BVSC POLICY STATEMENT Tendering

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					Tendering
POLICY NO AND TITLE

PROCEDURE 1.3.3(d)

PROCEDURE
VERSION AND DATE ADOPTED RESPONSIBLE OFFICER

1.3.3 1.3.3(d) 1

Procurement of assets and services policy Tendering Amended by Council 14 December 1999 – 638/99 Director Engineering Services

Scope
This policy sets out the steps that the Council will follow when tendering goods, services or works.

Principles
The Council will:• only receive tenders at the Bega Head Office. They may be in writing, by fax or email and should quote a tender number or quotation number, and be marked ‘tender box’; • conduct tendering honestly and in a manner that is fair to all parties; • clearly separate its role as a "client" or "purchaser" from that as a "provider" of services; • apply the same conditions of tendering to an in-house tenderer as it does to an external tenderer each time it conducts a tendering process; • produce tender documents that specify the Council's requirements clearly to allow tenderers to bid for and price work accurately; • package work put to tender in a manner that does not limit or restrict competition; • refrain from and discourage other parties from improper tendering practices such as collusion and disclosure of confidential information; • require any conflict of interest to be disclosed immediately; • have regard to the cost of tendering and seek to constrain that cost. Specifications Council, as client, will be responsible for drafting the specifications. Specifications will focus on the outcomes the Council wants from the service in the future. Specifications will therefore not normally describe the current service or the way in which it is provided. In developing specifications, the Council will consider the interests of service users and the views of service providers to ensure that it produces an appropriate description of the service requirements. The existing Council service provider may contribute initially to the development of the specifications. If so, the Council will also consult with an external party, whether an independent consultant or a potential tenderer, before finalising the specifications. No potential tenderer, in-house or external, will have access to the final specifications until they are released formally.

BVSC POLICY STATEMENT

Administrative Procedure
1. The Responsible Officer in consultation with the relevant Director must determine if the invitation is to "Tender" or "Quote". The following principals shall be used.

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Tender

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Refer to Section 55 of the Local Government Act If above $100,000 value If unusual, complex and/or infrequent demand for service or product All other cases (see Procurement and Disposal of Goods and Services Policy)

Quote 2.

A tender and a file number shall be obtained from the Central Registry before any tender is advertised. This number must appear in the advertisement so that it can be quoted on all incoming tenders or quotations. Records will require all relevant details pertaining to the matter to enable the file to be created including the closing date. All fax/e-mail tenders will be placed in an envelope by Records staff and stamped over the sealing section of the envelope and placed in the tender box. On closing date, at least two officers (from different departments preferably) shall collect the tender box keys from the Records Team, and the Executive Secretary or Director of Corporate Services. All tender applications regarding each particular tender shall be collected and opened at the Head Office. All officers present shall sign the tender register and the tender/quotation analysis register shall be filled. The completed tender/quotation analysis register with all the listed tenderers shall be handed over to the Records Team for registration. On completion, all the tenders shall be delivered to the relevant departmental Director. After the successful Tenderer has been decided, the tender file shall be returned to the Central Registry where the contract shall be registered as a Legal Document and the tender file shall be closed. An administrative or a functional file shall be created to accommodate any further documents relating to the project. All documents shall be attached to the appropriate file. Registry should be notified on the day of closing that it has closed and any further items are to be noted as "late". A report is to be prepared for Council with a recommendation.

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Public Notice Public notice is mandatory to initiate a tendering process. The Council will advertise in a local newspaper of its choice circulating in its district and may advertise in another newspaper or publication. Tender information will be made available on the Internet. Where the work to be tendered is valued at $100,000 or more, the Council will advertise in a newspaper with statewide circulation. The Council may contact potential tenderers to ensure they see the public notice. The advertisement must have a tender or quotation number so that it can be quoted on incoming documentation. The address for incoming documentation should include ‘marked to Tender Box’ and the use of individual Council officers names on any quote/tender advertisement avoided. Expression of Interest The Council may use an expression of interest process before it invites tenders. It will advertise publicly for expressions of interest and the public notice will describe the

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purpose and nature of the contract or project. The Council will probably not issue detailed specifications at this stage as its aim will be to assess the capacity of the respondents rather than to elicit tenders. The Council will develop evaluation criteria for each Tender for selecting respondents for registration and will make the criteria available to respondents. Once the Council has a short list, it may invite tenders from some, all or none of those on the list. If the Council does invite tenders it will do so within six (6) months of the date it advertised for expressions of interest. The Council will not retain a short list for inviting tenders for any other contract or project, save where several contracts comprise the advertised project. Invitation to Tender The Council will give the same tender documents to all those who respond to an invitation to tender. If the Council gives any additional information to a respondent, whether written or verbal, it will give the same information to all other respondents. Where verbal advice is given, to clarify unclear meaning within the documents, a written record of that advice will be kept and other respondents given the same advice. The Council will consider conducting a pre-tender briefing for all respondents. The tender documents may, but need not, include specifications. The Council may impose a fee for specifications related to the cost of printing the specifications, but will not impose a fee for any other tender documentation. The tender documents will include the tender evaluation criteria and any ranking accorded to the criteria. Tenderers will be given a minimum of 21 days from the date of the public advertisement in which to submit tenders. Late tenders will not be accepted. Pre-Tender Meetings Pre-tender meetings will be held for all Tenders where the value of the works/service is estimated to exceed $500,000 and/or the complexity of the work/service warrants such a meeting. In-House Tenders The Council will treat an in-house tenderer on exactly the same terms as an external tenderer. An in-house tenderer will not be given access to the tender documents prior to their formal release. The Council may offer assistance to staff preparing a tender but will ensure that it does not infringe the principle of client/provider separation. Council will progress to ensuring that in-house tenders will be prepared on the basis that all costs, direct costs and indirect costs, attributable to the tender are included in the tender price. Net avoidable costing methodology will be used. The only overheads that will not be allocated to an in-house tender are governance costs. As an interim measure 5% will be added to the job cost to cover corporate costs. Council will include an allowance in all Tenders to cover corporate costs. Company Status Where services are to be provided other than through Bega Valley Shire employees then that service must be provided through a registered company. Where a formal contract is used then proof of registration shall be provided, where a quote or a negotiated consultancy is used, the provider of the service shall acknowledge that they are an incorporated company, evidence is to be provided in every case.

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In the case of major contracts, the documentation requires copies of company status together with appropriate insurance cover to protect Council. This also applies to all subcontractors, however engaging the services of a professional through a negotiated consultancy may not have formal documentation, in this case it would suffice to simply ask the question and make a File Note confirming the company status. Assessment Criteria That assessment criteria will be as follows unless otherwise stated in the Tender documents:a) b) c) d) Price 60% - Note: May include other than direct costs Demonstrated ability to perform work including financial capacity 20% Referees classification 15% Presentation (verbal or written) 5%

Tender Evaluation The Council will establish a tender evaluation panel with more than one member, for each tendering process. At least one member of the panel will be a person who is not a Councillor or member of Council staff. No member of a panel will be involved in the preparation of an in-house tender or be involved in managing the in-house provider if the in-house tender is successful. The tender evaluation report will disclose the names of the panel members. The panel will evaluate tenders according to the tender evaluation criteria. The panel may consider whether the Council would incur additional costs in accepting a particular tender provided that possibility has been disclosed in the tender evaluation criteria. If Council staff would be made redundant by acceptance of an external tender, the panel will consider whether the staff could be redeployed or transferred to the external tenderer. If they cannot, the panel will consider whether redundancy costs could be met or offset from Council reserves. Any remaining redundancy costs will be considered on the basis that payments are amortised over five years, even where the contract is for a shorter period. Redundancy costs will only be considered the first time a service is tendered, or in the case of construction works, once each financial year. Award of Contract The decision to award a contract will be made by the Council. All unsuccessful tenderers will be notified promptly, in writing. Complaints Process The Council will establish a process for dealing with complaints about its tendering and any unsatisfactory performance under a contract or in-house agreement. The process will require details of each complaint to be recorded in writing. The complainant will also be given an opportunity to discuss his or her complaint with the General Manager, or a senior Officer delegate of the General Manager. The Council will maintain its contract register up to date at all times and make it available for inspection upon request, without charge.

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