Greater Dandenong joined forces with the Cardinia and Yarra Ranges shires to save money on maintenance and give back to the three communities.
The trio together awarded a building maintenance contract for the next three years.
Greater Dandenong Council CEO John Bennie said working together cut the tender costs by about $50,000.
“We have also strengthened our bargaining power by working together,” he said.
“The successful tenderer has committed to giving one per cent of the total revenue generated from each council back to the community in the form of grants or sponsorship.
“They have also agreed to employ at least two homeless or disadvantaged people from each council area, ensuring at least six long-term unemployed have ongoing work.”
This innovative procurement process is a finalist in the LGPro Awards for Excellence to be held later this month.
Mr Bennie said councils were looking at innovative ways to save money in light of the economic climate and following the introduction of rate capping.
“All three councils were able to deliver better outcomes for their local communities,” he said.
“We have been able to maintain the high standards of service delivery our community expects, while also saving money.”
The idea to collaborate during the tender process came from a meeting between the South-East Melbourne councils about 18 months ago.