Doing Business with WA Local Government
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Doing Business with WA Local Government Western Australian Local Government Association (WALGA)
Transcript of Doing Business with WA Local Government
Doing Business with WA Local Government Western Australian Local Government Association (WALGA)
What’s coming up…..
• The rules Local Government has to follow…
• The Invitation
• Preferred Supplier Arrangements
• Tips for responding
The Procurement Framework
Local Government Procurement Framework
Local Government Act 1995
Local Government (Functions and
General) Regulations 1996
Purchasing PolicyRegional Price
Preference PolicyPanel of Prequalified
Suppliers Policy
Code of ConductDelegations Authority to
Purchase
Procurement Guidelines & Forms
Procurement Systems
Competition and Consumer Act 2010
(Fed) Fair Trading Act 2010
(WA)Common Law
Corruption, Crime and Misconduct Act
2003Public Sector
Management Act 1994
Audit
Compliance
Underlying principles
Value for Money
Procedural Fairness
Market Competitiveness
Accountability
Compliance
Openness and Transparency
Sustainability
Local Government Regulations
• Governed by the Local Government Act 1995 andassociated Regulations
• Requirement to publicly invite tenders (state wide)if contract value is expected to be
$150,000 exc GST(unless exemption applies)
Local Government Regulations
• Sets out:
– Requirement to publicly invite
– Anti-avoidance
– Minimum time to be open to public
– Receiving and Opening
– Late responses
– Rejecting and accepting tenders
– Additional information
– Notification of outcome
– Contract variation
Exemptions
• Exemption to publicly invite Tenders exist when contracting with:
– WALGA Preferred Suppliers and other exempt suppliers – no limit
– Australian Disability Enterprises – No Limit
– Suppliers pre-qualified under a panel established by the Local Government (if local policy permits)
– Emergency provisions
– Genuine sole supply (unique nature)
Purchasing Policy
Each Local Government must have a purchasing policywhich outlines how it must procure:
• Thresholds – under $150,000
• how many quotes
• written or verbal?
• Sole supplier
• Emergency purchasing
• Pre-qualified supplier panels
In carrying out its functions a Local Government is to use its best endeavours to meet the needs of current and future generations through an integration of environmental protection, social advancement and economic prosperitySection 1.3(3) of the WA Local Government Act 1995
Sustainable Procurement
Positive environmental, social and economic impacts possible over the entire life cycle.
• Environmental• Social – indigenous, disabled, human rights, labour
practices• Economic – best possible outcomes for ratepayers,
local economic benefit
“”
Local Government
Local Economic BenefitAchieved through:
• Regional Price Preference Policy• Local Panel• Local Economic Benefit Criteria• Preferred Supplier
Arrangement: zone/local filter
Local Panels
Particularly useful for those areas not covered by Preferred Supplier Arrangements e.g.
• Trades• Automotive• Construction
Defined process by Act
The Invitation to …..
Process
• Must satisfy selection criteria
• Due diligence
• Reach a Value for Money consensus decision
• Approved/Endorsed by CEO and/or Approvedby Council
Value for Money
• Purchasing Decisions are based on ‘Value for Money’
• Price is only one contributing factor to the overall Valuefor Money assessment
• No guarantee to local suppliers
• Must satisfy other Value for Money considerations(selection criteria)
• Process must demonstrate fairness and equity
Conditions
• Tenderers should not rely on any information provided
by any person other than the person listed
• Do not canvas!
• No Late Responses
• Selection Criteria
The Panel
Compliance Criteria - minimum requirements to be met by Tenderers
• Tender Profile – ABN – full details – referees• Financial position• Conflict of Interest: actual, potential or perceived• Insurances:
• Public Liability • Motor Vehicle, plant and equipment• Workers’ comp as per the Act
• Departures, exclusions from conditions of contract (yes/no) then fill out relevant attachment
• Any critical assumptions you have made relevant to the tender (pricing, ability or method of providing the requirements)
The Panel
Qualitative Criteria (Weighted) – basis for evaluating “howwell Tenderer is suited to meet the requirement”.
• Demonstrable Projects 35%
• Organisational Capability 30%
• Key personnel 20%
• Local Content 15%
The Panel
Community Benefit
The Tenderer must provide details of the benefits to the Shire from their involvement in a contract.
Examples may include:• Local Employment;• Money they spend in local community• Use of local service providers;• Use of local food and beverage providers;• Use of local accommodation for work crews; • Sourcing of materials and consumables locally.• Costs of above!
Price Basis
• Pricing can be:
• fixed for term of contract
• Hourly rate
• schedule of rates
• Include everything required: delivery, unloading andall applicable levies, taxes etc.
• Complete the spreadsheet “price schedule”
Price Assessment
• Offered pricing must meet the requirements as specifiedin the Request.
• Assessment of price may be based on Total Cost ofOwnership, including:• Acquisition price• Delivery (transport, freight)• Installation / commissioning / testing• Periodic and adhoc maintenance• Training, manuals etc• Contract management costs (hidden)• Warehousing / inventory• Disposal costs
Regional Price Preference
Only for evaluation purposes
Supplier % Reduction Region
Local Business10% (Goods and
Services)5% (Construction)
Within Shire
Preferred Supplier Arrangements
Benefits
• Less Tenders to respond to
• Ease of Access - Tender Exemption status
• High visibility to all local governments
• Quality Stamp of Approval
• Market Analysis reports
• Simplified procurement
Infrastructure and Civil
ICT, Energy and Services
Fleet, Waste and
Consumables
Benefits
Inclusive not exclusive• Encouragement to Local Councils to nominate
regional/local suppliers• Zone/Local filter• Supplier can cover one
zone or more– doesn’t have to be whole state
• 850+ suppliers across 37 panels
• eQuotes platform
The Issues and Tips
Key Issues
• Make unsubstantiated claims
• Reliance on reputation
Question: Provide a list of the personnel from your organisation that will be involved in this project, specifying their particular roles and relevant experience.
Nice try but I’m pretty sure Romans built Colosseums.
David’s reputation is built on honest hard work. The Greeks are remembered for their coliseums, David is remembered for 123 Venice Road, or the 4 storey unit development at The Horses Mews, 226 River Road, 29 Sailing Mast Quay, only to mention a few of the “Quality” projects completed by Dave.
Key Issues
• Provide an inappropriate level of detail
Comments from evaluation process relating to qualitative criteria:
72 words, including the questions, is insufficient information for the evaluation panel to consider the submission favourably. More detail is required to assess the response.
Far too littleinformation
Far too much information
Response to a Request for Quote:
152 pages – too much!
Key Issues
• Getting the information right
• Check your facts and details
• Don’t rely on templates
• Display lack of care and effort
• Entitlement by local suppliers
But I’m Local!
Excerpt from Shire of Wiluna minutes
Painting company Master Strokes initially requested a variation on their Tender price on the basis that they thought the Shire was located in Waroona.
Tips on Preparing Responses
• Focus on the Local Government’s needs
• Read and abide by the Conditions of Tendering
• Match your offer to the opportunity
– Address every component of the Selection Criteria
– Be succinct!
• Understand and focus on Value for Money– Decision won’t just be based on lowest price
• Don’t’ give us the line:
– “References and insurances available on request”
– We are requesting!
….And More Tips
• Be honest and realistic
• Assume the Shire knows nothing about you and your business – it’s all got to be on paper
• If in doubt – ask the Contact Person!
– Any uncertainties?
– Missing Information?
• If unsuccessful, request a debrief
– Valuable tool to improve next time
