TENDERING FOR GOVERNMENT BUSINESS

TENDERING FOR GOVERNMENT BUSINESS • Hosted by: Brian Webb – Business, Economic & Regional Development Patrick McCormick – Corporate and Information Services Gary Ross – NT Industry Capability Network Stephen Ward – Contractor Accreditation Limited WELCOME AND OVERVIEW • In 2006/07 the Northern Territory Government spent approximately $1.9 billion on the procurement of supplies, works and services • $1.5 billion or 80% of this amount was spent in the Northern Territory REGIONAL SPEND – ALICE SPRINGS Financial Year 2003/04 2006/07 Increase Total Spend 147,012,337.59 180,634,062.78 33,621,725.19 Percent 23% REGIONAL SPEND - KATHERINE Financial Year 2003/04 2006/07 Increase Total Spend 75,824,733.74 101,363,074.27 25,538,340.53 Percent 34% REGIONAL SPEND – TENNANT CREEK Financial Year 2003/04 2006/07 Total Spend 15,720,992.03 21,712,522.87 Increase Percent 5,991,530.84 38% WELCOME AND OVERVIEW • The Northern Territory Government’s “Buy Territory” policy is supported in all tenders by a minimum mandatory assessment criteria of 20% weighting applied for local development. So .............. , • How can we do business together? Topics for Discussion 1. 2. NTG PROCUREMENT STAKEHOLDERS OVERVIEW – NT GOVERNMENT TENDERING   Thresholds How to Tender 3. VALUE FOR MONEY ASSESSMENT  Tier 3 Procurement  4. Tier 4 & 5 Procurement CONTRACTOR ACCREDITATION LIMITED 5. 6. NT INDUSTRY CAPABILITY NETWORK APPRENTICE/TRAINEE POLICY 7. 8. DISCLOSURE OF WEIGHTINGS DBERD PROCUREMENT LIAISON 9. DISCUSSION AND QUESTIONS Department of Corporate and Information Services Mr Patrick McCormick Director Contract and Procurement Services Who’s Involved in NT Government Procurement Public • • • Minister Responsible for Procurement – Hon Eliot McAdam MLA NTG Procurement Policy Unit – DCIS Contracts & Procurement Services (Tenders) – DCIS • • Industry Procurement Liaison – DBERD NT Government Procurement Review Board – DCIS • • • • All government departments purchasing goods, services and works Private NT Businesses NT Industry Capability Network (NTICN) Contractor Accreditation Limited (CAL) Procurement Levels (Tiers) VALUE Up to $5 000 (T1) Over $5 000 and up to $10 000 (T2) REQUIREMENT • Single quotation • Three written quotations Over $10 000 and up to $50 000 (T3) • • • • Three written quotations Simple supply conditions Local Development selection criteria NTICN Consultation Over $50 000 and up to $250 000 (T4) Over $250 000 (T5) • Publicly advertised tenders • VFM Selection Criteria for Assessment • Publicly advertised tenders • VFM Selection Criteria for Assessment Who can tender & what do you need to do? Who Can Tender or submit quotations? • Any legal entity – natural person or legal trading entity • CAL Accredited for works and services contracts valued @ $50k+  For those categories of work listed by CAL What Do You Need To Do? • • Beneficial if you register with NTICN and CAL if necessary Make yourself known to government procurement officers  Direct contact/promotion  Attend forums like “Meet the Buyers” (next November 2007) • • NT News on Thursdays – double page spread Website – www.nt.gov.au/tenders Tier 3 Procurement - Accountability Standard process across government • • • • • 20% Assessment weighting on Local Development & Value Adding Mandatory consultation with NTICN to ensure at least three quotes can be obtained from local suppliers Cannot seek quotes interstate without NTICN confirmation (more details about NTICN later) Mandatory reporting to PRB – who quotes were issued to, successful and unsuccessful, key dates etc Public notification in Gazette • Full tender process may be used if considered appropriate Tenders – Tier 4 and 5 • All Tier 4 and 5 procurement must be via the tendering process • • • Industry Participation Plans (IPP) required for Tier 5 tenders where value exceeds $5m Standard system and procedure for all government agencies PRB reviews all assessments, including scoring and weightings. Information submitted to PRB includes identification of assessment panel, variation from pre-tender estimate, demonstration the VFM has been achieved, details of all offers received – extremely detailed! Results of awarded tenders published in NT Gazette and on website • Value for Money (VFM) Selection Criteria & Tender Assessment • The VFM assessment criteria must include the following elements as appropriate for the nature of what is being procured: • Past Performance • Local Development and Value Adding (Minimum 20% Weighting) • Timeliness • Capacity • Innovation • Whole of Life Cost • Supply Specific • Any explanation of what might be included in these criteria follows. Value for Money (VFM) Selection Criteria – Past Performance Standard of work – was previous work at the standard expected and contracted for? Product quality – was the quality of previous products at the standard expected and contracted for? Project delivery – has the Tenderer the necessary project delivery experience, including managerial and technical expertise, in relation to the proposed Contract? Degree of necessary supervision of the Contractor – did the tenderer need an abnormal degree of supervision in the past? Performance history – were local Suppliers/subcontractors and numbers of jobs for Territorians and local Indigenous Territorians nominated by the Tenderer achieved in past Contracts. Previous disputes and claims – has the Tenderer a good history regarding resolution of disputes and claims? References (including CAL if applicable) –would they recommend the Tenderer for the purpose of the Government’s Contract? Safe and fair workplace record – has the tenderer adhered to relevant workplace and occupational health and safety (OHS) laws and regulations. Value for Money (VFM) Selection Criteria – Local Development Enhancement of NT industry and business capability – this will directly benefit Northern Territory consumers and therefore value add to Government procurement processes. Improved capacity and quality in supply and service response – this could be achieved through a local presence. Proposed level of usage of apprentices, trainees and local Indigenous enterprise – this will promote achievement of Government’s broader strategic and community objectives and therefore value add to the procurement process. Proposed number of jobs for Territorians – the extent to which this is important will depend on the nature of the Supplies. Proposed number of jobs for local Indigenous Territorians – the extent to which this is important will depend on the nature of the Supplies. Accredited training programs supported by the Tenderer – this could be a higher priority in the Procurement of certain types of Supplies. Regional development opportunities – this will be of greater significance particularly in remote areas of the Northern Territory. Northern Territory research and development proposals – the extent to which this is of relevance will depend on the nature of the Contract. Value for Money (VFM) Selection Criteria – Timeliness Whether the Supplies are available immediately – being available immediately may be an overriding factor in some instances. In other instances, when the Supplies can be delivered may not be as important. Agencies need to consider the operational and financial effects of a delayed delivery of Supplies in determining the importance of timing. Length of supply chain – whether this is important or relevant will depend on the nature of the Supplies. Supply chain vulnerability – whether this is important or relevant will depend on the nature of the Supplies. Completion time offered – this needs to be compared with the timing requirements of the Government and evaluated accordingly. Value for Money (VFM) Selection Criteria – Capacity Ability to perform services or supply product – this relates to the experience of personnel nominated in delivering the Supplies and could include demonstrated past experience or indication of new capability. Number and value of Contracts in progress – the number and value of Contracts in progress relative to the resources of the Tenderer will be an indication of the Tenderer’s physical capacity to deliver the Supplies according to requirements. CAL accreditation– this may be applicable in construction and some service Contracts where the Contract is valued at more than $50 000. Legal action pending – this may again be an indication of the Tenderer’s Capacity to deliver. Financial resources – the extent to which this is relevant depends on the nature of the Contract and is directly related to the value of the Contracts already in progress by the Tenderer. Financial capacity – the extent of the financial capacity of the Tenderer that could affect the successful completion of the Tender. Current credit rating – this may be relevant depending on the nature of the Contract and will be considered by CAL in the category rating for relevant construction Contracts. Value for Money (VFM) Selection Criteria – Innovation New Technology – Agencies may be aware of this from the Market Testing conducted and have built this into their definition of the Supplies but there is potential for Tenderers to respond with ‘leading edge’ technology in delivery of Supplies. Alternative methods –agencies may be aware of this from market testing, but Tenderers could still respond with innovative solutions. Value for Money (VFM) Selection Criteria – Whole of Life Cost Operating costs – the costs of operating or maintaining the Supply over time will be relevant in many cases. Expected life and potential for upgrade – the life of the Supplies and requirement for and costs of upgrade could be relevant. Support services – whether they are available, the associated cost and the time to receive them. Warranties – cost and life of warranties is relevant in many cases. Compatibility with existing equipment –relevant for additional or replacement equipment. Reliability – what additional costs/risks are involved with varying levels of reliability/serviceability. Any other factors that would impact on costs to the Government. Contractor Accreditation Limited – CAL Mr Steve Ward Registrar CAL • Non-profit company established by the NT Chamber of Commerce and Industry, the Territory Construction Association, the NT Small Business Association and supported by NT Government. • • CAL accreditation provides Government with accredited contractors that are deemed to meet the Procurement Code. Element of this assessment for accreditation include:  Technical competence  Financial capability  Code of Conduct • • Contact Telephone Mr Steve Ward or Ms Paula Miller 8922 4600 • Website www.accreditation.com.au NT Industry Capability Network Mr Gary Ross Industry Consultant NTICN WHO WE ARE   Private Company with Board of Directors Jointly owned by the Chamber of Commerce NT and Territory Construction Association Independent, unbiased & confidential information source Supported by NT Department of Business, Economic and Regional Development [DBERD]    Linked to national database [ICNL] and NZ database NTICN WHAT WE DO   Promote the capability of Northern Territory business and industry Assist and direct buyers of goods, services & equipment to source from local suppliers through our extensive capability register (the Database) & specialist consultants   FREE service Assist in private and public sector procurement and contracts Alcan Site Photo © NTICN 2005 Adelaide to Darwin Railway Photo © AustralAsian Railway Corporation NTICN Database    Over 3,300 NT companies Monitored and updated regularly Wide range of sectors such as Manufacturing, Construction, Mining, Oil & Gas, Engineering, Environmental, Finance, Legal, Marine etc.   Database searches are conducted using information provided by businesses NTICN are consulted prior to sourcing outside the NT Example of the ideal Lots of information including    Brand Names Product Lines Services Provided business profile 15 REMEMBER The Database is only as useful as the information companies provide! NTICN CONTACT DETAILS Telephone: +61 (0)8 8922 9422 Facsimile: +61 (0)8 8922 9430 Email: Web: info-nt@nticn.com.au www.nticn.com.au Department of Corporate and Information Services Mr Patrick McCormick Director Contract and Procurement Services Policy Changes Forthcoming DISCLOSURE OF WEIGHTINGS • • • Contracts valued at >$1m Commencement - 5 November 2007 Provide Tenderers clearer insight into percentage weightings allocated to selection criteria for assessment TRAINEE/APPRENTICE REQUIREMENTS IN WORKS CONTRACTS • • • • Previously fixed numbers required based on contract value New approach will assess tenders depending on number of trainees / apprentices directly and/or indirectly (subcontracted) employed Tenderers employment of trainees / apprentices will be verified via national database and monitored through the contract period Total apprentices/trainees employed on either public or private contracts. • Company provides total picture of their commitment to grow local skills base in the NT. Department of Business, Economic and Regional Development Mr Brian Webb Director Procurement Liaison Procurement Liaison • A Government initiative to monitor procurement processes and provide an independent contact for business in relation to procurement issues. Situated within the Business Liaison Division of Department of Business, Economic and Regional Development. Is independent of DCIS Procurement Policy Group, CAPS and major procuring Agencies. • • Procurement Liaison • Works with Business Representative Organisations and individual businesses in all regions. • Assists business with issues arising with NT Government Agencies to ensure quick response and resolution. Monitors procurement complaints and issues raised and provides feedback to the Government, Government Agencies and Business. • Procurement Liaison • Since August 2005 a total of 112 complaints have been lodged with Procurement Liaison by a total of 93 individual businesses. Most issues to date centre on the tender assessment process including Value for Money criteria and the complexities of tender documentation. • Procurement Liaison Comparison Jan-Sept 2006 to Jan - Sept 2007 Contract Management Complaint Type Complaint Type Jan - Sept 2007 Procurement Policy Complaint Type Jan - Sept 2006 Procurement Process 0 10 20 30 40 No. of Complaints Recieved Procurement Liaison • The number of matters that are formally referred to Procurement Liaison by business are small in the context of the number of tenders called by Northern Territory Government Agencies. Procurement Liaison IN THE 3RD QUARTER 2007 • • • 183 tenders attracted 517 tenderers 9 complaints were lodged with Procurement Liaison during the quarter 4.9% - tenders closed 1.7 % - number of tenderers • • Procurement Liaison Comparison by Industry Type Jan-Sept 2006 to Jan- Sept 2007 Public/Business Forum Consultants Supplier of Goods Industry Type Services ConstructionBuilding Industry Type Jan - Sept 2007 Industry Type Jan - Sept 2006 Construction- Civil ConstructionElectrical ConstructionMechanical 0 2 4 6 8 10 12 14 16 No. of Com plaints Procurement Liaison Comparison by Agency Involved Jan - Sept 2006 to Jan - Sept 2007 PWC PL NTTC NRETA GPO Agency Involved DPIFM DPI DPFES DLGHS DLA DHCS DEET DCM DCIS DBERD 0 5 10 15 20 25 Agency Involved Jan - Sept 2007 Agency Involved Jan - Sept 2006 No. of Complaints Procurement Liaison TENDERING TIPS • • • Take documents out early Take the time to read thoroughly Note any sections you do not completely understand or is not clear in its intent Contact the nominated Agency Officer and seek clarification • Procurement Liaison - Tips cont • • • • • • • Complete all requirements of the RFT or RFQ Provide as much relevant information as possible Price realistically Never assume the assessment panel knows you or your business Lodge your tender well before closing If unsuccessful request a debrief If unsatisfied with any aspect of the process contact Procurement Liaison Procurement Liaison CONTACT • • • • • Telephone Mobile Email Email Address 8999 5212 0401 118 442 Procurement.DBERD@nt.gov.au brian.webb@nt.gov.au Ground Floor Development House 76 The Esplanade GPO Box 3200 Darwin NT 0801 PANEL DISCUSSION – Q&A Please feel free to ask the panel any specific questions you may have or request any further information. • • • • • Brian Webb - DBERD Patrick McCormick - DCIS Philip Joyce - DPI Garry Ross - NTICN Stephen Ward - CAL THANK YOU! Tendering For Government Business THANK YOU DRIVE SAFELY