SP103 PROCUREMENT POLICY AND PLAN 2019-20

OVERVIEWBrisbane City Council’s (Council) Procurement Policy and Plan 2019-20 (PPAP) sets out:

(a) the principles, including the sound contracting principles, that Council will apply in 2019-20 for purchasing goods and services

(b) the types of contracts that Council proposes to make in the financial year

(c) the principles and strategies for performing the contracts including proposed delegations for the contracts

(d) the contracts that Council considers will be significant (a significant contract) having regard to the market assessment

(e) the makings of a Significant Contracting Plan.

It is prepared in accordance with section 190 of the City of Brisbane Regulation 2012 (the Regulation), the contracting plan required by section 210, and the contract manual required by section 212.

APPLICABILITYThis PPAP applies to any procurement activity undertaken by Council.

APPROVING AUTHORITYCouncil on 27 August 2019

POLICY OWNERChief Procurement Officer, Strategic Procurement Office, Organisational Services

RELATED INFORMATIONBrisbane Vision 2031 (Brisbane Vision)Corporate Plan 2016-17 to 2020-21 – 2017 Update (Corporate Plan)Corporate Sustainability PolicySP200 Sourcing and Disposal Procedures SP400 Contract Management ProceduresAP200 Donations PolicyContract Management FrameworkSupplier Relationship Management FrameworkCrime and Corruption Commission Corruption in Focus guideZero Harm Policy

REVIEW DATE27 August 2020

POLICY

1. STRATEGIC PROCUREMENT AND CONTRACTING APPROACH.................................................11.1 Principles..................................................................................................................................1

1.2 Strategic Procurement Office...................................................................................................11.3 Category management.............................................................................................................2

1.4 Category planning....................................................................................................................21.5 Sourcing classification..............................................................................................................2

1.6 Annual sourcing plans..............................................................................................................21.7 Strategic sourcing process.......................................................................................................2

1.8 VFM methodology and selection..............................................................................................31.9 Contract durations....................................................................................................................3

1.10 Corporate Procurement Arrangements....................................................................................31.11 Contract management..............................................................................................................3

1.12 Engaging with industry to identify and implement innovation...................................................31.13 Governance..............................................................................................................................6

2. SUSTAINABLE PROCUREMENT APPROACH.................................................................................72.1 Sustainable procurement definition..........................................................................................7

2.2 Applying sustainable procurement in Council..........................................................................72.3 Principles and objectives..........................................................................................................7

2.4 Environmental procurement approach.....................................................................................82.5 Construction workforce approach............................................................................................8

2.6 Zero Harm in procurement.......................................................................................................92.7 Support for local suppliers and social enterprises....................................................................9

3. CONTRACT MANUAL........................................................................................................................93.1 Tenders, proposals and quotes for goods, services and works...............................................9

3.2 Exemption from tenders, proposals and quotes.....................................................................103.3 Sole or select sourcing...........................................................................................................10

3.4 Shortlisting.............................................................................................................................103.5 Negotiation.............................................................................................................................10

3.6 Acceptance of a tender, proposal or quote............................................................................103.7 Disposal of goods and acquisition or disposal of land...........................................................10

3.8 Publishing details of contracts worth $200,000 or more........................................................11Schedule A General exemptions from Council’s standard quotes, tenders and proposals process 12

Schedule B Forward Contracting Schedule for Goods, Services and Construction 2019-20...........15Schedule C Forward Disposal..........................................................................................................27

1. STRATEGIC PROCUREMENT AND CONTRACTING APPROACH

1.1 Principles(a) Sound contracting principles

Council applies sound contracting principles to its contracting activities via this PPAP. The sound contracting principles as set out in section 103(3) of the City of Brisbane Act 2010 are:

(i) value for money (VFM)

(ii) open and effective competition

(iii) the development of competitive local business and industry

(iv) environmental protection

(v) ethical behaviour and fair dealing.

(b) Alignment with the Council’s Corporate Plan This PPAP supports the following values and Brisbane Vision themes within Council’s Corporate   Plan :

Values Brisbane Vision Themes Getting things done Our accessible, connected city

Value for money Our active, healthy city

Passion for Brisbane Our clean, green city

Respect for people Our friendly, safe city

Responsive customer service Our New World City

Working together Our smart, prosperous city

Courage to make a difference Our vibrant, creative city

Our well-designed, subtropical city

Specifically, the relevant medium-term objectives listed for Outcome 8.4 Value for Money, support the Corporate Plan by: reducing procurement costs while maintaining value driving value through the supplier base via the Strategic Partnering Initiative

ensuring that Council’s plans, practices, processes and the capabilities of its people are aligned to deliver the long-term community plan Brisbane Vision and Council’s Corporate Plan.

(c) Use of Council businesses and staffCouncil’s preference is to use its own capable, competent and committed employees in providing services. Council will continue to use its own employees where competitive levels of quality, service, efficiency, cost effectiveness and VFM are demonstrated.

(d) Centre-led procurementThe centre-led approach to procurement focuses on the strategic management of Council spend. Each category is managed by a Category Management team in Strategic Procurement Office (SPO), Organisational Services (OS) which partners with Council businesses.

(e) Training capability and competencies The development of skills and competencies in the areas of value chain design and optimisation, supply chain management, sourcing, negotiation, category management, contract management, relationship and vendor performance management, will continue to receive support from Council.

(f) Complaints processComplaints concerning procurement and disposal activities are managed through Council’s standard complaints process.

1.2 Strategic Procurement OfficeCouncil procurement is led by SPO, who source and manage arrangements for goods, services and works that meet the needs of users within Council and drive the best outcomes for Brisbane.

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1.3 Category Management Council undertakes many types of contracting activities which fall broadly into three groups:

(a) commodities and services

(b) construction and operations

(c) information and communications technology.

The strategy employed by each Category Management team includes:

(a) development of category plans for long-term strategy and implementation planning

(b) a sourcing classification to understand where to direct effort

(c) annual sourcing plans to manage business needs and resources

(d) a strategic sourcing process to engage Council stakeholders and the supply market

(e) establishment of Corporate Procurement Arrangements (CPA’s) to leverage value

(f) contract management

(g) engaging with industry to identify and implement innovation.

Category Management is supported by specialists in the areas of partnering and innovation and procurement governance processes and systems.

1.4 Category planningEach Category Management team develops strategic category plans. These plans guide resources and the application of different procurement tactics to generate sustained value in a spend area, including sourcing activities. ‘Sourcing’ means the process used to obtain goods, services or works from the supply market. Category plans segment categories into discrete areas and examine market trends, supply options and potential procurement strategies. In general, category plans are developed with a three to five-year strategic outlook and are refreshed annually. In some situations, such as highly dynamic markets, category plans may require a short-term outlook and can be monitored and refreshed on a more regular basis.

1.5 Sourcing classificationCategory management applies a sourcing classification to understand where to direct effort in relation to the sourcing process. This assessment classifies each sourcing activity on the basis of procurement risk and relative expenditure.

Val

ue =

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LeveragedSPO typically sources with support from divisions and business areas

StrategicSignificant Contracting Plan required. SPO typically sources

RoutineEither SPO or business areas source

FocusedSPO typically sources with support from divisions and business areas

Risk ==============================

1.6 Annual sourcing plansBased on the category plans, SPO develops an annual sourcing program to manage its sourcing activity for the financial year. Key sourcing activities for the financial year are included in the Forward Contracting Schedule (Schedule B) and Forward Disposal Schedule (Schedule C).

1.7 Strategic sourcing process For centre-led procurements, the Category Management teams use a strategic sourcing process which includes analysis of Council spend data, partnering with stakeholders to understand requirements and risks associated with the proposed procurement outcomes, conducting market research, developing a sourcing strategy and engaging the market through a structured method which is designed to enhance VFM outcomes.

During the strategic sourcing process, the high-level approach from the category plan is applied and refined to develop a detailed strategy for the sourcing of those particular goods, services or works.

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1.8 VFM methodology and selectionCouncil’s VFM methodology usually involves deriving a VFM index by dividing the value score achieved (against weighted non-price attributes) by a comparative price, which weighs price and non-price factors equally. Alternative VFM methodologies may be used in consultation with SPO.

Ultimately, selection is to be based on the most advantageous outcome for Brisbane.

1.9 Contract durationsThe duration of individual contracts is established through strategic category planning and the strategic sourcing process. Generally, SPO engages the marketplace at least once in each five-year period. The market may be engaged more or less frequently in some circumstances, for example where:

there is a change in Council’s needs, a change in the market or a change in best practice strategic category planning or market research indicates that more or less frequent sourcing

would deliver a more advantageous outcome for Council a more advantageous outcome can be obtained by aligning the duration of a contract with the

lifecycle of an associated asset (for example, aligning the duration of a contract for refuse collection with the expected lifespan of vehicles for refuse collection).

Where existing suppliers demonstrate a continuous high quality of service, arrangements may be re-negotiated and extended if VFM is demonstrated. The effect of this approach is to eliminate unnecessary sourcing activity and allow SPO resources to be directed at categories and contracts where VFM will be better achieved. Details of this exemption from the standard Contract Manual processes is contained in Schedule A (Exemption 6).

1.10 Corporate Procurement Arrangements CPAs are used by Council to:

aggregate and leverage purchasing requirements

reduce transaction costs for both suppliers and Council by agreement of terms such as contractual conditions and rates, which apply to purchases made under the CPA.

CPAs are contractual arrangements established by Council and include panel arrangements, preferred supplier arrangements and registers of pre-qualified suppliers.

CPAs are generally established by a tender process for a specific term and particular type of goods, services or works. When established, Council officers may purchase from the CPA without the need to approach the broader market.

The strategy for each CPA is developed through category planning and implemented through a planned sourcing activity. CPAs can provide some exclusivity to suppliers on the CPA, subject to limitations.

The method for operating each CPA is usually agreed by Council or its delegate when the CPA is established. SPO includes this information in user packs which set the internal procedure for use of each CPA. SPO may amend the operating method or user pack from time to time to reflect changes in supplier performance, strategy or business priorities.

1.11 Contract management Contracts are established in Council to meet the needs of Brisbane. Good contract management ensures that the contractual obligations of both suppliers and Council are met and VFM is achieved.

Council’s SP400 Contract Management Framework provides a clear and standardised approach to managing and administering contracts for the goods and services purchased from its suppliers.

The main elements of the contract management framework are:

defining the key roles involved in contract management: contract owner, contract manager and contract administrator

classifying contracts into one of four risk categories strategic, focused, leveraged or routine managing and using contractual key performance indicators.

The framework establishes the minimum contract management requirements. Established divisional contract management processes that exceed these minimum requirements may be used by contract or project managers in Council leading more complex procurement activities (e.g. major projects, construction, infrastructure), as required.

1.12 Engaging with industry to identify and implement innovationInnovation is fundamental to achieving the Brisbane Vision, improving quality of life for residents while ensuring our city has the services and infrastructure to meet the needs of future generations. Innovation can also deliver better outcomes for Brisbane. Innovative solutions can be developed in the market long

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before they are identified by Council. SPO nurtures and encourages industry to identify and implement innovation. This is achieved through several initiatives including supplier relationship management, a strategic partnering approach and a Better Brisbane Proposals approach.

(a) Supplier relationship managementCouncil recognises the critical role its suppliers play in contributing to Brisbane becoming Australia’s New World City. Globally, organisations are starting to realise that they have become more reliant on suppliers in terms of innovation, security of supply, corporate social responsibility and cost savings. To better capture the value from its supplier relationships, Council has adopted Supplier Relationship Management (SRM) as a management mechanism through which additional value can be derived from improved collaboration with suppliers. This is achieved through an SRM framework and a series of accompanying tools to help guide managing relationships with select suppliers such that more value is realised than via normal contract management.

The main elements of the SRM framework are:

identifying the key roles involved in SRM: Category Specialist, Supplier Manager, Procurement Partner, Contract Owner and Contract Manager

segmenting suppliers into one of four tiers based on criticality and spend identifying potential strategic partners to Council pursuing opportunities beyond the contract, including sustainable procurement and

innovation.

(b) Strategic partner approachThe strategic partner approach focuses on a small group of suppliers that align closely with Council and have the potential to realise innovation. A supplier may only be designated as a strategic partner via a Significant Contracting Plan (SCP) (see 1.13b).

Council may enter into supply arrangements (or extend arrangements in terms of scope or duration) with strategic partners on a direct engagement basis. Arrangements may be extended for defined periods until those arrangements, in Council’s view, no longer deliver VFM for Council. Submissions to enter into or extend an arrangement with a strategic partner must be in the public interest, provide value for Council and be approved in accordance with existing public interest sole sourcing delegations. All decisions to enter into or extend an arrangement with a strategic partner are to be reported monthly to Council.

Ongoing assessment and monitoring of the performance of each strategic partner is to be undertaken to ensure that Council continues to obtain VFM.

(c) Better Brisbane Proposals approach (i) Overview

Better Brisbane Proposals enable businesses to submit proposals that solve Brisbane problems or contribute to the Brisbane Vision and demonstrate value to Brisbane.

(ii) Requirements To be considered as a Better Brisbane Proposal, proposals must:

(a) solve a Brisbane problem, address an opportunity for Brisbane, or enhance services Council provides

(b) contribute to Brisbane Vision

(c) represent VFM for Council.

If Council wishes to purchase that type of good, service or innovation, Council may proceed with a Better Brisbane Proposal in a number of different ways that can include:

(a) competitive or collaborative processes with multiple suppliers

(b) direct engagement

(c) an alternative or hybrid model which may include a trial, proof of concept or pilot to precede a competitive process with multiple suppliers.

Proposals will not be considered under this policy where Council has issued a request for tender, proposal or expression of interest and Council considers that

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the request issued was the appropriate channel for the receipt of offers.

(iii) Direct engagementCouncil may directly engage with the proponent of the proposal for the good, service or innovation if, in Council’s view, it is in the public interest. This generally involves consideration of whether:

(a) the proposal contains intellectual property rights or elements, such that tendering for the requirement would be unfair or deprive the proponent of its innovation

(b) the outcome is considered to be fair to the supply market

(c) the proposal is considered to be advantageous for Brisbane

(d) VFM for Brisbane can be demonstrated or substantiated.

Recommendations to enter into contracts will be approved in line with existing sole sourcing delegations.

(iv) Process Better Brisbane Proposals will be assessed using the following process:

(a) Stage One: An optional, free pre-proposal meeting between the proponent and Council procurement officers to discuss the key attributes, benefits, requirements and assumptions underlying the potential proposal. This is not a compulsory stage but may assist the proponent to position and develop the proposal, expediting the subsequent assessment stages. Council may provide feedback at this stage as to whether it considers that the proposal, as presented, is consistent with the policy. It is the proponent’s decision as to whether it proceeds with making a formal proposal.

(b) Stage Two: Preliminary assessment of the proposal will be undertaken in accordance with the policy to determine if the proposal has sufficient merit to warrant progression to Stage Three and further consideration. The proponent may be offered the opportunity to present its proposal to Council officers. A recommendation will be made to Council’s Oversight of Consultancies Special Committee, which will decide whether the proposal is to progress to Stage Three.

(c) Stage Three: The proponent will be required to provide a detailed proposal and work cooperatively with Council officers in the development and assessment of a detailed proposal. Council will undertake a detailed assessment of the detailed proposal to ascertain if sufficient value can be achieved for customers (ratepayers, residents, businesses and visitors) through a direct engagement. This stage will consider elements such as the technical, financial, risk and logistical aspects of the proposal.

(d) Stage Four: Negotiation of a final binding offer involves the finalisation of all outstanding issues with a view of entering into a binding agreement, should Council accept the final offer.

A proposal’s progression to any stage listed above will occur at Council’s sole discretion.

The process is not intended to form a process contract.

Council or the proponent may withdraw from the process/negotiations at any time. Council will not be bound to proceed with any proposal unless and until a contract is signed by the proponent and Council

During stages three and four, Council may negotiate with one proponent or multiple proponents for similar or competing outcomes/goods/services/works. Where Council negotiates with multiple proponents for similar or competing outcomes/goods/services/works, Council will advise the impacted proponents.

(v) Commitments to suppliersCouncil will:

(a) treat proponents fairly

(b) respect the confidentiality of proponents’ information and intellectual 5

property (this may involve alternative approaches to confidentiality and intellectual property where agreed by the parties)

(c) provide a written outcome within a reasonable timeframe

(d) bear its own costs and expects all proponents to bear their own costs, unless otherwise agreed by the parties.

1.13 Governance(d) Boards

SPO administers several boards which play a key role in Council’s governance arrangements for procurement. These boards include Stores Board, chaired by Council’s Chief Executive Officer and several procurement boards. Each board is constituted by officers as considered appropriate by the Chair of that board. The purpose of these boards is to provide advice to delegates on the exercising of procurement delegations and to review submissions which are proceeding to higher delegates or Council.

For high-value sourcing activities, these boards provide a forum for delegates to consider and approve the strategy for a contracting activity (pre-market approval) and also approve entering into contracts for a procurement or disposal (post-market approval). Boards are attended by appropriately qualified officers to ensure that sourcing processes and decisions are robust and meet probity requirements. Delegates may convene additional boards to ensure appropriate governance and business needs are being met.

The procurement boards include:

Goods and Services Information Communication and Technology Brisbane Infrastructure Field Services.

(e) Significant Contracting Plans and delegations(i) SCPs will be prepared for those sourcing activities to be commenced in 2019-20 where:

(a) the estimated contract expenditure is $10 million or above

(b) SPO has assessed the contract as strategic using its sourcing classification

(c) a supplier is to be designated as a strategic partner

(ii) SCPs will be prepared for disposal activities where:

(a) the disposal is not in accordance with the approach identified in the Forward Disposal Schedule at Schedule C

(b) the disposal has been identified by SPO as high risk or high value.

(iii) The Establishment and Coordination Committee (E&C) is delegated as the authority to approve SCPs.

(iv) Delegations for contracting activities need to be in accordance with Council’s centre-led, strategic approach to procurement. Delegations which align with this approach have been approved by Council and the Chief Executive Officer.

(f) ApprovalsIn general, Council has two approval points for procurements, pre-market approval and post-market approval. Formal submissions are used to record pre-market and post-market approval decisions (including the reason for those decisions) for contracting activities that Council is required by legislation to report. Pre-market approval refers to the approval of procurement strategy and approval to request quotes, tenders or proposals. For significant procurements, pre-market approval is via SCPs. Post-market approval refers to approval of selection of the supplier, approval to proceed with the procurement (enter into the contract) and the spend allowable under the contract. For CPA’s, the allowable spend is an estimate only as the arrangement is for a defined period and spend will vary according to actual requirements.

Whilst post-market submissions may seek approval for a contingency amount in relation to risks, unforeseen site conditions (usually underground) and including any introduced legislative levies can lead to additional cost. Where the allocated contingency is insufficient, timely approval of the additional cost is vital to ensure that projects are completed on schedule and no further cost is incurred where contractors are on site and awaiting Council approvals.

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To enable this spend under a construction contract beyond the approved contract sum can be used where:

(i) written concurrence of the Chief Procurement Officer, SPO, OS, and Executive Manager, Field Services or City Projects Office, Brisbane Infrastructure (or their nominated representative), has been obtained

(ii) there is sufficient budget funding allocated to meet the additional cost; and either

(iii) the additional spend is for work defined by the contract as a latent condition; or

(iv) the additional spend is in relation to any change of law including any legislated waste levy.

2. SUSTAINABLE PROCUREMENT APPROACH

2.1 Sustainable procurement definitionThe following working definition of sustainable procurement has been developed by the Queensland Government: Sustainable procurement is a process whereby organisations meet their needs for goods, services and capital projects, in a way that achieves value for money on a whole-of-life basis in terms of generating benefits not only to the organisation, but also to society, the economy and the natural environment.

2.2 Applying sustainable procurement in CouncilCouncil applies sustainable procurement by:

(a) examining organisational, project and/or community needs for anticipated contracting activities

(b) refining sustainability strategies for contracting activities

(c) refining sustainability specifications for contracting activities

(d) planning and undertaking sustainability evaluations as part of contracting activities.

2.3 Principles and objectives In its Corporate Sustainability Policy, Council commits to applying principles of sustainability to all of its decision-making and activities. In addition, Council applies sound contracting principles to its procurement and disposal activity. The following economic, environmental and social objectives have been determined in line with these principles.

Area Principles ObjectivesEconomic recognise dimensions beyond

our border while concentrating on issues we can influence

integrate long and short-term economic, environmental and community considerations.

VFM open and effective

competition the development of

competitive local business and industry

achieve VFM on a whole-of-life (including disposal) basis, rather than just initial cost

harvest $30 million in savings from procurement activities

manage demand and supply to ensure that competitive markets and the availability of resources are sustained in the long term

ensure probity and accountability in the procurement process

80% of Council’s procurement spend will be sourced locally

a weighting of up to 30% will be applied to reflect local benefits

quotes for contracts with a value below $250,000 will in the first instance be sought from local vendors

Environmental act cautiously when there is a risk of serious or irreversible impacts on the environment or the community

enhance and maintain biodiversity and natural environmental systems.

environmental protection

minimise environmental harm, including end-of-life impacts

maximise resource efficiency (e.g. reduce energy and water consumption and minimise waste)

minimise carbon emissions and contribute towards Council’s carbon neutral status

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Area Principles ObjectivesSocial provide for broad public

involvement on issues that affect the community

provide for equity between generations.

ethical behaviour and fair dealing

the development of competitive local business and industry

in the procurement process, ensure that Council’s Zero Harm requirements are met and Workplace Health and Safety (WH&S) legislative compliance is achieved

vendors remunerate their employees fairly

vendors are meeting industrial obligations

maintain a social procurement program to increase social procurement spend – target $6 million

ensure sourced products are accessible by all segments of the community

require inclusion of apprentices, trainees or Aboriginal and Torres Strait Islander people on large construction contracts

prevent, detect and remove modern slavery from Council’s supply chain

2.4 Environmental procurement approachCouncil is committed to acquiring products for general use which have a low environmental impact which would not:

(a) endanger the health of the consumer or others

(b) cause significant damage to the environment during manufacture, transport, use or disposal

(c) consume a disproportionate amount of energy during manufacture, transport, use or disposal

(d) cause unnecessary waste, either because of over packaging or because of an unduly short useful life

(e) use materials derived from threatened species or from threatened environments

(f) involve the unnecessary use of, or cruelty to, animals, whether this be for toxicity testing or for other purposes

(g) adversely affect other countries, particularly developing economies

Council will, where possible, use recycled paper for its administrative and janitorial needs

Council will, where possible, avoid single-use plastic straws, single use plastic bags, helium balloons and single-use plastic water bottles in its operations and events, except where this might cause a health or safety risk.

2.5 Construction workforce approach Council is committed to supporting the development of skills in Brisbane’s construction industry including future workforce capability.

A minimum of 10% of the total labour hours of major construction projects with a contractual value of $2 million and over are to be performed by apprentices, trainees or marginalised segments of the community (including Aboriginal and Torres Strait Islander people). To implement this policy, SPO will maintain a formula to be included in applicable construction contracts.

Exemption from the requirements of this policy may be provided by the Chief Procurement Officer on a case by case basis. For example, contracts that include a high mechanical and electrical component may be exempt. The submission to the Chief Procurement Officer should include the reasons for exemption or modification and be submitted prior to engagement of the market.

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2.6 Zero Harm in procurementIn accordance with Council’s commitment to Zero Harm, Council will conduct its procurement activities and seek that its suppliers conduct their activity (with appropriate incident reporting) so that no Brisbane residents, visitors, contractors or employees are harmed in the provision of goods, services or works to Council.

2.7 Support for local suppliers and social enterprisesCouncil will preference quotes and tenders from local business.

Council will seek appropriate opportunities to engage social enterprises or leverage outcomes through commercial relationships.

3. CONTRACT MANUAL

3.1 Tenders, proposals and quotes for goods, services and works(a) Availability of budget

Funds must be available in the approved Council budget before tenders, proposals or quotes are sought, except:

(i) in the case of genuine emergency or hardship as determined by the Chief Procurement Officer; or

(ii) where the strategy has been approved by Council resolution or via a SCP; or

(iii) the lack of funding is disclosed in the publicly available documents and the strategy is approved by Council.

(b) Requirement for tenders, proposals and quotes Except as provided in sections 3.2 and 3.3, Council will invite tenders, proposals, quotes and expressions of interest from the supply market in accordance with the following thresholds.

(i) For purchases reasonably estimated to be worth less than $10,000, price information is to be obtained from one or more suppliers. When seeking and or evaluating quotes, preference will be applied to local suppliers. Where only one quote is obtained from those invited, VFM is to be demonstrated.

(ii) For purchases reasonably estimated to be worth more than $10,000 and less than $250,000, at least three written quotes are to be invited from suppliers who are considered able to meet the requirements. When seeking and or evaluating quotes, preference will be applied to local suppliers. Where only one quote is received from those invited, VFM is to be demonstrated.

(iii) For purchases reasonably estimated to be worth $250,000 or more, Council will publicly invite tenders, proposals or expressions of interest. A local weighting of up to 30% may be applied and reflected in the VFM assessment.

‘Worth’ means the total amount (exclusive of GST) to be paid to the supplier for the goods, services or works for the full term including known options and/or optional periods. For contracts under which Council receives revenue, the thresholds above apply and ‘worth’ refers to the total amount to be paid to Council.

‘Local’ means (in descending order of preference):

(i) the Brisbane City Council Local Government Area

(ii) South East Queensland

(iii) Queensland.Where quotes from non-local suppliers are sought or evaluated, the officer with the delegation relevant to the procurement, will need to be satisfied that such an approach reflects the most advantageous outcome for Brisbane.

3.2 Exemption from tenders, proposals and quotesThe circumstances identified in Schedule A are exempt from the general tender, proposal, quote and expression of interest requirements of section 3.1(b). Decisions are to be recorded in formal submissions which include how VFM is demonstrated. Use of any exemption must be endorsed by Council’s Chief Procurement Officer (or their nominated representative).

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Where the procurement is designated as ‘significant’, an SCP is to be approved which may include use of an exemption, sole source or select source.

3.3 Sole or select sourcing Supply of goods, services or works can be sought from one supplier (sole sourcing) or a restricted group of suppliers (select sourcing) without tenders, proposals or quotes where either:

(a) it is in the public interest

(b) there is a lack of available tenderers

(c) marketplace is restricted by statement of licence or third-party ownership of an asset (excluding public utility plant).

If there is a current procurement or disposal process in place, that process must be terminated prior to sole sourcing being implemented.

Sole sourcing is subject to existing delegations.

Select sourcing is subject to endorsement by Council’s Chief Procurement Officer or Chief Executive Officer.

3.4 Shortlisting Council permits shortlisting rounds during tender, proposal and quotation processes.

Shortlisting can be based on any criterion or criteria but only in pursuit of the most advantageous outcome for Brisbane.

Where expressions of interest have been publicly requested or a multi-staged process has been undertaken, tenders or proposals may be requested from one respondent or a shortlist of respondents if this approach and the criteria for shortlisting have been included in the publicly advertised document.

3.5 NegotiationNegotiation can be undertaken with the most advantageous tenderer, a shortlist of tenderers or all tenderers. These negotiations may result in changes to Council requirements (stated in tender, proposal or quote documents) or the offers received. Probity requirements apply to all negotiations.

3.6 Acceptance of a tender, proposal or quoteCouncil officers are not obliged to accept the lowest priced (or any) tender, proposal, quote or expression of interest. Council officers will only select tenders, proposals, quotes or expressions of interest that are the most advantageous for Brisbane.

3.7 Disposal of goods and acquisition or disposal of land(a) Council must dispose of goods (or other non-current assets excluding land) through the invitation

of tenders, or sale by public auction, above the following values (exclusive of GST):

(i) plant or equipment – $5,000

(ii) any other type of non-current asset – $10,000.

(b) Individual goods (or other non-current assets excluding land) up to the value set out in section 3.7(a) may be disposed of by approaches other than tender or public auction. Probity must be maintained and VFM achieved in these disposals.

(c) The provisions in section 3.7(a) do not apply to the disposal of goods (or other non-current assets excluding land) if:

(i) an alternative disposal approach is provided at Schedule C

(ii) an SCP has been approved

(iii) Council is of the opinion that it is in the public interest that they should not apply. Any decision by Council to this effect:

A. must specify reasons for the opinion expressed in it

B. may relate to a particular disposal or class of disposal

(iv) the disposal was a donation under Council’s AP200 Donations Policy.

Major disposals that are expected to commence in 2019-20 are summarised in the Forward Disposal Schedule at Schedule C.

Acquisition of land by Council is not dealt by this PPAP. Disposal of land and letting of leases is subject to the Default Contracting Procedures in Chapter 6 of the Regulation.

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3.8 Publishing details of contracts worth $200,000 or moreA report of contracts worth $200,000 (exclusive of GST) or more accepted by delegates shall be presented to Council as soon as practicable after entering into the contracts. The report will be published in the minutes of the Council meeting.

The establishment of CPAs is reported but generally not the orders placed under them. Key orders under CPAs for construction works will continue to be reported in line with current practice.

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Schedule AGeneral exemptions from Council’s standard

quotes, tenders and proposals process

GENERAL EXEMPTIONSDetailed below are the list of exemptions from tenders, proposals and quotes. Use of any exemption must be endorsed by Council’s Chief Procurement Officer, SPO, OS or their nominated representative. The authority to enter into contracts for the following exemptions is delegated to Council’s Chief Executive Officer. Where the CEO has subdelegated any authority to enter into contracts for the following exemptions, these are reflected in the published list of procurement authorities and delegations.

Exemption name Explanation, limitations, responsibilities and approvals

1. CPAs The general requirement to seek quotes and tenders from the broader market does not apply where either:

a. Council has established a CPA and Council is using that CPAb. CPA suppliers are unable to supply and where value and appropriateness of

process has been demonstrated to the satisfaction of the relevant Category Manager, SPO, OS.

2. A contract made because of genuine emergency or hardship

In genuine emergencies (such as recovery following the 2011 Brisbane flood), the necessity to act fast outweighs the additional benefit that may be driven through competitive processes. A genuine emergency is determined by the Chief Procurement Officer, SPO, OS.

3. Marketplace is restricted by third party ownership of public utility plant ownership

This exemption applies if the goods, services or works can only be supplied by a single supplier or a restricted group due to third-party ownership of a public utility plant asset, for example, Energex, Telstra or APA Group. Where possible, competitive quotes are to be obtained in line with the requirements of section 3.1.

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Exemption name Explanation, limitations, responsibilities and approvals

4. A contract made with, or a purchase from a contract made by, another government entity, government-owned entity or Local Buy

Where value for money (VFM) outcomes can be obtained, this general exemption allows engagements with another government entity or government owned entity. For example, Federal, Queensland or Local Government or an entity owned by the Australian, Queensland or Local Government.

Contracts and arrangements established by another government entity, local authority or Local Buy have been sourced by reputable entities that apply appropriate principles and probity and can be expected to deliver reasonable VFM for Council.

5. Procurement from social enterprises (including microenterprises, community enterprises and Aboriginal and Torres Strait Islander organisations)

Social procurement involves generating positive social benefits or outcomes. This exemption will apply to contracts meeting the public interest test which is to be applied using the following criteria – submissions are to include:

a. the basis upon which the organisation is considered to be a social enterpriseb. how the contract will develop capacity or capability of the social enterprise or

otherwise contribute to Council’s procurement objectives or Brisbane Visionc. consideration given to commercial enterprises operating in the sector and

whether they would be unduly prejudiced by the award of such a contractd. consideration of other known social enterprises and whether it would be

appropriate for those organisations to compete for the contracte. how quality of goods or services is to be ensuredf. how reasonable VFM will be achieved by Councilg. past performance of the supplier where a contract renewal or award of a similar

contract is being considered.

6. Low value procurements

Allows SPO to focus its resources on high yield procurements. The value obtained from a significant number of frequently sourced, low value procurements is limited. This exemption allows extension of contracts without tender processes.

Conditions:

negotiations are to be undertaken as part of the contract extension process

category/market analysis and benchmarking must be used to establish that value for money is still being obtained

supplier performance must be to Council’s customer satisfaction

value improvement initiatives are in place

The cumulative extension periods do not exceed 10 years.

7. A contract for purchase at public auction

Purchases via auction are inconsistent with quotation and tender approaches.

8. Information technology: solutions tendered – re-sellers and software developers

Allows Council to contract with a copyright holder where the solution is tendered by an authorised re-seller.

9. Extension of contracts while Council is at market

Allows Council to extend an existing contract by up to six months where the tender to replace the contract has commenced. Switching supply for such a short period is usually not cost effective or practical. Extension may be required where the tender process or negotiations have taken longer than expected.

10. Procurement needed for external bids

Allows Council to arrange subcontracts in order to bid for work being procured by parties external to Council and the work is not for Council or on any asset which Council owns.

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Exemption name Explanation, limitations, responsibilities and approvals

11. Extension of Information and Communications Technology (ICT), support and maintenance arrangements

Council’s CPA and contracts for the provision of ICT software and hardware (ICT products) can often continue to meet business requirements beyond the originally envisioned term. This exemption provides a mechanism to approve maintenance and support (which may include external hosting or subscription to existing solutions) for existing Council ICT products beyond the original term.

CEO’s approval is limited to $500,000 per year.

12. Professional services unsuitable for tendering

Professional services unsuitable for tendering are as follows.

Barristers and expert witnesses – These services are needed for legal proceedings. Generally, barristers do not respond to tenders. Council’s Chief Legal Counsel, City Legal, City Administration and Governance (CAG) reviews the Law Society website and makes a decision on which barrister to approach for the matter depending on their area of expertise. Expert witnesses are recommended by the barrister.

Integrity Workplace Solutions Agencies (IWSA) – External integrity workplace solution agencies are needed to deliver sensitive, high-level and complex investigations in respect to the conduct of Council employees in the areas of alleged corrupt conduct, reportable misconduct, reportable loss and ICT forensics. The engagement of external agencies, on occasion, is also required to ensure investigations can be undertaken that protect the integrity of Council and can be delivered in a timely and professional manner to the standards outlined in the Crime and Corruption Commission’s Corruption in Focus guide . These engagements are also unsuitable for tendering.

CEO’s approval for IWSA is limited to $250,000.

13. Councillor offices’ expenditure

For Councillor Offices’ expenditure, delegates: may preference local suppliers or may use Council’s CPAs if they so desire; and

must be in accordance with the Authorised Ward Budget Guidelines.

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Schedule BForward Contracting Schedule for Goods, Services and Construction

2019-20

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MAJOR CONSTRUCTIONDetailed below are major Council programs (programs are defined as programs of like work) and projects against which major procurement activity is scheduled to occur during 2019-20 and later. The ‘Estimated Value of contracts…’ column shows an estimate of the sum of the procurement for which Council is scheduled to engage the market in 2019-20. Where the ‘Estimated Value of contracts…’ for a project or program detailed below reaches or exceeds $10 million or is designated as a significant contract, that contract will be a significant contract for the purposes of section 210 of the City of Brisbane Regulation 2012.

Major Projects(greater than $2 million)

2019-20

Estimated value of contracts greater than

$2 million going to market in 2019-20

Expected quarter

at marketProposed procurement

strategy Contact details (subject to change)

Brisbane Metro – Infrastructure, Systems and Early Works

Early Works – Lift Shaft Construction, Supply and Install

Early Works – Sewer Enabling Works at Metro Depot, Rochedale

Early Works – Sewer Relocation and Ancillary Works at Grey Street, South Brisbane

Platform Management Information System (significant contract)

Suburban Infrastructure (significant contract)

$105,000,000

Q2

Q2

Q1

Q2

Q4

Quotes under existing CPA or public tender

Brisbane Metro Procurement, City Projects Office, Brisbane Infrastructure, 1800 692 333 or metroprocurement@brisbane.qld.gov.au

Smoother Suburban Streets – Road network resurfacing

$10,000,000(Comprised of a number

of packages of works)

Q1-Q4 Quotes under existing Corporate Procurement Arrangement

Project Delivery Manager, Road Infrastructure, Civil and Transport, Project Management, City Projects Office, Brisbane Infrastructure, 3178 4092

Indooroopilly Riverwalk $40,000,000 Q1 Open market tender Project Delivery Manager, Road Infrastructure, Civil and Transport, Project Management, City Projects Office, Brisbane Infrastructure, 3178 4092

Gresham Street Bridge, East Brisbane $20,000,000 Q3-Q4 Quotes under existing CPA Project Delivery Manager, Road Infrastructure, Civil and Transport, Project Management, City Projects Office, Brisbane Infrastructure, 3178 4092

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Major Projects(greater than $2 million)

2019-20

Estimated value of contracts greater than

$2 million going to market in 2019-20

Expected quarter

at marketProposed procurement

strategy Contact details (subject to change)

Victoria Street and Montague Road intersection upgrade

$5,000,000 Q3-Q4 Quotes under existing CPA Project Delivery Manager, Road Infrastructure, Civil and Transport, Project Management, City Projects Office, Brisbane Infrastructure, 3178 4092

Accessible bus stop upgrade program $10,000,000 Q1-Q4 Quotes under existing CPA Project Delivery Manager, Road Infrastructure, Civil and Transport, Project Management, City Projects Office, Brisbane Infrastructure, 3178 7501

Commercial Road and Doggett Street Intersection Upgrade

$3,000,000 Q3-Q4 Quotes under existing CPA Project Delivery Manager, Road Infrastructure, Civil and Transport, Project Management, City Projects Office, Brisbane Infrastructure, 3178 7501

Howard Smith Wharves Ferry Terminal $12,300,000 Q3-Q4 Quotes under existing CPA Project Delivery Manager, Project Management, Civic and Building, City Projects Office, Brisbane Infrastructure, 3027 4555

Bretts Wharf Downstream (Boardwalk) $1,900,000 Q1-Q2 Quotes under existing CPA Project Delivery Manager, Project Management, Civic and Building, City Projects Office, Brisbane Infrastructure, 3043 4333

Wally Tate Park, Runcorn $10,600,000 Q3-Q4 Open market tender Project Delivery Manager, Project Management, Civic and Building, City Projects Office, Brisbane Infrastructure, 3043 4876

Bill Brown Sports Reserve, Fitzgibbon $3,500,000 Q1-Q2 Open market tender Project Delivery Manager, Project Management, Civic and Building, City Projects Office, Brisbane Infrastructure, 3043 4876

Hanlon Park, Greenslopes $12,800,000 Q1-Q2 Open market tender Project Delivery Manager, Project Management, Civic and Building, City Projects Office, Brisbane Infrastructure, 3043 4876

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Major Projects(greater than $2 million)

2019-20

Estimated value of contracts greater than

$2 million going to market in 2019-20

Expected quarter

at marketProposed procurement

strategy Contact details (subject to change)

School of Arts, Ann Street, Brisbane $5,000,000 Q3-Q4 Open market tender Project Delivery Manager, Project Management, Civic and Building, City Projects Office, Brisbane Infrastructure,3043 6898

TOTAL $239,100,000

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GOODS AND SERVICES (SIGNIFICANT)

Detailed below are anticipated significant contracts in relation to goods and services and against which major procurement activity is scheduled to occur during the 2019-20 financial year and later. These contracts are considered to be significant contracts for the purposes of section 210 of the City of Brisbane Regulation 2012. In some cases, Council may elect to exercise an existing option to extend a contract rather than engaging the market with a view to entering into a new contract.

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Grouping Productcategory

Description Indicative annual spend

$

Expected quarter at

market

Proposed procurement

strategy

Contact details(subject to

change)Construction and operations

Construction machinery and equipment hire

Skid steer loaders for asphalt profiling $2,300,000 Q1 Review of current contract arrangements or public tender

Category Manager – Construction and Operations, Strategic Procurement Office, Organisational Services, 3403 9128

Landscape construction

Landscape design construction and associated services

$12,000,000 Q1 As above As above

Planting services

Ecosystem restoration services $4,800,000 Q1 As above As above

Heavy construction services

Road resurfacing and rehabilitation $47,500,000 Q1 As above As above

Heating and cooling and air conditioning HVAC construction

Heating ventilation and air conditioning (HVAC) reactive maintenance and servicing

$2,500,000 Q2 As above As above

Traffic signal hardware

Traffic signal components and hardware

$2,500,000 Q2 As above As above

Playgrounds Playground Equipment $4,600,000 Q4 As above As above

Roads and transport network

Bitumen prime and seal services $2,500,000 Q4 As above As above

Commodities and services

Water transport vessel maintenance and repairs

Ferry and ferry infrastructure operations and maintenance

$21,000,000 Q1 As above Category Manager – Commodities and Services, Strategic Procurement Office, Organisational Services, 3403 1951

Civil engineering services

Infrastructure design consulting service

$35,000,000 Q2 As above As above

Electricity Small market electricity $2,000,000 Q2 As above As above

Electric utilities Supply of electricity contestable $37,000,000 Q2 As above As above

Locks and security hardware and accessories

Electronic security services categories 1 to 4

$2,600,000 Q2 As above As above

Construction machinery and equipment

Provision of mobile plant $4,900,000 Q2 As above As above

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GOODS AND SERVICES (NON-SIGNIFICANT)

Detailed below are further anticipated contracts in relation to goods and services against which procurement activity is scheduled to occur during 2019-20 and later. These contracts are not considered to be significant contracts for the purposes of section 210 of the City of Brisbane Regulation 2012. In some cases, Council may elect to exercise an existing option to extend a contract rather than engaging the market with a view to entering into a new contract.

Grouping Productcategory

Description Indicative annual spend $

Expected quarter at

market

Proposed procurement

strategy

Contact details (subject to

change)Construction and operations

Roadside litter collection

Roadside litter collection services $590,000 Q1 Review of current contract arrangements or public tender

Category Manager – Construction and Operations, Strategic Procurement Office, Organisational Services, 3403 9128

Construction and building materials

Cadastral, engineering and construction surveys

$650,000 Q1 As above As above

Arborist services Arborist advisory services $750,000 Q2 As above As aboveMowing services Drain mowing $300,000 Q2 As above As aboveWaste to fuel blending services

Landfill gas flaring and gas field management services at three closed landfill sites

$390,000 Q2 As above Manager, Contracts and Structure Services, Construction, Field Services, Brisbane Infrastructure, 3403 7831

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Grouping Productcategory

Description Indicative annual spend $

Expected quarter at

market

Proposed procurement

strategy

Contact details (subject to

change)Traffic signs Signage and traffic control

devices$1,300,000 Q4 As above Category

Manager – Construction and Operations, Strategic Procurement Office, Organisational Services, 3403 9128

Commodities and services

Real estate appraisal and valuation service

Property valuation services $550,000 Q1 As above Category Manager – Commodities and Services, Strategic Procurement Office, Organisational Services, 3403 1951

Road sweepers Supply, delivery and support of sweepers

$1,250,000 Q1 As above As above

Parks and gardens and orchards

Supply of mowers, tractors and off-road utes

$710,000 Q1 As above As above

Scheduled bus services

Dedicated electrical service $1,000,000 Q1 As above As above

Location and navigation systems and components

Public transport telematics $500,000plus $6,000,000

upfront implementation cost

Q1 As above As above

Printing Printing services – variable data $600,000 Q2 As above As above

Market research Market research services $625,000 Q2 As above As aboveGeneral legal advice

External legal consulting services $1,700,000 Q4 As above As above

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Grouping Productcategory

Description Indicative annual spend $

Expected quarter at

market

Proposed procurement

strategy

Contact details (subject to

change)Publicity and marketing support services

Creative and digital services $900,000 Q4 As above As above

Information and communications technology

Supply chain management

In-vehicle management system $530,000plus $1,500,000

upfront implementation cost

Q1 As above Category Manager – ICT and Technology, Strategic Procurement Office, Organisational Services, 3403 9109

Authorities licences, permits and awards

City plan interactive mapping replacement

TBA Q2 As above

Desktop computing Desktop as a service $400,000 Q4 As above As above

Bandwidth provision

Brisbane public Wi-Fi $400,000 Q2 As above As above

Infringement management application

Compliance and Regulatory Services, Lifestyle and Community Services, workload management system replacement

TBA Q4 As above As above

TOTAL $20,645,000

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MARKET ASSESSMENTSThe Australian Industry Group’s (AiGroup) Australian Performance of Construction Index advises that the input prices from rises in wages and other input costs are not fully being passed on given strong market competition and a low inflationary environment. The gap between these input prices and the selling prices demonstrates strong pressures on profit margins and is consistent with reports of a highly competitive quoting and tendering environment.

Despite strong market competition, there has been a large and expanding pipeline of publicly-funded investments in major infrastructure projects (particularly in New South Wales and Victoria), which has contributed to stretched capacity in the sector servicing the eastern seaboard. This is leading to decreased numbers of suppliers responding to Council tenders and upwards pressure on price.

According to AiGroup’s Performance of Services Index, high input costs are being caused by elevated energy prices and the cost of business compliance, as well as higher-skill occupations and business-oriented sub-sectors facing wage pressures. The selling prices have been stable on average as businesses have been unable to implement substantial price rises in order to cover their increasing input costs.

The commodities market for fuel, gas and electricity are predominately linked to the world stage and all presently face upwards pressure.

Manufacturing is reported by AiGroup’s Performance of Manufacturing Index as continuing to slowly grow. However, it is facing input price pressure from elevated energy costs. Employment rates have been stable due to employers responding to increasing wage rates.

Council continues to use services such as IBISWorld and Gartner Executive Research Services to supplement market intelligence and improve category planning. In addition, Council uses the sourcing classification method described in section 1.7 to direct more emphasis towards sourcing activities with increased risk or expenditure.

The procurement strategy for each sourcing event may be influenced by other factors such as capacity of suppliers to meet Council demand, supplier innovation or dominance of suppliers in certain markets. More detailed market assessments are conducted immediately prior to finalising the strategy for that sourcing event.

In 2019, Australia and New Zealand (ANZ) have reached a tipping point in digital business maturity, with more than 30% of ANZ organisations starting to scale and harvest value from their digital investments. Yet the majority are still evolving their digital business foundations. At the same time, a downturn in global economic conditions and political volatility are predicted in 2019, and flat IT budgets in ANZ. Organisations now risk making short-term investment decisions, which can slow or reverse digital business transformation progress. Price Waterhouse Coopers reports, ‘There’s a ‘positivity lapse’ in 2019 … 32% of Australian CEOs project a decline in global growth prospects, up from a mere 7% projecting a decline last year. This mirrors the sentiment of global CEOs, with 29% projecting a decline in global growth prospects, up from just 5% in 2018.’ The Committee for Economic Development of Australia (CEDA) published its ‘Economic and Political Overview 2019’ that sets the bearish business context. Downside risks have lifted in Australia this year due to ‘uneven global growth, central bank actions, geopolitics, high household debt and falling house prices’. However, CEDA also notes an upside, stating that Australia ‘looks well placed to ride out the global risks’. Across the Tasman Sea in New Zealand, the Organisation for Economic Co-operation and Development forecasts economic growth to edge down to 2.6% by 2020. This mainly reflects slowing private consumption as the boost from increased financial support for families passes, net immigration diminishes and housing wealth gains subside. Export growth is also set to decline once the current rebound from a dry spell is over. Inflation is projected to increase to slightly more than two per cent in 2019 and 2020, buoyed by higher import prices and domestic wage growth.

An economic slowdown or, in the worst-case scenario, a recession, will create an opportunity for digital giants and creative entrepreneurial start-ups to ramp up disruption and competition. ANZ organisations that lose their digital business nerve now may not be able to recover. Now is the time for Chief Information Officers (CIOs) to lead through adversity. CIOs must guide organisations to make the right prioritisation decisions, remove cultural barriers to continuous innovation and enterprise agility, optimise consumer experience, rethink business models, and shift to product-centric operating models.

This is the year to stay digitally fit and stay the distance.

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Key findings:

declining economic conditions and flat IT budgets will create pressure to slow digital investment, especially in organizations yet to attain digital maturity ANZ organisations are falling behind in digital business initiatives to rethink business models, uplift consumer experience and shift from project centricity to

product centricity ANZ CIOs have the opportunity to step up to becoming more influential business leaders, but most are not seizing that opportunity to drive change.

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Schedule CForward Disposal Schedule 2019-20

27

DISPOSALSThe following items represent disposals of $5,000 or greater that the Council may seek to commence or conclude during 2019-20. Actual disposal activity will be dictated by a number of factors that may include the level of operational activity and any purchasing arrangements implemented.

Disposal activity Proposed disposal approach Procurement outcome

KPI or measure to gauge success

Area of Council responsible for the

disposal activityExpected

timing

Computer equipment Re-purchase by vendor, ‘Green ICT’ disposal arrangement, public auction or tender

Economic orEnvironmental

Return greater than book value

Customer Service Delivery, Information Services, Organisational Services

Q1-Q4

Computer desktops and/or laptops

Community disposal Social Up to 300 functioning computers (desktops or laptops) allocated to community groups

Customer Service Delivery, Information Services / Community Development Team, Connected Communities, Lifestyle and Community Services

Q1-Q4

Computer server, storage and communications equipment

Re-purchase by vendor, ‘Green ICT’ disposal arrangement, public auction or tender

Economic orEnvironmental

Return greater than book value

Customer Service Delivery, Information Services, Organisational Services

Q1-Q4

Passenger vehicles Public tender, auction or sale by private treaty through the auction house at the agreed reserve price if the asset has been passed in at a previous auction

Economic Return greater than book value

Fleet Solutions, Field Services, Brisbane Infrastructure

Q1-Q4

Light commercial vehicles

Public tender, auction or sale by private treaty through the auction house at the agreed reserve price if the asset has been passed in at a previous auction

Economic Return greater than book value

Fleet Solutions, Field Services, Brisbane Infrastructure

Q1-Q4

Trucks Public tender, auction or sale by private treaty through the auction house at the agreed reserve price if the asset has been passed in at a previous auction

Economic Return greater than book value

Fleet Solutions, Field Services, Brisbane Infrastructure

Q1-Q4

Major and general plant Public tender, auction or sale by private treaty through the auction house at the agreed reserve price if the asset has

Economic Return greater than book value

Fleet Solutions, Field Services, Brisbane

Q1-Q4

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Disposal activity Proposed disposal approach Procurement outcome

KPI or measure to gauge success

Area of Council responsible for the

disposal activityExpected

timing

and equipment been passed in at a previous auction Infrastructure

Special vehicles Public tender, auction or sale by private treaty through the auction house at the agreed reserve price if the asset has been passed in at a previous auction

Economic Return greater than book value

Fleet Solutions, Field Services, Brisbane Infrastructure

Q1-Q4

Obsolete inventory Public tender or auction Economic Return greater than five per cent of current book value

Payment and Supply Services, Support Services Centre, Organisational Services

Q1-Q4

Buses Public tender, auction or sale by private treaty through the auction house at the agreed reserve price if the asset has been passed in at a previous auction. If no buyers are interested and the likelihood of a sale at a future auction is low, compared with the number of buses to be disposed, then the asset will be sold as scrap metal to the scrap metal merchant offering the best price.

Economic Return best scrap metal value

Transport for Brisbane Q1-Q4

Ferries Public tender, auction or sale by private treaty through a registered Ship Broker with an agreed reserve price.

Economic Return per cent of book value

Transport for Brisbane Q1-Q4

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