Home' Australian Ageing Agenda : AAA Jan-Feb 2017 Contents ‘We need to be able
MICHAEL HARDGRAVE, procurement and contract manager for Goodwin Aged
Care Services, answers our questions on aged care procurement.
What are the main areas you
procure and are responsible for?
I PROCURE food and beverage,
medical supplies, motor vehicles, waste
management, stationar y supplies, gas
and electricity, medical gas and water
supply to name a few. We also outsource
contracts including facilities management,
cleaning, chemicals, catering, care
equipment, sub-contractor ser vices
including – gardening ser vices, nurse call
systems, air conditioning, legal, property
valuations, ad hoc maintenance, fire and
security ser vices and ICT.
How many facilities, residents and staff
are within your procurement remit?
Goodwin has four residential care facilities
comprising approximately 350 beds and
including onsite commercial kitchens. We
also have 600 independent living units,
with one apartment complex in the final stage of
construction and another major redevelopment
coming soon. Two of the independent living villages
also include commercial, licensed cafes. Goodwin
also provides support for around 700 home care
clients and runs three day clubs at external sites.
We are one of the ACT’s largest non-government
employers, with around 530 employees.
Which areas of operations do you outsource
and which areas are covered in-house?
Catering and cleaning is outsourced at two of our
four care facilities; facilities management and asset
management are currently outsourced. Goodwin
also outsources part of its laundry ser vices, while
the remainder is serviced in-house. The lifestyle
clubhouses are run in-house. Two have licenced
cafes, catering for breakfast and lunch, plus functions.
What are the key procurement challenges
your organisation is facing?
One of the key challenges is centralising
procurement and contracting, along with
change management. We are a not-for-profit
organisation and rely on government funding.
As funding streams face more challenges, or are
reduced, we need to be able to adapt. Sustainable
growth is a challenge and we must continue to
meet the needs of the ageing population and
changes in client requirements to grow our
business. The demand for more options and
more choice must filter down to what facilities
and services we need to source.
What strategies do you use to address
The organisation has worked hard in the
past 12 to 18 months to attain best
practice procurement and contracting.
We have developed a clear and concise
procurement and contracting policy
which encompasses our delegations
policy. We have consolidated a number
of small siloed contracts into larger
contracts, which maximised efficiencies
and increased purchasing power. We have
maximised procurement opportunities
through open tender processes with
greater emphasis on contracts that are fit
for purpose and value for money. Results
to date have given our contract owners
greater awareness and ownership of
How do you use technology to assist
We are currently in the process of
implementing a contract management
software system. This will enhance our best
practice procurement and contracting capabilities
and assist the contract owners to manage their
contracts more efficiently.
Where and how do you achieve
efficiencies in procurement?
By doing the simple things well; by engaging
with the wider organisation so they
understand how procurement can reduce
costs across the value chain; and by being a
driver of sustainable savings by always asking
the when, where, why and how. We need
to ensure value is realised through contract
management and stakeholder relationships.
We have gained efficiencies through building
relationships with our suppliers and by drilling
down in current contracts to see where
efficiencies can be gained and then working
with the supplier to achieve these. With new
open and transparent contracts it’s crucial
to ensure we know what we want, ensure we
target proven suppliers and go to market to
gain a competitive response.
What’s your advice for other
Have clear and concise procurement and
contracting policies in place, ensuring they
link to your organisations delegations, policies
and legislative requirements. Remember ever y
procurement your organisation carries out has
a dollar value. So ask yourself these questions:
is it value for money, is it fit for purpose,
and does it fit with your organisation’s
requirements in providing the ver y best care
and support to your clients? n
australianageingagenda.com.au | 43
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