2026/27 FINANCIAL POLICIES · Attachment 5 - Procurement Policy

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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