PROCEDURES PURCHASING POLICY AND - Sutherland …€¦ · 1 Manager – Corporate ... 2.5 Governance of Purchasing Policy and Procedures ... Responsibilities for council’s Procurement

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PURCHASING POLICY AND PROCEDURES

Sutherland Shire Council

Council Online - IM/Policies - Policies & Forms - IM/Policy Purchasing Policy and Procedures2

Document review and approval

This document has been approved byName Minute No Date approved

1 Director’s Committee DMC004-02 (FIN001-02) 32 23 July, 20012 Director’s Committee DMC054-06 (FIN057-06) 267 26 September, 20053 Director’s Committee DMC043-10 (FIN045-10) 204 28 September, 20094 Director’s Committee DMC022-11 (FIN016-11) 119 23 August, 2010

Revision historyVersion Author Date Revision

1 Manager – Corporate Development

10 July, 2001 Original Version

2 Supply Manager 13 September, 2005 The following amendments were adopted:- public tender threshold to be increased to $150,000;- maximum delegations are raised to $149,999;- one quotation only need be sought to "non orders" which are valued at less than $5,000 per transaction;- a record of all purchasing transactions must be held by every council department, in the form of a Purchasing Folder or File- external consultants may be engaged without the General Manager's approval provided value below $20,000;- revised OH&S and receiving procedures as explained in Section 7 of the manual.

3 Manager - Finance 8 September, 2009 Minor amendments to reflect internal audit practice4 Manager - Finance 10 August, 2010 The following amendments were adopted:

(i) Procurement Australia be recognised as "a person prescribed by its regulations". (ii) All single procurement transactions valued at $10,000 or more be subjected to a minimum of three (3) written quotations, regardless of the fact that products/services may be available under "prescribed" contracts.

5 Procurement Coordinator

5 March, 2012 Administrative changes in regards to information location (Compass, DMS), updates to regulations including WHS, and electronic tender advertising (Tenders Online).


7 March, 2013 Policy reviewed under annual review process no changes necessary at this time


7 April, 2014 Policy reviewed under annual review process no changes necessary at this time


9 January, 2015 Policy reviewed under annual review process no changes necessary at this time



Table of Contents

A GUIDE TO USING THE MANUAL ........................................................... 5Flowcharts .................................................................................................. 6

Section 1 – An Overview ........................................................................... 71.1 Introduction ......................................................................................... 71.2 Objective ............................................................................................. 71.3 Work Health & Safety (WH&S Responsibilities) ................................. 71.4 Environmental ..................................................................................... 71.5 The Policy and Procedures................................................................. 71.6 Conditions of Tendering...................................................................... 8

Section 2 – SSC Procurement Policy and Procedures........................... 9 2.1 Policy Statement ................................................................................. 92.2 Scope.................................................................................................. 92.3 Values ................................................................................................. 92.4 General Policy..................................................................................... 92.5 Governance of Purchasing Policy and Procedures ............................102.6 Compliance.........................................................................................102.7 Documented Audit Trail ......................................................................102.8 Segregation of Duties .........................................................................10

Section 3 – Definitions ..............................................................................11

Section 4 – Tools for Procurement ..........................................................134.1 Sources of Supply ..............................................................................13

Section 5 – The Procurement Process, Explained .................................155.1 Introduction.........................................................................................155.1.1 Procurement Requirements and Limits .......................................155.2 Delegation of Functions......................................................................155.3 The Procurement Process..................................................................155.3.1 Exemptions from Ordering Process ............................................155.3.2 The “Non-Order” Process............................................................165.3.3 Corporate Store Accounts and Purchasing Cards ......................165.3.4 Formal Order Process .................................................................165.3.5 Documentation ............................................................................175.4 Specifications .....................................................................................175.5 The Quotation, Expressions of Interest (EOI) & Tender Processes...175.5.1 Documentation ............................................................................175.5.2 Quotations Process .....................................................................175.5.3 Exceptions to Quotation Process ................................................185.6 Quotations Process ............................................................................185.6.1 Verbal Quotations – order value to $9,999.99.............................185.6.2 Written Quotations – order value ($10,000 to $149,999.99) .......185.6.2.1 Quotation Invitations....................................................................185.6.3 The Quotations Procedures Including Documentation................185.6.3.1 Supplier Quotation.......................................................................185.6.3.2 Council’s Quotation Document....................................................19


5.6.4 Invitation and Closure of Written Quotations...............................195.6.4.1 Quotations Box............................................................................195.6.4.2 Opening and Registering of Quotations ......................................195.6.5 Assessment of Quotation ............................................................195.6.6 Audit Trail Requirements.............................................................19 5.7 Expressions of Interest .......................................................................195.8 Public Tenders....................................................................................205.8.1 Exceptions to Public Tenders Process........................................205.8.2 Tender Types ..............................................................................215.8.3 Preparation of Tender document.................................................215.8.3.1 Conditions of Tendering ..............................................................215.8.3.2 Tender Addenda..........................................................................215.8.4 Specifications ..............................................................................225.8.5 Tender Evaluation Criteria...........................................................225.8.6 Tender Advertising ......................................................................225.8.6.1 Distribution of Tender Document.................................................225.8.6.2 Pre-Tender Briefings ...................................................................225.8.7 Tender Closure............................................................................225.8.8 Tender Lodgement ......................................................................22 5.8.9 Tender Panel...............................................................................225.8.10 Tender Weighting and Opening ..................................................235.8.11 Tender Assessment and Tender Acceptance .............................235.8.12 Advice to Successful Tenderer....................................................245.8.13 Execution of Contract / Agreement .............................................245.8.14 Documented Audit Trail...............................................................24

Section 6 – Responsibilities .....................................................................256.1 General Manager................................................................................256.2 Directors and Managers .....................................................................256.3 Manager, Administration.....................................................................256.4 Manager, Finance...............................................................................256.5 Manager, Legal Services....................................................................256.6 Procurement Coordinator ...................................................................256.7 Staff with Delegations for Purchasing.................................................26

Section 7 – Ordering, Receiving and Payment Process ........................277.1 Introduction.........................................................................................277.2 The Ordering Process ........................................................................277.2.1 Non-order (value less than $5,000.00)........................................277.2.2 Order Method (value $5,000.00 or above) ..................................277.3 The Receiving Process.......................................................................277.3.1 Products ......................................................................................277.3.2 WH&S Compliance......................................................................287.3.3 WH&S Induction ..........................................................................287.3.4 Receiving Process.......................................................................287.4 Authorisation for Payment ..................................................................297.5 Settlement Discounts..........................................................................297.6 The Payment Process ........................................................................297.6.1 Non-Order Process – Receipt of Products ..................................297.6.2 The Formal Order Process..........................................................30


Section 8 – Work Health & Safety ............................................................318.1 Formal Order Statement – Australian Standards ...............................318.2 Quotation / Tender Documentation ....................................................318.3 Risk Analysis / Work Method Statements...........................................318.4 Sun Protection Policy .........................................................................31

Section 9 – Environmental Processes.....................................................32

Section 10 – Statement of Business Ethics ............................................32

Section 11 - Additional Procurement Responsibilities ..........................3311.1 General Procurement of Products and Services ................................3311.2 Consultancies .....................................................................................3311.3 Documentation ...................................................................................3311.4 Financing ............................................................................................3311.5 Advertising..........................................................................................3311.6 Access to Preferred Supplier Agreements .........................................3311.7 Purchasing Card.................................................................................33Flowchart 1 – Attachment A – The Procurement Process .........................34Flowchart 2 – Attachment B – The Quotation Process ..............................35Flowchart 3 – Attachment C – The Tender Process ..................................36Flowchart 4 – Attachment D – Receiving Process .....................................37Flowchart 5 – Attachment E – Procurement of Goods (WH&S) Compliance ..38Flowchart 5A – Attachment F – Services (& Contractors) Procurement....39


A GUIDE TO USING THE MANUAL

SECTION 1 - An OverviewA general overview of the contents of the procurement policy and procedures manual.

SECTION 2 - SSC Procurement Policy and ProceduresAn explanation relating to the scope of the manual.

SECTION 3 - DefinitionsExplains terminology used in this manual.

SECTION 4 - Tools for ProcurementRepresents the starting point in the procurement process including sources of supply and access to such sources.

SECTION 5 - The Procurement Process ExplainedExplains processes used to procure goods and services, up to ordering stage.

SECTION 6 - Responsibilities for council’s Procurement PoliciesExplains delegation of those responsibilities assigned to council Officers in observing the procurement procedures.

SECTION 7 - Ordering, Receiving and Payment ProcessProvides step-by-step processes to be followed in ordering, receiving and payment.

SECTION 8 - Work Health & Safety Compliance (WH&S)Observance of WH&S regulations is mandatory and this section explains the processes.

SECTION 9 - Environmental ProcessesCouncil has a “Green Purchasing Policy”. Explains background and aims.

SECTION 10 - Statement of Business EthicsThe whole of Council and its suppliers are bound by Council’s Statement of Business Ethics, copies of which should be provided to all Council tenderers.

SECTION 11 - Supplemental Procurement ResponsibilitiesAn overview of aspects which affect the way council does business.


FLOWCHARTS

Flowchart 1 Attachment A, The Procurement ProcessCharts the overall steps involved in the quotation / tender process.

Flowchart 2 Attachment B, The Quotation ProcessCharts steps to follow when obtaining quotations.

Flowchart 3 Attachment C, The Tender ProcessCharts steps to follow when inviting tenders.

Flowchart 4 Attachment D, Receiving ProcessCharts steps to follow when receiving goods.

Flowchart 5 and 5A, Work Health & Safety (WH&S) ComplianceCharts steps to be followed in ensuring compliance with WH&S procedures.


SECTION 1: AN OVERVIEW

1.1 IntroductionSutherland Shire Councils’ Purchasing Policy and Procedures were introduced for the purpose of ensuring probity in all of Council’s procurement/payment activities, consistently across the organisation and to ensure compliance with legislation, and regulations relating to such Local Government functions and transparency of decision making.

The previous update to the Policy was in September 2005.

Council’s purchasing system is decentralised whereby delegated purchasing staff located in each Directorate are required to follow certain procedures, in order that probity and best practice are observed, as well as ensuring value for money, accountability and provision of quality goods and services

1.2 ObjectiveSutherland Shire Council is committed to a purchasing policy and continual development of purchasing guidelines which reflect the ideals and requirements of the NSW Premiers Department Office of Public Management, Independent Commission against Corruption (ICAC), Local Government Act, 1993, Work Health and Safety Act, 2011, Work Health and Safety Regulation 2011 and various financial regulations, so that probity can be guaranteed.

The aim of Council’s Purchasing Policy and Procedures manual is to provide a prescriptive to management and staff in the processes required to be carried out in:

quotations expressions of interest the invitation and assessment of various forms of tenders, order requirements receipt of goods & services financial delegations, sourcing goods and services payment processes which need to be observed.

1.3 Work Health and Safety (WH&S) ResponsibilitiesIn addition to the essential needs to observe probity, Council also has a responsibility to observe WH&S processes including assignation of such responsibilities to contractors and sub-contractors. Refer to the WHS Management System for further information.

1.4 EnvironmentalCouncil also has a responsibility to observe Council’s own “Get It Green Purchasing Policy” and all environmental considerations are addressed in this manual. “Environment” is a mandatory criteria for inclusion in all of Councils’ tenders.

1.5 The Policy and ProceduresThe third edition of Council’s Purchasing Policy and Procedures Manual recognises the need to update Council’s current processes, so that “best practice” purchasing can be achieved, resulting in the utmost probity, improved processes, quality products and services and maximum cost savings.


1.6 Conditions of TenderingCouncil’s conditions of tendering can be accessed from Council’s website at www.sutherlandshire.nsw.gov.au Council & the Shire / Public Notices / Tenders & EOI’s.

The terms and conditions include: Payment terms Billing details Acceptance of orders Ability to perform supply Use of sub-contractors Product safety issues Delivery of goods and services Liability issues Warranty Conflicts of interest Inability to perform order. Statement of Business Ethics ETC

http://www.sutherlandshire.nsw.gov.au/


SECTION 2: SSC PROCUREMENT POLICY AND PROCEDURES

2.1 Policy StatementPurpose: To provide direction to management and staff in managing Council’s procurement processes, in order to ensure that Council’s procurement procedures are consistent and to an agreed standard.

To ensure that all procurement, quotation and tender processes are performed to the prescribed standard.

To achieve best practice, workplace reform, probity, improved industrial relations, high standards in work health, safety and rehabilitation (WHS&R) performance and environmental management.

2.2 Scope The Purchasing Policy and Procedures are derived from a review of current procedures, and are drawn from the relevant act, regulations and codes for application by all Council Business Units and departments.Process Owners: Business Units

2.3 ValuesFor the purpose of these procedures, all dollar values quoted are inclusive of G.S.T.

2.4 General PolicyCouncil Staff are required to procure goods and services in accordance with Council’s Purchasing Procedures briefly outlined below, and explained in detail in Councils’ Purchasing Policy and Procedures:

Delegations and authorisationsGoods and Services shall only be purchased by staff authorised to place orders, within the financial delegations approved by Council’s General Manager

Sources of SupplyIn accordance with Council policy, Council staff must order goods and services from Council’s Preferred Suppliers. In the event that a Preferred Supplier Agreement does not exist, first preference must be given to state and local government contracts. Council’s Procurement Coordinator shall be responsible for authorising exemptions to this process.

Quotations/TendersCompetitive quotations and tenders must be invited in accordance with the guidelines provided in Council’s Purchasing Policy and Procedures Manual.

Non – OrdersDelegated staff may order goods and services using the relevant Finance One expenditure account number without producing a Council Purchase Order provided that the order value does not exceed $5,000.00 (G.S.T. inclusive)

Store Accounts and Cards

OrdersAuthorised staff must produce a Council Purchase Order if the order value is expected to exceed $5,000.00 (G.S.T. inclusive)

PaymentPayments and receipt of goods and services shall be processed in accordance with Council’s Purchasing Policy and Procedures Manual.


2.5 Governance of Purchasing Policy and ProceduresCouncil’s Procurement Coordinator has been authorised to govern Council’s Purchasing Policy and Procedures, including provision of all templates and forms relating to quotation and tender processes, management of all preferred supplier agreements, access to State and Local Government Procurement contracts and is the person to whom all enquiries relating to Council’s purchasing processes should be directed.

2.6 ComplianceIt is incumbent upon all Council staff to comply with Council’s Procurement Policy and Procedures and Preferred Supplier Agreements, and all instances of non-compliance shall be reported to Council’s General Manager.

Should staff have reason to complain about a preferred supplier’s performance, such complaints should be lodged with Council’s Procurement Coordinator. Supplier Performance Report forms can be accessed from Compass / Resources & Equipment / Purchasing.

2.7 Documented Audit TrailAs stated at 5.3.5 it is essential that Business Units maintain Purchasing records. It is essential also that all transactions are documented for the purpose of providing an audit trail, especially in cases where any approved exceptions to the prescribed procurement processes need to be explained.

2.8 Segregation of Duties Payment requisitioner cannot be authoriser Two staff involved in any purchase Responsibilities on both requisitioner and authoriser Authoriser must be senior in organisation to requisitioner


SECTION 3: DEFINITIONS

The following definitions relate to terminology given in these procedures that should be read in conjunction with other definitions contained in the Local Government Act 1993, or in the Local Government (General) Regulation 2005. These definitions also incorporate Council’s own terminology.

Accounts Payable The Council department, whose responsibility it is, to process invoices for payment.

Audit Trail A clear and concise record of all transactions which is transparent and in logical sequence to enable a process to be easily followed.

Authorising Officer The person who has been delegated by the General Manager to approve the purchase.

Buyers Guide A document which lists a wide range of products and services available from relevant preferred suppliers.

Consultant Professional individual or organisation providing designs, management, or other services to a principal, contractor, sub contractor, client or supplier.

Contract Agreement for the supply of goods or performance of services in the form of a formal contract or preferred supplier agreement

Contractor Person, corporation or service provider who contracts for the supply of goods or the performance of services

Declaration of Interest and Confidentiality

Conflicts of Interest (both Pecuniary & Non-Pecuniary must be managed by completing the form which must be signed by each member of the tender panel, confirming extent of pecuniary interest. The procedures according to the Conflicts of Interest Policy must be followed.

Delegation The extent of financial authority granted to a Council Officer.

Document Management System (D.M.S.)

A system which provides access to all relevant documentation

Expression of Interest Obtained for the purpose of ‘testing’ the marketplace for information relating to products and services

Formal Contract A contract signed under Council Seal, by the General Manager and Mayor

WH&S Work Health and SafetyLocal Government Procurement (L.G.P.)

A N.S.W. government prescribed procurement group.

Preferred Supplier Agreement

A written Council agreement which confirms preference to a chosen supplier for a specific time period, and includes terms, conditions, specifications and prices.

Probity Integrity, uprightness and honesty.Procurement Coordinator The Council Officer assigned by the General Manager to

ensure that all procurement processes are observed, council is taking advantage of its purchasing power, purchasing is coordinated , utmost probity is practiced and compliance to the policy is occurring. See also clause 2.4

Purchasing Actual buying process, whether placing or transmitting an order orally, in hard copy, electronically via Electronic Document Interchange (EDI) or Electronic Commerce (EC), or buying across the counter. Verbal or written price obtained from suppliers / contractors.


Quotation Represented by price and availability offered by a supplier either verbally or in writing.

Quotations Register A register located within each Council department, which records brief details of all written quotations received.

Requisitioner The Council Officer who actually requests the product or service.

Selection Criteria A list of criteria included in the tender documentation upon which, the tenderers responses are to be judged.

Selection CriteriaEvaluation Score Sheet

A form which tabulates tenderers’ scores complied from responses to Selection Criteria.

Selective Tender A document which contains all relevant Council terms and conditions and specifications, as derived from responses to Expressions of Interest (E.O.I) and directed specifically to E.O.I respondents only.

Settlement Discount A percentage (%) discount off quoted price, offered by suppliers if payment made within nominated time period.

Southern SydneyRegional Organisationof Councils (S.S.R.O.C):

A group of sixteen (16) Councils who participate in regional agreements and programs.

Specifications A full and complete description of the products or services required.

Subcontractor Party that provides a service and/or product to a contractor and/or subcontractor or client.

Tender A formal document which includes relevant Council terms and conditions and specifications and advertised in daily newspapers and on Council’s website.

Terms and Conditions As prescribed for inclusion in all of Council’s quotation/tender documentation.

Weightings The weighing percentages to be allocated to each of the tender selection criteria. Total must be 100%


SECTION 4: TOOLS FOR PROCUREMENT

4.1 Sources of SupplyCouncil procurement staff are able to access a variety of sources of supply, as described below:

Preferred Supplier AgreementsCouncil now has in place more than 200 Preferred Supplier Agreements (P.S.A.’s) which provide for the provision of a wide variety of products and services. These agreements are arranged by Council’s Procurement Coordinator and the Southern Sydney Regional Organisation of Councils (S.S.R.O.C) in liaison with various Council Units. It is Council policy and a condition of the agreement that first preference be given to sourcing products and services under these agreements. Council’s Procurement Coordinator can authorise the use of non-preferred suppliers in accordance with this policy and, in exceptional circumstances. Non-compliance with Council’s policy may result in disciplinary action.

Formal Contract ProceduresFormal contracts are executed for major projects, in lieu of Council orders and preferred supplier agreements. The formal contract is drafted by Legal Services and attached as an annexure, to the tender. Upon Council resolution to accept the tender, and after emailing the successful tender, the formal contract is reviewed by the Unit Manager and sent to Legal Unit for execution of the contract under Council Seal.

Access to Agreement DetailsAll preferred supplier agreements (PSA’s) can be accessed from Compass / Resources & Equipment / Purchasing. Further information can be obtained from the Procurement Coordinator.

Prescribed OrganisationsCertain organisations are recognised accredited providers by the State Contracts Control Board. These organisations are NSW Commerce (Smartbuy), Local Government Procurement (LGP), and Procurement Australia (PA). They conduct tenders on behalf of Local and State Government authorities, taking advantage of bulk buying power. While these contracts are a useful buying tool, they quite often list a panel of contractors whose rates are generally not as competitive as those offered under Council’s P.S.A.’s. Second preference, however, must be given to these contractors. (To access these contracts, log into www.smartbuy.nsw.gov.au or www.lgp.org.au or www.procurementaustralia.com.au (log in details can be obtained from Council’s Procurement Coordinator).

Yellow Pages and Supplier CataloguesThese always offer good alternative sources of supply, in the absence of either Preferred Supplier Agreements or government contracts.

InternetAccessing the internet using the search engine is a recommended source of providers of products and services.

Council’s Procurement Coordinator In the event that procurement staff are unable to locate a supplier of a specific product or service, Council’s Procurement Coordinator will source the product or service on their behalf.

Tenders / Expressions of Interest (E.O.I)Goods and Services can also be sourced by initiating public tender action or inviting expressions of interest, the process for which, is explained at Section 5 of this manual.

http://www.smartbuy.nsw.gov.au/

http://www.lgp.org.au/

http://www.procurementaustralia.com.au/


Council’s StoresStaff should contact Council’s Stores at Bath Road, Kirrawee for general office and hardware needs.

ExceptionsStaff also have the option to purchase goods and services, not included in the above from other suppliers/consultants if suitable products/services are not available from the above.


SECTION 5 THE PROCUREMENT PROCESS, EXPLAINED.(See Flowchart 1 at Attachment A)

Includes: Delegation of Functions “Non – order” process, including store cards Formal Order process Recording Process Specifications Quotation process Expressions of Interest (E.O.I) process Selective Tender process Public Tender process

5.1 Introduction5.1.1 Procurement Requirements and LimitsCouncil’s procurement requirements and limitations are governed by a combination of the Local Government Act (1993), Council’s Purchasing Policy and Procedures and associated legislation. The processes, constraints and limitations are explained herein.

5.2 Delegation of FunctionsCouncil’s General Manager is delegated by Council to authorise expenditure within the limits set by Council. The General Manager can then delegate such authorisation to Directors, Managers and selected staff to a maximum amount of < $150,000.00 per transaction (G.S.T. inclusive) provided Council has resolved to allocate budgets for such expenditure. The General Manager can also determine the extent of financial delegation exercised by other relevant staff. Directors may seek to vary such delegations by seeking the General Manager’s approval via Manager, Legal Services. Council’s General Manager has sole authorisation to pre-approve procurement of consultancy services should the value exceed $20,000.00

5.3 The Procurement Process Goods and Services may be procured by means of either the “non-order” process or the formal order process, depending upon the value of the transaction, as explained below:

5.3.1 Exemptions from Ordering ProcessPurchase Orders are NOT required to be placed for any of those payments listed below.

Insurance-type payments made in relation to damage to third party property Other payments being made to third parties as part of a council contribution eg.

contribution to school for upgrade to sporting ground Section 356 subsidy payments Statutory payments to State and Federal governments, i.e. Board of Fire

Commissioners, Department of Planning and other compulsory payments. Utility payments for street lighting, water, rates, gas Telephone, postage, photocopy charges Employee entitlements – payments to other Councils on transfer of staff Workers Compensation settlements Levies due and payments to professional associations Investments, loan and lease payments Monies collected and payments made on behalf of third parties Investments Land lease payments


Court Judgments Purchases / Sale of Land Recoupment / Transfers of Trust Fund monies Unknown quantity based / consumption-based charges eg tipping fees Crown and Council contracts

Should an occasion arise, whereby staff consider that a payment not listed above, should be exempted from the order process, staff should advise the Procurement Coordinator.

A purchase order MUST be raised for goods / services purchased from: Successful tenderers Lessors State and Federal Contractors

5.3.2 The “Non-Order” ProcessThe non-order” process may be adopted to procure goods and services, provided that the value of a single transaction does not exceed $5,000.00. The relevant Finance One expenditure account number must be quoted to suppliers as the “order reference number”. Ordering Officers must also quote their names and personnel numbers when placing orders.

5.3.3 Corporate Store Accounts and Purchasing CardsCorporate Purchasing Cards, e.g. Bunnings Hardware, are used by nominated authorised Council staff to purchase low value goods on a needs basis. Bunning’s Store Cards are used by a number of Council Units. Each Unit has its own account with Bunnings with variable credit limits ranging from $1,000 to $10,000.

While formal purchase orders are not required, if purchase value < $5,000.00, there are specific guidelines which need to be followed. Refer Compass / Resources & Equipment / Purchasing / Purchasing Procedures.

5.3.4 Formal Order ProcessThe formal order process must be adopted whenever the value of a single transaction is at $5,000.00 (G.S.T. inclusive) or greater, unless exempt (refer 5.3.1). Formal orders MUST be raised, issued and given to the supplier before the service/supply takes place.

Special NotePurchase Orders for annual agreements/contracts, where the value is known, should be raised at the commencement of the financial year so that the commitment is recorded against the budget allocation. Progressive and partial receipting should occur as the goods/services are received.

5.3.5 DocumentationAll documentation relating to quotes, tenders and EOI’s should be saved in DMS preferably at the following location: Corporate Management / Tendering.

5.4 SpecificationsIn seeking quotations/tenders, the technical specifications will be prepared by the Council requisitioner. If the need arises to change specifications prior to the closing date of quotations/tenders, a written “Quotation/Tender Addendum” must be sent to all known respondents. Should specifications be changed after a quotation/tender has been accepted, it is considered mandatory that the relevant Business Unit Manager authorises such changes which must be addressed to the successful contractor in writing. The Business Unit Manager must review all significant contracts and agreements to ensure that specifications are correct before referring such contracts and agreements to the Legal Unit for execution.


5.5 The Quotation, Expressions of Interest (E.O.I.) and Tender ProcessesNote: In all instances when seeking quotations/tenders, preferred suppliers MUST be given preference. If a preferred supplier agreement exists, it is NOT mandatory to seek either competitive quotations nor tenders. However, if multiple agreements exist, it is recommended that multiple quotations be sought from at least three (3) preferred suppliers, given the existence of three (3) agreements. In which case, the written quotation process must be followed (see 5.6.3 “The Quotation Procedures Including Documentation”)

5.5.1 DocumentationTemplates of all quotation/tender documentation can be accessed from Council’s Intranet, Forms and Policies, Policies and Procedures, Tendering.

5.5.2 Quotation Process (See Flowchart 2 at Attachment B)The quotation process and documentation to the obtaining of competitive quotations for all single procurement transactions valued at less than $150,000.00 as follows:

Verbal Quotations – value less than $5,000.00 (G.S.T. inclusive) per single transaction – obtain a single verbal quotation. Note that all verbal quotations must be documented and filed. Wherever possible and practical, written quotations (such as email) should be sought.

Value $5,000.00 to $9,999.99 (G.S.T. inclusive). Obtain a minimum of three (3) verbal or written quotations.Note that all verbal quotations must be documented and filed. Wherever possible and practical, written quotations (such as email) should be sought.

Value $10,000.00 to $149,999.99. Obtain a minimum of three (3) written quotations.

5.5.3 Exceptions to Quotation ProcessExceptions from the requirement to obtain more than one verbal / written quotation can be granted by the Unit Manager or the Procurement Coordinator under the following circumstances:

(i) Goods are a replacement part and a specific make and model is required.

(ii) Standardisation needs – where a specific manufacturer and/or supplier is used for the purpose of achieving standardisation, and/or compatibility

(iii) Urgent requirement – where imminent health and safety is involved.

(iv) Only one source of supply – where the goods or service has unique characteristics.

(v) Preferred Supplier Agreement, State Contract or Local Government Procurement Contract or Procurement Australia Contract in place. It should be noted that it is mandatory that when a preferred supplier agreement exists, the preferred supplier/s must be used. If a panel arrangement exists under Preferred supplier or Prescribed contracts, the quotation process must still apply for single procurement transactions over $10,000.

(vi) Remoteness of locality, extenuating circumstances or unavailability of supply

(vii) Continuing expert services / consulting (GM to approve)

(viii) Unique supplies / venues

In instances where an exemption could apply, details supporting such exemptions must be documented and approved by the Unit Manager.


5.6 Quotations Process5.6.1 Verbal Quotations – order value to $9,999.99 (G.S.T. inclusive)The decision relating to acceptance of verbal quotations is usually based solely on price, as the buying choice is simple and usually predetermined. However, although such may be the case, consideration also needs to be given to quality and WH&S factors. Note that all verbal quotes must be documented and filed.

5.6.2 Written Quotations – order value ($10,000 to $149,999.99) (G.S.T. inclusive)5.6.2.1 Quotation InvitationsA minimum of three (3) written quotations must be invited. Suppliers may be invited to submit their own quotation document, without the need to use Council’s forms for nominated purchases such as white goods, electrical items etc, but it is usually necessary to use Council’s quotation document templates. This requirement applies to all products/services available under “prescribed” contracts where a panel arrangement (multiple suppliers) exists.

5.6.3 The Quotation Procedures Including Documentation5.6.3.1 Supplier QuotationIf a Council quotation document is not required, a simple telephone request to a minimum of three (3) nominated suppliers is sufficient, with the selection to be based upon price, delivery, service and quality. Wherever possible and practical, emailed quotations should be sought. The process MUST be documented.

5.6.3.2 Council’s Quotation DocumentationIf using Council’s quotation documentation, to be completed by the tenderer, it is essential that the document templates already prepared by Council are used, (see 5.5.1) as certain terms and conditions may be mandatory, for example:

Insurance and Workers Compensation Work Health & Safety (WH&S) issues need to be observed Selection Criteria Other terms and conditions must be included for the purpose of protecting Council’s

rights

5.6.4 Invitation and closure of written quotationsQuotations do not need to be advertised. A time period of at least twenty one (21) days should be allowed before quotations close, although, in cases of urgency, this time period can be shortened.

5.6.4.1 Quotations BoxIn the interests of probity, it is essential that all written quotations be directed to a quotation or tender box closest to the responsible officer, NOT to specific Council Officers email addresses. The relevant boxes are located at Council’s Eton Street, Administration Building, Reception (Tender / Quotation Box) Council Depot, Building Works, Unit 2 (Quotation Box) and Kirkby House, Level 2 (Property). Email addresses are as follows:

Eton Street: [email protected] Council Depot: [email protected] Kirkby House: [email protected]

5.6.4.2 Opening and Registering of QuotationsAll quotations shall be opened by at least two (2) Council Officers. Quotations to be registered on the relevant form “Tender Opening Record” and signed.

Quotation closing time and date Respondent Product / Service description(The “Tender Opening Record” must be recorded in the D.M.S. or sent to Records department to be recorded)

mailto:[email protected]




5.6.5 Assessment of QuotationQuotations must be assessed by at least two (2) representatives of the Business Unit and an independent officer, the results recorded, complete with signatures. When assessing quotations, the reason/s for selection MUST be documented for audit trail purposes.

5.6.6 Audit Trail RequirementsIn addition to the above, all documentation must be saved to DMS. Copies of all written quotations received must also be saved to D.M.S. See also 5.3.5

5.7 Expressions of InterestExpressions of Interest (E.O.I) are usually invited as a precursor to quotation / tender action, for the purpose of obtaining information from prospective tenderers which will assist in preparing specifications for the purpose of inviting selective tenders or selective quotations in the future. E.O.I templates can be accessed from the Intranet (see 5.5) or can be obtained from Council’s Procurement Coordinator. Processed in a similar manner to Tenders and Quotations. See below. If it is decided to proceed with procurement of goods or services as a result of an E.O.I. it is mandatory to invite selective or open tenders / quotations.

5.8 Public Tenders (See Flowchart 3, Attachment C)As per Local Government Act 1993 – Sect 55(1) and in accordance with Department of Local Government Tendering Guidelines:

(1) A Council must invite tenders before entering into any of the following contracts or agreements:

(a) a contract or agreement to carry out work that, by or under any Act, is directed or authorised to be carried out by the Council, the value of which is expected to be $150,000 or greater.

(b) a contract or agreement to carry out work that, under some other contract, the council has undertaken to carry out for some other person or body,

(c) a contract or agreement to perform a service or to provide facilities that, by or under any Act, is directed or authorised to be performed or provided by the Council,

(d) a contract or agreement to perform a service or to provide facilities that, under some other contract, the Council has undertaken to perform or provide for some other body,

(e) a contract for the provision of goods or materials to the Council (whether by sale, lease or otherwise),

(f) a contract for the provision of services to the Council (other than a contract for the provision of banking, borrowing or investment services),

(g) a contract for the disposal of property of the Council, (h) a contract requiring the payment of instalments by or to the Council over a period of 2 or

more years(i) any other contract, any contract of a class, prescribed by the regulations.

5.8.1 Exceptions to Public Tender ProcessAs per Local Government Act 1993 – Sect 55(3) the public tender process does not apply in the following instances:

(a) subject to the regulations, a contract for the purchase of goods, materials or services specified by a person prescribed by the regulations made with another person so specified, during a period so specified and at a rate not exceeding the rate so specified

(b) a contract entered into by a council with the Crown (whether in right of the Commonwealth, New South Wales or any other State or a Territory), a Minister of the Crown or a statutory body representing the Crown

(c) a contract entered into by a council with another council (d) a contract for the purchase or sale by a council of land


(e) a contract for the leasing or licensing of land by the council, other than the leasing or licensing of community land for a term exceeding 5 years to a body that is not a non-profit organisation (see section 46A)

(f) a contract for purchase or sale by a council at public auction (g) a contract for the purchase of goods, materials or services specified by the State

Contracts Control Board or the Department of Administrative Services of the Commonwealth, made with a person so specified, during a period so specified and at a rate not exceeding the rate so specified

(h) a contract for the employment of a person as an employee of the council (i) a contract where, because of extenuating circumstances, remoteness of locality or the

unavailability of competitive or reliable tenderers, a council decides by resolution (which states the reasons for the decision) that a satisfactory result would not be achieved by inviting tenders

(j) contract for which, because of provisions made by or under another Act, a council is exempt from the requirement to invite a tender

(k) a contract made in a case of emergency (l) a contract to enter into a public-private partnership (m) if a council has entered into a public-private partnership-a contract entered into by the

council for the purposes of carrying out a project under the public-private partnership (but only to the extent that the contract is part of the project that has been assessed or reviewed under Part 6 of Chapter 12)

(n) a contract involving an estimated expenditure or receipt of an amount of less than $150,000 or such other amount as may be prescribed by the regulations

(o) a contract that is an environmental upgrade agreement (within the meaning of Part 2A) (p) a contract or arrangement between a council and the Electoral Commissioner for the

Electoral Commissioner to administer the council’s elections, council polls and constitutional referendums.

5.8.2 Tender TypesThere are two (2) types of tenders invited by Council:

Selective Tender – prepared after receipt of Expressions of Interest (E.O.I), forwarded to selected E.O.I. respondents and do not need to be advertised

Public Tenders – must always be invited if anticipated cost is $150,000 (G.S.T. inclusive) or greater, but may be invited if the market place needs to be tested. The market should be tested at least every three (3) years. The following steps need to be followed:

5.8.3 Preparation of Tender documentIt is preferable to use Councils’ template document which can be accessed from Compass / Policies & Forms / Purchasing or by contacting Council’s Procurement Coordinator and this document may be adapted to individual needs

5.8.3.1 Conditions of TenderingCouncil’s standard Conditions of Tendering can be accessed from Compass / Policies & Forms / Purchasing.

5.8.3.2 Tender AddendaA Tender Addendum may need to be created at any time after the tender has been advertised. The addendum advises of any changes to the tender document (see 5.8.7.1)

5.8.4 SpecificationsThe specifications and associated WH&S requirements relating to the particular product/service are incorporated into the template document by the relevant Council requisitioner.


5.8.5 Tender Evaluation CriteriaTender Evaluation Criteria, is a mandatory requirement and must include “Environment” and “Price”, and while suggested criteria are included in templates, the Council requisitioner shall determine the criteria dependent upon needs.

5.8.6 Tender AdvertisingTenders must be advertised in the Sydney Morning Herald, in the Local Government Tenders Section (arranged by Council’s Communications Unit), in the St George Sutherland Leader, on Council’s website and Tenders Online.

5.8.6.1 Distribution of Tender DocumentTender documents should be made available to prospective tenderers via Tenders Online only. This produces an electronic record of all downloads and allows transmission of addenda to all registered parties. A record must be kept of any other form of tender document transmission.

5.8.6.2 Pre-Tender BriefingsPre-tender briefings are arranged when considered relevant for example, when site inspections are required, when respondents are expected to include contractors who are not familiar with tender processes, and are considered mandatory whenever a contracted service has not previously been opened to competition. Attendance must be documented and minutes of meeting kept and distributed to attendees.

5.8.7 Tender ClosureA minimum period of twenty one (21) days must be allowed for closure, unless the requirement is of such extreme urgency that the tender closing period needs to be shortened. Reasons for a shortened tender period must be documented.

5.8.8 Tender LodgementAll tenders must be lodged in Council’s Tender / Quotation Boxes located at Eton Street, Bath Road Depot and Kirkby House (see 5.6.4.1) (or as advised in tender documentation)

5.8.9 Tender Panel A tender panel comprising a minimum of three (3) Council Officers, including the requisitioner must attend the tender opening. It is mandatory requirement that a Council Officer who is independent of the Requisitioning Business Unit, e.g. Procurement Coordinator, be a member of the tender panel. (See below)

5.8.10 Tender Weighting and OpeningThe tender evaluation criteria must be weighted and agreed to by the tender panel for tender scoring purposes, immediately prior to the tender opening.

Tender openings must be conducted in accordance with Local Government (General) Regulation 2005 – Reg 175.

5.8.11 Tender Assessment and Tender AcceptanceThe following steps need to be observed in order, when assessing tenders:

Tender Panel RepresentativesThe Tender Panel must include two (2) representatives of the requisitioner and at least one (1) other officer from another Unit (e.g. Council’s Procurement Coordinator)

Conflict of Interest Members of the tender panel must be aware of Council’s Conflict of Interest policy and manage this accordingly. This includes both pecuniary & non-pecuniary interests.


It is a mandatory requirement that each member of the tender panel sign a “Conflict of Interest and Deed of Confidentiality” form prior to assessing the tenders. This form can be accessed from Compass / Resources & Equipment / Purchasing / Tender Process.

Price ComparisonsThe Tender Panel will meet after Tender closure for the purpose of assessing tenders. It is essential that a price comparison table be prepared. Assistance in scoring tendered prices can be provided by Council’s Procurement Coordinator who can arrange for a scoring formula to be applied.

Tender ScoringTenders shall be scored on the basis of the responses to the tender selection criteria, using the predetermined weightings. The highest scoring tenders shall be recommended for acceptance. Templates to be used as scoring guides and “Scoring Bands” can be accessed from Compass / Resources & Equipment / Purchasing / Tender Process.

Although not a mandatory requirement, it is suggested that the best method used in assessing tenders is to use the “Tender Assessment” template and suggested “Scoring Bands” and for each panel member to assess the tenders individually, then following individual assessments, the tender panel can meet to debate individual scores and apply an average score to each tender.

Council ResolutionThe tender panel convenor will prepare a report to the relevant Council committee, for acceptance of the tender panel’s recommendations by Council.

The Council Minute Number resolving acceptance of the Tender must be included on any invoice payments against the Tender so that this can be logged against the Supplier/payment in the Finance 1 system.

The Council resolution should specify delegations to an appropriate council officer to authorise payments under the Tender.

5.8.12 Advice to Successful TendererUpon receipt of the Council Resolution, the responsible Council Officers shall email the successful tenderer/s advising that the tender/s has / have been accepted.

5.8.13 Execution of Contract / AgreementThe contract / agreement shall be reviewed by the Unit Manager and then sent to Legal Unit for checking and execution.

5.8.14 Documented Audit TrailIn ALL of Councils’ dealings with regard to the invitation of quotations, expressions of interest and tenders, all processes and reasons for decisions must be documented for the purpose of ensuring a transparent audit trail. Records of this documentation must be kept and maintained in the relevant DMS location.


SECTION 6 RESPONSIBILITIES FOR COUNCIL’S PROCUREMENT POLICIES

The responsibilities associated with ensuring that the whole of Council adhere to Council’s procurement policies and procedures are summarised below:

6.1 General ManagerCouncil’s General Manager shall be held responsible for authorisation of delegations to relevant Council staff, overall compliance with Council’s Procurement Policy and Procedures and authorisation of all purchases where delegations to relevant staff are insufficient.

6.2 Directors and ManagersCouncils Directors and Managers shall be responsible for compliance with Council’s Procurement Policy and Procedures and ensuring appropriate control and accountability is maintained in all procurement transactions including WH&S, Environmental, training, probity and budget management. Managers must review all significant contracts or agreements to ensure any agreed changes to specifications are made before sending to Council’s Legal Unit for checking and execution of the contracts or agreements.

6.3 Manager, AdministrationCouncil’s Manager, Administration shall be responsible for maintaining records of delegations and ensuring compliance by all Council staff, with the following:

Council’s Delegations and related purchasing / payment Authorising Lists

6.4 Manager, FinanceCouncil’s Manger, Finance shall be responsible ensuring compliance by all Council staff with the following:

Investment Policy Finance 1 Purchasing and Accounts payable modules Exception reporting to ensure overall compliance with Purchasing Policy

6.5 Manager, Legal ServicesCouncil’s Manager, Legal Services shall be responsible for maintaining records of delegations and ensuring compliance by all Council staff, with the following:

Assist and advise on the use and application of contract documentation. Arrange for relevant formal contracts to be executed under the Common Seal of

Council, in the presence of the Mayor and General Manager, or as delegated by same.

6.6 Procurement CoordinatorThe Procurement Coordinator shall be responsible to the Manager, Finance for maintaining Council’s Procurement Policy and Procedures, ensuring compliance to these procedures, by all Council staff, and reporting issues of non-compliance to Council’s General Manager. The Procurement Coordinator shall also be responsible for administering all of Council’s Preferred Supplier Agreements, as well as ensuring currency of quotation, tender and assessment templates.The Procurement Coordinator will refer all significant agreements to the relevant Business Unit Manager for review and on forwarding to Legal Unit for checking.

6.7 Staff with Delegations for Purchasing Ensure Purchase Order and payment authorisers/approvers are more senior to

requisitioners Ensure that at least 2 staff have been involved in the requisitioning and authorisation of

the Purchase Order/payment Do not exceed GM approved Delegation Ensures price checks have been completed and are accurate Ensure that payment is in accordance with the relevant quotation, agreement, contract,

etc.


That Purchase orders are raised and sent prior to engaging supply/service and goods delivery

Ensure council Resolution Number is included on invoice for Council adopted expenditure.

Indicate if an invoice is exempt from a Purchase Order and ensure that this exemption is accordance with Section 5.3.1 of this Policy

Ensure that Purchase orders and payments are within budget allocation adopted by Council

Ensure that the supply has been received and is for Council purposes Payment is correctly costed to a nominated account


SECTION 7 ORDERING, RECEIVING AND PAYMENT PROCESS

7.1 Introduction The following step-by-step processes describe what action needs to be taken from the time that the need arises to the time that the payment is finalised.

7.2 The Ordering Process (See also flowchart 1 at Attachment A)External suppliers of goods and services can be engaged by using either the “non-order” process or the formal order process, depending upon the dollar value of the purchase as described below: (Note exemptions at Section 5.3.1)

7.2.1 Non-order – value less than $5,000.00 (G.S.T. inclusive) Step 1 – If prices/rates not known via Preferred Supplier Agreement or State Contract,

obtain a single verbal quotation, or competitive quotations from preferred suppliers Step 2 – obtain approval from delegated officer to proceed with purchase Step 3 – document quotation details in the relevant DMS location Step 4 – engage supplier using the relevant account number as the “order reference

number”. Step 5 – receive goods or services and invoice Step 6 – If using a preferred supplier, ensure that rates are equal to, or less, than those

shown in the preferred supplier agreement. Price check ALL invoices Step 7 – stamp invoice with “accounts payable” stamp and ensure invoice signed by

requisitioner and authorising officer. Original Invoices (not copies or Statements) should only be used

Step 8 – send invoice to Councils’ accounts payable department for payment. Special note ref payment: process urgently if “settlement discount applies”.

7.2.2 Order method – value $5,000.00 (G.S.T. inclusive) or above (See also section 5.5.2, where Quotation Process explained)

Order value $5,000 - $9,999.99 (G.S.T. inclusive)If no preferred supplier agreement or state contract, obtain minimum three (3) verbal quotes. Document quotation details in purchasing folder.

Order value $10,000 - $149,999.99 (G.S.T. inclusive)Obtain minimum three (3) written quotes

Order value $150,000 (G.S.T. inclusive) or greater. Public tender process applies – refer 5.8 to 5.8.15

All invoices over $5,000.00 require a Council Purchase Order (exceptions apply – refer 5.3.1) For instruction on how to create purchase order refer Compass / My Learning / Train Yourself / T1 Financials/ SSC Purchasing Officers Training Manual.

7.3 The Receiving Process (See Flowchart 4, Attachment D)7.3.1 ProductsThe following procedure relates to the receipt of all products at all Council locations:

7.3.2 WH&S ComplianceThis procedure is to be read in conjunction with Section 8, “Work Health & Safety (WH&S) Compliance” and with Council’s WH&S policy. Refer Compass / OHS / OHS Management System.

7.3.3 WH&S InductionAll contractors employed on Councils’ worksites MUST be WH&S inducted by the nominated Council Superintendant, by means of completing the form “Statement of WH&S Responsibilities,


Authorities and Accountability for Contractors” which can be accessed at Compass / OHS Management System / Forms & Tools / CSP 1 F8.

7.3.4 Receiving Process Step 1 – Supplier’s vehicle arrives at delivery location

Vehicle parks in allocated parking bay as directed by the Requisitioning Officer

Step 2 – Driver presents documents, Requisitioning Officer checks documents and: determines that load is for Sutherland Shire Council determines that load is at the correct Council location determines Council order number determines number of parcels or quantity of goods is correctly identified on the

supplier’s delivery docket / invoice determines nature of product, i.e. whether flammables? Size of load? Weight of

load?

Step 3 – Requisitioning Officer prepares to unload vehicle ensure that correct Personal Protective Equipment (PPE) is being worn selects the correct material handling device, if required if forklift is required, ensures that safe standard operating procedures are adopted.

Step 4 – Inspection of Products Requisitioning Officer compares product description and quantity with ordered

description and quantity. Requisitioning Officer counts products Requisitioning Officer checks for compliance of products with regard to the WH&S

needs. That is, hazardous and flammable liquids to be properly labelled and identified in accordance with Material Safety Data Sheets (MSDS) and other products must be labelled as being complaint with recognised Australian Standards, where relevant.

Step 5 – Acceptance of ProductsIf products comply with the order, the Requisitioning Officer will complete the required actions and stamp the delivery docket / invoice and sign for acceptance as sample below:

Requisitioning Officer to sign

Step 5 (alternative) Products RejectedIn the event that the Requisitioning Officer discovers an anomaly, such as incorrect product, faulty product, insufficient labelling or apparent non-compliance, the Requisitioning Officer shall reject the products, place the products in quarantine and advise the supplier accordingly.

7.4 Authorisation for Payment


The Requestioning Officer must not also be the Authorising Officer, even though the requisitioner may have a financial delegation. It is a mandatory requirement that invoices show two different signatories and, that the Authorising Officer holds the necessary financial delegation

7.5 Settlement DiscountsSpecial attention needs to be given to expediting payments should settlement discounts apply. A number of Council agreements provide for suppliers to apply a discount for early payment, within periods ranging from 7 days to 45 days. Therefore, priority needs to be given in such cases, to ensuring early payment so that these discounts can be realised (refer to Preferred Supplier Agreements in Compass).

7.6 The Payment Process7.6.1 “Non-order” Process (See Section 5 – The Procurement Process Explained)Receipt of Products

Upon receipt and acceptance of those products ordered under the “non-order” process, the following action shall be taken:

Completion of Delivery DocketIf a delivery docket is provided with the products, with invoice to follow the Requisitioning Officer will stamp and sign the delivery docket.

(See 7.3, Receiving Process) and will hold the delivery docket in the departments Purchasing Folder, pending receipt of the invoice.

Completion of InvoiceThe following action will be taken when the invoice has been received for accepted products:

Stamp invoice as below:

Tick “Non-order” Enter correct account number, having confirmed that funds are still available and

that the same account number has been used as the “order reference number” at date of order.

Requisitioner to complete required actions and sign invoice Invoice to be authorised by financial delegate and attach Delivery Docket (if

applicable) If settlement discount applies arrange urgent delivery to Accounts Payable. Invoice to be processed by Accounts Payable. Accounts Payable to ensure that the authorising signatory has a financial

delegation.

7.6.2 The Formal Order ProcessThe same process as that applied to “non-orders” should be also applied to formal orders, except as follows:

Following acceptance of the products / services and after stamping of the invoice, the authorising officer shall enter the relevant order number on the invoice and shall receive


the order via the Finance One System, “Purchase Order Delivery”. (Special Note: Checks should always be made in order to confirm the existence, or otherwise of a formal order in the Finance One system, so that duplication of financial commitment can be avoided.)


SECTION 8 WORK HEALTH AND SAFETY (WH&S) COMPLIANCE (SEE FLOWCHARTS 5 & 5A)

The WH&S responsibilities associated with the procurement process are wide and varied and there is an essential need to ensure compliance with Council’s stated WH&S policies, requirements and specifications which are fully explained in Council’s WH&S Management Systems Manual (refer Compass / OHS) and summarised below:

8.1 Formal Order Statement – Australian StandardsOne of the most important requirements of Council’s WH&S policy is to ensure that all products / services purchased by Council meet and comply with Australian Standards. A statement confirming this requirement appears at the bottom of every printed order and it is incumbent upon the Requisitioning Officer to ensure compliance.

8.2 Quotation / Tender DocumentationAll quotation and tender documentation must make provision for inclusion of WH&S Requirements as follows:

Insurances and Workers CompensationCouncil policy requires that all contractors carry public liability insurance to a value of a minimum of $20M and that all contractors are covered for Workers Compensation.

Contractors and Subcontractors vehicles and plant must also be registered and insured while working on Council sites. Therefore, it is essential that quotation and tender documentation include these requirements and that WH&S needs represent one of the selection criteria, in the documentation, especially when work on Council sites is specified. In the case of Preferred Supplier Agreements the Procurement Coordinator is responsible for ensuring currency of insurances.

8.3 Risk Analysis / Work Method StatementsIt is incumbent on Council’s Managers and Supervisors, including contractors and sub-contractors to ensure that Risk Analyses and Work Method Statements are completed for each project completed on behalf of Council.

It is essential therefore, that quotation and tender documentation include these requirements.

8.4 Sun Protection PolicyCouncil’s Sun Protection Policy explains the need for protective clothing and equipment to be worn / used by all relevant Council employees, contractors and sub-contractors. This policy should be reinforced via all quotation and tender documentation. Council’s Sun Protection Policy can be accessed at Council’s Intranet, Safety On Line, Safety Instructions.


SECTION 9 ENVIRONMENTAL PROCESSES

Sutherland Shire Council has adopted a “Green Purchasing Policy” which is a procurement strategy designed in support of sustainability and the environment and raises awareness of these important aspects with the end user, the purchaser and the supplier. Council is also a member Council of the Sustainable Choice Program sponsored by NSW Commerce.

Mission Statement

“Our mission is to bring about actual change in practice which will see Councils having consideration of all aspects of sustainability prior to making purchasing decisions.

Environmental impact considerations will form part of product / service evaluations. Our Councils will also endeavour to develop strategies with suppliers to achieve the best possible environmental outcome, as is our practice for achieving the desired economic outcomes”.

In support of the “Green Purchasing Policy”, Council has formulated a series of questionnaires, designed for the purpose of promoting environmental change in the workplace, as follows:

(i) Supply of Materials(ii) Provision of Services(iii) Maintenance(iv) Construction

Questionnaires relating to the relevant product / service must be included in all tender documentation and “Environment” must represent one of the selection criteria. Relevant questionnaires can be accessed from the Intranet, Forms and Policies, Policies and Procedures, Tendering.

SECTION 10 STATEMENT OF BUSINESS ETHICSCouncil’s employees and its service providers / customers are bound by a Statement of Business Ethics adopted by Council on 7 February 2005. This requires probity in all dealings including those conducted with prospective and / or successful Service providers. Council has adopted the Statement to ensure that functions are undertaken efficiently impartially and with integrity. (Copies of the Statement of Business Ethics and further information, are available on Compass / Policies & Forms.

Conniving and / or inducing a breach of the Statement may constitute grounds for termination of the Contract.

Prospective tenderers are therefore required to disclose any affiliation or association with Council that could be deemed to constitute a material conflict of interest.


SECTION 11 ADDITIONAL PROCUREMENT RESPONSIBILITIESIn addition to the aforementioned processes, there are supplemental procurement responsibilities and aspects which should be considered, as follows:

11.1 General Procurement of Products and Services (In-house availability)Council staff need to ensure that the required product or service is NOT available in-house, before commencing the external procurement process. Internal sources of Council products and services include:

Stores – General items including, hardware, electrical, paper, cleaning products etc Fleet – all plant and vehicles are purchased and maintained by Operational Support Telecommunications – All telecommunications are purchased by Council’s

Administration and Governance department. Metal Fabrication – Council’s Workshops can provide a metal fabrication service Council’s Sign Shop – Building Works Unit are able to provide a sign service. Other internal Council services.

11.2 ConsultanciesCouncil’s General Manager must approve employment of ALL consultants, where value of proposed consultancy is $20,000.00 (G.S.T. inclusive) or greater.

11.3 Documentation While the majority of prescribed templates can be accessed from Council’s D.M.S., Council’s Procurement Coordinator can assist with preparation of quotation and tender documentation.

11.4 FinancingAll enquiries relating to the financing of procurement and leases, should be directed to Council’s Manager, Finance.

11.5 AdvertisingAll Tender and E.O.I advertising is arranged by Council’s Communications Unit.

11.6 Access to Preferred Supplier AgreementsSutherland Shire Council and SSROC Preferred Supplier Agreements can all be found in Compass / Resources & Equipment / Purchasing / Preferred Suppliers. Details of Local Government Procurement (LGP), Procurement Australia (PA) and Department of Commerce (Smart Buy) can be obtained by contacting the Procurement Coordinator.

11.7 Purchasing CardCouncil staff may use a Purchasing (Credit) Card only if approved by Council’s General Manager.

EnquiriesAll enquiries relating to this manual and procurement processes, should be directed to Council’s Procurement Coordinator, Bruce Renneberg, Phone 9710 0203 or email [email protected]


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Flow chart 1 : Attachment A, The Procurement Process – Step by Step*Note – all amounts are GST - inclusive

Use preferred supplier / LPG / State contract

$150,000 and over

NoYes

Goods and/or Services to be purchased externally (Dollar $ values determines next step)

Up to $5,000 $5,000 - $10,000 $10,000 - $149,999

Non-order method of payment acceptable A formal order within Council’s financial system must be raised

Is a supply agreement /State or L.G.P. contract in place Is a supply agreement /State or L.G.P. contract in place Is a supply agreement/State or L.G.P. contract in place

Contact Procurement Coordinator to determine if Preferred Supply Agreement is appropriate

Is this good / service purchased often (more than twice in 3 months)

Obtain 3 verbal / written quotes **

Obtain 3 written quotes **

Gain approval from delegated officer to proceed with purchase

NoYes

Contact Supply Manager to ascertain if a Preferred Supplier Agreement is appropriate

$1 - $1,000 obtain 1 verbal quote$1,001 - $4,999 obtain 3 verbal / written quotes

Can Goods and/or Services to be purchased be supplied by an in-house provider?

NoYes

Engage in-house service provider

NoYes


NoYes



NoYes


NoYes NoYes NoYes




obtain 1 documented verbal or written quote(use template)

Obtain 3 documented verbal/written quotes **(use templates)

Obtain 3 written quotes ** / invite tenders

** Exemptions may apply – see Section 5.5.3

Formal tenders to be invited(use templates)

Is a supply agreement/State or L.G.P. contract in place

Use preferred supplier / LPG/ State contract

NoYesIs this good / service purchased often (more than twice in 3 mths)

YesNo

35

Up to $4999

Obtain one verbal quotation

$5000 - $149,999.99

$10,000 or above

Obtain 3 verbal quotes

Obtain 3 written quotes

Gain approval to proceed from delegated Officer

No

Enter order via Finance One

Refer order to delegate, for authorisation

Place order and receive goods / services and if relevant, WH&S induct contractor

Stamp and sign invoice

Refer for payment – urgent if disc. applies

Exemptions may apply.

Flow Chart 2 : Attachment B, The Quotation Process – Step by Step (Section 5)

36

Gain approval from delegated officer to proceed with purchase

Prepare tender documentation using Council’s Tender templates at D.M.S. Corporate Management, Procedures, Finance Unit Procedures and Forms

Advertise tenders allowing min. 21 days for closure

Prepare tender weighting form Prepare tender scoring form Prepare Declaration of Pecuniary Interest & Deed of

Confidentiality

Weight tender selection criteria immediately prior to tender opening. Tender panel to sign weighting form.

Open tenders with minimum of 3 Officers in attendance. List names of tenderers on “Tender Opening Record” and sign.

Tender panel to meet to: Sign Declaration of Pecuniary Interest & Deed of

Confidentiality Score tenders using Weighting form, tender assessment

templates and “Scoring Bands”

Tender panel to sign off on recommendation

Prepare report to committee

Council resolution to accept recommendation and sign under common seal

Produce order / sign formal contract agreement, and advise unsuccessful tenderers

Prepare specifications and complete risk assessment

Relevant Council Officer to advise successful tenderer/s of acceptance via letter of award and to refer contract or agreement to Business Unit Manager for review, prior to on forwarding to Legal Unit for checking and execution

Flow chart 3: Attachment C - The Tender Process – Step by Step (Section 5)

** Exemptions may apply .

37

Flow chart 4: Attachment D – Receiving Process (See Section 7)

Supplier’s vehicle arrives at delivery location and parks in allocated bay

Driver presents documents for checking by Requisitioning Officer

Requisitioning Officer unloads vehicle

Requisitioning Officer inspects products

Requisitioning Officer accepts products, stamps delivery docket/invoice and signs for acceptance

Requisitioning Officer rejects products, places products in quarantine and advises supplier

Products AcceptableProducts Not Acceptable

38

Category 2Conduct Hazard ID &

Risk Assessment

Define WHS requirements and prepare WHS specification in

agreement/tender documentation or purchase contract

Raise purchase requisition & purchase order

documenting WHS specifications with successful supplier

Goods rejectedQuarantined & contact supplier

Receipt of GoodsInspect & verify compliance

with purchase order or agreement contract WHS

requirements specified

Goods AcceptedAnd released to the workplace for use

Identified need for the purchase of

new Goods

Review suppliers’ submissions, select successful provider

Goods acceptedAnd released to the workplace for use

Category 1Raise Purchase documentation

Receipt of GoodsInspect and verify compliance with purchase order

Flowchart 5 – Attachment E – Procurement of Goods, Work Health & Safety (WH&S) Compliance

39

Flowchart 5A – Attachment F - SERVICES (& CONTRACTORS) PROCUREMENT (Work Health & Safety (WH&S) Compliance

Tenderer/Supplier submission evaluation

ie Contract Safety Plan, SWMS, WHS past history

Award Contract/Agreement to successful provider &

integrate CSP into project

Identify need to purchase

new services

Conduct HazardIdentification & Risk

Assessment(Apply table 1)

Define & document WHS requirements in tender/purchase documentation or General Site Rules

Monitor & review provider’s performance at

meeting defined WHS requirements/specification

File all documented WHS performance evaluation and

compliance monitoring records of service provider,

eg risk assessments, SWMS, site/contractor inspections, etc.{For future tender evaluations}

WH&S induct contractor via form “Statement of WH&S Responsibilities Authorities and Accountability for Contractors”

Documents

PROCEDURES PURCHASING POLICY AND - Sutherland …€¦ · 1 Manager – Corporate ... 2.5 Governance of Purchasing Policy and Procedures ... Responsibilities for council’s Procurement