Slide 1 - Northern Territory Government by ewghwehws

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									Northern Territory
Government Procurement


              Brad Irvine
     Executive Director Procurement

              November 2008




   DEPARTMENT OF BUSINESS AND EMPLOYMENT
              Procurement Instruments
                                 Northern Territory Cabinet

                        Minister Responsible for Procurement

                             Procurement Act


  DBE Procurement
     Policy Unit       Procurement Regulations



                       Procurement Directions

                                                 Framework   Policy   Process




                           Agency Procurement Compliance

DEPARTMENT OF BUSINESS AND EMPLOYMENT
                Procurement Principles
 Value for Money (VFM) is the expected outcome of a well planned procurement process
 when all key requirements are considered, with an assessment process that does not favour
 lowest price.

  Emphasis on “Value For Money” tendering and tender assessment, encompassing
   the NT Government’s Procurement Policy fundamental principles:

             open and effective competition;
             value for money;
             enhancing the capabilities of local business and industry;
             environmental protection; and
             ethical behaviour and fair dealing

  Outcomes of VFM tender evaluation and assessment must be able to withstand
   scrutiny from both Government and industry.

  It is critical that qualitative consideration for VFM elements, are considered when
   developing the selection criteria in tender documentation and applied when assessing
   tenders.


DEPARTMENT OF BUSINESS AND EMPLOYMENT
              Procurement Principles
        Value for Money (VFM) tender assessment criteria consists of the following
         non-price considerations and is stated in NTG tender documentation

             Past Performance

             Whole of Life Costs/Total Cost of Purchase

             Local Development and Value Adding (Minimum Mandatory 20%)

            Timeliness

             Capacity

             Innovation; and

             any identified project or supply specific requirements

        Price is generally a secondary consideration and not a weighted criteria



DEPARTMENT OF BUSINESS AND EMPLOYMENT
              Agencies, PRB and CAPS
 Agencies

 Government agencies procure goods and services through approved processes and
 procedures which comply with the Procurement Act, Regulations and Directions.
 Agencies determine within this framework how they procure goods and services.

 Procurement Review Board (PRB)

 The Procurement Review Board provides an independent review of the processes
 used by NT government agencies to reach a procurement decision.

 The PRB does not conduct tender evaluation processes; Agencies do.

 Contract and Procurement Services (CAPS)

 Provides service to government agencies, including but not limited to, Tender Box
 lodgements, eLodgement and other tender receipting, advice to agencies, and
 limited management of Across Government Contracts (AGC’s).

DEPARTMENT OF BUSINESS AND EMPLOYMENT
               Procurement Thresholds
             VALUE                                 REQUIREMENT
 Tier 1 Up to $5 000              • Single quotation

 Tier 2                           • Minimum three written quotations
 Over $5 000 and up to $10 000    • Public Gazettal
 Tier 3                           •   Minimum three written quotations
 Over $10 000 and up to $50 000   •   Simple conditions
                                  •   NTICN Consultation – Local Development
                                  •   PRB reportable
 Tier 4                           • Publicly advertised tenders
 Over $50 000 up to $250 000      • VFM Selection Criteria for Assessment
                                  • PRB Approval


 Tier 5                           • As above and;
 Over $250 000                    • Minister approval
                                  • Disclosure of Weightings if greater than $1m


DEPARTMENT OF BUSINESS AND EMPLOYMENT
              Procurement Options
  Expression of Interest



                                                Specific Supply Contract
      Public Tender


                                                Period Contract

      Select Tender**

                                                Panel Period Contract




                  Other Government Contract**              ** PRB Approval PRIOR to tendering
DEPARTMENT OF BUSINESS AND EMPLOYMENT
             Government Priorities

     Closing the Gap
                                                                    Contractor
                                  Value Adding                     Accreditation
     Energy Impacts
                                                          Innovation
                                Value for Money
  Trainees                                                               Industry
                 Indigenous                                            Participation
                Development                    Moving Alice               Plans
                                                 Ahead
   Indigenous                                                        Local
                          Apprenticeships
   Employment                                                     Development
                                                   Cost

                                        Time                       Scope of
      NTG PARTNERSHIPS                                            Requirement

DEPARTMENT OF BUSINESS AND EMPLOYMENT
             Government Priorities

     Closing the Gap
                                                                    Contractor
                                  Value Adding                     Accreditation
     Energy Impacts
                                 Value for Money
                                                          Innovation

  Trainees                                                               Industry
                 Indigenous                                            Participation
                Development                    Moving Alice               Plans
                                                 Ahead
   Indigenous                                                        Local
                          Apprenticeships
   Employment                                                     Development
                                                   Cost

                                        Time                       Scope of
      NTG PARTNERSHIPS                                            Requirement

DEPARTMENT OF BUSINESS AND EMPLOYMENT
             Government Priorities

     Closing the Gap
                                                                Contractor
                                  Value Adding                 Accreditation
     Energy Impacts
                                                Local
                                                      Innovation
                                             Development
                                Value for Money
  Trainees                                                           Industry
                 Indigenous                                        Participation
                Development                    Moving Alice           Plans
                                                 Ahead
   Indigenous
                          Apprenticeships
   Employment
                                                   Cost

                                        Time                   Scope of
      NTG PARTNERSHIPS                                        Requirement

DEPARTMENT OF BUSINESS AND EMPLOYMENT
             Government Priorities

     Closing the Gap
                                                                    Contractor
                                  Value Adding                     Accreditation
     Energy Impacts
                         Indigenous
                                                          Innovation
                        Development for Money
                                Value
  Trainees                                                               Industry
                                                                       Participation
                                               Moving Alice               Plans
                                                 Ahead
   Indigenous                                                        Local
                          Apprenticeships
   Employment                                                     Development
                                                   Cost

                                        Time                       Scope of
      NTG PARTNERSHIPS                                            Requirement

DEPARTMENT OF BUSINESS AND EMPLOYMENT
             Government Priorities

     Closing the Gap
                                                                    Contractor
                                  Value Adding                     Accreditation


                                                          Innovation
                                Value for Money
                   Energy Impacts
  Trainees                                                               Industry
                 Indigenous                                            Participation
                Development                    Moving Alice               Plans
                                                 Ahead
   Indigenous                                                        Local
                          Apprenticeships
   Employment                                                     Development
                                                   Cost

                                        Time                       Scope of
      NTG PARTNERSHIPS                                            Requirement

DEPARTMENT OF BUSINESS AND EMPLOYMENT
             Government Priorities

                                                                     Contractor
                Closing the Gap     Value Adding                    Accreditation
     Energy Impacts
                                                           Innovation
                                  Value for Money
  Trainees                                                                Industry
                  Indigenous                                            Participation
                 Development                   Moving Alice                Plans
                                                 Ahead
   Indigenous                                                         Local
                           Apprenticeships
   Employment                                                      Development
                                                    Cost

                                        Time                        Scope of
      NTG PARTNERSHIPS                                             Requirement

DEPARTMENT OF BUSINESS AND EMPLOYMENT
             Government Priorities

     Closing the Gap
                                                                   Contractor
                                   Value Adding                   Accreditation
     Energy Impacts
                              Moving Alice               Innovation
                                Value for Money
                                Ahead
  Trainees                                                              Industry
                 Indigenous                                           Participation
                Development                                              Plans

   Indigenous                                                       Local
                          Apprenticeships
   Employment                                                    Development
                                                  Cost

                                        Time                      Scope of
      NTG PARTNERSHIPS                                           Requirement

DEPARTMENT OF BUSINESS AND EMPLOYMENT
             Government Priorities

     Closing the Gap
                                                                 Contractor
                                  Value Adding                  Accreditation
     Energy Impacts
                                                       Innovation
                                Value for Money
  Trainees                        Cost                                Industry
                 Indigenous                                         Participation
                Development                    Moving Alice            Plans
                                                 Ahead
   Indigenous                                                     Local
                          Apprenticeships
   Employment                                                  Development


                                        Time                    Scope of
      NTG PARTNERSHIPS                                         Requirement

DEPARTMENT OF BUSINESS AND EMPLOYMENT
             Government Priorities

     Closing the Gap
                                                               Contractor
                                  Value Adding                Accreditation
     Energy Impacts

                                Value for Money
  Trainees                                                        Industry
                 Indigenous             Innovation              Participation
                Development                    Moving Alice        Plans
                                                 Ahead
   Indigenous                                                    Local
                          Apprenticeships
   Employment                                                 Development
                                                     Cost

                                        Time                   Scope of
      NTG PARTNERSHIPS                                        Requirement

DEPARTMENT OF BUSINESS AND EMPLOYMENT
                                  Tenders 07/08 Overview
Type of Procurement                                                  Tenders                                   Quotations                Grand Totals


                                         Vol     Public        Vol    Selected     Vol     Value         Vol       Value          Vol       Value


Consultancy (Engineering)         0.5%     8     $ 3,075,598     3     $310,025     11     $3,385,623      3         $ 75,763      14        $ 3,461,386


Consultancy (Generic)             3.5%    33    $ 11,530,700    18    $6,553,773    51    $18,084,473    123      $ 3,952,001     174       $22,036,474


Consultancy (Media)               0.1%     1       $ 54,389      1     $410,424      2       $464,814      2         $ 71,500       4         $ 536,314


Minor Works and Services         17.5%   211    $ 89,592,909    28   $15,646,883   239   $105,239,792    217      $ 6,384,361     456     $ 111,624,153


Minor Works and Services S/F     0.1%      3      $ 286,713      1     $116,545      4       $403,258     47      $ 1,431,826      51        $ 1,835,084


National Public Works Council    27.8%    46   $ 152,278,468    10   $24,941,947    56   $177,220,415                       nil    56     $ 177,220,415


Purchase and Removal of Goods 0.1%         2      $ 193,000                          2      $ 193,000      9        $180,217       11         $ 373,217


Services                         2.8%      7    $ 13,605,187     6     $845,323     13    $14,450,510    139       $3,513,393     152      $ 17,963,903


Services - Period Contract      21.2%    111   $ 124,193,163    25    $9,373,264   136   $ 133,566,427    48      $ 1,519,008     184     $ 135,085,435


Supply                          5.5%      29    $ 14,535,766    35   $12,924,988    64    $27,460,753    310       $7,404,931     374      $ 34,865,684


Supply - Period Contract        8.5%      45    $ 36,977,462    20   $16,660,525    65    $53,637,987     16        $ 529,011      81      $ 54,166,998


Works and Services - Period     12.2%     76    $ 74,285,393     6    $3,138,419    82    $77,423,812      5        $135,008       87      $ 77,558,820


Grand Totals                             572   $ 520,608,748   153   $90,922,117   725   $611,530,864    919     $25,197,018      1644    $ 636,727,882




DEPARTMENT OF BUSINESS AND EMPLOYMENT
                            Tenders 07/08 by Agency
                                        Agency                Volume             Value        % Volume         % Value

  Department of Planning and Infrastructure                        659      $   295,451,607        40%               46%

  Power and Water                                                  121      $   125,960,538         7%               20%

  Department of Health and Community Services                      190      $    76,305,554        12%               12%

  Department of Employment, Education and Training                     52   $    39,139,217         3%                   6%

  Department of Corporate and Information Services                     90   $    33,932,415         5%                   5%

  Department of Local Government, Housing and Sport                    38   $    15,309,751         2%                   2%

  Police, Fire and Emergency Services                                  99   $    13,212,391         6%   76%             2%   94%

  Tourism NT                                                           43   $     8,675,312

  Department of Justice                                                50   $     8,302,295

  Department of Natural Resources, Environment and the Arts        144      $     7,763,466

  Department of Primary Industry, Fisheries and Mines                  64   $     4,663,561

  Darwin Port Corporation                                              39   $     2,673,915

  Department of the Legislative Assembly                               2    $     2,583,346

  Department of Business, Economic and Regional Development            30   $     1,304,670

  Department of the Chief Minister                                     16   $     1,182,571

  Northern Territory Treasury , LDC, OCPE                              8    $      267,264

  Total Value                                                     1644      $   636,727,882


DEPARTMENT OF BUSINESS AND EMPLOYMENT
                DPI Tender Overview
                             Type        Volume   Value

  Consultancy Engineering                  7         $1,159,019

  Consultancy General                      21        $1,935,600

  Consultancy Media                        1              $49,500

  Minor Works and Services                421      $102,340,590

  Minor Works and Services Short Form      49        $1,810,935

  National Public Works Council            43      $140,344,469

  Purchase and Removal of Goods            2              $55,330

  Services                                 13        $5,216,702

  Services Period Contract                 23        $8,000,063

  Supply                                   22        $2,037,143
  Works and Services – Period Contract     57       $35,502,255



  Total                                   659      $295,451,607

DEPARTMENT OF BUSINESS AND EMPLOYMENT
             Future
        Continuous efforts to improve tender and contracts

        Efforts in improving qualification and expertise by government staff

       New Contracting Models
           Alliance
           Early Contractor Involvement

        Government Policies

            Climate Change
                Sustainable Procurement
                Reductions in carbon footprint
                Focus on measures that procurement processes can deliver improvements




DEPARTMENT OF BUSINESS AND EMPLOYMENT
Northern Territory
Government Procurement


              Brad Irvine
     Executive Director Procurement

              November 2008




   DEPARTMENT OF BUSINESS AND EMPLOYMENT

								
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