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					ICC Internal Audit Workpapers

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Contributed on 14 February 2002 by Justine Blackledge, jblackledg@ipswich.qld.gov.au Audit: Tender Processes Test Questions
98-99-003 98-99-041

Tender Number
98-99-069 98-99-095 98-99-105 98-99-221

Comments

Preparation 1. Is a tender number allocated prior to advertising? 2. Has the closing date and time been advised? 3. Does the tender documentation include at least - a description of the item for which tenders are to be submitted – tender number – form of agreement – advertisement – general and specific conditions of tendering – general and specific conditions of contract – tender schedules 4. Are the specifications clear, unambiguous and consistent with approved need? 5. Is the selection criteria developed
Prepared by: Justine Blackledge (File-path: C:\Data\Web Pages\auditnet\docs\tender.doc) 24 May 1999

ICC Internal Audit Workpapers

Page 2

Test Questions
98-99-003 98-99-041

Tender Number
98-99-069 98-99-095 98-99-105 98-99-221

Comments

and approved before issuing invitations? 6. Is the selection criteria included in the specifications? 7. Is a clear distinction made between mandatory and desirable criteria? 8. Is an evaluation matrix prepared with appropriately weighted selection criteria determined from the specifications and conditions detailed in the tender documentation prior to advertising? 9. Are the weightings and scoring methods secure and inaccessible to potential suppliers? 10. Is the tender documentation and evaluation matrix reviewed by Contracts Branch having no involvement in their preparation? 11. Were end users involved in specifying the requirements? 12. Is there a proper separation of duties for the justification function and the decisions on how to
Prepared by: Justine Blackledge (File-path: C:\Data\Web Pages\auditnet\docs\tender.doc) 24 May 1999

ICC Internal Audit Workpapers

Page 3

Test Questions
98-99-003 98-99-041

Tender Number
98-99-069 98-99-095 98-99-105 98-99-221

Comments

perform the acquisition process? 13. Are any exemptions properly approved, supported by documented analysis and consistent with policies? Advertising and Inviting 14. Is the advertisement placed in the local newspaper? [LGA s.481] 15. Are the offers addressed to the Council and not to an individual? 16. Does the advertisement contain: - a description of the item for tender the tender number, officer and address of where to submit it, the closing date and time, location and address for inspection of tender documents, location and address for obtaining tender documents including the amount of the nonrefundable deposit, name and phone number for enquires, a clause stating ‘the lowest or any tender will not necessarily be accepted’ – a clause stating ‘Council reserves
Prepared by: Justine Blackledge (File-path: C:\Data\Web Pages\auditnet\docs\tender.doc) 24 May 1999

ICC Internal Audit Workpapers

Page 4

Test Questions
98-99-003 98-99-041

Tender Number
98-99-069 98-99-095 98-99-105 98-99-221

Comments

the right to invite all tenderers to change their tender should Council decide to change the specs’ 17. Is at least 21 days allowed from the day of the advertisement for the submission of tenders? [LGA s.484] 18. Does the invitation state the purchasing arrangement for which the person is tendering. [LGFS s.14(2)] 19. Was a policy on late or incorrect form of lodgement stated in the invitation? 20. Were any late lodgements excluded and is proof of lateness clear and factual? 21. Are enquires documented and treated consistently? Are enquires, questions and answers about the specification documented and passed on to other potential suppliers? 22. Are the documents sent to interested parties, clearly identified as to which are to be completed and
Prepared by: Justine Blackledge (File-path: C:\Data\Web Pages\auditnet\docs\tender.doc) 24 May 1999

ICC Internal Audit Workpapers

Page 5

Test Questions
98-99-003 98-99-041

Tender Number
98-99-069 98-99-095 98-99-105 98-99-221

Comments

returned with the offer? 23. Is the receipt for the non-refundable deposit held for each application? 24. Is a standard covering format required to be included in the offers to aid evaluation and comparison? 25. Changes to tender is only made if the invitation to tender states that the LG might later invite all tenderers to change their tenders. [LGA s.488] 26. Are the reasons documented (ie public interest) if expressions of interest are called before tenders are invited [LGA s.489] 27. Properties only exempt if (1) disposal is to the State Govt, Community Org, Govt Entity, or Local Govt. (2) the land is not rateable after disposal (3) Ministerial exempts [LGA s.492] Tender Receipt and Opening 28. Are tenders received in a locked
Prepared by: Justine Blackledge (File-path: C:\Data\Web Pages\auditnet\docs\tender.doc) 24 May 1999

ICC Internal Audit Workpapers

Page 6

Test Questions
98-99-003 98-99-041

Tender Number
98-99-069 98-99-095 98-99-105 98-99-221

Comments

tender box that is secure from unauthorised access and visible by an officer at all times? 29. Is the person responsible for the safe keeping and registering of offers received independent from the officers directly involved in the specification and evaluation process? 30. Is the tender box and tenders opened only after the closing time? 31. Is the tender box opened by dual key holders? 32. Are the tenders opened at a public forum or closed session and in accordance with the method specified in the tender? 33. Are the tender details recorded on a Quotation Tender Summary Sheet? And is it signed by both parties who opened them?

Prepared by: Justine Blackledge (File-path: C:\Data\Web Pages\auditnet\docs\tender.doc)

24 May 1999

ICC Internal Audit Workpapers

Page 7

Test Questions
98-99-003 98-99-041

Tender Number
98-99-069 98-99-095 98-99-105 98-99-221

Comments

34. Where tender deposits are requested are the tenders with a copy of the summary sheet fowarded to Finance for account allocation? 35. Is the receipt number when receipted recorded on the tenders? 36. Are the original tenders and summary sheet sent to records for registration? Evaluation and Assessment 37. Are the officers evaluating the tenders authorised to do so? 38. Are the evaluations performed by a panel of two or more people? 39. Is at least one person on the panel not a party to prior tasks in the process to provide an independent view? This person may have particular expertise. 40. Are the panel members from different parts of the Council? Do they have different supervisors?

Prepared by: Justine Blackledge (File-path: C:\Data\Web Pages\auditnet\docs\tender.doc)

24 May 1999

ICC Internal Audit Workpapers

Page 8

Test Questions
98-99-003 98-99-041

Tender Number
98-99-069 98-99-095 98-99-105 98-99-221

Comments

41. Are tenders evaluated in accordance with the stated specifications, policies and additional evaluation criteria being: - financial viability – production capability and capacity – quality system certification – defect reporting and rectification – documented past performance – ease of legal recourse 42. Are the tenders evaluated in accordance with the previously established matrix? 43. Are all tasks, calculations, deliberations etc documented? 44. Are all discussions with suppliers properly recorded? 45. Are the conclusions signed by all parties? 46. Are the deliberations kept secure, and access controlled from any person not involved in the process? 47. Is Contracts notified of changes in tender specifications?

Prepared by: Justine Blackledge (File-path: C:\Data\Web Pages\auditnet\docs\tender.doc)

24 May 1999

ICC Internal Audit Workpapers

Page 9

Test Questions
98-99-003 98-99-041

Tender Number
98-99-069 98-99-095 98-99-105 98-99-221

Comments

48. Are tender changes included in the annual report? 49. If tender is <$100k has the officer evaluating the tenders sent a Letter of Acceptance to the successful tenderer. If >$100k is a report submitted to Council detailing the tenders received, the evaluation process and the recommended supplier (if any)? Is a letter of acceptance sent after the Council decision is issued? 50. Are unsuccessful tenderers advised accordingly and tender deposits refunded? 51. Does the purchase order raised to the successful tenderer specify the contract number and retention? 52. Is the officer raising the Purchase Order authorised to do so? Post Offer Negotiations 53. Were the scope and parameters for any negotiations predetermined as part of the evaluation criteria? If not at what stage were they?
Prepared by: Justine Blackledge (File-path: C:\Data\Web Pages\auditnet\docs\tender.doc) 24 May 1999

ICC Internal Audit Workpapers

Page 10

Test Questions
98-99-003 98-99-041

Tender Number
98-99-069 98-99-095 98-99-105 98-99-221

Comments

54. Were the results clearly agreed upon by all parties to the negotiations? 55. Were all negotiations adequately recorded and signed by all parties? 56. Was consistent and reasonable time given to all for negotiations? 57. Was adequate time allowed to send in final offers? Post Tender Feedback 58. If an information session is held is the Contracts Manager plus at least one other officer connected to the tender present? 59. Has the contracts manager recorded the details provided at the information session and forwarded it to Records? Is the appropriate information released? 60. Are the reasons for any rejections passed on to those suppliers, in a form which preserves commercial data of the successful supplier?

Prepared by: Justine Blackledge (File-path: C:\Data\Web Pages\auditnet\docs\tender.doc)

24 May 1999

ICC Internal Audit Workpapers

Page 11

Test Questions
98-99-003 98-99-041

Tender Number
98-99-069 98-99-095 98-99-105 98-99-221

Comments

Monitoring the Contract 61. Is the contract signed by someone with appropriate delegation? 62. Was the contract properly witnessed? 63. Have the contract details been entered into Councils Contract Register? Check details. 64. If the contract is >2 years is Council satisfied that better value will be achieved by entering into a longer arrangement? [LGFS s.14(5)] 65. Is the original contract forwarded to and kept by the DCEO’s office and recorded on the register of legal documents ? 66. Are all copies of contracts kept in a secure place to protect commercially sensitive material? Is access controlled? 67. What procedures are in place to monitor performance in terms of the contract?

Prepared by: Justine Blackledge (File-path: C:\Data\Web Pages\auditnet\docs\tender.doc)

24 May 1999

ICC Internal Audit Workpapers

Page 12

Test Questions
98-99-003 98-99-041

Tender Number
98-99-069 98-99-095 98-99-105 98-99-221

Comments

68. Are the necessary security deposits, licences, insurance policies, certificate, qualifications etc obtained from the contractor? 69. Are the processes, data used and conclusions of supplier performance fully documented? 70. Are there any unsubstantiated opinions kept on file which could potentially be misused? 71. Are the results on individual suppliers protected from access by competitors? 72. Is supplier performance reviewed? 73. Are the end users involved in the review of supplier performance? Progress Payments and Retentions 74. Are progress payments appropriately approved ? 75. Are progress payments backed up with an evaluation of performance, stage of completion etc.
Prepared by: Justine Blackledge (File-path: C:\Data\Web Pages\auditnet\docs\tender.doc) 24 May 1999

ICC Internal Audit Workpapers

Page 13

Test Questions
98-99-003 98-99-041

Tender Number
98-99-069 98-99-095 98-99-105 98-99-221

Comments

76. Are progress payments paid on time? 77. Does Council hold the appropriate retention from payments in accordance with the contract? 78. Are retention monies easily identified and held in an appropriate general ledger account? 79. Are retention monies promptly paid to suppliers when due? 80. Does the retentions account reconcile to the contracts register? 81. Are variations substantiated and appropriately approved? Tender Documents 82. Are all tenderers notified if a change is made to the specification? 83. Variations are not allowed on contracts where the time for completion is 12 months or less? 84. Is the tender deposit or receipt for payment lodged with the tender?
Prepared by: Justine Blackledge (File-path: C:\Data\Web Pages\auditnet\docs\tender.doc) 24 May 1999

ICC Internal Audit Workpapers

Page 14

Test Questions
98-99-003 98-99-041

Tender Number
98-99-069 98-99-095 98-99-105 98-99-221

Comments

85. Contract variations are not to be such that if it had been included in the original tender, more or different tenders would have been received? It can be varied in response to circumstances not known? 86. Are Security Deposits, specified in the specific conditions of contract, paid to Council within 14 days from the date of acceptance of the contract? 87. Is the security deposit appropriately released when the contractor has been paid all moneys excluding retention? 88. Are retention moneys as specified in the specific conditions of contract, deducted from payments to the contractor? 89. Is the contract performed by sub contractors as specified in the tender documentation?

Prepared by: Justine Blackledge (File-path: C:\Data\Web Pages\auditnet\docs\tender.doc)

24 May 1999

ICC Internal Audit Workpapers

Page 15

Test Questions
98-99-003 98-99-041

Tender Number
98-99-069 98-99-095 98-99-105 98-99-221

Comments

90. Are reasons behind changes in times for commencement and completion, specified in the specific conditions of contract documented? 91. Does the contractor have a minimum of $5 million in public liability insurance? 92. Does the contractor have workers compensation insurance? 93. Is the Bank Guarantee registered on the ‘O’ drive in the Bonds and Guarantees register? 94. 95. 96. 97.

Prepared by: Justine Blackledge (File-path: C:\Data\Web Pages\auditnet\docs\tender.doc)

24 May 1999


				
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