• Streamlining reticulated gas throughout the state

    Government Procurement has identified WA government demand for reticulated gas as an opportunity to create savings for agencies.

    A possible solution is the establishment of a whole-of-government Common Use Arrangement (CUA) to facilitate the purchase of reticulated natural and liquefied petroleum gas across the state.

    Yat San Chu, who is leading the project, said the complexity of the reticulated gas industry warrants the establishment of a CUA to simplify purchasing for agencies.

    “Agencies on regulated tariffs find it difficult to test the market to determine if savings are achievable, and we believe that negotiated terms and conditions will help to reduce risk for both suppliers and agencies,” he said.

    The CUA has a potential spend of $250 million over 10 years, and should provide greater flexibility for agencies to negotiate a range of rates and other benefits.

    Government Procurement expects the proposed CUA to deliver reduced prices and administrative efficiencies through a streamlined procurement process.

    More than 900 government sites and buildings are expected to be able to utilise the CUA.

    Some schools have already made the move off regulated tariffs and onto contract and saved between six and 10 per cent.

    In an evolving reticulated gas landscape, the proposed CUA will need to accommodate the emergence of new suppliers so it continues to meet the needs of agencies.

    If you are interested in this development, please contact Sean Quintal on 65511499 or Yat San Chu on 65511409.

    Published date: 19 February 2014