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Item 9.2 - Attachment 1 |
DRAFT Procurement
Policy |
Policy 287 - Procurement Policy
Background
Parramatta City Council is committed to implementing
best practice procurement procedures and complying with legislative
requirements. We also care about social, economic and environmental
sustainability for our city and focus on delivering positive outcomes for our
communities. We are therefore committed to ensuring that our procurement
processes contribute to our understanding and management of the impacts of our
operations.
We recognise that improving our performance is an
ongoing process and that our suppliers, both large and small, are important
partners in achieving our goals. Through this policy, Parramatta City Council
wishes to support suppliers that demonstrate a commitment to providing goods
and services that are high quality, competitive and sustainable.
This policy has been reviewed to incorporate
continuous improvement in procurement and current sustainability concepts.
Objectives
This Policy has been developed to establish how
Council’s procurement practices can support the implementation of Council’s Corporate
Strategy, Parramatta 2025, Guiding Principles and Corporate Environmental
Policy.
By building upon our existing business principles, it
is our objective to ensure that our procurement practices:
§ make
efficient and effective use of our own and our suppliers’ resources
§ ensure fair,
open and effective competition
§ are ethical
and compliant with legislation
§ improve the
local amenity of communities and are socially responsible
§ identify
and manage risks to maximise opportunities and manage potentially adverse
consequences
§ use our
skilled resources to provide advice and guidance
§ encourage
sustainability and economic development in Western Sydney
§ foster a
viable Australian market for sustainable products and services, and
§ ensure Council
and its staff act within their delegations and are accountable for
decision-making in procurement
Scope
This policy applies to all types of procurement,
including acquisition, provision and disposal of materials, services,
facilities and human resources by Parramatta City Council. The principles in
this policy, and the associated guidelines for implementation, must be followed
by all employees (full time, part time, temporary and casual) as well as all consultants
and contractors employed in any of Council’s business units.
Relationship
to legislation
Council has defined responsibilities under the NSW
Local Government Act 1993 and the Local Government (General) Regulation 2005 to
undertake certain functions that include calling for tenders in the
circumstances and manner prescribed, and managing and improving the resources
of their area taking into account sustainability and the needs of the
community.
Related
Strategies, Plans and Policies
Guidelines
and procedures for implementation of this Policy are contained in:
§ Procurement
Guidelines - Revised as at March 2011
This
Policy also has direct relationship to the following Council policies and must
be read in conjunction with these, where applicable:
§ Corporate
Environmental Policy
§ Asset
Management Policy
§ Disposal
of Assets Policy
§ Statement
of Business Ethics
§ Code of
Conduct
§ Customers,
Compliments and Complaints Policy
Policy
We
will ensure value for money through a balanced whole-of-life evaluation that
includes consideration of financial, social, ethical, local economic and
environmental factors. To deliver on our commitment to procurement that meets
operational requirements and achieves the highest commercial and sustainability
outcomes, it is Council’s policy to:
§ Comply
with applicable laws and documentation.
§ Avoid
unnecessary consumption, manage demand for goods and services, and maximise the
efficiency of those products and services we do purchase.
§ Establish
procedures that ensure fair, open and effective competition, including by
ensuring that tenders are called when required by legislation.
§ Foster
relationships with suppliers in a manner that is ethical, efficient, fair and
transparent, and that respects their confidential information.
§ Exercise
responsible financial management and accountability for actions.
§ Support
the establishment of a diverse supply chain, with particular focus on entities
that deliver or have potential to deliver social, economic and/or environmental
benefit to the Western Sydney region.
§ Support
Australian owned suppliers and / or suppliers who manufacture in Australia,
where doing so is appropriate and permissible by law, focusing on those in the Western
Sydney region.
§ Support
suppliers and industry groups that develop and/or apply innovative responses in
relation to sustainability issues.
§ Establish
performance agreements with our key suppliers, monitor their performance over
time.
§ Develop
practical and transparent tools for assessing and providing feedback to
existing and potential suppliers about their proposals and performance.
§ Identify
and manage the risks associated with procurement.
To identify the optimum ways to select, use and
dispose of products and services, our continual improvement strategies for
delivering on this Policy include:
§ Ensuring
all staff understand and can effectively implement efficient and effective sustainable
procurement as required by this Policy.
§ Ensuring
all staff are accountable for their procurement decisions and actions.
§ Engaging
relevant stakeholders and skilled staff early in the procurement process.
§ Communicating
this policy to our existing and potential suppliers.
§ Engaging
our suppliers on strategies for achieving our procurement objectives and assist
them to make improvements where appropriate.
§ Monitoring
the effectiveness of implementing this Policy by measuring, reviewing and
reporting on our sustainable procurement performance.
The Local Government Act
1993 and the Local Government (General) Regulation 2005 specify contracts for
which a tender is required. This legislation describes those contracts
using both a financial measure (presently $150,000) and duration measure (being
instalment payable or received over a period of 2 or more years. This
policy requires (amongst other things) a whole of life evaluation in
procurement. To avoid potential uncertainty in the application of the
procurement laws referred to above, it is Council policy to conduct a tender if
the relevant contract or service exceeds the financial measure or the duration
measure or both.
Review
This policy will be reviewed
every two years in conjunction with the associated Guidelines for
Implementation and other documentation.
Amendments
Original Policy – 19
September 2007