procurement – tendering and contracting procedure
TRANSCRIPT
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PROCUREMENT TENDERING AND CONTRACTING PROCEDUREGDS Category: Financial Management
Public Document? YESDate: June 2009
Page 1 of 8Version: 5
Review Date: June 2011
Electronic version is the controlled version. Printed copies are considered uncontrolled.Before using a printed copy, verify that i t is the current version.
1. ACTIVITY DEFINITION
This procedure is for the guidance of Council Officers when preparing and issuing tendersand contracts for the provision of Works, Services, Materials or Equipment.
Note; Nothing in this procedure is intended to override, vary or otherwise alter anyrequirements of Council policies, the Local Government Act or any other statutoryrequirements relating to the subject matter.
2. RISK ASSESSMENT
Occupational Health and Safety Requirements Refer to attached risk assessment
Environmental Considerations Refer to attached risk assessment
Financial Implications Refer to attached risk assessment
Legal Requirements Refer to attached risk assessment
Service Provisions Refer to attached risk assessment
Information Management Refer to attached risk assessment
Council will at all times ensure that all of the requirements of any applicable legislation orother requirements are satisfied by the works, services, materials or equipment deliveredunder this procedure.
3. WORK PERMIT / OTHER APPROVAL REQUIRED?
Nil.
4. DOCUMENTATION
4.1 Sample Tender Documents4.2 Flowchart for Tenders and Contracts (Appendix 1)4.3 Project Check List (Template F4-5-952)4.4 Information Sheet (Template F4-5-953)4.5 Tender Evaluation Scorecard (Template F4-5-954)4.6 Variation Request (Template F4-5-955)4.7 Councils Procurement and Disposal Policy
4.8 Councils Procurement Superintending Contracts Procedure4.9 Councils Procurement Tenders Issuing and Receiving Procedure
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PROCUREMENT TENDERING AND CONTRACTING PROCEDUREGDS Category: Financial Management
Public Document? YESDate: June 2009
Page 2 of 8Version: 5
Review Date: June 2011
Electronic version is the controlled version. Printed copies are considered uncontrolled.Before using a printed copy, verify that i t is the current version.
4.10 The Ombudsman (Honesty and Accountability in Government) Amendment Bill 2002.4.11 Councils OHSW Contractor Management Procedure4.12 Councils OHSW Contractor Management Kit4.13 Evaluation Criteria Guide (Appendix 2)4.14 Risk Assessment Template (Template F4-5-172)
5. TRAINING / COMPETENCIES REQUIRED
Competent knowledge of Procurement and Disposal Policy and this Procedure.
6. EQUIPMENT AND MATERIALS THAT MAY BE USED
Nil.
7. WORK METHOD REQUIREMENTS
7.1 Definit ion of Responsibilit ies
7.1.1 Originator
The officer who has the need for the works, services, materials or equipment(or a nominated delegate) initiates the process and is responsible to;
7.1.1.1 Conduct any preliminary investigations.
7.1.1.2 Complete assessment report detailing of long term maintenance andfinancial requirements and undertake risk assessments (TemplateF4-5-172)
.7.1.1.3 Appropriately advise the Procurement Department and as a
minimum:
Complete the Information Sheet (Template F4-5-953) Prepare scope of works Prepare the specifications and design details Confirm Tender Documents (Specification section) accurately
detail intended requirements prior to Tenders being advertised Provide appropriate review of tenders and liaise with tenders as
required. Complete the Tender Evaluation Scorecard (Template F4-5-
954)
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PROCUREMENT TENDERING AND CONTRACTING PROCEDUREGDS Category: Financial Management
Public Document? YESDate: June 2009
Page 3 of 8Version: 5
Review Date: June 2011
Electronic version is the controlled version. Printed copies are considered uncontrolled.Before using a printed copy, verify that i t is the current version.
f) Collate any technical data provided in the tenders into a formthat can be used for comparison of tenders and for inclusion inthe contract documents;
g) Make recommendation to Council over $200,000;h) Advise Procurement Department of Councils Resolution of
Contract Appointment;i) Sign Contracts Formal Instrument of Agreement and
Possession of Site (Contract Templates F5 and F1consecutively). Senior Manager signs these documents.
7.1.2 Contract Superintendent
The officer who is responsible for ensuring the works, services, materials orequipment (or a nominated delegate) complies with the requirements asdetailed in the Contract Specification and is responsible to;
7.1.2.1 Liaise with tenderers as required.
7.1.2.2 Complete the Tender Evaluation Scorecard (Template F4-5-954).
7.1.2.3 Manage the works, services, materials or equipment (henceforthreferred to as Works) associated with the contract and ensure
compliance with Scope and Specifications.
7.1.2.4 Ensure induction of contractors is completed and all OHSW ContractManagement documentation is completed and returned toProcurement Department for inclusion in overall contractdocumentation.
7.1.2.5 Complete Site Inspection Checklist (OHSW Contractor ManagementKit).
7.1.2.6 Check progressive payments for authorisation by the Group Manager
and / or Chief Executive Officer refer Authorisation Table below.
a) Amounts up to $20,000 refer to Authorised Officers Register.b) Amounts up to $120,000 CEO and Senior Managers.c) Greater than $120,000 tender process.d) Amounts from $120,000 to $200,000 CEO and Senior
Managers have delegated authority to award contracts providedfunding has been allocated in the budget.
e) Amounts valued above $200,000 referred back to Council forapproval.
f) Any variation to a lump sum contract where the followingconditions apply will be reported to Council: the total sum of the
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PROCUREMENT TENDERING AND CONTRACTING PROCEDUREGDS Category: Financial Management
Public Document? YESDate: June 2009
Page 4 of 8Version: 5
Review Date: June 2011
Electronic version is the controlled version. Printed copies are considered uncontrolled.Before using a printed copy, verify that i t is the current version.
contract and all variations is in excess of $250,000 or totalvariations on any contract over $100,000 in excess of 10% ofthe contract sum.
g) All extra to budget items are to be approved by Council.
7.1.2.7 Advise all variations to Procurement Department with a requisitionattached.
7.1.2.8 Finalise contract by:
a) Undertaking final inspection detailing any Omissions and Defect(F2 of LGAMLS Contractor Documentation / Forms Section).
b) Issuing Certificate of Practical Completion (F3 of LGAMLSContractor Documentation / Forms Section) for part workscompleted.
c) Follow up on any uncompleted/unacceptable/undelivered itemsor works.
d) Issuing Final Certificate (F4 of LGAMLS ContractorDocumentation / Forms Section) when all works have beencompleted in compliance with specification and any formallyagreed to variations.
e) Authorising final payment
7.1.2.9 Inform Procurement Department of Contract Finalisation andactivation of Defect Liability requirements.
7.1.2.10 Return working file to Procurement Department for inclusion incontract file.
The Originator and Superintendent may be located within one department orfrom different departments.
The Procurement Department co-ordinates the process and is responsible to;
Prepare tender documents based on information from the Originator;
Verify tender documents accurately depict intended requirements withOriginator prior to tendering;
Check and stipulate relevant Council budget allocation;
Maintain the Contracts Database;
Issue the tenders to the Superintendent for evaluation; Prepare the contract documents and organise signing; and
Issue the order.
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PROCUREMENT TENDERING AND CONTRACTING PROCEDUREGDS Category: Financial Management
Public Document? YESDate: June 2009
Page 5 of 8Version: 5
Review Date: June 2011
Electronic version is the controlled version. Printed copies are considered uncontrolled.Before using a printed copy, verify that i t is the current version.
7.2 Processing the Tender/Contract
The Tenders and Contracts Flowchart at Appendix 1 displays the process to befollowed and this explanation will follow the steps in the flowchart.
7.3 Information Sheet (Template F4-5-953)
This sheet is provided by the Contract Superintendent and is designed to provide theProcurement Department with the specific information that they require for preparing
the sections of the tender dealing with commercial conditions.
7.4 Specification
This document is prepared by the Originator and provides all of the technical detailsrequired to adequately describe the works, services, materials or equipment to beprovided.
7.5 Assemble Tender Documents
The Procurement Department does this and the tasks include;
checking all documents for obvious errors;
inserting data from the Information Sheet into the appropriate sections of thedocuments;
verifying tender documents accurately depict intended requirements withOriginator prior to tendering;
assembling all of the documents and follow the procedures for putting out atender; and
entering data into the Contracts Database.
7.6 Issue, Receive and Evaluate Tenders
Tenders are issued, received and evaluated as described in CouncilsProcurement and Disposal Policy and the Procurement Tenders Issuing andReceiving Procedure.
The document, Tender Evaluation Scorecard (Template F4-5-954) will assist inthis activity. Refer to Appendix 2 for Evaluation Criteria Guide.
Provide Originator with tender evaluations for recommendation to Council.
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PROCUREMENT TENDERING AND CONTRACTING PROCEDUREGDS Category: Financial Management
Public Document? YESDate: June 2009
Page 6 of 8Version: 5
Review Date: June 2011
Electronic version is the controlled version. Printed copies are considered uncontrolled.Before using a printed copy, verify that i t is the current version.
7.7 Council Resolut ion of Contract Appointment
In this step the Originator makes a recommendation to Council based on tenderevaluation of successful tenderer in writing if over $200,000.
Once it has been to Council, there is a cooling off period of (five) 5 working daysbefore the resolution becomes formalised. In this period, objections can be lodgedagainst the resolution and the decision may be appealed.
After the cooling off period has lapsed and the resolution has been accepted, the
Originator is to notify the Procurement Department of Councils Resolution of ContractAppointment and or what has to be done if variations are needed.
7.8 Advise Successful Tenderer in writ ing
Self explanatory.
7.9 Form Contract Document
In this step the Procurement Department converts what was the tender document intoa contract by inserting all of the successful tenderers information and rearranging theorder of sections as appropriate.
Liaison with the Originator is essential in this stage to ensure that any variations oramendments which have arisen from the tender phase are accurately portrayed in thefinal contract documents.
7.10 Sign Contracts (Group Manager)
Self explanatory.
7.11 Issue the order
Self explanatory.
7.12 Contract File
At this stage in the process the Procurement Department will;
Place all of the tender documents and contract documents and relevantcorrespondence into a contract file and store it away until the works, services,materials or equipment has been completed or supplied.
Prepare a working file containing copies of all of the relevant documents andhand it to the Contract Superintendent. The Superintendent OHSW Contractor
Management Kit contains:
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PROCUREMENT TENDERING AND CONTRACTING PROCEDUREGDS Category: Financial Management
Public Document? YESDate: June 2009
Page 7 of 8Version: 5
Review Date: June 2011
Electronic version is the controlled version. Printed copies are considered uncontrolled.Before using a printed copy, verify that i t is the current version.
OHSW Contractor Management Procedure OHSW Contractor Management Kit
The Contract Superintendent will place in that file copies of all documents andcorrespondence generated by the works, services or supply of materials orequipment and email them to Procurement Department at time of sending forsaving in electronic file.
At the completion the Contract Superintendent will hand the working file to theProcurement Department and they will integrate it with the original contract file and
send it to Records Management.
7.13 Manage Progression of the Work
Responsibility of the Contract Superintendent; refer to the Procurement -Superintending Contracts Procedure.
8. PERFORMANCE INDICATORS
All tenders and subsequent contracts are managed and issued in accordance with allrelevant policies.
The Variation Request Template (Template F4-5-955) is completed each time a variation ismade to the Tender, Contract or work performed, equipment or services supplied under thecontract and requisition completed to purchase order for variation.
The Site Inspection Checklist Template (LGAMLS Contractor Management Kit) iscompleted during or directly after each site inspection, a copy is retained in the contract fileand a copy forwarded to the Contractor for their records.
Copies of documents are to be filed in accordance with policies.
9. PROCEDURE OWNER
Senior Procurement Officer
10. AUTHORITY
Reviewed by the Integrated Risk Management Committee on 30 April 2009.Adopted by Senior Management Team on 2 June 2009.
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PROCUREMENT TENDERING AND CONTRACTING PROCEDUREGDS Category: Financial Management
Public Document? YESDate: June 2009
Page 8 of 8Version: 5
Review Date: June 2011
Electronic version is the controlled version. Printed copies are considered uncontrolled.Before using a printed copy, verify that i t is the current version.
11. HISTORY
Changes made reflect the revised Procurement and Disposal Policy (which supersedes theSupply Policy).
Previously named Supply Tendering and Contracting Procedure (changed 2009)
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Procurement Tendering and Contracting Procedure APPENDIX 1
Electronic version is the controlled version. Printed copies are considered uncontrolled.Before using a printed copy, verify that it is the current version.
Tenders and Contracts Flowchart
Ensure budgetallocation is
available
CouncilResolutionwhere over$200,000
InformationSheet
Group Mngrsigns
Contracts
Advis eUnsuccessful
Tenderer
Defer orCancel Tender
Revise orreissueTender
ContractsDatabase
Specification
Assemble TenderDocuments
Form C ontractDocuments &
purchaseorder
Advis e
Accoun tsPayable (copy
of purchaseorder)
Manage Progressionof Works
Issue Order
Issue andReceiveTenders
Evaluatetenders
Advis eSuccessfulTenderer
Refer toControlled
Document,FinancialManagement,Procedures,
Procurement-Superintending
ContractsProcedure
Advertising Whyal laNews / Advertiser / LG
Contracts
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Procurement Tendering and Contracting Procedure APPENDIX 2
Electronic version is the controlled version. Printed copies are considered uncontrolled.Before using a printed copy, verify that it is the current version.
Evaluation Criteria Guide
Evaluation scorecards for evaluating tenders are available from the Procurement DepartmentTemplate F4-5-954 and are based on the following criteria:
Criteria Element Weighting
Capacity & Capability
Capacity
Capability
Organisation structureResources for projectQualifications and experience of key personnelProposed sub-contractorsExperience and referees
Licenses and accreditations
Financial resourcesInsurancesProject schedulePlant and equipment
2%2%8%2%8%
8%
8%8%2%2%
Management Systems Occupational health, safety and welfareEnvironmental managementQuality management
10%5%5%
Cost 30%
100%