COUNCIL POLICY TITLE: PROCUREMENT POLICY DOCUMENT …€¦ · COUNCIL POLICY TITLE: PROCUREMENT...

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

COUNCIL POLICY

PROCUREMENT POLICY Page 3 of 22

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

COUNCIL POLICY


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

COUNCIL POLICY


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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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).

Date post:	21-Apr-2018
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