Procurement is rarely viewed as innovative. Yet at the 4th SWAN Asia-Pacific Workshop in Sydney, panellists from Riverina Water, Watercare, Jacobs and the Water Directorate argued that procurement may be the key to unlocking agility and innovation in the water sector.
Moderator Wayne Pales, General Manager Digital Business at Barwon Water, framed the discussion as a call to rethink how utilities balance due diligence with speed. He challenged delegates to envision a process that fosters collaboration rather than hindering it.
- Want more information on what Inside Water is up to? Sign up for our weekly email, landing in inboxes with the latest news.
- Do you want the magazine delivered to your letterbox? Sign up here to subscribe.
Why must procurement evolve to match digital innovation?
Digital transformation has accelerated across the water sector, but procurement frameworks have lagged.
Pales noted that successful digital programs depend on partnerships between utilities, service providers and technology companies. However, many projects fail because procurement processes were designed for infrastructure, not digital ecosystems.
“They are too rigid for innovation,” Pales said. “We must find a way to manage risk while still moving faster.”
What challenges are regional utilities facing?
Water Directorate Executive Officer Brendan Guiney and Jacobs Digital Delivery Technical Director Clarissa Phillips explained how outdated procurement and data systems are holding back regional utilities in New South Wales.
Guiney said small councils face major constraints, including ageing infrastructure, limited staff and poor access to digital expertise. Many still rely on analogue telemetry and disconnected SCADA systems.
Phillips added that these utilities must meet the same regulatory and service expectations as large urban water providers.
Their joint proposal to the NSW Minister for Water outlines a Digital Maturity Roadmap that would help regional councils transition from basic monitoring to advanced analytics and predictive maintenance.
They presented a case study from Narromine Shire Council, which utilised a simple, integrated digital platform that combined GIS, CCTV, smart meters, and mobile data collection for asset maintenance.
The $700,000 project, led internally, provided operators with real-time visibility of network performance and improved water quality reporting, eliminating the need for external consultants.
How can RFP innovation support smarter procurement?
Watercare’s Campbell Scott described how New Zealand’s largest water utility reimagined its Request for Information (RFI) and Request for Proposal (RFP) processes to better match digital maturity and market capability.
Before launching a major procurement for its smart metering ecosystem, Watercare conducted an internal audit of data, processes and standards. The result was a clearer understanding of what the organisation needed and where it could innovate.
Scott said the new approach replaced one-size-fits-all tendering with component-based RFIs, which covered hardware, connectivity, management systems and data analytics.
This allowed vendors to propose tailored solutions that aligned with different operating models, from Design-Bid-Build to Data as a Service (DaaS) and Metering as a Service (MaaS).
By analysing responses with AI to identify shared themes and risks, Watercare improved visibility across suppliers and revealed innovation opportunities that traditional evaluation methods would have missed.
What does flexible, agile procurement look like?
Scott said Watercare’s RFP process now integrates Lean Agile Procurement (LAP) principles, which prioritise transparency, collaboration and joint problem-solving.
Under LAP, shortlisted vendors are brought together in the same room to present, negotiate, and refine solutions in real-time. The process aims to expedite decision-making and enhance outcomes for all parties.
He identified five attributes of successful modern procurement: clear criteria, trust, reliability, genuine partnership and transparency. “The goal is to work with vendors without agendas,” he said.
What can local utilities learn from Riverina Water’s approach?
Riverina Water’s Director of Corporate Services, Emily Tonacia, offered a regional perspective on transforming procurement into a strategic enabler.
Her organisation’s multi-year digital transformation centred on an end-to-end enterprise resource planning (ERP) system that shifted the utility from manual to fully integrated operations.
Rather than viewing procurement as a transactional process, Riverina Water approached it as a long-term partnership built on trust and shared accountability.
Tonacia said the utility focused less on price and more on cultural fit, adaptability and outcomes. Governance frameworks were designed to allow flexibility, with milestones built into contracts to ensure performance while enabling change.
“Our success came from aligning people, process and procurement,” she said. “It was not about buying technology but about building a partnership that could evolve.”
How can AI and collaboration improve procurement outcomes?
During the Q&A session, speakers highlighted how AI tools can streamline tender documentation, reduce manual processing, and improve transparency in decision-making.
Scott suggested that generative AI could simplify the drafting of complex contracts and accelerate internal reviews. Tonacia added that AI-assisted procurement could help smaller utilities save time by reducing administrative burden.
Audience members agreed that collaboration across utilities is essential to achieving scale and shared learning. Guiney said NSW regional utilities could benefit from catchment-based procurement models to reduce duplication and improve cost efficiency.
What is the future of procurement in water utilities?
The panel concluded that procurement is becoming a key lever for transformation. When aligned with digital goals, it can foster innovation and long-term value.
Future procurement in water utilities will depend on flexibility, capability and trust between partners.
Wayne Pales closed the panel with a prescient comment. “Procurement isn’t just about compliance. It’s about connection. The goal is to turn contracts into collaborations.”