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3 - 4 August 2020
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Local Government Case Study – Procurement for innovation

Geelong

One of the game-changing services to be provided through Cleantech Innovations Geelong, is procurement for innovation, also known as forward commitment procurement.

This innovative method stimulates market demand and supply through public procurement. Using the substantial buying power of public sector procurement, this method is a way to move markets to more clean tech options. Essentially, a public sector procurer establishes a forward commitment to procure a product to respond to a need, which is not yet available on the market.

The forward commitment can be up to three years in the future. By making this commitment, suppliers on the market are assured that if investment in research and development of a response to an unmet need is undertaken, there is a commitment to procure when the public sector buyer goes to tender.

In the United Kingdom (UK), Her Majesty’s Prison Service was spending substantial portions of its annual budget on managing the waste generated from routine mattress replacement. Therefore, a forward commitment was made to procure zero waste mattresses from the market; an innovation which was not already available on the market.

This HM Prison Service forward commitment had a three year deadline. This gave the market the time to research and develop the manufacture of a zero waste mattress which, when HM Prison Service went to tender, the market was able to respond; and a zero waste to landfill mattress is now being procured under contract.

 

Age defying bridges for a clever and creative city region

Conducting a similar exercise was inspired when our engineers were invited by CSIRO employee, Scott Barnes, to tour the CSIRO/Carbon Nexus site at Waurn Ponds. The tour was followed shortly after by a composites conference and meetings arranged with significant players from the composites design and manufacturing space from across Australia.

Following these events, our engineers used the organisation’s procurement processes to establish an innovative solution to solve the annual waste and cost problems caused by repairing and maintaining bridges in recreational spaces. The engineers worked with colleagues in our Procurement team to run a tender for a zero maintenance recreational bridge with a 100+ year design life. We own and manage over 160 bridges, many of these are timber, concrete and steel pedestrian bridges which are in various conditions and present an ongoing maintenance liability. So we were looking for a solution, which could be adapted for a variety of purposes.

The eight suppliers who expressed an interest in this procurement exercise were supported by Cleantech Innovations Geelong to research and develop a solution to the unmet need identified. Links are also made with Geelong based engineers, designers and manufacturers to stimulate economic growth through this procurement exercise.

 

Tender result…

Made in Geelong, highly sustainable carbon fibre reinforced geopolymer bridges could one day become commonplace thanks to a successful City of Greater Geelong initiative, and the first Procurement for Innovation project to be successfully tendered in Australia.

To encourage sustainable innovation in line with its community-led clever and creative vision, we tendered for a 100 year maintenance free pedestrian bridge in 2017. The tender invited companies to come up with solutions to the costly maintenance problem associated with traditional bridges – usually made of timber, steel or concrete – which cost our organisation around $500,000 to inspect, repair, maintain and replace each year.

The winning submission came from a consortium including local manufacturer Austeng, Deakin’s cutting-edge Waurn Ponds Carbon Nexus facility and Australian engineering company Rocla. The consortium undertook research and then developed an innovative new combination of materials resulting in a novel building product made from geopolymer (comprising partly recycled materials) and reinforced with carbon fibre, which will be stronger and significantly longer lasting than existing products.

The first two bridges slated to be replaced with the new design are timber structures over Cowies Creek in Deppler Park (Seagull Paddock). Construction is expected to begin this year.

The tender was the first in Australia to be offered using a Procurement for Innovation process, which aims to encourage the development and viability of clean technology – economically viable products that harness renewable materials and energy sources while reducing emissions and waste – using the substantial buying power of public sector procurement.

Along with a commitment to buy a new innovative product which is not yet available on the market, we have worked with Cleantech Innovations Geelong to provide a longer than normal deadline for the tender, as well as grants and support for tenderers to invest in research and access international expertise towards their submissions.

The Austeng-led consortium beat seven other tenderers from across Australia, as the most competitive on price, innovation and local content.

 

This article was provided by Tina Perfrement, Business and Industry Engagement, Economic Development and Events, Investment and Attraction from City of Greater Geelong, one of our feature case study speakers. To read more, please click here

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