Doing Business with Council August 2014 workshop

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Presentation to SME's on Procurement and accessing information regarding tenders and panel contracts for local government delivered by Warringah Council.

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Doing Business with Council August 2014 workshop

  1. 1. 1
  2. 2. 2 Local Business Forum Wednesday 20th August 2014 Presented by: Lisa Neal & Paul Trigg Procurement Services
  3. 3. 3 01 INTRODUCTION
  4. 4. 4 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
  5. 5. 5 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
  6. 6. 6 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
  7. 7. 7 02 HOW WE SPEND & THE RULES WE’RE BOUND BY
  8. 8. 8 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: ¾ Natural Environment Works (53%) ¾ Trade Services (60%) ¾ Purchase of Motor Vehicles and accessories (92%) ¾ Heavy vehicle servicing (100%) ¾ Catering (90%)
  9. 9. 9 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
  10. 10. 10 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
  11. 11. 11 HOW DO WE ENGAGE SUPPLIERS? NSW Legislative Requirements ƒ Local Government Act 1993 - Section 55 ƒ The Local Government General Regulation 2005, Part 7 Tendering ƒ DLG – Tendering Guidelines for NSW Local Government ƒ NSW Government Code of Practice for Procurement ƒ Council Procurement Policy
  12. 12. 12 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
  13. 13. EXCEPTIONS - Contracts established by a person prescribed by the regulations’. Prescribed organisations: 13 ™NSW Procurement – Procurepoint / NSWBuy ™Local 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
  14. 14. 14 03 WORKING WITH COUNCIL , KNOWING YOUR CUSTOMER
  15. 15. 15 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
  16. 16. 16 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
  17. 17. 17 TENDERLINK - Our electronic tendering application for all tenders plus quotations >$30K - Benefits: ¾Receive notification each time a requirement is published within your industry category ¾Download and respond electronically ¾Transparency, audit trail - Register on each of our portals free or full service option for an annual subscription fee
  18. 18. 18 PROCUREMENT <$150K - Process based on internal policy - Warringah ¾$30K to $150K minimum of 3 quotes (using Tenderlink) ¾<$30K 1 quote, best practice 2-3 - How do we get quotes? Open and selective
  19. 19. 19 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)
  20. 20. 20 KNOWING YOUR CUSTOMER - Understand our business: ¾ Budgets – preparation November to Feb; spending July ¾ Community Strategic Plan / Corporate Plans – indication of projects ¾ CAPEX program - Email first – don’t just drop in! - Respect our constraints
  21. 21. 21 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
  22. 22. 22 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
  23. 23. 23 INSURANCE & WHS REQUIREMENTS WHS - Must be fully compliant with the NSW WHS Act - Key Criteria: ¾ SWMS ¾ First Aid ¾Workers Compensation or Income protection if sole trader
  24. 24. 24 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)
  25. 25. 25 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!
  26. 26. 26 - Questions - Closing by Clr Sue Heins, Deputy Mayor
  27. 27. 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
  28. 28. 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.
  29. 29. 29 04 USEFUL SITES
  30. 30. 30 - 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/
  31. 31. 31 - 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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