2014-07-22 Planning & Organisation Committee Agenda

PLANNING AND ORGANISATION COMMITTEE MEETING AGENDA                                22 JULY 2014


Procurement and Fleet
10       TENDER CONSIDERATION           PLAN     FOR     SUPPLY     OF    QUARRY       AND
         BITUMINOUS MATERIALS


Author           Procurement Officer, Sarah Hansen
                 Corporate Services Department

Index            ECM/Subject/ 1415TCP002 Supply of Quarry, Asphalt and Bituminous
                 Materials

Attachments      Nil


EXECUTIVE SUMMARY
Not Applicable

RECOMMENDATION
That Council note the report by the Procurement Officer to the Infrastructure & Services
Committee Meeting dated 22 July 2014 and resolve to develop a tender consideration plan
for the supply of quarry, asphalt and bituminous materials.


REPORT
The Local Government Act 2009 (‘the Act’) the Local Government Regulation 2012 (‘the
regulation’) provide the considerations for, and methods by which Council may establish
medium and large sized contracts. These regulations require local governments to use a
written quote process for medium sized contracts and a written tender process for large
sized contracts. The regulations also provide a number of exceptions to those processes.
Preparation of a quote or tender consideration plan (TCP) is one of those exceptions.

Council has significant requirements for quarry, asphalt and bituminous materials that are
primarily used for road construction and maintenance. The aggregate value of these
requirements puts them into the ‘large contract’ category and would generally require a
written public tender. However due to the high cost of transporting these products there are
only a small number of suppliers, located within the region and who are well known to
Council, that are able to supply these products at a competitive price.

The public tender process can take in excess of 12 weeks. The benefit of the tender
consideration plan is that it will allow procurement arrangements for these products to be
prioritised and expedited by negotiating directly with those suppliers identified as being
reasonably able to supply the required products.
The regulations provide that a quote or tender consideration plan will contain the following
information:
1.   the objectives of the plan;
2.   how the objectives are to be achieved;
3.   how the achievement of the objectives will be measured;
4.   any alternative ways of achieving the objectives, and why the alternative ways were
     not adopted;



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