TCC Procurement Guidance

Tendering process

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PROCUREMENT PROCESS GUIDANCE DOCUMENT

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TABLE OF CONTENTS TENDERING PROCESS - GUIDANCE EXPLAINING TAURANGA CITY COUNCIL’S TENDERING PROCESS FOR CONTRACTS OVER THE TENDER THRESHOLD EXPLAINING TAURANGA CITY COUNCIL’S TENDERING PROCESS FOR CONTRACTS OVER THE TENDER THRESHOLD EXPLAINING TAURANGA CITY COUNCIL’S PROCUREMENT PROCESS BELOW THE TENDERING THRESHOLD BEFORE STARTING THE TENDERING PROCESS APPROVAL LEVELS OBTAINING ADVICE ON TENDERS NOTIFICATION EMERGENCY PROCUREMENT APPROVAL OF A CLOSED TENDERING PROCESS APPROVAL FOR SELECTIVE (SOLE-SOURCE (SOLE-SOURCE)) PROCUREMENT PROCESS WHAT TENDER DOCUMENT SHOULD I USE? TENDERER SELECTION METHODOLOGIES REQUEST FOR INFORMATION (“RFI”) REGISTRATION OF INTEREST (“ROI”) / EXPRESSION OF INTEREST (“EOI”) REQUEST FOR PROPOSAL (“RFP” ) REQUEST FOR TENDER (“RFT”) REQUEST FOR QUOTATION (“RFQ”) PREPARING TO TENDER CONTRACT FILE ELECTRONIC CAPTURE OF PROJECT AND CONTRACT RECORDS CONDUCTING THE TENDER EVALUATING THE TENDER APPROVAL PHASE ADVISING TENDERERS OF THE OUTCOME WITHDRAWING FROM OR CANCELLING THE TENDERING PROCESS DUE DILIGENCE POST-TENDER NEGOTIATIONS/CLAR NEGOTIATIONS/CLARIFICATIONS IFICATIONS THE CONTRACT REGISTERED OR QUALIFIED SUPPLIER LISTS PANEL CONTRACTS EXCEPTIONS TO THE OPEN TENDERING REQUIREMENT REQUIREMENT APPENDIX 1 - DEFINITIONS APPENDIX 2 - STATEMENT OF BUSINESS ETHICS APPENDIX 3 - SUPPLIER SELECTION METHODS APPENDIX 4 - GUIDANCE FOR SUSTAINABLE PROCUREMENT APPENDIX 5 – RESPONSIBILITIES FOR ACCURATE RECORD KEEPING


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TABLE OF CONTENTS TENDERING PROCESS - GUIDANCE EXPLAINING TAURANGA CITY COUNCIL’S TENDERING PROCESS FOR CONTRACTS OVER THE TENDER THRESHOLD EXPLAINING TAURANGA CITY COUNCIL’S TENDERING PROCESS FOR CONTRACTS OVER THE TENDER THRESHOLD EXPLAINING TAURANGA CITY COUNCIL’S PROCUREMENT PROCESS BELOW THE TENDERING THRESHOLD BEFORE STARTING THE TENDERING PROCESS APPROVAL LEVELS OBTAINING ADVICE ON TENDERS NOTIFICATION EMERGENCY PROCUREMENT APPROVAL OF A CLOSED TENDERING PROCESS APPROVAL FOR SELECTIVE (SOLE-SOURCE (SOLE-SOURCE)) PROCUREMENT PROCESS WHAT TENDER DOCUMENT SHOULD I USE? TENDERER SELECTION METHODOLOGIES REQUEST FOR INFORMATION (“RFI”) REGISTRATION OF INTEREST (“ROI”) / EXPRESSION OF INTEREST (“EOI”) REQUEST FOR PROPOSAL (“RFP” ) REQUEST FOR TENDER (“RFT”) REQUEST FOR QUOTATION (“RFQ”) PREPARING TO TENDER CONTRACT FILE ELECTRONIC CAPTURE OF PROJECT AND CONTRACT RECORDS CONDUCTING THE TENDER EVALUATING THE TENDER APPROVAL PHASE ADVISING TENDERERS OF THE OUTCOME WITHDRAWING FROM OR CANCELLING THE TENDERING PROCESS DUE DILIGENCE POST-TENDER NEGOTIATIONS/CLAR NEGOTIATIONS/CLARIFICATIONS IFICATIONS THE CONTRACT REGISTERED OR QUALIFIED SUPPLIER LISTS PANEL CONTRACTS EXCEPTIONS TO THE OPEN TENDERING REQUIREMENT REQUIREMENT APPENDIX 1 - DEFINITIONS APPENDIX 2 - STATEMENT OF BUSINESS ETHICS APPENDIX 3 - SUPPLIER SELECTION METHODS APPENDIX 4 - GUIDANCE FOR SUSTAINABLE PROCUREMENT APPENDIX 5 – RESPONSIBILITIES FOR ACCURATE RECORD KEEPING


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TENDERING PROCESS - GUIDANCE Purpose of this section

The purpose of this guidance document is to detail the process that is used by Tauranga City Council to purchase goods and/or services. services. In this guidance document the term “tendering” covers a variety of different forms of procurement processes.

Definitions

Refer to appendix 1

Statement of Business Ethics Who does this apply to?

Refer to appendix 2

Documenting and filing the tender

It is essential that everything to do with a tender process is documented and filed in the Contract File for each tender process. This includes:

This guidance document applies to Tauranga City Council employees, contractors, consultants and procurement agents who are purchasing goods and/or services on behalf of Tauranga City Council.

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All tendering decisions and underlying reasons or assumptions. All tender process communications, including: 

meeting minutes or notes;

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records of phone calls; and

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emails or letter correspondence.

All tender process documentation, including: 

business case and/or procurement plan;

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conflict of interest and confidentiality declarations;

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tender evaluation methodology;

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tender opening register;

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tender evaluation results; and

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tender recommendation.


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CESS FOR CONTRACTS OVER THE TENDER THRESHOLD

Yes Is it an emergency? No

No

Is the contract over $100,000 Yes

GM/CEO/Council for approval Review existing supplier database, existing procurement plan or go to RFQ/ tender process

Appoint contract/project manager

Prepare procurement plan

Check delegated authorities

Select Evaluation Team & Team Leader

Approval to Tender by delegated authority if required

Assemble Tender Documents Closed RFQ or closed RFP/RFT

Open Open or closed process?

ROI/RFP/RFT

Identify a minimum of three potential suppliers Accept valid responses

Evaluate

Shortlist if required

These items are only to be used if previously included in tender documents

Presentations/site visits if required Must not be used in NZTA tenders Final evaluation

Negotiation/Clarification (If Reqd)

Recommendation of preferred tenderer to delegated authority

Award contract to preferred tenderer

Document Execution & Records

Manage contract Debrief of unsuccessful tenderers (If Reqd)

Inform unsuccessful tenderers

Negotiate

Award contract

enew

Original contract to Finance

Debrief of unsuccessful tenderers

Manage contract

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EXPLAINING TAURANGA CITY COUNCIL’S TENDERING PROCESS FOR CONTRACTS OVER THE TENDER THRESHOLD Key issues Valuation of contracts

When determining whether a contract value is above or below the tender threshold, the contract must be based on the maximum total estimated value of the procurement over its entire duration. NOTE: Tauranga City Council is not to prepare, design, or otherwise structure or divide at any stage any c ontract value to fall below the threshold to tender with the objective of avoiding the requirement to competitively tender.

Tendering

Any transaction likely to exceed the tender threshold must be: 

subject to a contestable process; and

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implemented by a formal written contract.

NOTE: Any departure from using a contestable tendering process should be an exception rather than the rule. The decision not to use a contestable process (unless outlined in the section on exceptions in this document) must be based on valid, documented reasons and be signed-off by the appropriate delegated authority. Project Manager

When the tendering process begins: 

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a project manager must be assigned to each contract to carry out the tender process. In the first instance, they will need to develop the procurement plan to start the process; the project manager must obtain delegated authority approval of the initiation of the tendering process (refer procurement plan and if appropriate the business case); the project manager is accountable for t he entire process from the time that the tendering process starts until the contract finishes; and if individual job responsibilities change during the process, ownership must be passed on.

Tenderers have the right to access information about them and their submission that is held by Tauranga City Council. NOTE: Subject to the following section, tender responses should not be disclosed to other parties (including other tenderers) except in very exceptional circumstances. Tauranga City Council must obtain legal advice before disclosing any part or all of a tender response to any person outside of Tauranga City Council.


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Information held by Tauranga City Council Disclosing information

What is required to manage the tendering process?

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Tauranga City Council must comply with its obligations under the Privacy Act 1993, and with the Local Government Official Information and Meetings Act 1987, when disclosing any information. Personnel managing the tendering process and the resultant contract must have an adequate level of procurement competence based on: 

experience;

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training;

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clear understanding of procedures;

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clear understanding of negotiation processes;

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relationship management skills; and/or

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engaging specialist procurement and/or legal advice where required.

NOTE: Delegated authorities have the responsibility to decide whether or not their staff have the relevant procurement experience required to manage competitive tendering processes. Engaging third parties to manage procurement processes

Tauranga City Council can engage third parties to manage the procurement process for individual projects. The use of a third party as an agent or consultant to advise on, arrange or manage a procurement process does not exempt Tauranga City Council from complying with the procurement policy and procedures. When Tauranga City Council engages a third party to manage a procurement process, staff must ensure that there is a term included in the contractual arrangements with the third party which requires them to comply with our procurement policy and procedures. Tauranga City Council should ensure that the third party is fully aware of, and completes, the work in accordance with the procurement manual and policies.

Health and Safety obligations

Tauranga City Council Health and Safety obligations must be considered before entering into the tendering process. Tender documentation must state the health and safety requirements that any successful tenderer must provide. For further information, refer to Tauranga City Council’s Health and Safety Policy - DataWorks TCC ref 1336569.


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EXPLAINING TAURANGA CITY COUNCIL’S PROCUREMENT PROCESS BELOW THE TENDERING THRESHOLD Key issues Valuation of engagements / work packages / projects

Refer to the policy objectives in the Procurement Policy. Projects valued at less than the tendering threshold will not normally be subjected to a full, formal tender process. This does not preclude tendering; especially for projects where the value is close to the tender threshold in value. NOTE: Tauranga City Council is not to prepare, design, or otherwise structure or divide at any stage any contract value to fall below the threshold to tender with the primary objective of avoiding the requirement to competitively tender.

Open and fair competition

Tauranga City Council endeavours to allow open and fair competition to occur when procuring work packages at values below the tendering threshold.

Quotations

Seeking quotations for work packages is frequently an effective way of achieving best value and allowing open and fair competition to occur.

Disclosing information

Tauranga City Council must comply with its obligations under the Privacy Act 1993, and with the Local Government Official Information and Meetings Act 1987, when disclosing any information.

What is required to manage the procurement process?

Personnel managing the procurement process must have an adequate level of procurement competence based on: 

experience;

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training;

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clear understanding of procedures;

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clear understanding of negotiation processes;

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relationship management skills; and/or

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Engaging third parties to manage procurement processes

engaging specialist procurement and/or legal advice where required.

Tauranga City Council can engage third parties to manage the procurement process for individual projects. The use of a third party as an agent or consultant to advise on, arrange or manage a procurement process does not exempt Tauranga City Council from complying with the procurement policy and procedures. When Tauranga City Council engages a third party to manage a procurement process, staff must ensure that there is a term included in the contractual arrangements with the third party which requires them to comply with our procurement policy and procedures. Tauranga City Council should ensure that the third party is fully aware of, and completes, the work in accordance with the procurement manual and policies.

Health and Safety obligations

Tauranga City Council Health and Safety (“H&S”) obligations must be considered. All documentation must state the H&S requirements that any successful tenderer/service provider must provide. For further information, refer to Tauranga City Council’s Health and Safety Policy - DataWorks TCC ref 1336569.


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BEFORE STARTING THE TENDERING PROCESS What to do first?

To assist you with the process, please print out the “Procurement Checklist for Tendering Projects” template – DataWorks TCC ref 3180493 . This will guide you and/or your procurement consultant/project manager in ensuring that you have the correct audit trail in place, and mitigate the multitude of tendering process risks that can arise.

Ensure that the project has financial approval

Before beginning the tendering process, ensure that the project has financial approval, i.e. the funds have been approved in the Annual Plan. If funding has not been approved, you need to obtain appropriate delegated authority using the business case template.

Determine the reasons for the tender

Determine the underlying business reason for tendering, prior to initiating the tendering process. To proceed to tender, there must be an intention to become legally and contractually bound. Do not tender merely to test the market. Market Research can be achieved through utilising a Request for Information (“RFI”) process (guidance is contained in this manual).

Define the scope and specification

Define the scope and specification of the goods and/or services to be supplied before going to the market. Analyse and question the demand, ensure an accurate utilisation analysis is carried out.

Decide the objective for tendering

It is very important that the project manager identifies and confirms the objectives for tendering, because it affects: 

preparation of the tender documents;

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development of the tendering conditions;

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what is required of the tenderers; and

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how the tenders will be evaluated and the evaluation criteria to be applied.

Refer to the Procurement Plan – DataWorks TCC ref 3180487. Two envelope approach

A two-envelope method is normally considered for high value and/or high risk procurement activities. This method involves tenderers submitting a separately sealed envelope consisting of the price submission and a separately sealed envelope consisting of the non-price submission. The non-price parts of the tenders or proposals are distributed to the evaluation team members, with the price envelopes remaining unopened and securely stored. The two-envelope method may be used where Tauranga City Council wants to ensure that price does not influence the evaluation of the non-price (or technical) criteria of a request for tender or proposal. Tauranga City Council may also decide to separate the pricing from the non-pricing and have pricing evaluated by an additional evaluation team (different from the team evaluating non-pricing). This is particularly applicable where the skills to evaluate complex financial pricing do not exist in the nonpricing evaluation team.

Tendering objectives to consider

Tendering objectives to consider include, but are not limited to: 

encourage fair competition;

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maintain effective tenderer market;

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best price;

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best quality;

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enhanced service levels;

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economic, environmental and social impacts;

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innovative solutions;

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demonstrated experience and capability; and


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Tendering for sustainable procurement

best value for money.

During the planning of the tender process the Project Manager must consider: 

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which products/services are the most suitable on the basis of their sustainability impact; the effects of the product through its lifecycle including waste, energy, emissions to biodiversity, health and working conditions; end-of-life impacts - this includes special wastes that present particular problems; ‘Extended Producer Responsibility’ (“EPR”) - such schemes require the relevant industry to take responsibility for goods beyond their point-of-sale and develop or cooperate in schemes that help and better manage the waste involved; any joint procurement arrangements with other public sector entities; a lifecycle approach that scientifically looks at planning, acquisition, operational and disposal; clear and precise functional and technical specifications related to sustainability.

Refer to Appendix 4 for further guidance on sustainable procurement.


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APPROVAL LEVELS Introduction

Tauranga City Council employees/contractors, consultants, and procurement agents working on behalf of Tauranga City Council are required to seek appropriate delegated authority prior to committing Tauranga City Council to any form of expenditure. To find out who has appropriate delegated authority, refer to paragaraph 6 of the procurement policy.

Approval for values up to the tender threshold

Where procurement will not be an open tender or not meet the criteria outlined in the table below, for contracts valued up to the tender threshold, Tauranga City Council must maintain a record or prepare a written report providing specific justification for the contract for the appropriate delegated authority prior to committing any expenditure.

Approval for values over the tender threshold

A decision not to tender a contract with a value above the tender threshold must have a written procurement plan, approved by the appropriate delegated authority, prior to Tauranga City Council commencing the process. The procurement plan will need to contain an assessment including the reasons why an open, competitive tender process is not the preferred procurement process. Refer to the Procurement Plan Template – DataWorks TCC ref 3180487.

Approval levels

Tauranga City Council outlines overleaf the best practice procurement methods for purchases. Where staff do not adopt these best practice procurement methods the purchase should be made in accordance with an approved Procurement Plan. Not all sections of the Procurement Plan will be relevant for all purchases. A Procurement Plan is required to be completed for all tenders. This table does not limit staff from deciding to undertake a tender process for a contract of lesser value when a tender is determined to be the best way of achieving value for money. Where a purchase is made from the existing supplier database it is not necessary to obtain a quotation.


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ost

Procurement Method

Purchasing Approach

Purchasing Means

N/A

Emergency Purchase

Must be a ‘real’ threat to life or TCC property and assets.

The appropriate delegated authority as listed in paragraph 6 of the Procurement Policy must approve any emergency purchase.

1 - $999

Direct Purchase

Direct Purchase.

P-Card/Purchase Order

1,000 - $9,999

Direct Purchase

3 informal telephone or written (email) quotations normally required and records kept.

P-Card/Purchase Order

10,000 99,999

Request for Quotation

3 formal written (email) quotations (using TCC approved RFQ template) normally required and records kept.

Purchase Order/Contract

Request for Includes variants such Tender/Proposal as:

Purchase Order/Contract

(RFQ)

100,000 and bove

ote: CEO can (RFT/RFP) aise this limit to 200,000 on a ase-by-case asis

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Open Tender (single/multi-stage)

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Closed Tender

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Sole Source Tender

Refer to Procurement Procedures for guidance on each of the methods above.


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OBTAINING ADVICE ON TENDERS Contacts

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Legal checks for tendering under the tender threshold

For legal advice on tendering and contracts, contact the legal department. Tauranga City Council has developed a number of template terms and conditions for various types of contracts, which are available in DataWorks. Check to see if there is an applicable template for your contract and if so, use it. If you make any substantial changes to the template or no template exists, contact the legal department.

Proposed tendering processes/contracts where the estimated value is below the tender threshold may undergo a legal check, if the resulting contract: 

could expose Tauranga City Council to significant risk;

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has high political and/or commercial interest;

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Legal checks for tendering over the tender threshold

For general advice on procurement and tendering processes, contact the City Engineer.

falls below the threshold where the standard form of contract is not being used; or has had requests for changes on the standard form terms and conditions.

For proposed tendering processes for contracts in excess of the tender threshold, tender documents (tender conditions and tender documents) should be subject to a legal review unless you are using the curr ent template. Where the tender is based on the standard engineering contracts (including the contract for consultancy services) and specific conditions are added, this will not require legal review. However, if special conditions are used, which modify the general conditions of contract, these should be legally reviewed. Tenders of a similar type that have already been subject to legal review do not require a further legal check, provided that the template documents have not been changed. If the tender is not to undergo a legal review, document the reasons and notify the City Engineer.


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Probity reviews for tendering processes

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For significant procurement processes or those that attract a degree of risk, it may be appropriate to seek independent, external probity assurance and advice through a: 

probity audit, or

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probity advice.

Contact the relevant delegated authority to discuss further.


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NOTIFICATION Public advertising

All tenders in excess of the tender threshold must be notified on the GETS and LG Tenders website. The advertisement should contain the following: 

a general description of the service being tendered;

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contact details for uplift of documents; and

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closing time, date and place for receipt of tenders.

The Contracts Administrator can assist you with preparing advertisements. Notification and filing

Once a contract with a value in excess of the tender threshold has been signed with a supplier, the original contract is to be sent to the Records Department for filing and included in the corporate contracts register.


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EMERGENCY PROCUREMENT Introduction

Emergency procurement is purchasing undertaken to meet the critical requirements of an unforeseen situation. This process is an exception rather than a rule.

What constitutes emergency procurement?

Emergency procurement must only be used when it is impractical to purchase goods and/or services within the required timeframe by using the normal purchasing procedures, including: 

when life or property are at risk;

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in cases of disaster relief; and

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when operational capacity would be severely affected by non-supply in the short term.

NOTE: Urgency does not necessarily constitute an emergency. Where a purchase is urgent, but not an emergency, normal rules for procurement should be followed. Approvals

The appropriate delegated authority as listed in paragraph 6 of the Procurement Policy must approve any emergency purchasing which is to be made in accordance with this provision.


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APPROVAL OF A CLOSED TENDERING PROCESS Closed tender as opposed to open tender

In principle, Tauranga City Council’s tender processes should be fully contestable, especially tenders above the tender threshold, i.e. open tender processes. However, in some cases the extra expense of an open tendering process may not be justified, and a closed tender process is more appropriate. A closed tender may be appropriate if any of the following conditions are met: 

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Requesting approval for a closed tender

the total value of the contract is under the tender threshold; a limited number of competitors exist in the market; nothing is to be gained by allowing suppliers from outside the immediate geographical area; negative cost benefit analysis – this may occur if there has been no movement in prices since the previous tender process; or there is a need for the procurement to be confidential.

To request approval for a closed tender, the Project Manager needs to produce a procurement plan. For tenders below the tender threshold this is considered best practice. If a closed tender is considered appropriate for requirements above the tender threshold the request to use a closed tender process should be detailed for approval in the procurement plan. The procurement plan should provide: 

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background information outlining the: 

market research carried out;

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information gathered;

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methodology and approach taken; and

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expertise and experience of potential suppliers.

the desired tendering outcomes and objectives; reasons for not using an open tendering process; and the proposed alternative procurement process.

NOTE: For audit purposes, the procurement plan should be filed on the tender process file.


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APPROVAL FOR SELECTIVE (SOLE-SOURCE) PROCUREMENT PROCESS Selective (sole-source / direct appointment) procurement, as opposed to closed or open tender

There are instances when there is a requirement to approach a single supplier without inviting competition from other suppliers to source goods and/or services. However, this is an exception rather than a rule and should be fully justified, documented and approved by the appropriate delegated authority. In these cases, the Project Manager determines from conducting market research if any of the conditions below are met: 

urgency;

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specialised nature of the goods or services;

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availability of support services or spare parts;

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opportunity to extend existing or recent contracts, or to use such contracts as the basis for a negotiated contract; practicality of tendering for the specific work; consequential or indirect costs detrimentally affecting Council’s position; sufficiency of capability of the private sector or other potential suppliers or partners;

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necessity of retaining in-house capability;

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existence of excessive risk in contracting; or

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likelihood that key community partnerships will be significantly adversely affected.


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WHAT TENDER DOCUMENT SHOULD I USE? Introduction

The process flowchart and next few pages of this manual have been designed to assist you with the important decision as to identifying and selecting the most appropriate tender documents for your requirements.


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TENDERER SELECTION METHODOLOGIES Tenderer Selection Methodologies

The following tenderer selection methods may be used, as appropriate, for Council procurement activities: 

Direct appointment

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Lowest price conforming

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Purchaser nominated price (target price)

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Weighted attribute

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Price quality

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Quality based (Brook’s Law).

For further information, refer to appendix 3.


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REQUEST FOR INFORMATION (“RFI”) Introduction

An RFI is used when more information is required to assist Tauranga City Council to write accurate specifications to use in a subsequent single or multi-stage tendering process, and/or to provide market insights or background material for a business case.

Using the RFI process

The RFI is a tool that is used to gather information from the market. It is normally used to obtain technical information about a product - or service -based project. An RFI is not evaluated in the sense of selecting one supplier over another. The information received is used to produce detailed specifications and requirements upon which to base a s ubsequent tender process. Refer to the RFI template – DataWorks TCC ref 3180483.


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REGISTRATION OF INTEREST (“ROI”) / EXPRESSION OF INTEREST (“EOI”) Introduction

An ROI or EOI is usually part one of a multi-stage tendering process. They are commonly referred to as either an ROI or EOI. Tauranga City Council will use the terminology of ROI when referring to this stage of the tender process. ROI is used to identify prospective service providers of goods and/or services, and to create a shortlist by asking for responses to specific questions concerning experience, company capability and company c apacity. The process shortlists a manageable number of proposers who could all, theoretically, be capable of providing the required goods and/or services. In some situations an ROI can be used to immediately proceed to a contractual arrangement with the preferred tenderer. However, markets generally view ROIs as a short listing process. To accommodate the direct contracting option the ROI document needs to clearly state that a supplier may be chosen from the ROI process and contain the key components (e.g. reserved rights that we would normally expect to see in an RFP/RFT document).

Using an ROI

Use an ROI prior to the Request for Proposal (“RFP”) or the Request for Tender (“RFT”) process, to: 

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identify how many organisations are capable of providing the specific goods and/or services required; obtain feedback to assist with the solution scope of an RFT process; find out which organisations are capable of providing the goods and/or services within a specified timeframe; find organisations that are capable of meeting the need, possibly in innovative ways when faced with a new situation; and shortlist tenderers capable of providing the goods or services, and invite them to respond to a more detailed RFP or RFT process.

Recommended closing date: four weeks after release of the ROI document. Refer to the ROI template – DataWorks TCC ref 3180482. When not to use an ROI process

It is not compulsory to use the ROI stage of the process and Project Managers could go straight to either an RFP or RFT process. Refer to the template documents within this manual in respect of RFPs and RFTs.


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REQUEST FOR PROPOSAL (“RFP”) Introduction

RFPs invite prospective tenderers to offer solutions based on a statement of a business need.

Using an RFP

The RFP process allows the tenderers to be innovative and offer different approaches and pricing options to address the solution that Tauranga City Council is looking to achieve. RFPs offer greater flexibility from tenderers than that offered by an RFT process. You can use an RFP to: 

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identify how many organisations are capable of providing the specific goods and/or services required; find out which organisations are capable of providing the goods and/or services within a specified timeframe; find organisations capable of meeting the need, in possibly innovative ways; find out how organisations propose to meet your requirements; and discover the market price for your requirements.

Recommended closing date: four to six weeks after release of the RFP document. Refer to the RFP template – DataWorks TCC ref 3180481. When not to use an RFP process

RFPs should not be used if you have prescriptive requirements to use an RFT or when flexibility is not an advantage.


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REQUEST FOR TENDER (“RFT”) Introduction

An RFT process invites prospective tenderers to make offers based on a specific and well-defined statement of requirements.

Using an RFT

An RFT is a relatively rigid and prescriptive process, and is to be used when Tauranga City Council knows exactly what it wants to purchase and the outcomes are capable of being fully specified. You can use an RFT to: 

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identify organisations that are capable of providing the specific goods and/or services required; discover organisations that are capable of providing the specified goods and/or services within a specified timeframe; and allow the selection of the best offer and proceed to contract; discover the market price for your specified goods and/or services.

Recommended closing date: four to six weeks after release of the RFT document. Refer to the RFT template – DataWorks TCC ref 3180480. When not to use an RFT

The RFT process should not be used if the specific requirements/specifications have not been determined prior to approaching the market.


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REQUEST FOR QUOTATION (“RFQ”) Introduction

An RFQ is used when the goods and/or services are less than the tender threshold. It is a quick method to use when determining availability, price and supply terms.

How to use an RFQ

When using the RFQ method, Tauranga City Council must normally seek a minimum of three written quotes from organisations that can supply the required goods and/or services, and document the process completed. Refer to the RFQ template – DataWorks TCC ref 3180484.

When not to use an RFQ

An RFQ should not be used if the total value of the goods and/or services is more than the tender threshold, unless approved by delegated authority.


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PREPARING TO TENDER Tendering templates

There are several tendering templates available and it is important to read the section on “What Tender document should I use?” before selecting your tendering process. Consider the specific conditions and objectives for your tender process and ensure that they will be clearly stated in the appropriate template.

Contract number

All Tauranga City Council tenders above the tender threshold must be released with a contract number. To obtain a contract number, please contact the Information Integrity Specialist (Information Services Team).

Determining an evaluation panel

For each tender process, a tender evaluation panel needs to be set up, and should consist of individuals who have an adequate level of competence in the area being tendered. A Chair of the Panel should be appointed to resolve any disputes between panel members and to steer the evaluation process through to its conclusion.

Evaluation methodology and criteria

The evaluation methodology, criteria and weightings must be agreed and approved by the evaluation panel prior to the release of the tender documents to potential tenderers. Refer to the “Evaluation Guidelines for Tender Evaluation Panel” for more information – DataWorks TCC ref 3607161. NOTE: This is a standard approach for evaluation. For other evaluation methods, please refer to the Office of the Auditor-General’s Statement of Good Practice Guidelines 2001/2008 and any subsequent update of this guidance.

Conflicts of Interest and Confidentiality Declarations

Evaluation panel members and individuals who advise/assist with the tender process are to sign Conflicts of Interest and Confidentiality Declarations identifying any potential conflicts of interest that they might have, prior to the commencement of the tender process. Should any conflicts be declared, the project sponsor should be notified, an impact assessment carried out to determine the effect of the potential/actual conflict on the integrity of the tender process utilising the guidance on conflict of interests issued by the Office of the Auditor-General (available at http://www.oag.govt.nz/ ) and the conflict managed as follows: 



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individual released from the tender panel for a material conflict; or conflict not material - individual continues to participate and mitigating action is recorded and signed off by the project sponsor; or register established and potential conflicts declared and mitigated throughout the process.

Tenders for Elected Members

If a tender is received from an Elected Member, special provisions under the Local Authorities (Members Interests) Act 1968 apply. The tender submission will need to be discussed with the Democracy Manager. Further information on the process is available from the Officer of the Auditor-General’s website.

Tenderers

Tenderers must be asked to disclose if they are aware of any potential conflicts of interest between their firm and Tauranga City Council. If this is the case, they must provide the necessary details to Tauranga City Council. Refer ROI, RFP, RFT documents.

Tender responses

When preparing tender documents, advise tenderers to submit their responses:


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

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by a specific closing date and time; and enclosed in a clearly-labelled, sealed envelope, to a specific address.

Refer to the appropriate tender documents Tender register

The Information Services team holds a tender register to record all responses received. The register contains information such as the: 

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tenderer’s name and contact details; the tender for which they are tendering; and whether the tender is compliant with all information requested and therefore, can be received and evaluated.


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All Tauranga City Council employees/advisors are to declare any offers of gifts/hospitality/incentives received from external parties during the tender process, and whether they were accepted or declined. Such declaration shall be made to the relevant Group Manager. Refer to Tauranga City Council Sensitive Expenditure Policy.


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CONTRACT FILE What must the file contain?

The Project Manager must create a contract file, which, as a minimum, must contain (where relevant): 

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all material published by Tauranga City Council in relation to the tender process; all material submitted by tenderers; a tender project plan listing the main ‘milestone’ events;

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a procurement plan;

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the tender evaluation methodology and criteria;

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External review of the contract file

a secure tender file containing all confidential tender/evaluation documentation;

a copy of the written instructions given to the evaluation panel members to guide them in applying the evaluation methodology; minutes of all meetings held by the evaluation panel; written Conflict of Interest and Confidentiality Declarations by individual members of the evaluation panel and those with access to tender process material together with the impact assessments on each actual/potential conflict and related mitigating action; minutes and other details of all meetings, presentations, telephone calls, site visits and any other correspondence between the tenderers and Tauranga City Council during the tendering process; all reference-checking correspondence relating to tenderers; notes and comments associated with the scoring; detailed explanations of any cost estimates or judgements made about any tenders as part of the evaluation process; the panel’s final evaluation, signed and dated by all evaluation panel members; and the recommendation to award, signed by the appropriate delegated authority.

The contract file must represent a clear audit trail of the decision-making process, and clearly demonstrate logic (i.e. the tendering process followed and all aspects in the tender considered). This then enables it to withstand an external review, if carried out.


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ELECTRONIC CAPTURE OF PROJECT AND CONTRACT RECORDS Purpose

The purpose of this section is to advise the rules necessary to identify, register, maintain and protect records and documents of continuing value to Tauranga City Council into DataWorks, to ensure acceptable project and contract related electronic document and records management occurs at Tauranga City Council. Responsibilities for accurate recordkeeping are set out in Appendix 5. These include guidelines for Tauranga City Council staff relating to Contractor and Consultant recordkeeping requirements and recordkeeping guidelines for Tauranga City Councils Contractors and Consultants.

Legislative requirements

The Council is required by the Public Records Act 2005 to keep a full and accurate record of all of its activities in an accessible form. The Council uses DataWorks to fulfill this obligation, therefore, it is important to ensure that all your tender documentation is registered in DataWorks (regardless of whether the document is confidential or not).

Audience

Applies to all Tauranga City Council employees, consultants and contractors (where appropriate).

DataWorks setup

Project Index A project index should be created in DataWorks, as soon as possible. Projects can be created in DataWorks by the Information Integrity team, or nominated person, at any time. Please complete the request form (DataWorks TCC ref 3259745) or contact the Helpdesk for further details. Contract Index Contracts can be created in DataWorks by the Information Integrity team, or nominated person, at any time. Please complete the request form (DataWorks TCC ref 3259744) or contact the Helpdesk for further details.

Title/Description

To ensure that the records in DataWorks can be retrieved quickly and efficiently, it is vital that they are well titled. Metadata is information that describes the content, context, quality, condition, origin and other characteristics of documents. It is structured information that describes, explains, locates, and otherwise makes it easier to retrieve and use our information resources. It represents the who, what, when, where, why and how of our documents. For standards and electronic titling conventions refer to Managing Information Effectively. (DataWorks TCC ref 2154206)


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CONDUCTING THE TENDER Introduction

Tauranga City Council must: 

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Process contracts

take care when conducting a tender to avoid inadvertently creating a premature contract during the process, or unfairly or inadvertently discriminating against any potential tenderer. be aware of public law considerations, such as: 

Local Government Official Information and Meetings Act 1987;

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The Commerce Act 1986;

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The Fair Trading Act 1986;

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Public Records Act 2005;

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Local Government Act 2002;

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Local Government Act 1974 (where applicable);

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Local Authorities (Members Interests) Act 1968.

Follow the tender process rules, procedures and any evaluation methodology and criteria specified in the tender documents. Ensure that any additional material information relating to the tender documents is conveyed to all tenderers in a timely manner.

Employees, contractors and consultants managing a procurement process for Tauranga City Council should take care not to inadvertently create a process contract. Process contracts are contracts governing the tendering process. These contracts set out the rules to be followed by Tauranga City Council and tenderers up to the formal completion of the tender process. This is normally the point when a successful tenderer/s is chosen or all responses are rejected by Tauranga City Council. The issue of process contracts becomes relevant when an unsuccessful tenderer challenges the process followed. Should this challenge reveal that the advertised tender process was not followed, the unsuccessful tenderer may attempt to claim damages for any financial losses incurred in responding to the tender and (sometimes) losses for future profits related to the contract. It is important that Project Managers rigorously follow the rules of the procurement process as advertised and agreed. All Tauranga City Council’s templates for ROI, RFP and RFT documentation contain the following clauses and it is important that these are not removed from the template documentation: 

the reserved right to depart from the procedure;

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the right to negotiate with other parties;

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the right to reject or consider non-complying tenders; and specific guidance stating that t he tender documents (ROI, RFP/RFT) contain no contractual offer and no guarantee exists relating to any volume, value or the placement of any orders related to the tender document (ROI, RFP or RFT).

Please consult Tauranga City Council’s legal department for further advice or assistance with Process Contracts. Requests for additional

Tauranga City Council should ensure that it:


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information and clarification 

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gives consistent answers to all questions; distributes all material answers to all tenderers by way of Notice to Tenderers (“NTT”); and treats all tenderers in a fair and equitable manner.

All communication with potential suppliers should be in writing and issued by the Authorised Representative/Project Manager (who is identified as the single point of contact between potential tenderers and Tauranga City Council during the tender process). No informal communication (such as telephone conversations, individual meetings etc) should be entered into between the Authorised Representative/ Project Manager and any tenderer or potential tenderer. If briefings are to be utilised to educate potential tenderers of the intended procurement, notice of the intended briefing should be distributed through GETS and LG Tenders in the form of a Notice to Proposers/Notice to Tenderers document. Briefings should be conducted by the Authorised Representative/Project Manager, minutes of the briefing should be taken by Tauranga City Council and distributed to all tenderers through a Notice to Tenderers form and posted on the GETS and LG Tenders systems. Should a decision be taken not to distribute the minutes of the briefing the reasons for this should be clearly documented. Refer to the Notices to Tenderers DataWorks TCC ref 3180445. Extensions of time for tenders

template

–

The tender period may be extended if there is no discrimination or unfairness to other t enderers. Tauranga City Council should not agree to a request by an individual tenderer to extend the time for submitting their tender, except in exceptional circumstances. In such a case, the extension should be advised by means of an NTT, distributed to all tenderers with sufficient notice to enable all to benefit equally.

Receiving and registering tenders

Upon advertising a contract for tender a copy of the advertisement showing contract number and date and time of closing must be sent to Records & Information Services (Records Analyst), the Contracts Administrator, the Ground Floor Receptionist and the Information Officer (Copy Centre). Tenders must be received in a locked tender box. However, if received by the mailroom or reception, tenders must be delivered unopened to the Tender Box. It is the responsibility of the Contracts Administrator to inform the mailroom and reception that a tender is closing, well in advance of the closing time/date. Any tenders received prior to the tender closing time/date are to be securely locked away in the Tender Box until the closing date and time for receipt of tenders. The Ground Floor Receptionist will ensure the Tender Box on the Ground Floor is closed at 2:00pm on the due date. As well as opening the box the Contracts Administrator helps with the opening and recording of tenders on the day of closure. Records and Information Services control access to the tenders box. The tender box key is kept in the safe together with the keys of the locked cabinet containing the tenders register. If a tender is too large for the tender box it is to be delivered to Records and Information Services who will lock it in the file room until such time as the tender is opened. After receiving notification of tender closure, a copy is placed in date order on a green ring binder in the contract cupboard in the safe. This is carried out by Records and


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Information Services staff. Tenders always close at 2:00pm and the Records and Information Services staff member must liaise with the Contracts Administrator at the Ground Floor Reception counter on the ground floor at that time. A note of the tender number(s) closing on that date will be required and these are the only documents to be removed; all other documents/tenders remain in the tender box until their tender number is closed for processing. A register of tenders is also kept (locked in safe) in the file room and this is written up detailing the name of the contract/project, method, i.e. one envelope or two envelope, name and address of the company submitting the tender, price, alternate price and any comments necessary. Each tender/contract/project must have a separate page or pages within the register. One person will open the tenders and the second person list the details. On completion the details should be checked before the page is ruled off, signed and date stamped with the contract stamp. The tender contract administration date stamp kept with the tender register should also be changed early on the due date to avoid wasting time processing tenders. Tenders should be counted and agreed when they are removed from the tender box, each tender kept separate from the other and processed separately. The page of each tender stating price tendered and address of tenderer must be date stamped and initialled by both people processing the tenders. Tenders should only ever be opened in a quiet private room, with no possibility of public access or disturbance. When all entries are processed the tender can be ruled off, date stamped and signed by both operators as completed. Likewise no faxed tenders will be accepted either, unless they have been sent to a local agent outside Council where they are properly processed, placed in a sealed envelope and arrive with all other tenders before 2.00 pm on day of closure. Having processed one tender, any other tenders to close on the same day must be recorded as above, one tender at a time. If the tender process is according to the New Zealand Transport Agency Competitive Pricing Procedure, the process will be different. The envelope opened will contain two separate envelopes labelled "Envelope One" and "Envelope Two". Envelope One will contain the name, address and work experience of the tenderer - it should not contain a tendered price. List the names and addresses only of all tenderers and retain Envelope Two in the locked cupboard in Records until advised by the department handling the contract that all criteria for tendering have been met. At this point those people qualifying to tender will have Envelope Two opened, the tender price and deposit recorded and cheques receipted as in other tenders. It is important when using the two envelope procedure to match Envelope Two clearly to the tenderer’s details in Envelope One. Envelope Two must be date stamped across the envelope seal to show that it has not been opened. At the completion of tender processing the tenders register should be photocopied for: 

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the Project Manager or Authorised Representative; and the Contracts Administrator.


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The copies must be placed in inter-office envelopes and addressed as above. When all details are complete the tenders must be taken to the Project Manager or Authorised Representative handling the contract and a signature acquired to release the tender document. Copies of the tender register to be left with the above named. The Contracts Administrator can accept the tender on behalf of the above. The tender register is to be kept locked in the cupboard at all times when not in use. If a late tender is received, the Project Manager is to be notified. The Project Manager will then follow the procedure for late tenders. Faxed or e-mailed tenders

Faxed or e-mailed tenders will not be accepted unless specified in the tender documentation.

Amendments after closing

Amendments to tenders submitted, or additional information or comments, cannot be made to the submitted tender response after the closing date and time. This does not include clarifications sought by Tauranga City Council during the evaluation process.

Late tenders

Late tenders or proposals will only be accepted by Tauranga City Council in exceptional circumstances (the reason late tenders should not be received is this could materially prejudice other tenderers). As a general rule, late tenders or proposals should only be accepted if: 

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Tauranga City Council can be certain that there is no possibility of unfair advantage; the late participant has no knowledge of other tenders or proposals; and the late tender or proposal conforms in all other respects to the criteria set out in the tender or proposal documents.

NOTE: Late tenders can only be accepted or rejected with the approval of the Chief Executive. Confidentiality

The information provided by tenderers to Tauranga City Council should be kept confidential at all times, unless required under legislation (such as the Local Government Official Information and Meetings Act 1987) to release certain information.

Security of tenders

Tauranga City Council should ensure that: 

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tenders remain closed and stored securely until the closing time and date; and once all tenders are opened and registered, they are appropriately stored at all times.


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Once all Tenders/Responses have been registered as opened, confirmation may be sent to all Tenderers/Respondents acknowledging the receipt of their tender response. Tender Receipt Letter template is available and may be sent electronically.


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EVALUATING THE TENDER Evaluation process

The evaluation process must be fair, impartial and capable of withstanding a full external review or audit. It must not deviate from the criteria stipulated in the tender documents or from Tauranga City Council’s Evaluation Methodology and Guidelines. The evaluation is usually conducted independently by the members of the evaluation panel, then consolidated and supported by panel discussions and, ideally, a panel consensus on the outcome. NOTE: Use the same Evaluation Form template for all tender responses - DataWorks TCC ref 4085692.

Evaluation guidelines

Each member of the evaluation team is to receive a copy of the Evaluation Guidelines, in conjunction with the tender responses received – DataWorks TCC ref 3607161.

Evaluation form

The Evaluation Form must identify key comparison factors/evaluation criteria that will be used to assess each tender response. The Evaluation Form is to be completed for each tender response – DataWorks TCC ref 3180474.

Evaluation panel’s responsibilities

Each member of the tender evaluation panel must complete tender evaluations independently, prior to the panel meeting to review the tender responses and the initial evaluation scores.

Evaluation meeting

The evaluation meeting is held so that each member of the evaluation panel can provide their scores to the Project Leader/Facilitator. Each member will be given the opportunity to discuss their scoring with the panel, particularly focusing on any wider variances or outlying scores. The evaluation panel members may amend their scoring to reflect further information obtained during the discussion with other panel members during the evaluation meeting. NOTE: The Project Leader/Facilitator is to document all evaluation meetings and prepare the agreed evaluation report.

Clarification of tender submissions

During the evaluation process, there may be a need to seek clarification from tenderers on their submission. This is a formal process, and must be conducted in writing. Tauranga City Council will document the points from the tender submission that need clarification and release it to the tenderer for response within a certain timeframe. The response will then be used to assist with the evaluation of the tenderer’s s ubmission.

Shortlisting tenderers from ROI process

Tauranga City Council can shortlist from an ROI process and invite shortlisted tenderers to respond to an RFP/RFT. You must seek approval to the shortlist from the appropriate delegated authority prior to informing the ROI tenderers of the outcome of the ROI process. NOTE: You must notify tenderers in writing of the outcome of the ROI process. Refer to ROI Shortlist Letter Template – DataWorks TCC ref 3180440 or ROI Decline Letter Template – DataWorks TCC ref 3180439.

Shortlisting tenderers from RFP/RFT process

Once the RFP/RFT process has been conducted, the evaluation panel can decide to shortlist any tenderers. From the RFP/RFT stage, the shortlisted tenderers can be invited to present their tender to the evaluation panel. You must seek approval to shortlist from the appropriate delegated authority prior to informing the RFP/RFT tenderers of the outcome of the tendering process. NOTE: You must notify tenderers in writing of the outcome of the RFP/RFT process


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Refer to RFP/RFT Shortlist Letter Template – DataWorks TCC ref 3180438 or RFP/RFT Shortlist Decline Letter Template – DataWorks TCC ref 3180437. Presentations by tenderers

Tauranga City Council may, as part of its tender evaluation process, invite each tenderer or shortlisted tenderer to make a presentation to expand on and/or clarify its tender. This also allows the panel panel to test the credibility of the submission. submission. Tenderers should be informed in the tender documents whether presentations are likely to be held. If inviting tenderers to make a presentation, then Tauranga City Council can (as an option) limit the number of personnel attending the presentations to: 

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those that have contributed to the preparation of the tender; and those that will have an involvement in providing the goods or services if their tender is successful.

It is important that Tauranga City Council treats all tenderers fairly and equitably in relation to their presentations. Each tenderer should be provided with sufficient notice of the time and date, and the same presentation brief and allotted amount of presentation time. The evaluation should primarily assess the content of the presentation, rather than the method or form of presentation. Notes of these meetings should be kept on the contract file. Reference checks

Tauranga City Council should ensure that, as part of the due diligence of the tenderers, all reference checks are conducted and noted in writing. It is preferable that reference checks are conducted by the Project Manager prior to the evaluation meeting.

Final evaluations

The evaluation panel should meet to reassess the initial evaluation scores and make any changes they see necessary based on the presentations. All reasons for amending any scores should be recorded and kept with the evaluation documents.

Companies Office search

Prior to finalising the contract, a check should be made of the company name the tenderer gave in their submission against the register of companies held by the Companies Office. This is important as sometimes contractors submit tenders in their trading name or the name they commonly commonly refer to themselves themselves as. The contractor’s name on the contract documentation must be the name that appears on the companies office register. A company search can be be done free of charge charge on the Companies Office website at www.business.govt.nz/companies.


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APPROVAL PHASE Approval of preferred tenderer

All recommendations to select a preferred tenderer are to be signed off by the appropriate delegated authority. The recommendations should follow the format in the Tender Evaluation Memo Template – DataWorks TCC ref 3607073. This ensures that the delegated delegated authority has sufficient information to understand the goods or services sought, the tender and evaluation process, and the rationale for the recommendation.


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ADVISING TENDERERS OF THE OUTCOME Introduction

All tenderers are to be notified of the outcome of the tender process for which they have submitted a tender.

Notifying unsuccessful unsuccessful tenderers

Each unsuccessful tenderer will be: 

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informed that their tender was not successful; provided with the name and overall price of the successful tenderer (but not the make-up of that price), provided that this has been specifically stated in the tender documents; provided with their attributes and the range of other tenderers’ attributes;

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provided with the number of tenderers;

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provided with the price range.

Refer to the RFP/RFT Decline Letter Template – DataWorks TCC ref 3180435. Notifying the successful tenderer

The successful tenderer shall be: formally notified of the outcome of the evaluation by way of a letter of acceptance following formal sign off by delegated authority; 

provided with their attributes and the range of other tenderers’ attributes;

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provided with the number of tenderers;

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provided with the price range.

Any acceptance should always be subject to successful clarifications/negotiations. Care needs to be taken to avoid prematurely creating a contract. Refer to the RFP/RFT Acceptance Letter Template – DataWorks TCC ref 3180436. Debriefing tenderers

Tauranga City Council has an obligation to accept a request for a debriefing session to unsuccessful tenderers. It is at the sole discretion discretion of the unsuccessful tenderer if they would like to be debriefed. Should an unsuccessful tenderer request a debriefing session, then Tauranga City Council should provide the following information: 

a summary of their individual evaluation;

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their individual score; and

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the advantages of the tender that was accepted (at a high level).

If the debrief is in written format, this shall be reviewed by the legal team prior to release. What does Tauranga City Council do with the tenders?

All original copies of the tenders remain the property of Tauranga City Council. Council. Some tenderers ask for their tender submissions to be returned. It is at the sole discretion of Tauranga City Council if it wishes to return the original submissions submissions to the tenderer. tenderer. An increased risk in willingness of tenderers to initiate litigation means that copies of tender documentation must be r etained. If Tauranga City Council decides to return the tender submissions to the tenderers, Tauranga City Council must ensure that no comments from the evaluation panel have been inadvertently written on the tender submissions. Unsuccessful tenderers’ documentation must be filed with Information Management and kept for 7 years.


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WITHDRAWING FROM OR CANCELLING THE TENDERING PROCESS What if a tenderer wants to withdraw from the process?

If a tenderer wants to withdraw from the tendering process after they have submitted a tender, they are to notify Tauranga City Council in writing.

Tauranga City Council’s right to suspend or cancel

Tauranga City Council reserves the right to suspend or cancel the tendering process. Suspending or cancelling a tender process can be undertaken at any stage if: 

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the original requirement/specification for the tender has changed significantly since tender documents were made available; all the tenders received do not comply with Tauranga City Council’s tender request; the integrity of the tender process may be compromised; or the tenders received cannot be adequately or fairly compared or evaluated during the evaluation process.

If this occurs, then Tauranga City Council must advise all tenderers in writing. NOTE: 1.

It is imperative that the clause relating to Tauranga City Council’s right to suspend or cancel the tender process is included in the tender documents to avoid any legal complications.

2.

There are legal implications in suspending or cancelling a tendering process. Discuss Tauranga City Council’s reasons with the appropriate delegated authority prior to embarking on this option, as legal advice may be required.


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DUE DILIGENCE Introduction

Due diligence provides Tauranga City Council with an opportunity to test a tenderer’s proposed expectations and understanding of the procurement.

Is due diligence necessary?

Formal due diligence is normally used for complex, high-value procurements or disposals. It is usually unnecessary for simple, routine procurements. The tender documents should state whether due diligence may be undertaken.

Issues to be addressed during a due diligence process

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The tenderer’s ability to deliver the goods or services for the price tendered. This is particularly important where the tenderer submits a comparatively low price; the terms and conditions of any proposed financing structures, including the certainty of funding and the tenderer’s ability to service the debt; the financial viability of the tenderer; the experience of either the tenderer or any proposed sub-contractor in providing similar goods or services; credit and/or reputation checks (reference checks); the qualifications or credentials of key personnel (e.g. obtaining curricula vitae and meeting with individuals to discuss their relevant experience and understanding of Tauranga City Council’s requirements); the adequacy of the tenderer’s proposed approach to the procurement, and whether it is likely to meet the key objectives; site visits to check the adequacy and condition of infrastructure, equipment and resources that will be used in meeting Tauranga City Council’s requirements; and examination of work or product samples.


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POST-TENDER NEGOTIATIONS/CLARIFICATIONS Introduction

Post-tender negotiations/clarifications can effective risk management tool. Their objectives should be to: 

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be an primary

test the understandings and underlying assumptions that have influenced a tenderer in preparing its costings/prices. The clarifications process should rectify any false assumptions; achieve operational refinements or enhancements. Care should be taken that this does not lead to a price reduction exercise which is unethical; finalise contract details.

Negotiations can only be carried out if contemplated in the tender document. The negotiation/clarification team

The skills and experience of the negotiation/ clarification team should be commensurate to the value, risk and complexity of the procurement.

Negotiations/clarifications to be conducted ethically

Tauranga City Council should ensure that: 

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all negotiations/clarifications are conducted ethically; and it does not potentially disadvantage other tenderers by negotiating an agreement that is materially different in scope from that proposed in the tender documents.

What if negotiations/ clarifications fail?

Unfortunately, at times, negotiations/clarifications do fail. Should the outcome of the negotiations/ clarifications be unsatisfactory, Tauranga City Council should reassess its position and decide whether it should negotiate with the next highest-ranked tenderer (subject to the approval of the evaluation panel and the appropriate delegated authority).

Recording the negotiations/clarifications

All negotiation/clarification meetings and any changes to the contract should be recorded in writing. By the end of t he negotiation/clarification process, Tauranga City Council and the supplier must have the same expectations about the obligations of each party and how the contract will subsequently operate. All substantive issues must be agreed and the contract amended to reflect the agreed direction.


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THE CONTRACT Introduction

A contract is a legally binding agreement (usually in writing) committing two or more parties to carry out certain activities, by an agreed future date, for an agreed price.

The contract

The contract document should: 

be sufficiently comprehensive to meet the objectives of the procurement;

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clearly outline the responsibilities of t he contractor;

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reflect the full specification of the goods or services;

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be consistent with the conditions specified in the procurement process; define and protect the rights and obligations of all parties; include contract performance clauses. These should be realistic and align with the requirements listed through the tender process documents; set realistic timeframes to measure supplier performance. These can range from informal supplier reviews to formal supplier appraisals;

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specify the term of the contract; and

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include set prices or rates as appropriate.

Awarding the contract

The form of tender and letter of acceptance creates a contract on the basis of the tender documentation and tender submission. Where your form of tender and/or acceptance letter does not create a contract, you must ensure that your formal contract is signed by all parties prior to contract commencement.

Filing of final contract

The original signed copy of the contract must be sent to Information Services for scanning into DataWorks and filing in secure storage.


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REGISTERED OR QUALIFIED SUPPLIER LISTS Pre-qualified suppliers

Pre-qualification is a method where Tauranga City Council assesses suppliers of particular goods and/or services against predetermined criteria and then invites only those suppliers who satisfy the pre-qualification criteria to respond. Suppliers that are successful in meeting the prequalification criteria are included on a database maintained by Tauranga City Council. Pre-qualification does not form a contractual or legal relationship between Tauranga City Council and the pre-qualified supplier. Essentially, the supplier has simply met preliminary standard criteria and will be required to meet other evaluation and performance criteria as part of a procurement process. When Tauranga City Council makes use of pre-qualified suppliers a current list must be made publicly available, through the GETS and LG Tenders systems. Other suppliers, currently not on the list, may apply to join the list at any time. TCC must ensure that all qualifying suppliers are included in the list within a reasonable period of time, taking into account the conditions for participation and the need for verification. When compiling pre-qualified supplier lists Tauranga City Council will need to provide: 

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information required from suppliers must be consistent (no one supplier provided any additional information) and correct; the method that will be used to evaluate pre-qualified suppliers must be included on the list; information on who will approve a supplier’s inclusion on the list;

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the method that will be used to maintain the list;

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how suppliers will be informed of the results;

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documentation and recording of the results of the process (and the need for retention of documentation for audit and probity purposes).


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PANEL CONTRACTS Panel contracts

Subsequent to a competitive tender process, Tauranga City Council has the right to establish and award a contract to a panel of suppliers from whom they may purchase goods or services at their sole discretion. Tauranga City Council should ensure that the contract does not contain an exclusive right to supply from any of the successful tenderers, nor guarantee that they will receive requests to supply goods or services from Tauranga City Council as a result of this contract. All tender documentation should clearly state where Tauranga City Council is seeking to engage a panel. Documentation should include: 

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how many suppliers will be on the panel – if this is undetermined, the documentation should state how the evaluation team will decide this; the criteria Tauranga City Council will use to evaluate suppliers against each other and against the public entity’s needs; what will be required of suppliers in terms of service levels, response times and other performance measures; how Tauranga City Council will engage panel members to do particular work; and the circumstances that may lead to a supplier being removed from a panel, such as insolvency.


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EXCEPTIONS TO THE OPEN TENDERING REQUIREMENT Introduction

In some instances Tauranga City Council is not required to openly tender its requirements for goods and/or services. There are strict rules around what constitutes an exception to openly tender. Exceptions are not to be used to avoid competition, protect domestic suppliers or discriminate against any domestic or foreign supplier. Where appropriate, Tauranga City Council may award contracts by following the sole source or closed tender options outlined in this procurement manual. Any exception to an open tender must be approved by the delegated authority.

Exceptions

Exceptions to the open tendering requirements include: 

where, in response to a prior open tender: 

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no tenders were submitted; the tenders that were submitted did not conform to the essential requirements contained in the tender document; the tenders that were submitted did not satisfy the conditions for participation.

where, for works or art, or for reasons connected with the protection of exclusive rights, intellectual property rights, or where there is an absence of competition for technical reasons, the goods or services can only be supplied by a particular supplier, and no reasonable alternatives or substitutes exist; for additional delivery by the original suppliers, which are intended either as replacement parts, extensions or continuing services or upgrades of existing equipment, software, services or installations, where a change of supplier would compel Tauranga City Council to procure goods or services not meeting requirements, so interchangeability with existing equipment, software, services or installations, or conditions under original supplier warranties; for goods purchased on a commodity market (e.g. goods bought and sold for future delivery at a specific price through an exchange); if Tauranga City Council’s requirements include the procurement of a prototype or a good or service that is developed that Tauranga City Council requires in the course of, and for, a particular research experiment or study. Once such a contract has been fulfilled, any subsequent procurement of such goods and/or services will be required to be openly tendered in accordance with the Valuation of Contracts rule outlined in this manual; in the case of an emergency procurement.


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APPENDIX 1 - DEFINITIONS 

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Added value premium - the amount more that Tauranga City Council is prepared to pay for the output offered by an alternative proposal. Alternative proposal / response / tender - an alternative proposal / response / tender offers an output/methodology that is different from that specified in detail within the RFP/RFT/RFQ/ROI.

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Bond – a financial guarantee from a recognised institution to ensure satisfactory performance of the contract requirements.

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Commercial in confidence (CIC) – confidential information provided for a specific purpose that is not to be used for any other purpose.

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Conforming proposal/response/tender - a conforming proposal is one that is within the scope of the RFP/RFT/RFQ/ROI and meets requirements of the RFP/RFT/RFQ/ROI. Contingency – sum of money provided for within the allocated project budget in addition to the contracted sum that is available for use for unplanned requirements that were not foreseen at the time of c ontract – usually 5% to 10% of the contracted sum.

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Consultant – an individual, firm, company or other legal body providing information, advice or service.

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Contract – an agreement or set of agreements between two or more parties enforceable in law.

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Council – Tauranga City Council.

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Delegated authority – an authority, granted by Council resolution to staff (or by sub-delegation from one staff member with delegated authority to another) to do, approve, or otherwise commit Council as prescribed by the specific wording of such delegations. Expression of interest (EOI) – see Registration of interest (ROI). Intellectual property – property that derives fr om the w ork of the mind or intellect, specifically, an idea, invention, tr ade secret, process, program, data, formula, patent, copyright, or trademark or application, right, or registration. Notice to tenderers (NTT) – a notice issued to all tenderers before the close of tenders which, upon issue, becomes part of the tender documents.

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NZTA - New Zealand Transport Agency.

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Output – the desired result.

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P-Card/Purchasing Card – Tauranga City Council credit card.

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Performance Specification – this type of specification defines the output or standard required rather than the inputs and methods required. The method of achieving the output is left to the contractor or consultant to determine. Professional services - professional services include services typically provided by consulting engineers, iwi, planners, public transport planners, surveyors and other professionals. Professional services contribute to the delivery of approved activities and include strategy or policy development, planning, investigation and design services, and the supervision of works or services contracts. Quote – the price stated to complete a given task. Usually results in a contract where the documentation is normally less than that required for a Tender. Registration of interest (ROI) – an invitation to the market for companies or individuals to register their interest in providing services or carrying out works which may be either specific or general. Respondent – a supplier submitting a r esponse to an RFQ/RFI document issued by Tauranga City Council. Request for information (RFI) – a formal request to the market for information only. It is not a request for offers from the market. It is also not a supplier selection tool. Request for proposal (RFP) – a formal means of seeking offers from the market for goods or services where Tauranga City Council is open to supplier innovation; that is, it is the outputs and outcomes that are important, not the process the supplier follows to deliver the outputs or outcomes. Request for quotations (RFQ) – a formal means of seeking offers fr om the market for goods or services where price is the main selection criteria, the requirement is for reasonably “stock standard” or “ off the shelf” goods or services, and the procurement is low risk. Request for tender (RFT) – identical in structure and process to the RFP, except that it is used where Tauranga City Council’s specification or requirements are clearly defined and there is little room for flexibility or innovation and hence price can be more accurately determined. Risk – An uncertain event or condition that, if it occurs, has a positive or negative effect on the objective. Risk management – The culture, processes and structures that are directed towards the effective management of opportunities and adverse effects. Risk management is achieved through the systematic application of policies, procedures, and checking and auditing mechanisms to identify potential risks and lessen their likelihood or impact.

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Specification – the specification defines the manner in which the work is to be carried out to achieve an end result.

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Staff – all employees of Tauranga City Council. Excludes Elected Members.

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Supplier quality premium - the amount more that Tauranga City Council is prepared to pay for a higher-quality supplier under the price/quality evaluation methodology. Sustainability – is about making sure the decision and actions of today won’t compromise what we can achieve in the future. Tag (Tender Tag) – a qualification or condition stated or implied by a tenderer or party submitting a quote, which seeks to make the price or outcome conditional upon certain stated (or implied) assumptions being satisfied. Tags generally create a degree of uncertainty as to ultimate contract price or outcome. TCC - Tauranga City Council. Tender – a competitive process to determine the price that tenderers offer to provide works or services for Tauranga City Council in accordance with various terms and conditions. This can include an open tender, available to anyone in the marketplace, or a closed (or private/invited) tender, where the tenderers are selected and invited by Tauranga City Council.. Tender Documents – the documents which are issued to prospective tenderers by Tauranga City Council as part of the tender process. Tender evaluation panel/team – the group of people Tauranga City Council uses to formally assess tenders against set evaluation


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criteria following prescribed evaluation procedures. 

Tenderer – a supplier submitting a response to an ROI/RFP/RFT document issued by Tauranga City Council.


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APPENDIX 2 - STATEMENT OF BUSINESS ETHICS Introduction

New Zealand signed the United Nations Convention Against Corruption in December 2003. The Convention recommends the development of codes of conduct to regulate public sector business dealings and contractual relations with the private sector. Tauranga City Council documents its statement of business ethics to ensure that business relationships between itself and the private sector are fair.

Principles

Tauranga City Council is expected to use public resources effectively and efficiently, be committed to dealing with suppliers and individuals in a fair, honest and equitable way and avoid any conflicts of interest (whether real or perceived). These principles enable suppliers (and potential suppliers) to have effective access to Tauranga City Council through open and transparent procurement practices.

Compliance by Tauranga City Council employees, contractors, consultants or procurement agents

The following principles are to be followed by all Tauranga City Council staff, contractors, consultants or procurement agents acting on behalf of Tauranga City Council, in respect of the management of, involvement in, and advice on procurement processes: 

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Obligation of tenderers, suppliers, consultants, contractors, or procurement agents

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full compliance with Tauranga City Council policies and procedures; all tenderers will be treated with impartiality and fairness and be allowed equal access to information and opportunities to submit tender responses; call for competitive tender processes only when Tauranga City Council has a genuine intention to proceed to contract; no engaging in deceptive or misleading conduct (as defined under the Fair Trading Act 1986); price fixing is to be avoided. Fair and open competition should be encouraged while seeking value-for-money; attempt to minimise costs to tenderers participating in procurement tender processes; protect where law permits, commercial-in-confidence information from tenderers or established suppliers; avoid situations where employees’ private interests may conflict with their public duty; respond to reasonable requests for information and/or advice promptly; deal honestly with suppliers and pay accounts in accordance with agreed payment terms; and not solicit or accept financial or other benefits from a supplier (or potential supplier) for performing official duties. Respect the conditions and requirements stated in tender documentation supplied by Tauranga City Council. Prevent the unauthorised release of commercial-inconfidence information. Not offer employees, consultants and contractors employed by Tauranga City Council any financial incentives or inducements which may lead to, or be seen as leading to, gaining an unfair advantage over competitors. Respect the obligation of Tauranga City Council staff to comply with government and public sector procurement policies. Not act secretively or fraudulently.


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Conflict of interest

Not discuss any Tauranga City Council contract or any other business dealings with the media, without prior written approval from Tauranga City C ouncil. Respond promptly to all reasonable requests for advice or information from Tauranga City Council’s authorised contacts. There are restrictions on the receipt of gifts or invitations to lunches, functions or other entertainment by Tauranga City Council employees. Please refer to the Sensitive Expenditure Policy for details. Suppliers and tenderers should not offer employment to Tauranga City Council’s key employees, consultants and contractors involved in processes which may result in a conflict of interest. Suppliers (including tenderers) who fail to comply with these obligations could face an investigation for corruption or other offences, which could lead to the potential loss of work, termination of contract and damage to reputation.

There is a conflict of interest where an officer or an Elected Member’s duties or responsibilities to Tauranga City Council could be affected by some other interest or duty that the officer or elected member may have. Tenderers may also be in a position where they have a conflict of interest in terms of their relationship with either a Tauranga City Council employee, consultant or contractor working on the tender or proposal or due to their relationship with other tenderers. Tauranga City Council will ensure that employees, consultants and contractors involved in tender processes register any potential or perceived conflict. These conflicts will be assessed by Tauranga City Council management to determine, mitigate and effectively manage the extent of the conflict.

Who to contact about the statement?

Tauranga City Council’s City Engineer can be contacted should you have any queries regarding this ethics statement.

Internal Audit within Tauranga City Council (still to be defined)

Tauranga City Council’s Internal Audit function plays a vital role in ensuring that systems and procedures are in place to prevent and deter fraud and corruption. Internal Audit liaises with management to recommend changes in procedures to reduce and prevent losses to Tauranga City Council. Internal Audit are empowered to access all records, documentation and correspondence relating to financial and other transactions where considered necessary, access third party records relating to transactions between Tauranga City Council and the supplier, request and receive explanations that are regarded necessary relating to any matter under examination, enter at all reasonable times on Tauranga City Council premises and require any employee, contractor, consultant or procurement agent of Tauranga City Council to account for cash or any Tauranga City Council property under their control or possession. Internal Audit will include reviews of system controls, fraud and corruption tests, spot checks and unannounced visits within their audit programme.

How to report unethical conduct

This document is designed to prevent, detect and deter fraud and unethical conduct and to take immediate and effective action against any attempted fraudulent act affecting Tauranga City Council and/or its assets. Unethical conduct should be reported to your immediate Manager or Group Manager.


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APPENDIX 3 - SUPPLIER SELECTION METHODS (Adapted from the NZTA Procurement Manual. More detailed guidelines for each supplier selection method are contained in the NZTA Procurement Manual and must be followed for NZTA projects). Where there is an inconsistency between this document and the NZTA manual, this document shall apply.

Introduction The following supplier selection methods may be used, as appropriate, for Council procurement activities: 

direct appointment;

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lowest price conforming;

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purchaser nominated price (target price);

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weighted attribute;

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price quality; or

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quality based (Brook’s Law).

One of these supplier selection methods (excluding the weighted attribute method) shall be used when purchasing outputs for act ivities funded under s20 of the LTMA. The lowest price conforming, weighted attribute and price quality supplier selection methods include competition on price. To ensure that price competition is fair those outputs which suppliers are asked to price must be very well specified. The risk of claims for works or services that were arguably not required will be high if the outputs that are to be priced are ambiguously described in the RFP/RFT. Professional services are often very difficult to precisely describe and therefore any price competition has to be carefully managed. Accordingly, use of the lowest price conforming supplier selection method to select a professional services supplier may be relatively uncommon. Direct Appointment

Direct appointment is a supplier selection method in which the Council selects a single supplier and negotiates the contract terms, including price. Specific criteria and procedures are to be followed for NZTA subsidised contracts. However, the following procedures also apply for all other Council contracts where direct appointment is the selected option.

Using direct appointment Direct appointment may only be used to select a supplier and establish a contract when: 1. The contract value is below the tender threshold, or 2. The supplier selection process commences, but only one potential supplier is identified, or 3. A monopoly supplier situation exists. In all instances Tauranga City Council’s Procurement Policy must be followed. Negotiation Negotiate contract terms with the preferred supplier and establish a contract that is designed to obtain the best value for money. Negotiation is the basis for determining all contract terms, including price. Alternative proposals The negotiation process can accommodate any alternative proposals offered by t he preferred supplier. Lowest Price Conforming

Lowest price conforming is a supplier selection method in which the preferred supplier meets all the requirements set out in the RFP/RFT and offers the lowest-priced tender, after deducting any added value premium. It is best applied when the output required is well specified.

Using lowest price conforming Lowest price conforming should be used where the Council determines that best value f or money will be obtained by having suppliers compete on price alone and no premium for additional quality is warranted. The preferred supplier is the supplier that offers the lowest price and meets all the minimum requirements, including quality, as set out in the RFP/RFT. Tender evaluation procedure When selecting a supplier using the l owest price conforming method, the tender evaluation procedure below shall be used. Step 1

Rank tenders in ascending order based on price.

Step 2 Evaluate all tenders (except for alternative tenders). Commence with the lowest-priced tender. Determine that the tender is within the RFP/RFT’s scope and requirements. Evaluate each non-price attribute on a pass or fail basis. Reject (exclude from further consideration) any tender that fails against an Cease evaluating tenders when the first conforming tender is identified.    

attribute.

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Step 3 Evaluate alternative tenders. Evaluate all alternative tenders (regardless of price) in accordance with the second, third and fourth bullets under step 2. The NZTA Procurement Manual (sections 10.16 and 10.17) provides further guidance on the evaluation of alternative tenders and added value premiums. 

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Step 4 Identify the preferred supplier. The preferred supplier is the supplier that presents the tender that is within the RFP/RFT’s scope and requirements, passes on all nonprice attributes and has the lowest price after deducting any added value premium (if applicable). 

Guidelines for tender evaluation Guidelines on the selection and evaluation of non-price attributes are set out later in this Appendix and more detail is provided in the NZTA Procurement Manual. A two-envelope system may be used involving the evaluation of the non-price attributes of each tender before opening the price envelopes, if the extra time and effort required is considered to be beneficial. Alternative tenders Lowest price conforming can accommodate alternative tenders. Negotiation Council may negotiate with the preferred supplier, providing any negotiations are carried out in accordance with the RFP/RFT’s requirements. Purchaser Nominated Price (Target Price)

Purchaser nominated price is a supplier selection method where the Council fixes the price to be paid and advises this through the RFP/RFT. Tenders must meet the requirements of the RFP/RFT and are evaluated on the basis of quality only.

Using purchaser nominated price Purchaser nominated price should be used where the Council requires outputs that are difficult to specify but it has determined a price that it is prepared to pay for those outputs and described the desired outcome (in the RFP/RFT). Best value for money is then obtained by selecting the supplier that provides the best tender for the price set out in the RFP/RFT. The best tender will be determined on the basis of the non-price attributes of the supplier and any differences that the competing suppliers offer in terms of quality or quantity of output. This method is typically used for such activities as str ategy studies, feasibility studies, transportation studies and investigations. Tender evaluation procedure When selecting a supplier using the purchaser nominated price method, the following tender evaluation procedure shall be used. Step 1 Evaluate tenders. Determine that the tender is within the RFP/RFT’s scope and requirements. Grade each non-price attribute for each tender from zero to 100, in steps of five. Reject (exclude from further consideration) any tender that fails against an attribute. Multiply the weight (specified in the RFP/RFT) by the grade for each non-price attribute and divide by 100. The result is the index for each non-price attribute. Add all the indices for each tender. The result is the weighted sum of the non-price attribute grades.    

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Step 2 Identify the preferred supplier. The preferred supplier is the supplier that presents the tender that is within the RFP/RFT’s scope and requirements, passes on all nonprice attributes and has the highest weighted sum of the non-price attribute grades. 


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Guidelines for tender evaluation The purchaser nominated price method is not recommended for physical works or routine professional services engagements. Alternative tenders When the purchaser nominated price method is used, all tenders are in effect alternative tenders. However, their evaluation will be based on grading the non-price attributes described in the R FP/RFT alone. Negotiation Council may negotiate with the preferred supplier, providing any negotiations are carried out in accordance with the RFP/RFT’s requirements. However, any negotiations that led to a decision to let a contract for a price other than the price nominated in the RFP/RFT would destroy the integrity of this method. Weighted Attribute

The weighted attribute method seeks to balance the trade off between price and quality. Under this model, the price and non-price attributes are weighted to reflect their relative importance for achieving the procurement outcome (e.g. a cleaning or maintenance contract where service delivery methodology and price are the key attributes for achieving best value for Council, so receive higher weightings). The quality attributes of suppliers whose tenders meet the RFP/RFT’s requirements are graded, and the preferred supplier is selected by balancing price and quality through the use of a formula.

Using weighted attributes Weighted attributes should be used where the Council determines that best value for money will be obtained by having suppliers compete on both price and quality and selecting the supplier that offers the best combination of the two. Note that the weighted attribute method is not available for outputs funded under s20 of the LTMA. Tender evaluation procedure When selecting a supplier using the w eighted attribute method, the following tender evaluation procedure shall be used. Separation of non-price and price information Tenders must be submitted in two s eparate envelopes. Envelope 1 must contain all t ender information, other than the price. Envelope 2 must contain the price information. Steps 1–5 below must be completed before opening Envelope 2. Grade the non-price attributes. Step 1 Open Envelope 1. Determine that the tender is w ithin the RFP/RFT’s scope and requirements. Grade each non-price attribute for each tender from zero to 100, in steps of five. Reject (exclude from further consideration) any tender that fails against an attribute.    

Step 2 Calculate the price grade. Open Envelope 2. Convert the total price (excluding provisional sums) to a grade using this formula:  

Price grade = (median conforming tender price – tender price) x 100 + 50 median conforming tender price Step 3 Identify the preferred supplier. Multiply the weight (specified in the RFP/RFT) by the grade for each non-price attribute and divide by 100. The result is the index for each non-price attribute. Calculate the index for each evaluation criterion in each tender. This is done by multiplying the respective tender grades by the corresponding weighting factors given in the RFP/RFT. Sum the indices for each of the tenders and round them off to the nearest whole number. Select the tender with the highest index as the preferred tender. Where more than one tender shares the top overall index, the preferred supplier is the tenderer with the lowest price. 

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The preferred supplier is the supplier that presents the tender that is within the RFP/RFT’s scope and requirements, passes on all non-price attributes and has the highest total index. Guidelines for tender evaluation This is a commonly used supplier selection method and one that can be applied to a variety of procurement activities. Use of the weighted attribute method The use of the weighted attribute method is limited to staff who fully understand how the method works. Care needs to be taken in the selection of attributes, the assignment of weightings and the grading of tenders. The evaluation team should be led by someone experienced in this method of evaluation. The balance between price and non-price attributes should be based on: the potential variability in the quality of the goods, services or works; the importance of quality versus price.  

Use of the simplified weighted attribute method for contracts valued at below $150,000 is permitted. The simplified weighted attribute method is identical to the weighted attribute method except it uses only one envelope with the consequent removal of the envelope actions in steps 1 & 2 above.

Price Quality

Price quality is a supplier selection method where the quality attributes of suppliers whose tenders meet the RFP/RFT’s requirements are graded and the preferred supplier is selected by balancing price and quality through the use of a formula. For NZTA projects this method replaces the weighted attribute method.


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Using price quality Price quality should be used where the Council determines that best value for money will be obtained by having suppliers compete on both price and quality and selecting the supplier that offers the best combination of the two. The process to determine how much more to pay for additional quality must be clearly shown. Tender evaluation procedure When selecting a supplier using the price quality method, the following tender evaluation procedure shall be used. Separation of non-price and price information Tenders must be submitted in two separate envelopes. Envelope 1 must contain all tender information, other than the price. Envelope 2 must contain the price information. Steps 1–5 below must be completed before opening Envelope 2. Step 1 Grade the non-price attributes. Open Envelope 1. Determine that the tender is w ithin the RFP/RFT’s scope and requirements. Grade each non-price attribute for each tender from zero to 100 in steps of five. Reject (exclude from further consideration) any tender that fails against an attribute.    

Step 2 Calculate the weighted sum margin. Multiply the weight (specified in the RFP/RFT) by the grade for each non-price attribute and divide by 100. The result is the index for each non-price attribute. Add all the indices for each tender. The result is the weighted sum of the non-price attribute grades. Deduct the lowest weighted sum from each tender’s weighted sum. The result is the weighted sum margin for each tender. 

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Step 3 Calculate the supplier quality premium. Calculate the supplier quality premium for each tender using the following formula: 

Supplier quality premium = estimate x (weighted sum margin / price weight) 

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The estimate used in the formula must exclude any amount fixed by the Council, such as any provisional sums contained within the schedule of quantities. The estimate used in the supplier quality premium formula must be included in the RFP/RFT to ensure that the process is transparent.

Step 4 Confirm the supplier quality premium. Review the supplier quality premium calculated for each tender. Confirm that the supplier quality premium for each tender represents the amount more that the Council is prepared to pay for a higherquality supplier. Replace any supplier quality premium with an acceptable figure if the review shows that any supplier quality premium does not represent the extra amount that the Council is prepared to pay. Confirm the new figure.  

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Step 5 Calculate the added value premium. Calculate the supplier quality premium for alternative tenders by following steps 1–4 above. Calculate the added value premium for each alternative tender by following the method set out in section 10.17 of the NZTA Procurement Manual.  

Complete steps 1–5 before opening Envelope 2. Step 6 Identify the preferred supplier. Open Envelope 2. Deduct each tender’s supplier quality premium and each alternative tender’s added value premium from the price.  

The preferred supplier is the supplier that presents the tender that is within the RFP/RFT’s scope and requirements, passes on all non-price attributes and has the lowest price less supplier quality premium and less any added value premium. Guidelines for tender evaluation Rules and guidelines on the selection and evaluation of non-price attributes are set out later in this Appendix and more detail is provided in the NZTA Procurement Manual. Use of the price quality method The use of the price quality method is limited to managers who fully understand how the method works. The choices made will influence the tender evaluation outcome because of their impact on the supplier quality premium values – the amount more that the purchaser is prepared to pay for a higher quality tender. Supplier quality premiums are influenced by: the price estimate chosen non-price attributes how the non-price attributes are graded (the spread of grades) weights given to the non-price attributes weight given to price.     

All impact on the supplier quality premiums, but the most significant impact typically arises from the weight given to price. Accordingly, the price weight should generally be between 25 and 70%. Supplier quality premium values must not be adjusted for an arbitrary or irrelevant reason. Adjustment will in most instances be viewed by suppliers as an admission by the Council that some aspect of the procurement procedure design was wrong. For example, when a decision is made to adjust all values by a fixed percentage, this will be seen as an admission that the chosen price weight was wrong. Council shall advise each tender submitter of the value of their supplier quality premium, and how it differed from the preferred supplier’s supplier quality premium.


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Alternative tenders Price quality can accommodate alternative tenders. When using price quality for professional services, true alternative tenders are unlikely to be received. In most cases, professional services tenders are in effect all alternatives. Negotiation Council may negotiate with the preferred supplier, providing any negotiations are carried out in accordance with the RFP/RFT’s requirements.


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Quality Based (Brook’s Law)

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Quality based is a supplier selection method where the quality attributes of suppliers whose tenders meet the requirements of the RFP/RFT are graded and the preferred supplier is selected solely on that basis. A price is then negotiated with the preferred supplier, based on their price proposal.

Using quality based Where the scope of the outputs (works or services) cannot be fully described, competition on price may not help to obtain best value for money. The quality based method should be used where the Council determines that best value for money will be obtained by selecting the supplier on the basis of supplier quality alone. There is no competition on price. Negotiation will take place with the supplier who has the highest overall index, to achieve the best value for Council (e.g. selecting an architect for a design project). It is expected that the use of this method within Council will be rare. The quality based method is an advanced component of the NZTA Procurement Manual where the output being purchased is anything other than professional services. As an advanced component, Council must have the NZTA’s prior written approval under s25 of the LTMA for its use on NZTA funded projects. Tender evaluation procedure When selecting a supplier using the quality based method, the following tender evaluation procedure shall be used. Separation of non-price and price information Tenders must be submitted in two separate envelopes. Envelope 1 must contain all tender information, other than the price. Envelope 2 must contain the price information. Council staff must complete steps 1–3 before opening Envelope 2. Step 1 Grade the non-price attributes. Open Envelope 1. Determine that the tender is within the RFP/RFT’s scope and requirements. Grade each non-price attribute for each tender from 0-100. Reject (exclude from further consideration) any tender that fails against an attribute.    

Step 2 Calculate the weighted sum. Multiply the weight (specified in the RFP/RFT) by the grade for each non-price attribute and divide by 100. The result is the index for each non-price attribute. Add all the indices for each tender. The result is the weighted sum of the non-price attribute grades. 

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Step 3 Identify the preferred supplier. The preferred supplier is the supplier that has the highest weighted sum of the non-price attribute grades. 

Step 4 Negotiate with the preferred supplier. Open the preferred supplier’s Envelope 2 and enter into price negotiations. Negotiation must be conducted in accordance with the RFP/RFT and any contract let must be within the scope of the RFP/RFT. If agreement cannot be reached with the preferred supplier, that tender must be rejected. The supplier that has the next highest weighted sum of the non-price attribute grades is then the preferred supplier – begin step 4 again with the new preferred supplier. When a contract is awarded, the unopened Envelope 2 from each supplier that did not take part in the final negotiation process must be returned.   

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Guidelines for tender evaluation Rules and guidelines on the selection and evaluation of non-price attributes are set out later in this Appendix and more detail is provided in the NZTA Procurement Manual. Under this method, price is typically negotiated with the preferred supplier before a contract is let. This method can also be used to establish a price mechanism, rather than a price. Prior to determining a price, it is necessary to establish an agreed scope of output. This must be communicated to all suppliers before the suppliers responding to the RFP/RFT present their price tenders (Envelope 2). If the agreed scope of the outputs is not communicated there is a risk that the Council and suppliers will form different views of what is required. To address this issue, each RFP/RFT must include a statement of the expected scope of the required outputs and estimated price. Suppliers responding to the RFP/RFT should be encouraged to comment on the accuracy of the scope and price statement prior to the closing date for RFP/RFT submission so that refinements can be made if necessary. A staged approach to supplier selection is recommended with this method. Council would then establish a short list of at least three suppliers and then enter into a formal dialogue with those suppliers (individually or collectively or both) to refine the scope and price statement before the price tenders (Envelope 2) are submitted. A well prepared expected scope of the outputs and estimated price statement, along with benchmarking against similar engagements will increase the Council’s confidence that the price is reasonable. Open book accounting can also be used to achieve price confidence when this method is used to establish a price mechanism (rather than a price). Alternative tenders Alternative tenders cannot be accommodated with the quality based method. All tenders are in effect alternative tenders. Negotiation Negotiation plays a major role in obtaining value for money under the quality based method. Managers using this method need to be clear about their requirements and know what a reasonable price should be so that they can negotiate on an informed basis. Whole-of-life costs should also be considered for the activity when negotiating on price. Rules for use of non-price attributes As a minimum the following three non-price attributes shall normally be used for RFT/RFP’s where attributes are sought: 

relevant experience


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relevant skills methodology.

Exceptions include instances where these attributes may have already been sought in an earlier process – an ROI for example. Additional non-price attributes may also be used to evaluate tenders, including:   

track record resources financial viability.

Over and above these attributes it is allowable to add further bespoke attributes to enhance the selection process and obtain better value for money. See NZTA Procurement manual 10.14. Tenders that fail on the evaluation of any non-price attribute or score below a nominated grade for any non-price attribute shall be failed. The RFP/RFT must describe the non-price attributes to be used in the tender evaluation. The descriptions must be specific to the outputs for which tenders are sought, must explain what the purchaser values in each attribute, and must be consistent with the attribute definitions in this document. The RFP/RFT must explain how each non-price attribute will be evaluated, including stating which attributes will be evaluated on a pass or fail basis alone and which (where the supplier selection method allows) will also be graded (given a points grade between 0 and 100). The RFP/RFT must explain when Council will reject a tender for either failing on the evaluation of any non-price attribute or scoring below a nominated grade for any non-price attribute. The RFP/RFT must give the numerical weight to be applied to each of the non-price attributes that are to be graded. When the supplier selection method used requires that any attribute (non-price or price) be given a weight, the sum of all weights (non-price and price) must be 100. Non-price attribute definitions The following non-price attributes, as defined in the NZTA Procurement Manual, are: A. Required  

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relevant experience – the supplier’s previous experience in technical areas relevant to the outputs being purchased relevant skills – the competence of the personnel that the supplier proposes to use, with particular regard to their skills and experience in areas relevant to the outputs being purchased methodology – the procedures the supplier proposes to use to achieve the specified end r esult

B. Optional   

track record – the supplier’s record of delivering works or services to the quality standards required, on time and within budget resources – the equipment, including facilities and intellectual property, that the supplier proposes to use to deliver the outputs financial viability – the supplier’s ability to access the financial resources required to deliver the outputs to be purchased.

Each of these is described in further detail below. Relevant experience and track record These two attributes should not be confused. Track record does not have to be demonstrated in delivering the types of works or services similar to those for which tenders are sought – it is simply about the reputation of the supplier for ‘delivering’. Relevant experience on the other hand is about experience that is ‘relevant’ to the works or services. There is also a difference in focus on who must have the experience and who must have the track record. For track record, it is the track record of the supplier that is important; with relevant experience, both the supplier and the personnel that will deliver the works or services should be considered. Track record is not one of the three required non-price attributes but, in many instances, it will be an essential attribute and a supplier’s reputation for delivery will effectively be a prerequisite for selection. Relevant skills In some instances, the nature of the works or services to be delivered will suggest that relevant skills should be split into two – technical skills and management skills. Where this is done, the above definition for relevant skills will still apply but the descriptions of the two attributes in the RFP/RFT will reflect the purchaser’s desire to consider these two skill areas separately. Methodology Unlike the other non-price attributes, methodology focuses primarily on the output to be supplied and on how the supplier proposes to deliver that output. Other attributes focus more on the characteristics of the supplier and on the resources (including the human resources) that are to be employed to deliver the output. Resources Given the definition of resources as the equipment that the supplier proposes to use, this non-price attribute is not usually included when tenders for professional services alone are being sought. Financial viability Information may be sought on the financial viability of potential suppliers and tenders that fail to meet criteria set out in an RFP/RFT may be rejected. The financial viability of potential suppliers may be reviewed to assess their ability ( and the ability of any significant subcontractors) to remain viable through the contract period. The objective is to determine whether a supplier has the financial capability and capacity to establish and manage the contract, including any change requirements.


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Application The importance of relevance When evaluating tenders, it is important to consider how a potential supplier’s tender is relevant to the nature of the output to be purchased. For example, where an output can be delivered by personnel with a relatively modest level of skills and experience, awarding a higher grade for a non-price attribute because a supplier is offering personnel whose skills significantly exceed the minimum required may not be justified. Rejecting a tender through a ‘fail’ on a non-price attribute It is standard practice to establish through the RFP/RFT that any tender may be rejected at the s ole discretion of the purchaser. In addition, the above rule refers to the need to establish, through the RFP/RFT, that a ‘fail’ on a non-price attribute will be a sufficient reason to reject a tender. Rejecting a tender through failure to meet a minimum required standard It is also important to clearly establish in the RFP/RFT what features of a tender will make it unacceptable or ‘non-conforming’ and result in its rejection. Where a tender must meet certain minimum standards (e.g. where a supplier must be certified as meeting a particular quality standard) or an input must meet a particular standard specification, then this must be made clear to prevent potential suppliers from investing effort in preparing a tender when that supplier cannot meet the required minimum standard. Selecting non-price attributes Three attributes (relevant experience, relevant skills and methodology) must be used as a minimum. However, other attributes, including the optional attributes listed above may be added, but only when they will enhance the supplier selection process and help to obtain better value for money. Where the supplier selection method allows grading of the non-price attributes, Council must decide whether each attribute should be evaluated on the basis of pass or fail only or whether they should be graded. Adding relevant non-price attributes that are to be evaluated on a pass or fail basis only is s ensible where Council simply wishes to ensure that a potential supplier meets a given minimum standard. Adding attributes that are also to be graded must be considered more carefully. A large number of attributes (or sub-attributes) that are to be graded tends to lead to a reduced range of the weighted sums of the non-price attribute grades and a reduced degree of ‘separation’ of t enders. Setting non-price attribute weights Appropriate attention must be given to setting the weights for the non-price attributes. They impact on the outcome of the tender evaluation process by establishing the relative importance of the non-price attributes that are to be graded. Weights must be advised through the RFP/RFT. Grading scale for non-price attributes A scale of 0 to 100 is used when grading non-price attributes. Grades shall be awarded in steps of fiv e in accordance with the following grading scale. 90, 95 or 100

Demonstrates exceptional compliance or ability to convey exceptional provision of the requirement

75, 80 or 85

Requirements are fully covered in all material aspects

60, 65 or 70

Requirements are adequately covered

50 or 55

Adequate, with some deficiencies that are not likely to have any adverse effect

40 or 45

Barely adequate and would need considerable improvement in this attribute, if selected

35 or less

Total non-compliance or inability to convey provision of the requirement = Fail


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Price and price weight The price quality method of supplier selection uses a price weight. It balances (or trades off) price and quality by use of a formula. It enables the Council to pay more for a high-quality supplier. It is a sensible method to use when the quality of the supplier is important and a trading of price and quality is pr actically possible through the supplier selection process. Rules 1. The price to be used in the supplier selection process must be defined in the RFP/RFT. 2. When using the price quality supplier selection method, the price weight shall generally be set within the range of 25 to 70. 3. When using the price quality supplier selection method, the RFP/RFT must give the weight to be applied to price. 4. When the supplier selection method used requires that any attribute (non-price or price) be given a weight, the sum of all weights (non-price and price) must be 100. Defining price Typically, the price used in the supplier selection process is the unmodified price taken from each tender. However, in some situations the proposed price will be modified before it is used in the supplier selection process. For example, where the supplier is to be paid an initial sum and over a period of years further amounts (e.g. for the maintenance or operation of an asset), then it may be appropriate to discount the later payments to give a net present value to be used in the supplier selection process. Whenever tender prices are modified in any way by the supplier selection process, the description of that process must be made clear in the RFP/RFT. The influence of price weight on supplier quality premium The impact of using a different price weight can be substantial. Supplier quality premium values when using a price weight of 10 are 21 times as large as those calculated when using a price weight of 70 (all other things being equal). More detailed guidance is provided under section 5.4 of the NZTA Procurement Manual. The effect of price weight on a supplier’s decision to enter a competition A supplier’s decision to enter (or not enter) a competition is likely to be st rongly influenced by the price weight advised in the RFP/RFT. Suppliers who have a higher price structure but offer a higher quality of service will sometimes choose not to compete when the price weight is relatively high, recognising that their chances of winning against a supplier with a lower price structure are small. Conversely, when the price weight is high, suppliers who prefer to compete on price alone (rather than on quality) will be encouraged to enter the competition. Alternative to a low price weight If quality is a pr imary consideration and the proposed price weight is therefore less than 25, the quality based supplier selection method should be considered. There is a risk with a low price weight that the Council will pay more to engage a high-quality supplier than it would if the price were negotiated. The quality based supplier selection method also gives great flexibility through the negotiation process to tailor the contract, including the price methodology, between the purchaser and the supplier. The resulting contract is therefore more likely to enable the purchaser to obtain best value for money. Alternatives to a high price weight If the price is of paramount concern, and the proposed price weight is 60 or 70, the lowest price conforming supplier selection method should be considered. To ensure that the supplier engaged will deliver a quality output and meet the required quality standards, the RFP/RFT should set out the minimum quality s tandards for the supplier and for the output to be delivered. Testing the chosen price weight Options should be tested before confirming a price weight. This will help Council to avoid an unanticipated range of supplier quality premium values. This can often arise when using the price quality method in unfamiliar circumstances or choosing a price weight with which the Council has had no previous experience. Grades awarded for non-price attributes in previous evaluations (or mock grades for fictional suppliers) can be used to generate supplier quality premiums for the purpose of testing. Managers can then assess whether the premiums generated would be acceptable.


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APPENDIX 4 - GUIDANCE FOR SUSTAINABLE PROCUREMENT What is sustainable procurement?

Sustainable procurement involves taking environmental, social and cultural considerations into account alongside economic factors when deciding which product or service to procure. It also involves looking at the costs of a product or service over its whole life, considering running costs, lifespan and disposal costs as well as acquisition costs. It can also involve looking at the supply chain for a particular product. In simple terms sustainable procurement is smart business practice.

The role of Local Government in sustainable procurement

As major purchasers, Local Government has a significant impact on the environment through the products and services it buys. Almost every product (e.g. cleaning materials, vehicles, energy, paper, furniture) or service (e.g. street cleaning, three waters management) has some kind of environmental implication. By introducing environmentally conscious purchasing criteria Local Government can make a significant difference and contribution to sustainability.

The approach at Tauranga City Council

Council gave a directive in 2010 to consider sustainable procurement where deemed relevant. This means that if you think the purchase of a product or service could have any environmental or social impacts, you should consider and mitigate these impacts where possible through your decision making process. This will ensure you are selecting the best option and outcomes available. How far you go may relate to the level of risk you foresee. You may simply look for things like environmental certification or star ratings on products or do a more thorough assessment. Please contact our Sustainability Advisor for assistance where required.

Principles of sustainable procurement

When buying goods and services, organisations practising sustainable procurement will consider the following four key principles: 

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What are we trying to achieve?

strategies to avoid unnecessary consumption and manage demand; minimising environmental impacts of the goods and services over the whole of life of the goods and services; tenderers display socially responsible practices including compliance with legislative obligations to employees; and value for money over the whole-of-life of the goods and services, rather than just the initial cost.

In simple terms we are trying to achieve best value for money with minimal negative impacts. The overarching objective is for sustainability considerations to be addressed within the procurement cycle in all instances. This will include ordering stationery with environmentally friendly credentials through to the incorporation of sustainability issues in the most complex of procurement initiatives such as building new council facilities. It is acknowledged that the most sustainable option will sometimes provide cost savings, sometimes provide a similar cost and sometimes be more expensive, particularly in the short term. Assessments need to be carried out on an individual basis to identify the most fit for purpose option. Often the product with the cheapest capital cost will be the product with the most expensive ‘whole life cost’ when operation and maintenance costs are taken into consideration.

Buying sustainable products

The following environmental specifications intended as a guide of what to look for.

are

Wherever possible goods should be:


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

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made from recycled materials or materials from sustainable sources; reusable or recyclable; minimal, reusable or recyclable packaging; biodegradable; energy efficient; durable or repairable; non-toxic; high performing.

Whenever possible goods should not: contain any hazardous chemicals; contain Volatile Organic Compounds (VOCs), Chlorofluorocarbons (CFCs), or chlorinated compounds; result in harmful by-products, either in use or in disposal. See Section 1 for more information on these specifications. It can be difficult and time consuming to assess tenderer or product options. The length of time you spend may be determined by the level of risk of negative impacts that you consider is associated with the service or product.  

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Considering options

There are some simple things to look for that are outlined in this manual: 

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Does the product have environmental certification? Details on recognised environmental certification in New Zealand are included in this appendix. Does the tenderer have an Environmental Management System in place? Details on approved Environmental Management Systems are included in this appendix. How does one tenderer or product stack up against another (see the tenderer/product assessment checklist template) There are some common procurement activities council undertakes such as office furniture, cleaning products, vehicles, building, electricity etc. See Section 3 for a guide to impacts, sustainable alternatives and procurement considerations when purchasing in these and other areas.

If you need support with sustainable procurement opportunities and decision making please contact our Sustainability Advisor.


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Gathering information about the environmental impacts of goods, materials and services can be time consuming. To help the decision making process more and more products and services are getting environmental certification to provide a recognisable and trusted eco-label seal of approval. Some of the eco-labels to look for include: Environmental Choice New Zealand

The label was established in 1992, is owned by the New Zealand Government, and is administered by an independent trust. It covers office equipment, cleaning products, paints and construction materials. www.envirochoice.org.nz Energy Rating

This label provides an assessment of energy efficiency of appliances. It was developed by Australian Government Agencies but is widespread throughout New Zealand. It provides labelling on products and extensive information online to provide model comparisons http://www.energywise.govt.nz/ratingsand-labels/energy-rating-labels or http://www.energyrating.gov.au/ Energy Star

A global assessment of the energy efficiency of appliances, office equipment and electronics. Launched in New Zealand through EECA. It provides labelling on products and extensive online information www.energystar.govt.nz Water Efficiency Labelling Scheme (WELS)

The WELS label displays two key pieces information: a star rating indicating relative water efficiency a water consumption or water flow figure.

of

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Product labels display a star rating out of six. The more stars the more water efficient. This system was launched in April 2010. For more information visit http://www.mfe.govt.nz/issues/water/welsscheme/index.html Assessing tenderers -

Looking in detail at how tenderers manage their


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business for things like environmental management, compliance, energy and water use, transport and labour practices can again be time consuming. There is more information to assist you with this consideration if you choose to in Section 2. A quick simple way to assess a tenderer is to see if they have an approved Environmental Management System (EMS) in place. This does not ensure that the company will provide an environmentally sound product or service, but it does give some indication of their efforts to reduce their own impacts. In New Zealand the main EMS eco-labels are: ISO 14000: Environmental Management

This programme provides thorough organisational guidelines and requirements for environmental management. Assessments need to be completed in order to become accredited. For more information visit: http://www.iso.org/iso/home.html Enviro-Mark NZ

The programme is managed by Landcare Research and provides organisational guidelines and requirements for environmental management. http://www.enviro-mark.co.nz/ CarboNZero

A programme managed by Landcare Research that provides organisations, individuals or events with certified carbon neutral status. For more information visit: http://www.carbonzero.co.nz/index.asp


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SECTION 1 Sustainable criteria to consider when purchasing products

Before you make a purchase consider the following criteria and tips for good practice. Once you have gained the information you need on the product or range of products being considered, a tenderer assessment comparison checklist is available by clicking here to assist you determine the best option.

Recycled content and recyclability

Collecting and sorting paper, plastics, metal, glass and other materials is only one part of the recycling process. Recycling is not complete until the collected materials are turned into new products and those products containing recycled materials are purchased a process often referred to as "closing the loop". We "close the loop" by buying back recycled products. Products with recycled content often have environmental benefits over products made from virgin raw materials. Recycled products play a waste minimisation role as they divert wastes from the waste stream. The manufacture of recycled products involves the reuse of natural resources and so promotes resource conservation. Some recycled products such as aluminium cans, glass bottles and paper require far less energy to produce than virgin products. The manufacturing of recycled paper also uses less than one third of the water required to produce virgin paper. Tips: Remember that just because a product is labelled recyclable doesn't mean that it can be recycled in New Zealand at this time. Find out if the product can be recycled locally by contacting the manufacturer. Find out what it can be recycled into. Products made from recycled materials can have varying levels of recycled content. Choose products with a high percentage of recyc led content. If possible choose products with a post-consumer recycled content, that is products made from materials used and discarded as waste by consumers. 

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Packaging

Packaging can be a significant source of waste, so evaluate it to determine what components can be eliminated or reduced. From an environmental perspective, the best packaging is no packaging at all but, obviously, packaging is often required. However, you can reduce a product's overall environmental impact by choosing environmentally preferable packaging. Tips: Consider whether all the packaging is necessary. Look for packaging made from recycled material. Look for packaging which is itself recyclable. see if the manufacturer will take the packaging back for recycling. Look for packaging made from the least number of different materials to aid recycling Purchase in bulk to avoid individual packaging.    

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Biodegradability

Products are considered biodegradable if they break down into non-toxic components within a specified time. Most products will biodegrade eventually, but the deciding factors are how fast, and how easily byproducts can be assimilated by the environment. Persistent substances (those that biodegrade slowly) accumulate in organisms low on the food chain and are subsequently eaten by organisms higher up. Tips: look for products that are biodegradable, especially if you are disposing of them down the drain. select products that biodegrade relatively quickly, especially if you must purchase higher toxicity products. if a product is not biodegradable, look for a substitute. 

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Energy and natural resources use

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Most products require significant amounts of energy throughout their life cycle: in the production and harvest of raw materials and during manufacture, transportation, product use and disposal. Maximising energy efficiency decreases pollution, including the generation of greenhouse gases, acid rain and smog. It also saves money and decreases mining and transportation impacts. Reducing the use of virgin natural resources (such as soil, coal, natural gas and metals) benefits the environment in three ways: by minimising the effect of their extraction on the environment, by reducing energy use and by reducing the emissions of greenhouse gas and other pollutants. It can also benefit human health by reducing exposure to toxic materials (e.g. coal dust). Generally, it takes less energy to reuse or recycle used materials than to produce new ones. Tips: 

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Toxicity

Buy products in bulk, reducing the amount of energy required for transportation and packaging. Use renewable resources in a limited way, so ecosystems aren't disrupted and resources aren't over-taxed. Look for energy efficient equipment, e.g. with “sleep" mode.

Toxic substances are defined as chemicals or mixtures whose manufacturing, processing, distribution, use or disposal may present an "unreasonable risk" to human health or the environment. In assessing the toxicity of a product, several factors must be considered: the quantity of substance you are exposed to, the strength of the substance and the route of exposure (ingestion, inhalation or skin absorption). Frequency of exposure can also be important. Some substances have cumulative effects while others must reach a certain threshold before causing an effect. An additional complication is the variation of effects among species. What may be safe for humans can harm or kill more delicate species, ultimately disrupting the balance of the ecosystem. Tips: Use toxic products as infrequently as possible. Choose the least toxic products available for each job. Replace toxic products with non-toxic substitutes whenever they are available. Choose multi-purpose chemicals to reduce the number of different chemicals you track, and to reduce worker exposure. Request material safety data sheets for each chemical you use. Look for warning labels on packaging such as TOXIC, CORROSIVE, POISON, EXPLOSIVE, CARCINOGEN, and avoid whenever possible.  

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Durability/repairability

Durable and repairable products tend to be better for the environment than disposable ones, because they reduce manufacturing impacts (e.g. energy use, pollution) and save money in avoided replacement costs. These products also result in less waste disposal and reduced shipping impacts. Tips: Purchase durable products over short lived ones. Purchase repairable products and repair them as necessary.  

Performance and cost

Testing a product before making a purchase can save time and wastage in the long run. Not all sustainable alternatives will provide a suitable level of performance to meet our needs despite manufacturers' claims. But don't they cost more? While some sustainable products will be cheaper and produce an instant saving it is a fact that many others will cost more initially. Environmental purchasing can, however, save money in the long term. Cost should be considered in terms of a product's lifecycle i.e. the cost of manufacturing/acquiring, maintaining, operating and disposing of a product.


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Using this life-cycle cost measure enables you to compare different products by determining their real prices and not just their purchase prices. In some cases, the savings might be significant, and in others they won't. However, there may be reasons to make the purchase anyway, for example, to raise environmental consciousness in the organisation. Sometimes, environmentally preferable products do cost more than their alternatives, even on a life-cycle basis. This discrepancy usually occurs for one of three reasons: these are emerging technologies, products are inefficiently distributed, or environmental costs are not captured in the costs of competing products. However, the more we purchase environmental products in place of conventional ones, the cheaper they should become. Overall, if the change to green purchasing is combined with a commitment to reduce the amount you use, then expenditure needn't increase. Use less! Tips: Obtain and evaluate small quantities of product. Choose products that are easy to maintain. Choose products that are easy to upgrade. Choose products that are reusable or include reusable parts (e.g. rechargeable batteries.    


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SECTION 2 Assessing tenderers – a more detailed look at systems

This section provides a guide to some of the criteria you may want to set/consider for t enderers around their environmental management practice, compliance and resource management. The links through this section take you to a support resource housed on the Auckland Plus website. This support resource has been created for the Rugby World Cup; however, it has been made available as a best practice resource for guiding sustainable procurement activities across the country. The resource includes examples of environmental policies, environmental management plans, energy, waste, travel, carbon management and health & safety. To go straight to this resource guide click here

Environmental management

Has a documented and organisationally recognised environmental policy. An environmental policy is a document, often a single page, stating the organisation’s intentions, aspirations and values around environmental impact management. Click here to see an example Has a documented environmental management plan to monitor and improve environmental performance.

Compliance

Has a good track record for quality and environmental performance (has not been cited for non-conformance). This covers breaches to environmental legislation, whether covered under the Resource Management Act (RMA) or Local and Regional Council By-laws. Is accountable for environmental performance in its published annual report (if applicable), or produces a Sustainability Report to the Global Reporting Initiative (GRI) standards. Click here to see an example.

Energy

Has a documented and organisationally recognised energy management policy or plan. An energy management policy is a document, often a single page, stating the organisation’s intentions, aspirations and values concerning energy management and efficiency. An energy management plan is a document outlining the identified impact areas of an organisation, relating specifically to energy usage, with clear planning on how to minimise this usage. This document can be a subset of a carbon management plan, but must be focussed purely on energy usage. Click here to see an example.

Water

Engages in efficient water usage (e.g. low-flow taps, flow restrictors, closed-loop water systems).

Waste

Has a documented and organisationally recognised waste minimisation plan. A waste minimisation plan is a document outlining an organisation’s identified waste streams and types of waste, with cl ear planning on how to minimise and divert these waste streams away from landfill. Click here to see an example. Offers high levels of post-consumer (material that has been used before) recycled content. Finding valuable uses for recycled materials is important for ensuring the viability of recycling programmes. Non-paper based products (generally those that are petrochemical derived) with high levels of post-consumer content (those that have been produced and used before by the consumer), have advantages in both non-renewable material use reduction and providing a home for post-consumer recycled waste. Is able to be recycled or remanufactured once used. The global demand for resources continues to increase beyond sustainable levels, therefore maximising the capture and re-use of materials is an effective means of reducing consumption. This is particularly important for products which rely on non-renewable resources. Manufacturers taking responsibility for manufacturing goods that are suitable for remanufacture or recyclability greatly increases the volume of goods recovered.


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Is part of a take-back scheme (Product Stewardship). Even if a manufactured product is able to be recycled or remanufactured, accessing these goods at the end of their useful life is difficult, and responsibility for this is passed onto the user. A high level of manufacturer responsibility, by way of take-back or Product Stewardship schemes, greatly increases the volume of manufactured goods that are able to be recovered from the market place, allowing them to be recycled or remanufactured. Paper

Office paper is either FSC and/or PEFC certified (not recycled). The reduction of forested areas or ‘deforestation’ is a significant contributor to soil erosion, habitat destruction and climate change. Wood-based products, such as paper, should be sourced from sustainably managed forestry (where trees are replaced after being felled). FSC and PEFC are the two most common internationally-recognised certification schemes for sustainably managed forestry, and should be requested when sourcing paper based products for the organisation’s in-house usage. Unfortunately, as paper is not recycled back into paper within New Zealand, but rather sent to Australia for recycling, the overall impact associated with recycled paper is higher than that of virgin pulp sourced from sustainably managed forests.

Travel and distribution

Uses efficient road vehicles.

Labour practices

Has a documented health and safety policy and health and safety plan. A health and safety policy is a document, often a single page, stating the organisation’s commitment to healthy and safe work practices. A health and safety plan is a document outlining the identified health and safety risk areas of an organisation, with clear planning and procedures on how to minimise or mitigate these risks. Click here to see an example.


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SECTION 3 A guide to impacts, sustainable alternatives and procurement considerations in purchasing Purchase

Impacts to consider

Building construction, renovation, use

Worldwide, construction and use consume 40 percent of raw stone, gravel, and sand; 25 percent of virgin wood; and a large share of water. The construction and demolition (C&D) industry is one of the largest waste producing industries in New Zealand. C&D waste may represent up to 50% of all waste generated in New Zealand, 20% of all waste going to landfill and 80% of all waste going to clean fill. Buildings require energy to heat, light, power, and cool, and can account for the highest share of an institution’s climate-altering greenhouse gas (GHG) emissions. Materials and furnishings can contain toxins that endanger human and ecosystem health.

Electricity (coal, oil, natural gas)

Paper

Emissions from fossil fuel combustion during power generation and transmission contribute to climate change and acid precipitation. Coal has the highest GHG emissions, followed by oil and natural gas.

Producing 1 ton of virgin office paper requires 6.5 tons of wood and produces 2.8 tons of GHG and over a ton of solid waste. Wood use causes deforestation and biodiversity loss. Chlorine from bleaching can contaminate water and accumulate in living tissue.

Sustainable alternatives (good practice) 

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Lighting

GHG emissions from electricity consumption contribute to climate change. Mercury emissions result during product use and disposal.

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Energy-efficient cements, windows, heating and cooling units. Natural lighting and power from renewable sources like passive solar. Use of certified wood and materials with low toxicity and cleaning needs and with recycled content. Non-polyvinyl chloride (PVC) piping, cables, and windows. Recycled aggregates and C&D Wastes can also save money in both materials costs and operational costs such as sending materials to landfill.

Renewables like solar and wind power that displace generation from fossil fuels. Tauranga is well positioned for solar and this market has expanded in recent years.

Paper with high post-consumer recycled content. (Recycled content uses fewer chemicals than virgin pulping and releases up to 36 percent fewer GHG's. Paper from sustainably managed forests, sawdust, or scrap. Non-bleached or chlorine-free bleached paper.

Energy efficient compact fluorescent lamps. Lamps with low mercury content and with electronic, not magnetic, ballasts.

Procurement considerations

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It is important to include desired sustainable outcomes in any new builds right at the start of the design stage as incorporating elements at this stage is more cost effective than trying to add in or retrofit at a later stage. Consider the on going operating costs of buildings in the design phase. Seek advice from our Eco Design Advisor or Sustainability Advisor for new builds or retrofits. Green Star is a comprehensive, national, voluntary environmental rating scheme that evaluates the environmental attributes and performance of New Zealand’s buildings using a suite of rating tool kits developed to be applicable to each building type and function. For more information visit the New Zealand green Building Council website http://www.nzgbc.org.nz/main/ REBRI stands for Resource Efficiency in the Building and Related Industries. Resource efficiency is all about using materials, energy, time and money more effectively. For support resources click here: http://www.branz.co.nz/REBRI The Ministry for the Environment has some useful information on construction and demolition waste http://www.mfe.govt.nz/issues/waste/constructiondemo/faq.html

Council’s electricity contract is managed by City Services. If you are considering an alternative supply option such as solar, contact our Eco Design Advisor or Sustainability Advisor for advice. The Ministry of Economic development website houses some useful information on the energy and resources sector http://www.med.govt.nz/templates/StandardSummary____33.as Work on a Regional energy strategy is underway and is being coordinated by the Bay of Plenty Regional Council (2010).

Ensure that source timber for paper is legally-sourced and reasonable steps are taken to ensure timber originates from sustainable sources (in accordance with the New Zealand Timber, Wood Products and Paper Procurement Policy); Ensure that only paper that achieves a minimum of a three star rating is purchased; Maintain auditable records to demonstrate that the paper sourced meets the requirements above; Ensure products bleached with EC technology are not purchased. Tenderers are to register with Ministry for the Environment (MfE) and maintain their own data, tenderers claiming environmental certification (e.g. Environment Choice (New Zealand), will need to submit their documentation to be granted a star rating. A list of products that have achieved New Zealand Environmental Choice certification can be found at www.envirochoice.org.nz/licensed_products.html.

Maximise use of natural lighting; Ensure energy star ratings are observed when choosing light fittings and tubes, ensure a recycling plan is in place (various firms exist that provide recycling e.g. www.interwaste.co.nz as listed on MfE’s website). Ensure progressive upgrading of existing lighting by specifying replacements to be ‘new-generation’ lamps, reflectors and lenses;


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Motion sensors and timers.

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Carpets/flooring

Processing, manufacturing, and transport are energy intensive. Raw materials and surface treatments contain PVC and other toxins that affect indoor air quality and contaminate after disposal. Cleaning can release toxins.

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Vehicles

Every litre of petrol burned emits 2.5 kilograms of GHGs. NOx and VOCs contributing to ground level ozone and smog formation. Emissions are rising due to increased vehicle use globally.

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Individual carpet tiles that are durable and replaceable. Natural carpet fibres. Woods from sustainable forests. Products with minimum cleaning requirements, PVC content and emissions. Non-toxic surface treatments.

Vehicles with high fuel economy and low emissions. Alternatives like electric, hybrid electric, clean natural gas. Using the most appropriate vehicle, public transport, car sharing, or bicycles. Alternative transport and Travel Plans.

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Specify lamps and luminaries that are fit-for-purpose, use eco-labelling where applicable; Regular maintenance and replacement programme; Replace incandescent light bulbs with fit-for-purpose compact fluorescent lamps (CFLs) delivering a 75% longer lamp life; Replace 38mm (T12) fluorescent tubes with higher efficiency and equivalent 26mm (T5) triphosphor tubes of lower wattage – delivering longer lamp l ife; Replace high wattage filament lamps or tungsten halogen lamps with metal halide or high wattage compact fluorescent lighting – delivering 65%+ longer lamp life; Replace mains voltage reflector lamps, filament spot and flood types with low- voltage tungsten halogen – delivering 30%+ lighting performance; Replace old 2ft 40W fluorescent fittings and old 8ft 125W fluorescent lamps (T12) with modern efficient fittings using reflectors/louvers or efficient prismatic controllers delivering 30%+ improved lighting quality; and Replace opal diffusers in fluorescent fittings with new prismatic controllers – reduce energy and increase lighting by 30%+.

A leading sustainable flooring company is Interface. Interface carpet tiles have a range of fit-for-purpose backing options, a 15 year performance warranty, substantial facility management benefits and carbon neutral certificates.

Support sustainable transport options i.e. avoid single occupancy travel; Include safety standards in all tender documentation (this includes the purchase, hire and lease of vehicles); Purchase, lease or hire vehicles with a minimum safety standard of ANCAP4 (applies to passenger and 4WD vehicles delivered from July 2008); Give consideration to vehicles with higher safety rating than ANCAP4 and to vehicles fitted with electronic stability control systems; Request tender responses to include the emissions standard for all vehicles proposed in their response (this includes the purchase, hire and lease of vehicles); the minimum standard for the purchase, hire and lease of vehicles is Euro 4 (or equivalent). A full list is available here; Request tender responses to include fuel economy information in their responses and to include fuel economy in criteria for all new tender exercises. EECA is developing a mandatory point-of-sale labelling scheme for all light cars. This could be used in future specifications for vehicles; For fleet leased or hired vehicles tenderers must, with immediate effect, provide evidence that vehicles supplied are regularly maintained in accordance with the manufacturers’ recommendation; Tenderers of contracted vehicle maintenance services must, with immediate effect, specify that they are working to tyre and oil disposal standards (tenderers to confirm they meet the requirements of the “Tyre Track” scheme (or similar) for tyre disposals and confirm they meet the requirements in MFE’s “Guidelines for the Management and Handling of used Oil”) ; Request tender responses for the purchase of new vehicles to provide information on vehicle parts’ recycling and disposal options they may provide; Public sector agencies are expected to remove older vehicles (pre-Euro4 or equivalent) fr om departmental fleets (owned or leased) by 2010; Request tender responses to include renewable fuel


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options (includes bio-fuels and electricity); Ensure regular maintenance in accordance with manufacturers’ recommendations and an auditable maintenance record exists for all vehicles in the fleet; and Ensure that when vehicle eco-labelling is ratified it is included in tender specifications, evaluation criteria and contract documents. 

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Office Furniture

IT equipment (PCs, printers, phones, fax machines, copiers)

Uses wood, metals, and other resources. Plastics contain PVC or phthalates; paints and lacquers contain carcinogenic dyes. Heavy metals, VOCs, and other toxins released during manufacturing and from surface treatments.

Making a typical desktop computer creates 63 kilograms of waste and 22 kilograms of hazardous materials. Computers and monitors use up to 7 percent of commercial electricity and release between 32 and 1,317 kilograms of CO2 equivalent per year, depending on model. Also release persistent, toxic, and bioaccumulative heavy metals after disposal.

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Cleaning Products

Can contain toxic chemicals linked with cancer, reproductive and respiratory ailments, and other health issues, causing high janitorial turnover. Toxins also affect water quality and plant and animal health.

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High quality, durable, and repairable furniture. Wood from sustainably harvested forests. Surfaces that are untreated or treated with linseed, soap, wax, or water-based alternatives.

Energy-efficient computers with power down modes, which can cut electricity costs of office equipment by half. Machines with replaceable modular components or with guaranteed manufacturer takeback policies. Copiers and printers with twosided printing. Service and rental agreements.

Products that are biodegradable, low in VOCs, and free of carcinogens and phosphates.

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First off, is additional furniture really needed and if yes, can it be sourced in the building from another department that no longer has a need? Please use Insider (staff Intranet) to explore this first. If purchasing ensure that wood products purchased are made from timber that is legally-sourced and take all reasonable steps to ensure that this timber originates from sustainably-managed sources, in accordance with the New Zealand Timber, Wood Products and Paper Procurement Policy. Ensure that the final disposal of construction and demolition timber is in line with the waste minimisation principles set out in the REBRI6 guidelines.

Assess if the item is needed. Ensure energy efficiency ratings are considered with all IT equipment.

Purchase products that are preferably 100% biodegradable. Purchase concentrated versions and dilute properly before use, as up to 90% of general purpose cleaner is water which requires extra packaging, energy and resource to transport. Do not buy products that contain phosphates, HCFCs, CFCs, PDCB, VOCs and limit use of optical brighteners and synthetic perfumes. Avoid products that contain chlorine bleaches, buy products based on fruit and organic acids Buy vegetable-based cleaning products rather than petroleum which take longer to break down and degrade. Avoid aerosols as some are classified as hazardous waste once used, use pump or trigger action sprays wherever possible. Specify against products that contain or have used ozone depleting substances in their manufacture.


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APPENDIX 5 – RESPONSIBILITIES FOR ACCURATE RECORD KEEPING SECTION 1 - GUIDELINES FOR TCC STAFF RELATING TO CONTRACTOR AND CONSULTANT RECORDKEEPING REQUIREMENTS 1.

TCC’S LEGAL OBLIGATIONS RELATING TO INFORMATION HELD BY TCC CONTRACTORS AND CONSULTANTS

1.1

TCC has a legal duty to create and maintain full and accurate records of its affairs in accordance with normal, prudent business practice, including the records of any matter that TCC contracts out to an independent contractor (section 17 Public Records Act 2005). In addition, Council must maintain, in an accessible form to enable subsequent reference, all protected records it controls until disposal is authorised in accordance with the Act. Some records that Council contractors/consultants create and maintain while performing a contract for Council may be classed as protected records. This means that TCC must ensure its contractors and consultants keep and maintain full and accurate records, keep them in safe custody and properly preserved (both during and after the period of the contract) and transfer them to TCC either during or upon completion of the contract or dispose of them lawfully.

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Any information (with a number of exceptions) that is held by TCC is “official information” for the purposes of the Local Government Official Information and Meetings Act 1987 (“ LGOIMA”). Subsection 2(6) of LGOIMA states: “Where any local authority enters into any contract (other than a contract of employment) with any person in relation to any matter, any information that is held by that person and to which the local authority is, under or by virtue of that contract, entitled to have access, shall be deemed to be held by that local authority.”

This means that if TCC were to receive a LGOIMA request for information that is held by one of our contractors/consultants and the contract entitles us to access that information, we w ould be required to obtain that information and provide it to the requester (if none of the LGOIMA reasons for withholding the information applied). 1.3

In accordance with subsection 3(4) of the Privacy Act 1993, if a TCC contractor or consultant holds personal information: (a) solely as agent for TCC; or (b) for the sole purpose of safe custody on TCC’s behalf; or (c) for the sole purpose of processing the information on behalf of TCC; and the contractor/consultant is not entitled to use or disclose the information for its own purposes, the information is deemed to be held by TCC for the purposes of the Privacy Ac t. This means that TCC would need to comply with all of its Privacy Act obligations in respect of that personal information held by the contractor/consultant.

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If it is necessary for TCC to give a contractor or consultant personal information in connection with the provision of a service to TCC, Information Privacy Principle 5 (Storage and security of personal information) in section 6 of the Act, requires TCC to do everything reasonably within its power to prevent unauthorised use or unauthorised disclosure of that information. This means that TCC should ensure its contractor or consultant complies with the relevant provisions of the Privacy Act in respect of the information provided.

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Primary responsibility for ensuring a contractor or consultant complies with their recordkeeping obligations rests with the TCC project manager for the contract. Business Information can provide advice and support.

2.

INCORPORATING RECORDKEEPING REQUIREMENTS INTO TCC CONTRACTS

Contracts or agreements with contractors and consultants should contain provisions to ensure records are created and maintained in accordance with TCC’s legal obligations. Incorporating recordkeeping requirements in the contract documentation will communicate TCC’s recordkeeping requirements to the contractor/consultant before the contract commences and will give TCC legal recourse against the contractor/consultant if they fail to comply. Note: Simply providing the contractor/consultant with a copy of TCC’s Recordkeeping Guidelines for Contractors and Consultants will not make these guidelines legally binding on the contractor/consultant. To do so, they must be incorporated into the contract terms and conditions. For assistance with contract drafting, contact TCC’s in-house Legal Services team. EXAMPLES OF RECORDKEEPING CONTRACT CLAUSES Overview: In listing the following examples of records clauses for contracts, it is not suggested that these must be included in every outsourcing contract. They should be seen only as indicators of the types of statements that might assist the Council to adequately communicate its requirements to a contractor/consultant.

2.1

RECORDS

2.1.1 Relevant Records: The [Contractor/Consultant] must create and maintain records that fully and accurately document the operation and delivery of the contract [works/services], including but not limited to: 

(Specific recordkeeping requirements should be listed here).

This includes records generated and kept using electronic technologies, such as email. 2.1.2 Records Format: The [Contractor/Consultant] must ensure that records of the contract [works/ services], if created and maintained in electronic format, are kept in a standard format that will be easily migratable to the Council’s systems. In this case, the acceptable formats are: 

(specific electronic or other formats listed here)

2.1.3 Access to Records: The Council retains the right to access any records of the [Contractor/Consultant] relevant to the delivery of the


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contract [works/services], for the purposes of monitoring compliance with this contract. The [Contractor/Consultant] must ensure that: 

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data cannot be used for applications not specified in the contract (for example, to data match with databases owned by other clients of the [Contractor/Consultant]); personal information is only to be used for the purpose for which it was collected, in accordance with the Privacy Act 1993 as amended from time to time; and files and other official records are not to be shown to a t hird party without the written agreement of the Council.

The [Contractor/Consultant] must ensure that records are documented in manual or electronic control systems with basic identifying information, including (but not limited to) a unique identifier and location details. 2.1.4 Records Storage and Handling: Records of the contract [works/services] are to be kept in a stable environment, within the range of 15oC to 27oC temperature and 30% to 60% relative humidity. Storage areas for magnetic media must be protected from magnetic fields. Records of the contract [works/services] that are in electronic format must be backed up regularly, and copies of back up tapes kept offsite. 2.1.5 Reporting: A report containing copies of records of the contract [works/services] is to be forwarded to the Council’s contact person every three months, starting three months after the commencement of the contract. 2.1.6 Authorised Disposal of Records: The [Contractor/Consultant] is required to retain records of the contract [works/services] in its office until they have either been transferred to Council or Council authorises their disposal in writing. The [Contractor/Consultant] is not permitted to destroy any records of the contract [works/services] corruptly or fraudulently, for the purpose of concealing evidence of wrongdoing, or for any other improper purpose. The [Contractor/Consultant] is not permitted to transfer records of the contract [works/services] to a third party for any purpose unless authorised to do so by the Council. 2.1.7 Return of Records on Completion of Contract: The following records of the contract [works/services] are to be returned to the Council at the completion of the contract: 

records of contract [works/services]; and

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any control records used to manage the above.

All records of the contract [works/services] created in the performance of this contract must be returned to the Council in [an accessible] format. Nominated formats for electronic records are to be:

2.2

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(format / application X), or

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(format / application Y). CONTRACT DRAFTING CHECKLIST

When drafting the contract, ask yourself if it should include the following: 1 2 3 4 5 6 7 8 9 10 11

A listing of the recordkeeping requirements for the contract works/services being contracted out? A listing of the records that are to be returned to Council at the completion of the contract? A specification of the format/s in which the records are to be returned to the Council at the completion of the contract? A statement regarding the Council's rights of access to records of the contract works/services for the duration of the contract? A requirement that basic control information is kept about the records of the contract works/services to facilitate access and retrieval? A requirement for the Contractor/Consultant to abide by the Council's privacy requirements in respect of the information it keeps for the purpose of the contract? A requirement for the Contractor/Consultant to cooperate fully with the Council in the event of an official information request relating to records of the contract works/services? An undertaking that specified records and the control information required to access them will be returned to the Council at the completion of the contract? Dispute resolution procedures and penalties for breach of the contract, such as a failure to return records to the Council during or at the completion of the contract? Requirements for the Contractor/Consultant to store and handle records of the contract works/services in accordance with requirements drawn from the Standard for the Records and Archives Storage Details of a mechanism by which Council can measure the Contractor's/Consultant’s compliance with the recordkeeping requirements of the contract?

Yes/No Yes/No Yes/No Yes/No Yes/No Yes/No Yes/No Yes/No Yes/No Yes/No Yes/No


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SECTION 2 - RECORDKEEPING GUIDELINES FOR TCC’S CONTRACTORS AND CONSULTANTS 1.

YOUR RECORDKEEPING RESPONSIBILITIES

Every Council contractor and consultant has responsibility for records management. Due to its legal obligations under section 17 of the Public Records Act 2005, Council requires each of its contractors and consultants to create and maintain full and accurate records of the contract works/services and provide them to Council either progressively throughout the contract’s performance or upon completion. In summary, your recordkeeping responsibilities are to: make records to support what you do as part of your Council contract or agreement; put your contract related records in your recordkeeping system; make sure you keep all significant records relating to your work for the Council; at the completion of the contract send the records to the Council Records Office.    

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You must not: destroy, delete or alter Council Records without proper authority; remove any Council Records from the Council without permission, or lose any Council Records that may be temporarily in your care.

2. WHAT IS A COUNCIL RECORD? Council’s obligations under the Public Records Act 2005 extend to records that are created or received by: the Council; and any contractor or consultant in the course of work performed for the Council.  

The Act’s definition of a “record” is very broad and basically means information in any form or format, including: Anything on which there is writing; Maps, plans, diagrams and graphs; Drawings, pictorial or graphic works , and photographs; Anything on which there are figures, marks, perforations, or symbols, having a meaning for persons qualified to interpret them; Anything from which images, sounds or writings can be reproduced with or without the aid of anything else ; and Anything on which information has been stored or recorded, either mechanically, magnetically, or electronically.      

3. WHEN SHOULD YOU MAKE A RECORD? Records do not just happen. You must make a conscious decision to create them. You must make a record where you need to show: What happened; What was decided or recommended; What advice or instruction was given; 

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When it happened; Who was involved; The order of events and/or decisions.

If you are not sure whether to make a record ask yourself: Does this relate to my work on behalf of the Council? Did I write or send this i n the course of my work for the Council? Am I required to act on this? Is this something I have used to do my work or to reach a decision?    

If the answer is ‘yes’ to any of these questions, make a record and keep it as part of your contract r ecords. You don’t need to keep very short-term or unimportant material (such as meeting invites, room bookings) or personal material (such as conversational email that have no relevance to business) into the recordkeeping systems. 4.

REMEMBER TO MAKE A RECORD OF:    

5.

Significant meetings where business decisions are made; Work-related significant discussions (phone calls, face-to-face conversations) Where business decisions are made or directions are given; and Significant internal or external correspondences (including emails) you send or receive that relate to your work, or is referred to you for action. EXAMPLES OF DOCUMENTS THAT WOULD BE REQUIRED RECORDS

INCLUDE:

FINANCIAL Financial planning / funding Payment claims Payment documentation and approvals Progress Reports and Cash flow information    

OPERATIONAL Operational Commissioning info Performance Review documentation Operation and maintenance manuals Maintenance plans    

CONTRACT DOCUMENTATION All contract documentation Tender award and rejection notices Public Liability Insurance documentation Contract Works Insurance Received All performance Bond documentation and evaluation notes leading to release of bond  

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TCC Procurement Guidance

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