Doing Business with WA Local Government Western Australian Local - - PowerPoint PPT Presentation

Doing Business with WA Local Government

Western Australian Local Government Association (WALGA)

What’s coming up…..

• The rules Local Government has to follow…
• The Invitation
• Preferred Supplier Arrangements
• Tips for responding

The Procurement Framework

Local Government Procurement Framework

Local Government Act 1995 Local Government (Functions and General) Regulations 1996 Purchasing Policy Regional Price Preference Policy Panel of Prequalified Suppliers Policy Code of Conduct Delegations Authority to Purchase Procurement Guidelines & Forms Procurement Systems Competition and Consumer Act 2010 (Fed) Fair Trading Act 2010 (WA) Common Law Corruption, Crime and Misconduct Act 2003 Public Sector Management Act 1994

A u d i t C

• m

p l i a n c e

Underlying principles

Value for Money Procedural Fairness Market Competitiveness Accountability Compliance Openness and Transparency Sustainability

Local Government Regulations

• Governed by the Local Government Act 1995 and

associated Regulations

• Requirement to publicly invite tenders (state wide)

if contract value is expected to be

$150,000 exc GST (unless exemption applies)

Local Government Regulations

• Sets out:

– Requirement to publicly invite – Anti-avoidance – Minimum time to be open to public – Receiving and Opening – Late responses – Rejecting and accepting tenders – Additional information – Notification of outcome – Contract variation

Exemptions

• Exemption to publicly invite Tenders exist when

contracting with:

– WALGA Preferred Suppliers and other exempt suppliers – no limit – Australian Disability Enterprises – No Limit – Suppliers pre-qualified under a panel established by the Local Government (if local policy permits) – Emergency provisions – Genuine sole supply (unique nature)

Purchasing Policy

Each Local Government must have a purchasing policy which outlines how it must procure:

• Thresholds – under $150,000
• how many quotes
• written or verbal?
• Sole supplier
• Emergency purchasing
• Pre-qualified supplier panels

In carrying out its functions a Local Government is to use its best endeavours to meet the needs of current and future generations through an integration of environmental protection, social advancement and economic prosperity

Section 1.3(3) of the WA Local Government Act 1995

Sustainable Procurement

Positive environmental, social and economic impacts possible over the entire life cycle.

• Environmental
• Social – indigenous, disabled, human rights, labour

practices

• Economic – best possible outcomes for ratepayers,

local economic benefit

“ ”

Local Government

Local Economic Benefit Achieved through:

• Regional Price Preference Policy
• Local Panel
• Local Economic Benefit Criteria
• Preferred Supplier

Arrangement: zone/local filter

Local Panels

Particularly useful for those areas not covered by Preferred Supplier Arrangements e.g.

• Trades
• Automotive
• Construction

Defined process by Act

The Invitation to …..

Process

• Must satisfy selection criteria
• Due diligence
• Reach a Value for Money consensus decision
• Approved/Endorsed

by CEO and/or Approved by Council

Value for Money

• Purchasing Decisions are based on ‘Value for Money’
• Price is only one contributing factor to the overall Value

for Money assessment

• No guarantee to local suppliers
• Must

satisfy

• ther

Value for Money considerations (selection criteria)

• Process must demonstrate fairness and equity

Conditions

• Tenderers should not rely on any information provided

by any person other than the person listed

• Do not canvas!
• No Late Responses
• Selection Criteria

The Panel

Compliance Criteria - minimum requirements to be met by Tenderers

• Tender Profile – ABN – full details – referees
• Financial position
• Conflict of Interest: actual, potential or perceived
• Insurances:
• Public Liability
• Motor Vehicle, plant and equipment
• Workers’ comp as per the Act
• Departures, exclusions from conditions of contract (yes/no) then

fill out relevant attachment

• Any critical assumptions you have made relevant to the tender

(pricing, ability or method of providing the requirements)

The Panel

Qualitative Criteria (Weighted) – basis for evaluating “how well Tenderer is suited to meet the requirement”.

• Demonstrable Projects

35%

• Organisational Capability

30%

• Key personnel

20%

• Local Content

15%

The Panel

Community Benefit The Tenderer must provide details of the benefits to the Shire from their involvement in a contract. Examples may include:

• Local Employment;
• Money they spend in local community
• Use of local service providers;
• Use of local food and beverage providers;
• Use of local accommodation for work crews;
• Sourcing of materials and consumables locally.
• Costs of above!

Price Basis

• Pricing can be:
• fixed for term of contract
• Hourly rate
• schedule of rates
• Include everything required: delivery, unloading and

all applicable levies, taxes etc.

• Complete the spreadsheet “price schedule”

Price Assessment

• Offered pricing must meet the requirements as specified

in the Request.

• Assessment of price may be based on Total Cost of

Ownership, including:

• Acquisition price
• Delivery (transport, freight)
• Installation / commissioning / testing
• Periodic and adhoc maintenance
• Training, manuals etc
• Contract management costs (hidden)
• Warehousing / inventory
• Disposal costs

Regional Price Preference

Only for evaluation purposes

Supplier % Reduction Region Local Business 10% (Goods and Services) 5% (Construction) Within Shire

Preferred Supplier Arrangements

Benefits

• Less Tenders to respond to
• Ease of Access - Tender

Exemption status

• High visibility to all local

governments

• Quality Stamp of Approval
• Market Analysis reports
• Simplified procurement

Infrastructure and Civil ICT, Energy and Services Fleet, Waste and Consumables

Benefits

Inclusive not exclusive

• Encouragement to Local Councils to nominate

regional/local suppliers

• Zone/Local filter
• Supplier can cover one

zone or more– doesn’t have to be whole state

• 850+ suppliers across

37 panels

• eQuotes platform

The Issues and Tips

Key Issues

• Make unsubstantiated claims
• Reliance on reputation

Question: Provide a list of the personnel from your organisation that will be involved in this project, specifying their particular roles and relevant experience. Nice try but I’m pretty sure Romans built Colosseums. David’s reputation is built on honest hard work. The Greeks are remembered for their coliseums, David is remembered for 123 Venice Road, or the 4 storey unit development at The Horses Mews, 226 River Road, 29 Sailing Mast Quay, only to mention a few of the “Quality” projects completed by Dave.

Key Issues

• Provide an inappropriate level of detail

Comments from evaluation process relating to qualitative criteria: 72 words, including the questions, is insufficient information for the evaluation panel to consider the submission favourably. More detail is required to assess the response.

Far too little information Far too much information

Response to a Request for Quote: 152 pages – too much!

Key Issues

• Getting the information right
• Check your facts and details
• Don’t rely on templates
• Display lack of care and effort
• Entitlement by local suppliers

But I’m Local! Excerpt from Shire of Wiluna minutes Painting company Master Strokes initially requested a variation on their Tender price on the basis that they thought the Shire was located in Waroona.

Tips on Preparing Responses

• Focus on the Local Government’s needs
• Read and abide by the Conditions of Tendering
• Match your offer to the opportunity

– Address every component of the Selection Criteria – Be succinct!

• Understand and focus on Value for Money

– Decision won’t just be based on lowest price

• Don’t’ give us the line:

– “References and insurances available on request” – We are requesting!

….And More Tips

• Be honest and realistic
• Assume the Shire knows nothing about you and your

business – it’s all got to be on paper

• If in doubt – ask the Contact Person!

– Any uncertainties? – Missing Information?

• If unsuccessful, request a debrief

– Valuable tool to improve next time

Further Information

• Name:

Alison Maggs

• Telephone: 08 9213 2016
• Email:

AMaggs@walga.asn.au