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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Local Business Forum
Wednesday 20th August 2014
Presented by:
Lisa Neal & Paul Trigg
Procurement Services

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01
INTRODUCTION

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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

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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

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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

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02 HOW WE SPEND &
THE RULES WE’RE
BOUND BY

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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%)

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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

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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

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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

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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. EXCEPTIONS
- Contracts established by a person prescribed by the
regulations’. Prescribed organisations:
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™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

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03 WORKING WITH
COUNCIL ,
KNOWING YOUR
CUSTOMER

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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

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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

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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

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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

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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)

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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

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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

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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

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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

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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)

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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!

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- Questions
- Closing by Clr Sue Heins, Deputy Mayor

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. 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.

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04
USEFUL SITES

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- 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/

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- 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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