2021-04-06 Services and Organisation Committee Meeting Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA    6 APRIL 2021




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SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                                            6 APRIL 2021

        ORGANISATIONAL POLICY - PROCUREMENT FINANCIAL CAPACITY ASSESSMENT PROCESS

           insolvency. The tender documentation should also specify the documents to be provided by
           tenderers to enable Council to undertake the financial capacity assessment.
        6. Finsncial ststements can be analysed to provide insight into s tenderer's financial stability. A
           range of financial ratios can be used to assess a tenderer's profitability, liquidity and financial
           stability. Other qualitative information can also be sourced and analysed to determine going
           concern risk (including director and company credit checks).
        7. Contractors have legal requirements to trade whilst solvent. This policy and its contents will not
           transfer any responsibility or damages to Council should an insolvency event arise for a supplier
           whilst contractually engaged with Council.
        Tender Financial Capacity Assessment
        To ensure efficiency is maximised snd costs minimised a risk based approach will be applied to
        determine when tenderer financial sssessments are required. This spproach will include the
        application of project categories and financial thresholds to determine if an assessment process will
        be triggered in s tendered amount. The Tenderer Financial Capacity Assessment Process Policy
        Guideline will include the relevant project categories and financial thresholds for reference.
        lf the category financial threshold is triggered by © tendered value a shortlisted tenderer will be
        required to provide the appropriate information to allow & financial capacity assessment to occur.
        In Some specific instances the application of the category financial threshold may not be considered
        appropriate or achieve the desired outcome. In these instances the Director Corporate Services will
        be consulted and will approve any specific exceptions.
        Information Requirements
        Procurement tender documentation, in accordance with Council's procurement process conditions,
        will clearly specify that if shortlisted, 8 tenderer agrees to provide documentation that is required to
        undertake a financial capacity assessment.
        Where tenderers are identified ss having a short financial history [i.e. less than 2 financial years).
        limited financial! information will be available which could reduce the ability to undertake = robust
        financial capacity assessment. In these situations the Tenderer Financial Capacity Assessment
        Process Policy Guideline will outline the alternative information to be requested to undertake the
        assessment and manage risk.
        Should the requested information not be provided by s tenderer or be incomplete, the tender
        submission may be deemed non-conforming and the tender may not be considered further.
        Assessment Method

        Specific criteria and indicators (as identified in the Tenderer Financial Capacity Assessment Process
        Policy Guideline) will be assessed with support from Corporste Services as part of the financial
        capacity sssessment.
        lf required, additions! assessment information may be required which may involve discussions with
        the preferred tenderer directors, financial advisers, bankers or 8 parent company (if applicable}. This
        may provide additions! informstion to sallow consideration regarding the management of financial
        capacity nsk and the final scoring outcomes.
        An overall score per tenderer will be calculated by Corporate Services utilising the methodology
        contained in Tenderer Financial Capacity Assessment Policy Guideline. An overall score per

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