Building Procurement Capability: From Policy to Practice
Across NSW local government, procurement frameworks have matured. Policies align with the Local Government Act, the Local Government (General) Regulation, and the IP&R Framework. Sustainability, local participation and governance principles are embedded on paper.
But many councils are asking the same question:
Why does strategic procurement still feel difficult in practice?
The answer is capability.
Policy reform is only the first step. Strategic procurement is delivered by confident staff applying clear governance, practical tools and consistent contract management across the lifecycle.
The Gap Between Framework and Delivery
Common challenges include:
- Policies that are technically sound but difficult to apply
- Inconsistent use of templates
- Procurement treated as a gatekeeper rather than a strategic partner
- Contract management overlooked once the contract is signed
The issue is not commitment — it is translation.
Councils must move from policy compliance to organisational capability.
What Procurement Capability Actually Looks Like
True capability combines:
✔ Clear delegations and decision-making pathways
✔ Practical templates that embed policy principles
✔ Role-based training (not generic theory)
✔ Structured contract management processes
✔ Data and reporting to measure performance
When these elements align, procurement becomes a strategic enabler — not an administrative checkpoint.
Why Contract Management Is the Missing Piece
Many councils run robust tender processes but lose value during delivery.
Capability maturity means:
- Monitoring KPIs
- Running structured supplier performance reviews
- Managing variations consistently
- Capturing lessons learned
- Reporting on measurable outcomes
Value for money is realised during contract performance — not just at evaluation.
A Simple Maturity Lens
Councils typically move through four stages:
- Compliance focused
- Structured and standardised
- Integrated with IP&R planning
- Strategic and data-driven
The transition from Stage 2 to Stage 4 is a capability journey — not a policy rewrite.
Practical First Steps
- Conduct a procurement capability diagnostic
- Standardise core templates and contract suites
- Deliver role-based procurement training
- Introduce contract management dashboards
- Establish governance oversight for high-risk procurements
Small structural improvements create long-term strategic impact.
Why This Matters
Procurement is one of the largest levers councils hold to drive:
- Local economic development
- Sustainability and ESG outcomes
- Regional resilience
- Governance and public trust
Those outcomes are not delivered through policy alone.
They are delivered by capable people, applying structured systems, with confidence.
At Muscat Tanzer, we work with NSW councils to move from procurement as process to procurement as performance — strengthening governance and delivering measurable community benefit.
If you would like to discuss procurement capability uplift in your council, we would be pleased to assist.
Paul Muscat
Director
Muscat Tanzer
