Brisbane City Council
Annual Procurement Policy and
Contracting Plan 2014 - 2015
1
TABLE OF CONTENTS
BRISBANE CITY COUNCIL ....................................................................................................................... 1
ANNUAL PROCUREMENT POLICY AND CONTRACTING PLAN 2014 - 2015 ......................................... 1
INTRODUCTION ........................................................................................................................................ 3
CHARTER AND VALUES OF BRISBANE CITY COUNCIL ........................................................................ 3
COUNCIL PROCUREMENT AND CONTRACTING OBJECTIVES ............................................................ 3
PROCUREMENT PRINCIPLES ................................................................................................................. 4
PROCUREMENT POLICY AND GUIDELINES........................................................................................... 4
STRATEGIC PROCUREMENT & CONTRACTING APPROACH ............................................................... 4
SUPPLY POSITIONING MATRIX............................................................................................................... 5
PLANNING FOR PURCHASES ................................................................................................................. 6
DISPOSALS ............................................................................................................................................... 7
CONTRACT MANUAL ................................................................................................................................ 7
COMPLAINTS PROCESS .......................................................................................................................... 7
TRAINING CAPABILITY AND COMPETENCIES ....................................................................................... 7
SUSTAINABLE PROCUREMENT POLICY ................................................................................................ 7
ZERO HARM .............................................................................................................................................. 9
SUPPLY MARKET DEVELOPMENT AND ENHANCEMENT ..................................................................... 9
FORWARD CONTRACTING SCHEDULE .................................................................................................. 9
FORWARD DISPOSAL SCHEDULE .......................................................................................................... 9
DELEGATIONS POLICY ............................................................................................................................ 9
POLICY FOR SIGNIFICANT CONTRACTING PLANS ............................................................................... 9
SCHEDULE A (CURRENTLY UNAVAILABLE) ........................................................................................ 10
EXEMPTIONS FROM CONTRACT MANUAL PROCESS 2014 – 2015 ................................................... 10
SCHEDULE B .......................................................................................................................................... 11
ANNUAL CONTRACTING OBJECTIVES 2014 – 2015 ............................................................................ 11
SCHEDULE C .......................................................................................................................................... 21
ANNUAL FORWARD CONTRACTING SCHEDULE 2014 – 2015 ............................................................ 21
MAJOR CONSTRUCTION ....................................................................................................................... 22
GOODS AND SERVICES (SIGNIFICANT) ............................................................................................... 25
GOODS AND SERVICES (NON-SIGNIFICANT) ...................................................................................... 27
SCHEDULE D .......................................................................................................................................... 30
ANNUAL FORWARD DISPOSAL SCHEDULE 2014 – 2015 .................................................................... 30
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INTRODUCTION
As a major entity headquartered in South East Queensland, Brisbane City Council recognises the
importance and impact of its operations on the business and social community within Queensland. Council
operates in a number of markets and undertakes procurement and disposal activities in relation to a range
of goods, services and works. Expenditure by Council on goods, services and works in markets varies
according to organisational need. Council must adapt to varying degrees of market complexity and supply
market capability.
Council recognises the importance that procurement has for the organisation and created the Strategic
Procurement Office within its Organisational Services division. The Strategic Procurement Office operates
with other Council business units and divisions to achieve the objectives outlined in the Council Charter
and Values through the implementation of a strategic approach to procurement. The objectives of Council
will be achieved through the sound contracting principles, as outlined in the City of Brisbane Act 2010.
CHARTER AND VALUES OF BRISBANE CITY COUNCIL
Brisbane City Council aims to:
• enhance the quality of life of the people of Brisbane, build vibrant communities and improve the
quality and value of services
• support the sustainable development of the regional economy and improve the city’s
infrastructure
• protect and enhance the city’s natural and built environments
• ensure the financial success and viability of Council.
Council expects that all employees display the following values in their dealings with members of the
public:
• Passion for Brisbane
• Responsive customer service
• Respect for people
• Courage to make a difference
• Working together
• Getting things done
• Value for money
COUNCIL PROCUREMENT AND CONTRACTING OBJECTIVES
Council has adopted a Sustainable Procurement Policy that identifies the key objectives that any
procurement will seek to further. The policy also seeks to combine a number of Council responsibilities
and objectives in accordance with the Brisbane Vision 2031, including:
•
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Social & Community: A commitment to advancing the social needs and requirements of
Brisbane communities to advance the quality of life for all
Accessibility: Ensuring that Brisbane is an accessible, connected city
Environmental: Procurement outcomes that recognise the value and long term benefits of
sustainable and best practices
Workplace Health & Safety: Zero Harm is a consideration at every stage of the procurement
process
Business Development: The development of local business and promotion of innovative
solutions to foster and support Brisbane’s economic development
Financial: Value for money
Compliance: Probity, accountability and compliance with legislation for procurement and
disposal outcomes
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PROCUREMENT PRINCIPLES
Chapter 4 Finances and accountability, Part 3 Financial sustainability and accountability, Section 103 (3)
of the City of Brisbane Act 2010, details the sound contracting principles that Council will apply to
contracts for the supply of goods and/or services, the carrying out of work and the disposal of assets. The
sound contracting principles are:
A.
B.
C.
D.
E.
Value for money
Open and effective competition
The development of competitive local business and industry
Environmental protection
Ethical behaviour and fair dealing
The above sound contracting principles will be applied via the Contract Manual and the Annual
Procurement Policy and Contracting Plan.
The sound contracting principles will be met through sourcing new arrangements and also ensuring that
that current arrangements are reviewed to confirm they are meeting both business and performance
expectations. It is the intention that contracts with optional extension provisions will be reviewed and
extended, subject to value for money, satisfactory performance, ongoing business requirements and the
sound contracting principles.
PROCUREMENT POLICY AND GUIDELINES
In formulating decisions that involve procurement, contracts, tendering or disposal activities, Council
employees will have access to a number of policies, guidelines and procedures including the following:
•
•
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•
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•
•
•
•
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City of Brisbane Act 2010
City of Brisbane Regulation 2012
Corporate Plan
Contract Manual
Procedures for Procurement and Disposal
Annual Procurement Policy and Contracting Plan
Significant Contracting Plans
Project Governance Policy
Project Management Centre of Excellence
Corporate Sustainability Policy
Code of Conduct
Total Asset Management Framework
Risk Management Policy
STRATEGIC PROCUREMENT & CONTRACTING APPROACH
Council has introduced a strategic contracting approach. Fundamental to the implementation is the
introduction of a comprehensive approach to strategic sourcing and category management. This involves
understanding the marketplace, the risks in the procurement process and how best to leverage value.
Techniques used include:
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•
•
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category planning including spend, market and risk analysis
7 Step sourcing methodology to control sourcing activity
supply positioning matrix (to understand where to direct effort)
ongoing value improvement through vendor management and demand management initiatives
Further details on the 7 Step process and the supply positioning matrix are covered below.
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7 STEP SOURCING METHOD
Council utilises a 7 step best practice sourcing methodology to assist in achieving the Sound Contracting
Principles.
Profile
Sourcing
Group
Select
Sourcing
Strategy
Generate
Supplier
Portfolio
Select
Implementation
Path
Negotiate and
Select
Suppliers
Execute
Integration
with Suppliers
Benefits
Tracking
Compliance with the above methodology represents a best practice framework, which works towards
meeting Council’s commitment to planning for procurement.
SUPPLY POSITIONING MATRIX
In analysing expenditure, the Strategic Procurement Office applies a Supply Positioning Matrix
methodology that is based around identifying and classifying Council spend on the basis of procurement
risks and relative expenditure.
The Supply Positioning Matrix assists in allocating the responsibilities and delegations associated with the
vast range of procurement activities conducted by Council. For routine activities, responsibility for
adhering to Council Procurement Principles may be undertaken by divisions and business units, while the
Strategic Procurement Office will focus on strategic or critical areas.
The spend for the financial year 2014/15 will only be significant for a limited number of goods, services
and works. The Strategic Procurement Office has developed a sourcing program that will deliver its
mission to source goods, services and works that meet the needs and requirements of users within
Council, represent the public interest and drive the best value for money for Brisbane. The Forward
Contracting Schedule for the financial year 2014/15 is included as Schedule C.
Bottleneck
SPO Sources with
support from
Divisions & Business
Units. Category
Manager actively
manages supplier.
Procurement
Risk
Routine
Either SPO or Divisions
& Business Units Source.
Limited Category
Management will be
provided.
Critical
Plan for Significant
Contracting required.
Strategic Procurement
Office sources and
intensively manages to
drive value
improvement.
Leverage
SPO sources with
support from Divisions
& Business Units.
Category Management
maintain an overview of
supplier performance.
Relative
expenditure
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PLANNING FOR PURCHASES
The Strategic Procurement Office will develop effective sourcing strategies with suppliers, ensures
appropriate business planning is conducted for areas of major spend and seeks to ensure vendors deliver
benefits that include economic and qualitative outcomes. Business plans from divisions are incorporated
into sourcing plans. These sourcing plans include a review of the supply market, market capabilities and
limitations along with negotiation strategies and potential approaches to the market.
For all areas of Council spend, an assessment is made as to the market dynamics, the complexity of
securing supply and the relative expenditure. For all categories of spend, specific plans for the
procurement and management of the activity are developed. Plans for purchases will vary from year to
year and depend upon the operational requirements of Council. The analysis process measures the
procurement principles against a number of criteria including competitive pricing, an ability to contribute to
the environmental and social goals of Council and the avoidance of harm to Council and the community.
An outcome of the planning process described above is the identification of items that may be required in
the future by Council to meet operational and investment expenditure. These items are contained in the
Forward Contracting Schedule.
The types of procurement activities proposed for 2014/15 fall broadly into five categories which are
Construction, Operations and Maintenance, Commodities and Services, Information and Communications
Technology, and Fleet. Market assessments are continually updated by Category Management. The
processes by which Council engages the marketplace and sources and obtains its requirements are
detailed in Council's Contract Manual and procedures for Procurement and Disposal.
The application of the sound contracting procurement principles will be measured by adherence to
Council's Contract Manual and Annual Procurement Policy and Contracting Plan. The Strategic
Procurement Office will develop and prepare a business plan to link the overall Council Corporate Plan
objectives to the sound contracting principles.
Key procurement initiatives are to continue to use strategic sourcing measures for the upcoming capital
procurement program and improving procurement practices to increase speed of service, enhance value
for money and improve quality of supplier selection.
Subject to approved exemptions, these procedures require that Council invite tenders or proposals for the
carrying out of work or the provision of goods, services and works estimated to be above $250,000.
Council has determined that frequent sourcing does not always ensure improved value for money nor
does it necessarily deliver the best result in terms of sustaining open and effective competition.
The duration of a contract within routine and bottleneck areas will be established through category
planning and market analysis so as to maximise value for money. However, to deliver best value while
also achieving open and effective competition, Council will apply best practice and engage the
marketplace at least once in each five-year period unless approval is granted for greater than this period
at the post market stage or on the basis a rationale is approved that it is in the public interest not to
engage the market within the five year period. Council may engage the market more frequently in
circumstances where there is change within Council, the overall market or given market changes, market
research indicates that more frequent sourcing would deliver a better outcome, or the best practice
benchmark change.
Where existing suppliers demonstrate continuous value improvement and a high quality of service,
arrangements are intended to be renegotiated and extended up to a maximum total contract period of five
years. The effect of this approach will be to eliminate unnecessary sourcing activity and allow the Strategic
Procurement Office resources to be directed at categories and contracts where value for money will be
better achieved. Full details of exemptions from the standard Contract Manual processes are contained in
Schedule A.
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DISPOSALS
The types of disposal activities proposed for 2014/15 fall broadly into five categories which are
Commodities and Services, Operations and Maintenance, Information Technology and Telecoms,
Construction, and Fleet. All Council disposals must be consistent with the objectives and values contained
in this Annual Procurement Policy and Contracting Plan. As part of its Procurement and Disposal Strategy,
Council seeks to identify items that may have reached the end of their economic or useful life and/or may
be surplus to Council requirements.
Council will apply the principles detailed in its Contract Manual and seek outcomes in line with the sound
contracting principles that achieve best value for Brisbane. Council will utilise a range of strategies that will
include auctioning items to maximise the value and return on prior investments. Major items for disposal
will be detailed in the Forward Disposal Schedule. The Forward Disposal Schedule for the financial year
2014/15 is included as Schedule D.
CONTRACT MANUAL
Procedures have been developed for the benefit of Council employees, both within the Strategic
Procurement Office and other divisions or business units across Council for the procurement and disposal
of goods, services and works. These procedures outline procurement delegations and the approaches to
be taken when undertaking sourcing from the supply market and the management of subsequent
contractual arrangements. These procedures also outline the sound contracting principles and the
objectives of Council, ensuring consistency with Council’s Annual Procurement Policy and Contracting
Plan.
COMPLAINTS PROCESS
A complaints process has been adopted for handling complaints surrounding procurement and/or
disposals and will follow the framework as established by the Executive Manager, Office of the Chief
Executive. A process is in place for the receipt and handling of all complaint matters in accordance with
Council’s complaints process.
TRAINING CAPABILITY AND COMPETENCIES
The development of skills and competencies in the areas of supply chain management, negotiation,
category management, relationship and vendor performance management will continue to receive support
from Council. The attainment and retention of professional skills and continuing education for procurement
staff is supported by Council and will include using the training and certification offered by the Queensland
Government Chief Procurement Office.
The Chief Procurement Officer is responsible for the development of procurement capability within the
organisation and the enhancement of competencies by individuals within the Organisational Services
division. In order to achieve the human resource objectives of Organisational Services, the Divisional
Manager will provide a range of career opportunities for procurement professionals from a range of
providers and through developing a stimulating work environment that values creativity and innovation.
The Strategic Procurement Office’s centre led organisational structure will greatly facilitate development
and career advancement options.
SUSTAINABLE PROCUREMENT POLICY
Sustainable procurement as a process
Sustainable procurement is a process whereby organisations meet their needs for goods, services and
capital projects, in a way that achieves value for money on a whole of life basis in terms of generating
benefits not only to the organisation, but also to society, the economy and the natural environment
(working definition developed by the Queensland State Government, Chief Procurement Office).
Principles and elements of Sustainable Procurement in Council
Sustainable procurement involves Council buying goods, services and works in a way which complies with
the sounding contracting principles set out in the City of Brisbane Act 2010 and achieves long term
sustainability.
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The table below lists each of the sound contracting principles and highlights key elements of each
principle in a sustainability context.
Sound Contracting
Principle
Key elements of sustainability
Value for money

Achieves value for money over whole of life, rather than just initial cost
Open and effective
competition

Maintains accountability in the procurement process and the
expenditure of public money
The development of
competitive local
business and industry

Manages demand and supply to ensure that competitive markets and
the availability of resources are sustained in the long term (including
disaggregation demand where appropriate to support local supply
markets and avoid cultivation of monopoly suppliers)

Promotes economic development

Abides by the principles of sustainability, as set out in Council’s
Corporate Sustainability Policy

Minimises environmental harm and contributes to environmental
sustainability

Avoids unnecessary consumption

Abides by the principles of sustainability, as set out in our Corporate
Sustainability Policy

Maintains probity of process

Promotes socially responsible practices

Achieves equitable access and Zero Harm
Environmental protection
Ethical behaviour and
fair dealing
Applying Sustainable Procurement in Council
When we undertake our contracting activities, we will apply sustainable procurement by considering how
we can make a contribution to sustainable procurement and a sustainable Brisbane when we are:
(a)
Examining our organisational, project and/or community needs for an anticipated contracting
activity;
(b)
Developing strategies for a contracting activity;
(c)
Developing specifications for a contracting activity; and
(d)
Planning/undertaking evaluations as part of a contracting activity.
Definitions
In this plan:
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“Sustainable Procurement” means the ‘principles and elements of Sustainable Procurement in
Council’ as stated above.
“Contracting Activities” means activities for the making of a contract for: (a) the carrying out of
work; or (b) the supply of goods or services; or (c) the disposal of non-current assets.
Contracting activities excludes contracts of employment.
“Principles of Sustainability” means the principles stated in Council’s Corporate Sustainability
Policy.
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ZERO HARM
Brisbane City Council is committed to Zero Harm for its employees and the community. That is safety is
the first priority and it is not acceptable to cause harm to anyone. Council is an organisation that acts
proactively to prevent injuries, and actively encourages innovative management of work processes to
prevent injury or illness to anyone. The following are integral to achieving this goal:
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Development of a safety first culture where the key focus is on preventing incidents, injuries
and illnesses from occurring.
Development of an active and healthy workforce to further reduce the potential for injury and
illness.
Excellent post incident systems to prevent re-injury and ensure effective injury management
and return to work programs.
SUPPLY MARKET DEVELOPMENT AND ENHANCEMENT
Council supports the development of the local economy and the enhancement of supplier capability.
Specialist industry groups such as the Industry Capability Network will be accessed to assist in the
sourcing of competitive local suppliers. Where key supply markets are not meeting Council requirements,
Council will seek to work with the supply market to develop that capability. Council is also keen to
embrace sustainable procurement and has initiated a number of specific procurement initiatives in this
area.
FORWARD CONTRACTING SCHEDULE
The Forward Contracting Schedule for the financial year 2014/15 is included as Schedule C.
FORWARD DISPOSAL SCHEDULE
The Forward Disposal Schedule for the financial year 2014/15 is included as Schedule D.
DELEGATIONS POLICY
Delegations for contracting activities have previously been approved by Council. Further delegations are
also included in Schedule A of this Plan (Exemptions from the Contract Manual Process).
POLICY FOR SIGNIFICANT CONTRACTING PLANS
Significant contracts for which a plan will be prepared are those with:
•
estimated contractual expenditure of $10 million and above with procurement to be
commenced in 2014/15 year; and
•
high value/high criticality/high risk procurements as assessed by the supplier positions matrix,
to be sourced in the 2014/15 year.
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Schedule A
Exemptions from Contract Manual Process 2014
- 2015
Brisbane City Council
Annual Procurement Policy and Contracting Plan
2014 – 2015
(Currently unavailable)
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Schedule B
Annual Contracting Objectives 2014 - 2015
Brisbane City Council
Annual Procurement Policy and Contracting Plan
2014 – 2015
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Desired
Procurement
Outcome
Financial
Procurement
Objectives
Initiative /
Strategy
Proposed for
14/15
Delivery of
procurement
efficiency
objectives
KPI / Measure to
gauge success
Target 14/15
Review of external
Program to harvest
spend nominated in
benefits outlined in
the Forward
2014/15 budget
Contracting Schedule
to identify benefits for
OPEX and CAPEX
Accountability
When
Category
Management,
Strategic Sourcing
- Strategic
Procurement Office
Q1 – Q4
Divisions/business
units
Review existing
contracts to ensure
Council is continuing
to receive value for
money through
contract reviews
Savings opportunities
implemented and
benefits delivered for
OPEX and CAPEX
Delivery of
benefits from
category
management
program
Category
Management Plans
agreed with internal
customers
All plans for
strategic/critical
categories updated
and agreed in
consultation with
customers
Category
Q1 – Q4
Management,
Procurement
Professional Services
– Strategic
Procurement Office
Vendor Management Vendor management Divisions/business
Program enhanced
plans updated in
units
consultation with
customers and key
suppliers
Demand
management/process
improvement
initiatives
implemented
Determine relevant
categories to
establish demand
management/
process improvement
initiatives
Apply a supplier
segmentation
program for all new
and existing suppliers
Ensure supplier
segmentation is
completed for all
contracted suppliers
Process simplification Continuously review
category
management
processes to identify
opportunities for more
efficient and effective
practices
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Desired
Procurement
Outcome
Initiative /
Strategy
Proposed for
14/15
KPI / Measure to
gauge success
Improve the
Implement automated
efficiency of
accounts payable
the procure to system
pay cycle
Average time
between receipt of
invoice to scheduled
payment
Target 14/15
Implementation of
automated purchase
to payment system
completed as part of
BaSE R2
Accountability
When
Support Services
Q1 – Q4
Strategic
Procurement Office /
Supply Services
Q1 – Q4
>93% of payments
made within terms
Monitor the cycle time Reduce cycle time by
to approve a
10% compared to
shopping cart
June 2014 levels
Social
Procurement
Objectives
Category
Q1 – Q4
Management Strategic
Procurement Office in
consultation with
Inclusive
Communities,
Brisbane Lifestyle
Increase
Council spend
with Social
Enterprises
and improve
procurement
outcomes with
current Social
Enterprise
suppliers
Annual spend of
$1.5m with Social
Enterprises for
financial year
Goal of $1.5m spend
for the financial year
achieved
Council staff
members to liaise
with current Social
Enterprise suppliers
to better understand
Social Enterprise
supplier capability
and capacity and
provide Social
Enterprise suppliers
with more information
about Council’s
requirements
Council officers
managing key social
procurement
contracts report
improvements on
supplier performance
Increase the
number of
Social
Enterprise
suppliers to
Council
Review Council’s
Social Enterprise data
base and add
suppliers where
appropriate
A 10% increase in the
number of Social
Enterprise suppliers
against which spend
(excluding grants) is
accrued
Category
Q1 – Q4
Management Strategic
Procurement Office in
consultation with
Inclusive
Communities,
Brisbane Lifestyle
Engage the
commercial
sector to raise
awareness of
contracting/
subcontracting of
Social
Review upcoming
tender processes to
consider where it may
be appropriate to
include social
procurement
objectives in the
evaluation criteria
Quarterly reviews of
Strategic
Procurement’s
sourcing plan
Category
Q1 – Q4
Management Strategic
Procurement Office in
consultation with
Inclusive
Communities,
Brisbane Lifestyle
Advertise internally
regarding use of
Social Enterprise
suppliers.
13
Desired
Procurement
Outcome
Accessibility
Procurement
Objectives
Initiative /
Strategy
Proposed for
14/15
KPI / Measure to
gauge success
Target 14/15
Enterprises
Engage some of
Council’s commercial
suppliers to promote
procurement from
Social Enterprise
suppliers
Regular contact with
commercial suppliers
regarding Social
Procurement
Improve
Council’s
procurement
processes,
procedures
and increase
organisational
awareness of
the
accessibility
requirements
Accessibility
addressed in all pre
and post market
submissions.
Submission templates Procurement
Q1 – Q4
to be updated.
Professional Services
– Strategic
Procurement Office.
Develop a standard
evaluation approach
for accessibility.
Update the evaluation
plan templates to
include example
wording for
accessibility.
Environmenta Waste
l Procurement Minimisation
Objectives
/recycling
initiatives
Reduction in material Utilisation of
proceeding to landfill recovered material in
construction program
(i.e. glass/tyres/
crushed concrete/
scalping)
Accountability
When
Procurement
Q1 – Q4
Professional Services
– Strategic
Procurement Office.
Category
Management–
Strategic
Procurement Office
Q1 – Q4
Waste Services –
Field Services Group
Project manager
awareness of Council City Projects Office,
sustainability
Brisbane
objectives to be
Infrastructure
incorporated in
procurement and
project manager
inductions and related
training
Renewable
energy
Energy
efficiency
Continue purchase of
GreenPower
accredited renewable
energy for Council’s
electricity needs
(measured in %)
Maintain Council’s
spend on
GreenPower in line
with corporate targets
to source 100%
GreenPower for all of
Council’s purchased
electricity
Category
Management –
Strategic
Procurement Office
Reduce electricity
consumption
(measured in
gigawatt hours
{GWh})
Optimise value for
money outcomes for
identified energy
efficiency projects
Category
Management –
Strategic
Procurement Office
Aim to purchase only
minimum four star
energy and water
ratings for any
Energy and Carbon –
Natural Environment,
Water and
Sustainability
Q1 – Q4
Energy and Carbon –
Natural Environment,
Water and
Sustainability
Q1 – Q4
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Desired
Procurement
Outcome
Initiative /
Strategy
Proposed for
14/15
KPI / Measure to
gauge success
Target 14/15
Accountability
When
All applicable ICT
Vendors required to
demonstrate
conformance to
Council’s e-waste
minimisation
conditions
Category
Management –
Strategic
Procurement Office
Q1 – Q4
25% of the vehicles
in the corporate car
pool are to be hybrid
and electric vehicles
Fleet Management
Group – Strategic
Procurement Office
Q1 – Q4
appliances to which
ratings apply when
available
E-waste
minimisation
initiatives.
Council specifications
to require ICT
vendors to provide
information on their ewaste minimisation
strategy
Fleet emission Continue utilising
targets
hybrid and electric
vehicles in the
corporate car pool
Energy and Carbon Natural Environment,
Water and
Sustainability
Reduce average
greenhouse gas
emissions from the
bus and City Cat fleet
Evaluate alternative
fuels and
technologies and
incorporate clean air
objectives into the
Council’s City Cat
fleet and bus fleet
procurement process
Transport and Traffic
Q1 – Q4
Brisbane Transport
Energy and Carbon Natural Environment,
Water and
Sustainability
Carbon offset
fuel
Purchase accredited
offsets to negate
greenhouse gas
emissions from
Council’s bus and
vehicle fleets and
stationary fuel use
(diesel, CNG, natural
gas, petrol)
Offset 100% of
Council’s fuel (this
relates to the direct
emissions associated
with the combustion
of fossil fuels, not
upstream emissions
involved with the
manufacture and
transport of the fuel)
Energy and Carbon - Q1 – Q4
Natural Environment,
Water and
Sustainability
Carbon
neutral
Brisbane by
2026
Manage the
framework that
encourages
contractors to
demonstrate
responsible
environmental
performance
Manage the
framework and
ensure assessment
for all major projects
(for example the
contractor to provide
an Environmental
Management Plan)
Category
Management –
Strategic
Procurement Office
Q1 – Q4
City Projects Office,
Brisbane
Infrastructure
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Desired
Procurement
Outcome
Initiative /
Strategy
Proposed for
14/15
KPI / Measure to
gauge success
Target 14/15
Accountability
Require operators of Ensure contract
Council owned and
clauses in all new
badged community
arrangements
facilities to source
electricity from 100%
GreenPower
(includes Council
operated swimming
pools. Excludes
sporting clubs,
community groups,
leased swimming
pools and commercial
revenue leases of
Council owned
property etc.)
City Venues
Greenhouse gas
emissions reduced or
avoided by
procurement activity
Category
Management and
Strategic Sourcing –
Strategic
Procurement Office
Identify sourcing
activities that are
suitable for inclusion
of carbon intensity as
weighted assessment
criteria that recognise
reduced or avoided
greenhouse gas
emissions
When
Energy and Carbon Natural Environment,
Water and
Sustainability
Brisbane City Legal
Practice
Energy and Carbon Natural Environment,
Water and
Sustainability
City Projects Office
Impact of
changing
climate
Inclusion of impact of All applicable major
changing climate
projects over $10m
assessment in the
mandate and
justification
documentation of all
Council projects and
activities
City Projects Office
Q1 – Q4
Renewable
resources.
Council specifications
and projects to
require the use of
renewable timbers in
all Council
construction and
engineering projects.
Category
Management and
Strategic Sourcing –
Strategic
Procurement Office
Q1 – Q4
100% use of Forest
Stewardship Council
(FSC) timbers in
Council controlled
construction and
maintenance
activities.
Energy and Carbon Natural Environment,
Water and
Sustainability
City Projects Office
Environmental When assessing
ly responsible products/services
Identify sourcing
activities that are
Category
Management and
Q1 – Q4
16
Desired
Procurement
Outcome
Initiative /
Strategy
Proposed for
14/15
KPI / Measure to
gauge success
Target 14/15
Accountability
goods and
services
consideration is given
to reuse, recycling
and safe disposal of
the product
suitable for inclusion Strategic Sourcing –
of reuse, recycling
Strategic
and safe disposal as Procurement Office
weighted assessment
criteria
Increase
sustainable
procurement
initiatives
across
Council's
sourcing
processes
Increase the number
of procurement
activities that include
a sustainable
procurement outcome
Continue to facilitate
greater awareness of
sustainable
procurement benefits
into Council's general
procurement
processes
When
Category
Q1 – Q4
Management,
Corporate Risk
Management, and
Procurement
Professional Services
– Strategic
Procurement Office
Waste Services –
Field Services Group
Energy and Carbon Natural Environment,
Water and
Sustainability
Business
Development
Objectives
Develop and
maintain
competitive
supply
markets
Communicate “PreMarket” signals to
suppliers in respect of
Council’s
requirements for
goods and services
Improved regional
collaboration with
other Local
Government and
State Government
agencies in respect to
focus on business
and supplier
community
development
Industry warm-up
presentations along
with the
public communication
of the
Annual Procurement
Plan and
Forward Procurement
Schedule
Strategic
Q1 – Q4
Procurement Office in
collaboration with
Economic
Development
Contribute to the Lord
Mayor’s business
engagement priority
by encouraging
businesses supplying
Council to become
part of the Brisbane
Business Network
Improved
and by providing
engagement with the general procurement
business community, seminars at four
ensuring that
industry forums
Brisbane businesses organised in
understand Council’s conjunction with
procurement
Brisbane Marketing
processes and how to
become a supplier to
Council
Process of
engagement
Continue offering
tender feedback to
Mandatory feedback
to
Category
Management and
Q1 – Q4
17
Desired
Procurement
Outcome
Initiative /
Strategy
Proposed for
14/15
KPI / Measure to
gauge success
Target 14/15
Accountability
When
of suppliers
maintained
successful and
unsuccessful
suppliers
suppliers on all
procurement
activity valued at $1
million and over.
Feedback to be
offered
within 2-4 weeks of
tender award
Strategic Sourcing –
Strategic
Procurement Office
Improved
supplier
awareness of
Council’s
procurement
methodology
Simplify tender
documentation and
process to increase
quality of responses
and outcome of
tender process for
Council
Implement face-toface briefing sessions
to outline tender
requirements for
categories with track
record of not
responding with
adequate detail of
proposals.
Category
Q1 – Q4
Management,
Corporate Risk
Management,
Procurement
Professional Services
and Strategic
Sourcing – Strategic
Procurement Office
Ensure tender
documentation and
evaluation criteria is
simplified and tailored
towards audience that
needs to complete
program implemented
with tier two, three or
four suppliers
Zero Harm
Objectives
Improving
Council's
procurement
procedures
and processes
for Zero Harm
Review suppliers
performance during
the contract term to
ensure Zero Harm
has been
appropriately
identified and
addressed
Incorporate into
category
management
requirements
For contacts with a
high safety risk,
obtain reporting at the
end of a contract term
to determine how
many WHS incidents
had occurred
Incorporate into
category
management
reporting
Organisational
Wellness Safety and
Health
Q1 – Q4
Procurement
Professional Services
– Strategic
Procurement Office
Category
Management and
Strategic Sourcing –
Strategic
Procurement Office
Incorporate reporting Add to specification
requirements into
template
contracts where the
contractor needs to
notify Council of
WHS/zero harm
incidents on Council’s
sites
18
Desired
Procurement
Outcome
Compliance
Objectives
Initiative /
Strategy
Proposed for
14/15
Improve the
efficiency of
the source to
contract
cycle
Improvements
in compliance
with
procurement
and
purchasing
policy and
processes
KPI / Measure to
gauge success
Target 14/15
Sourcing commenced
and completed to
enable entering into
contracts prior to
expiry of existing
contracts
100% of contracts are
entered into prior to
expiry of existing
contracts
Percentage of
specifications
completed at PreMarket approval
stage
100% of
specifications
completed at Premarket stage
Manage leakage on
Council contracts
Leakage on
contracted categories
maintained at current
low levels
Category
Management –
Strategic
Procurement Office
Monitor the volume
and value of
confirmation orders
Reduction in the
number of
confirmation orders
by 10% compared to
13/14 levels
Supplier Services Support Services
Monitor impact on
blanket orders with
the introduction of
BaSE
Accountability
When
Category
Management –
Strategic
Procurement Office
Q1 – Q4
Division/Business
Units
Q1 – Q4
Divisions/Business
Units
All blanket orders
greater than $100k to
be linked to a
Corporate
Procurement
Arrangement
Reduction in blanket
orders from 13/14
levels by 20%
(excluding
construction
contracts)
Education and Deliver training on
training
Contract Standards,
Procurement Board
approval processes
and specification
writing
Deliver procurement
training as part of
project manager
inductions
Deliver training to key Category
business areas
Management –
including ISB
Strategic
Procurement Office
Deliver training
inductions to project
manager forums
Q1 – Q4
Procurement
Professional Services
– Strategic
Procurement Office
Corporate Risk
Management and
Procurement
Professional Services
– Strategic
Procurement Office
19
Desired
Procurement
Outcome
Initiative /
Strategy
Proposed for
14/15
Complaint
resolution.
KPI / Measure to
gauge success
Target 14/15
Accountability
When
Deliver training on
new processes and
systems relating to
BaSE
All training programs
delivered before
BaSE R2 go live
Chief Procurement
Officer and BaSE
project
Zero complaints
received for the
financial year
Ensure that
procurement
processes continue to
be conducted openly,
fairly and in
accordance with
corporate rules
Corporate Risk
Q1 – Q4
Management and
Procurement
Professional Services
– Strategic
Procurement Office
Maintain protocols
and key performance
indicators for
compliance with
complaints reporting
process
Appropriate areas of
Council are briefed on
the complaints
process
Include as part of
Project Manager and
executive inductions
Number of complaints
received, resolved
and remaining
unresolved tracked
and reported
Ensure value
for money
probity and
accountability
in the
procurement
process
Manage the operation >90% first time
of the Stores Board
approval rate for
and Procurement
submissions
Boards
Coordinate the
development of the
Annual Procurement
Policy and
Contracting Plan
(APPCP)
APPCP approved by
Council in August
Progress against
objectives measured
quarterly
Report monthly on
By 21st day after
contracts entered into month end
by Council > $100k
Enhance effective
and sustainable
procurement
governance
Maintain and
enhance the
operation of the
procurement boards,
Stores Board and
Oversight of
Consultancies
Special Committee to
ensure effective
decision making
20
Schedule C
Annual Forward Contracting Schedule 2014 – 2015
Brisbane City Council
Annual Procurement Policy and Contracting Plan 2014 – 2015
21
MAJOR CONSTRUCTION
Detailed below are major Council programs (Programs are defined as programs of like work) and projects against which major procurement activity is
scheduled to occur during the 2014/15 financial year and later. The ‘Estimated Value of contracts…’ column shows an estimate of the sum of the
procurement for which Council is scheduled to engage the market in 2014/15. Where the ‘Estimated Value of contracts…’ for a project or program
detailed below reaches or exceeds $10 million or is designated a Significant Contract that Contract will be a Significant Contract for the purposes of
section 210 of the City of Brisbane Regulation 2012.
Major Projects
(Greater than $2m)
2014-2015
Estimated value of
contracts greater than
$2m going to market in
2014-15
Expected
Qtr at
Market
$2.10 million
Q1-Q4
Quotes under existing
Corporate Procurement
Arrangement
Delivery Manager, Drainage
Infrastructure Services, Construction
Branch, 3178 6002
$6.00 million
Q1-Q4
Manager, Civil Infrastructure Services,
Construction Branch, 3403 7831
Build Karawatha Forest Environmental
Centre
$7.30 million
Q1
Construction of Key Bikeway Links in
Suburbs
$14.40 million
Q1-Q4
Quotes under existing
Corporate Procurement
Arrangement
Public Tender/Quotes
under existing
Corporate Procurement
Arrangement
Quotes under existing
Corporate Procurement
Arrangement
Coorparoo Creek Park – Stage 1
$4.70 million
Q2
Quotes under existing
Corporate Procurement
Arrangement
Principal Project Manager, Civic and
Building, City Projects Office, 3403
5718
DDA Compliant Bus Stop Upgrades
$6.50 million
Q1-Q4
Senior Project Manager, Civil and
Transport, City Projects Office, 3178
8898
DDA Compliant Ferry Terminals
$31.80 million
Q4
Public Tender/Quotes
under existing
Corporate Procurement
Arrangement
Quotes under existing
Corporate Procurement
Arrangement
Bridge and Culvert Construction – New
Bridges and Culverts – Reconstruction and
Rehabilitation
1
Proposed
Procurement Strategy
Contact Details1
Senior Project Manager, Civic and
Building, City Projects Office, 3027
4571
Senior Project Manager, Civil and
Transport, City Projects Office, 3403
7731
Senior Project Manager, Civic and
Building, City Projects Office, 3178
6391
Contact details may change.
22
Major Projects
(Greater than $2m)
2014-2015
Estimated value of
contracts greater than
$2m going to market in
2014-15
Expected
Qtr at
Market
$5.80 million
Q1-Q4
$650 million (total project
value not estimated value
of contract)
Q3
Local Drainage Construction
$2.70 million
Major Drainage Construction
Major Traffic Improvements – Intersections
Proposed
Procurement Strategy
Contact Details1
Quotes under existing
Corporate Procurement
Arrangement
Public Tender
Manager, Civil Infrastructure Services,
Construction Branch, 3403 7831
Q1-Q4
Quotes under existing
Corporate Procurement
Arrangement
Delivery Manager, Drainage
Infrastructure Services, Construction
Branch, 3178 6002
$7.20 million
Q1-Q4
Quotes under existing
Corporate Procurement
Arrangement
Delivery Manager, Drainage
Infrastructure Services, Construction
Branch, 3178 6002
$8.80 million
Q1-Q4
Quotes under existing
Corporate Procurement
Arrangement
Senior Project Manager, Civil and
Transport, City Projects Office, 3403
7731
Melbourne Street Portal Safety
Improvements
$2.00 million
Q3-Q4
Principal Engineer, Civil and
Transport, City Projects Office, 3403
7585
Shorncliffe Pier
$11.00 million
Q1
Quotes under existing
Corporate Procurement
Arrangement
Quotes under existing
Corporate Procurement
Arrangement
Site Works Bracken Ridge Pool
$2.00 million
Q-2
Senior Project Manager, Civic and
Building, City Projects Office, 3403
6635
Sportsfield and Hard Court Condition
Rehabilitation
$2.10 million
Q1
Stormwater Drainage Rehabilitation
$3.20 million
Q1-Q4
Public Tender/Quotes
under existing
Corporate Procurement
Arrangement
Quotes under existing
Corporate Procurement
Arrangement
Quotes under existing
Corporate Procurement
Arrangement
Key City Park Upgrades
Kingsford Smith Drive – Future Upgrade
Principal Project Manager, Civil and
Transport, City Projects Office, 3403
8186
Senior Project Manager, Civil and
Transport, City Projects Office, 3403
4385
Project Manager, Civic and Building,
City Projects Office, 3403 6434
Delivery Manager, Drainage
Infrastructure Services, Construction
Branch, 3178 6002
23
Major Projects
(Greater than $2m)
2014-2015
Upgrade Neighbourhood Parks
TOTAL
Estimated value of
contracts greater than
$2m going to market in
2014-15
Expected
Qtr at
Market
$2.80 million
Q1-Q4
Proposed
Procurement Strategy
Contact Details1
Quotes under existing
Corporate Procurement
Arrangement
Manager, Civil Infrastructure Services,
Construction Branch, 3403 7831
$770.40 million
24
GOODS AND SERVICES (SIGNIFICANT)
Detailed below are anticipated significant contracts in relation to goods and services and against which major procurement activity is scheduled to occur
during the 2014/2015 financial year and later. These contracts are considered to be Significant Contracts for the purposes of Section 210 of the City of
Brisbane Regulation 2012. In some cases Council may elect to exercise an existing option to extend a contract rather than engaging the market with a
view to entering into a new contract.
Grouping
Commodities and
Services
Construction and
Operations
Product
Category
Description
Indicative
Annual Spend
$
$2.88 million
Expected
Qtr at
Market
Comments
Contact
Details
Q2
Review of current contract
arrangements or public
tender
Category
Manager, 3403
9090
Batteries and cells and
accessories
Batteries, tyres and
tubes
Cleaning services for
parks and outdoor public
venues
Cleaning services
$4.36 million
Q1
As above
As above
Consultancy engineering
Infrastructure
consultancies
$40.00 million
Q1
As above
As above
Construction machinery
and equipment rental or
leasing services
Mobile plant for
quarries and asphalt
$5.30 million
Q1
As above
As above
Gaseous fuels
Natural gas
$4.50 million
Q3
As above
As above
Construction and
maintenance of parks and
related assets
Landscape
construction services
$4.52 million
Q2
Review of current contract
arrangements or public
tender
Category
Manager, 3408
8530
Ecosystems
Ecosystem restoration
$6.54 million
Q3
As above
As above
Hardware
General hardware,
timber and tools
$2.92 million
Q1
As above
As above
Playground equipment
Playground equipment
$4.73 million
Q2
As above
As above
Road profiling service
Skid steer loaders
asphalt/profiling
$2.45 million
Q2
As above
As above
25
Grouping
IT and
Telecommuni
cations
TOTAL
Product
Category
Description
Printers
Managed print services
Storage
Enterprise storage,
RSA and services
Indicative
Annual Spend
$
$3.00 million
Expected
Qtr at
Market
Comments
Contact
Details
Q1
Review of current contract
arrangements or public
tender
Category
Manager, 3403
9109
$2.00 million
Q1
As above
As above
$83.20 million
26
GOODS AND SERVICES (NON-SIGNIFICANT)
Detailed below are further anticipated contracts in relation to goods and services against which procurement activity is scheduled to occur during the
2014/15 financial year and later. These contracts are not considered to be Significant Contracts for the purposes of section 210 of the City of Brisbane
Regulation 2012. In some cases, Council may elect to exercise an existing option to extend a contract rather than engaging the market with a view to
entering into a new contract.
Grouping
Commodities and
services
Product
Category
Description
Indicative
Annual Spend
Expected
Qtr at
Market
Comments
Contact Details
Advertising agency
services
Advertising creative
services
$0.25 million
Q3
Review of current contract
arrangements or public
tender
Category
Manager, 3403
9090
Agricultural machinery for
soil preparation
Human resources
consulting service
Mowers, tractors and
utility vehicles
HR project aligning,
workplace justice and
mediation services
Asphalt maintenance
trucks
Sweepers – bikeways
$0.40 million
Q1
As above
As above
$0.75 million
Q1
As above
As above
$1.10 million
Q1
As above
As above
$0.40 million
Q1
As above
As above
Sweepers – large truck
mounted
Market research
services
Advertising – master
media services
Office supplies, paper,
envelopes and toners
Personalised public
transport and Council
cabs
Marketing
communication –
community
engagement
$0.60 million
Q1
As above
As above
$1.00 million
Q3
As above
As above
$1.30 million
Q1
As above
As above
$1.35 million
Q1
As above
As above
$0.82 million
Q1
As above
As above
$1.00 million
Q2
As above
As above
Industrial trucks
Market research
Media placement and
fulfilment
Office supplies
Passenger road
transportation
Public relations and
professional
communications services
27
Grouping
Product
Category
Description
Indicative
Annual Spend
Expected
Qtr at
Market
$0.60 million
Q2
As above
As above
Security and personal
safety
Compensation
assessment and market
valuations
Security consultancy
services
$0.30 million
Q1
As above
As above
Vehicle maintenance and
repair services
Bus air conditioning
systems maintenance
$1.73 million
Q4
As above
As above
Cadastral engineering and
construction surveys and
survey drafting
Cadastral engineering
and construction
surveys
$0.68 million
Q1
Review of current contract
arrangements or public
tender
Category
Manager, 3408
8530
Coloured pavement
Coloured pavement
$1.00 million
Q4
As above
As above
Facility maintenance and
repair services
Lift maintenance
$0.27 million
Q1
As above
As above
Fencing
Fencing services
$1.68 million
Q3
As above
As above
Highway and road
construction services
$1.52 million
Q2
As above
As above
Public toilet facility
Bitumen primes and
spray seals – service
Modular toilet blocks
$0.58 million
Q3
As above
As above
Road reserve cable
installation
Road reserve cable
installation
$0.25 million
Q4
As above
As above
Sea and river walls
construction service
Bank stabilisation
$0.26 million
Q4
As above
As above
Traffic signals
Traffic components
$1.29 million
Q3
As above
As above
Traffic signal hardware
$1.35 million
Q3
As above
As above
Traffic sign standards
$0.26 million
Q3
As above
As above
End to end business
application monitoring
and report
$0.40 million
Q2
Review of current contract
arrangements or public
tender
Category
Manager, 3403
9109
Real estate services
Construction and
Operations
IT and
Telecommuni
cations
Public safety and
emergency responses
Comments
Contact Details
28
Grouping
Product
Category
Scheduling and bookings
TOTAL
Description
Car park management
services
Indicative
Annual Spend
Expected
Qtr at
Market
$0.25 million
Q4
Comments
As above
Contact Details
As above
$21.39 million
29
Schedule D
Annual Forward Disposal Schedule 2014 – 2015
Brisbane City Council
Annual Procurement Policy and Contracting Plan 2014 – 2015
30
The following items represent disposals of $5,000 or greater that the Council may seek to conclude during 2014/15. Actual disposal activity will be dictated
by a number of factors that may include the level of operational activity and any purchasing arrangements implemented. Significant Disposal Plans for the
identified disposal activities will be developed where disposals are not in accordance with the Contract Manual or the proposed disposal approach.
Disposal Activity
Computer Equipment
Computer Desktops
and/or Laptops
Computer Server,
Storage and
Communications
Equipment
Proposed Disposal Approach
Re-purchase by Vendor, ‘Green ICT’
arrangement or Public Auction or Tender
Disposal
Community disposal
Re-purchase by Vendor, ‘Green ICT’
arrangement or Public Auction or Tender
Procurement
Outcome
KPI/Measure to
gauge success
Economic
/Environmental
Return greater than
book value
Social
Disposal
Accountability2
Expected
Timing
ICT Service Delivery Q1 – Q4
Up to 300 functioning
ICT Service Delivery /
computers (desktops
Community
Q1 – Q4
or laptops) allocated to
Development Services
community groups
Economic
/Environmental
Return greater than
book value
ICT Service Delivery Q1 – Q4
Passenger Vehicles
Public Tender / Auction or sale by private treaty through
the Auction House at the agreed reserve price if the asset
has been passed in at a previous auction
Economic
Return greater than
book value
Fleet Management
Group
Q1 – Q4
Light Commercial
Vehicles
Public Tender / Auction or sale by private treaty through
the Auction House at the agreed reserve price if the asset
has been passed in at a previous auction
Economic
Return greater than
book value
Fleet Management
Group
Q1 – Q4
Trucks
Public Tender / Auction or sale by private treaty through
the Auction House at the agreed reserve price if the asset
has been passed in at a previous auction
Economic
Return greater than
book value
Fleet Management
Group
Q1 – Q4
Public Tender / Auction or sale by private treaty through
Major and General Plant
the Auction House at the agreed reserve price if the asset
and Equipment
has been passed in at a previous auction
Economic
Return greater than
book value
Fleet Management
Group
Q1 – Q4
Public Tender / Auction or sale by private treaty through
the Auction House at the agreed reserve price if the asset
has been passed in at a previous auction
Economic
Return greater than
book value
Fleet Management
Group
Q1 – Q4
Special Vehicles
2
The area of Council responsible for the Disposal Activity.
31
Disposal Activity
Proposed Disposal Approach
Procurement
Outcome
KPI/Measure to
gauge success
Accountability2
Expected
Timing
Obsolete Inventory
Public Tender / Auction
Economic
Return greater than
five percent of current
book value
Supplier Services
Q1 – Q4
Buses and Ferries
Public Tender / Auction or sale by private treaty through
the Auction House at the agreed reserve price if the asset
has been passed in at a previous auction
Economic
Return greater than
book value
Brisbane Transport
Q1 – Q4
32