Assessing Tenders

from Tenders & Contracts Team

There is an art to writing a well thought out request for tender document that will achieve market responses in a way that meets the organisational need.  However in practice, it’s difficult to do and rarely a perfect process.  So what’s the perfect way?

There are varying thoughts.  You need to think about what you really want:

• Are we after best of breed, best on price, or the best to get the job done within the time-frame (or some other factor)?
• Are we likely to be inundated with responses or have very few?
• Are there valid and justifiable minimum participation requirements that exclude unsuitable respondents before they tender e.g. licences, certifications and qualifications?
• What criteria will clearly differentiate the suitability of respondents?

Once we’ve ascertained the above, we can then think about the response methodology.  For instance:

• Should we run an Expression of Interest first? (In which case we could conceivably make the tender evaluation stage very simple with price the only criteria).
• Have we looked at the previous, or a similar, tender process to ascertain any learnings and/or the effectiveness of the previous criteria and scoring?
• Can we use a lot of Yes/No questions as a means of making evaluation very efficient and quickly eliminating parties?
• Alternatively do we just have a few open ended response questions, each focused on a separate evaluation criteria, thus allowing tenderers to respond with whatever they believe might be important and without restriction of the number of words?
• Are we asking any questions to which we never intend to assess the answer?
• Is there anything that might inadvertently lead to non-complying tenders?
• Will the market like the way it is being offered to them?

There’s no easy answer, but the above are worth reflecting on.

'Engineering Networking Meeting' - Sydney

Agenda now published - Limited seats available

Successful delivery of council infrastructure projects poses many challenges for council’s engineering and procurement teams, especially when it involves rate payers’ money and the community benefit we all expect.

Tight budgets and expectation of high quality, demands the projects are planned and delivered more efficiently and cost effectively. While planning infrastructure projects, councils seek value for money in the overall project solution while trying to control its total cost.

To get a better perspective of the strategic role of procurement in infrastructure projects, LGP invites you to attend the ‘Engineering Networking Meeting’ in Sydney on 9 August.

The event aims to assist engineers within local government to understand the benefits of involving the procurement team in the infrastructure planning stage.

Highly experienced and prominent speakers within the infrastructure development space will share experiences, expertise, innovative ideas, and best practices.

This event is free of charge and is a great opportunity to network with your peers and gain knowledge. 

The Power of Procurement

Registration now open

‘The Power of Procurement’ is the theme of the Local Government Procurement Annual Conference 2018.

• How can you determine the value of procurement? 
• How do you put procurement on the strategic agenda of your organisation? 
• What are other procurement leaders doing to demonstrate the power of procurement within their organisation?

The conference will demonstrate the strategic value of procurement and how you can use this to significantly elevate the importance of procurement within your organisation. 

We have designed the conference to feature a variety of sessions and address interesting topics that revolve around procurement and contract management, to help enhance your skills and capabilities for better performance and outcomes within your procurement role.

Benefit by gaining knowledge from experienced and knowledgeable procurement leaders with sector expertise and leading industry professionals on global procurement trends, technology, business intelligence, data management, analytics and contract management.

Confirmed speakers

• Tanya Harris – Global Procurement Manager, Fred Hollows
• Katrina Donaghy – Co-CEO and Co-Founder - Civic Ledger

• Olga Petinis – Associate Director, Advisory - KPMG

• Brent Reeman – Managing Director and Chief Executive Officer - Peak Services
• Chris Clark – Chief Executive Officer - AVCRM
• Sam Wesley – Director, Procurement and Vendor Management - Optus
• Rowan Howarth – Design Manager Infrastructure Delivery, Port Macquarie-Hastings Council
• Matthias Fuchs – Chief Procurement Officer - Boral

Over the years, this conference has been established as an industry event within NSW local government and brought together local government procurement professionals and managers to hear and learn about a range of procurement challenges within the sector.

Based on the keen interest from the private sector to attend the conference, this year we would like that procurement professionals from the private sector too benefit from this event and are pleased to extend the conference to procurement professionals within the private sector as well.​

The conference is an ideal event for those involved in procurement, in particular:

• Procurement Managers
• Governance Managers
• Purchasing Officers
• Contracts Managers
• General Managers and Senior Managers

Besides gaining valuable knowledge from industry experts and peers, this event also provides opportunities to develop new and build on existing professional networks and working relationships. 

Confirm your attendance at the early bird rate. Registration now open. 

For more information on the program and speakers please visit our website.

Sponsorship Opportunities Available

Gold (1)
Entertainment
Drinks
Pen
Large Format Display Area (1)

The Local Government Procurement Conference is an established industry event for NSW local government. The conference provides a unique opportunity for suppliers to showcase their goods and services to a cross section of procurement professionals from across the state over two days.  It is also an excellent opportunity to attract potential customers and build on existing relationships already established.

The conference will be held on Thursday 18 October and Friday 19 October 2018 at Doltone House, Darling Island Wharf, Pyrmont Point.

Sponsorship opportunities are limited. Suppliers who wish to participate as a sponsor may view our Sponsorship Prospectus to confirm participation. You do not want to miss this opportunity.

The Local Government Procurement Awards celebrate those procurement professionals or groups who are making a difference in local government and their community. The Awards recognise excellence and best practice in the field of procurement within the local government sector.

The awarded recipients will receive a personalised plaque and professional development training offering of the winner's choice to the value of $2,500. The Awards will be presented at the Local Government Procurement Annual Conference dinner on Thursday 18 October 2018 at Doltone House Pyrmont.

The categories are:

• Outstanding Procurement Professional
  To be eligible the nominee must have a minimum 2 years experience in procurement within NSW local government
   
• New Outstanding Procurement Professional
  To be eligible the nominee must have less than 2 years experience in procurement within NSW local government
   
• Sustainable Procurement Achievement
  This award is for either an individual or organisation that has demonstrated exceptional sustainable procurement work

Nominations are now open and close at 5:00pm on Friday 21 September 2018. 

To submit a nomination complete the nomination form on the website and email to LGP Events.

For further information contact Emma Murray, Marketing and Communications Manager or 02 8270 8710.

LGP's New eLearning Program

Procurement & Contract Management 

Learn on the go! Explore the newly created online courses!  

LGP has developed a brand new eLearning modular program specifically focussed on NSW local government. This package is hosted on a state-of-the-art Learning Management System (LMS) that will enhance the overall learning experience. 

List of courses

• Procurement for Local Government
• Contract Management in Local Government 
• Probity in Procurement

Benefits

• Flexible learning option: anytime, anywhere
• Multi-device operability (computer, laptops or any other mobile devices)
• Interactive, engaging and independent learning
• Monitor, track and record learning journey
• Share knowledge and experience through discussion forums
• Administrative reporting on the progress and completions 

Some of the other services on offer include:

• Customisation of LGP’s current modules
• Instructional designing
• Content writing
• Graphic designing
• eLearning programming using Articulate 360 (one of the best packages)

For more information or for a trial access, please contact Niv Roy, Training Manager via email  or call 02 8270 8709.

Pathway to Chartered Institute of Procurement and Supply (CIPS) Qualifications

Nationally Recognised Training in Procurement

Get professional mileage by enrolling into the Advanced Diploma of Procurement Contracting (PSP60616) and Diploma of Procurement and Contracting (PSP50616) offered by LGP in partnership with ProLeaders Academy, a registered training organisation (RTO Code 45024).

LGP has entered into an agreement with CIPS to extend the following professional benefits towards career pathway on completion of the above qualifications through LGP:

• Entitlement to Student Membership of CIPS
• On successful completion of these courses, eligibility for up to three exemptions per level with the CIPS Qualifications

Nationally Recognised Training in Procurement
New Modular Format​

To meet the wider needs of our target audience, from July 2018, LGP in partnership with ProLeaders Academy, (RTO Code 45024) will offer Certificate IV in Procurement and Contracting (PSP40616) and Diploma of Procurement and Contracting (PSP50616) in a modular format.

What does that mean?

Flexibility to:

• do only that part of the accredited course that is relevant to the role requirement
• pay only for the module you would do and not for the full qualification. This may be helpful in cases of budgetary constraints in a financial year
• attend only the selected modules which may be helpful if you have time constraints
• carry forward the credits of the module/s done to complete the qualifications later in subsequent offerings.

Upcoming Training Sessions

We also offer qualifications in Project Management specifically focussed on Procurement and Contracting.  Please click here for more details.

For any information or assistance regarding training, please contact Niv Roy, Training Manager on 02 8270 8709 or send an email.

The Business Case for Sustainable Procurement

Risk analysis is a vital key to effectively managing any organisation. Just as important, is the identification of opportunities. Successful organisations identify, analyse and manage their risks and opportunities well.

Considering sustainability risks and opportunities within an organisation very quickly highlights the business case for sustainable procurement and the importance of sustainability and the procurement function in meeting organisational objectives.

Most still equate sustainability with environmental aspects alone. Yet true sustainability considers the four pillars of impact: environmental, social, economic and governance. Sustainability risks and opportunities can include those relating to the following (and more):

Human rights; health and safety; pollution; waste; local employment; local economic growth; fair competition; resource use and security; staff well-being and productivity; energy and water use; and biodiversity.

ISO 20400 Sustainable Procurement provides guidance on how to identify sustainability issues affecting organisations and set sustainable procurement priorities based on those. Sustainable Choice is proposing to lead a webinar where Sustainable Choice members can work together with assistance and guidance to develop a sustainability ‘Heat Map’ that is relevant for those councils. This ‘Heat Map’ will provide a very useful tool in presenting a business case for sustainable procurement to the decision makers within your council. We would like to gauge the interest level in such a webinar and ask that you please register your interest here.

VendorPanel Product Development

Same Day Close enables buyers to close a request on the day that it is opened, with a minimum required open time of four hours.  Closing hours are extended from 5:00 am through to 10:00 pm for same-day-close RFxs and 9:00 am through to 10:00 pm for non same-day RFxs. 

This new feature is helpful when quick turnaround of quotes is required due to the urgency of the work requested.

LGP thanks all councils that have joined the LEAP program and are pleased to welcome you all to this amazing program.

• Georges River Council
• Dubbo Regional Council
• Inner West Council
• Armidale Regional Council
• Northern Beaches Council
• Queanbeyan-Palarang Regional Council

All councils are in the early stages of the three year program and we are delighted to report the following council successes:

• Demonstrated procurement savings of over $1.5M and growing
• Understanding current council procurement status  and developed targets for procurement maturity improvement
• Dashboards highlighting spend by council, including category spend, trends and comparisons
• Defined procurement improvement plans, endorsed and supported by council leadership.
• Mechanism to allow council to understand additional training and process needs improvement opportunities

LEAP, a low cost ongoing continuous improvement program that uses real data and evidence to improve procurement capability of council, continues to gain momentum!

If you would like more information about the program, please email us or visit our  website.

The LEAP program is delivered to councils by LGP in association with ArcBlue.

Sustainable Choice conducted their last Sustainable Procurement Forum for 2018 in Byron Bay on 27 June. It was a day of networking, presentations and sharing ideas. A couple of the highlights were hearing from Lismore City Council on their progress and success with producing crushed glass sand and using it within construction. We also heard Byron Shire Council sharing a case study on their bridges replacement project and bin refurbishment project, demonstrating some excellent sustainability and recycling outcomes.

We also had three suppliers present; Enretech, Cardia Bioplastics and Replas, who are all listed on the Sustainable Products and Services Database. They all got to showcase their innovative and sustainable products throughout the day.

We would like to thank the attendees and the suppliers who have come along to one of our Forums this year and also reminding our members that we are here to assist. Please contact us should you require assistance here.

LGP Consulting Team

LGP extends its expertise and experience to provide councils with an additional service through its Consulting Team.

LGP’s Consulting Team are well positioned to facilitate end to end tender processes on behalf of individual councils.  Our Consulting Team comprises highly qualified and experienced professionals who have demonstrated success in facilitating tenders on behalf of councils.

Examples of recent tenders we have conducted on behalf of individual councils are:

• Refurbishment of Library Building
• Legal Services Panel – two individual council tenders
• Internal Audit Services
• Natural Resources Services
• Management and Operation of Swimming Centre
• Security Services - two individual council tenders
• Food and Garden Organic Processing
• Scrap Ferrous Metals, Green Waste Processing, Crushing and Screening of Concrete and Waste Bin Audit (4 separate tenders for a group of councils)
• Remediation of Land works
• Development and Management of Caravan Park (EOI)
• ICT Services Provider
• Vehicle Leaseback
• Cleaning Services
• Trade Services Providers
• Lighting and Sound Technician Services
• Dry and Wet Plant and Equipment – two individual council tenders
• Insurance Broker and Insurance Brokerage Services  for ten councils (joint tender process)
• CBD Reconstruction Tender

If you have any requirements for tender facilitation for any product or service please email the LGP Consulting Team or call 02 8270 8747.

The procurement team at Charters Towers Regional Council in Queensland was struggling with the cyclical nature of their workload. Supplier communication peaked with the opening of each tender, and there was a spike in admin and record-keeping every time one closed.

Learn how Charters Towers used VendorPanel to improve tendering for both suppliers and staff, with efficient processes, easier compliance management and ongoing vendor evaluation. Read Case Study.

To contact VendorPanel Commercial Manager for Local Government, Alicia Te Hiko please email or  call (03) 9095 6181.

Electricians in NSW should ensure that from 1 July 2018, all building wiring cable sold in NSW must be clearly printed with a mark that evidences the certification required by NSW law.

More information is available at National Electrical and Communications Association. Read Media Release.

For your cable requirements please contact your local Rexel, JRTurk or Lear & Smith Branch or visit our website.​

Councils across NSW need to have an understanding of the BCISP Act because it has wide reach and will likely affect your council’s construction contracts sooner or later.

This brief article looks at the recent case of Cockram Construction Ltd v Fulton Hogan Construction Pty Ltd [2018] NSWCA which considered whether an adjudicator’s ruling was valid at law.

What this case does is remind us that the function of an adjudicator under the BCISP Act is to ‘determine the amount and timing of a progress payment’: Probuild Constructions (Aust) Pty Ltd v Shade Systems Pty Ltd, which is the purpose of the Act, but this appears to not extend to making a correct determination.

Message to Take Away

• While the BCISP Act does not remove your power to pursue your rights and remedies this does not mean that a court will rule that an adjudicator incorrectly applied the law or made a legal error.
• When having your construction contracts drafted you may wish to consider (and discuss with your lawyer) how an adjudicator may interpret and apply various clauses of the contract.

Monica Kelly from Prevention Partners explains more here.

Contact Prevention Partners NSW on 0438 280 621 or email to assist.

If there is any topic you would like covered next month, please feel free to contact Prevention Partners NSW to make suggestions.