City of Gold Coast Procurement of Innovation

Applicant Guide January 2017

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Table of Contents 1. Purpose ....................................................................................................................................... 3

2. Introduction ................................................................................................................................ 3 2.1 A focus on innovation within the City ................................................................................. 3

What does the City consider to be an Innovation Proposal? .................................... 4 2.1.1 What is not considered an Innovation Proposal? ..................................................... 4 2.1.2

3. Policy .......................................................................................................................................... 4 3.1 Overview ........................................................................................................................... 4 3.2 Sound Contracting Principles ............................................................................................ 5 3.3 Procurement Requisites .................................................................................................... 5

4. Probity ......................................................................................................................................... 5 4.1 Confidentiality ................................................................................................................... 6 4.2 Conflict of Interest ............................................................................................................. 6

5. Governance ................................................................................................................................ 6 5.1 Roles and responsibilities ................................................................................................. 7

6. Types of engagement ................................................................................................................. 7 6.1 Direct engagement ............................................................................................................ 7 6.2 Competitive sourcing process ........................................................................................... 8

7. Process ....................................................................................................................................... 8 7.1 Overview ........................................................................................................................... 8 7.2 Phases .............................................................................................................................10 7.3 Documentation .................................................................................................................11

Stage 1 – Proposal submission ...............................................................................12 7.3.1 Stage 2 – Eligibility assessment ..............................................................................13 7.3.2 Stage 3 – Proposal assessment ..............................................................................15 7.3.3 Stage 4 – Selection, negotiation, award ..................................................................18 7.3.4

8. Related Information ...................................................................................................................20

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1. Purpose The purpose of this guide is to communicate the process management guidelines adopted by the City of Gold Coast (City) with regards to Procurement of Innovation.

To guide, educate and encourage innovative thinking and solutions within the local community and industry, this document aims to present transparency on City policy with regards to innovation, including guiding principles, objectives, outcomes and governance.

In its publication the City aims to provide a clear, consistent approach and certainty to private sector participants as to how their proposals will be received and assessed within a transparent and consistent framework.

2. Introduction The City is eager to work with the private sector to explore unique and innovative opportunities that provide significant benefits, support business improvement and promote economic growth for the city that are aligned with the City’s Corporate Plan, Vision and Strategies.

Our City Vision “Inspired by lifestyle, Driven by opportunity” informs all strategic planning for the city.

The City’s Corporate Plan - Gold Coast 2020 identifies what we need to do between now and 2020 to work towards the City Vision and is structured around the following three themes:

The best PLACE to live and visit PROSPERITY built on a strong diverse economy PEOPLE contribute to a strong community spirit

Innovation represents the first of six key strategic themes and key actions of the Economic Development Strategy 2023 that will help facilitate opportunities for local business and industry expansion and increase recognition for the Gold Coast as an innovatively led city.

2.1 A focus on innovation within the City The City recognises the value and benefit in encouraging innovation within the local community to entice new and explorative methods of delivering products and services that translate into business value. By promoting a creative outlet across a myriad of industries, the City aims to maximise opportunities for businesses and individuals to have a viable platform to exhibit their ideas, talents and visions.

By taking proactive steps to encourage innovation as a core competency significant benefits are yielded to the City, private sector and the wider community, these include:

Attracting new innovations that will lend positively to the local economy and industry. Promoting the development of local industry, business and individuals. Encouraging the development of new business, improving the competitiveness of existing business and

creating sustainable employment for the city. Increasing the City’s reputation as an innovatively led city. Enhanced and responsive public services delivered more efficiently and effectively. Forging the development of strategic partnerships with established and developing businesses.

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What does the City consider to be an Innovation Proposal? 2.1.1

An innovative proposal is generally a written proposal by an individual or organisation for a unique and innovative idea for the supply of goods, services or works. The applicant must be uniquely able to deliver the proposed service.

To decide if you meet these criteria, answer the following essential questions.

Does your innovative proposal:

Articulate a new, unique and innovative method of delivering goods or services or has intellectual property rights applied?

Align to the City’s corporate vision and objectives and provide an advantageous outcome to the City? Solve a problem or address an advantageous opportunity for the City, or enhance services provided to rate

payers? Achieve value for money outcomes to the City? Support growth of local business and provides economic benefit for the City?

What is not considered an Innovation Proposal? 2.1.2

An Innovation Proposal will not include: Initiatives involving advertising, hospitality or return of favour. Requests of sponsorships or grant funding. Investment attraction services or beneficial enterprise agreements. Consultancy services. A contracting activity solicited, sought or requested by the City through the process set out in the City’s

Procurement Policy and Contract Manual. Proposals of goods and services widely available to the City.

3. Policy

3.1 Overview The City must use procurement to advance our strategic priorities and outcomes whilst achieving value for money with probity and accountability.

The City’s procurement activities are governed by the Local Government Act 2009, Local Government Regulation 2012 and City’s Procurement Policy and Contract Manual.

The City intends to provide for circumstances in which it seeks to engage an innovative procurement. To engage in innovative solutions for the benefit of the City, this Guide has been developed as a mechanism to manage the end to end process whilst supporting the principles and objectives of the City’s Procurement Policy and Contract Manual.

The City adheres to the sound contracting principles as defined in Section 104(3) of the Local Government Act regarding all procurement activities.

Applicants wanting to engage in an innovation procurement activity are required to comply with relevant City policy, as defined within section 8 of this document.

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3.2 Sound Contracting Principles Sound contracting principles will continue to underpin procurement in innovation carried out within the City:

Value for money. Open and effective competition. The development of competitive local business and industry. Environmental protection. Ethical behaviour and fair dealing.

3.3 Procurement Requisites Procurement requisites will continue to be fundamental considerations in the assessment of applications, these include: Australian made. Buy local. Innovative procurement. Social procurement. Quality assurance. Sustainable procurement. Environmentally friendly products. Recycled products. Work Health and Safety (WHS). Probity.

4. Probity The City conducts its commercial dealings in a transparent manner which demonstrates integrity, transparency and accountability.

All reasonable standards of probity and accountability will be demonstrated through the application of applicable guidelines and policy.

Principles and objectives of probity cover the following:

Use of a competitive process. Fairness and impartiality. Transparency of process. Independence through effective management of conflicts of interest. Accountability of process. Security and confidentiality of information and materials. Innovation Proposals will be assessed in a fair and open manner, demonstrating the highest levels of probity consistent with the public interest. The application of established probity principles aims to assure all parties of the integrity in the decision making processes.

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The process will feature clearly defined separation of duties and personnel between the assessment and approval functions.

4.1 Confidentiality In the consideration and assessment of unsolicited innovative proposals there is need for a high degree of transparency and accountability. There may be a requirement for some information to be kept confidential, for a specified period of time. The City places high degree of importance on matters of confidentiality to ensure the confidence of the applicant and in the integrity of the process.

4.2 Conflict of Interest Applicants wanting to engage with the City through the Procurement of Innovation process must comply with the requirements of the City’s Conflicts of Interest and Confidentiality process. The City requires the identification, management and proactive monitoring of conflicts of interest. Applicants and City participants will equally be subject to relevant protocols to ensure perceived conflicts are declared and appropriately acted on. This will involve disclosing any current or past relationships that may unfairly predispose the integrity of the assessment process.

5. Governance A governance framework has been established to ensure each Innovation Proposal received by the City is subject to consistent review protocols and assessment standards, and the appropriate persons are engaged in a cohesive, consultative and timely manner.

The Procurement of Innovation process will be jointly overseen by the Economic Development and Major Projects (EDMP) and Organisational Services Directorates.

To encourage the best ideas and solutions, and oversee the fulfilment of corporate objectives with respect to innovation, the City will establish a Consortium Group. The objective of the group is to develop a trusted, efficient and facilitative platform to which internal and external parties to the City are confident to present Innovation Proposals.

The primary focus areas of the Consortium Group will be to:

Advocate innovation throughout the organisation. Facilitate open and transparent discussion between its members. Provide advice and recommendations on proposed action for progressing issues. Review, provide feedback and endorse submissions. Propose recommendations and facilitate the decision making process. Negotiate outcomes.

The plan or strategy decided for a particular Innovation Proposal will be determined by the corresponding level of value and risk.

The Chief Procurement Office delegate will provide oversight and guidance to ensure compliance with this framework. .

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5.1 Roles and responsibilities Stakeholders from participating City directorate(s) and branch(s) will be engaged and consulted in a timely manner at the respective stages to ensure a coordinated approach is taken, and relevant oversight and input (technical and financial) is received.

The Consortium Group will be engaged for the initial feasibility review and will maintain involvement until stage four should the proposal be eligible to proceed. Stakeholders will be determined by various factors such as size, complexity and the targeted department.

Participating group members will be determined by various factors such as size, complexity and the targeted directorate / department.

Consortium Group members will comprise of primary and provisional1 members;

The City will manage an interactive process between City representatives and the Applicant at all stages of the process.

6. Types of engagement The means by which the City resolves to engage in a contract with the Applicant will be determined through the findings of the assessment. In all instances the City retains the sole and unfettered discretion to decide if a proposal meets the criteria listed for direct engagement. Two types of engagements can be adopted:

Direct engagement. Competitive sourcing process.

6.1 Direct engagement The City may elect to utilise direct engagement, if after assessment has been undertaken the City deems:

1. The Innovation Proposal contains:

proprietary rights such that conducting a competitive sourcing process for the requirement would infringe the intellectual property rights of the party providing the Innovation Proposal; or

1 * Provisional members will alter depending on the nature, size, value, complexity and targeted directorate of the innovation

Title Area Function

Innovation Champion Economic Development Reviewer

Innovation Lead (directorate representative) Nominated Branch Reviewer

Chief Procurement Office (delegate) Chief Procurement Office Approver

Financial Sponsor* Nominated Branch Approver

Asset Custodian* Nominated Branch Assessor/ Reviewer

Procurement Officer* Chief Procurement Office Assessor/ Reviewer

Subject Matter Experts* As required Assessor/ Reviewer

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unique and innovative elements such that conducting a competitive sourcing process for the requirement would deprive the party making the Innovation Proposal of the benefit its innovation.

2. The Innovation Proposal is considered the most advantageous outcome for the City; and

3. Value for money to the City can be demonstrated and substantiated.

6.2 Competitive sourcing process

Where the circumstances of an Innovation Proposal do not warrant a direct engagement, the City will comply with the remaining requirements of the City’s Procurement Policy and Contract Manual and Annual Contracting Plan, which generally result in a competitive sourcing process.

In such circumstances the City acknowledges it has been granted access to confidential information as a result of the proposal process. The City declares any business related information, data or application systems, code and documentation (‘information’), disclosed in connection with the innovation proposal will be subject to the following obligations:

1. The City will not, without the prior written consent of the applicant, disclose the information to any person;

2. The City will not use the information for any purpose whatsoever other than that for which it was provided by the applicant

3. The City will, on the written request of the applicant, return all the information other than that which is, or has been disclosed or provided orally; and

4. The City will obtain no right of any kind in or to the information upon its receipt except for the purposes for which it is provided.

7. Process

7.1 Overview This section outlines the process that will apply to the consideration and assessment of Innovation Proposals received by the City. It provides a consistent and transparent mechanism by which the City will assess each Innovation Proposal and approve financial support for the negotiated engagement.

The City reserves the right to further consider the proposal at each successive stage.

The Procurement of Innovation framework specifically addresses the process applied to unsolicited proposals, which will be explained in the following sections. Solicited proposals are governed by a separate process and present an alternative method for the City to engage the commission of innovative goods, services or works from potential applicants.

The following definition will be applied to solicited proposals;

A solicited proposal is a written document that responds to a specific need articulated by the City that aims to solve and resolve an issue or organisational challenge.

For further information on solicited proposals please visit the Innovation page on our website cityofgoldcoast.com.au.

In the context of this guide the following definition will be applied to unsolicited proposals;

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An unsolicited proposal is a written proposal for a new or innovative idea submitted by an applicant other than a government entity, in accordance to the City’s guidelines, usually for the purpose of obtaining a contract or grant funding.

The process to be followed for Innovation Proposals is defined within a four stage process depicted in figure 1.

Each stage will comprise key steps that incorporate specific prerequisites that need to be addressed by the Applicant in order to qualify for progression to the subsequent stage.

Figure 1 Procurement of Innovation Overview

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7.2 Phases All applications will be subject to a high-level assessment at stage 2 to determine the feasibility and achievability of the City adopting the innovation. The feasibility review will be undertaken by key stakeholders.

Applications taken through the innovation process will be referred under two separate statuses as depicted in figure 2:

• Applications in Stage 1 and 2 are referred under the proposal in “Application Status”. Here applications are determined for progression to assessment.

• Applications in Stage 3 and 4 are referred under the proposal in “Activity Status”. Here applications are determined as suitable for formal assessment and potential negotiation and subsequent award of contract.

Figure 2 Procurement of Innovation Application Status

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7.3 Documentation Key documentation will be referred to throughout each stage of the process. The following table outlines the documents applicable to each stage.

The Innovative Proposal should:

(a) Employ a well-structured and consistent approach.

(b) Use easy to understand language.

(c) Clearly articulate proposal objectives and benefits.

(d) Include any supporting information to help substantiate claims.

(e) Include your corporate structure (if relevant).

Ancillary evidence may be requested by the City to further support claims, including:

(a) Evidence of additional secured funding and other partners.

(b) Evidence of past activity successes.

(c) Presentation to key stakeholder assessment panel group from the City.

Stage Document Requirement

Proposal Submission

Innovation Proposal application form

Mandatory

Supporting proposal document Optional

Eligibility Assessment Internal City review only

Proposal Assessment

Demonstration presentation document

Optional

Conflict of Interest and Confidentiality Agreement

Mandatory

Selection Negotiation and Award

Contract documents Mandatory

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Stage 1 – Proposal submission 7.3.1

Stage 1 - Objective

The City has a dedicated web page promoting innovation with the City containing instructions on how to register and submit applications for innovation. The web page contains an online application form, which is the requisite method for submitting Innovation Proposals.

Applicants who submit proposals using an alternate method will be advised in writing on the correct submission process.

Stage 1 - Steps

1. Applicants wanting to submit an Innovation Proposal are to complete and submit the Innovation Application Form ensuring all necessary information is provided, including any applicable insurances and licences.

2. Following submission Applicants will receive a confirmation receipt verifying the details of their application.

3. The City is responsible for promptly acknowledging receipt of the application and will assess the application to ensure the paperwork has been completed satisfactorily.

4. Applications deemed incomplete will be identified by the City and the Applicant will be advised in writing within seven working days to provide the required information.

5. Subject to completion of step 4 the City will finalise the closure of stage 1 requirements.

Stage 1 - Outcomes

The following outcomes may, at the City’s sole and unfettered discretion, result from this stage:

• The application is considered acceptable to progress to Stage 2 – Eligibility assessment.

a) The Applicant will be formally be notified in writing advising their application proposal will proceed to the eligibility stage

• The application is not acceptable to progress to Stage 2 – Eligibility assessment.

b) Applicants will be formally notified of their unsuccessful application.

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Stage 2 – Eligibility assessment 7.3.2

Stage 2 - Objective

A preliminary assessment will be undertaken to determine whether the eligibility criteria have been met and whether the Innovation Proposal can realistically be supported by the City, based on financial and resource capacity.

Stage 2 - Steps

1. A designated City Officer will review and assess the application against the following eligibility criteria, which must be met for an Innovation Proposal to be considered by the City.

Eligibility Criteria

(a) Proposal received from an entity, other than a government entity or an entity which represents a group of government entities (such as Local Buy Pty Ltd).

(c) The entity should be a Gold Coast business or have the intent to establish their business on the Gold Coast.

(d) The proposal must not be for goods and services readily available to the City or where the City already has an arrangement in place for the goods or services.

(e) The proposal should address one or more of the City’s vision objectives.

2. The City may request further information from the Applicant if/where required.

3. If the eligibility criteria are met the City may determine the key stakeholders that will be involved in the assessment and forward the proposal to the stakeholder group for initial review.

4. A high-level review may be undertaken by the key stakeholders to determine feasibility of the proposal and whether the City will support, finance and implement the innovation. Stakeholders will be given two days to determine and confirm if the application is to be formally assessed and progress to Stage 3 – Proposal assessment.

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Stage 2 - Outcomes

The following outcomes may result from this stage:

• The application is considered suitable for progression to Stage 3 – Proposal assessment

a) The Applicant will be formally be notified in writing advising their application proposal will proceed to the assessment stage and an on-site presentation meeting date will be proposed.

• The application is not considered suitable for progression to Stage 3 – Proposal assessment

b) Proposals that do not meet the eligibility requirements will be formally notified of their unsuccessful application.

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Stage 3 – Proposal assessment 7.3.3

Stage 3 - Objective

A proposal assessment will be undertaken to identify the potential benefit and value to the City including alignment to strategic outcomes and objectives. The proposal will be explored with the requisite technical input and advice to determine whether sufficient justification exists to justify direct dealing without seeking best value for money through an open market process.

The assessment process will incorporate an on-site demonstration where the Applicant will be given the opportunity to pitch their idea and explore their innovation in further detail.

Each proposal will be assessed on its own merit and each determination, interpretation or other action made or taken by the City with respect to a proposal will be at the unfettered discretion of the City and will be final, conclusive and binding.

An assessment panel comprising appropriately qualified representatives will be established to undertake the assessment. The involvement of the assessment panel will vary depending on the nature of the proposal.

The assessment panel will:

• Participate in assessment meetings, where appropriate.

• Attend the onsite presentation

• Assess the application against the stated assessment criteria.

• Consider the issues and risks raised by approving parties.

• Prepare recommendations for consideration by approving parties

Proposals will be subject to predetermined assessment criteria where a determination will be made as to whether the application will progress to Stage 4.

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Stage 3 - Core assessment criteria

Proposals will initially be assessed against the following core assessment criteria.

Stage 3 - Optional additional assessment criteria

Additional assessment criteria relevant to the proposal may also be considered if required. In this case the Applicant will be duly notified of the additional assessment criteria and given adequate time to address. These may include one or more of the following:

The above criterion is not listed in order of weighting or significance.

Core assessment criteria

(a) Alignment with Council’s strategic and operational plans

(b) Resource capacity to implement

(c) Quality of the application

(d) Merit of the application

(e) Value for money

(f) Funding

Additional assessment criteria

(a) The entity’s capacity to manage the innovation and the subsequent contractual arrangement

(b) Any alternative income or assistance that is available for the innovation

(c) Other assistance the City may have provided to the entity in the same financial year

(d) Technical, financial, risk and logistical aspects of the proposal

(e) Outcomes and successful management of previous innovation pilots and arrangements

(f) The enhancement of the City of Gold Coast brand and reputation via the innovation

(g) The marketing and media exposure opportunities (local, state and international) and expected reach of the innovation

(h) The absence of alignment to political or religious groups that may present a reputation risk

(i) The absence of connection to any individual that could be perceived to be aligned to a wider business objective

(j) Any products or services not endorsed by City (if commercial entity)

(k) All permits, insurances and other approvals relating to the proposal are addressed and there is adequate insurance cover for the proposal.

(l) Inclusion of innovative attributes which may not necessarily stand alone as unique but, when combined, create a unique proposal.

(m) In the absence of available budget from the City, co-contribution models to be considered (government, industry or private)

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Stage 3 - Steps

1. The Applicant will be invited to conduct an on-site demonstration session. The demonstration will form part of the overall assessment.

• The session will be interactive and allow the City and Applicant to ask questions, and address potential risks and issues. The City may request the Applicant to provide additional information that highlights the benefits of the Innovative Proposal.

2. Following the demonstration the City will undertake a formal assessment, which may include written clarifications to the Applicant requesting additional information.

• Should the City determine the inclusion of one or more of the optional criteria, the Applicant will be notified and given adequate time to address any questions in writing.

• Clarification responses will supplement the original application and inform the final recommendation.

3. A recommendation will be put forward to the identified approving parties for determination as to whether the proposal justifies the organisational and community value. A decision will be reached as to whether a contract will be formally established with the Applicant.

4. The Applicant will be notified as to the outcome of the assessment and whether their proposal will proceed to Stage 4.

Stage 3 - Outcomes

The following outcomes may result from this stage:

• Recommendation to proceed to Stage 4 - Selection, Negotiation, Award

• Recommendation not to proceed to Stage 4 - Selection, Negotiation, Award

a) In the event the assessment criteria have not been sufficiently addressed and the application is deemed unsuitable for further consideration, the City will identify what further assistance may be extended to the Applicant to assist them to further develop their proposal.

b) If the proposal is not sufficiently unique to justify direct engagement the assessment panel will agree on a recommended course of action. The City may comply with the remaining requirements of Council's Procurement Policy and Contract Manual and City Contracting Plan. This may result in a competitive sourcing process.

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Stage 4 – Selection, negotiation, award 7.3.4

Stage 4 - Objective

This stage deals with matters relating to the formation and negotiation of contract, agreement of commercial terms and conditions, mobilisation of the contract and start-up activities.

Stage 4 - Steps

1. A designated City representative will initiate the contract and engagement process, and facilitate

endorsement by the Chief Procurement Office delegate.

• This will include completion of an internal memorandum summarising the Innovation Proposal with the proposed contract agreement and submit to the Chief Procurement Office delegate.

2. Subject to the appropriate approval, the City will prepare and present a binding offer to the Applicant (including appropriate legal terms and conditions) which upon agreement will form the legal contract agreement.

Should negotiations be required the Applicant will be informed of the protocols for negotiation. The City will make available qualified resources from the Chief Procurement Office and Legal Services (including financial and technical advice where required) to facilitate proceedings.

3. Upon recommendations put forward in step 6, the Applicant will be required to review the revised contract agreement, sign and return a counter-signed copy of the contract agreement to the City for final execution.

4. A designated City representative will manage the contract agreement including monitoring performance requirements and milestones included with respect to the process and contract payment.

5. The Applicant will be required to provide all documentation and reporting as part of the contract agreement and adhere to the City’s Procurement Policy and Contract Manual.

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Stage 4 – Outcomes

The following outcomes may result from this stage:

• Recommendation that the negotiated contract agreement will be accepted.

a) The Applicant will be formally notified in writing advising the acceptance of the negotiated contract agreement and requested to execute the contract agreement by signing the agreement and returning it to the City to execute.

b) The Applicant will be formally notified in writing advising the acceptance of the negotiated contract agreement and requested to execute the contract agreement by signing the agreement and returning it to the City to execute.

• Recommendation that the negotiated contract agreement will not be accepted.

c) The Applicant will be formally notified in writing advising their proposed terms and conditions have not been accepted by the City. In this instance the City will extend acknowledgement to the Applicant for their participation in the process.

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8. Related Information Legislative Local Government Act 2009 Local Government Regulation 2012 Information and Privacy Act 2009 Corporate City Contracting Plan Corporate Plan Gold Coast 2020 Economic Development Strategy 2023 City Policies and Procedures Procurement Policy and Contract Manual Right to Information and Information Provision Policy Work Health and Safety Policy Complaints (Administrative Actions) Policy & Procedures

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For more information P 1300 GOLDCOAST (1300 465 326) W cityofgoldcoast.com.au