tcc procurement guidance

8/2/2019 TCC Procurement Guidance

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PROCUREMENT PROCESS

GUIDANCE DOCUMENT

Page 1 of 76Tendering process

21/10/2011http://econtent.tauranga.govt.nz/data/a-z/files/Procurement%20Process%20Map/Tend...


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TABLE OF CONTENTS

TENDERING PROCESS - GUIDANCEEXPLAINING TAURANGA CITY COUNCILS TENDERING PROCESS FOR CONTRACTS OVER THE TENDER THRESHOLDEXPLAINING TAURANGA CITY COUNCILS TENDERING PROCESS FOR CONTRACTS OVER THE TENDER THRESHOLDEXPLAINING TAURANGA CITY COUNCILS PROCUREMENT PROCESS BELOW THE TENDERING THRESHOLDBEFORE STARTING THE TENDERING PROCESSAPPROVAL LEVELSOBTAINING ADVICE ON TENDERSNOTIFICATIONEMERGENCY PROCUREMENTAPPROVAL OF A CLOSED TENDERING PROCESSAPPROVAL FOR SELECTIVE (SOLE-SOURCE) PROCUREMENT PROCESSWHAT TENDER DOCUMENT SHOULD I USE?TENDERER SELECTION METHODOLOGIESREQUEST FOR INFORMATION (RFI)REGISTRATION OF INTEREST (ROI) / EXPRESSION OF INTEREST (EOI)REQUEST FOR PROPOSAL (RFP)REQUEST FOR TENDER (RFT)REQUEST FOR QUOTATION (RFQ)PREPARING TO TENDERCONTRACT FILEELECTRONIC CAPTURE OF PROJECT AND CONTRACT RECORDSCONDUCTING THE TENDEREVALUATING THE TENDERAPPROVAL PHASEADVISING TENDERERS OF THE OUTCOMEWITHDRAWING FROM OR CANCELLING THE TENDERING PROCESSDUE DILIGENCEPOST-TENDER NEGOTIATIONS/CLARIFICATIONSTHE CONTRACT

REGISTERED OR QUALIFIED SUPPLIER LISTSPANEL CONTRACTSEXCEPTIONS TO THE OPEN TENDERING REQUIREMENTAPPENDIX 1 - DEFINITIONSAPPENDIX 2 - STATEMENT OF BUSINESS ETHICSAPPENDIX 3 - SUPPLIER SELECTION METHODSAPPENDIX 4 - GUIDANCE FOR SUSTAINABLE PROCUREMENTAPPENDIX 5 RESPONSIBILITIES FOR ACCURATE RECORD KEEPING




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TENDERING PROCESS - GUIDANCE

Purpose of this section The purpose of this guidance document is to detail theprocess that is used by Tauranga City Council to purchasegoods and/or services. In this guidance document the termtendering covers a variety of different forms ofprocurement processes.

Definitions Refer to appendix 1

Statement of BusinessEthics

Refer to appendix 2

Who does this apply to? This guidance document applies to Tauranga City Councilemployees, contractors, consultants and procurementagents who are purchasing goods and/or services on behalfof Tauranga City Council.

Documenting and filingthe tender

It is essential that everything to do with a tender process isdocumented and filed in the Contract File for each tenderprocess. This includes:

All tendering decisions and underlying reasons orassumptions.

All tender process communications, including:

meeting minutes or notes;

records of phone calls; and

emails or letter correspondence.

All tender process documentation, including:

business case and/or procurement plan;

conflict of interest and confidentialitydeclarations;

tender evaluation methodology;

tender opening register;

tender evaluation results; and

tender recommendation.




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Closed

No

Yes

Negotiate

Award contract Original contract toFinance

Debrief ofunsuccessful tenderers

Manage contractenew

GM/CEO/Council forapproval

Review existing supplierdatabase, existing

procurement plan or go toRFQ/ tender process

Check delegatedauthorities

ROI/RFP/RFT

Inform unsuccessfultenderers

Yes

Open

No

Is it an emergency?

Appoint contract/project manager

Prepare procurement plan

Approval to Tender by delegatedauthority if required

Identify a minimum of three potentialsuppliers

Accept valid responses

RFQ orclosed

RFP/RFT

Evaluate

Shortlist if required

Presentations/site visits ifrequired

Final evaluation

Recommendation of preferred tenderer to delegated authority

Negotiation/Clarification (If Reqd)

Award contract topreferred tenderer

Is the contract over $100,000

DocumentExecution &

Records

Debrief ofunsuccessful

tenderers (If Reqd)

Open or closed process?

Managecontract

Select Evaluation Team & Team Leader

Assemble Tender Documents

These items are only tobe used if previously

included in tenderdocuments

Must not be used in NZTAtenders

CESS FOR CONTRACTS OVER THE TENDER THRESHOLD




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EXPLAINING TAURANGA CITY COUNCILS TENDERING PROCESS FOR CONTRACTS OVER THE TENDER THRESHOLD

Key issues

Valuation of contracts When determining whether a contract value is above orbelow the tender threshold, the contract must be based onthe maximum total estimated value of the procurement overits entire duration.

NOTE: Tauranga City Council is not to prepare, design, orotherwise structure or divide at any stage any contract value

to fall below the threshold to tender with the objective ofavoiding the requirement to competitively tender.

Tendering Any transaction likely to exceed the tender threshold mustbe:

subject to a contestable process; and

implemented by a formal written contract.

NOTE: Any departure from using a contestable tenderingprocess should be an exception rather than the rule. Thedecision not to use a contestable process (unless outlinedin the section on exceptions in this document) must bebased on valid, documented reasons and be signed-off bythe appropriate delegated authority.

Project Manager When the tendering process begins: a project manager must be assigned to each contract to

carry out the tender process. In the first instance, theywill need to develop the procurement plan to start theprocess;

the project manager must obtain delegated authorityapproval of the initiation of the tendering process (referprocurement plan and if appropriate the business case);

the project manager is accountable for the entire processfrom the time that the tendering process starts until thecontract finishes; and

if individual job responsibilities change during theprocess, ownership must be passed on.

Tenderers have the right to access information about themand their submission that is held by Tauranga City Council.

NOTE: Subject to the following section, tender responsesshould not be disclosed to other parties (including othertenderers) except in very exceptional circumstances.Tauranga City Council must obtain legal advice beforedisclosing any part or all of a tender response to any personoutside of Tauranga City Council.




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Information held byTauranga City CouncilDisclosing information Tauranga City Council must comply with its obligations

under the Privacy Act 1993, and with the Local GovernmentOfficial Information and Meetings Act 1987, when disclosingany information.

What is required tomanage the tenderingprocess?

Personnel managing the tendering process and theresultant contract must have an adequate level ofprocurement competence based on:

experience;

training;

clear understanding of procedures;

clear understanding of negotiation processes;

relationship management skills; and/or

engaging specialist procurement and/or legal advicewhere required.

NOTE: Delegated authorities have the responsibility todecide whether or not their staff have the relevantprocurement experience required to manage competitive

tendering processes.

Engaging third partiesto manage procurementprocesses

Tauranga City Council can engage third parties to managethe procurement process for individual projects. The use ofa third party as an agent or consultant to advise on, arrangeor manage a procurement process does not exemptTauranga City Council from complying with the procurementpolicy and procedures.

When Tauranga City Council engages a third party tomanage a procurement process, staff must ensure thatthere is a term included in the contractual arrangementswith the third party which requires them to comply with ourprocurement policy and procedures. Tauranga City Councilshould ensure that the third party is fully aware of, andcompletes, the work in accordance with the procurementmanual and policies.

Health and Safetyobligations

Tauranga City Council Health and Safety obligations mustbe considered before entering into the tendering process.

Tender documentation must state the health and safetyrequirements that any successful tenderer must provide.

For further information, refer to Tauranga City CouncilsHealth and Safety Policy - DataWorks TCC ref 1336569.




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EXPLAINING TAURANGA CITY COUNCILS PROCUREMENT PROCESS BELOW THE TENDERING THRESHOLD

Key issues

Valuation ofengagements / workpackages / projects

Refer to the policy objectives in the Procurement Policy.Projects valued at less than the tendering threshold will notnormally be subjected to a full, formal tender process. Thisdoes not preclude tendering; especially for projects where thevalue is close to the tender threshold in value.

NOTE: Tauranga City Council is not to prepare, design, orotherwise structure or divide at any stage any contract value tofall below the threshold to tender with the primary objective ofavoiding the requirement to competitively tender.

Open and faircompetition

Tauranga City Council endeavours to allow open and faircompetition to occur when procuring work packages at valuesbelow the tendering threshold.

Quotations Seeking quotations for work packages is frequently an effectiveway of achieving best value and allowing open and faircompetition to occur.

Disclosing information Tauranga City Council must comply with its obligations underthe Privacy Act 1993, and with the Local Government OfficialInformation and Meetings Act 1987, when disclosing anyinformation.

What is required tomanage the procurementprocess?

Personnel managing the procurement process must have anadequate level of procurement competence based on:

experience;

training;

clear understanding of procedures;

clear understanding of negotiation processes;

relationship management skills; and/or

engaging specialist procurement and/or legal advice whererequired.

Engaging third parties tomanage procurementprocesses

Tauranga City Council can engage third parties to manage theprocurement process for individual projects. The use of a thirdparty as an agent or consultant to advise on, arrange ormanage a procurement process does not exempt TaurangaCity Council from complying with the procurement policy andprocedures.

When Tauranga City Council engages a third party to managea procurement process, staff must ensure that there is a termincluded in the contractual arrangements with the third partywhich requires them to comply with our procurement policyand procedures. Tauranga City Council should ensure that thethird party is fully aware of, and completes, the work inaccordance with the procurement manual and policies.

Health and Safety

obligations

Tauranga City Council Health and Safety (H&S) obligations

must be considered.

All documentation must state the H&S requirements that anysuccessful tenderer/service provider must provide.

For further information, refer to Tauranga City Councils Healthand Safety Policy - DataWorks TCC ref 1336569.




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BEFORE STARTING THE TENDERING PROCESS

What to do first? To assist you with the process, please print out the

Procurement Checklist for Tendering Projects template DataWorks TCC ref 3180493 . This will guide you and/or yourprocurement consultant/project manager in ensuring that youhave the correct audit trail in place, and mitigate the multitudeof tendering process risks that can arise.

Ensure that the project

has financial approval

Before beginning the tendering process, ensure that the

project has financial approval, i.e. the funds have beenapproved in the Annual Plan. If funding has not beenapproved, you need to obtain appropriate delegated authorityusing the business case template.

Determine the reasonsfor the tender

Determine the underlying business reason for tendering, priorto initiating the tendering process.

To proceed to tender, there must be an intention to becomelegally and contractually bound. Do not tender merely to testthe market. Market Research can be achieved through utilisinga Request for Information (RFI) process (guidance iscontained in this manual).

Define the scope andspecification

Define the scope and specification of the goods and/orservices to be supplied before going to the market. Analyse

and question the demand, ensure an accurate utilisationanalysis is carried out.

Decide the objective fortendering

It is very important that the project manager identifies andconfirms the objectives for tendering, because it affects:

preparation of the tender documents;

development of the tendering conditions;

what is required of the tenderers; and

how the tenders will be evaluated and the evaluation criteriato be applied.

Refer to the Procurement Plan DataWorks TCC ref 3180487.

Two envelope approach A two-envelope method is normally considered for high valueand/or high risk procurement activities. This method involvestenderers submitting a separately sealed envelope consistingof the price submission and a separately sealed envelopeconsisting of the non-price submission.

The non-price parts of the tenders or proposals are distributedto the evaluation team members, with the price envelopesremaining unopened and securely stored.

The two-envelope method may be used where Tauranga CityCouncil wants to ensure that price does not influence theevaluation of the non-price (or technical) criteria of a requestfor tender or proposal.

Tauranga City Council may also decide to separate the pricingfrom the non-pricing and have pricing evaluated by an

additional evaluation team (different from the team evaluatingnon-pricing). This is particularly applicable where the skills toevaluate complex financial pricing do not exist in the non-pricing evaluation team.

Tendering objectives toconsider

Tendering objectives to consider include, but are not limited to: encourage fair competition;

maintain effective tenderer market;

best price;

best quality;

enhanced service levels;

economic, environmental and social impacts;

innovative solutions;

demonstrated experience and capability; and




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best value for money.

Tendering forsustainable procurement

During the planning of the tender process the Project Managermust consider:

which products/services are the most suitable on the basisof their sustainability impact;

the effects of the product through its lifecycle including

waste, energy, emissions to biodiversity, health and workingconditions;

end-of-life impacts - this includes special wastes thatpresent particular problems;

Extended Producer Responsibility (EPR) - such schemesrequire the relevant industry to take responsibility for goodsbeyond their point-of-sale and develop or cooperate inschemes that help and better manage the waste involved;

any joint procurement arrangements with other public sectorentities;

a lifecycle approach that scientifically looks at planning,acquisition, operational and disposal;

clear and precise functional and technical specificationsrelated to sustainability.

Refer to Appendix 4 for further guidance on sustainableprocurement.




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APPROVAL LEVELS

Introduction Tauranga City Council employees/contractors, consultants,and procurement agents working on behalf of Tauranga CityCouncil are required to seek appropriate delegated authorityprior to committing Tauranga City Council to any form ofexpenditure.

To find out who has appropriate delegated authority, refer toparagaraph 6 of the procurement policy.

Approval for valuesup to the tenderthreshold

Where procurement will not be an open tender or not meetthe criteria outlined in the table below, for contracts valued upto the tender threshold, Tauranga City Council must maintaina record or prepare a written report providing specificjustification for the contract for the appropriate delegatedauthority prior to committing any expenditure.

Approval for valuesover the tenderthreshold

A decision not to tender a contract with a value above thetender threshold must have a written procurement plan,approved by the appropriate delegated authority, prior toTauranga City Council commencing the process. Theprocurement plan will need to contain an assessmentincluding the reasons why an open, competitive tenderprocess is not the preferred procurement process.

Refer to the Procurement Plan Template DataWorks TCC

ref 3180487.

Approval levels Tauranga City Council outlines overleaf the best practiceprocurement methods for purchases.

Where staff do not adopt these best practice procurementmethods the purchase should be made in accordance with anapproved Procurement Plan. Not all sections of theProcurement Plan will be relevant for all purchases.

A Procurement Plan is required to be completed for alltenders.

This table does not limit staff from deciding to undertake atender process for a contract of lesser value when a tender isdetermined to be the best way of achieving value for money.Where a purchase is made from the existing supplier

database it is not necessary to obtain a quotation.




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ost ProcurementMethod

Purchasing Approach Purchasing Means

N/A EmergencyPurchase

Must be a real threat tolife or TCC property andassets.

The appropriatedelegated authorityas listed inparagraph 6 of theProcurement Policymust approve any

emergencypurchase.

1 - $999 Direct Purchase Direct Purchase. P-Card/PurchaseOrder

1,000 - $9,999 Direct Purchase 3 informal telephone orwritten (email)quotations normallyrequired and recordskept.

P-Card/PurchaseOrder

10,000 -99,999

Request forQuotation

(RFQ)

3 formal written (email)quotations (using TCCapproved RFQtemplate) normallyrequired and recordskept.

PurchaseOrder/Contract

100,000 andbove

ote: CEO canaise this limit to200,000 on aase-by-caseasis

Request forTender/Proposal

(RFT/RFP)

Includes variants suchas:

Open Tender(single/multi-stage)

Closed Tender

Sole Source Tender

Refer to ProcurementProcedures for guidanceon each of the methodsabove.

PurchaseOrder/Contract




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OBTAINING ADVICE ON TENDERS

Contacts For general advice on procurement and tenderingprocesses, contact the City Engineer.

For legal advice on tendering and contracts, contact thelegal department.

Tauranga City Council has developed a number oftemplate terms and conditions for various types ofcontracts, which are available in DataWorks. Check tosee if there is an applicable template for your contract andif so, use it. If you make any substantial changes to thetemplate or no template exists, contact the legaldepartment.

Legal checks fortendering under thetender threshold

Proposed tendering processes/contracts where theestimated value is below the tender threshold may undergoa legal check, if the resulting contract:

could expose Tauranga City Council to significant risk;

has high political and/or commercial interest;

falls below the threshold where the standard form ofcontract is not being used; or

has had requests for changes on the standard formterms and conditions.

Legal checks fortendering over thetender threshold

For proposed tendering processes for contracts in excess ofthe tender threshold, tender documents (tender conditionsand tender documents) should be subject to a legal reviewunless you are using the current template.

Where the tender is based on the standard engineeringcontracts (including the contract for consultancy services)and specific conditions are added, this will not require legalreview. However, if special conditions are used, whichmodify the general conditions of contract, these should belegally reviewed.

Tenders of a similar type that have already been subject tolegal review do not require a further legal check, providedthat the template documents have not been changed.

If the tender is not to undergo a legal review, document thereasons and notify the City Engineer.




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Probity reviews fortendering processes

For significant procurement processes or those that attract adegree of risk, it may be appropriate to seek independent,external probity assurance and advice through a:

probity audit, or

probity advice.

Contact the relevant delegated authority to discuss further.




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NOTIFICATION

Public advertising All tenders in excess of the tender threshold must be notifiedon the GETS and LG Tenders website. The advertisementshould contain the following:

a general description of the service being tendered;

contact details for uplift of documents; and

closing time, date and place for receipt of tenders.

The Contracts Administrator can assist you with preparingadvertisements.

Notification and filing Once a contract with a value in excess of the tender thresholdhas been signed with a supplier, the original contract is to besent to the Records Department for filing and included in thecorporate contracts register.




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EMERGENCY PROCUREMENT

Introduction Emergency procurement is purchasing undertaken to

meet the critical requirements of an unforeseensituation. This process is an exception rather than arule.

What constitutesemergency procurement?

Emergency procurement must only be used when it isimpractical to purchase goods and/or services within therequired timeframe by using the normal purchasing

procedures, including:

when life or property are at risk;

in cases of disaster relief; and

when operational capacity would be severelyaffected by non-supply in the short term.

NOTE: Urgency does not necessarily constitute anemergency. Where a purchase is urgent, but not anemergency, normal rules for procurement should befollowed.

Approvals The appropriate delegated authority as listed inparagraph 6 of the Procurement Policy must approveany emergency purchasing which is to be made in

accordance with this provision.




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APPROVAL OF A CLOSED TENDERING PROCESS

Closed tender as opposedto open tender

In principle, Tauranga City Councils tender processesshould be fully contestable, especially tenders abovethe tender threshold, i.e. open tender processes.

However, in some cases the extra expense of an opentendering process may not be justified, and a closedtender process is more appropriate.

A closed tender may be appropriate if any of thefollowing conditions are met:

the total value of the contract is under the tenderthreshold;

a limited number of competitors exist in the market;

nothing is to be gained by allowing suppliers fromoutside the immediate geographical area;

negative cost benefit analysis this may occur ifthere has been no movement in prices since theprevious tender process; or

there is a need for the procurement to beconfidential.

Requesting approval for aclosed tender

To request approval for a closed tender, the ProjectManager needs to produce a procurement plan.

For tenders below the tender threshold this isconsidered best practice. If a closed tender isconsidered appropriate for requirements above thetender threshold the request to use a closed tenderprocess should be detailed for approval in theprocurement plan.

The procurement plan should provide:

background information outlining the:

market research carried out;

information gathered;

methodology and approach taken; and

expertise and experience of potentialsuppliers.

the desired tendering outcomes and objectives;

reasons for not using an open tendering process;and

the proposed alternative procurement process.

NOTE: For audit purposes, the procurement planshould be filed on the tender process file.




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APPROVAL FOR SELECTIVE (SOLE-SOURCE) PROCUREMENT PROCESS

Selective (sole-source /direct appointment)procurement, as opposed toclosed or open tender

There are instances when there is a requirement toapproach a single supplier without inviting competitionfrom other suppliers to source goods and/or services.However, this is an exception rather than a rule andshould be fully justified, documented and approved bythe appropriate delegated authority.

In these cases, the Project Manager determines fromconducting market research if any of the conditionsbelow are met:

urgency;

specialised nature of the goods or services;

availability of support services or spare parts;

opportunity to extend existing or recent contracts,or to use such contracts as the basis for anegotiated contract;

practicality of tendering for the specific work;

consequential or indirect costs detrimentallyaffecting Councils position;

sufficiency of capability of the private sector orother potential suppliers or partners;

necessity of retaining in-house capability;

existence of excessive risk in contracting; or

likelihood that key community partnerships will besignificantly adversely affected.




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WHAT TENDER DOCUMENT SHOULD I USE?

Introduction The process flowchart and next few pages of thismanual have been designed to assist you with theimportant decision as to identifying and selecting themost appropriate tender documents for yourrequirements.




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TENDERER SELECTION METHODOLOGIES

Tenderer SelectionMethodologies

The following tenderer selection methods may be used, asappropriate, for Council procurement activities:

Direct appointment

Lowest price conforming

Purchaser nominated price (target price)

Weighted attribute

Price quality

Quality based (Brooks Law).

For further information, refer to appendix 3.




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REQUEST FOR INFORMATION (RFI)

Introduction An RFI is used when more information is required toassist Tauranga City Council to write accuratespecifications to use in a subsequent single or

multi-stage tendering process, and/or to provide market

insights or background material for a business case.

Using the RFI process The RFI is a tool that is used to gather information fromthe market. It is normally used to obtain technicalinformation about a product - or service -based project.An RFI is not evaluated in the sense of selecting onesupplier over another. The information received is usedto produce detailed specifications and requirementsupon which to base a subsequent tender process.

Refer to the RFI template DataWorks TCC ref3180483.




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REGISTRATION OF INTEREST (ROI) / EXPRESSION OF INTEREST (EOI)

Introduction An ROI or EOI is usually part one of a multi-stage

tendering process. They are commonly referred to aseither an ROI or EOI. Tauranga City Council will usethe terminology of ROI when referring to this stage ofthe tender process.

ROI is used to identify prospective service providers ofgoods and/or services, and to create a shortlist by

asking for responses to specific questions concerningexperience, company capability and company capacity.The process shortlists a manageable number ofproposers who could all, theoretically, be capable ofproviding the required goods and/or services.

In some situations an ROI can be used to immediatelyproceed to a contractual arrangement with the preferredtenderer. However, markets generally view ROIs as ashort listing process. To accommodate the directcontracting option the ROI document needs to clearlystate that a supplier may be chosen from the ROIprocess and contain the key components (e.g. reservedrights that we would normally expect to see in anRFP/RFT document).

Using an ROI Use an ROI prior to the Request for Proposal (RFP) or

the Request for Tender (RFT) process, to:

identify how many organisations are capable ofproviding the specific goods and/or services required;

obtain feedback to assist with the solution scope ofan RFT process;

find out which organisations are capable of providingthe goods and/or services within a specifiedtimeframe;

find organisations that are capable of meeting theneed, possibly in innovative ways when faced with anew situation; and

shortlist tenderers capable of providing the goods or

services, and invite them to respond to a moredetailed RFP or RFT process.

Recommended closing date: four weeks after release ofthe ROI document.

Refer to the ROI template DataWorks TCC ref3180482.

When not to use an ROIprocess

It is not compulsory to use the ROI stage of the processand Project Managers could go straight to either anRFP or RFT process. Refer to the template documentswithin this manual in respect of RFPs and RFTs.




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REQUEST FOR PROPOSAL (RFP)

Introduction RFPs invite prospective tenderers to offer solutionsbased on a statement of a business need.

Using an RFP The RFP process allows the tenderers to be innovativeand offer different approaches and pricing options toaddress the solution that Tauranga City Council islooking to achieve. RFPs offer greater flexibility fromtenderers than that offered by an RFT process. You can

use an RFP to:

identify how many organisations are capable ofproviding the specific goods and/or servicesrequired;

find out which organisations are capable ofproviding the goods and/or services within aspecified timeframe;

find organisations capable of meeting the need, inpossibly innovative ways;

find out how organisations propose to meet yourrequirements; and

discover the market price for your requirements.

Recommended closing date: four to six weeks afterrelease of the RFP document.

Refer to the RFP template DataWorks TCC ref3180481.

When not to use an RFPprocess

RFPs should not be used if you have prescriptiverequirements to use an RFT or when flexibility is not anadvantage.




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REQUEST FOR TENDER (RFT)

Introduction An RFT process invites prospective tenderers to make

offers based on a specific and well-defined statement ofrequirements.

Using an RFT An RFT is a relatively rigid and prescriptive process,and is to be used when Tauranga City Council knowsexactly what it wants to purchase and the outcomes arecapable of being fully specified.

You can use an RFT to:

identify organisations that are capable of providingthe specific goods and/or services required;

discover organisations that are capable of providingthe specified goods and/or services within a specifiedtimeframe; and

allow the selection of the best offer and proceed tocontract;

discover the market price for your specified goodsand/or services.

Recommended closing date: four to six weeks after

release of the RFT document.

Refer to the RFT template DataWorks TCC ref3180480.

When not to use an RFT The RFT process should not be used if the specificrequirements/specifications have not been determinedprior to approaching the market.




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REQUEST FOR QUOTATION (RFQ)

Introduction An RFQ is used when the goods and/or services areless than the tender threshold. It is a quick method touse when determining availability, price and supplyterms.

How to use an RFQ When using the RFQ method, Tauranga City Councilmust normally seek a minimum of three written quotesfrom organisations that can supply the required goods

and/or services, and document the process completed.

Refer to the RFQ template DataWorks TCC ref3180484.

When not to use an RFQ An RFQ should not be used if the total value of thegoods and/or services is more than the tenderthreshold, unless approved by delegated authority.




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PREPARING TO TENDER

Tendering templates There are several tendering templates available and it isimportant to read the section on What Tenderdocument should I use? before selecting yourtendering process.

Consider the specific conditions and objectives for yourtender process and ensure that they will be clearlystated in the appropriate template.

Contract number All Tauranga City Council tenders above the tenderthreshold must be released with a contract number. Toobtain a contract number, please contact theInformation Integrity Specialist (Information ServicesTeam).

Determining an evaluationpanel

For each tender process, a tender evaluation panelneeds to be set up, and should consist of individualswho have an adequate level of competence in the areabeing tendered.

A Chair of the Panel should be appointed to resolve anydisputes between panel members and to steer theevaluation process through to its conclusion.

Evaluation methodology

and criteria

The evaluation methodology, criteria and weightings

must be agreed and approved by the evaluation panelprior to the release of the tender documents to potentialtenderers.

Refer to the Evaluation Guidelines for TenderEvaluation Panel for more information DataWorksTCC ref 3607161.

NOTE: This is a standard approach for evaluation. Forother evaluation methods, please refer to the Office ofthe Auditor-Generals Statement of Good PracticeGuidelines 2001/2008 and any subsequent update ofthis guidance.

Conflicts of Interest andConfidentiality Declarations

Evaluation panel members and individuals whoadvise/assist with the tender process are to signConflicts of Interest and Confidentiality Declarations

identifying any potential conflicts of interest that theymight have, prior to the commencement of the tenderprocess.

Should any conflicts be declared, the project sponsorshould be notified, an impact assessment carried out todetermine the effect of the potential/actual conflict onthe integrity of the tender process utilising the guidanceon conflict of interests issued by the Office of theAuditor-General (available at http://www.oag.govt.nz/)and the conflict managed as follows:

individual released from the tender panel for amaterial conflict; or

conflict not material - individual continues toparticipate and mitigating action is recorded and

signed off by the project sponsor; or

register established and potential conflicts declaredand mitigated throughout the process.

Tenders for ElectedMembers

If a tender is received from an Elected Member, specialprovisions under the Local Authorities (MembersInterests) Act 1968 apply. The tender submission willneed to be discussed with the Democracy Manager.Further information on the process is available from theOfficer of the Auditor-Generals website.

Tenderers Tenderers must be asked to disclose if they are awareof any potential conflicts of interest between their firmand Tauranga City Council. If this is the case, theymust provide the necessary details to Tauranga CityCouncil.

Refer ROI, RFP, RFT documents.

Tender responses When preparing tender documents, advise tenderers tosubmit their responses:




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by a specific closing date and time; and

enclosed in a clearly-labelled, sealed envelope, to aspecific address.

Refer to the appropriate tender documents

Tender register The Information Services team holds a tender registerto record all responses received.

The register contains information such as the:

tenderers name and contact details;

the tender for which they are tendering; and

whether the tender is compliant with all informationrequested and therefore, can be received andevaluated.




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Gifts/hospitality/incentives All Tauranga City Council employees/advisors are to

declare any offers of gifts/hospitality/incentives receivedfrom external parties during the tender process, andwhether they were accepted or declined. Suchdeclaration shall be made to the relevant GroupManager.

Refer to Tauranga City Council Sensitive ExpenditurePolicy.




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CONTRACT FILE

What must the file contain? The Project Manager must create a contract file, which,as a minimum, must contain (where relevant):

a secure tender file containing all confidentialtender/evaluation documentation;

all material published by Tauranga City Council in

relation to the tender process;

all material submitted by tenderers;

a tender project plan listing the main milestoneevents;

a procurement plan;

the tender evaluation methodology and criteria;

a copy of the written instructions given to theevaluation panel members to guide them in applyingthe evaluation methodology;

minutes of all meetings held by the evaluation panel;

written Conflict of Interest and ConfidentialityDeclarations by individual members of the evaluationpanel and those with access to tender processmaterial together with the impact assessments oneach actual/potential conflict and related mitigatingaction;

minutes and other details of all meetings,presentations, telephone calls, site visits and anyother correspondence between the tenderers andTauranga City Council during the tendering process;

all reference-checking correspondence relating totenderers;

notes and comments associated with the scoring;

detailed explanations of any cost estimates orjudgements made about any tenders as part of theevaluation process;

the panels final evaluation, signed and dated by allevaluation panel members; and

the recommendation to award, signed by theappropriate delegated authority.

External review of thecontract file

The contract file must represent a clear audit trail of thedecision-making process, and clearly demonstrate logic(i.e. the tendering process followed and all aspects inthe tender considered). This then enables it towithstand an external review, if carried out.




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ELECTRONIC CAPTURE OF PROJECT AND CONTRACT RECORDS

Purpose The purpose of this section is to advise the rules

necessary to identify, register, maintain and protectrecords and documents of continuing value to TaurangaCity Council into DataWorks, to ensure acceptableproject and contract related electronic document andrecords management occurs at Tauranga City Council.Responsibilities for accurate recordkeeping are set outin Appendix 5. These include guidelines for Tauranga

City Council staff relating to Contractor and Consultantrecordkeeping requirements and recordkeepingguidelines for Tauranga City Councils Contractors andConsultants.

Legislative requirements The Council is required by the Public Records Act 2005to keep a full and accurate record of all of its activities inan accessible form. The Council uses DataWorks tofulfill this obligation, therefore, it is important to ensurethat all your tender documentation is registered inDataWorks (regardless of whether the document isconfidential or not).

Audience Applies to all Tauranga City Council employees,consultants and contractors (where appropriate).

DataWorks setup Project Index

A project index should be created in DataWorks, assoon as possible.

Projects can be created in DataWorks by the InformationIntegrity team, or nominated person, at any time. Pleasecomplete the request form (DataWorks TCC ref3259745) or contact the Helpdesk for further details.

Contract IndexContracts can be created in DataWorks by theInformation Integrity team, or nominated person, at anytime. Please complete the request form (DataWorksTCC ref 3259744) or contact the Helpdesk for furtherdetails.

Title/Description To ensure that the records in DataWorks can beretrieved quickly and efficiently, it is vital that they are

well titled. Metadata is information that describes thecontent, context, quality, condition, origin and othercharacteristics of documents.

It is structured information that describes, explains,locates, and otherwise makes it easier to retrieve anduse our information resources. It represents the who,what, when, where, why and how of our documents.

For standards and electronic titling conventions refer toManaging Information Effectively. (DataWorks TCC ref2154206)




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CONDUCTING THE TENDER

Introduction Tauranga City Council must: take care when conducting a tender to avoid

inadvertently creating a premature contract during theprocess, or unfairly or inadvertently discriminatingagainst any potential tenderer.

be aware of public law considerations, such as:

Local Government Official Information andMeetings Act 1987;

The Commerce Act 1986;

The Fair Trading Act 1986;

Public Records Act 2005;

Local Government Act 2002;

Local Government Act 1974 (whereapplicable);

Local Authorities (Members Interests) Act1968.

Follow the tender process rules, procedures and anyevaluation methodology and criteria specified in thetender documents.

Ensure that any additional material informationrelating to the tender documents is conveyed to alltenderers in a timely manner.

Process contracts Employees, contractors and consultants managing aprocurement process for Tauranga City Council shouldtake care not to inadvertently create a process contract.

Process contracts are contracts governing the tenderingprocess. These contracts set out the rules to be followedby Tauranga City Council and tenderers up to the formalcompletion of the tender process. This is normally the

point when a successful tenderer/s is chosen or allresponses are rejected by Tauranga City Council.

The issue of process contracts becomes relevant whenan unsuccessful tenderer challenges the processfollowed. Should this challenge reveal that theadvertised tender process was not followed, theunsuccessful tenderer may attempt to claim damages forany financial losses incurred in responding to the tenderand (sometimes) losses for future profits related to thecontract.

It is important that Project Managers rigorously followthe rules of the procurement process as advertised andagreed.

All Tauranga City Councils templates for ROI, RFP and

RFT documentation contain the following clauses and itis important that these are not removed from thetemplate documentation:

the reserved right to depart from the procedure;

the right to negotiate with other parties;

the right to reject or consider non-complyingtenders; and

specific guidance stating that the tender documents(ROI, RFP/RFT) contain no contractual offer and noguarantee exists relating to any volume, value or theplacement of any orders related to the tenderdocument (ROI, RFP or RFT).

Please consult Tauranga City Councils legaldepartment for further advice or assistance withProcess Contracts.

Requests for additional Tauranga City Council should ensure that it:




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information and clarification gives consistent answers to all questions;

distributes all material answers to all tenderers byway of Notice to Tenderers (NTT); and

treats all tenderers in a fair and equitable manner.

All communication with potential suppliers should be inwriting and issued by the Authorised

Representative/Project Manager (who is identified as thesingle point of contact between potential tenderers andTauranga City Council during the tender process).No informal communication (such as telephoneconversations, individual meetings etc) should beentered into between the Authorised Representative/Project Manager and any tenderer or potential tenderer.

If briefings are to be utilised to educate potentialtenderers of the intended procurement, notice of theintended briefing should be distributed through GETSand LG Tenders in the form of a Notice toProposers/Notice to Tenderers document. Briefingsshould be conducted by the AuthorisedRepresentative/Project Manager, minutes of the briefingshould be taken by Tauranga City Council anddistributed to all tenderers through a Notice to Tenderers

form and posted on the GETS and LG Tenderssystems. Should a decision be taken not to distributethe minutes of the briefing the reasons for this should beclearly documented.

Refer to the Notices to Tenderers template DataWorks TCC ref 3180445.

Extensions of time fortenders

The tender period may be extended if there is nodiscrimination or unfairness to other tenderers.

Tauranga City Council should not agree to a request byan individual tenderer to extend the time for submittingtheir tender, except in exceptional circumstances. Insuch a case, the extension should be advised by meansof an NTT, distributed to all tenderers with sufficientnotice to enable all to benefit equally.

Receiving and registeringtenders

Upon advertising a contract for tender a copy of theadvertisement showing contract number and date andtime of closing must be sent to Records & InformationServices (Records Analyst), the Contracts Administrator,the Ground Floor Receptionist and the Information Officer(Copy Centre).

Tenders must be received in a locked tender box.However, if received by the mailroom or reception,tenders must be delivered unopened to the TenderBox. It is the responsibility of the ContractsAdministrator to inform the mailroom and reception thata tender is closing, well in advance of the closingtime/date.

Any tenders received prior to the tender closingtime/date are to be securely locked away in the Tender

Box until the closing date and time for receipt oftenders.

The Ground Floor Receptionist will ensure the TenderBox on the Ground Floor is closed at 2:00pm on the duedate.

As well as opening the box the Contracts Administratorhelps with the opening and recording of tenders on theday of closure.

Records and Information Services control access to thetenders box. The tender box key is kept in the safetogether with the keys of the locked cabinet containingthe tenders register. If a tender is too large for the tenderbox it is to be delivered to Records and InformationServices who will lock it in the file room until such time as

the tender is opened.

After receiving notification of tender closure, a copy isplaced in date order on a green ring binder in the contractcupboard in the safe. This is carried out by Records and




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Information Services staff.Tenders always close at 2:00pm and the Records andInformation Services staff member must liaise with theContracts Administrator at the Ground Floor Receptioncounter on the ground floor at that time.

A note of the tender number(s) closing on that date will berequired and these are the only documents to beremoved; all other documents/tenders remain in the

tender box until their tender number is closed forprocessing.

A register of tenders is also kept (locked in safe) in the fileroom and this is written up detailing the name of thecontract/project, method, i.e. one envelope or twoenvelope, name and address of the company submittingthe tender, price, alternate price and any commentsnecessary.

Each tender/contract/project must have a separate pageor pages within the register.

One person will open the tenders and the second personlist the details. On completion the details should bechecked before the page is ruled off, signed and datestamped with the contract stamp.

The tender contract administration date stamp kept withthe tender register should also be changed early on thedue date to avoid wasting time processing tenders.

Tenders should be counted and agreed when they areremoved from the tender box, each tender kept separatefrom the other and processed separately.

The page of each tender stating price tendered andaddress of tenderer must be date stamped and initialledby both people processing the tenders. Tenders shouldonly ever be opened in a quiet private room, with nopossibility of public access or disturbance.

When all entries are processed the tender can be ruledoff, date stamped and signed by both operators ascompleted.

Likewise no faxed tenders will be accepted either, unlessthey have been sent to a local agent outside Councilwhere they are properly processed, placed in a sealedenvelope and arrive with all other tenders before 2.00 pmon day of closure.

Having processed one tender, any other tenders to closeon the same day must be recorded as above, one tenderat a time.

If the tender process is according to the New ZealandTransport Agency Competitive Pricing Procedure, theprocess will be different. The envelope opened willcontain two separate envelopes labelled "Envelope One"and "Envelope Two". Envelope One will contain thename, address and work experience of the tenderer - it

should not contain a tendered price. List the names andaddresses only of all tenderers and retain Envelope Twoin the locked cupboard in Records until advised by thedepartment handling the contract that all criteria fortendering have been met. At this point those peoplequalifying to tender will have Envelope Two opened, thetender price and deposit recorded and cheques receiptedas in other tenders.

It is important when using the two envelope procedure tomatch Envelope Two clearly to the tenderers details inEnvelope One. Envelope Two must be date stampedacross the envelope seal to show that it has not beenopened.

At the completion of tender processing the tendersregister should be photocopied for:

the Project Manager or Authorised Representative;and

the Contracts Administrator.




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The copies must be placed in inter-office envelopes andaddressed as above.

When all details are complete the tenders must be takento the Project Manager or Authorised Representativehandling the contract and a signature acquired to releasethe tender document. Copies of the tender register to beleft with the above named. The Contracts Administratorcan accept the tender on behalf of the above.

The tender register is to be kept locked in the cupboard atall times when not in use.

If a late tender is received, the Project Manager is to benotified. The Project Manager will then follow theprocedure for late tenders.

Faxed or e-mailed tenders Faxed or e-mailed tenders will not be accepted unlessspecified in the tender documentation.

Amendments after closing Amendments to tenders submitted, or additionalinformation or comments, cannot be made to thesubmitted tender response after the closing date andtime.

This does not include clarifications sought by TaurangaCity Council during the evaluation process.

Late tenders Late tenders or proposals will only be accepted byTauranga City Council in exceptional circumstances(the reason late tenders should not be received is thiscould materially prejudice other tenderers).

As a general rule, late tenders or proposals should onlybe accepted if:

Tauranga City Council can be certain that there is nopossibility of unfair advantage;

the late participant has no knowledge of othertenders or proposals; and

the late tender or proposal conforms in all otherrespects to the criteria set out in the tender or

proposal documents.

NOTE: Late tenders can only be accepted or rejectedwith the approval of the Chief Executive.

Confidentiality The information provided by tenderers to Tauranga CityCouncil should be kept confidential at all times, unlessrequired under legislation (such as the LocalGovernment Official Information and Meetings Act1987) to release certain information.

Security of tenders Tauranga City Council should ensure that: tenders remain closed and stored securely until the

closing time and date; and

once all tenders are opened and registered, they are

appropriately stored at all times.




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Tender receipt letter Once all Tenders/Responses have been registered as

opened, confirmation may be sent to allTenderers/Respondents acknowledging the receipt oftheir tender response.

Tender Receipt Letter template is available and may besent electronically.




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EVALUATING THE TENDER

Evaluation process The evaluation process must be fair, impartial andcapable of withstanding a full external review or audit. Itmust not deviate from the criteria stipulated in thetender documents or from Tauranga City CouncilsEvaluation Methodology and Guidelines.

The evaluation is usually conducted independently by

the members of the evaluation panel, then consolidatedand supported by panel discussions and, ideally, apanel consensus on the outcome.

NOTE: Use the same Evaluation Form template for alltender responses - DataWorks TCC ref 4085692.

Evaluation guidelines Each member of the evaluation team is to receive acopy of the Evaluation Guidelines, in conjunction withthe tender responses received DataWorks TCC ref3607161.

Evaluation form The Evaluation Form must identify key comparisonfactors/evaluation criteria that will be used to assesseach tender response. The Evaluation Form is to becompleted for each tender response DataWorks TCCref 3180474.

Evaluation panelsresponsibilities

Each member of the tender evaluation panel mustcomplete tender evaluations independently, prior to thepanel meeting to review the tender responses and theinitial evaluation scores.

Evaluation meeting The evaluation meeting is held so that each member ofthe evaluation panel can provide their scores to theProject Leader/Facilitator. Each member will be giventhe opportunity to discuss their scoring with the panel,particularly focusing on any wider variances or outlyingscores. The evaluation panel members may amendtheir scoring to reflect further information obtainedduring the discussion with other panel members duringthe evaluation meeting.

NOTE: The Project Leader/Facilitator is to document all

evaluation meetings and prepare the agreed evaluationreport.

Clarification of tendersubmissions

During the evaluation process, there may be a need toseek clarification from tenderers on their submission.

This is a formal process, and must be conducted inwriting. Tauranga City Council will document the pointsfrom the tender submission that need clarification andrelease it to the tenderer for response within a certaintimeframe. The response will then be used to assistwith the evaluation of the tenderers submission.

Shortlisting tenderers fromROI process

Tauranga City Council can shortlist from an ROIprocess and invite shortlisted tenderers to respond toan RFP/RFT.

You must seek approval to the shortlist from theappropriate delegated authority prior to informing theROI tenderers of the outcome of the ROI process.

NOTE: You must notify tenderers in writing of theoutcome of the ROI process.

Refer to ROI Shortlist Letter Template DataWorksTCC ref 3180440 or ROI Decline Letter Template DataWorks TCC ref 3180439.

Shortlisting tenderers fromRFP/RFT process

Once the RFP/RFT process has been conducted, theevaluation panel can decide to shortlist any tenderers.From the RFP/RFT stage, the shortlisted tenderers canbe invited to present their tender to the evaluationpanel.

You must seek approval to shortlist from the appropriatedelegated authority prior to informing the RFP/RFTtenderers of the outcome of the tendering process.

NOTE: You must notify tenderers in writing of theoutcome of the RFP/RFT process




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Refer to RFP/RFT Shortlist Letter Template DataWorks TCC ref 3180438 or RFP/RFT ShortlistDecline Letter Template DataWorks TCC ref 3180437.

Presentations by tenderers Tauranga City Council may, as part of its tenderevaluation process, invite each tenderer or shortlistedtenderer to make a presentation to expand on and/orclarify its tender. This also allows the panel to test thecredibility of the submission. Tenderers should be

informed in the tender documents whetherpresentations are likely to be held.

If inviting tenderers to make a presentation, thenTauranga City Council can (as an option) limit thenumber of personnel attending the presentations to:

those that have contributed to the preparation of thetender; and

those that will have an involvement in providing thegoods or services if their tender is successful.

It is important that Tauranga City Council treats alltenderers fairly and equitably in relation to theirpresentations. Each tenderer should be provided withsufficient notice of the time and date, and the same

presentation brief and allotted amount of presentationtime. The evaluation should primarily assess thecontent of the presentation, rather than the method orform of presentation. Notes of these meetings shouldbe kept on the contract file.

Reference checks Tauranga City Council should ensure that, as part of thedue diligence of the tenderers, all reference checks areconducted and noted in writing. It is preferable thatreference checks are conducted by the Project Managerprior to the evaluation meeting.

Final evaluations The evaluation panel should meet to reassess the initialevaluation scores and make any changes they seenecessary based on the presentations.

All reasons for amending any scores should berecorded and kept with the evaluation documents.

Companies Office search Prior to finalising the contract, a check should be madeof the company name the tenderer gave in theirsubmission against the register of companies held bythe Companies Office. This is important as sometimescontractors submit tenders in their trading name or thename they commonly refer to themselves as. Thecontractors name on the contract documentation mustbe the name that appears on the companies officeregister. A company search can be done free of chargeon the Companies Office website atwww.business.govt.nz/companies.




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APPROVAL PHASE

Approval of preferredtenderer

All recommendations to select a preferred tenderer areto be signed off by the appropriate delegated authority.

The recommendations should follow the format in theTender Evaluation Memo Template DataWorks TCCref 3607073. This ensures that the delegated authorityhas sufficient information to understand the goods or

services sought, the tender and evaluation process, andthe rationale for the recommendation.




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ADVISING TENDERERS OF THE OUTCOME

Introduction All tenderers are to be notified of the outcome of thetender process for which they have submitted a tender.

Notifying unsuccessfultenderers

Each unsuccessful tenderer will be: informed that their tender was not successful;

provided with the name and overall price of the

successful tenderer (but not the make-up of thatprice), provided that this has been specifically statedin the tender documents;

provided with their attributes and the range of othertenderers attributes;

provided with the number of tenderers;

provided with the price range.

Refer to the RFP/RFT Decline Letter Template DataWorks TCC ref 3180435.

Notifying the successfultenderer

The successful tenderer shall be:formally notified of the outcome of the evaluation by wayof a letter of acceptance following formal sign off bydelegated authority;

provided with their attributes and the range of othertenderers attributes;

provided with the number of tenderers;

provided with the price range.

Any acceptance should always be subject to successfulclarifications/negotiations.

Care needs to be taken to avoid prematurely creating acontract.

Refer to the RFP/RFT Acceptance Letter Template DataWorks TCC ref 3180436.

Debriefing tenderers Tauranga City Council has an obligation to accept arequest for a debriefing session to unsuccessfultenderers. It is at the sole discretion of the unsuccessfultenderer if they would like to be debriefed.

Should an unsuccessful tenderer request a debriefingsession, then Tauranga City Council should provide thefollowing information:

a summary of their individual evaluation;

their individual score; and

the advantages of the tender that was accepted (at ahigh level).

If the debrief is in written format, this shall be reviewedby the legal team prior to release.

What does Tauranga CityCouncil do with thetenders?

All original copies of the tenders remain the property ofTauranga City Council. Some tenderers ask for theirtender submissions to be returned. It is at the solediscretion of Tauranga City Council if it wishes to returnthe original submissions to the tenderer. An increasedrisk in willingness of tenderers to initiate litigation meansthat copies of tender documentation must be retained.

If Tauranga City Council decides to return the tendersubmissions to the tenderers, Tauranga City Councilmust ensure that no comments from the evaluationpanel have been inadvertently written on the tendersubmissions.

Unsuccessful tenderers documentation must be filedwith Information Management and kept for 7 years.




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WITHDRAWING FROM OR CANCELLING THE TENDERING PROCESS

What if a tenderer wants towithdraw from the process?

If a tenderer wants to withdraw from the tenderingprocess after they have submitted a tender, they are tonotify Tauranga City Council in writing.

Tauranga City Councilsright to suspend or cancel

Tauranga City Council reserves the right to suspend orcancel the tendering process.

Suspending or cancelling a tender process can be

undertaken at any stage if:

the original requirement/specification for the tenderhas changed significantly since tender documentswere made available;

all the tenders received do not comply with TaurangaCity Councils tender request;

the integrity of the tender process may becompromised; or

the tenders received cannot be adequately or fairlycompared or evaluated during the evaluation process.

If this occurs, then Tauranga City Council must adviseall tenderers in writing.

NOTE:

1. It is imperative that the clause relating to TaurangaCity Councils right to suspend or cancel the tenderprocess is included in the tender documents to avoidany legal complications.

2. There are legal implications in suspending orcancelling a tendering process. Discuss TaurangaCity Councils reasons with the appropriatedelegated authority prior to embarking on this option,as legal advice may be required.




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DUE DILIGENCE

Introduction Due diligence provides Tauranga City Council with anopportunity to test a tenderers proposed expectationsand understanding of the procurement.

Is due diligence necessary? Formal due diligence is normally used for complex,high-value procurements or disposals. It is usuallyunnecessary for simple, routine procurements.

The tender documents should state whether duediligence may be undertaken.

Issues to be addressedduring a due diligenceprocess

The tenderers ability to deliver the goods or servicesfor the price tendered. This is particularly importantwhere the tenderer submits a comparatively lowprice;

the terms and conditions of any proposed financingstructures, including the certainty of funding and thetenderers ability to service the debt;

the financial viability of the tenderer;

the experience of either the tenderer or any proposedsub-contractor in providing similar goods or services;

credit and/or reputation checks (reference checks);

the qualifications or credentials of key personnel (e.g.obtaining curricula vitae and meeting with individualsto discuss their relevant experience andunderstanding of Tauranga City Councilsrequirements);

the adequacy of the tenderers proposed approach tothe procurement, and whether it is likely to meet thekey objectives;

site visits to check the adequacy and condition ofinfrastructure, equipment and resources that will beused in meeting Tauranga City Councilsrequirements; and

examination of work or product samples.




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POST-TENDER NEGOTIATIONS/CLARIFICATIONS

Introduction Post-tender negotiations/clarifications can be an

effective risk management tool. Their primaryobjectives should be to:

test the understandings and underlying assumptionsthat have influenced a tenderer in preparing itscostings/prices. The clarifications process shouldrectify any false assumptions;

achieve operational refinements or enhancements.Care should be taken that this does not lead to aprice reduction exercise which is unethical;

finalise contract details.

Negotiations can only be carried out if contemplated inthe tender document.

The negotiation/clarificationteam

The skills and experience of the negotiation/ clarificationteam should be commensurate to the value, risk andcomplexity of the procurement.

Negotiations/clarificationsto be conducted ethically

Tauranga City Council should ensure that: all negotiations/clarifications are conducted ethically;

and

it does not potentially disadvantage other tenderersby negotiating an agreement that is materiallydifferent in scope from that proposed in the tenderdocuments.

What if negotiations/clarifications fail?

Unfortunately, at times, negotiations/clarifications dofail. Should the outcome of the negotiations/clarifications be unsatisfactory, Tauranga City Councilshould reassess its position and decide whether itshould negotiate with the next highest-ranked tenderer(subject to the approval of the evaluation panel and theappropriate delegated authority).

Recording thenegotiations/clarifications

All negotiation/clarification meetings and any changesto the contract should be recorded in writing.

By the end of the negotiation/clarification process,Tauranga City Council and the supplier must have thesame expectations about the obligations of each partyand how the contract will subsequently operate. Allsubstantive issues must be agreed and the contractamended to reflect the agreed direction.




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THE CONTRACT

Introduction A contract is a legally binding agreement (usually inwriting) committing two or more parties to carry outcertain activities, by an agreed future date, for anagreed price.

The contract The contract document should: be sufficiently comprehensive to meet the objectives

of the procurement;

clearly outline the responsibilities of the contractor;

reflect the full specification of the goods or services;

be consistent with the conditions specified in theprocurement process;

define and protect the rights and obligations of allparties;

include contract performance clauses. These shouldbe realistic and align with the requirements listedthrough the tender process documents;

set realistic timeframes to measure supplierperformance. These can range from informal supplierreviews to formal supplier appraisals;

specify the term of the contract; and

include set prices or rates as appropriate.

Awarding the contract The form of tender and letter of acceptance creates acontract on the basis of the tender documentation andtender submission. Where your form of tender and/oracceptance letter does not create a contract, you mustensure that your formal contract is signed by all partiesprior to contract commencement.

Filing of final contract The original signed copy of the contract must be sent toInformation Services for scanning into DataWorks and

filing in secure storage.




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REGISTERED OR QUALIFIED SUPPLIER LISTS

Pre-qualified suppliers Pre-qualification is a method where Tauranga CityCouncil assesses suppliers of particular goods and/orservices against predetermined criteria and then invitesonly those suppliers who satisfy the pre-qualificationcriteria to respond.

Suppliers that are successful in meeting the pre-qualification criteria are included on a database

maintained by Tauranga City Council. Pre-qualificationdoes not form a contractual or legal relationshipbetween Tauranga City Council and the pre-qualifiedsupplier. Essentially, the supplier has simply metpreliminary standard criteria and will be required to meetother evaluation and performance criteria as part of aprocurement process.

When Tauranga City Council makes use of pre-qualifiedsuppliers a current list must be made publicly available,through the GETS and LG Tenders systems. Othersuppliers, currently not on the list, may apply to join thelist at any time. TCC must ensure that all qualifyingsuppliers are included in the list within a reasonableperiod of time, taking into account the conditions forparticipation and the need for verification.

When compiling pre-qualified supplier lists TaurangaCity Council will need to provide:

information required from suppliers must beconsistent (no one supplier provided any additionalinformation) and correct;

the method that will be used to evaluate pre-qualifiedsuppliers must be included on the list;

information on who will approve a suppliers inclusionon the list;

the method that will be used to maintain the list;

how suppliers will be informed of the results;

documentation and recording of the results of theprocess (and the need for retention of documentationfor audit and probity purposes).




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PANEL CONTRACTS

Panel contracts Subsequent to a competitive tender process, TaurangaCity Council has the right to establish and award acontract to a panel of suppliers from whom they maypurchase goods or services at their sole discretion.

Tauranga City Council should ensure that the contractdoes not contain an exclusive right to supply from anyof the successful tenderers, nor guarantee that they will

receive requests to supply goods or services fromTauranga City Council as a result of this contract.

All tender documentation should clearly state whereTauranga City Council is seeking to engage a panel.Documentation should include:

how many suppliers will be on the panel if this isundetermined, the documentation should state howthe evaluation team will decide this;

the criteria Tauranga City Council will use to evaluatesuppliers against each other and against the publicentitys needs;

what will be required of suppliers in terms of servicelevels, response times and other performance

measures;

how Tauranga City Council will engage panelmembers to do particular work; and

the circumstances that may lead to a supplier beingremoved from a panel, such as insolvency.




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EXCEPTIONS TO THE OPEN TENDERING REQUIREMENT

Introduction In some instances Tauranga City Council is not

required to openly tender its requirements for goodsand/or services.

There are strict rules around what constitutes anexception to openly tender. Exceptions are not to beused to avoid competition, protect domestic suppliersor discriminate against any domestic or foreign

supplier. Where appropriate, Tauranga City Councilmay award contracts by following the sole source orclosed tender options outlined in this procurementmanual. Any exception to an open tender must beapproved by the delegated authority.

Exceptions Exceptions to the open tendering requirementsinclude:

where, in response to a prior open tender:

no tenders were submitted;

the tenders that were submitted did not conformto the essential requirements contained in thetender document;

the tenders that were submitted did not satisfythe conditions for participation.

where, for works or art, or for reasons connectedwith the protection of exclusive rights, intellectualproperty rights, or where there is an absence ofcompetition for technical reasons, the goods orservices can only be supplied by a particularsupplier, and no reasonable alternatives orsubstitutes exist;

for additional delivery by the original suppliers,which are intended either as replacement parts,extensions or continuing services or upgrades ofexisting equipment, software, services orinstallations, where a change of supplier wouldcompel Tauranga City Council to procure goods or

services not meeting requirements, sointerchangeability with existing equipment, software,services or installations, or conditions under originalsupplier warranties;

for goods purchased on a commodity market (e.g.goods bought and sold for future delivery at aspecific price through an exchange);

if Tauranga City Councils requirements include theprocurement of a prototype or a good or service thatis developed that Tauranga City Council requires inthe course of, and for, a particular researchexperiment or study. Once such a contract hasbeen fulfilled, any subsequent procurement of suchgoods and/or services will be required to be openlytendered in accordance with the Valuation of

Contracts rule outlined in this manual;

in the case of an emergency procurement.




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APPENDIX 1 - DEFINITIONS

Added value premium - the amount more that Tauranga City Council is prepared to pay for the output offered by an alternative proposal.

Alternative proposal / response / tender - an alternative proposal / response / tender offers an output/methodology that is different fromthat specified in detail within the RFP/RFT/RFQ/ROI.

Bond a financial guarantee from a recognised institution to ensure satisfactory performance of the contract requirements.

Commercial in confidence (CIC) confidential information provided for a specific purpose that is not to be used for any other purpose.

Conforming proposal/response/tender - a conforming proposal is one that is within the scope of the RFP/RFT/RFQ/ROI and meetsrequirements of the RFP/RFT/RFQ/ROI.

Contingency sum of money provided for within the allocated project budget in addition to the contracted sum that is available for use forunplanned requirements that were not foreseen at the time of contract usually 5% to 10% of the contracted sum.

Consultant an individual, firm, company or other legal body providing information, advice or service.

Contract an agreement or set of agreements between two or more parties enforceable in law.

Council Tauranga City Council.

Delegated authority an authority, granted by Council resolution to staff (or by sub-delegation from one staff member with delegatedauthority to another) to do, approve, or otherwise commit Council as prescribed by the specific wording of such delegations.

Expression of interest (EOI) see Registration of interest (ROI).

Intellectual property property that derives from the work of the mind or intellect, specifically, an idea, invention, trade secret, process,program, data, formula, patent, copyright, or trademark or application, right, or registration.

Notice to tenderers (NTT) a notice issued to all tenderers before the close of tenders which, upon issue, becomes part of the tenderdocuments.

NZTA - New Zealand Transport Agency.

Output the desired result.

P-Card/Purchasing Card Tauranga City Council credit card.

Performance Specification this type of specification defines the output or standard required rather than the inputs and methodsrequired. The method of achieving the output is left to the contractor or consultant to determine.

Professional services - professional services include services typically provided by consulting engineers, iwi, planners, public transportplanners, surveyors and other professionals. Professional services contribute to the delivery of approved activities and include strategy orpolicy development, planning, investigation and design services, and the supervision of works or services contracts.

Quote the price stated to complete a given task. Usually results in a contract where the documentation is normally less than thatrequired for a Tender.

Registration of interest (ROI) an invitation to the market for companies or individuals to register their interest in providing services or

carrying out works which may be either specific or general.

Respondent a supplier submitting a response to an RFQ/RFI document issued by Tauranga City Council.

Request for information (RFI) a formal request to the market for information only. It is not a request for offers from the market. It is alsonot a supplier selection tool.

Request for proposal (RFP) a formal means of seeking offers from the market for goods or services where Tauranga City Council isopen to supplier innovation; that is, it is the outputs and outcomes that are important, not the process the supplier follows to deliver theoutputs or outcomes.

Request for quotations (RFQ) a formal means of seeking offers from the market for goods or services where price is the main selectioncriteria, the requirement is for reasonably stock standard or off the shelf goods or services, and the procurement is low risk.

Request for tender (RFT) identical in structure and process to the RFP, except that it is used where Tauranga City Councilsspecification or requirements are clearly defined and there is little room for flexibility or innovation and hence price can be more accuratelydetermined.

Risk An uncertain event or condition that, if it occurs, has a positive or negative effect on the objective.

Risk management The culture, processes and structures that are directed towards the effective management of opportunities andadverse effects. Risk management is achieved through the systematic application of policies, procedures, and checking and auditingmechanisms to identify potential risks and lessen their likelihood or impact.

Specification the specification defines the manner in which the work is to be carried out to achieve an end result.

Staff all employees of Tauranga City Council. Excludes Elected Members.

Supplier quality premium - the amount more that Tauranga City Council is prepared to pay for a higher-quality supplier under theprice/quality evaluation methodology.

Sustainability is about making sure the decision and actions of today wont compromise what we can achieve in the future.

Tag (Tender Tag) a qualification or condition stated or implied by a tenderer or party submitting a quote, which seeks to make the priceor outcome conditional upon certain stated (or implied) assumptions being satisfied. Tags generally create a degree of uncertainty as toultimate contract price or outcome.

TCC - Tauranga City Council.

Tender a competitive process to determine the price that tenderers offer to provide works or services for Tauranga City Council in

accordance with various terms and conditions. This can include an open tender, available to anyone in the marketplace, or a closed (orprivate/invited) tender, where the tenderers are selected and invited by Tauranga City Council..

Tender Documents the documents which are issued to prospective tenderers by Tauranga City Council as part of the tender process.

Tender evaluation panel/team the group of people Tauranga City Council uses to formally assess tenders against set evaluation




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criteria following prescribed evaluation procedures.

Tenderer a supplier submitting a response to an ROI/RFP/RFT document issued by Tauranga City Council.




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APPENDIX 2 - STATEMENT OF BUSINESS ETHICS

Introduction New Zealand signed the United Nations Convention Against

Corruptio