Procurement Policy 2021

Business Support - Procurement

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Procurement Policy 2021

1. Introduction

1.1. Background

Council recognises that developing a procurement strategy and adopting best

practice contracting and procurement principles, policies, processes and procedures

for all goods, services and works purchased by Council, will enhance achievement of

Council's objectives such as:



Sustainable and socially responsible procurement;



Bottom-line cost savings;



Supporting local economies;



Achieving innovation;



Better services for our communities; and



Best value outcomes.

Council acknowledges that the elements of best practice applicable to local

government procurement incorporate:



Broad principles covering ethics, value for money, responsibilities and

accountabilities;



Guidelines giving effect to those principles;



A system of delegations (i.e. the authorisation of officers to approve and

undertake a range of functions in the procurement process);



Procurement processes, with appropriate procedures covering minor, simple

procurement to high value, more complex procurement;



Continuous improvement practices for identifying and implementing initiatives

to reduce cost and complexity, improved productivity and buyer convenience;

and



A professional approach to all procurement related activities.

Council requires that its contracting, purchasing and contract management activities:



Support the Council’s corporate strategies, aims and objectives including but

not limited to those related to sustainability, protection of the environment,

and corporate social responsibility;



Generate and support business in the local community;



Span the whole life cycle of an acquisition from initial concept to the end of

the useful life of an asset, including its disposal, or the end of a service

contract;



Take a long term strategic view of its procurement needs while continually

assessing, reviewing and auditing its procedures, strategy and objectives;

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

Provide a robust and transparent audit trail which ensures that procurement

projects are delivered on time, within cost constraints and that the needs of

end users are fully met;



Are conducted, and are seen to be conducted, in an impartial, fair and ethical

manner;



Achieve value for money and quality in the acquisition of goods, services and

works by Council;



Can demonstrate that public money has been well spent;



Ensure that risk is identified, assessed and managed at all stages of the

procurement process;



Seek continuous improvement including the exploration of innovation and

technology initiatives to reduce activity cost and risk;



Use strategic procurement practices and innovative procurement solutions to

promote sustainability and best value, in particular making use of

collaboration and partnership opportunities;



Comply with legislation, corporate policies or other requirements, ensuring

Councillors are aware of and adhere to those requirements, and



All staff responsible for procurement and contract management are

adequately trained in procurement processes and procedures.

1.2. Purpose and Scope

This Procurement Policy is developed in accordance with Section 108 and 109 of the

(the Act). These sections of the Act require Council to

prepare, approve and comply with a Procurement Policy encompassing the principles,

processes and procedures applied to all purchases of goods, services and works by

Council. It requires that the policy be reviewed at least once during each 4 year term

of the Council.

The key legislative requirements for this Policy include:



section 108 of the Act (Procurement Policy)



section 109 of the Act (Procurement)



section 4 of the Act (Objectives of Act)



section 101 of the Act (Financial management principles)



sections 106 of the Act (Service performance principles)



sections 126 to 131 of the Act (Conflict of interest)



section 11 and 47 of the Act (Delegations)



section 105 the Act (Accounts and records)

Under the Act a Council must comply with its Procurement Policy before entering into

a contract for the purchase of goods or services or the carrying out of works, as

such, this policy applies to all Councillors, Council staff, temporary employees,

contractors and consultants engaged by Council for all contracting and procurement

activities at Council and is binding upon Councillors and Council staff while engaged

by Council.

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The Act and the Procurement Policy are the primary reference points for how all

procurement should be performed, and represents the principles that will be applied

to all procurement activities, which includes sustainable practices of environmental,

economic and social performance undertaken by Council.

This Policy is to be read in conjunction with:



Brimbank City Council Instruments of Delegations and Financial Authority

Limits



Brimbank Contract Management Manual



Brimbank Tendering Manual



Brimbank Request for Quotation Manual



Open Windows Contracts – Contract Management Guide



eProcure Operator User Guide



Brimbank Purchasing Card Facility Procedure



Brimbank Employee Code of Conduct



Brimbank Councillor Code of Conduct



Brimbank Fraud Prevention Policy



Brimbank Acceptance and Declaration of Gifts Policy – Staff

Other references are:







)





(NCP)











Municipal Association of Victoria (MAV) Model Procurement Policy 2011



Victorian Local Government Best Practice Procurement Guidelines 2021



Brimbank Community Vision 2040



Brimbank Council Plan 2021-2025



Brimbank Social Justice Charter



Brimbank Climate Emergency Plan 2020-2025



Brimbank Risk Management Policy



Brimbank Risk Management Framework



Brimbank Environmental Sustainability Policy

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

Brimbank Sustainability Framework



Brimbank Environmentally Sustainable Design Framework



Brimbank Economic Development Strategy



Brimbank Social Procurement Policy

1.3. Objectives

The objectives of this Policy are to:



Provide a procurement framework for Council that seeks to achieve best value

for money;



Provide a mechanism for continuous improvement in the provision of services

to the community;



Ensure that Council’s resources are used efficiently and effectively;



Collaborate with other Councils where practical to take advantage of

economies of scale;



Achieve compliance with relevant legislative requirements;



Achieve high standards of probity, transparency, accountability and risk

management;



Provide a framework to achieve ethical behaviour in all procurement;



Prioritise where practical the procurement of environmentally responsible,

locally sourced and socially responsible goods and services; and



Prioritise where practical, procurements which provide social benefit.

1.4. Goods and Services Tax (GST)

All values referred to in the Policy are inclusive of GST.

2. Definitions of terms being used

Term

Definition

The Act

Best value

Best value in procurement is about selecting the supply of

goods, services and works taking into account both cost and

non-cost factors including:



All services provided by Council must meet the

appropriate quality and costs standards;



Continuous improvement is achieved in the provision of

services;



The need to review services against the best on offer in

both the public and private sectors;



An assessment of value for money in service delivery;



Community expectations and values;



The balance of affordability and accessibility of services to

the community;



Opportunities for local employment growth or retention;

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

The value of collaboration with other Councils or public

bodies;



Potential environmental advantages for the municipality;



Contribution to the advancement of Council’s priorities;



Non-cost factors such as fit for purpose, quality, services

and support; and



Cost related factors including whole-of-life costs and

transaction costs associated with acquiring, using,

holding, maintaining and disposing of the goods, services

or works.

Commercial in confidence

Information that, if released, may prejudice the business

dealings of a party e.g. prices, discounts, rebates, profits,

methodologies and process information.

Contract management

The process that ensures both parties to a contract fully meet

their respective obligations as efficiently and effectively as

possible, in order to deliver the business and operational

objectives required from the contract and in particular, to

provide value for money.

Corporate Social Responsibility

(CSR)

CSR is about taking positive action to demonstrate the

Council’s commitment to the local community and

environment on which it impacts.

Councillors and Council staff

Councillors, Council staff, temporary employees, contractors

and consultants engaged by Council. The role of Councillors in

the procurement process is to award contracts above the

Chief Executive Officer’s delegation.

Delegation

A power handed down by Council or Chief Executive Officer

(CEO) in an instrument to enable a delegate to act on

Council’s behalf.

Expressions of interest (EOI)

An invitation to submit an EOI for the provision of goods

and/or services generally set out in the overview of

requirements contained in a document. The process is usually

undertaken to test the market and may be a precursor to a

tender process or a request for quotation. EOI is not an offer

or a contract.

e-Procurement

The automation of an organisation’s procurement processes

using web-based applications.

Probity

Probity refers to uprightness, honesty, proper and ethical

conduct, and propriety in dealings. Within local government,

the word “probity” is often used in a general sense to mean

“good process”. A procurement process that conforms to the

expected standards of probity is one in which clear

procedures that are consistent with Council’s policies and

legislative requirements are established, understood and

followed from the outset. These procedures need to consider

the legitimate interests of suppliers and ensure that all

potential suppliers are treated equally.

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Procurement

Procurement is the whole process of acquisition of external

goods, services and works. The process spans the whole life

cycle from initial concept through to the end of the useful life

of an asset (including disposal) or the end of a service

contract.

Preferred Suppliers

Suppliers who are appointed under an approved agreement

subsequent to a competitive procurement process

Public Body

A public body means any government department or

municipal Council or body established for a public purpose by

an Act of the Parliament of Victoria, any other State, or a

Territory of the Commonwealth, or the Commonwealth

Request for quotation (RFQ)

An RFQ is generally an invitation to a specific or closed

supplier market, designed to capture commercial information

and pricing and allows Council to assess suitability and

evaluate responses against a set of predefined requirements.

Request for tender (RFT)

RFT is the process of inviting parties to submit a quotation by

tender using public advertisement, followed by evaluation of

submissions and selection of a successful bidder or tenderer.

Social procurement

Social procurement uses procurement processes and

purchasing power to generate positive social outcomes in

addition to the delivery of efficient goods, services and works.

Sustainability

Activities that meet the needs of the present without

compromising the ability of future generations to meet their

needs.

Thresholds

The value above which a procurement, unless exempt, is

subject to the mandatory procurement processes.

3. Policy principles

3.1. Procurement Principles

Council will apply following fundamental best practice principles to each procurement

activity irrespective of the value or complexity of that procurement:



Value for money



Open and fair competition



Accountability



Risk management



Probity and transparency

3.1.1. Value for money

Council will undertake efficient and effective procurement activities to ensure that

value for money is obtained. The value for money principle will take into account all

relevant costs and benefits of each proposal throughout the procurement cycle.

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Cost factors include whole-of-life costs and transactional costs associated with

acquiring, using, holding, maintaining and disposal of the goods, services or works.

Non-cost factors include fit for purpose, quality, service, support, environmental

impacts and social benefit.

Lowest price is not the sole determinant of value for money. Value for money

purchasing decisions made by Council are made on the whole-of-life cost and non

cost factors including contributing to Council’s strategic directions as set out in the

Brimbank Community Vision 2040.

The strategic directions of the Brimbank Community Vision 2040 align with the triple

bottom line principles around environmental, economic and social sustainability.

Council is committed to reducing any negative social and environmental impacts and

preferential purchasing of products and services that have been produced to ethical

standards which have minimal negative impacts on the environment and human

health.

3.1.2. Open and fair competition

All prospective contractors and suppliers must be afforded an equal opportunity to

tender or quote, and impartiality must be maintained throughout the procurement

process so it can withstand public scrutiny.

All prospective contractors and suppliers must be treated (and be seen to be treated)

fairly in an open and transparent manner with the same access to information about

the procurement to enable them to submit prices/quotations/tenders on the same

basis.

Council must adequately test the market in a consistent manner without any bias, or

perception of bias, so that potential suppliers and the public have confidence in the

outcome.

The commercial interests of existing and potential suppliers must be protected.

Commercial in confidence information received by Council must not be disclosed.

Commercially sensitive information includes information that, if released, may

prejudice the business dealings of a party e.g. prices, discounts, rebates, profits,

methodologies and process information.

3.1.3. Accountability

Council staff are responsible for the actions and decisions they take in relation to

procurement and for the resulting outcomes. Staff are answerable for such activities

through established lines of accountability and delegation, and ultimately to the Chief

Executive Officer (CEO), Council and the community.

Staff must also ensure they provide adequate and reliable advice to Council to allow

it to make sound decisions on procurement matters.

Council maintains consistency in the approach to procurement across the whole

organisation through coherent frameworks, policies and procedures.

All Council staff must be able to account for all procurement decisions made over the

lifecycle of all goods, services and works purchased by Council and provide feedback

on them. All procurement activities are to provide for an audit trail for monitoring

and reporting purposes.

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Council will conduct its procurement activities in a fair, honest and open manner,

demonstrating the highest level of integrity, consistent with the public interest.

The test for adequate accountability is that an independent third party must be able

to clearly see that a process complying with this policy has been followed and that

the process is fair and reasonable.

3.1.4. Risk management

Risk management is to be appropriately applied to all activities within the

procurement lifecycle and are to be planned and carried out in a manner that will

protect and enhance Council’s capability to prevent, withstand and recover from

interruption to the supply of goods, services and works.

The procurement process must ensure that all risks are managed in accordance with

Council’s Risk Management Policy, Risk Management Framework and Risk

Management Guide including occupational health and safety.

3.1.5. Probity and transparency

Council will conduct its procurement activities in a fair, honest and open manner,

demonstrating the highest level of integrity, consistent with the public interest.

Council’s procurement activities shall be performed with integrity and in a manner to

withstand the closest possible scrutiny.

Councillors and Council staff while engaged by Council shall at all times conduct

themselves in ways that are, and are seen to be, ethical and of the highest integrity.

3.2. Ethics and probity

Council’s procurement activities shall be performed with integrity and in a manner to

withstand the closest possible scrutiny.

Councillors and Council staff while engaged by Council shall at all times conduct

themselves in ways that are, and are seen to be, ethical and of the highest integrity

and will:



Treat potential and existing suppliers with equality and fairness;



Use consistent and transparent processes;



Not seek or receive personal gain;



Maintain confidentiality of commercial in confidence information such as

contract prices and other sensitive information;



Present the highest standards of professionalism and probity;



Deal with suppliers and tenderers with the same information and equal

opportunity;



Be able to account for all decisions and provide feedback on them, taking into

account commercial in confidence issues, so that all decisions are understood

and can be subsequently justified;



Ensure their actions embody the principles of sound financial risk

management;

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

Never engage in fraudulent activity of any kind;



Comply with all legal and policy requirements;



Comply with Brimbank Employee Code of Conduct;



Comply with Brimbank Councillor Code of Conduct;



Comply with Brimbank Fraud Prevention Policy; and



Comply with Brimbank Acceptance and Declaration of Gifts Policy – Staff

Council staff that are responsible for managing or supervising contracts are

prohibited from performing any works under the contract they are supervising.

Councillors and Council staff belonging to professional organisations shall, in addition

to the obligations detailed in this policy, ensure that they adhere to any code of

ethics or professional standards required by that body.

3.3. Conflict of interest

Councillor and Council staff while engaged by Council must act with integrity and

avoid conflicts of interest, ensuring there is no conflict or incompatibility between

their personal interests, whether pecuniary (i.e. relates to money) or non-pecuniary,

and their Council position/duties. Members of the public need to be confident that

Councillors and Council staff while engaged by Council provide advice and make

decisions free of any conflict of interest. All Council representatives should consider

real, or the likely perception of, conflicts of interest in relation to their duties,

especially where they are providing advice or making a decision.

If a Councillor or Council staff has a conflict of interest that arises through

involvement in any procurement process, the Councillor or Council officer/staff must

disclose this in accordance with Council’s Governance Rules and exclude themselves

from the decision making process in relation to that matter.

Further information regarding conflict of interest can be found in the following

documents:



Brimbank Employee Code of Conduct



Brimbank Councillor Code of Conduct



Council Officer Conflict of Interest Protocol

3.4. Gifts As a general principle, Councillors and Council staff while engaged by Council must

not directly or indirectly accept or solicit gifts or hospitality from any supplier,

member of the public, organisation or body. The acceptance of gifts or hospitality

may lead to a perception of being influenced and/or a conflict of interest.

All Council staff must comply with Brimbank Acceptance and Declaration of Gifts

Policy – Staff.

3.5. Service Performance Principles

The Procurement Principles will be applied with the Service Performance Principles

outlined in the Act - Division 1, section 106 Service Performance Principles.

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Council must plan and deliver services to the municipal community in accordance

with the following Service Performance Principles.

a) Services should be provided in an equitable manner and be responsive to the

diverse needs of the municipal community;

b) Services should be accessible to the members of the municipal community for

whom the services are intended;

c) Quality and costs standards for services set by the Council should provide

good value to the municipal community;

d) A Council should seek to continuously improve service delivery to the

municipal community in response to performance monitoring;

e) Service delivery must include a fair and effective process for considering and

responding to complaints about service provision.

3.6. Disclosure of information

Commercial in confidence information received by Council must not be disclosed.

Councillors and Council staff while engaged by Council must comply with Councils’

Information Privacy and Health Records Policy and the Privacy and Data Protection

Act 2014.

Council staff are to avoid references to current or proposed contracts in discussion

with acquaintances or outside interests. Discussion with potential suppliers during the

tender/quote evaluation process should not go beyond the extent necessary to

resolve doubt on what is being offered by that supplier and should only be conducted

by the authorised Contract Officer, or other persons approved by the Tender

Evaluation Panel Chair. At no stage should any discussion be entered into which could

have potential contractual implications prior to the contract approval process being

finalised other than authorised pre-contract negotiations.

Procurement activities will be carried out in a way that supports Council staff in

meeting their obligations to ensure information of a commercially sensitive or

confidential nature is obtained, stored, processed, published (where applicable) and

used in accordance with Privacy and Data Protection Act 2014, Freedom Information

Act 1982, Council policies and procedures.

Procedures are in place to receive and manage tender and supplier documentation in

a secure and confidential manner via the e-tendering portal and Council’s records

management system. All tender documents should be held in electronic security

access and should remain secure and confidential until a decision on a tender is made

public.

3.7.

compliance

All suppliers are to be treated fairly in an open and transparent manner and have

access to the same information.

Council will comply with the

and other

applicable legislation and obligations under competition and consumer legislation in

areas such as:



Restrictive trade practices;



Market sharing, anti-competitive agreements, exclusive dealing and misuse of

market power;

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

Inaccurate communication or promotion; and



Unconscionable and unfair business practices.

4. Procurement governance

4.1. Structure

Council will maintain a procurement management responsibility structure and

delegations ensuring accountability, traceability and auditability of all procurement

decisions made over the lifecycle of goods, services and works purchased by Council.

The procurement structure must:



Be flexible enough to purchase the diverse range of material, goods, services

and works required by Council in a timely manner;



Ensure that prospective suppliers and contractors are afforded an equal

opportunity to quote or tender; and



Encourage competition.

4.2. Legislation and policies

Council’s procurement activities shall comply with all related legislation and policies

as outlined in section 1.2 of this Policy.

4.3. Methods of procurement

4.3.1. Council’s standard methods for purchasing goods, services and works are

by the following methods:



Petty cash for reimbursement of legitimate, urgent and operational

business expenses incurred by staff up to $100;



Purchase card for low cost purchases of goods and services in

accordance with Brimbank Purchasing Card Facility Procedure;



Purchase order following a quotation process from suppliers for

works, goods or services that represent best value for money under

directed quotation thresholds;



Under contract following a quotation or public tender process;



Using aggregated purchasing arrangements with other Councils, MAV

Procurement, Procurement Australia, Victorian Government or other

bodies;



Other arrangements authorised by the Council or the CEO on a

needs basis as required by abnormal circumstances such as

emergencies.



Other arrangements authorised by the Municipal Emergency

Resource Officer in the event of a municipal emergency response.

4.3.2. Council, at its discretion and based on the complexity and cost of the

project, may conduct one-stage or multi-stage tenders.

4.3.3. An EOI may be appropriate where:

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

The requirement is complex, difficult to define, unknown or unclear;



The requirement is capable of several technical solutions;



It is necessary to pre-qualify suppliers and goods to meet defined

standards; or



The requirement is generally known but there is still considerable

analysis, evaluation and/or clarification required both on the

objective and/or the solution.

4.3.4. Collaborative procurement

Council’s procurement activities should consider opportunities to collaborate with

other Council or public bodies for achieving best outcomes for Councils. Council

Officers should connect with other Councils or public bodies when the requirements

are at the planning stage providing enough time to collaborate the procurement

activities.

Any report to Council that recommends entering into a procurement agreement to

include information in relation to any opportunities for collaboration with other

Council or Public Bodies which may be available.

Collaborative Procurement aims to deliver value for money by:



Combining procurement activities, such as tendering, with other councils,

generally those close to Council’s borders;



Combining purchasing power;



Combining procurement administration;



Creating greater efficiencies for contract outcomes and delivery;



Combining Evaluation Team members providing several sources of knowledge

and experience;



Allowing the ability for individual councils to use their own evaluation criteria

and methodology to achieve local value for money outcomes; and



Allowing the ability to award panel contracts over several Council areas.

4.3.5. All procurement methods must be undertaken in accordance with the

appropriate procedures as outlined in section 1.2 of this Policy.

4.3.6. All purchased goods and services must be supported by a purchase order

raised via Council’s financial purchasing module in the finance system.

However, for practical purposes some transactions are exceptions to the

raising of purchase orders. These are:



Petty cash reimbursement



Purchasing card statement payment



Statutory authority payments



Utility payments



Rate refunds and other refunds

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

Security bonds



Insurance claims



Grants



Donations



Councillors and staff reimbursements

All transactions without a purchase order must be approved by the

appropriate delegate in accordance with Council’s instrument of

delegation.

4.4. Responsible financial management

The principle of responsible financial management shall be applied to all procurement

activities including variations to contracts.

The availability of existing funds within an approved budget, or source of funds, shall

be established prior to the commencement of any procurement activity.

Council staff must not authorise the expenditure of funds in excess of their financial

delegations.

Council funds must be used efficiently and effectively to procure goods, services and

works and every attempt must be made to contain the costs of the procurement

process without compromising any procurement principles set out in this Policy.

4.5. Delegations of authority

Delegations of authority define the limitations within which Council staff are

permitted to work. This enables Council to conduct procurement activities in an

efficient and timely manner whilst maintaining transparency and integrity.

Procurement and financial delegations ensure accountability and provide confidence

to Council and the public that procurement activities are dealt with at the appropriate

level.

Brimbank City Council Instruments of Delegations and Financial Authority Limits

outline Council’s delegations of authority.

4.6. Probity auditor or advisor

In certain circumstances a probity auditor or advisor may be considered and

appointed by a Director or the CEO to be part of a tender. These circumstances

include:



Where the integrity of the process may be called into question;



Where a project is technically complex or departs from standard contractual

and legal obligations;



Where the activity is politically sensitive and/or potentially controversial,

which may include protecting the reputation of Council;



To avoid a perception of bias or favouritism;



Where there is substantial government funding involved; or

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

Where the project is of a substantial value generally considered to be over the

value of $5 million and the CEO or a Director has recommended the

appointment of a probity auditor or advisor.

5. Procurement thresholds, processes and procedures

Total Purchase Value

Procurement Action

Procurement Requirement

Up to $5,000

Minimum of one verbal quote

sought.

Evidential material must be

provided to establish the

appropriate number of quotes

has been sought.

Purchasing card or purchase

order to be raised at time of

ordering.

$5,001 to $20,000

Minimum of one written quote

sought.

Evidential material must be

provided to establish the

appropriate number of quotes

has been sought.

Brief description of

requirement.

Purchasing card or purchase

order to be raised at time of

ordering.

$20,001 to $50,000

Minimum of two written quotes

sought.

Evidential material must be

provided to establish the

appropriate number of quotes

has been sought.

Written brief or specification to

selected suppliers is to be

issued.

Purchase order to be raised at

time of ordering with

documentation attached to the

purchase order via the

Procurement portal.

$50,001 to $75,000

Minimum three written quotes

sought.

Evidential material must be

provided to establish the

appropriate number of quotes

has been sought.

Written specification to selected

suppliers is to be issued.

Purchase order must be raised

and approved by the

appropriate financial delegate.

$75,001 to $249,999 (good &

services)

$75,001 to $349,999 (works)

Minimum three written quotes

sought.

Evidential material must be

provided to establish the

appropriate number of quotes

has been sought.

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Total Purchase Value

Procurement Action

Procurement Requirement

Written specification to selected

suppliers is to be issued.

RFQ process via Council’s e

tendering portal.

Responses to be lodged via

Council’s e-tendering portal.

Must be evaluated against

evaluation criteria and

documented on contract file.

Purchases >$100,000 a report

seeking approval must be made

in line with the instrument of

delegation.

Purchase order must be raised

and approved by the

appropriate financial delegate.

$250,000 plus (goods and

services)

$350,000 plus (works)

Public tender process or eligible

panel contracts.

Undertaken in accordance with

Council’s tendering process.

Approval is for total value of

contract including extensions

and known variations.

In some cases, contract

variations as outlined in section

5.5 of this Policy.

Aggregated spend with one

supplier as outlined in section

5.6 of this Policy.

5.1. Procurement thresholds guidelines

5.1.1. All procurement methods must be undertaken in accordance with the

appropriate legislation and procedures as outlined in section 1.2 of this

Policy.

5.1.2. For purchases below the tender threshold, a Director or the CEO may

consider the nature of requirements and the characteristics of the market

are such that a public tender process would lead to a better result for

Council. In these circumstances public tenders will be called for goods,

services or works for which the total expenditure is below the standard

procurement threshold for a tender process.

5.1.3. A quote value relates to the total purchase order or total payment value,

not a purchase order line item value of goods, services or works.

Purchase orders are not to be split in order to circumvent the requirements

of this Policy or the Act.

Any breaches will be dealt with in accordance with the Brimbank Employee

Code of Conduct.

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5.2. Public tenders

A public tender process must be undertaken if the estimated expenditure/purchase

exceeds the following amounts:



$250,000 for goods and services; and



$350,000 for works.

5.2.1. Consider Tender for Large Value RFQs

For procurements that are above $100,000 but below the public tender threshold,

where a competitive quotation process is not achieving the Procurement Principles

set out in section 3, then a public tender should be considered in order to test the

market.

A public tender process may be used for values less than the stated thresholds

(inclusive GST) for goods, services and for works if deemed of benefit to Council and

produce a better outcome in the context of this Policy.

Under these circumstances a Procurement and Evaluation Plan should be developed

to document and plan the procurement and evaluation process details and approved

by the Director or CEO.

5.2.2. Tender Process

The tender process is a centralised function in that it is facilitated and supported by

the Procurement team.



All public tenders must be undertaken via Council’s e-tendering portal.



All tender processes shall be conducted in accordance with the requirements

of this Policy, associated tender procedures and manuals as outlined in section

1.2 of this Policy and section 108 and 109 of the Act.



All tender processes must be initiated by an advertisement in a newspaper

that has a state-wide distribution at a minimum. Council currently advertises

through “The Age” news media. In addition to advertising on state wide

distributed newspaper, advertisements may be placed:

o

In the local news media that is distributed throughout the municipality;

or

o

In other news media or industry specific publications when there is a

requirement to focus on nationwide market or specific industry sector;

or

o

Council’s social media platforms or printed newsletters.



All tenders will be open for a period of no less than 15 business days unless

otherwise approved by the Chief Executive Officer;



Conduct a pre-tender briefing where applicable;



Evaluations will be conducted in accordance with the methodology set out in

Council’s tender manual and will include a minimum of three voting panel

members; Procurement Staff will be one of the voting panel member; the

composition of such panels will be determined by the respective Project

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Manager; Tender evaluation panels may include external personnel in order to

provide the technical/professional expertise to the panel;



Tender evaluation criteria and its weightings will be documented and agreed

by all Tender Evaluation Panel members prior to the tender closing date and

time; where applicable, weightings can be applied to sustainable procurement

elements (environment, local economy and social). Criteria to be used for

evaluating tenders shall include but not limited to the following:

o

Technical Capability to deliver

o

Commercial Capacity to deliver

o

Financial offer

o

All legislative and regulatory requirements in relation to occupational

health and safety

o

All required insurance cover

o

Environmental sustainability, social and economic inclusion criteria and

weightings where appropriate

o

Also considered will be the Service Performance Principles as outlined

with the Act, risk of doing business and the undertaking of a financial

risk assessment.



Tender processes will be conducted in accordance with the tender conditions;



The tender process will be robust, systematic, transparent, unbiased and

defensible by documented evidence;



Value management process may be conducted in order to obtain the optimal

solution and commercial arrangements, provided they remain within the

intent and scope of the tender;



All negotiations must be undertaken and exhausted with one tenderer before

beginning with another tenderer; a negotiation plan may be established and

documented for transparency and probity purpose;



Procurement Staff on the evaluation panel, in conjunction with the

chairperson will maintain detailed records of all commercial-in-confidence

negotiations;



Tender evaluation panels will produce a report of their evaluation using the

appropriate prescribed template, accepted by the TEP and approved by the

relevant delegate;

Once a tender has been awarded, a formal written contract will be entered

into between the contractor/supplier and Council before works commence.

5.3. Quotations

For purchases up to $249,999 for goods and services and $349,999 for works,

Council staff must undertake a quotation process.

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The quotation process is generally a decentralised function in that it is the

responsibility of the contract manager and the authorising officer with the financial

delegation to ensure that the correct purchasing process is followed as per the

requirements of this Policy, and associated legislation, procedures and manuals as

outlined in section 1.2 of this Policy.

5.3.1. Up to $5,000 – a minimum of one verbal quote is to be sought. Evidential

material must be provided to establish the appropriate number of quotes

has been sought. Value for money is to be demonstrated.

5.3.2. $5,001 to $20,000 – a minimum of one written quote is to be sought.

Evidential material must be provided to establish the appropriate number of

quotes has been sought. Where only one quote is obtained from invited

suppliers, value for money is to be demonstrated. All documentation is to

be attached to the purchase order via the Procurement portal and saved in

Council’s records management system.

5.3.3. $20,001 - $50,000 – a minimum of two written quotes are to be sought

from suppliers who are considered able to meet the requirements.

Evidential material must be provided to establish the appropriate number of

quotes has been sought. Value for money is to be demonstrated. All

documentation is to be attached to the purchase order via the Procurement

portal and saved in Council’s records management system.

5.3.4. $50,001 - $75,000 - a minimum of three written quotes are to be sought

from suppliers who are considered able to meet the requirements.

Evidential material must be provided to establish the appropriate number of

quotes has been sought. Value for money is to be demonstrated. All

documentation is to be attached to the purchase order via the Procurement

portal and saved in Council’s records management system.

5.3.5. Goods and services $75,001 to $249,999 – a minimum of three written

quotes are to be sought from invited suppliers who are considered able to

meet the requirements of the written specifications. Evidential material

must be provided to establish the appropriate number of quotes has been

sought. The RFQ process is to be followed. All written invitations to quote

and responses are to be lodged via Council’s e-tendering portal. All

responses must be evaluated against the evaluation criteria and

documented on the contract file. For purchases greater than $100,000 a

report seeking approval must be made in line with the instrument of

delegation.

5.3.6. Works $75,001 to $349,999 - a minimum of three written quotes are to be

sought from suppliers who are considered able to meet the requirements as

per the written specifications. Evidential material must be provided to

establish the appropriate number of quotes has been sought. The RFQ

process is to be followed. All written invitations to quote and responses are

to be lodged via Council’s e-tendering portal. All responses must be

evaluated against the evaluation criteria and documented on the contract

file. For purchases greater than $100,000 a report seeking approval must

be made in line with the instrument of delegation.

5.4. Existing contracts, panel contracts and preferred suppliers

Where existing contracts and panel contracts have been established by Council, these

contracts must be used. Seeking goods, services and works from suppliers outside of

these contracts may amount to a breach of contract unless otherwise stated in the

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contract. When seeking quotations using a panel contract, value for money is to be

demonstrated.

Preferred suppliers that must be used where practicable when sourcing goods,

services or works are from the following:



Annual supply contracts



Aggregated/collaborative contracts



Contracts available from MAV Procurement



Contracts available from Procurement Australia



Contracts available with the State Government

5.5. Contract variations

Contract variations may occur from time to time. The conditions of contract may

prescribe the circumstances in which a variation might arise (for example an

instruction by the superintendent for the contractor to undertake additional work –

known as ‘scope variations’). The method of calculating the value of variations could

also be contained within the conditions of contract.

Variations to contracts can be minimised by developing clear procurement plans and

well-defined specifications.

Caution is to be exercised with contract variations where the:



Variation works were not envisaged in the original contract (they are

inconsistent with the scope of that contract);



Value of the variation exceeds the threshold under this Policy;



Value of works which did not reach the threshold in the original contract (and

was not subject to a public tender process) increases, and takes the total

value over the threshold.

Variations to contracts that constitute material changes to the original scope or

specifications to the original contract need to be assessed to determine if a further

tender needs to be undertaken for the variation or an exemption needs to be

arranged. Assessing whether a new tender/contract is required is to include:



The monetary value of the proposed variation, i.e. the value of the variation in

the context of the procurement thresholds; and



The subject matter of the proposed variation, and whether it is consistent with

the scope of the original contract; and



Value for money principles.

All contract variations that do not require a further procurement activity should be

approved in accordance with the Brimbank City Council Instruments of Delegations

and Financial Authority Limits.

5.6. Aggregated spend with one supplier

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Over a rolling two year period, there may be occasions where a single supplier has

been engaged by multiple RFQs and the transactional spend is below the public

tender thresholds but the overall aggregated spend is above the tender thresholds of

$250,000 or greater for goods and services and $350,000 or greater for works.

The two year period is determined to commence from the date an obligation to

purchase goods, services or works is first entered into by Council.

In these circumstances, the total spend with that supplier may fall within the

parameters of the tender thresholds and a public tender process must be undertaken

for one contract with that supplier.

5.7. Exemptions from public tender process

5.7.1. Council may enter into a contract without first undertaking a public tender

within the usual procurement thresholds under prescribed circumstances.

These circumstances are:



Where Council has resolved that the contract must be entered into

because of an emergency in view of public health security or safety

because of an unforeseen event or occurrence (for example a bush

fire); or



Where the contract is entered into with Council or another approved

group acting as the agent for a group of councils to run the tender on

their behalf and Council has otherwise complied with the Act; or



Where the contract is entered into and satisfies the tests of achieving

value for money, transparency and accountability, by using:

o

State purchase contracts;

o

Whole of Victorian Government contracts;

o

Construction Supplier Register;

o

Agency contracts such as Procurement Australia and MAV

Procurement; or



Where the contract entered into is a novated contract, but the original

contract has undergone a public tender process; or



For the acquisition of Legal Services, however the process of engaging

legal services should still meet the tests of achieving value for money,

transparency and accountability; or



Where the contract entered into is mandated by the Victorian State

Government including, but not limited to the following:

o

Utility providers;

o

Regulatory Authorities;

o

Funding Agreements where a list of suppliers is specified;

o

Australia Post; or

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

Subscriptions must be reviewed annually for sustained value and

continued suitability for purpose



Software application licences must be reviewed at least every 5 years

for sustained value and continued fit for purpose.

An exemption to tender procurement levels and procedures may be

requested subject to approval by appropriate delegate under the following

circumstances:



For additional delivery of works, goods and services that are

intended either as replacement parts, extensions or continuing

services for existing equipment;



Installations where a change in supplier would necessitate the

procurement of goods and services that do not meet the

requirements for interoperability or interchangeability;



Insurance claim due to damages or thefts requiring immediate

actions;



Repair works due to damages caused by third parties, for projects

which are under defects liability period, in which case the contractor

who worked on the project may be used to carry out the works;



An absence of competition for technical reasons.

5.7.2. Tender exemption approval

Exemption requests to the public tender process must be outlined in a

Tender Exemption Report to the CEO for approval.

All exemption reports to the CEO must include:



The proposed contract details;



Details of the current contract arrangements;



A detailed report of competitive market analysis;



Demonstrated best value for money;



Endorsement by the relevant financial delegate of the Business

Unit/Department seeking the exemption (e.g. Director).

All procurements made under an exemption should be based on Council’s

standard terms and conditions, appropriate to the goods, services or works

and established in advance of any commitment being made with a supplier.

Appropriate legislative and regulatory requirements in relation to

occupational health and safety, insurance and indemnity are also required.

All approved tender exemptions will be reported to the Audit and Risk

Management Committee and Council.

Any breaches will be dealt with in accordance with the Brimbank Employee

Code of Conduct.

5.7.3. Exemptions below public tender thresholds

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An exemption to procurement threshold levels and procedures may be

requested subject to approval by appropriate delegate under the

circumstances outlined in section 5.7.1.

Exemption requests to the procurement threshold requirements must be

outlined in a Procurement Exemption Report to the appropriate delegate for

approval.

5.8. Agency Contracts

Agency Contracts are formed by approved agencies on behalf of a group of Councils,

where a public tender process has been undertaken for the engagement of suppliers

and entered into a contract with the suppliers.

When Council engages a supplier under these arrangements, the services will be

provided under the agreed conditions of contract executed between that supplier and

the relevant Agency.

To ensure that Council meets its obligations in relation the value for money, Council’s

procurement threshold requirements are to be followed with the appropriate amount

of quotations being from suppliers on the Agency contracts, pertaining to specific

scope of Council’s project. A report detailing the process needs to be approved by the

relevant financial delegate.

To capture all expenditure via these Agency arrangements, a contract number will be

generated for each service provided to council. The Procurement Team will assist

with this requirement.

Examples of approved agencies are:



Municipal Association Victoria (MAV)



Procurement Australia.

5.9. State Purchase Contract or Whole of Victorian Government Contracts

The State Purchase Contracts (SPC) or Whole of Victoria Government Contracts can

be closed or open contracts formed subsequent to a public tender process or can be a

register of suppliers who submit an expression of interest and are prequalified based

on satisfying certain criteria. When Local Government entities chose to utilise the

opportunity to engage suppliers from these pre-qualified businesses, the

requirements pertaining to the use of the suppliers on the register must be complied.

Construction Supplier Register is a register of construction related suppliers and are

to be used in accordance with the requirements that are set out in the Ministerial

Directions issued by the State government under the

.

6. Internal controls

6.1. General

Council maintains a framework of internal controls over the procurement process that

will ensure:



More than one person is involved in and responsible for the end to end

process of a transaction;

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

Appropriate authorisations are obtained and documented;



A clearly documented audit trail exists for procurement activities;



Systems are in place for appropriate monitoring and performance

measurement;



Transparency in the procurement process;



Issues of non-compliance are reported to the Executive Management Team;



Regular internal audits are undertaken by Procurement staff, and



The procurement function is part of the ongoing internal audit plan for Council

and findings are presented to the Audit and Risk Committee.

6.2. Technology purchases

All technology purchases must:



Follow the Information Technology Procurement process.



Be approved by the Information Technology Governance Committee



Comply with Council’s Information Security Management Framework.

6.3. Council staff responsibilities

It is the responsibility of all Council staff while engaged by Council to be aware of

their role ensuring the principles of responsible internal controls are maintained in all

procurement activities. For example:



Authorisation of expenditure must not be in excess of financial delegations;



A purchase must not be split into multiple orders for the same supplier to

avoid the authorisation process or procurement thresholds;



Council staff must not authorise expenditure that relates to them personally;



Purchase orders must be generated at the point where the commitment to

purchase has been made not when the invoice is received;



Expenditure must be recorded in timely manner.

Any breaches will be dealt with in accordance with the Brimbank Employee Code of

Conduct.

7. Risk management

Risk management is to be appropriately applied to all activities within the procurement

lifecycle and are to be planned and carried out in a manner that will protect and enhance

Council’s capability to prevent, withstand and recover from interruption to the supply of

goods, services and works.

7.1. Supply by contract

The provision of goods, services and works by contract potentially exposes Council to

risk.

Council will minimise its risk exposure by measures such as:

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

Standardising contracts to include current, relevant clauses;



Requiring security deposits, bank guarantees or retain a percentage of the

contract amount where appropriate;



Referring specifications to relevant experts;



Requiring contractual agreement before allowing commencement of work;



Use of or reference to relevant Australia Standards (or equivalent);



Effectively managing the contract including monitoring and enforcing

performance;



Undertaking of an independent financial assessment;



Undertaking a risk assessment analysis on high value purchases and projects

of a lesser value but of a complex nature; and



Ensuring contract managers are fully trained on an ongoing basis in

appropriate contract management methodologies.

7.2. Contract terms and conditions

All contractual relationships must be documented in writing based on standard terms

and conditions. Accepting a non-standard terms and conditions for high value

contracts should be assessed for its risk by the team managing the contract and

approved by relevant Director.

Where is it not possible, approval must be obtained from the appropriately delegated

Council officer/staff member of Council as per Brimbank City Council Instruments of

Delegations and Financial Authority Limits.

To protect the interests of Council, terms and conditions must be settled in advance

of any commitment being made with a supplier. Any exceptions to this expose

Council to risk and thus must be authorised by the appropriately delegated Council

officer/staff member of Council as per Brimbank City Council Instruments of

Delegations and Financial Authority Limits.

7.3. Dispute resolution

All Council contracts shall incorporate dispute management and alternative dispute

resolution provisions to minimise the chance of disputes getting out of hand and

leading to legal action.

7.4. Contract management

The purpose of contract management is to ensure that Council, and where applicable

its clients, receive the goods, services or works provided to the required standard of

quality and quantity as intended by the contract and to ensure that all parties meet

their responsibilities and obligations under the contract terms and conditions. This is

achieved by:



Establishing a system of monitoring and achieving the responsibilities and

obligations of both parties’ under the contract;



Notes, written correspondence and contract reviews being recorded on the

contract file;

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

Providing a means for the early recognition of issues and performance

problems and the identification of solutions; and



Adhering to the:

o

Brimbank Risk Management Policy;

o

Brimbank Risk Management Framework;

o

Brimbank’s Occupational Health and Safety Policies and Procedures;

and

o

Brimbank Contract Management Manual.

All Council contracts are to include contract management requirements. Furthermore,

contracts are to be proactively managed by the contract manager responsible for the

delivery of the contracted goods, services or works to ensure that Council receives

value for money.

7.5. Tender documentation

Council will ensure that tender documentation is written in a clear and concise

manner and describes all requirements to successfully deliver the objectives and

value to Council. This includes, but is not limited to, defining the scope of works,

performance requirements, insurance/indemnity obligations, occupational, health and

safety requirements and evaluation criteria. Refer to the Brimbank Tendering Manual.

7.6. Evaluation requirements for tenders

The aim of the evaluation process is to select a tender that offers value for money to

Council while ensuring that all respondents are treated in a fair, equitable and

impartial manner. Tendering conditions are outlined in the invitation to tender

documentation.

Council will ensure that the evaluation of tenders is undertaken on a systematic basis

using selection criteria identified in the tender documentation. The Tender Evaluation

Panel (TEP) members and criteria are determined prior to issuing the tender

documents and includes the weighting, or priority given to each tender agreed by the

TEP members. The evaluation criteria should be weighted according to the specific

procurement requirements including all legislative and regulatory requirements in

relation to occupational health and safety. Where applicable, the criteria could include

social procurement outcomes.

7.7. Insurances

Successful tenderers must take out and maintain insurance cover for the term of the

contract and any additional period specified within the contract. Evidence of

insurance coverage must be provided prior to receipt of goods or services and prior

to commencing works under contract. The insurance policies do not contain policy

exclusions that are relevant to the contract.

7.8. Occupational, health and safety

All contractors, suppliers and service providers must comply with all legislative and

regulatory requirements in relation to occupational health and safety. This is a

mandatory requirement and non-compliance will disqualify prospective contractors,

suppliers and service providers from procurement activities with Council.

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7.9. Tender feedback

Council will offer each tenderer general feedback on their specific tender bid but not

on any other tender bid.

Specific evaluation score information may be obtained by making a Freedom of

Information request to Council.

8. E-Procurement

E-Procurement is integral to the overall development of procurement processes and involves

the use of an electronic system/s to acquire and pay for supplies, services or works.

By utilising e-procurement Council aims to:



Reduce transaction costs;



Achieve greater leverage;



Make processes more efficient;



Improve management information and visibility of spend;



Increase control and consistency of processes; and



Improve spend compliance.

9. Demonstrated sustained value

9.1. Integration with Brimbank Community Vision 2040

The Brimbank Community Vision 2040 outlines the Council’s vision for Brimbank as

having a healthy and safe community and be united through a sense of belonging

and pride by 2040; the city be inclusive, resilient, innovative and vibrant and people

share equally in the city’s prosperity and opportunity; the environment be protected

and enhanced and Brimbank’s diverse neighbourhoods and housing offer something

for everyone.

The strategic direction to achieve the vision are provided under three themes. These

are:

1. People



The community to be healthy and active



Services and facilities are responsive to community need



Brimbank is a vibrant and recognised cultural capital



The community feels safe and free from harm

2. Place



All modes of transport are well connected and accessible



Public spaces showcase quality urban design, are accessible to all and are

clean and well maintained



The community will live sustainably and engage with a healthy and protected

natural environment

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3. Prosperity



Everyone has access to education, training and life-long learning to support

their learning and employment aspirations



Brimbank is a major hub for employment, innovation and investment



Housing meets the needs of different people in the Brimbank community

Council’s procurement strategy shall support the Brimbank Community Vision

including but not limited to those related to sustainability, protection of the

environment, corporate social responsibility and meeting the needs of the local

community.

9.2. Achieving value for money

9.2.1. Requirement

The principle of responsible financial management will be applied to all procurement

activities.

Council’s procurement activities will be carried out on the basis of obtaining value for

money.

This means the total cost of ownership over the lifetime of the requirement is

consistent with acceptable quality, reliability and delivery considerations. Lowest

price is not the sole determinant of value for money.

This will be facilitated by:



Developing, implementing and managing procurement strategies that support

the coordination and streamlining of activities throughout the lifecycle;



Effective use of competition;



Greater emphasis placed on the procurement planning process to use

aggregated contracts where appropriate;



Identifying and rectifying inefficiencies in procurement processes;



Developing cost efficient tender processes including appropriate use of e

solutions;



Council staff responsible for providing procurement services or assistance

within the Council providing competent advice in terms of available products

and agreements; and



Working with suppliers to create relationships that are professional and

productive, and are appropriate to the value and importance of the goods,

services and works being acquired.

9.3. Role of specifications

Specifications used in quotations, tenders and contracts are to support and contribute

to Council’s value for money objectives by:



Ensuring impartiality and objectivity;



Encouraging the use of standard products;

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

Encouraging sustainability, local businesses and social outcomes; and



Eliminating unnecessarily stringent requirements.

9.4. Performance measures and continuous improvement

Appropriate performance measures and reporting systems are to be established and

used to monitor performance and compliance with procurement policies, procedures

and controls.

Performance measures developed are to be used to:



Evaluate contractor performance;



Evaluate compliance with procurement policies, procedures and controls;



Evaluate opportunities to improve processes;



Incorporate process improvements; and



Determine if all contractual obligations are successfully met.

Non-compliance of procurement, policies, procedures and controls will be reported on

a regular basis to the Executive Management Team by the Manager Business

Support.

Any breaches will be dealt with in accordance with the Brimbank Employee Code of

Conduct.

9.5. Corporate Social Responsibility (CSR)

CSR is about taking positive action to demonstrate Council’s commitment to the local

community and environment.

Council recognises that it’s purchasing activities, buying power and supply chain has

a material impact on the municipality. To deliver on the Brimbank Community Vision

2040 and its 10 Strategic Directions, Council should use procurement as an

opportunity to generate environmental, economic and social benefits beyond the

procurement activity.

In the procurement process, Council will consider the following:



Environmental sustainability



Economic sustainability



Social sustainability

Council should consider the above factors in all purchases through direct or indirect

procurement processes and may allocate a weighting in a public tender evaluation

criteria having regard to the nature and value of the purchase/contract of up to 10%

9.5.1. Environmentally Sustainable Procurement

The Brimbank Community Vision 2040 aims to transition to a low carbon economy

and adapt to the impacts of climate change. It is committed to provide an

environment to the community that is protected and enhanced so that the

community will live sustainably and engage with a healthy and protected natural

environment.

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‘Sustainability’ means our actions meet current needs without compromising the

prospects of future generations. In achieving this, Council will incorporate

environmental considerations alongside social and economic values in our decision

making processes and support our community to become sustainability stewards.

The Brimbank Climate Emergency Plan (the Plan) acknowledges the 21st century as

a period of climate emergency, and that this urgent crisis presents an opportunity for

positive social change.

Under the Plan, Brimbank commits to lead the community towards a target of zero

net greenhouse gas emissions for Council operations by 2030, and for the Brimbank

municipality by 2040, in accordance with the contemporary advice of the United

Nations Intergovernmental Panel on Climate Change.

The Plan commits Council to take account of the Climate Emergency Plan in all

decision making and to position the climate emergency response as the focus of

organisational strategic coordination until the emergency is declared ended.

The Plan outlines that Council will explore ways for procurement activities to

contribute to the circular economy, and to connected issues such as social

procurement. The circular economy is about recognising that the goods and services

we use have a big environmental impact, and so we need to choose wisely, design

out waste and pollution, keep products and materials in use, and regenerate natural

systems. The Plan has a number of immediate, short-term and ongoing actions to

support the development of a circular economy.

Council is also committed to delivering economic, social and environmental benefits

across the facilities that it owns, operates or leases through the Brimbank

Environmentally Sustainable Design Framework, which aims to ensure that

environmentally sustainable design (ESD) measures are consistently incorporated

into the construction and management of Council buildings and facilities.

The procurement process will:



Include reference to Council’s ESD Framework in tendering and quotation

design and construction templates;



Ensure the evaluation criteria includes ESD for design and construction; and



Ensure the evaluation panel allocates a weighting for ESD.

Contract managers should engage with relevant Departments, where possible, in

relation to achieving the following Environmentally Sustainable objectives as part of

their procurement processes:



Reduce greenhouse gas emissions



Promote a circular economy



Minimising waste production

Reduce water consumption and activities that impact biodiversity

9.5.2. Economic sustainability

The Brimbank Community Vision 2040 provides Strategic directions for a Prosperous

Community which includes improving the local economy by making Brimbank as a

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major hub for employment, innovation and investment. Council is commitment to

providing local employment and business development opportunities through

facilitation, promotion and advocacy to ensure increased and appropriate industrial,

commercial and residential development.

Economic development is about improving the Brimbank community’s economic

wellbeing and quality of life. Council has a significant role in continuing to facilitate

Brimbank’s sustainable growth and development.

As the economic hub of Melbourne’s west, Brimbank will be characterised by

dynamic, competitive and innovative businesses; accessibility and connectivity;

economic and social participation and wellbeing; vibrant places and high quality

development; environmental resilience; and leadership, collaboration and

partnerships.

One of the most effective ways of growing the local economy is to strengthen and

build the capacity of existing businesses.

Economic sustainable procurement can support the growth of the local economy

through the use of local services and suppliers, and promote local employment

opportunities.

The procurement process will support the use of local services and suppliers, and

promote local employment opportunities.

9.5.3. Social sustainability

The Brimbank Community Vision 2040 aims to achieve a city that will be inclusive,

resilient, innovative and vibrant and our people share equally in the City’s prosperity

and opportunity. Every decision we make and every dollar we spend is with the aim

of continually improving the lives of the people who live in our city. In our decision

making and delivery of Council business we will place our community first.

Council is committed to the goal of a Prosperous Community. It has a strong

commitment to the principles of access, equity, community participation and human

rights, and aims to create a more just society where difference does not lead to

disadvantage. It believes in an ‘equity approach’ at a structural, community and

individual level, which in some cases allows for preferential, additional or targeted

support to ensure everyone receives fair and balanced access to services, facilities

and opportunities.

The Brimbank Social Justice Charter outlines Council’s intent to increase

opportunities for the most disadvantaged groups in our community to access services

and participate in community life.

Council recognises that there are a wide range of barriers that need to be addressed

to achieve social justice for all. These barriers disproportionally affect certain

individuals and groups in our community and Council is committed to integrating the

principles of social justice into all of its policies, plans and procedures.

Social procurement generates positive outcomes by building on initiatives already

undertaken by Council to enhance sustainable and strategic procurement practice. It

further enables Council’s procurement practices to effectively contribute towards

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building stronger communities and meeting its social objectives particularly for social

inclusion, employment and training, and developing the local economy.

Contract managers, should engage with relevant Departments, where possible to

achieve the following Social Procurement objectives as part of their procurement

processes:



Opportunities for young people (aged 15-25) experiencing barriers



Opportunities for disadvantaged people



Opportunities for Aboriginal & Torres Strait Islander People



Opportunities for people with a disability



Improve gender equity

10. Apply a consistent and standard approach

Council will provide effective and efficient commercial arrangements for the acquisition of

goods and services.

10.1. Standard processes

Council will provide effective commercial arrangements covering standard products

and provision of standard services across Council to enable employees to source

requirements in an efficient manner.

This will be achieved via establishing the following:



Pricing where relevant;



Processes, procedures and techniques;



Tools and business systems (e.g. implementing appropriate e-tendering, e

evaluation, e-catalogue or e-sourcing arrangements);



Reporting requirements; and



Application of standard contract terms and conditions.

10.2. Management information

Council seeks to improve its performance by capturing and analysing procurement

management information in a variety of areas including:



Volume of spend;



Number of transactions per supplier;



Compliance;



Supplier performance



Risk;



User satisfaction; and



Category management.

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11. Strategic procurement and supplier management

Council recognises that in order to achieve sustainable value, a strategic assessment of the

appropriate ‘channel to market’ should be undertaken – whether to go to market on its own,

participate in regional or sector aggregated project or panels, access State Government

panel agreements or other means.

11.1. Developing and managing suppliers

Council recognises the importance of effective and open working relationships with its

suppliers and is committed to the following:



Managing existing suppliers via the appropriate development programs and

performance measures to ensure the benefits are delivered;



Maintaining approved supplier lists; and



Developing new suppliers and improving the capability of existing suppliers

where appropriate.

12.Staff training and development

B-train module has been developed to train employees who have responsibility for

procurement. In addition, Purchasing system and Contracts System training is provided on

needs basis when users are added to the system.

Council staff while engaged by Council who have budgetary, purchasing and contract

management responsibilities are trained and provided with relevant and up to date

information.

In order to ensure statutory requirements and the requirements of this Policy are adhered

to, Council will:



Conduct training for delegated and other new officers commencing at Council;



Provide a copy of this Policy, associated procedures and guidelines to new officers;



Conduct refresher training for all delegated and responsible Council staff throughout

each financial year; and



Communicate as required all new and updated procedures, forms, templates,

standards and documentation.

13.

Compliance Statement

Section 9(1) of the

(Act) requires Council to give effect to the

overarching governance principles, in the performance of its role. Section 9(2) of the Act

specifies the governance principles as follows:

a. Council decisions are to be made and actions taken in accordance with the relevant law

(Compliance with the law)

;

b. Priority is to be given to achieving the best outcomes for the municipal community,

including future generations

(Achieve best outcomes for the community)

;

c. The economic, social and environmental sustainability of the municipal district, including

mitigation and planning for climate change risks, is to be promoted

(Promote the

sustainability of the municipality)

;

d. The municipal community is to be engaged in strategic planning and strategic decision

making

(Engage the community in strategic planning and decision making)

;

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e. Innovation and continuous improvement is to be pursued

(Strive for innovation and

continuous improvement)

;

f. Collaboration with other Councils and Governments and statutory bodies is to be sought

(Collaborate with all other levels of government and government agencies)

;

g. The ongoing financial viability of the Council is to be ensured

(Secure the ongoing

financial viability of Council)

;

h. Regional, state and national plans and policies are to be taken into to account in

strategic planning and decision making

(Strategic planning and decision making

must take into account plans and policies in operation at all levels)

;

i. The transparency of Council decisions, actions and information is to be ensured

(Council

decisions, actions and information must be transparent).

In developing the Procurement Policy, Council has considered and given effect to the

overarching governance principles, as summarised below:

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Governance Principle

Considerations

(a) Compliance with the law

This Policy is developed to comply with

sections 108 and 109 of the Local

Government Act 2020

(b) Achieve best outcomes for the community This Policy recognises that Council’s

purchasing activities has a material impact on

the municipality and procurement is an

opportunity to generate social, economic and

environmental benefits beyond he

procurement activity.

(c) Promote the sustainability of the municipality This Policy is aligned with the objectives of

Council’s Climate Emergency Plan and

Environmentally Sustainable Design

Framework, which aims to ensure that

environmentally sustainable design measures

are consistently incorporated into the

construction and management of Council

buildings and facilities.

(d) Engage the community in strategic planning

and decision making

Not applicable for the Policy.

(e) Strive for innovation and continuous

improvement

This Policy acknowledges that continuous

improvement practices for identifying and

implementing initiatives to reduce cost and

complexity, improve productivity and buyer

convenience are a key element of

procurement best practice.

(f)

Collaborate with all other levels of

government and government agencies

This Policy requires that contracting,

purchasing and contract management

activities use strategic procurement practices

and innovative procurement solutions to

promote sustainability and best value, in

particular making use of collaboration and

partnership opportunities.

(g) Secure the ongoing financial viability of

Council

This Policy requires Council to undertake

efficient and effective procurement activities

to ensure that value for money is obtained.

The value for money principle will take into

account all relevant costs and benefits of

each proposal throughout the procurement

cycle.

(h) Strategic planning and decision making must

take into account plans and policies in

operation at all levels

This Policy supports the Community Vision,

Council Plan and all other strategic plans and

policies as outlined in section 1.2.

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(i)

Council decisions, actions and information

must be transparent

This Policy outlines that Council maintains

consistency in the approach to procurement

across the whole organisation through

coherent frameworks, policies and

procedures. The test for adequate

accountability is that an independent third

party must be able to clearly see that a

process complying with this policy has been

followed and that the process is fair and

reasonable.

All Council staff must be able to account for

all procurement decisions made over the

lifecycle of all goods, services and works

purchased by Council and provide feedback

on them. All procurement activities are to

provide for an audit trail for monitoring and

reporting purposes.

Council will conduct its procurement activities

in a fair, honest and open manner,

demonstrating the highest level of integrity,

consistent with the public interest.

History of amendment

Rev Review date

Reason for amendment

Next review date

27/10/2007

Select date

A 9/05/2011

Annual review/new format

9/05/2012

B 9/05/2012

Annual review

9/05/2013

B 29/10/2013

Annual review

29/10/2014

B 29/10/2014

Annual review

29/10/2015

C 9/02/2016

Annual Review

9/02/2017

D 21/02/2017

Changes to section 6.2 Quotations

9/02/2018

E 19/06/2018

Annual review/new format

19/06/2019

F 21/05/2019

Annual Review

21/05/2020

G 23/06/2020

Annual Review

23/06/2021

H 31/08/2021

Amendments based on

30/06/2025

Approved by council:

Date approved by council: xxxxxxxx