Collaborative and Shared Procurement Models: Delivering Scale Without Losing Control

Across New South Wales, councils are facing growing pressure to deliver more with less. Rising costs, constrained budgets, skills shortages and market volatility are forcing councils to rethink how procurement is planned and delivered.

In this environment, collaborative and shared procurement models are gaining renewed attention. When designed properly, these models allow councils to achieve scale, improve market engagement and reduce duplication — without surrendering local autonomy or accountability.

Why Collaboration Matters Now

For many councils, particularly regional and smaller councils, traditional stand-alone procurement is becoming less effective. Common challenges include:

• Limited internal procurement capability
• Reduced market appetite for single-council tenders
• Price volatility and supplier risk
• Increasing governance and probity expectations

Collaborative procurement can help address these challenges by aggregating demand, sharing expertise, and strengthening negotiating power — while still operating within NSW’s legislative and probity framework.

Common Models Used by NSW Councils

NSW councils typically collaborate through:

• Lead or host council models, where one council establishes a panel or contract others can access
• Regional procurement alliances, where councils jointly plan and run procurements
• Shared services or Joint Organisations, embedding procurement within a broader regional structure

Each model offers different benefits and risks. The key is selecting a structure that matches the councils’ capability, risk appetite and service needs.

Scale Without Losing Control

The biggest concern councils raise about shared procurement is not efficiency — it is control.

Successful collaborative arrangements clearly define:

• Decision-making roles and delegations
• Opt-in and opt-out mechanisms
• Probity and conflict-management processes
• Contract ownership and management responsibilities

Strong governance ensures councils retain accountability while still capturing the benefits of collaboration.

Legal and Governance Foundations

Collaborative procurement must operate within the local government legislation, and each council’s procurement policy and IP&R framework.

Importantly, collaboration does not remove individual council responsibility. Each council remains accountable for its procurement decisions — making upfront legal and governance design critical.

From Transactional to Strategic Collaboration

The real opportunity lies in moving beyond ad-hoc joint tenders to planned, strategic collaboration, including:

• Regional procurement pipelines
• Coordinated market engagement
• Shared performance and supplier insights
• Consistent governance and contract frameworks

Done well, collaborative procurement becomes a strategic enabler — supporting resilience, capability building and regional value creation.

How Muscat Tanzer Can Help

At Muscat Tanzer, we work with NSW councils to design collaborative procurement models that are legally sound, well governed and fit for purpose. Our support spans governance frameworks, probity, contract structures and capability building — helping councils achieve scale without losing control.