Local Business Forum6th June 2013

Doing Business with CouncilLisa Neal and Paul Trigg

Warringah Council

Opening Address –Warringah Mayor Michael Regan

Housekeeping

Phones on silent Presentation will be emailed to those who

have registered Handouts – useful sites Feedback forms Interactive session – please ask questions

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

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

Objectives & Outcome

Setting the scene: who are we and what and how do we buy De-mystify procurement

regulationsAssist you in working with

Council

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

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%)

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

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

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

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

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

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

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

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

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

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

WHS Requirements

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!

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

Questions

Closing by Clr Sue Heins

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/

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