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Brisbane City CouncilAnnual Procurement Policy and

Contracting Plan 2015-16

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TABLE OF CONTENTSANNUAL PROCUREMENT POLICY AND CONTRACTING PLAN 2015-16................................................1

INTRODUCTION........................................................................................................................................3CHARTER AND VALUES OF BRISBANE CITY COUNCIL......................................................................3

COUNCIL PROCUREMENT AND CONTRACTING OBJECTIVES..........................................................3PROCUREMENT PRINCIPLES.................................................................................................................4

PROCUREMENT POLICY AND GUIDELINES.........................................................................................4STRATEGIC PROCUREMENT AND CONTRACTING APPROACH........................................................4

SUPPLY POSITIONING MATRIX..............................................................................................................5PLANNING FOR PURCHASES.................................................................................................................6

DISPOSALS...............................................................................................................................................7CONTRACT MANUAL...............................................................................................................................7

COMPLAINTS PROCESS.........................................................................................................................7TRAINING CAPABILITY AND COMPETENCIES......................................................................................7

SUSTAINABLE PROCUREMENT POLICY...............................................................................................7ZERO HARM..............................................................................................................................................9

SUPPLY MARKET DEVELOPMENT AND ENHANCEMENT...................................................................9FORWARD CONTRACTING SCHEDULE.................................................................................................9

FORWARD DISPOSAL SCHEDULE.........................................................................................................9DELEGATIONS POLICY...........................................................................................................................9

POLICY FOR SIGNIFICANT CONTRACTING PLANS.............................................................................9SCHEDULE A EXEMPTIONS FROM CONTRACT MANUAL PROCESS 2015-16....................................10

SCHEDULE B ANNUAL CONTRACTING OBJECTIVES 2015-16.............................................................11SCHEDULE C ANNUAL FORWARD CONTRACTING SCHEDULE 2015-16............................................22

MAJOR CONSTRUCTION.......................................................................................................................23GOODS AND SERVICES (SIGNIFICANT)..............................................................................................25

GOODS AND SERVICES (NON-SIGNIFICANT).....................................................................................26SCHEDULE D ANNUAL FORWARD DISPOSAL SCHEDULE 2015-16.....................................................29

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INTRODUCTIONAs a major entity headquartered in South East Queensland, Brisbane City Council recognises the importance and impact of its operations on the business and social community within Queensland. Council operates in a number of markets and undertakes procurement and disposal activities in relation to a range of goods, services and works. Expenditure by Council on goods, services and works in markets varies according to organisational need. Council must adapt to varying degrees of market complexity and supply market capability.

Council recognises the importance that procurement has for the organisation and created the Strategic Procurement Office within its Organisational Services division. The Strategic Procurement Office operates with other Council business units and divisions to achieve the objectives outlined in the Council Charter and Values through the implementation of a strategic approach to procurement. The objectives of Council will be achieved through the sound contracting principles, as outlined in the City of Brisbane Act 2010.

CHARTER AND VALUES OF BRISBANE CITY COUNCILBrisbane City Council aims to:

• enhance the quality of life of the people of Brisbane, build vibrant communities and improve the quality and value of services

• support the sustainable development of the regional economy and improve the city’s infrastructure

• protect and enhance the city’s natural and built environments• ensure the financial success and viability of Council.

Council expects that all employees display the following values in their dealings with members of the public:

• passion for Brisbane• responsive customer service• respect for people• courage to make a difference• working together• getting things done• value for money.

COUNCIL PROCUREMENT AND CONTRACTING OBJECTIVESCouncil has adopted a Sustainable Procurement Policy that identifies the key objectives that any procurement will seek to further. The policy also seeks to combine a number of Council responsibilities and objectives in accordance with the Brisbane Vision 2031, including:

• Social and Community: A commitment to advancing the social needs and requirements of Brisbane communities to advance the quality of life for all

• Accessibility: Ensuring that Brisbane is an accessible, connected city• Environmental: Procurement outcomes that recognise the value and long term benefits of

sustainable and best practices• Workplace Health and Safety: Zero Harm is a consideration at every stage of the

procurement process• Business Development: The development of local business and promotion of innovative

solutions to foster and support Brisbane’s economic development• Financial: Value for money• Compliance: Probity, accountability and compliance with legislation for procurement and

disposal outcomes.

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PROCUREMENT PRINCIPLESChapter 4 Finances and accountability, Part 3 Financial sustainability and accountability, section 103 (3) of the City of Brisbane Act 2010, details the sound contracting principles that Council will apply to contracts for the supply of goods and/or services, the carrying out of work and the disposal of assets. The sound contracting principles are:

A. Value for moneyB. Open and effective competitionC. The development of competitive local business and industryD. Environmental protectionE. Ethical behaviour and fair dealing.

The above sound contracting principles will be applied via the Contract Manual and the Annual Procurement Policy and Contracting Plan.

The sound contracting principles will be met through sourcing new arrangements and also ensuring that that current arrangements are reviewed to confirm they are meeting both business and performance expectations. It is the intention that contracts with optional extension provisions will be reviewed and extended, subject to value for money, satisfactory performance, ongoing business requirements and the sound contracting principles.

PROCUREMENT POLICY AND GUIDELINESIn formulating decisions that involve procurement, contracts, tendering or disposal activities, Council employees will have access to a number of policies, guidelines and procedures including the following:

• City of Brisbane Act 2010• City of Brisbane Regulation 2012• Corporate Plan• Contract Manual• Procedures for Procurement and Disposal• Annual Procurement Policy and Contracting Plan• Significant Contracting Plans• Project Governance Policy• Project Management Centre of Excellence• Corporate Sustainability Policy• Code of Conduct• Total Asset Management Framework• Risk Management Policy.

STRATEGIC PROCUREMENT AND CONTRACTING APPROACH Council has introduced a strategic contracting approach. Fundamental to the implementation is the introduction of a comprehensive approach to strategic sourcing and category management. This involves understanding the marketplace, the risks in the procurement process and how best to leverage value. Techniques used include:

• category planning including spend, market and risk analysis• seven step sourcing methodology to control sourcing activity• supply positioning matrix (to understand where to direct effort)• ongoing value improvement through vendor management and demand management initiatives.

Further details on the seven step process and the supply positioning matrix are covered below.

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SEVEN STEP SOURCING METHODCouncil utilises a seven step best practice sourcing methodology to assist in achieving the Sound Contracting Principles.

Compliance with the above methodology represents a best practice framework, which works towards meeting Council’s commitment to planning for procurement.

SUPPLY POSITIONING MATRIXIn analysing expenditure, the Strategic Procurement Office applies a Supply Positioning Matrix methodology that is based around identifying and classifying Council spend on the basis of procurement risks and relative expenditure.

The Supply Positioning Matrix assists in allocating the responsibilities and delegations associated with the vast range of procurement activities conducted by Council. For routine activities, responsibility for adhering to Council Procurement Principles may be undertaken by divisions and business units, while the Strategic Procurement Office will focus on strategic or critical areas.

The spend for the financial year 2015-16 will only be significant for a limited number of goods, services and works. The Strategic Procurement Office has developed a sourcing program that will deliver its mission to source goods, services and works that meet the needs and requirements of users within Council, represent the public interest and drive the best value for money for Brisbane. The Forward Contracting Schedule for the financial year 2015-16 is included as Schedule C.

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PLANNING FOR PURCHASES The Strategic Procurement Office develops effective sourcing strategies with suppliers, ensures appropriate business planning is conducted for areas of major spend and seeks to ensure vendors deliver benefits that include economic and qualitative outcomes. Business plans from divisions are incorporated into sourcing plans. These sourcing plans include a review of the supply market, market capabilities and limitations along with negotiation strategies and potential approaches to the market.

For all areas of Council spend, an assessment is made as to the market dynamics, the complexity of securing supply and the relative expenditure. For all categories of spend, specific plans for the procurement and management of the activity are developed. Plans for purchases will vary from year to year and depend upon the operational requirements of Council. The analysis process measures the procurement principles against a number of criteria including competitive pricing, an ability to contribute to the environmental and social goals of Council and the avoidance of harm to Council and the community.

An outcome of the planning process described above is the identification of items that may be required in the future by Council to meet operational and investment expenditure. These items are contained in the Forward Contracting Schedule.

The types of procurement activities proposed for 2015-16 fall broadly into five categories which are Construction, Operations and Maintenance, Commodities and Services, Information and Communications Technology, and Fleet. Market assessments are continually updated by Category Management. The processes by which Council engages the marketplace and sources and obtains its requirements are detailed in Council's Contract Manual and Procedures for Procurement and Disposal.

The application of the sound contracting principles will be measured by adherence to Council's Contract Manual, and Annual Procurement Policy and Contracting Plan. The Strategic Procurement Office will develop and prepare a business plan to link the overall Council Corporate Plan objectives to the sound contracting principles.

Key procurement initiatives are to continue to use strategic sourcing measures for the upcoming capital procurement program and improving procurement practices to increase speed of service, enhance value for money and improve quality of supplier selection.

Subject to approved exemptions, these procedures require that Council invite tenders or proposals for the carrying out of work or the provision of goods, services and works estimated to be worth above $250,000. Council has determined that frequent sourcing does not always ensure improved value for money nor does it necessarily deliver the best result in terms of sustaining open and effective competition.

The duration of a contract within routine and bottleneck areas will be established through category planning and market analysis so as to maximise value for money. However, to deliver best value while also achieving open and effective competition, Council will apply best practice and engage the marketplace at least once in each five-year period unless approval is granted for greater than this period at the post market stage or on the basis a rationale is approved that it is in the public interest not to engage the market within the five year period. Council may engage the market more frequently in circumstances where there is change within Council, the overall market or given market changes, market research indicates that more frequent sourcing would deliver a better outcome, or the best practice benchmark changes.

Where existing suppliers demonstrate continuous value improvement and a high quality of service, arrangements are intended to be renegotiated and extended up to a maximum total contract period of five years. The effect of this approach will be to eliminate unnecessary sourcing activity and allow the Strategic Procurement Office resources to be directed at categories and contracts where value for money will be better achieved. Full details of exemptions from the standard Contract Manual processes are contained in Schedule A.

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DISPOSALS The types of disposal activities proposed for 2015-16 fall broadly into five categories which are Commodities and Services, Operations and Maintenance, Information Technology and Telecoms, Construction, and Fleet. All Council disposals must be consistent with the objectives and values contained in this Annual Procurement Policy and Contracting Plan. As part of its Procurement and Disposal Strategy, Council seeks to identify items that may have reached the end of their economic or useful life and/or may be surplus to Council requirements.

Council will apply the principles detailed in its Contract Manual and seek outcomes in line with the sound contracting principles that achieve best value for Brisbane. Council will utilise a range of strategies that will include auctioning items to maximise the value and return on prior investments. Major items for disposal will be detailed in the Forward Disposal Schedule. The Forward Disposal Schedule for the financial year 2015-16 is included as Schedule D.

CONTRACT MANUALProcedures have been developed for the benefit of Council employees, both within the Strategic Procurement Office and other divisions or business units across Council for the procurement and disposal of goods, services and works. These procedures outline procurement delegations and the approaches to be taken when undertaking sourcing from the supply market and the management of subsequent contractual arrangements. These procedures also outline the sound contracting principles and the objectives of Council, ensuring consistency with Council’s Annual Procurement Policy and Contracting Plan.

COMPLAINTS PROCESSA complaints process has been adopted for handling complaints surrounding procurement and/or disposals and will follow the framework as established by the Executive Manager, Office of the Lord Mayor and Chief Executive Officer. A process is in place for the receipt and handling of all complaint matters in accordance with Council’s complaints process.

TRAINING CAPABILITY AND COMPETENCIES The development of skills and competencies in the areas of supply chain management, negotiation, category management, relationship and vendor performance management will continue to receive support from Council. The attainment and retention of professional skills and continuing education for procurement staff is supported by Council and will include using the training and certification offered by the Queensland Government Chief Procurement Office.

The Chief Procurement Officer is responsible for the development of procurement capability within the organisation and the enhancement of competencies by individuals within the Organisational Services Division. In order to achieve the human resource objectives of Organisational Services, the Divisional Manager will provide a range of career opportunities for procurement professionals from a range of providers and through developing a stimulating work environment that values creativity and innovation. The Strategic Procurement Office’s centre-led organisational structure will greatly facilitate development and career advancement options.

SUSTAINABLE PROCUREMENT POLICYSustainable procurement as a process

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 (working definition developed by the Queensland Government Chief Procurement Office).

Principles and elements of Sustainable Procurement in Council

Sustainable procurement involves Council buying goods, services and works in a way which complies with the sounding contracting principles set out in the City of Brisbane Act 2010 and achieves long-term sustainability.

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The table below lists each of the sound contracting principles and highlights key elements of each principle in a sustainability context.

Sound Contracting Principle

Key elements of sustainability

Value for money Achieves value for money over whole of life, rather than just initial cost

Open and effective competition

Maintains accountability in the procurement process and the expenditure of public money

The development of competitive local business and industry

Manages demand and supply to ensure that competitive markets and the availability of resources are sustained in the long term (including disaggregation of demand where appropriate to support local supply markets and avoid cultivation of monopoly suppliers)

Promotes economic development

Abides by the principles of sustainability, as set out in Council’s Corporate Sustainability Policy

Environmental protection Minimises environmental harm and contributes to environmental sustainability

Avoids unnecessary consumption

Abides by the principles of sustainability, as set out in our Corporate Sustainability Policy

Ethical behaviour and fair dealing

Maintains probity of process

Promotes socially responsible practices

Achieves equitable access and Zero Harm

Applying Sustainable Procurement in Council

When we undertake our contracting activities, we will apply sustainable procurement by considering how we can make a contribution to sustainable procurement and a sustainable Brisbane when we are:

(a) examining our organisational, project and/or community needs for an anticipated contracting activity

(b) developing strategies for a contracting activity

(c) developing specifications for a contracting activity

(d) planning/undertaking evaluations as part of a contracting activity.

Definitions

In this plan:

• “Sustainable Procurement” means the ‘principles and elements of Sustainable Procurement in Council’ as stated above.

• “Contracting Activities” means activities for the making of a contract for: (a) the carrying out of work; or (b) the supply of goods or services; or (c) the disposal of non-current assets. Contracting activities excludes contracts of employment.

• “Principles of Sustainability” means the principles stated in Council’s Corporate Sustainability Policy.

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ZERO HARMBrisbane City Council is committed to Zero Harm for its employees and the community. That is safety is the first priority and it is not acceptable to cause harm to anyone. Council is an organisation that acts proactively to prevent injuries, and actively encourages innovative management of work processes to prevent injury or illness to anyone. The following are integral to achieving this goal.

• Development of a safety first culture where the key focus is on preventing incidents, injuries and illnesses from occurring.

• Development of an active and healthy workforce to further reduce the potential for injury and illness.

• Excellent post incident systems to prevent re-injury and ensure effective injury management and return to work programs.

SUPPLY MARKET DEVELOPMENT AND ENHANCEMENTCouncil supports the development of the local economy and the enhancement of supplier capability. Specialist industry groups such as the Industry Capability Network will be accessed to assist in the sourcing of competitive local suppliers. Where key supply markets are not meeting Council requirements, Council will seek to work with the supply market to develop that capability. Council is also keen to embrace sustainable procurement and has initiated a number of specific procurement initiatives in this area.

FORWARD CONTRACTING SCHEDULEThe Forward Contracting Schedule for the financial year 2015-16 is included as Schedule C.

FORWARD DISPOSAL SCHEDULEThe Forward Disposal Schedule for the financial year 2015-16 is included as Schedule D.

DELEGATIONS POLICYDelegations for contracting activities have previously been approved by Council. Further delegations are also included in Schedule A of this Plan (Exemptions from the Contract Manual Process).

POLICY FOR SIGNIFICANT CONTRACTING PLANSSignificant contracts for which a plan will be prepared are those with:

• estimated contractual expenditure of $10 million and above with procurement to be commenced in 2015-16 year

• high value/high criticality/high risk procurements as assessed by the Supply Positioning Matrix, to be sourced in the 2015-16 year.

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Schedule A Exemptions from Contract Manual Process 2015-16

Brisbane City CouncilAnnual Procurement Policy and Contracting Plan

2015-16

(Currently unavailable)

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Schedule BAnnual Contracting Objectives 2015-16

Brisbane City CouncilAnnual Procurement Policy and Contracting Plan

2015-16

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Desired Procurement

Outcome

Initiative/ Strategy

Proposed for 2015-16

KPI/Measure to gauge success

Target 2015-16 Accountability When

Financial Procurement Objectives

Delivery of procurement efficiency objectives

Review of external spend nominated in the Forward Contracting Schedule to identify benefits for OPEX and CAPEX

Program to harvest $20 million of benefits as outlined in 2015-16 budget

Category Management, Strategic Sourcing– Strategic Procurement Office

Divisions/business units

Q1-Q4

Review existing contracts to ensure Council is continuing to receive value for money through contract reviews

Savings opportunities implemented and benefits delivered for OPEX and CAPEX

Delivery of benefits from category management program

Category Management Plans agreed with internal customers

All plans for strategic/critical categories updated and agreed in consultation with customers

Category Management

Corporate Risk Management– Strategic Procurement Office


Q1-Q4

Supplier Management Program enhanced

Supplier management plans updated in consultation with customers and key suppliers

Demand management/process improvement initiatives implemented

Determine relevant categories to establish demand management/ process improvement initiatives

Apply a supplier tiering formula to all new and existing suppliers

Ensure supplier tiering is completed for all contracted suppliers

Process simplification Continuously review category management processes to identify opportunities for more efficient and effective practices

Improve the efficiency of the procure to

Improve the efficiency of the automated accounts payable

Reduce the average number of invoices handled manually by

Support Services Q1-Q4

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Desired Procurement

Outcome





pay cycle system 10% compared to June 2015 levels Corporate Risk

Management – Strategic Procurement Office

Q1-Q4

Average time between receipt of invoice to scheduled payment

>93% of payments made within terms

Improve the use of preferred purchasing channels

Reduce the number of free text shopping carts and increase catalogued shopping carts and work orders

Social Procurement Objectives

Increase Council spend with Social Enterprises and improve procurement outcomes with current Social Enterprise suppliers

Annual spend of $2 million with Social Enterprises for financial year

Goal of $2 million spend for the financial year achieved

Category Management – Strategic Procurement Office in consultation with Inclusive Communities – Brisbane Lifestyle

Q1-Q4

Council staff members to liaise with current Social Enterprise suppliers to better understand Social Enterprise supplier capability and capacity and provide Social Enterprise suppliers with more information about Council’s requirements

Council officers managing key social procurement contracts report improvements on supplier performance

Increase the number of Social Enterprise suppliers to Council

Review Council’s Social Enterprise database and add suppliers where appropriate

A 10% increase in the number of Social Enterprise suppliers against which spend (excluding grants) is accrued

Category Management –Strategic Procurement Office in consultation with Inclusive Communities – Brisbane Lifestyle

Q1-Q4

Advertise internally regarding use of Social Enterprise suppliers

Engage the commercial sector to raise awareness of contracting/sub-contracting of Social Enterprises

Review upcoming tender processes to consider where it may be appropriate to include social procurement objectives in the evaluation criteria

Quarterly reviews of Strategic Procurement’s sourcing plan

Category Management – Strategic Procurement Office in consultation with Inclusive Communities – Brisbane Lifestyle

Q1-Q4

Engage some of Council’s commercial

Regular contact with commercial suppliers

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Desired Procurement

Outcome





suppliers to promote procurement from Social Enterprise suppliers

regarding Social Procurement

Accessibility Procurement Objectives

Improve Council’s procurement processes, procedures and increase organisational awareness of the accessibility requirements

Accessibility addressed in all pre-market and post market submissions

Accessibility is assessed in all pre-market and post market submissions

Category Management – Strategic Procurement Office

Information Services

Brisbane Infrastructure

Q1-Q4

In sourcing activities with significant accessibility impacts, Council to have an accessibility representative on (or an advisor to) the Project Control Group (PCG)/evaluation team


Information Services

Brisbane Infrastructure

Q1-Q4

Environmental Procurement Objectives

Wasteminimisation /recycling initiatives

Reduction in material proceeding to landfill

Utilisation of recovered material in construction program (i.e. glass/tyres/ crushed concrete/ scalping)


Waste and Resource Recovery Services – Field Services Group

City Projects Office

Q1-Q4

Project manager awareness of Council sustainability objectives to be incorporated in procurement and project manager inductions and related training

Renewable energy

Continue purchase of GreenPower accredited renewable energy for Council’s electricity needs (measured in %)

Maintain Council’s spend on GreenPower in line with corporate targets to source 100% GreenPower for all of Council’s purchased electricity


Energy and Carbon – Natural Environment, Water and Sustainability

Q1-Q4

Energy efficiency

Reduce electricity consumption

Optimise value for money outcomes for

Category Management –

Q1-Q4

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Desired Procurement

Outcome





(measured in gigawatt hours {GWh})

identified energy efficiency projects

Strategic Procurement Office


Aim to purchase only minimum four star energy and water ratings for any appliances to which ratings apply when available

E-waste minimisationinitiatives

Council specifications to require ICT vendors to provide information on their e-waste minimisation strategy

All applicable ICT vendors required to demonstrate conformance to Council’s e-waste minimisation conditions


Q1-Q4

Fleet emission targets

Continue utilising hybrid and electric vehicles in the corporate car pool

25% of the vehicles in the corporate car pool are to be hybrid and electric vehicles

Fleet Management Group – Strategic Procurement Office

Q1-Q4

Reduce average greenhouse gas emissions from the bus and CityCat fleet

Evaluate alternative fuels and technologies and incorporate clean air objectives into the Council’s CityCat fleet and bus fleet procurement process

Transport Planning and Strategy

Brisbane Transport


Q1-Q4

Carbon offset fuel

Purchase accredited offsets to negate greenhouse gas emissions from Council’s bus and vehicle fleets and stationary fuel use (diesel, compressed natural gas {CNG}, natural gas, petrol)

Offset 100% of Council’s fuel (this relates to the direct emissions associated with the combustion of fossil fuels, not upstream emissions involved with the manufacture and transport of the fuel)


Q1-Q4

Carbon neutral Council

Manage the framework that encourages contractors to demonstrate responsible environmental performance

Manage the framework and ensure assessment for all major projects (for example the contractor to provide an Environmental Management Plan)



Q1-Q4

Require operators of Ensure contract Connected

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Desired Procurement

Outcome





Council owned and badged community facilities to source electricity from 100% GreenPower (includes Council operated swimming pools. Excludes sporting clubs, community groups, leased swimming pools and commercial revenue leases of Council owned property etc.)

clauses in all new arrangements

Communities – Brisbane Lifestyle


Brisbane City Legal Practice

Greenhouse gas emissions reduced or avoided by procurement activity

Identify sourcing activities that are suitable for inclusion of carbon intensity as weighted assessment criteria that recognise reduced or avoided greenhouse gas emissions

Category Management and Strategic Sourcing – Strategic Procurement Office



Impact of changing climate

Inclusion of impact of changing climate assessment in the mandate and justification documentation of all Council projects and activities

All applicable major projects over $10 million

City Projects Office Q1-Q4

Renewable resources

Council specifications and projects to require the use of renewable timbers in all Council construction and engineering projects

100% use of Forest Stewardship Council (FSC) timbers in Council controlled construction and maintenance activities




Q1-Q4

Environmentally responsible goods and

When assessing products/services consideration is given

Identify sourcing activities that are suitable for inclusion

Category Management and Strategic Sourcing –

Q1-Q4

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Desired Procurement

Outcome





services to reuse, recycling and safe disposal of the product

of reuse, recycling and safe disposal as weighted assessment criteria

Strategic Procurement Office

Increase sustainableprocurement initiatives across Council's sourcing processes

Increase the number of procurement activities that include a sustainable procurement outcome

Continue to facilitate greater awareness of sustainable procurement benefits into Council's general procurement processes

Category Management,Corporate Risk Management – Strategic Procurement Office

Waste and Resource Recovery Services – Field Services Group


Q1-Q4

Business Development Objectives

Develop and maintaincompetitive supply markets

Communicate “pre-market” signals to suppliers in respect of Council’s requirements for goods and services

Improved regional collaboration with other local government and state government agencies in respect to focus on business and supplier community development

Improved engagement with the business community, ensuring that Brisbane businesses understand Council’s procurement processes and how to become a supplier to Council

Industry warm-uppresentations along with the public communication of theAnnual Procurement Plan andForward Procurement Schedule

Contribute to the Lord Mayor’s business engagement priority by encouraging businesses supplying Council to become part of the Brisbane Business Network and by providing general procurement seminars at four industry forums organised in conjunction with Brisbane Marketing

Strategic Procurement Office in collaboration with Economic Development

Q1-Q4

Process of engagement of suppliers maintained

Continue offering tender feedback to successful and unsuccessful suppliers

Mandatory feedback to suppliers on all procurementactivity valued at $1 million and over


Q1-Q4

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Desired Procurement

Outcome





Feedback to be offeredwithin two to four weeks of tender award

Improved supplier awareness of Council’s procurement methodology

Simplify tender documentation and process to increase quality of responses and outcome of tender process for Council

Implement face-to-face briefing sessions to outline tender requirements for categories with track record of not responding with adequate detail of proposals

Ensure tender documentation and evaluation criteria is simplified and tailored towards audience that needs to complete program implemented with tier two, three or four suppliers

Category Management, Corporate Risk Management and Strategic Sourcing – Strategic Procurement Office

Q1-Q4

Zero Harm Objectives

Improving Council'sprocurement procedures and processes for Zero Harm

Review suppliers performance during the contract term to ensure Zero Harm has been appropriately identified and addressed

Incorporate into category management requirements

Organisational Wellness, Safety and Health

Corporate Risk Management – Strategic Procurement Office


Q1-Q4

For contracts with a high safety risk, obtain reporting at the end of a contract term to determine how many Workplace Health and Safety (WHS) incidents had occurred

Incorporate into category management reporting

Incorporate reporting requirements into contracts where the contractor needs to notify Council of WHS/zero harm incidents on Council’s sites

Review and refine inclusion in procurement documentation

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Desired Procurement

Outcome





Compliance Objectives

Improve the efficiency of the source to contractcycle

Sourcing commenced and completed to enable entering into contracts prior to expiry of existing contracts

100% of contracts are entered into prior to expiry of existing contracts


Division/business units

Q1-Q4

Percentage of specifications completed at pre-market approval stage

100% of specifications completed at pre-market stage

Improvements in compliance with procurement and purchasing policy and processes

Manage leakage on Council contracts

Leakage on contracted categories maintained at current low levels


Supplier Services – Support Services


Q1-Q4

Monitor the volume and value of confirmation orders

Reduction in the number of confirmation orders by 10% compared to 2014-15 levels

Monitor impact on blanket orders with the introduction of SAP

All blanket orders greater than $100,000 to be linked to a Corporate Procurement Arrangement

Reduction in blanket orders from 2014-15 levels by 20% (excluding construction contracts)

Education and training

Deliver training on Contract Standards, Procurement Board approval processes and specification writing

Deliver training to key business areas




Q1-Q4

Deliver procurement training as part of project manager inductions

Deliver training inductions to project manager forums

Deliver training on processes and

Review and update all program material

Chief Procurement Officer and Corporate

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Desired Procurement

Outcome





systems relating to SAP

and deliver appropriate level of face-to-face and desktop training

Risk Management

Complaint resolution

Zero complaints received for the financial year

Ensure that procurement processes continue to be conducted openly, fairly and in accordance with corporate rules


Q1-Q4

Maintain protocols and key performance indicators for compliance with complaints reporting process

Appropriate areas of Council are briefed on the complaints process

Include as part of project manager and executive inductions

Number of complaints received, resolved and remaining unresolved tracked and reported

Ensure value for money probity and accountability in the procurement process

Manage the operation of the Stores Board and Procurement Boards

>90% first time approval rate for submissions

Coordinate the development of the Annual Procurement Policy and Contracting Plan (APPCP)

APPCP approved by Council in August 2015

Progress against objectives measured quarterly

Report monthly on contracts entered into by Council > $100,000

By twenty-first day after month end

Enhance effective and sustainable procurement governance

Maintain and enhance the operation of the procurement boards, Stores Board and Oversight of Consultancies Special Committee to ensure effective decision making

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Schedule CAnnual Forward Contracting Schedule 2015-16

Brisbane City CouncilAnnual Procurement Policy and Contracting Plan 2015-16

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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 the 2015-16 financial year 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 2015-16. Where the ‘Estimated Value of contracts…’ for a project or program detailed below reaches or exceeds $10 million or is designated 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)

2015-16

Estimated value of contracts greater than

$2 million going to market in 2015-16

Expected Quarter at

MarketProposed

Procurement StrategyContact Details1

Anzac Square Stage 3 $3,000,000 Q1-Q2 Quotes under existing Corporate Procurement Arrangement

Project Delivery Manager, Civic and Building, City Projects Office,3027 4562

Major Drainage Construction $3,150,000 Q1-Q4 Quotes under existing Corporate Procurement Arrangement

Delivery Manager, Drainage Infrastructure Services, Construction Branch, 3403 7831

Constructing Key Bikeway Links in Brisbane Suburbs – various external packages

$2,000,000 Q1-Q4 Quotes under existing Corporate Procurement Arrangement

Senior Project Managers, Civil and Transport, City Projects Office, 3178 4092, 3403 7726

Disability Discrimination Act (DDA) compliant Bus Stops – various external packages of works

$3,000,000 Q1-Q3 Quotes under existing Corporate Procurement Arrangement

Project Engineer, Civil and Transport, City Projects Office, 3178 2768

Major Traffic Improvements – Intersections $8,210,000 Q1-Q4 Quotes under existing Corporate Procurement Arrangement

Construction Manager, Civil Infrastructure Services, Construction Branch, 3403 7832

Stormwater Drainage Rehabilitation $3,210,000 Q1-Q4 Quotes under existing Corporate Procurement Arrangement

Delivery Manager, Drainage Infrastructure Services, Construction Branch, 3178 6002

Glen Road and Brisbane Street Intersection $3,000,000 Q2-Q4 Quotes under existing Corporate Procurement Arrangement

Principal Engineer, Civil and Transport, City Projects Office, 3403 7585

1 Contact details may change.23

Major Projects(Greater than $2 million)

2015-16

Estimated value of contracts greater than

$2 million going to market in 2015-16

Expected Quarter at

MarketProposed

Procurement StrategyContact Details

Boundary Road – Progress Road to Kelliher Road Upgrade

$13,000,000 Q2 Public tender/quotes under existing Corporate Procurement Arrangement


Paradise Road Upgrade $4,500,000 Q2 Quotes under existing Corporate Procurement Arrangement


Telegraph Road Stage 1B $9,000,000 Q4 Public tender/quotes under existing Corporate Procurement Arrangement

Principal Project Manager, Civil and Transport, City Projects Office, 3178 6574

Roads Network Resurfacing – various external packages with individual values below $10 million

$25,000,000 Q1 Quotes under existing Corporate Procurement Arrangement

Senior Engineer, Civil and Transport, City Projects Office, 3403 7481

Edward Street Upgrade $5,000,000 Q4 Public tender/quotes under existing Corporate Procurement Arrangement

Senior Project Manager, City Projects Office, 3178 2086

Consolidation of Field Services Group Depots – project set-out costs (competitive tender process)

$4,940,000 Q3 Quotes under existing Corporate Procurement Arrangement

Project Director Asset Optimisation, Organisational Services, 3403 5439

TOTAL $87,010,000

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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 2015-16 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.

Grouping ProductCategory

Description Indicative Annual Spend $

Expected Quarter at

Market

Comments Contact Details

Commodities and Services

Electric utilities Electricity $38,000,000 Q2 Review of current contract arrangements or public tender

Category Manager, 3403 9090

Fuel and fuel additives Bulk fuel and fuel card services

$26,800,000 Q1 As above As above

Lubricants, greases and Adblue


Guard services Physical security and locksmith services


Temporary clerical or administrative assistance

Temporary labour – admin and trades


Construction and Operations

Electrical system services Electrical services $4,180,000 Q3 Review of current contract arrangements or public tender


TOTAL $108,730,000

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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 the 2015-16 financial year 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.


Description Indicative Annual Spend

Expected Qtr at Market


Commodities and Services

Advertising agency services

Creative and digital services

$1,000,000 Q1 Review of current contract arrangements or public tender


Alert management Early warning alert service

$430,000 Q1 As above As above

Construction machinery and equipment hire

Backhoe loaders and skid steer loaders


Consulting accounting services

Accounting, tax and finance - consulting


Personal safety and protection

Personal protection equipment and footwear


Specialised vehicle systems and components

Bus engine bay fire suppression systems


Uniforms Corporate wardrobe, industrial wear and bus driver uniform


Vehicle windows and windshields

Supply and fit of automotive glass


Construction and Operations

Building maintenance and repair services

Maintenance and servicing of doors

$330,000 Q3 Review of current contract arrangements or public tender

Category Manager,3178 8530

Plumbing Services $620,000 Q3 As above As above

Tiling $840,000 Q4 As above As above

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General building $1,500,000 Q4 As above As above

Demolition $850,000 Q4 As above As above

Asbestos removal $850,000 Q4 As above As above

Painting $360,000 Q4 As above As above

Concrete or asphalt grinding services

Concrete and asphaltic cutting and coring


Fire protection Fire safety services $670,000 Q4 As above As above

Highway and road construction services

Bitumen primes and spray seals


Pipe piping and pipe fittings

Access cover gully grate frame fittings


Road sweepers Mechanical road sweepers and hire of equipment


Traffic counting and movement surveying

Traffic count and movement survey and equipment


Traffic signs Signage and road safety supplies and services


Vehicle body repair or painting service

Panel beating services $270,000 Q1 As above As above

ICT and Telecommunications

Library management Radio Frequency Identification (RFID) solution – libraries

$350,000 Q1 Review of current contract arrangements or public tender


Printer and scanner documents

Digital scanning services


27





Security administration software

Firewall hardware software solution licence – support and maintenance


Power supply and conditioning

Supply and installation of datacentre Uninterrupted Power Supplies (UPSs)

$250,000 Q1 As above ICT Sourcing Manager,3403 1945

Application delivery platform

Cloud Services Panel To be advised Q2 As above As above

TOTAL $18,190,000

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Schedule DAnnual Forward Disposal Schedule 2015-16

Brisbane City Council Annual Procurement Policy and Contracting Plan 2015-16

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The following items represent disposals of $5,000 or greater that the Council may seek to conclude during 2015-16. Actual disposal activity will be dictated by a number of factors that may include the level of operational activity and any purchasing arrangements implemented. Significant Disposal Plans for the identified disposal activities will be developed where disposals are not in accordance with the Contract Manual or the proposed disposal approach.

Disposal Activity Proposed Disposal Approach Procurement Outcome

KPI/Measure to gauge success Accountability2 Expected

Timing

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

Economic/Environmental

Return greater than book value

ICT Service Delivery Q1-Q4

Computer desktops and/or laptops

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

ICT Service Delivery/ Community Development Services

Q1-Q4

Computer server, storage and communications equipment

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

Economic/Environmental

Return greater than book value

ICT Service Delivery 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 Management Group

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



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



Q1-Q4

Major and general plant and equipment

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



Q1-Q4

Special vehicles Public tender/auction or sale by private treaty through Economic Return greater than Fleet Management Q1-Q4

2 The area of Council responsible for the disposal activity30

Disposal Activity Proposed Disposal Approach Procurement Outcome

KPI/Measure to gauge success Accountability Expected

Timing

the auction house at the agreed reserve price if the asset has been passed in at a previous auction

book value Group

Obsolete inventory Public tender/auction Economic Return greater than five percent of current book value

Supplier Services Q1-Q4

Buses and ferries 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


Brisbane Transport Q1-Q4

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