What?
A Section 17A review is a requirement under New Zealand’s Local Government Act that compels councils to regularly assess the cost-effectiveness of their service delivery methods. The review evaluates whether services should be provided in-house, outsourced, or delivered through shared arrangements with other councils or agencies. Its purpose is to ensure that councils are delivering services in the most efficient, effective, and financially responsible way, considering factors like quality, cost, and long-term sustainability.
Why?
Gore District Council is undertaking a Section 17A Review to improve the value and efficiency of its roading Maintenance, Operations, and Renewals (MOR) services. The goal is to assess which services should be delivered internally versus outsourced, ensuring the most cost-effective and high-quality outcomes. The Council is exploring the potential for joint contracting of physical works with other neighbouring Councils, aiming to leverage shared resources and economies of scale.
The proposed approach involves three key phases. Focus on confirming procurement objectives with elected representatives, analysing sector trends to guide decisions on in-house versus outsourced services, and engaging with neighbouring councils and industry stakeholders (the contractors) to evaluate the feasibility and benefits of joint contracting.
This collaborative and evidence-based process will help identify sustainable and mutually beneficial arrangements that enhance service delivery and value for money.