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2026/27 FINANCIAL POLICIES · Attachment 5 - Procurement Policy

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Attachment 5 Procurement Policy



                                                                      Council Policy
                                                PROCUREMENT POLICY



    Corporate Plan Reference:       Theme No. 5. - Excellence
                                      Objective 5.2 - Continue to deliver a financially sustainable Council
                                      that has the resources now and into the future to achieve its
                                      strategic objectives. This will be supported through the introduction
                                      of enhanced sustainability reporting and performance indicators,
                                      as well as ESG (environment social and governance) accounting
                                      practices as guided by statutory requirements
    Endorsed by Council:              23 June 2026

    Policy Author:                    Director Corporate Services



 POLICY BACKGROUND

 This document sets out Council’s policy for the procurement of goods and services (including
 works) and the disposal of assets.

 Council’s procurement of all goods and services must be carried out in accordance with the
 Local Government Act 2009 (the Act) and the Local Government Regulation 2012 (the Regulation).

 The purpose of this policy is:
•      To facilitate the procurement of goods and services and disposal of assets, in the most cost-
       effective, timely and practical manner
•      To ensure that Council complies with the applicable legislative frameworks in carrying out its
       procurement activities
•      To ensure that all Council staff have a clear understanding of their responsibilities
•      To maintain adequate internal controls over all aspects of purchasing, supply and disposal.
•      To ensure procured goods and services contribute positively to Council’s delivery of quality
       infrastructure, operations, and services.

 Council’s procurement activities aim to achieve advantageous procurement outcomes by:
•      promoting value for money with probity and transparency
•      advancing Council’s economic, social, and environmental policies
•      providing reasonable opportunity for competitive local businesses
•      promoting compliance with relevant legislation.

 This policy incorporates the principles for the procurement of goods and services to be undertaken
 with regard to the sound contracting principles as stated in Section 104 of the Act and in
 accordance with Chapter 6 of the Regulation.

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Attachment 5 Procurement Policy

 COUNCIL POLICY

1.    SOUND CONTRACTING PRINCIPLES

 Council officers must have regard to the following sound contracting principles in all procurement
 and disposal activities noting however, that equal consideration is not required to be given to each
 of the sound contracting principles.

a)      Value for money

 Council must harness its purchasing power to achieve the best value for money. The concept of
 value for money is not restricted to price alone. The value for money assessment includes
 consideration of:
•     contribution to the advancement of Council’s priorities
•     fit for purpose, quality services and support,
•     whole-of-life costs including costs of acquiring, using, maintaining and disposal,
•     internal administration costs
•     technical compliance issues
•     risk exposure
•     the value of any associated environmental/sustainability benefits.

b)    Open and effective competition

 Procurement activity should be open and result in effective competition in the provision of goods
 and services. Council must give fair and equitable consideration to all respondents.

c)    The development of competitive local business and industry

 Where price, performance, quality, suitability and other evaluation criteria are comparable, the
 following areas may be considered, in regard to this principle, when evaluating offers:
•     creation of local employment opportunities
•     direct and indirect contribution to the local economy, and community
•     more readily available servicing support
•     the benefit to Council of an associated local commercial transaction.

d)    Environmental protection

 Council promotes environmental protection through its procurement procedures. In undertaking any
 purchasing activities, Council may consider but is not limited to, the following:
•     promote the purchase of environmentally friendly goods and services that satisfy value for
      money criteria
•     foster the development of products and processes of low environmental and climatic impact
•     include in procurement decision making goods and services that contribute to achieving
      Council’s zero emission organisational strategy
•     provide an example to business, industry and the community by promoting the use of
      climatically and environmentally friendly goods and services, and
•     encourage environmentally responsible activities.

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Attachment 5 Procurement Policy

e)     Ethical behaviour and fair dealing

 Council officers involved in purchasing are to behave with impartiality, fairness, independence,
 openness, integrity, and professionalism in their procurement of goods and services, including in
 discussions and negotiations with suppliers and their representatives.

2.     PROCUREMENT THRESHOLDS

 The following table outlines the procurement requirements and thresholds in accordance with this
 Policy.

     Contract     Threshold
      Type          (GST                               Procurement Requirements
                  Exclusive)
                                Council cannot enter into a contract arrangement expected to cost
                                the Council $200,000 GST exc. or more, unless Council first invites
                                written tenders for the contract in accordance with the requirements
                                of section 228 of the Regulation.

                                Expressions of interest (EOI) are subject to section 228 of the
                                Regulation. A Council resolution is required prior to an invitation for EOI.

                                The invitation for tenders/EOI must:
                                 •      be published on Council’s website and in a publication that
                                        circulates locally; and
                                 •     allow written tenders to be given to Council for at least 21
                                       days after the tender is published on Council’s website.
                                Council must comply with the requirements of section 228(8) of the
                                Regulation if it wants to invite tenderers to change their tenders to
                                take account of a change in the tender specification.
  Large                         Council must as soon as practicable after entering a contract worth
                $200,000 and
  Contractual                   $200,000 (GST exc.) or more:
                   greater
  Arrangement
                                 •      publish the relevant details of the contract on Council’s website;
                                        and
                                 •      display the relevant details of the contract in a conspicuous
                                        place in Council’s public office in Tewantin.

                                The relevant details must be published and displayed for a period of at
                                least 12 months.

                                Invitation to Tenders/EOI’s must be made using Council’s e-
                                Procurement system. Records of offers received must be kept on file
                                in accordance with Council’s records management policy and
                                procedures.
                                These requirements are subject to the exceptions identified in Item 3
                                of this Policy.




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Attachment 5 Procurement Policy

       Contract    Threshold
        Type         (GST                              Procurement Requirements
                   Exclusive)
                                 Council cannot enter into a contractual arrangement expected to cost
                                 the Council $15,000 (GST exc.) and less than $200,000 (GST exc.)
                                 unless Council first invites a minimum three (3) written quotes for the
                                 contract.

                                 The invitation must be to at least three (3) suppliers who Council
                                 considers can meet Council’s requirements. Council may decide not
     Medium        $15,000 and   to accept any of the quotes it receives.
     Contractual    less than
     Arrangement    $200,000     The use of Council’s e-Procurement system is the preferred method
                                 of issuing and evaluating quotations. Records of offers received,
                                 regardless of method of issue/receipt, must be kept on file in
                                 accordance with Council’s records management policy and
                                 procedures.
                                 These requirements are subject to the exceptions identified in Item 3
                                 of this Policy.

                                 For contractual arrangements expected to cost Council less than
                                 $15,000 (GST exc.), where it has been determined that inviting one
     Small          Less than    (1) supplier to quote is advantageous to Council, one quotation from
     Contract        $15,000     a capable supplier is sufficient. The quotation shall be recorded as
                                 an attachment in the Technology One procure to pay module.



a)       Accepting Quotes of Tenders
Council may decide not to accept any of the quotes or tenders it receives. Where Council does decide
to accept a quote or tender, Council will accept the quote or tender most advantageous to it, having
regard for the sound contracting principles identified in Section 104 of the Act.


b)       Risk
Where a procurement activity is likely to be medium to high risk then a risk assessment/analysis should
be undertaken.


3.       EXCEPTIONS FOR MEDIUM AND LARGE CONTRACTUAL ARRANGEMENTS

 Division 3 within Part 3 of the Regulation identifies exceptions for medium and large contractual
 arrangements defined in this Policy. If one of the exceptions applies, Council may enter into:
 •     a medium contractual arrangement without first inviting written quotes; or
 •     a large contractual arrangement without first inviting written tenders.




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Attachment 5 Procurement Policy

The exceptions are outlined in the following table:


     Exception                   Process for establishing and/or exercising an Exception.

 Council         Council may enter into a contract if the Contract is entered into with a supplier from an
 Established     Approved Contractor List or a Register of Pre-qualified Suppliers or a Preferred Supplier
 Supplier        Arrangement established by Council in accordance with the requirements of section 231,
 Arrangements    232 or 233 of the Regulation.
 Local
 Government      The Contract is entered into under an LGA Arrangement in accordance with the
 Association     requirements of section 234 of the Regulation, for example ‘Local Buy’ arrangements.
 Arrangement
                 In accordance with the requirements of section 235 (a) and (b) of the Regulation, Council
                 determines that:
 Sole or
 Specialised     •    there is only one supplier who is reasonably available; or
 Supplier/s
                 •    because of the specialised or confidential nature of the services that are sought, it
                      would be impractical or disadvantageous for Council to invite quotes or tenders.
 Genuine
                 In accordance with the requirements of section 235 (c) of the Regulation.
 Emergency
 Auction         The Contract is for the purchase of goods and is made by auction in accordance with the
 Purchase        requirements of section 235 (d) of the Regulation.

 Second-hand     The Contract is for the purchase of second-hand goods in accordance with the
 Goods           requirements of section 235 (e) of the Regulation.

 Government      The Contract is made with, or under an arrangement with, a Government Agency in
 Arrangement     accordance with the requirements of section 235 (f) of the Regulation.
 Quote or
                 In accordance with the requirements of section 230 of the Regulation, where a Quote or
 Tender
                 Tender Consideration Plan has been prepared and adopted (by resolution), then Council
 Consideration
                 may form a Contract from that Plan as contemplated by that Plan.
 Plan/s

Additional Exceptions

Where entering a Small, Medium or Large contractual arrangement that is greater than the cost
thresholds outlined in this Policy but remains within the cost thresholds outlined in Chapter 6 of the
Local Government Regulation 2012 and is considered advantageous to Council, the Procurement
Branch may consider a request to do so, subject to appropriate delegation approvals.

4.      SUSTAINABLE PROCUREMENT

Sustainable Procurement is the practice of leveraging Council’s purchasing power to drive sustainable
outcomes when buying goods and services. Council is committed to embedding sustainable
procurement best practice to further quality procurement outcomes under economic, environmental,
social and cultural Pillars (the Pillars).

Council will take a tailored approach to setting sustainability goals, being informed by the Pillars and
the capability and capacity of the supplier market. This includes a range of sustainable procurement
objectives as detailed in Council’s Procurement Policy Guideline, to be applied to applicable
procurement activity to achieve both direct and indirect sustainable procurement outcomes.




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Attachment 5 Procurement Policy

5.     SUPPLIER FINANCIAL CAPACITY ASSESSMENTS

Council is committed to ensuring that suppliers engaged to deliver projects via a tender/quotation
process have the financial capacity to remain solvent and meet contractual obligations including,
where applicable, payments to sub-contractors, throughout the duration of the contract period.

Ongoing economic pressures have highlighted the need for a process within Council to ensure
appropriate financial capacity assessments and other relevant checks occur as part of procurement
evaluations. This will ensure that risk mitigation occurs to avoid any financial and reputational
impairment that eventuates as a result of the financial failure of a Council contracted supplier.

Council’s Procurement Policy Guideline outlines the procurement categories and project value ($)
thresholds that will trigger the requirement for a financial capacity assessment. The Procurement
Branch will subsequently ensure that appropriate information is included in the tender/quotation
documentation to allow Council (or a third party engaged by Council) to undertake financial capacity
assessments/s.

 a) Assessment Method

 The preferred/recommended suppliers, as a result of the evaluation of price and non-price criteria,
 shall have a financial capacity assessment performed, in accordance with this policy and the
 Procurement Policy Guideline. The Procurement Branch will coordinate this assessment for the
 preferred/recommended supplier/s and provide advice regarding the suitability of a supplier for
 award.

6.     THE PROCUREMENT CONTRACTS ASSESSMENT WORKING TEAM

Where it has been identified that the award of a large contractual arrangement outside of the normal
Council meeting cycle is considered advantageous to Council, the convening of the Procurement
Contracts Assessment Working Team (PCAWT) may be requested. The PCAWT may review
requests for the award of large contractual arrangements up to the value of $1 Million (excluding
GST) that have been sought in accordance with the Regulation and Council’s procurement policy and
guidelines.

 a) Assessment Method

 The PCAWT will review the specific procurement evaluation and scoring documentation (including
 supplier responses if requested), and subsequent evaluation panel recommendations to satisfy itself
 that the evaluation undertaken was fair and equitable and in accordance with Council’s procurement
 policy and guideline. If satisfied, the team will then make a recommendation to the CEO for approval.

 Contracts awarded by the CEO, via the PCAWT will be reported to Council bi-annually by the Director
 Corporate Services.

7.     DISPOSAL OF ASSETS

Council generally disposes of assets via tender or auction unless the disposal meets the exceptions
for ‘valuable non-current assets as described under division 4 section 236 of the Regulation.

8.     DELEGATIONS

Only those Council officers granted a financial delegation as identified in the Financial Delegations
Register are able to:
• enter Council into contracts and
• sign contracts and letters of engagement, and
• approve requisitions in Technology One procure to pay module, in accordance with their
    financial delegation limits.
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Attachment 5 Procurement Policy

9.     PROBITY

 Probity requires that the procurement process is conducted ethically, honestly and with impartiality to
 all participants. Probity is an integral element of any Council procurement activity and is the
 responsibility of all staff members involved.

 Council is committed to ensuring that procurement activities demonstrate the principles of probity
 including by:
 • ensuring integrity, transparency, accountability, and public confidence in the procurement process
 • identifying and resolving any risks of conflict of interests,

10.    REVIEW

It is the responsibility of the Director Corporate Services to monitor the adequacy of this policy and
recommend appropriate changes. This policy will be formally reviewed by Council annually.

ROLES AND RESPONSIBILITIES

Councillors

Councillors will consider and adopt the Policy.

Chief Executive Officer (CEO) and Executive Team

The CEO and Executive Team will endorse for Council adoption and provide leadership and
commitment in complying with the Policy and relevant legislation and documents.

Director Corporate Services
Policy Owner

Procurement Services
Administration and review of the Policy.

Council Officers
Council officers responsible for the procurement of goods and services must comply with this policy.
It is the responsibility of Council officers involved in the procurement process to understand the
meaning and intent of this policy.

RELEVANT LEGISLATION AND POLICIES

Local Government Act 2009
Local Government Regulation 2012

Noosa Council Financial Sustainability Policy
Noosa Council Risk and Enterprise Management Policy
Noosa Council Fraud and Corruption Control Policy
Noosa Council Privacy Policy
Noosa Council Employee Code of Conduct
Noosa Council Councillor Code of Conduct
Noosa Council Financial Delegations Organisational Policy
Noosa Council Procurement Organisational Guideline
Noosa Council Purchase Card Organisational Guideline
Noosa Council Non-Purchase Order Organisational Guideline




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Attachment 5 Procurement Policy

HUMAN RIGHTS COMPATIBILITY STATEMENT

In developing this policy, the subject matter has been considered in accordance with the
requirements of the Queensland Human Rights Act 2019. It is considered that the subject matter
does not conflict with any human rights and supports a human rights approach to decision making
by Council.

This policy should be read in conjunction with the Human Rights Act 2019 (QLD) and Council’s
Human Rights Policy.

 Version control:
                                            Change
    Version         Reason/ Trigger                    Endorsed/ Reviewed by         Date
                                             (Y/N)
    1.0             New policy                         Council                       06/03/2014

    2.0             Review policy              Y       Director Corporate Services   16/05/2016

    3.0             Review policy              Y       Director Corporate Services   11/05/2017

    4.0             Review policy              Y       Council                       06/07/2018

    5.0             Review policy              Y       Council                       28/06/2019

    6.0             Review Policy              Y       Director Corporate Services   7/07/2022

    7.0             Review Policy              Y       Council                       28/06/2024

    8.0             Review Policy              Y       Council                       30/06/2025

    9.0             Review Policy              Y       Council                       23/06/2026




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