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Delivering Value and Gaining Benefits

 

Articulate your value

Sharpen your value proposition

Your competitive advantage is what sets you apart. Thinking about how your business can benefit your audience/clients/customers/community of interest will help you to pinpoint your competitive advantage.  A strong competitive advantage:

  • reflects the competitive strength of your business (e.g. quality of service)
  • is preferably, but not necessarily, unique
  • is clear and simple
  • may change over time as competitors gain market share/position
  • must be supported by honest and ongoing market research
  • must highlight the benefits rather than boast of your business itself.

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Value for money from a social perspective

Social benefits refer to how Queensland Government spending might be used to support social priorities, such as employment opportunities for vulnerable Queenslanders. By leveraging even a small slice of the Queensland Government’s spend to support social priorities, communities across the state can benefit. Social benefit (or social value) is described as - the positive impacts on people, places or communities generated through procurement practices. 

While some social benefits, such as greater social justice, cannot easily be quantified, social and economic participation is a key indicator of the overall health and vibrancy of a community. 

More information about the Queensland Government's Procurement Strategy is online.

 

Be partner ready

Collaborating with other businesses can be a key tactic for government tendering, particularly for small and medium-sized businesses.

It has the benefit of combining resources, knowledge and skills, which can increase your chances of winning a bid, but it also carries risks. You will need to carefully weigh the pros and cons of collaboration to see if it is right for your business. The most common approaches to working with other businesses are subcontracting and working in a consortium or joint venture.

Arts Queensland strongly encourages providers to develop partnerships and/or to develop a consortia-based approach, to ensure the service specification is adequately addressed.

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What is a consortia?

A consortia is a group of companies working collaboratively to deliver services as specified by Government. Consortia providers bring diverse experience and knowledge (arts and non-arts) and a strengthened offering by working together to achieve the Key Deliverables, including growing investment, partnerships and capacity building opportunities.

It is recommended that consortia providers confirm their roles and contributions as support material through letters of agreement, letters of confirmation, memorandums of understanding, or partnership agreements.

If submitting an EOI/RTQ/ITO as a consortia, providers must nominate one legally constituted company as the principal company. The principal company will take legal and financial responsibility for the terms of the Service Agreement (if the provider is successful).

Further information on how to make a collaborative submission is available on the Business Queensland website.

 

Deliver Local Benefits

Putting Queenslanders first when securing value for money

Value for money is the primary principle of the Queensland Procurement Policy (QPP).

Under this principle the Queensland Government is committed to:

  • pursuing government targets through procurement
  • selecting the option that provides best value for money outcomes, pursuing economic, environmental and social objectives as well as price.
  • deploying the most appropriate strategies to deliver the best procurement outcomes.

The local benefits test is intended to ensure economic benefits flow to local communities, with a focus on jobs for Queenslanders. This might include creating new jobs, ensuring sustainability of existing local jobs, or upskilling local workforces and creating new opportunities in regional areas.

The local area is defined as being within a 125 kilometre radius of where the procured good and/or service is to be supplied. If required, application of the test can be extended to the local region or Queensland (e.g. the test could be extended to cover all of Queensland for a whole-of-government supply arrangement).

The type of benefits you, as a supplier to Government, can bring will vary from procurement to procurement, and may include:

  • engagement of suppliers who employ a local workforce
  • training and upskilling of a local workforce, and increasing opportunities for local apprentices
  • using local businesses, such as sub-contractors and manufacturers, along with other local suppliers within the supply chain who use a local workforce
  • engaging with particular types of suppliers, such as small and medium sized enterprises (SMEs), Aboriginal businesses or Torres Strait Islander businesses, or social enterprises who use a local workforce.

 

Innovate Queensland

Innovation can help your business adapt and evolve in order to survive and grow. In your business, innovation may be driven by the need to solve a problem or capture a new opportunity.

Building a culture that supports innovation can help your business stay relevant, meet challenges, and stay competitive. Innovation is not just about new ideas, but also about new ways of applying ideas.

 

Benefits Realisation

A benefit is: a measurable improvement resulting from an investment perceived as an advantage by one or more stakeholders.

Benefits must be aligned to strategic goals and performance measures.

Benefits management is: the identification, definition, monitoring, optimisation and realisation of benefits.

Baselining the existing situation is essential so that benefits realisation can be measured and reported.

Procurement can assist in advancing government objectives by providing opportunities that support and drive genuine employment for all Queenslanders.

In selecting the type of benefits to be pursued, be mindful that a local benefit should also be one that can be readily identified, evaluated, measured and reported on by the supplier.

Key performance indicators can also be set that are related to the local benefits to be derived. These can then be monitored as part of the contract management process.

Benefits are dynamic and need to be regularly reviewed and updated.

Why Manage Benefits?

The effective management of benefits will support:

  • investment decision-making
  • optimisation of the value generated from existing resources and new investments
  • increased efficiency and effectiveness of the investment management system
  • investments to achieve their intended investment objectives
  • effective management of investment within the fiscal strategy and priorities.

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