Slides from a Warringah Council presentation & overview on how local businesses can become involved in procurement.

1. Local Business Forum
6th June 2013
Doing Business with
Council
Lisa Neal and Paul Trigg
Warringah Council

2. Opening Address –
Warringah Mayor Michael Regan

3. Housekeeping
 Phones on silent
 Presentation will be emailed to those who
have registered
 Handouts – useful sites
 Feedback forms
 Interactive session – please ask questions

4. Introductions
 Lisa Neal & Paul Trigg – Procurement, Fleet and Plant
 Paul William-Smith – Regional Economic Development
Co-ordinator for Pittwater and Warringah
 Functional managers
 Representing the other councils:
 Pittwater Council – Peter Baartz and Paul van der Kraan
 Manly Council – Helen Lever and Jennifer Dyke
 Mosman Council – Max Glyde, Craig Covitch

5. Agenda
 SHOROC
 What we spend
 How we engage suppliers - regulations
 Identifying tender opportunities
 What we are looking for
 How to present a complying submission
 New initiatives

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. SHOROC
 SHOROC is one of 18 Regional Organisation
of Councils (ROC’s) across NSW
 Partnership between Warringah, Pittwater,
Manly and Mosman Councils.
 Work together to deliver regional outcomes;
ROCS often aggregate the requirements of
Councils
 Previously SHOROC tenders managed by
one of the member Councils or outsourced,
move towards SHOROC having a
procurement function

8. What do we spend?
 SHOROC Councils spend $90M per annum on
materials and contracts excluding CAPEX projects
 $18M of this is through joint procurement activities
 Difficult to put $$ on current local spend, numerous
contracts:
 Natural Environment Works (53%) / Tree pruning
 Trade Services (60% local)
 Purchase of Motor Vehicles and accessories (92%)
 Heavy vehicle servicing (100%)

9. How do we engage suppliers?
NSW Legislative Requirements
 Local Government Act 1993 -
Section 55
 The Local Government
General Regulation 2005,
Part 7 Tendering
 DLG – Tendering Guidelines
for NSW Local Government
 NSW Government Code of
Practice for Procurement
 Council Procurement Policy

10. 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

11. Exceptions
 ‘Contracts established by a person prescribed by
the regulations’. Prescribed organisations:
 NSW Procurement – NSWBuy
 Local Government Procurement (LGP)
 Procurement Australia
 Council can purchase from panels whatever the
value without having to undertake a tender process
 LGP – Local Government Procurement. Panel
contracts, tendered every 3-4 years.
 NSW Procurement – panel contracts as for LGP
plus Accreditation Schemes which are continually
open to new suppliers. Currently Temporary Staff,
ICT
 Warringah Council panels

12. Identifying Tender
Opportunities
 Main newspaper in the state plus the local
paper - to attract local suppliers
 Tender search agencies
 Individual Council Web Pages
 Panel contract opportunities through LGP,
NSW Procurement
 Main contractor may be looking for local sub-
contractors – tender awarded website
 Tenderlink - used by 91 councils in NSW
including all SHOROC Councils

13. Tenderlink
 Our electronic tendering application for all tenders
plus quotations >$30K
 Used by all SHOROC Councils
 Benefits:
 Receive notification each time a requirement is
published within your industry category
 Transparency, audit trail
 Register on each of our portals free of charge full
service option from Tenderlink via annual
subscription

14. 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

15. 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

16. 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

17. 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 internal) –
investigate maladministration

18. 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

19. WHS Requirements

20. How to Submit a Complying
Submission - in a nutshell!
 Provide all the information in the
format requested
 Mandatory Requirements
 Evaluation criteria
 Alternative Offers
 Don’t be late!

21. Initiatives
 Warringah – trialling position of Buyer
 The focus of this position:
 Save money – cut out the middle man
 Develop local suppliers
 Pilot – childcare fit-out:
 estimated $107K
 achieved 22% cost reduction using local suppliers
 Expansion of Data-base
 Workshops for local business on tendering

22.  Questions
 Closing by Clr Sue Heins

23. Useful Sites
 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/

24.  SHOROC:
 http://shoroc.com/
 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