before.
Amongst the tips for suppliers provided at the pre-tender briefing was that non-price criteria will be as important as price, and that sourcing and retention capability will be highly weighted. Depth and breadth of coverage will also be well regarded.
The RFT will be released on 15 August and will close on 24 September. Implementation will commence in January 2009.
The presentation from the pre-tender briefing is available for download.