Agenda item

CT7110 PA Recruitment, Training & Associated Services

Minutes:

SUMMARY

This paper has two objectives:

1.         The primary objective is to seek Council endorsement to extend, via a Procurement Australia (PA) sourced contract, our existing relationship with Comensura (a labour hire agency brokerage firm, explained in detail below); and

2.         This being the second time Council has considered the use of PA contract No. 2312-0618 for Recruitment, Training & Associated Services (“the PA contract”), to seek a blanket approval to use the PA contract where it provides a financial advantage to the organisation to do so (“the secondary objective”).

Regarding the primary objective, the 2022-2026 Financial Plan forecasts that Council will spend between $77 million and $79 million on labour costs, per year, over the 4-year period. Most of this expense comprises the salaries and on-costs of our workforce of 870 people.

Approximately 2% of this spend (further analysed below) is a contingent workforce engaged through an employment agency for a short-term duration. For this paper, the term ‘contingent’ staff, labour or workforce means where Council engages a labour-hire company to provide one or more individuals for a short-term placement with Council; Council does not employ or in any way directly engage the individuals performing the work.

The majority of our contingent labour spend occurs on a platform called Comensura, which is explained in some detail in this paper. Council has used Comensura since 2015, via a contract procured by the Municipal Association of Victoria (MAV), which is due to expire in November 2022.

This paper recommends Council continue its use of Comensura, this time procured through the PA contract, to extend the arrangements to 31 December 2025, which is permitted under Section 108 of the Local Government Act 2020 (Vic) and Council’s Procurement Policy.

 

Moved: Cr Eastham

Seconded: Cr Fullagar

That

1.         Council accepts the Procurement Australia tender recommendation for Recruitment, Training & Associated Services (Contract No. 2312-0618):

(a)      Initially until 31 December 2023; and

(b)      2 one-year extension periods expiring 31 December 2025, subject to recommendations by Procurement Australia, and recommendation (2) (below).

2.         Council acceptance is subject to contract evaluation (including overall contract spend analysis) by the Director Corporate Services (which will occur prior to exercise of any extension options including 1 January 2024 and 1 January 2025) to determine if further Council endorsement is recommended for extensions of this contract.

3.         Subject to (2) above, the Director Corporate Services be delegated authority to extend the contract term on the terms set out in the Contract and any amended terms proposed by Procurement Australia.

4.         Subject to (2) and (3) above, the Manager People & Culture be delegated authority to sign any contract documents.

5.         Council approves the ongoing engagement of Comensura Pty Ltd under the Procurement Australia Contract No. 2312-0618, with an estimated annual spend of approximately $1.5 million per year (incl. GST).

6.         The confidential attachments to this report remain confidential indefinitely as they relate to matters specified under section 3(1) (g)(i), (g) (ii) of the Local Government Act 2020.

The motion was carried unanimously.

 

Supporting documents: