SP103 - City of Brisbane · Web viewSP103 PROCUREMENT POLICY AND PLAN 2018-19 OVERVIEW Brisbane City Council’s (Council) Procurement Policy and Plan 2018-19 sets out: (a)the principles,

SP103 PROCUREMENT POLICY AND PLAN 2018-19

OVERVIEWBrisbane City Council’s (Council) Procurement Policy and Plan 2018-19 sets out:

(a) the principles, including the sound contracting principles, that Council will apply in 2018-19 for purchasing goods and services

(b) the types of contracts that Council proposes to make in the financial year

(c) the principles and strategies for performing the contracts

(c) a policy about proposed delegations for the contracts

(d) a market assessment for each type of contract

(e) the contracts that Council considers will be significant (a significant contract) having regard to the market assessment

(f) a policy about the making of a Significant Contracting Plan

(g) the procedures for how Council is to carry out all contracts.

It includes the annual procurement policy prepared in accordance with section 190 of the City of Brisbane Regulation 2012 (the Regulation), the contracting plan required by section 210 of the Regulation, and the contract manual required by section 212 of the Regulation.

DEFINITIONSIn this Procurement Policy and Plan:

(a) “Better Brisbane Proposal” is as defined in the Better Brisbane Proposals Policy at section 1.13(c)

(b) “Corporate Procurement Arrangement” or “CPA” is as defined in at section 1.11

(c) “Post-market approval” is as defined at section 1.14(a)

(d) “Pre-market approval” is as defined at section 1.14(a)

(e) “Select Sourcing” is defined at section 3.3

(f) “Significant Contract” is defined at section 1.14(b)

(g) “Social Procurement” is as defined at section 2.4

(h) “Sole Sourcing” is defined at section 3.3

(i) “Sourcing” is as defined at section 1.5(a)

(j) “Sustainable Procurement” is as defined at section 2.1

(k) “Strategic Partner” is as defined at section 1.13(b)

(l) “Value for Money Methodology” is as defined at section 1.9

(m) “Zero Harm” is defined in Council’s Zero Harm Policy.

APPLICABILITYThis Procurement Policy and Plan applies to any procurement activity undertaken by Council.

RM: CA18/635647 Date printed 17 May 2023

APPROVING AUTHORITYCouncil on 28/08/2018

POLICY OWNERChief Procurement Officer, Strategic Procurement Office, Organisational Services

RELATED INFORMATIONBrisbane VisionCorporate PlanCorporate Sustainability PolicySP200 Procedures for Procurement and Disposal AP200 Donations PolicyContract Management FrameworkSupplier Relationship Management FrameworkCrime and Corruption Commission - Corruption in Focus guideZero Harm Policy

REVIEW DATE27/08/2019

http://www.ccc.qld.gov.au/corruption-prevention/corruption-in-focus

https://www.brisbane.qld.gov.au/about-council/governance-strategy/vision-strategy/sustainability-policy

https://www.brisbane.qld.gov.au/about-council/council-information-rates/news-publications/corporate-plan-2016-17-2020-21-2017-update

https://www.brisbane.qld.gov.au/about-council/governance-strategy/vision-strategy/brisbane-vision

POLICYCONTENTS:1. STRATEGIC PROCUREMENT AND CONTRACTING APPROACH

1.1. Principles and policy

1.2. Strategic Procurement Office

1.3. Heading in the right direction

1.4. Category Management

1.5. Category planning and market assessments

1.6. Sourcing classification

1.7. Annual sourcing plans

1.8. Seven-step sourcing process

1.9. Value for money methodology and selection

1.10. Contract durations

1.11. Corporate Procurement Arrangements

1.12. Contract Management

1.13. Engaging with industry to identify and implement innovation

1.14. Governance

1.15. Training capability and competencies

1.16. Complaints process

2. SUSTAINABLE PROCUREMENT POLICY

2.1. Sustainable procurement definition

2.2. Principles and objectives

2.3. Environmental procurement policy

2.4. Social procurement policy

2.5. Construction workforce policy

2.6. Zero Harm in procurement

2.7. Applying sustainable procurement in Council

2.8. Support for local suppliers

3. CONTRACT MANUAL

3.1. Tenders, proposals and quotes for goods, services and works

3.2. Exemption from tenders, proposals and quotes

3.3. Sole or Select sourcing

3.4. Short listing

3.5. Negotiations

3.6. Acceptance of a tender, proposal or quote

3.7. Disposal of goods and acquisition or disposal of land

3.8. Publishing details of contracts worth $200,000 or more

4. MAJOR PROCUREMENTS EXPECTED TO COMMENCE IN 2018-19

Schedule A – General exemptions from Council’s standard quotes, tenders and proposals processSchedule B – Forward Contracting Schedule for Goods, Services and Construction 2018-19Schedule C – Forward Disposal Schedule 2018-19

1

1. STRATEGIC PROCUREMENT AND CONTRACTING APPROACH

1.1 Principles and policy(a) Sound Contracting Principles

Council applies sound contracting principles to its contracting activities via this Procurement Policy and Plan (PPAP). The sound contracting principles as set out in section 103(3) of the City of Brisbane Act 2010 are:

(i) value for money

(ii) open and effective competition

(iii) the development of competitive local business and industry

(iv) environmental protection

(v) ethical behaviour and fair dealing.

(b) Alignment with the Corporate Plan This PPAP conforms with the value for money (VFM) procurement objectives and requirements of Council’s Corporate Plan.

(c) Utilisation of Council businesses and staffCouncil's preference is to utilise its own competent and capable employees and internal providers of services before entering into a contract for provision of services or the carrying out of work.

1.2 Strategic Procurement OfficeCouncil procurement is led by Council’s Strategic Procurement Office (SPO), Organisational Services. SPO sources and manages arrangements for goods, services and works that meet the needs of users within Council and drives the best outcomes for Brisbane.

1.3 Heading in the right directionSPO leverages the supply community to improve the experience for Brisbane’s ratepayers, residents, businesses and visitors, now and in the future. Suppliers have an increasing role in the value chains that deliver the services and infrastructure to meet the needs of current and future generations. SPO seeks to nurture, optimise and improve value from supply chains.

1.4 Category Management Council undertakes many types of contracting activities which fall broadly into three categories:

(a) commodities and services

(b) construction and operations

(c) information and communications technology.

The centre-led approach to procurement focuses on the strategic management of the above categories of Council spend. Each category is managed by a Category Management team in SPO which partners with Council businesses. The strategy employed by each Category Management team includes:

(a) development of category plans for long-term strategy and implementation planning

(b) a sourcing classification to understand where to direct effort

(c) annual sourcing plans to manage business needs and resources

(d) a seven-step sourcing process to engage Council stakeholders and the supply market

(e) establishment of Corporate Procurement Arrangements to leverage value

(f) contract management

(g) engaging with industry to identify and implement innovation.

Category management is supported by specialists in the areas of partnering and innovation and procurement governance processes and systems.

1.5 Category planning and market assessments(a) Category planning

Each Category Management team develops strategic category plans. These plans guide resources and the application of different procurement tactics to generate sustained value in a spend area, including sourcing activities. ‘Sourcing’ means the process used to obtain goods, services or works from the supply market. Category plans segment categories into discrete areas and examine market trends, supply options and potential procurement strategies. In general,

2

https://www.brisbane.qld.gov.au/about-council/council-information-rates/news-publications/corporate-plan-2016-17-2020-21-2017-update

category plans are developed with a three to five-year strategic outlook and refreshed annually. In some situations, such as highly dynamic markets, category plans may require a short-term outlook and can be monitored and refreshed on a more regular basis.

The key outputs of category plans are a category strategy and a high-level implementation plan.

(b) Market assessmentsThe Australian Industry Group’s (AiGroup) Australian Performance of Construction Index advises that the input prices from rises in wages and other input costs are not fully being passed on given strong market competition and a low inflationary environment. The gap between these input prices and the selling prices demonstrates strong pressures on profit margins and is consistent with reports of a highly competitive quoting and tendering environment.

Despite strong market competition, there has been a large and expanding pipeline of publicly funded investments in major infrastructure projects (particularly in New South Wales and Victoria) which has contributed to stretched capacity in the sector servicing the Eastern seaboard. This is leading to decreased numbers of suppliers responding to Council tenders and upwards pressure on price.

According to AiGroup’s Performance of Services Index, high input costs are being caused by elevated energy prices and the cost of business compliance as well as higher-skill occupations and business-oriented sub-sectors facing wage pressures. The selling prices have been stable on average as businesses have been unable to implement substantial price rises in order to cover their increasing input costs.

The commodities market for fuel, gas and electricity are predominately linked to the world stage and all presently face upwards pressure.

Manufacturing is reported by AiGroup’s Performance of Manufacturing Index as continuing to slowly grow. However, it is facing input price pressure from elevated energy costs. Employment rates have been stable due to employers responding to increasing wage rates.

Council continues to use services such as IBIS world, Gartner and Corporate Executive Board to supplement market intelligence and improve category planning. In addition, Council uses the sourcing classification method described in section 1.6 to direct more emphasis towards sourcing activity with increased risk or expenditure.

The procurement strategy for each sourcing event may be influenced by other factors such as capacity of suppliers to meet Council demand, supplier innovation or dominance of suppliers in certain markets. More detailed market assessments are conducted immediately prior to finalising the strategy for that sourcing event.

1.6 Sourcing classificationCategory management applies a sourcing classification to understand where to direct effort in relation to the sourcing process. This assessment classifies each sourcing activity on the basis of procurement risk and relative expenditure. SPO focuses on the critical sourcing activities.

Pro

cure

men

t ris

k

BottleneckSPO typically sources with support from divisions and business areas

CriticalSignificant Contracting Plan required. SPO typically sources

RoutineEither SPO or business areas source

LeverageSPO typically sources with support from divisions and business areas

Relative expenditure

1.7 Annual sourcing plansBased on the category plans, SPO develops an annual sourcing program to manage its sourcing activity for the financial year. Key sourcing activities for the financial year are included in the Forward Contracting Schedule (Schedule B) and Forward Disposal Schedule (Schedule C).

3

1.8 Seven-step sourcing process For centre-led procurements, the Category Management teams utilise a seven-step sourcing process:

The seven-step sourcing process includes analysis of Council spend data, partnering with stakeholders to understand requirements, conducting market research, developing a sourcing strategy and engaging the market through a structured method which is designed to enhance VFM outcomes.

During the seven-step sourcing process, the high-level approach from the category plan is applied and refined to develop a detailed strategy for the sourcing of those particular goods, services or works.

1.9 Value for money methodology and selectionCouncil utilises a VFM methodology when assessing tenders and proposals. This usually involves deriving a VFM index by dividing the value score achieved (against weighted non-price attributes) by a comparative price, which weighs price and non-price factors equally. Alternative VFM methodologies may be utilised in consultation with SPO.

The comparative price may utilise approaches such as whole-of-life cost, basket of commonly purchased items, price normalisation or the estimated cost to Council.

The VFM methodology provides an indication of best VFM for Council. However, selection is based on the most advantageous outcome for Council.

1.10 Contract durationsThe duration of individual contracts is established through strategic category planning and the seven-step sourcing process. Generally, SPO engages the marketplace at least once in each five-year period. The market may be engaged more or less frequently in some circumstances, for example where:

(a) there is a change in Council’s needs, a change in the market or a change in best practice

(b) strategic category planning or market research indicates that more or less frequent sourcing would deliver a more advantageous outcome for Council

(c) a more advantageous outcome can be obtained by aligning the duration of a contract with the lifecycle of an associated asset (for example, aligning the duration of a contract for refuse collection with the expected lifespan of vehicles for refuse collection).

Where existing suppliers demonstrate a continuous high quality of service, arrangements may be renegotiated and extended if VFM is demonstrated. The effect of this approach is to eliminate unnecessary sourcing activity and allow SPO resources to be directed at categories and contracts where VFM will be better achieved. Details of this exemption from the standard Contract Manual processes is contained in Schedule A (Exemption 6).

1.11 Corporate Procurement Arrangements Corporate Procurement Arrangements (CPAs) are contractual arrangements established by Council to meet the purchasing needs of business areas. CPAs include panel arrangements, preferred supplier arrangements and registers of pre-qualified suppliers. CPAs are generally established by a tender process for a specific term and particular type of goods, services or works. When established, Council officers may purchase from the CPA arrangement without the need to approach the broader market.

CPAs are one of the key tools used by Category Management to implement strategic category plans. CPAs are used by Council to:

(a) aggregate and leverage purchasing requirements

(b) reduce transaction costs for both suppliers and Council by agreement of terms such as contractual conditions and rates, which apply to purchases made under the arrangement.

The strategy for each CPA is developed through strategic sourcing or category planning and implemented through a planned sourcing activity. CPAs can provide some exclusivity to suppliers on the CPA, subject to limitations.

The method for operating each CPA is usually agreed by the Council or its delegate when the CPA is established. SPO includes this information in user packs which set the internal procedure for use of each CPA. SPO may amend the operating method or user pack from time to time to reflect changes in supplier performance, strategy or business priorities.

4

Benefits tracking

Execute Integration

with Suppliers

Negotiate and SelectSuppliers

Select Implement-ation Path

GenerateSupplierPortfolio

Select Sourcing Strategy

Profile Sourcing

Group

1.12 Contract Management Contracts are established in Council to meet the needs of Brisbane. Good contract management is ensuring that the contractual obligations of both suppliers and Council are met and VFM is achieved. Critical to good contract management in Council is the application of consistent processes and tools.

Council’s Contract Management framework provides a clear and standardised approach to managing and administering contracts for the goods and services purchased from its suppliers.

The main elements of the Contract Management framework are:

(a) defining the key roles involved in contract management: Contract Owner, Contract Manager and Contract Administrator

(b) classifying contracts into one of four risk categories: Strategic, Focused, Leveraged or Routine

(c) managing and using contractual Key Performance Indicators

(d) Supplier Relationship Management.

The framework applies to all contract management as a minimum requirement. Established divisional contract management processes are to continue to be used by contract or project managers in Council leading more complex procurement activities (e.g. major projects, construction, infrastructure) as required.

1.13 Engaging with industry to identify and implement innovationInnovation is fundamental to achieving the Brisbane Vision, improving quality of life for residents while ensuring our city has the services and infrastructure to meet the needs of future generations. Innovation can also deliver better VFM outcomes for Brisbane. Innovative solutions can be developed in the market long before they are identified by Council. SPO nurtures and encourages industry to identify and implement innovation. This is achieved through a number of initiatives including Supplier Relationship Management, a Strategic Partnering program and a Better Brisbane Proposals policy.

(a) Supplier Relationship ManagementCouncil recognises the critical role its suppliers play in contributing to Brisbane becoming Australia’s New World City. Globally, organisations are starting to realise that they have become more reliant on suppliers in terms of innovation, security of supply, corporate social responsibility and cost savings. To better capture the value from its supplier relationships, Council has adopted Supplier Relationship Management (SRM) as a management mechanism through which additional value can be derived from improved collaboration with suppliers. This is achieved through an SRM framework and a series of accompanying tools to help guide managing relationships with select suppliers such that more value is realised than via normal contract management.

The main elements of the SRM framework are:

(i) identifying the key roles involved in SRM: Category Specialist, Supplier Manager, Procurement Partner, Contract Owner and Contract Manager

(ii) segmenting suppliers into one of four tiers based on criticality and spend

(iii) identifying potential strategic partners to Council

(iv) pursuing opportunities beyond the contract, including sustainable procurement and innovation.

(b) Strategic Partner programThe strategic partner program focuses on a small group of suppliers that align closely with Council and have the potential to realise innovation. A supplier may only be designated as a strategic partner via a Significant Contracting Plan (See 1.14 (b)).

Council may enter into supply arrangements (or extend arrangements in terms of scope or duration) with strategic partners on a direct engagement basis. Arrangements may be extended for defined periods until such time as those arrangements, in Council’s view, no longer deliver VFM to Council. Submissions to enter into or extend an arrangement with a strategic partner must be in the public interest, provide value for Council and be approved in accordance with existing public interest sole sourcing delegations. All decisions to enter into or extend an arrangement with a strategic partner are to be reported monthly to Council.

Ongoing assessment and monitoring of the performance of each strategic partner is to be undertaken to ensure that Council continues to obtain VFM.

(c) Better Brisbane Proposals policy

5


(i) OverviewThrough this Better Brisbane Proposals policy, Council will engage with the supply community to identify and implement innovation in its contracting activities. Council’s Better Brisbane Proposals policy enables businesses to approach Council with proposals that solve Brisbane problems or contribute to the Brisbane Vision and provide Brisbane with VFM outcomes.

(ii) Policy To be considered as a Better Brisbane Proposal under the policy, proposals must:

A. solve a Brisbane problem, address an opportunity for Brisbane, or enhance services Council provides

B. represent VFM to Council.

Council can have a number of different roles in progressing a Better Brisbane Proposal to keep Brisbane heading in the right direction. These roles can include Council as an advocate, facilitator, partner, buyer or regulator.

If Council wishes to purchase that type of good, service or innovation, Council may proceed with a Better Brisbane Proposal in a number of different ways that can include:

A. competitive or collaborative processes with multiple suppliers

B. direct engagement

C. an alternative or hybrid model which may include a trial, proof of concept or pilot to precede a competitive process with multiple suppliers.

Proposals will not be considered under this policy where Council has issued a request for tender, proposal or expression of interest and Council considers that the request issued was the appropriate channel for the receipt of offers.

(iii) Direct engagementCouncil may directly engage with the proponent of the proposal for the good, service or innovation if, in Council’s view, it is in the public interest. This generally involves consideration of whether:

A. the proposal contains intellectual property rights or elements, such that tendering for the requirement would be unfair or deprive the proponent of its innovation

B. the outcome is considered to be fair to the supply market

C. the proposal is considered to be advantageous for Brisbane

D. VFM to Brisbane can be demonstrated or substantiated.

(iv) Process Better Brisbane Proposals will be assessed using the following process:

A. Stage One: An optional, free pre-proposal meeting between the proponent and Council procurement officers to discuss the key attributes, benefits, requirements and assumptions underlying the potential proposal. This is not a compulsory stage but may assist the proponent to position and develop the proposal, expediting the subsequent assessment stages. Council may provide feedback at this stage as to whether it considers that the proposal, as presented, is consistent with the policy. It is the proponent’s decision as to whether it proceeds with making a formal proposal.

B. Stage Two: Preliminary assessment of the proposal will be undertaken in accordance with the policy to determine if the proposal has sufficient merit to warrant progression to Stage Three and further consideration. Generally, the proponent will be offered the opportunity to present its proposal to Council officers. A recommendation will be made to Council’s Oversight of Consultancies Special Committee which will decide whether the proposal is to progress to Stage Three.

C. Stage Three: The proponent will be required to provide a detailed proposal and work cooperatively with Council officers in the development and assessment of a detailed proposal. Council will undertake a detailed assessment of the detailed proposal to ascertain if sufficient value can be achieved for customers (ratepayers, residents, businesses and visitors) through a direct engagement. This stage will consider elements such as the technical, financial, risk and logistical aspects of the proposal.

D. Stage Four: Negotiation of a final binding offer involves the finalisation of all outstanding issues with a view of entering into a binding agreement, should Council

6


accept the final offer.

(v) Commitments to suppliersCouncil will:

A. treat proponents fairly

B. respect the confidentiality of proponents’ information and intellectual property (this may involve alternative approaches to confidentiality and intellectual property where agreed by the parties)

C. endeavour to provide a written outcome within a reasonable timeframe

D. bear its own costs and expects all proponents to bear their own costs, unless otherwise agreed by the parties.

1.14 Governance(a) Boards

SPO administers a number of boards which play a key role in Council’s governance arrangements for procurement. These boards include Stores Board, chaired by Council’s Chief Executive Officer and several procurement boards. Each board is constituted by officers as considered appropriate by the Chairman of that board. The purpose of these boards is to provide advice to delegates on the exercising of procurement delegations and to review submissions which are proceeding to higher delegates or Council.

For high-value sourcing activities, these boards provide a forum for delegates to consider and approve the strategy for a contracting activity (pre-market approval) and also approve entering into contracts for a procurement or disposal (post-market approval). Boards are attended by appropriately qualified officers to ensure that sourcing processes and decisions are robust and meet probity requirements. Delegates may convene additional boards to ensure appropriate governance and business needs are being met.

(b) Policy for Significant Contracting Plans and delegations(i) Significant Contracting Plans will be prepared for those sourcing activities to be

commenced in 2018-19 financial year which:

A. have an estimated contract expenditure of $10 million or above

B. have been assessed by SPO as critical using its sourcing classification.

(ii) Significant Contracting Plans will be prepared where a supplier is to be designated as a strategic partner.

(iii) Significant Contracting Plans will be prepared for disposal activities where:

A. the disposal is not in accordance with the approach identified in the Forward Disposal Schedule at Schedule C

B. the disposal has been identified by SPO as high risk or high value.

(iv) The Establishment and Coordination Committee (E&C) is delegated as the authority to approve Significant Contracting Plans.

(v) Delegations for contracting activities need to accord with Council’s centre-led, strategic approach to procurement. Delegations which align with this approach have been approved by Council and the Chief Executive Officer.

(c) ApprovalsIn general, Council has two approval points for procurements, pre-market approval and post-market approval. Formal submissions are used to record pre-market and post-market approval decisions (including the reason for those decisions) for contracting activities which Council is required by legislation to report. Pre-market approval refers to the approval of procurement strategy and approval to request quotes, tenders or proposals. For significant procurements, pre-market approval is via significant contracting plans. Post-market approval refers to approval of selection of the supplier, approval to proceed with the procurement (enter into the contract) and the spend allowable under the contract. For Corporate Procurement Arrangements, the allowable spend is an estimate only as the arrangement is for a defined period and spend will vary according to actual requirements.

Whilst post-market submissions often seek approval for a contingency amount in relation to risks, unforeseen site conditions (usually underground) can lead to additional cost. Where the allocated contingency is insufficient, timely approval of the additional cost associated with these latent conditions is vital to ensure that projects are completed on schedule and no further cost is

7

incurred where contractors are on site and awaiting Council approvals. To enable this, spend under a construction contract beyond the approved contract sum can be utilised where:

(i) written concurrence of the Chief Procurement Officer and Executive Manager Field Services or City Projects Office (or their delegate) has been obtained

(ii) the additional spend is for work defined by the contract as a latent condition

(iii) there is sufficient budget funding allocated to meet the additional cost.

1.15 Training capability and competencies The development of skills and competencies in the areas of value chain design and optimisation, supply chain management, sourcing, negotiation, category management, contract management, relationship and vendor performance management will continue to receive support from Council.

1.16 Complaints processA process is in place for the receipt and handling of all complaints against Council and applies for complaints concerning procurement and disposal activities.

2. SUSTAINABLE PROCUREMENT POLICY

2.1 Sustainable procurement definitionThe following working definition of sustainable procurement has been developed by the Queensland Government: Sustainable procurement is a process whereby organisations meet their needs for goods, services and capital projects, in a way that achieves value for money on a whole-of-life basis in terms of generating benefits not only to the organisation, but also to society, the economy and the natural environment.

2.2 Principles and objectives In its Corporate Sustainability Policy, Council commits to applying principles of sustainability to all of its decision-making and activities. In addition, Council applies sound contracting principles to its procurement and disposal activity. The following economic, environmental and social objectives have been determined in line with these principles.

Area Principles ObjectivesEconomic Principles of sustainability:

recognise dimensions beyond our border while concentrating on issues we can influence

integrate long and short-term economic, environmental and community considerations.

Sound contracting principles: value for money open and effective competition the development of competitive

local business and industry.

Achieve VFM on a whole-of-life (including disposal) basis, rather than just initial cost.

Harvest $30 million in savings from procurement activities.

Manage demand and supply to ensure that competitive markets and the availability of resources are sustained in the long term.

Ensure probity and accountability in the procurement process.

Environmental Principles of sustainability: act cautiously when there is a risk

of serious or irreversible impacts on the environment or the community

enhance and maintain biodiversity and natural environmental systems.

Sound contracting principles: environmental protection.

Minimise environmental harm, including end-of-life impacts.

Maximise resource efficiency (e.g. reduce energy and water consumption and minimise waste).

Minimise carbon emissions and contribute towards Council’s carbon neutral status.

Social Principles of sustainability: provide for broad public

involvement on issues that affect the community

provide for equity within and between generations.

Sound contracting principles: ethical behaviour and fair dealing the development of competitive

In the procurement process, ensure that Council’s Zero Harm requirements are met and Workplace Health and Safety (WH&S) legislative compliance is achieved.

Maintain a social procurement program to increase social procurement spend – target $4 million.

Ensure sourced products are accessible by all segments of the

8

https://www.brisbane.qld.gov.au/about-council/governance-strategy/vision-strategy/sustainability-policy

local business and industry. community. Require inclusion of apprentices,

trainees or Aboriginal and Torres Strait Islander people on large construction contracts.

Prevent, detect and remove modern slavery from Council’s supply chain.

Specific initiatives to achieve the objectives summarised above may be agreed between Category Management and key Council stakeholders and incorporated into relevant SPO plans.

2.3 Environmental procurement policyCouncil is committed to acquiring products for general use which have a low environmental impact.

(a) Goods of a low environmental impact would not:

(i) endanger the health of the consumer or others

(ii) cause significant damage to the environment during manufacture, transport, use or disposal

(iii) consume a disproportionate amount of energy during manufacture, transport, use or disposal

(iv) cause unnecessary waste, either because of over packaging or because of an unduly short useful life

(v) use materials derived from threatened species or from threatened environments

(vi) involve the unnecessary use of, or cruelty to, animals, whether this be for toxicity testing or for other purposes

(vii) adversely affect other countries, particularly developing economies

(b) Council will, where possible, use recycled paper for its administrative and janitorial needs

(c) Council will, where possible, avoid single-use plastic straws, helium balloons and single-use plastic water bottles in its operations and events, except where this might cause a health or safety risk.

2.4 Social procurement policySocial procurement involves generating positive social benefits and outcomes:

(a) directly, through procurement from social enterprises (including microenterprises, community enterprises and Aboriginal and Torres Strait Islander organisations). Assessment of offers may involve use of VFM methodologies.

(b) indirectly, through leveraging commercial supply relationships.

Council is committed to fostering the capability and capacity of social enterprises to grow into competitive suppliers. As part of this commitment, SPO will seek appropriate opportunities to engage social enterprises or leverage outcomes through commercial relationships. Where appropriate, SPO will enable purchases outside of CPAs from social enterprises.

2.5 Construction workforce policyCouncil is committed to supporting the development of skills in Brisbane’s construction industry including future workforce capability.

A minimum of 10% of the total labour hours of major construction projects with a contractual value of $2 million and over are to be performed by apprentices, trainees or marginalised segments of the community (including Aboriginal and Torres Strait Islander people). To implement this policy, SPO will maintain a formula to be included in applicable construction contracts.

Exemption from the requirements of this policy may be provided by the Chief Procurement Officer on a case by case basis. For example, contracts that include a high mechanical and electrical component may be exempt. The submission to the Chief Procurement Officer should include the reasons for exemption or modification and be submitted prior to engagement of the market.

2.6 Zero Harm in procurement

9

In accordance with Council’s commitment to Zero Harm, Council will conduct its contracting activities and seek that its suppliers conduct their activity (with appropriate incident reporting) so that no Brisbane residents, visitors, contractors or employees are harmed in the provision of goods, services or works to Council.

2.7 Applying sustainable procurement in CouncilCouncil undertakes contracting activities by considering how Council can make a contribution to sustainable procurement by:

(a) examining organisational, project and/or community needs for an anticipated contracting activity

(b) developing strategies for a contracting activity

(c) developing specifications for a contracting activity

(d) planning and undertaking evaluations as part of a contracting activity.

2.8 Support for local suppliersWhere value for money outcomes are equal, Council will give preference to local suppliers (South-East Queensland). Support for local suppliers will provide economic benefits and help to achieve the Brisbane Vision.

3. CONTRACT MANUAL

3.1 Tenders, proposals and quotes for goods, services and works(a) Availability of budget

Tenders, proposals or quotes cannot be sought unless funds are available in the approved Council budget except in the case of genuine emergency or hardship as determined by the Chief Procurement Officer.

(b) Requirement for tenders, proposals and quotes Except as provided in sections 3.2 and 3.3, Council will invite tenders, proposals, quotes and expressions of interest from the supply market in accordance with the following thresholds.

(i) For purchases reasonably estimated to be worth less than $10,000, price information is to be obtained from one or more suppliers. Where only one quote is obtained from those invited, VFM is to be demonstrated.

(ii) For purchases reasonably estimated to be worth between $10,000 and less than $250,000, at least three written quotes are to be invited from suppliers who are considered able to meet the requirements. Where only one quote is received from those invited, VFM is to be demonstrated.

(iii) For purchases reasonably estimated to be worth $250,000 or more, Council will publicly invite tenders, proposals or expressions of interest.

‘Worth’ means the total amount (exclusive of GST) to be paid to the supplier for the goods, services or works for the full term including any options or optional periods. For contracts under which Council receives revenue, the thresholds above apply and ‘worth’ refers to the total amount to be paid to Council.

3.2 Exemption from tenders, proposals and quotesThe circumstances identified in Schedule A are exempt from the general tender, proposal, quote and expression of interest requirements of section 3.1(b). Decisions are to be recorded in formal submissions which include how VFM is demonstrated. Use of any exemption must be endorsed by SPO or Council’s Chief Executive Officer.

Where the procurement is designated as ‘significant’, a Significant Contracting Plan is to be approved which may include use of an exemption, sole source or select source.

3.3 Sole or select sourcing Supply of goods, services or works can be obtained from one supplier (sole sourcing) or a restricted group of suppliers (select sourcing) without tenders, proposals or quotes where either:

a. it is in the public interest

b. there is a lack of available tenderers

c. marketplace is restricted by statement of licence or third-party ownership of an asset (excluding public utility plant)

d. a multi-staged process has been followed, including without limitation, one commencing with an expression of interest.

10


If there is a current procurement or disposal process in place, that process must be terminated prior to sole sourcing being implemented. Sole sourcing is subject to existing public interest delegations. Select sourcing is subject to endorsement by SPO or Council’s Chief Executive Officer.

3.4 Shortlisting (a) Rounds of shortlisting are permitted during tender, proposal and quotation processes

(b) Where expressions of interest have been publicly requested, tenders or proposals may be requested from a shortlist of respondents if this approach and the criteria for shortlisting have been included in the publicly advertised document.

3.5 Negotiations Negotiations can be undertaken with the most advantageous tenderer, a short list of tenderers or all tenderers. These negotiations may result in changes to Council requirements (stated in tender, proposal or quote documents) or the offers received. Probity requirements apply to all negotiations.

3.6 Acceptance of a tender, proposal or quoteCouncil officers will only accept tenders, proposals, quotes or expressions of interest that are the most advantageous to Council. Council is not obliged to accept the lowest priced tender, proposal, quote or expression of interest.

3.7 Disposal of goods and acquisition or disposal of land(a) Council must dispose of goods (or other non-current assets excluding land) through the invitation

of tenders or sale by public auction above the following values (exclusive of GST):

(i) plant or equipment – $5,000

(ii) any other type of non-current asset – $10,000.

(b) Individual goods (or other non-current assets excluding land) up to the value set out in section 3.7(a) may be disposed of by approaches other than tender or public auction. Probity must be maintained and value for money achieved in these disposals.

(c) The provisions in section 3.7(a) do not apply to the disposal of goods (or other non-current assets excluding land) if:

(i) an alternative disposal approach is provided at Schedule C

(ii) a Significant Contracting Plan has been approved

(iii) Council is of the opinion that it is in the public interest that they should not apply. Any decision by Council to this effect:

A. must specify reasons for the opinion expressed in it

B. may relate to a particular disposal or class of disposal

(iv) the disposal was a donation under Council’s AP200 Donations Policy.

Major disposals with sourcing expected to commence in the 2018-19 financial year are summarised in the Forward Disposal Schedule at Schedule C.

Acquisition of land by Council is not dealt by this PPAP. Disposal of land and letting of leases is subject to the Default Contracting Procedures in Chapter 6 of the Regulation.

3.8 Publishing details of contracts worth $200,000 or moreA report of contracts worth $200,000 (exclusive of GST) or more accepted by delegates shall be presented to Council as soon as practicable after entering into the contracts. The report will be published in the minutes of the Council meeting.

The establishment of CPAs is reported but generally not the orders placed under them. Key orders under CPAs for construction works will continue to be reported in line with current practice.

4. MAJOR PROCUREMENTS EXPECTED TO COMMENCE IN 2018-19

Major procurements with sourcing expected to commence in the 2018-19 financial year are summarised in the Forward Contracting Schedule at Schedule B.

11

Schedule AGeneral exemptions from Council’s standard

quotes, tenders and proposals process

12

GENERAL EXEMPTIONSDetailed below are the list of exemptions from tenders, proposals and quotes. Use of any exemption must be endorsed by SPO or Council’s Chief Executive Officer. Where no approvals are specified below, approvals are in accordance with current Council delegations.

Exemption name Explanation, limitations, responsibilities and approvals

1. Corporate Procurement Arrangements (CPAs)

The general requirement to seek quotes and tenders from the broader market does not apply where:

Council has established a CPA and Council is using that CPA

CPA suppliers are unable to supply and where value and appropriateness of process has been demonstrated to the satisfaction of the relevant Category Manager.

2. A contract made because of genuine emergency or hardship

In genuine emergencies (such as recovery following the 2011 Brisbane flood), the necessity to act fast outweighs the additional benefit that may be driven through competitive processes.

3. Marketplace is restricted by third-party ownership of public utility plant ownership

This exemption applies if the goods, services or works can only be supplied by a single supplier or a restricted group due to third-party ownership of a public utility plant asset. For example, Energex, Telstra or APA. Where possible, competitive quotes are to be obtained in line with the requirements of section 3.2.

4. A contract made with, or a purchase from a contract made by, another government entity, government owned entity or Local Buy.

Where value for money outcomes can be obtained, this general exemption allows engagements with another government entity or government owned entity. For example, Federal, Queensland or Local Government or an entity owned by the Federal, Queensland or Local Government.

Contracts and arrangements established by another government entity, local authority or Local Buy have been sourced by reputable entities that apply appropriate principles and probity, and can be expected to deliver reasonable value for money for Council.

5. Procurement from social enterprises (including microenterprises, community enterprises and Aboriginal and Torres Strait Islander organisations)

Social procurement involves generating positive social benefits or outcomes. This exemption will apply to contracts meeting the public interest test which is to be applied using the following criteria – submissions are to include:

(a) the basis upon which the organisation is considered to be a social enterprise(b) how the contract will develop capacity or capability of the social enterprise or

otherwise contribute to Council’s procurement objectives or Brisbane Vision 2031(c) consideration given to commercial enterprises operating in the sector and whether

they would be unduly prejudiced by the award of such a contract(d) consideration of other known social enterprises and whether it would be appropriate

for those organisations to compete with each other for the contract(e) how quality of goods or services is to be ensured(f) how reasonable value for money will be achieved by Council(g) past performance of the supplier where a contract renewal or award of a similar

contract is being considered.

Council’s previous Annual Procurement Policy and Contracting Plan included a definition of social enterprise. This definition has been removed from this PPAP for brevity but is to be retained by SPO and used to assess submissions for exemption. The definition may be refined where necessary.

Approvals:

Any submission seeking approval to sole or select source with social enterprise(s) is to be considered in accordance with current delegations for sole/select sourcing in the public interest, with approval from the Chief Procurement Officer in consultation with the Manager, Connected Communities, Lifestyle and Community Services as a minimum.

6. Low Value Procurements

Allows Strategic Procurement Office to focus its resources on high yield procurements. The value obtained from a significant number of frequently sourced, low value procurements is limited. This exemption allows extension of contracts without tender

13


processes.

Conditions:

Negotiations are to be undertaken as part of the contract extension process

Category/market analysis and benchmarking must be used to establish that value for money is still being obtained

Under this exemption, extension can only be approved up to a maximum total contract duration of five years

Supplier performance must be to Council’s customer satisfaction

Value improvement initiatives are in place.

Approvals:

CPO up to the contract value of $250,000

CEO through Stores Board above the contract value of $250,000

7. A contract for purchase at public auction

Purchases via auction are inconsistent with quotation and tender approaches.

8. Information Technology: Solutions Tendered – Re-sellers and software developers

Allows Council to contract with a copyright holder where the solution is tendered by an authorised re-seller.

9. Extension of contracts while Council is at market

Allows Council to extend an existing contract by up to six months where the tender to replace the contract has commenced. Switching supply for such a short period is usually not cost effective or practical. Extension may be required where the tender process or negotiations have taken longer than expected.

Approvals:

Chief Procurement Officer through a Procurement Board, subject to availability of approved budget funding

10. Procurement needed for external bids

Allows Council to arrange subcontracts in order to bid for work being procured by parties external to Council and the work is not for Council or on any asset which Council owns.

Approvals:

Executive Manager (EM), Field Services (and EM delegates)

Responsibilities:

EM to provide report to Stores Board as soon as practicable following any use of the exemption.

11. Extension of Information and Communications Technology (ICT), support and maintenance arrangements

Council’s CPA and contracts for the provision of ICT software and hardware (ICT products) can often continue to meet business requirements beyond the originally envisioned term. This exemption provides a mechanism to approve maintenance and support (which may include external hosting or subscription to existing solutions) for existing Council ICT products beyond the original term.

Approvals:

CPO up to $250,000 per year

CEO up to $500,000 per year

E&C over $500,000 per year

12. Professional services unsuitable for tendering

Professional Services unsuitable for tendering are:

Barristers and expert witnesses – These services are needed for legal proceedings. Generally, barristers do not respond to tenders. Council’s Chief Legal Counsel reviews the Law Society website and makes a decision on which barrister to approach for the

14


matter depending on their area of expertise. Expert witnesses are recommended by the barrister.

Integrity Workplace Solutions Agencies (IWSA) – External integrity workplace solution agencies are needed to deliver sensitive, high-level and complex investigations in respect to the conduct of Council employees in the areas of alleged corrupt conduct, reportable misconduct, reportable loss and ICT forensics. The engagement of external agencies, on occasion, is also required to ensure investigations can be undertaken which protect the integrity of Council and can be delivered in a timely and professional manner to the standards outlined in the Crime and Corruption Commissions Corruption in Focus guide . These engagements are also unsuitable for tendering.

Approvals for barristers and expert witnesses:

Chief Legal Counsel – up to $500,000

CEO over $500,000

Approvals for IWSA:

Up to $10,000 – Manager, Ethical Standards Unit

Up to $25,000 – Manager, Assurance Services and Ethical Standards

Up to $50,000 – Divisional Manager, City Administration and Governance

Up to $250,000 - Chief Procurement Officer (through Procurement Board) or Chief Executive Officer (through Stores Board)

Over $250,000 – E&C

15



Schedule BForward Contracting Schedule for Goods, Services and Construction

2018-19

16

MAJOR CONSTRUCTIONDetailed below are major Council programs (programs are defined as programs of like work) and projects against which major procurement activity is scheduled to occur during the 2018-19 financial year and later. The ‘Estimated Value of contracts…’ column shows an estimate of the sum of the procurement for which Council is scheduled to engage the market in 2018-19. Where the ‘Estimated Value of contracts…’ for a project or program detailed below reaches or exceeds $10 million or is designated as a significant contract, that contract will be a significant contract for the purposes of section 210 of the City of Brisbane Regulation 2012.

Major Projects(Greater than $2 million)

2018-19

Estimated value of contracts greater than

$2 million going to market in 2018-19

Expected Quarter

at MarketProposed Procurement

Strategy Contact Details (subject to change)

Brisbane Metro – Infrastructure- Inner City Infrastructure- Suburban Infrastructure- Early Works – Laying of 110kV cable- Early Works – Sewer Gravity Mains- Early Works – Sewer Rising Mains- Project Certifier

$560,000,000Q1Q3Q3Q3Q3Q4

Quotes under existing Corporate Procurement Arrangement or Public Tender

Brisbane Metro Project Team, City Projects Office, Brisbane Infrastructure, 1800 692 333

Brisbane Metro – Depot, Fleet and Systems- Metro Vehicles- Depot- Systems

$201,000,000Q1Q3Q3

Quotes under existing Corporate Procurement Arrangement or Public Tender

Brisbane Metro Project Team, City Projects Office, Brisbane Infrastructure, 1800 692 333

Bracken Ridge Library $6,000,000 Q1 Quotes under existing Corporate Procurement Arrangement

Program Delivery Manager, Civic and Building, City Projects Office, Brisbane Infrastructure, 3403 6898

Ferry Terminals Upgrade Program $10,000,000 Q1 Quotes under existing Corporate Procurement Arrangement


Boondall Wetlands Environmental Centre $2,500,000 Q1 Quotes under existing Corporate Procurement Arrangement


Queen Street Mall Realm Improvements $4,800,000 Q2 Quotes under existing Corporate Procurement Arrangement


Bretts Wharf Riverwalk $2,500,000 Q2 Quotes under existing Corporate Procurement Arrangement


17


2018-19



Expected Quarter



Musgrave Park Pool Refurbishment $3,500,000 Q2 Public tender Program Delivery Manager, Civic and Building, City Projects Office, Brisbane Infrastructure, 3403 6898

Wakerley District Sports Park $4,500,000 Q2 Public tender Program Delivery Manager, Civic and Building, City Projects Office, Brisbane Infrastructure, 3403 6898

Mariners Reach Boardwalk Repairs $5,000,000 Q2 Quotes under existing Corporate Procurement Arrangement


Hostile Vehicle Mitigation(Valley Mall and Queen Street Mall)

$8,000,000 Q2 Public tender Program Delivery Manager, Civic and Building, City Projects Office, Brisbane Infrastructure, 3403 4333

West End Riverside Drive Land Remediation $9,000,000 Q3 Public tender Program Delivery Manager, Civic and Building, City Projects Office, Brisbane Infrastructure, 3403 4876

Smoother Suburban Streets – Road network resurfacing

$25,000,000(Comprised of a number

of packages of works)

Q1-Q2 Quotes under existing Corporate Procurement Arrangement

Project Delivery Manager, Road Infrastructure, Civil and Transport, City Projects Office, Brisbane Infrastructure, 3178 4092

Waterworks Road $7,000,000 Q4 Quotes under existing Corporate Procurement Arrangement


Bellmead Road and Warrigal Street $2,500,000 Q2 Quotes under existing Corporate Procurement Arrangement


Chatsworth and Boundary Roads $4,000,000 Q2 Quotes under existing Corporate Procurement Arrangement


18


2018-19



Expected Quarter



Widdop Street $4,000,000 Q2 Quotes under existing Corporate Procurement Arrangement


Brisbane International Cruise Terminal Access Road

$8,000,000 Q2 Quotes under existing Corporate Procurement Arrangement


Accessible bus stop upgrade program $2,500,000 Q1-Q4 Quotes under existing Corporate Procurement Arrangement

Project Delivery Manager, Civil Infrastructure, Civil and Transport, City Projects Office, Brisbane Infrastructure, 3178 7501

Major drainage construction $3,000,000(Comprised of a number

of packages of works)

Q1-Q4 Quotes under existing Corporate Procurement Arrangement

Manager, Contracts and Structure Services, Construction, Field Services, Brisbane Infrastructure, 3403 7831

TOTAL $872,300,000

19

GOODS AND SERVICES (SIGNIFICANT)Detailed below are anticipated significant contracts in relation to goods and services and against which major procurement activity is scheduled to occur during the 2018-19 financial year and later. These contracts are considered to be significant contracts for the purposes of section 210 of the City of Brisbane Regulation 2012. In some cases Council may elect to exercise an existing option to extend a contract rather than engaging the market with a view to entering into a new contract.

Grouping ProductCategory

Description Indicative Annual Spend $

Expected Quarter at

Market

Proposed Procurement

Strategy

Contact Details(subject to

change)Construction and operations

Ferry terminals construction and repair service

Ferry terminal and maritime infrastructure construction

$20,800,000 Q1 Review of current contract arrangements or public tender

Category Manager – Construction and Operations, Strategic Procurement Office, Organisational Services, 3403 9128

Traffic controllers and sign vehicles

Traffic controllers vehicles equipment $13,600,000 Q1 As above As above

Drainage and waterways construction and maintenance

Stormwater infrastructure cleaning and closed circuit television (CCTV) services

$3,900,000 Q2 As above As above

Turf services Turf and turf services $2,400,000 Q2 As above As above

Building condition audits

Building condition and asbestos audits $3,100,000 Q2 As above As above

Landscape supplies

Landscape supplies $2,200,000 Q2 As above As above

Road profiling service

Road profiling services $2,600,000 Q2 As above As above

Coloured pavement

Road pavement marking materials and services


Playgrounds Playground equipment $6,500,000 Q4 As above As above

20



Expected Quarter at

Market


Strategy


change)Commodities and services

Electrical systems, components and accessories

Brisbane smart poles To be determined

Q1 As above Category Manager – Commodities and Services, Strategic Procurement Office, Organisational Services, 3403 1951

Passenger motor vehicles

Passenger and light commercial vehicles: dealers


Vehicle maintenance and repair services

Volvo bus original equipment manufacturer spare parts and maintenance services


Temporary clerical or administrative assistance

Temporary labour: administration and trades


Product and material transport vehicles

Supply and delivery of 22.5 ton asphalt trucks


Infringement management

Infringement processing and issuing $5,000,000 Q3 As above As above

Building cleaning services

Provision of cleaning services to Brisbane City Council


Passenger motor vehicles

Bus build facility - head supply agreement


Civil engineering services

Infrastructure design consulting service


21



Expected Quarter at

Market


Strategy


change)Water transport vessel maintenance and repair services

Ferry and ferry infrastructure operations and maintenance services

$21,000,000 Q3-Q4 As above As above

Information and communications technology

Storage and data centre

Oracle enterprise agreement $4,000,000 Q1 As above Category Manager – ICT and Technology, Strategic Procurement Office, Organisational Services, 3403 9109

Network Corporate telephony $6,800,000 Q1 As above As above

Storage Enterprise storage and related products


Business applications

Procurement system optimisation To be determined

Q3 To be determined

As above

Business applications

SAP to the cloud To be determined

Q3 To be determined

As above

TOTAL $212,305,000(with Brisbane smart poles, Procurement system optimisation and SAP to the cloud to be determined)

22

GOODS AND SERVICES (NON-SIGNIFICANT)Detailed below are further anticipated contracts in relation to goods and services against which procurement activity is scheduled to occur during the 2018-19 financial year and later. These contracts are not considered to be significant contracts for the purposes of section 210 of the City of Brisbane Regulation 2012. In some cases, Council may elect to exercise an existing option to extend a contract rather than engaging the market with a view to entering into a new contract.



Expected Quarter at

Market


Strategy

Contact Details (subject to

change)Construction and operations

Traffic control network

Pedestrian control services for events and hire crowd control barrier and temporary fencing

$1,000,000 Q2 Review of current contract arrangements or public tender

Category Manager – Construction and Operations, Strategic Procurement Office, Organisational Services, 3403 9128

Geotechnical drilling service

Geotechnical and environmental drilling

$972,000 Q1 As above As above

Quarry maintenance services

Quarry site maintenance $375,000 Q1 As above As above

Pesticides or pest repellents

Chemicals for the control of pests $628,000 Q2 As above As above

Sand Sand for asphalt and concrete production


Electrical system services

Maintenance of Uninterruptible Power Supply (UPS) at Council sites


Elevator maintenance services

Comprehensive lift maintenance $270,000 Q3 As above As above

Metal fabrication Metal fabrication $900,000 Q4 As above As above

23



Expected Quarter at

Market


Strategy


change)Construction and building materials

Cadastral, engineering and construction surveys


Commodities and services

Oil and gas utilities Compressed natural gas maintenance Toowong, Virginia, Garden City

$730,000 Q1 As above Category Manager – Commodities and Services, Strategic Procurement Office, Organisational Services, 3403 1951

Banquet and catering services

Catering services to Brisbane City Council cemeteries


Non-scientific vocational training services

Project management training courses


Employee assistance programs

Employee Assistance Program (EAP)


Media placement and fulfilment

Advertising master media services


Printing Printing services $1,800,000 Q1 As above As aboveArmoured car services and money transport

Cash collection and counting services


Passenger road transportation

Provision of council cabs $450,000 Q2 As above As above

Passenger road transportation

Provision of Personalised Public Transport (PPT)


Mailing services Unaddressed direct mail services


24



Expected Quarter at

Market


Strategy


change)Paving equipment Supply and delivery of road

rollers$258,000 Q2 As above As above

Professional communication services

Communication and engagement services


Office supplies Office supplies, toilet paper and industrial wipes


Animal control and welfare services

Animal management services $1,900,000 Q3 As above As above

Parks and gardens and orchards

Supply of mowers, tractors and off-road utes


Road sweeper Supply, delivery and support of sweepers


Information and communications technology

Content filtering software

Content filtering services $250,000 Q1 As above Category Manager – ICT and Technology, Strategic Procurement Office, Organisational Services, 3403 9109

Document & Records Management

Construction Collaboration Technologies


Fleet Location and Tracking

Enterprise Asset Management $150,000 Q1 As above As above

Network Communication and tracking – products and services replacement

To be determined Q2 As above As above

Audio and video devices

Digital projectors To be determined Q2 As above As above

25



Expected Quarter at

Market


Strategy


change)Network computing Cisco hardware and maintenance

support$1,900,000 Q2 As above As above

Audio and video devices

Audio visual goods and services $1,000,000 Q3 As above As above

Geographic information system (GIS) engines

Geographic Information System (GIS) software – enterprise license agreement


Standard office suites

Microsoft core infrastructure agreement


Servers Critical infrastructure support and maintenance


Network Field communications To be determined Q3 As above As above

Mobile CCTV Public Safety and Emergency Response

1,000,000 Q3 As above As above

Network computing Internal network upgrade $450,000 Q4 As above As above

TOTAL $26,418,000(with Digital projectors, Communication and tracking, and Field communications to be determined)

26

27

Schedule CForward Disposal Schedule 2018-19

28

DISPOSALSThe following items represent disposals of $5,000 or greater that the Council may seek to commence or conclude during the 2018-19 financial year. Actual disposal activity will be dictated by a number of factors that may include the level of operational activity and any purchasing arrangements implemented.

Disposal Activity Proposed Disposal Approach Procurement Outcome

KPI or Measure to gauge success

Area of Council responsible for the

disposal activityExpected

Timing

Computer equipment Re-purchase by vendor, ‘Green ICT’ disposal arrangement, public auction or tender

Economic orEnvironmental

Return greater than book value

Customer Service Delivery, Information Services, Organisational Services

Q1-Q4

Computer desktops and/or laptops

Community disposal Social Up to 300 functioning computers (desktops or laptops) allocated to community groups

Customer Service Delivery, Information Services / Community Development Team, Connected Communities, Lifestyle and Community Services

Q1-Q4

Computer server, storage and communications equipment

Re-purchase by vendor, ‘Green ICT’ disposal arrangement, public auction or tender

Economic orEnvironmental

Return greater than book value

Customer Service Delivery, Information Services, Organisational Services

Q1-Q4

Passenger vehicles Public tender, auction or sale by private treaty through the auction house at the agreed reserve price if the asset has been passed in at a previous auction

Economic Return greater than book value

Fleet Solutions, Field Services, Brisbane Infrastructure

Q1-Q4

Light commercial vehicles

Public tender, auction or sale by private treaty through the auction house at the agreed reserve price if the asset has been passed in at a previous auction



Q1-Q4

Trucks Public tender, auction or sale by private treaty through the auction house at the agreed reserve price if the asset has


Fleet Solutions, Field Services, Brisbane

Q1-Q4

29

Disposal Activity Proposed Disposal Approach Procurement Outcome

KPI or Measure to gauge success

Area of Council responsible for the

disposal activityExpected

Timing

been passed in at a previous auction Infrastructure

Major and general plant and equipment

Public tender, auction or sale by private treaty through the auction house at the agreed reserve price if the asset has been passed in at a previous auction



Q1-Q4

Special vehicles Public tender, auction or sale by private treaty through the auction house at the agreed reserve price if the asset has been passed in at a previous auction



Q1-Q4

Obsolete inventory Public tender or auction Economic Return greater than five per cent of current book value

Payment and Supply Services, Support Services Centre, Organisational Services

Q1-Q4

Buses Public tender, auction or sale by private treaty through the auction house at the agreed reserve price if the asset has been passed in at a previous auction. If no buyers are interested and the likelihood of a sale at a future auction is low, compared with the number of buses to be disposed, then the asset will be sold as scrap metal to the scrap metal merchant offering the best price.

Economic Return best scrap metal value

Transport for Brisbane Q1-Q4

Ferries No disposal of Ferry Fleet is proposed in the 2018-19 financial year.Any future disposal would be undertaken via a public tender, auction or sale by private treaty through a registered Ship Broker with an agreed reserve price.

Economic Return per cent of book value

Transport for Brisbane N/A

30

Documents

SP103 - City of Brisbane · Web viewSP103 PROCUREMENT POLICY AND PLAN 2018-19 OVERVIEW Brisbane City Council’s (Council) Procurement Policy and Plan 2018-19 sets out: (a)the principles,