Doing Business with Council August 2014 workshop

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Local Business Forum Wednesday 20th August 2014

Presented by:Lisa Neal & Paul TriggProcurement Services

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01INTRODUCTION

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INTRODUCTIONS- Lisa Neal & Paul Trigg – Procurement- Business Managers

Housekeeping- Toilets, emergency procedure- Mobile phones on silent- Questions- Presentation will be available electronically for all

registered attendees(business card if not registered)- Feedback forms

- Opening address by Mayor Regan

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AGENDA

- What we spend

- Panel contracts

- How we engage suppliers - regulations

- Identifying tender opportunities

- What we are looking for

- How to present a complying submission

- Networking

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OBJECTIVES & OUTCOME

- Setting the scene: who are we and what and how do

we buy

- De-mystify procurement regulations

- Assist you in working with Council

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02HOW WE SPEND &THE RULES WE’RE BOUND BY

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WHAT DOES WARRINGAH SPEND?

2014/15 - $60M on materials and contracts - $40M on CAPEX projects- Difficult to put $$ on current local spend however

they are well represented on various panel contracts:

Natural Environment Works (53%) Trade Services (60%)Purchase of Motor Vehicles and accessories (92%)Heavy vehicle servicing (100%)Catering (90%)

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WHAT ARE PANEL CONTRACTS?- Panel Contract / Period Contract / Standing Offer

- Agreement under which goods or services are

supplied at a predetermined price and terms and

conditions for a certain period on an 'as required’ basis

- Established for frequently used goods/services

- Estimated quantities may be provided however there

is no minimum commitment

- A Contract is formed when an order is placed on the

supplier

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BENEFITS OF PANEL CONTRACTS?

Benefits:

- reducing the costs for Council and suppliers by having

to undertake fewer tenders

- predetermined contract terms, conditions and

performance measures apply

- Competition still maintained through seeking quotes

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HOW DO WE ENGAGE SUPPLIERS?NSW Legislative Requirements

Local Government Act 1993 - Section 55 The Local Government General Regulation 2005, Part 7 TenderingDLG – Tendering Guidelines for NSW Local GovernmentNSW Government Code of Practice for ProcurementCouncil Procurement Policy

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THE $150K THRESHOLD

- NSW Local Government Act s55 – requirements for tendering

- All contracts >$150K ($250K State Gov) require a public tender

- GST - The threshold is inclusive of GST.- Term - The value is the total over the complete term

of the contract (including options)- Accumulative total - A council cannot avoid the

requirement to invite tenders breaking the purchases into separate contracts

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EXCEPTIONS- Contracts established by a person prescribed by the

regulations’. Prescribed organisations: NSW Procurement – Procurepoint / NSWBuyLocal Government Procurement (LGP)Procurement Australia

- Council can purchase from panels whatever the value without having to undertake a public tender process (quotes will be sought)

- LGP – Local Government Procurement. Panel contracts, tendered every 3-4 years.

- NSW Procurement – panel contracts as for LGP Warringah Council panels

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03WORKING WITH COUNCIL ,KNOWING YOUR CUSTOMER

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WHAT IS SHOROC?

- SHOROC is one of 18 Regional Organisation of

Councils (ROC’s) across NSW

- Warringah, Pittwater, Manly and Mosman Councils

- Work together to deliver regional outcomes; ROCS

often aggregate the requirements of Councils

- SHOROC tenders issued by SHOROC or one of the

member Councils

- Other strategic alliances

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IDENTIFYING TENDER OPPORTUNITIES- SMH and Manly Daily (required under Act)

- Tender search agencies

- Individual Council Web Pages

- Panel contract opportunities through LGP, NSW

Procurement

- Main contractor may be looking for local sub-

contractors – look at tender awarded website

- Tenderlink – used by most councils in NSW

including all SHOROC Councils

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TENDERLINK

- Our electronic tendering application for all tenders

plus quotations >$30K

- Benefits:

Receive notification each time a requirement is

published within your industry category

Download and respond electronically

Transparency, audit trail

- Register on each of our portals free or full service

option for an annual subscription fee

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PROCUREMENT <$150K

- Process based on internal policy

- Warringah

$30K to $150K minimum of 3 quotes (using Tenderlink)

<$30K 1 quote, best practice 2-3

- How do we get quotes? Open and selective

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HOW TO BE INVITED TO QUOTE

- Make yourself known to the relevant managers in

Council so that when there is a requirement you are

invited to quote

- Decentralised Procurement – it may take a while to

find the right person!

- Website – Council staffing structure

- Update of Council Intranet (proposed database)

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KNOWING YOUR CUSTOMER

- Understand our business:

Budgets – preparation November to Feb; spending July

Community Strategic Plan / Corporate Plans – indication of

projects

CAPEX program

- Email first – don’t just drop in!

- Respect our constraints

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PROBITY

- Council employees are not permitted to accept gifts,

benefits or hospitality from suppliers

- Not only will the gift not be accepted your reputation

will be tarnished

- ICAC – investigate and expose corrupt conduct

- Ombudsman (NSW and Warringah internal) –

investigate maladministration and corruption

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WHAT ARE WE LOOKING FOR?

Best Value For Money- Price

- Service

- Quality – Warranties - Fit for purpose

- Delivery Lead times - Storage

- Sustainability - environmental considerations in

production and use

- Workplace Health Safety

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INSURANCE & WHS REQUIREMENTS

WHS

- Must be fully compliant with the NSW WHS Act

- Key Criteria:

SWMS

First Aid

Workers Compensation or Income protection if sole

trader

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INSURANCE & WHS REQUIREMENTS

INSURANCE

- Standard: Public Liability - $20M

- Standard: Professional Indemnity (where applicable) -

$10M

- Option to take out/upgrade if successful (must be

costed in response)

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HOW TO SUBMIT A COMPYING SUBMISSION – IN A NUTSHELL!

- Provide all the information in the format requested

- Mandatory Requirements

- Evaluation criteria

- Alternative Offers

- Don’t be late!

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- Questions

- Closing by Clr Sue Heins, Deputy Mayor

Local Business Statistics

SHOROC- 109,310 local jobs

- 34,229 businesses

Warringah- 59,891 local jobs

- 16,319 businesses

The Professional, Scientific and Technical Services industry had the largest number of total registered businesses in Warringah Council area, comprising

17.9% of all businesses, compared to 14.2% in New South Wales.

courtesy of 2013 – economy id

Registered business industries in Warringah compared to New South Wales

Construction, Manufacturing, Finance & Insurance, Real Estate & Rental Hiring and Professional, Scientific & Technical Service industries are all above NSW average.

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04USEFUL SITES

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- Tenderlink:- https://www.tenderlink.com/warringah/- https://www.tenderlink.com/pittwater/- https://www.tenderlink.com/manly/- https://www.tenderlink.com/mosman/- https://www.tenderlink.com/shoroc/

- Council Websites:- http://www.warringah.nsw.gov.au/- http://www.pittwater.nsw.gov.au/- http://www.manly.nsw.gov.au/- http://www.mosman.nsw.gov.au/- http://shoroc.com/

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- Local Government Procurement: - http://www.lgp.org.au/

- NSW Tendering Website:- https://tenders.nsw.gov.au/

- NSW Procurement pre-qualification schemes: - https://tenders.nsw.gov.au/?event=public.Schemes.list

- Department of Local Government:- http://www.dlg.nsw.gov.au/dlg/dlghome/dlg_index.asp

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