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COUNCIL POLICY
TITLE: PROCUREMENT POLICY
DOCUMENT
NUMBER: CPO-CORPS-FI-001
DEPARTMENT: CORPORATE SERVICES
UNIT: CONTRACTS
RESPONSIBLE
OFFICER:
Karena Prevett, Group Manager, Corporate Services
Tony McCarthy, Contracts Manager
Checked Yes No
APPROVED BY: Council
APPROVAL DATE: 24 June 2015
EXPIRY DATE: 24 June 2016
REVIEW DATE: 24 June 2016
This policy will be reviewed on an annual basis in
accordance with Section 186A (2) of the Local Government
Act.
AVAILABILITY: Staff – Unit only Yes No
Staff – Department only Yes No
Staff – Organisation wide Yes No
Public Yes No
Internet Yes No
ADVISE
AVAILABILITY:
Media Release Yes No
Sou Wester (Author to prepare article)Yes No
Email designated Groups & Staff Yes No
REFERENCES:
Good Practice Guide – Public Sector Procurement, Turning
Principles into Practice’; Victorian Auditor General, October
2007
Australian Standards Code of Tendering AS 4120-1994
‘Guidance on Occupational Health and Safety in
Government Procurement’;
Victorian Competitive Neutrality Policy 2000
Municipal Association of Victoria (MAV) ‘Model Procurement
Policy’ June 2009
Local Government Act 1989 (Section 186 and 186A, 208A)
Local Government (General) Regulations 2004 No 130 – Part
4, Clause 10
Trade Practices Act (particularly Section 45 of Part 1V)
Organisational Policy – Purchase Order & Invoice Payment
Authorisation Limits (DPO-CORPS-F1-001)
Instrument of Delegation by the Council to the Chief
Executive Officer
Victorian Local Government Best Practice Procurement
Guidelines 2013 Local Government Victoria 2013
Charter of Human Rights and Responsibilities
Glenelg Shire Council, Records Management Policy OPO-
CORPS-RECM-001
Freedom of Information Act 1982
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Table of Contents Purpose ........................................................................................................................................................... 5
1. PRINCIPLES ............................................................................................................................................. 6
1.1 Policy Objectives ............................................................................................................................. 6
1.2 Scope .................................................................................................................................................. 7
1.3 Treatment of GST ............................................................................................................................. 7
1.4 Definitions .......................................................................................................................................... 7
2. EFFECTIVE LEGISLATIVE AND POLICY COMPLIANCE AND CONTROL ...................................... 9
2.1 Officer’s Financial Delegations .................................................................................................... 9
2.2 Authorisation Limits .......................................................................................................................... 9
2.3 Quotation Thresholds .................................................................................................................... 10
2.4 Exemptions from Procurement Policy ...................................................................................... 11
2.5 Disclosure of Information ............................................................................................................. 12
2.6 Conflict of Interest ......................................................................................................................... 13
2.7 Risk Management ......................................................................................................................... 13
2.8 Occupational Health and Safety ............................................................................................ 13
2.9 – Council Interpretation of Section 186 Competitive Process ............................................... 14
2.10 Supply by Contract ....................................................................................................................... 14
2.11 Contract Management ............................................................................................................. 15
3. DEMONSTRATE SUSTAINED VALUE .................................................................................................. 16
3.1 Value for Money ............................................................................................................................ 16
3.2 Open and Fair Competition ....................................................................................................... 16
3.3 Accountability ................................................................................................................................ 16
3.5 Probity and Transparency ........................................................................................................... 16
3.6 Ethical Behavior ............................................................................................................................. 16
3.7 Sustainable Procurement ............................................................................................................ 16
3.8 Social Procurement ...................................................................................................................... 17
3.9 Environmental Purchasing .......................................................................................................... 17
3.10 Local Purchasing Philosophy ...................................................................................................... 17
3.11 Local Australian and New Zealand Supplier Preference ................................................... 17
3.12 Innovation and Collaboration ................................................................................................... 18
3.13 Category Management .............................................................................................................. 18
3.14 Use of Panel Contracts ............................................................................................................... 18
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Table of Contents (Continued)
3.15 Use of Procurement Schemes ....................................................................................................... 18
4. APPLY A CONSISTANT AND STANDARD APPROACH ............................................................ 19
4.1 Standard Processes ...................................................................................................................... 19
5. CONTINUIOUS IMPROVEMENT (BEST VALUE) ............................................................................... 20
5.1. Build and Maintain Supply Relationships ................................................................................ 20
5.2 Developing and Managing Suppliers...................................................................................... 20
5.3 Supply Market Development ..................................................................................................... 20
5.4 Communication ............................................................................................................................. 20
6. ENFORCEMENT OF POLICY ...................................................................................................... 21
6.1 Breaches of the Policy ................................................................................................................. 21
6.2 Reporting Breaches ...................................................................................................................... 21
6.3 Penalties for Breaches .................................................................................................................. 21
7. RECORDS MANAGEMENT ................................................................................................................. 22
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Purpose
The purpose of this document is to clearly set out the requirements in the conduct
of Councillors, employees, independent panel members and associated external
parties when procuring and contracting goods services and works on behalf of
Glenelg Shire Council
Section 186a of the Local Government Act 1989 requires Council to prepare,
approve and comply with a Procurement Policy that outlines the principles to be
applied to the purchase of goods, services and works.
Key aspects of the legislation are that:
At least once in each financial year, a Council must review the current
procurement policy and may, in accordance with this section, amend
the procurement policy;
A copy of the current procurement policy must be available for
inspection by the public – at the Council office and on the Council’s
internet website; and
A Council must comply with its procurement policy.
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1. PRINCIPLES
1.1 Policy Objectives
The Glenelg Shire Council recognises that:
Developing a procurement strategy and adopting appropriate best practice
contracting and procurement principles, policies, processes and procedures
for all goods, services and works undertaken by the Council, will enhance
achievement of Council objectives. This includes responsible procurement;
bottom-line cost savings; supporting local economies; achieving innovation;
and better services for communities.
The elements of best practice applicable to local government procurement
incorporate:
Principles covering ethics, value for money, responsibilities and
accountabilities;
Guidelines and tools giving effect to those principles;
A system of delegations (i.e. the authorisation of employees to approve
and undertake a range of functions in the procurement process);
Procurement processes, will have appropriate procedures covering
minor, simple procurement to high value, more complex procurement;
Procurement needs to support the Council’s corporate strategies, aims
and objectives including, those related to good governance, ethical
behaviour and responsible financial management;
Procurement practices always demonstrate that public money has
been well spent and promote open and fair competition in its
procurement activities; and
It must include a stringent Risk Management strategy in its Procurement
objectives.
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1.2 Scope
This Procurement Policy has been prepared in accordance with the
requirements of Section 186A of the Local Government Act 1989 (the Act).
This section of the Act requires the Council to prepare, approve and comply
with a Procurement Policy that encompasses the principles, processes and
procedures applied to all purchases of goods, services and works by the
Council.
1.3 Treatment of GST
All monetary values stated in this policy include GST, except where
specifically stated otherwise.
1.4 Definitions
Term Definition
Act Local Government Act 1989.
Commercial in
Confidence
Information that, if released, may prejudice the business
dealings of a party (e.g. prices, discounts, rebates, profits,
methodologies and process information, etc).
Contract An agreement between two or more authorised persons
on behalf of their organisations to perform a specific act/s
which is enforceable in law. A contract may be verbal or
written or inferred by conduct.
Contractor Respondent (person, firm, etc.) whose tender/quotation
offer has been accepted by the council with or without
modification.
Contract
Owner
A Council Officer who is ultimately accountable for the
contract or project. (This is normally in line with the
Financial Delegations, or Delegations of Council.
Contract
Supervisor
The person nominated by Council to manage day to day
matters of the contract. See also Superintendent.
Economic
Contribution
Where a tenderer is required to list any measurable
economic contribution which it currently makes, or would
make to the Glenelg Region if its tender is accepted.
Evaluation
Panel
Where a competitive tender process is evaluated based
on the addressing of key selection criteria to decide best
value for Council. A minimum three persons, with one
independent member, with no risk of immediate, potential
or perceived conflict of interest.
Goods Movable personal property, especially merchandise used
in trade or commerce and requiring carriage from one
place to another.
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Term Definition
Panel Contract Intended to streamline the quotation process, Council
awarded panels, based on superior market rates,
experience, qualifications and capability of the
contractors in that category of work.
Probity In the context of procurement probity is a defensible
process which is able to withstand external scrutiny.
Procurement Procurement is the whole process of acquisition of external
goods, services and works. Also includes organisational
and governance frameworks that underpin the
procurement function.
Quotation A document in the form of an offer to supply goods/and or
services, usually in response to a request for quotation.
Risk Analysis The process of determining the likelihood and
consequences of an event in the context of existing risk
control measures.
Services The act of helping or doing work for another, expert work
done a certain way, assistance or benefit given to
someone. The provision of doing what is necessary in
providing the task required.
Sustainability
Activities that are efficient, cost effective and renewable
to meet the needs of the present without compromising
the ability of future generations to meet their needs.
Social
Procurement
The use of procurement processes and purchasing power
to generate positive social outcomes in addition to the
delivery of efficient goods, services and works.
Superintendent The person appointed by Council in a contract for the
purpose of overseeing Council’s responsibilities, targeted
outcomes and interests of the project.
Tenderlink Council’s Electronic Tender System.
Tender Process The formal process of inviting parties to submit a quotation
by tender using public advertisement, followed by
evaluation of submissions and selection of a successful
bidder or tenderer.
Value for
Money
The selection of the supply of goods, services and works
taking into account both cost and non-cost factors e.g.
service and support, whole-of-life costs and maintaining
and disposing of the goods, services or works.
Works The Construction, alteration, extension, resolution, repair,
demolition or dismantling of buildings, structures or works
that form part of Council’s assets whether or not the
buildings, structures or works are permanent.
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2. EFFECTIVE LEGISLATIVE AND POLICY COMPLIANCE AND CONTROL
2.1 Officer’s Financial Delegations
Section 98 of the Act defines the process for Council to delegate its
powers, duties and functions to a member of its staff. Glenelg Shire Council
has by an Instrument of Delegation delegated powers and responsibilities
to the Chief Executive Officer.
In turn the Chief Executive Officer has delegated powers, responsibilities
and financial purchasing limits to Officers as appropriate to perform their
duties.
Officers must be aware of their role and financial responsibilities and must
ensure that all purchases they make are within their delegated authority.
The Council maintains a documented scheme of procurement delegations,
identifying the employees authorised to make such procurement on behalf
of the Council and respective delegations.
2.2 Authorisation Limits
Authorisation limits for requisition/purchase order approvals are set by the
CEO under the CEO’s power of delegation. Procurement authorisation limits
for the CEO are set by Council.
Specific employees, with specific authority, may requisition works, goods or
services. However, only employees with delegated authority as listed below
can authorise associated purchase orders.
Position Level of Authority per Order
Council Awarded Contract -
$150,000 + (Goods and
Services)
$200,000 + (Works)
CEO (or delegate) $100,000 to $149,999(Goods
and Services)
$100,000 to $199,999 (Works)
Group Managers (or delegate) $50,000 to $99,999
Managers; Team/Unit Leaders and
Supervisors
$10,000 to $49,999
Responsible Budget Officer $1,000 to $9,999
Other Officer Up to $999
Note: All levels of authority are GST inclusive.
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All purchase orders, irrespective of value, will be authorised by the
responsible officer of the purchase order issuer.
2.3 Quotation Thresholds
There are a number of methods by which goods and services can be
purchased, however not all methods are appropriate to all circumstances.
The critical factors in determining the most appropriate method to
purchase goods or services are the value of the purchase, the extent of
risk associated with the purchase and complexities involved in the
purchase decision.
The legislated value of contracts for which a prior public tender is to
be conducted by Council is $150,000 GST inclusive for contracts for goods
and services and $200,000 GST inclusive for contracts for the carrying out of
works.
In order to ensure that unforeseen variations will not cause Council to be
non- compliant with the requirements of the Act, the following table sets
out Council’s policy regarding procurement processes to be followed
based on the value of the purchase. Purchases of goods and services,
and building and constriction works must meet the minimum requirements
specified in the following table:
Value Requirement Minimum Quotes
Up to $5000. Request for Quotation*
Procurement Scheme
Panel Contract
Purchasing Card
1*
5,000 to $15,000 Request for Quotation*
Procurement Scheme
Panel Contract
2*
15,000 to
$150,000 (goods
and services) or
$200,000 (works)
Request for Quotation*
Procurement Scheme
Panel Contract
Possible Public Tender Process
Risk Analysis
Contract Request Form
3*
$150,000 and
over (goods and
services) or
$200,000and
over (works)
Procurement Scheme (Subject
to Council approval)
Public Tender/EOI Process
Risk Analysis
Contract Request Form
Council Approval
Public Tender, or
Expression of
Interest (EOI)
followed by a
Tender, as
defined in Local
Govt. Act S.186.
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Verbal quotations are not acceptable. Written quotations must be retained
and recorded and documentation must be registered in accordance with
relevant Records Management policies, procedures and guidelines
Employees must not generate multiple purchase orders to the one supplier to
circumvent the above procurement limit processes.
Existing arrangements to Council that include Period Contracts, Procurement
Scheme Agency agreements (MAV Procurement, Procurement Australia,
State Government Contracts) that also comply with Section 186 of the Act
and deliver proven and measured savings through aggregation, cost and
quality standards, are also approved procurement methods as per this
policy.
2.4 Exemptions from Procurement Policy
There are limited circumstances in which there may be legitimate reasons for
a variation from the requirement to comply with sections relating to calling
for tenders and quotations and tenders threshold of this Policy.
In those cases where an exemption is sought under the Public Tender
threshold amounts, (i.e. an inability to obtain three quotes from the 15,000 to
150,000/200,000 figure), a ‘Procurement Policy Exemption Form’ must be
approved to the respective Group Manager.
Category Reason for Exemption*
Legal Services The services are for the provision of legal advice – these
services are exempt under the Local Government
(General) Regulations 2004 No 130, Part 4, Clause 10
Ministerial Exemption An exemption from the Minister for Local Government in
accordance with Section 186(5) (c) of the Act has been
obtained for the specified services or works. (refer
Minister for Local Government Circular No 41/2011
dated 21 December 2011)
Statutory Payments
Statutory payments such as Superannuation (Employer
/Employee Contributions) and WorkCover premiums.
Loan Funds The provision of Loan Funds. The Department of Planning
and Community Development has advised that loan
agreements are a financial accommodation and not
subject to the public tender requirements of the Act.
(refer memo to the Acting Finance Manager dated 6
June 2011)
Emergency In accordance with Section 186(5) (A) of the Local
Government Act that the Council resolves the contract
must be entered into because of an emergency.
Sole Supplier/
Insufficient Quotes
When it is that there are not sufficient suppliers to
provide requisite quotes. An exemption authority form
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and valid reason is required by the requisitioning officer.
Category Reason for Exemption*
Scope Change When there is unforseen need to alter the scope of the
project in a minor way (less than a 10% estimate) and
the cost of obtaining further quotations or retendering
will outweigh the potential benefits.
Exceptionally
Advantageous Time-
limited Conditions
Includes unusual disposals by suppliers, unsolicited
innovative proposals, liquidation, bankruptcy, or
receivership and which are not routine purchases from
regular suppliers.
Intellectual Property Where the goods or services can only be supplied by a
particular business and no other reasonable alternative
or substitute exists, e.g. theatre Performance, work of
art; or to protect patent, copyright, or other exclusive
right, proprietary information, specialist software, etc.
Absence of
Competition
Goods and services that are limited by patents or
licences. To be supported by documentation and
demonstrated organisational benefits.
Support from Original
Supplier
For additional goods or services by the original supplier
or representative where a change in supplier would
compel Council to procure goods or services that do
not meet the compatibility requirements with specialised
goods or services. E.g. spare parts for vehicles and plant.
*These exemptions do not apply if over the value of 150,000 for Goods and
Services and $200,000 for the provision of Works. Ministerial Exemption must be
sought by Council should this be the case.
2.5 Disclosure of Information
For a Public Tender Process, a report will be presented at an in camera
meeting of Council for eventual award. When awarded, information from
the successful tenderer may become publicly available.
Following award of the tender or quotation for lesser amounts, unsuccessful
tenderers will be notified of the name only of the successful tenderer. No
other information regarding the successful tender will be provided.
Additional disclosure may occur where applicable, under the Freedom of
Information Act 1982 or as required by the Victorian Auditor-General’s Office
or the Victorian Ombudsman. Requests for this type of information are to be
directed through Council’s Governance Coordinator.
.
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2.6 Conflict of Interest
Councillors, Council employees and independent tender panel members
must comply with the sections 77A to 80A of the Act requiring the disclosure
of conflicts of interest. A Councillor, Council employee or independent panel
member will excuse themselves from evaluation of the tender category if a
direct or perceived conflict under the act is apparent.
Should the direct or perceived interest be only a small part of the tender
(e.g. a category of a panel contract) the movements and exclusion of the
officer will be documented and managed by the Evaluation Panel
chairperson to confirm no direct or indirect interest applies in that case.
2.7 Risk Management
Risk management is to be appropriately applied at all stages of procurement
activities which will be properly planned and carried out in a manner that will
protect and enhance the Council’s capability to prevent, withstand and
recover from interruption to the supply of goods, services and works.
All high value purchases and purchases of a lesser value but of a complex
nature will be subject to a risk assessment, involving risk identification and
assessment of likelihood and magnitude of potential risk; strategies for pre-
empting, mitigating and treating the occurrence of a risk; detailing
responsibility for managing a risk; and controlling procurement risks as they
arise.
2.8 Occupational Health and Safety
Council will collect and assess the OHS regime of a contractor when
evaluating their tender to ensure that the contractor’s OHS management
system demonstrates compliance with all duties of an employer as specified
in the Occupational Health and Safety Act 2004.
All OH&S Information, copies of the relevant OH&S records, Contractor
Information, breaches or other information is to be completed and
contained in each Contract File for Contract Management purposes,
compliance, recall or external audit.
OHS considerations will be most important in certain types of procurement
decisions (e.g. construction contracts, long term service contracts and plant,
machinery and equipment purchases). However, OHS issues should be
considered in all procurement decisions.
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2.9 Council Interpretation of Section 186 Competitive Process
There is no specific length of time applicable to a contract for the purpose
of applying thresholds under section 186 of the Act, where significant
amounts are spent in aggregate either on one supplier or for one service
over time,
The value of a purchase contract is the aggregate value of the contract
over the term of the contract. If the term of the contract is not clear, a
default term of 2 years is to be used for cumulative expenditure.
Council will determine on the basis of value for money, the efficiency and
effectiveness of the procurement and any added value opportunities.
2.10 Supply by Contract
The provision of goods, services and works by contract potentially exposes
the Council to risk.
The Council will minimise its risk exposure by measures such as:
Standardising contracts to include current, relevant clauses;
Requiring security deposits where appropriate;
Requiring Bank Guarantees, Appropriate Insurance, Defects Liability
Periods, and Liquidated damages clauses to be accepted to protect its
risk in large capital works projects;
Reporting on the performance of the contractor for corporate memory,
audit and reference purposes;
Referring specifications to relevant experts;
Requiring contractual agreement before allowing the commencement
of work;
Use of or reference to relevant Australian Standards (or equivalent); and
Effectively managing the contract including monitoring and enforcing
performance.
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2.11 Contract Management
The purpose of contract management is to ensure that the Council, and
where applicable its clients, receive the goods, services or works provided to
the required standards of quality and quantity as intended by the contract
by:
Establishing a system of monitoring and understanding of the
responsibilities and obligations of both parties’ under the contract;
Providing a means for the early recognition of issues and performance
problems and the identification of solutions; and
Adhering to the Risk Management Framework and compliance with
relevant occupational health and safety contractor compliance
procedures;
Enabling a process that ensures both parties to a contract fully meet
their respective obligations to deliver both the business and operational
objectives required from the contract; and
Actively managing the relationship between the client and the
contractor over the term of the contract for the provision of goods and
services.
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3. DEMONSTRATE SUSTAINED VALUE
3.1 Value for Money
Value for money does not necessarily mean accepting the lowest
price, (section 186(4) of the Act provides that there is no obligation to
accept the lowest tender) but obtaining the best quality and value for
the price, for quality goods/services that meet Glenelg Shire Council’s
criteria and cost constraints.
3.2 Open and Fair Competition
All prospective suppliers/vendors must be treated fairly in an open and
transparent manner without bias (or perception of bias), with the same
access to information regarding the proposed purchase, in order to
enable submission of quotes/tenders to be made on the same basis.
3.3 Accountability
Clear and robust processes consistent across the entire organisation must
be followed, in order that the lines of responsibility and accountability are
clear, and to ensure that appropriate audit controls are in place.
3.5 Probity and Transparency
Probity in purchasing relates to fairness, impartiality and integrity, and is often
used in a general sense to mean good process. All Council dealings must
be conducted in a fair and open manner, observing the highest standards
of honesty, and demonstrating the highest levels of integrity consistent with
the public interest.
3.6 Ethical Behavior
Ethical behavior encompasses the concepts of honesty, integrity, probity,
diligence, fairness, trust, respect and consistency.
At all times, Councillors and Council staff must act in accordance with
relevant policies, codes of conduct and guidelines regarding gifts and
hospitality and conflicts of interest.
3.7 Sustainable Procurement
Council will consider benefits and value for money based on whole of life
costs,
as well social and environmental impacts of its procurement processes, in
order to achieve the best outcomes for the community having regard to
the long-term and cumulative effects of its decisions.
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3.8 Social Procurement
Council supports procurement that not only delivers appropriate value for
money goods and services and works, but also generates positive social
outcomes.
3.9 Environmental Purchasing
Council prefers to purchase recycled and environmentally sound products
whenever they perform satisfactorily and represent value for money.
Council requires all evaluation criteria to include the following:
Evaluation Criteria Minimum
Weighting
The impact that this purchasing activity will have on
environmental sustainability
10%
3.10 Local Purchasing Philosophy
Council is committed to supporting the local business community and
encouraging its involvement in purchasing processes. Buying locally is
preferred where local suppliers are competitive and achieve value for
money.
Council requires that all evaluation criteria include the following:
Evaluation Criteria Minimum
Weighting
Economic Contribution to the Glenelg Shire Region 25%
3.11 Local Australian and New Zealand Supplier Preference
Section 186 (6) of the Act provides that wherever practicable, Councils must
give effective and substantial preference to contracts for the purchase of
goods, machinery or material manufactured or produced in Australia and
New Zealand.
Employees must therefore always endeavour to give preference to
Australian and New Zealand suppliers/ vendors/contractors where
practicable.
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3.12 Innovation and Collaboration
Council will use innovative procurement solutions to promote sustainability
and achieve best value and will collaborate with other Local Government
entities whenever possible in order to achieve the best outcomes for the
community.
3.13 Category Management
Council will use a category management approach to identify the most
appropriate and effective sourcing and supply arrangements in order to
achieve the best outcomes for the community.
3.14 Use of Panel Contracts
Council has a range of panel contracts with the intention of streamlining
quotation procedures whilst presenting a broad range of options for
specialised procurement requirements.
These panels have been awarded by Council after a tender process, and
have been awarded for use based on superior market rates, past
experience, and qualifications and capability of the contractors.
3.15 Use of Procurement Schemes
Council currently utilises and accesses a number of procurement
aggregators and whole of government contracts. An aggregator is an
entity that performs the tendering and contract management activities on
behalf of a number of local government authorities and other entities.
The two predominant aggregators are MAV Procurement and
Procurement Australia.
The Victorian State Government also make whole of government contracts
accessible to local government. These contracts can be accessed
through the Victorian Government Purchasing Board (VGPB) or individual
government departments such as the Department of Transport,
Department of Justice and Department of Treasury and Finance.
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4. APPLY A CONSISTANT AND STANDARD APPROACH
Council will provide effective and efficient arrangements for the acquisition
of goods and services that include payment within the terms of the contract,
records management and reporting requirements.
4.1 Standard Processes
Council will provide effective arrangements in the provision of procurement
of goods and standard services across Council to enable employees to
source requirements in an efficient manner.
This will be achieved via establishing the following:
Procurement Guidelines, processes, procedures and techniques;
Tools and business systems (e.g. implementing appropriate e-tendering,
evaluation or sourcing arrangements);
Reporting requirements, advice and communications; and
Application of robust and standard contract terms and conditions.
Additionally Council will:-
report as required on its compliance;
make certain public information is easily available;
maintain a Contracts Register for contracts administered in the financial
year;
A range of best practice templates in the procurement process; and
with appropriate procedures covering minor, simple procurement to
high value, to more complex procurement.
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5. CONTINUIOUS IMPROVEMENT (BEST VALUE)
5.1 Build and Maintain Supply Relationships
Council recognises that in order to achieve sustainable value, a strategic
assessment of the appropriate purchasing methods should be undertaken –
whether to go to market on its own, participate in regional or sector
aggregated projects or panels, access State Government panel agreements
or other means.
Council will consider supply arrangements that deliver the best value
outcomes in terms of time, expertise, cost, value and outcome.
5.2 Developing and Managing Suppliers
Council recognises the importance of effective and open working
relationships with its suppliers and is committed to encouraging and
maintaining existing suppliers, as well as encouraging new suppliers to
compete for work wherever possible or appropriate and improving the
capability of existing suppliers where appropriate.
5.3 Supply Market Development
A wide range of suppliers should be encouraged to compete for council
services. The focus for new services need not always be with the larger more
familiar businesses. Other types of organisations offering business diversity
include:
Local businesses;
Green suppliers;
Social enterprises;
Ethnic and minority business; and
Voluntary and community organisations.
5.4 Communication
Council will communicate to current and potential suppliers in the most
appropriate manner as specific circumstances arise.
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6. ENFORCEMENT OF POLICY
The Chief Executive Officer (CEO) has overall accountability for the
procurement of goods and services required to support the business of the
Council and is responsible for enforcing the Procurement Policy.
6.1 Breaches of the Policy
Council’s Senior Management Team is responsible for authorising corrective
action to rectify all breaches of the Procurement Policy, for example
suspected breaches that may involve corrupt conduct, maladministration,
wilful non-compliance, or serious and substantial waste.
6.2 Reporting Breaches
All suspected breaches of this Policy should, in the first instance, be reported
to the relevant Senior Officer who, through the respective Group Manager
will actively manage the breach to comply with this policy. Depending on
the circumstances, severity risk to Council may advise the CEO of the
outcome of each reported breach and corrective actions.
All reports received will be treated with appropriate concern for the law,
privacy and confidentiality.
6.3 Penalties for Breaches
Breaches of this Policy will be dealt with in accordance with the Council’s
Discipline Procedure and Staff Code of Conduct.
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PROCUREMENT POLICY Page 22 of 22
7. RECORDS MANAGEMENT
All Council records created and managed as a result of implementing this
policy will be managed in accordance with the Council’s Records
Management Policy.
The Records Management Policy assigns responsibilities for records
management to employees, supervisors, volunteers and other specific
positions.
No Council records are to be destroyed without consideration of the
requirements of the Act(s) that govern the functions relevant to this policy.
Prior to destruction, advice must be sought from the Records Management
Unit, with consideration to the requirements of the appropriate Retention and
Disposal Authority (RDA).