To view or download this policy as a PDF click Finance and Administration Policies Documents

Purpose

To ensure that Central Desert Regional Council procurement processes are:

• Transparent, ethical and accountable.
• Supportive of community capacity development within the Central Desert Regional Council area, including Aboriginal employment.
• Undertaken in accordance with Central Desert Regional Council’s strategic and operational planning.
• Procuring goods and services at the best value and of appropriate quality.
• Sustainable and environmentally friendly
• Open and competitive

Scope

This policy applies to procurement of all goods and services.

Definition and Terms

Cost of supplies: all limits within this policy are defined as GST inclusive.

Legislation and Reference

Local Government Act, 2019
Local Government (General) Regulations 2021, Division 12 (Regulations 33‐47), see Appendix 1.

Policy Statement

The Central Desert Regional Council has a decentralised procurement model; therefore the Directors within the Council have the responsibility to ensure that this procedure is adhered to. This responsibility shall not be delegated to a subordinate.

Council officers responsible for purchasing goods and services must comply with this policy and it is the Officer’s duty to understand the meaning and intent of this policy.

Council officers are required to:

• follow the standards of the Local Government Act and the corresponding regulations;
• preserve Council’s integrity to ensure that Council may be seen to have acted beyond reproach in all Procurement dealings; and
• abide by Council’s Code of Conduct and all applicable policies and instructions.

Procurement must be in accordance with the adopted annual budget or a Council resolution and sufficient funds must be available to meet the full cost of the proposed procurement.

All relevant communication undertaken in the procurement process must be recorded in Council’s electronic Records system and attached to the relevant purchase order and/or invoice.

Support of Local Business and Apprentices

Council is committed to buying from local businesses where such purchases may be justified on Value for Money grounds, whilst remaining compliant with the Competition and Consumer Act 2010 and other fair trading legislation requirements.

Wherever practicable, Council will give effective and substantial preference to contracts for the purchases of goods, machinery or material manufactured or produced in Australia and to contractors that demonstrate strong Indigenous employment levels.

Anti‐avoidance

Purchase of goods and services must not be broken down in unreasonable components, or order quantities reduced, in order to avoid the necessity to comply with the dollar limit requirements under this policy.

Conflict of Interest

All Council officers must avoid conflicts of interest between their private interests and official duties.

Where a real or apparent conflict exists, they must comply with their obligation of disclosure.

Council officers shall not participate in a procurement panel for any matters associated with the arrangement of a contract (i.e. evaluation, negotiation, recommendation, or approval), where that person or any member of their immediate family has a direct or indirect interest or holds a position of influence or power in a business tendering for the work. The onus is on the Council officers to promptly declare any direct or indirect, real or apparent, conflict of interest as per P60 Code of Conduct – CEO and SP01 Code of Conduct – Employees.

Confidentiality

All tender and purchasing information is to be considered confidential and is not to be released to others except to the extent of information issued by public notice.

Where information has been provided to the Council on a confidential basis it should be treated as commercial‐in‐confidence and restricted to persons concerned with the specific purchase or contracts.

Period Of Contract

Contracts entered into by the Council that span more than one financial year are treated as separate noncontiguous amounts for each financial year for the purposes of determining the tender or quotation requirements.

Supplies that are obtained under a period contract for more than one financial year shall be conducted in accordance with the requirements of the Local Government (General) Regulations, section 40 to 42 (see Appendix 1).

Contracts for more than 5 years will not be entered into.

Procurement Types

1. Direct Purchase – supplies at a cost below $1,000
   • For food or minor purchases under $1,000, within budget and service plans.
2. Quotation – supplies at a cost between $1,000 and $100,000
   • Less than $10,000
     • three quotations to be sought with at least one received.
       Those that have not been received are to be noted.
       A minimum of one written quotation from a supplier. Three quotation to be sought if possible.
   • Between $10,000 ‐ $100,000
     • three written quotations required from different suppliers.
       If it is not practicable to obtain quotations from three possible suppliers, the Purchasing officer must obtain as many as practicable and must record in writing the reasons for not obtaining the three quotations on an exemption form approved by the Director or CEO, in line with the Delegations Register.
   • Public quotations may be called where the cost of supply is less than $100,000 where a quotation may:
     • Improve competitiveness of supply.
     • Ensure fairer opportunity to supply.
     • Provide better quality of supply.
     • Result in better timeliness of supply.
3. Public Quotations – supplies at a cost more than $100,000 up to $150,000
   1. Request for quotation is published in the NT News and the Council website, allowing a minimum of 5 working days for responses. Successful quotations are to be published on the Council website and all suppliers to be notified in writing.
4. Public Tenders ‐ supplies costing more than $150,000
   • Public tenders shall be called by public notice identifying: 
     • a description of the supply.
     • where tender documentation can be obtained from.
     • Contact name and details of the person from whom information is released.
     • the tender closing date and time.
     • Panel contracts.
   • Public tenders may be called for fixed price supply and for supply via schedules of unit rates.

Tender Assessment Criteria

Tender applications will be assessed using defined tender assessment criteria and weightings as stated in the tender documentation. To ensure Council procurements meet the objectives set out in this Policy, the tender panel will select, as relevant, from the following assessment criteria including minimum weightings:

• Price
• Past Performance
• Timeliness
• Proven ability to deliver quality and requirements
• Use of local supply (minimum 10%)
• Aboriginal employment/Regional capacity inclusion (minimum 5%)
• Capacity

All public tenders will be managed through the Council’s electronic tender facility and according to Council procedures.

Tenders are to be lodged by the tender closing date and time identified on the request for tender.

5. Other Options

Collective Procurement or under a contract allowed under Section 39 of the Act (eg. Local Buy).

Review History