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Better, faster, cheaper: making Auckland Council’s supplier spend work harder

Better, faster, cheaper: making Auckland Council’s supplier spend work harder

 

A fresh approach to procurement across the Auckland Council Group is expected to deliver better, faster, cheaper outcomes for Auckland, along with a focus on creating greater opportunities for local and diverse suppliers, and pakihi Māori.

The Budget and Performance Committee, chaired by Councillor Victoria Short, has this week endorsed the Auckland Council Group Procurement Strategy and refreshed Market-led Proposals Guidelines. 

The new procurement strategy is part of the council’s ongoing focus to ensure Aucklanders’ money is spent wisely and only for what is needed, building what lasts, and working with partners who deliver a better Auckland, now and for the future. 

Mayor Wayne Brown has long championed better, faster, cheaper procurement of council services.

“Projects do not go wrong at the end. They start wrong. We need to define the problem properly, test the alternatives, and use standard designs wherever they will do the job,” says Mayor Brown.

“I want fewer unnecessary bespoke solutions and proper measures to drive supplier performance. Suppliers should be judged on results. What they promised, what they delivered, and what it cost should count when the next contract is awarded.”

Deputy Mayor Cr Desley Simpson introduced the report and welcomed the new approach. “We want to see Aucklanders’ money go further. That begins with procurement so we get the best deal for our ratepayers. That includes ensuring the work is right-sized, competitive and will deliver for a long time,” says Deputy Mayor Simpson.

“Auckland Council Group spends around $7 billion with suppliers each year. We've done some very good things already to achieve value for money but need to make sure the expectations are consistent, which is what this strategy does.”

Councillor Victoria Short echoed their sentiments and reinforced that results would be tracked. “We have eight targets that will track how we’re performing – by 2028/2029, the goal is to have a clear record that compares spending against benefits being achieved and contracts that are more quickly awarded. We’ve got the plan, but we will be monitoring its implementation and effectiveness too.”

The committee also endorsed a new approach to receiving and evaluating market-led proposals where suppliers, iwi or community organisations have a good idea which benefits Auckland.

“This could be a new service, product or purchase of a council property, and we need a simple standard approach to consider these proposals,” says Mayor Brown.

The new approach to procurement

The Procurement Strategy and Market-Led Proposals approach shifts council purchasing from transactional procurement and upfront price to defining the need, using standard solutions (where appropriate), shaping competitive markets, and managing whole-of-life value.

It builds on the Better Value Projects initiative launched in 2025.  The strategy and market-led approach will create more strategic procurement, with increased rigour to how services and projects are planned and managed.

Council general manager of procurement services Dave Colquhoun said a coordinated, outcome-focused system will apply more rigour to all council contracting.

“This approach means increased challenging of project scope, design and delivery choices, and what will deliver the best all-round outcome. In some cases, it might be about exploring whether expenditure is necessary – or how we can get the right results that solve the problem, in a way that is effective and appropriate.”

Five simple principles will guide how Auckland Council Group buys goods and services:

  • be clear about what is needed
  • encourage strong competition
  • choose solutions that last and offer value over their full life
  • hold suppliers to account
  • use our spending to deliver wider benefits for Auckland.

The strategy also targets 10 per cent of supplier spending with locally owned and diverse suppliers and five per cent with Māori businesses.

Implementation will be phased over three years. It will see supplier performance measured consistently, shared across Auckland Council Group, and used to inform future decisions. A forward procurement pipeline will also give suppliers earlier visibility, strengthen competition, and create opportunities for local and diverse suppliers.

Read this and other stories on OurAuckland

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