Standards, Codes and Guidelines

There are standards, codes and guidelines that may be relevant to Council's tendering procedures.  For example,  The Local Government Act and Local Government (general) Regulation, the Australian Standard Code of Tendering AS4120 1994 applies generally, the NSW Government Policy Statement on the Application of Competition Policy to Local Government must be complied with; and NSW Government Guidelines for Goods and Services Procurement.

Equity and Probity

Pittwater Council will ensure that the quotation process is fair to all parties.  Specifically it will:

• Produce documents which clearly specify Council's required services to allow respondents to bid for and price their work accurately.
• Package work put to quote in a manner which encourages competition and the best outcome for residents and ratepayers.
• Actively discourage improper practices such as collusion, misrepresentation and disclosure of confidential information.
• Require any conflict of interest to be disclosed immediately.
• Have regard to the cost of preparing tenders, expressions of interest or quotations to Council and seek to contain that cost.

Procedure for Obtaining Tenders & Quotations

The procedure for inviting tenders or quotations for goods, services and/or works is dependent upon the estimated cost and time of the proposed activity and the range of suitably qualified suppliers, consultants and/or contractors to be given the opportunity to bid for the project.

The optimum degree of competition obtains best value without imposing undue cost on industry.  The optimum will vary with circumstances including cost and complexity of bidding and the value of service provided.

The minimum levels of competition to be sought are set out below.  The monetary figures are inclusive of GST and based on the approach of the State Government.

Minimum Levels of Competition

1. GOODS AND SERVICES UP TO $1,000 IN VALUE
   Quotations for goods and services are not required subject to the rates being considered reasonable and consistent with normal market rates for items of a like nature.
   
   
2. GOODS AND SERVICES OVER $1,000 AND UP TO $5,000 IN VALUE
   The goods and services being procured by obtaining at least one (1) written quotation subject to the rates being considered reasonable and consistent with normal market rates for items of a like nature.
   
   
3. GOODS AND SERVICES OVER $5,000 AND UPT TO $30,000 IN VALUE
   The goods and services being procured by obtaining at least two (2) written quotations from companies considered to be capable of performing the work.
   
   
4. GOODS AND SERVICES OVER $30,000 AND UP TO $150,000 IN VALUE
   The goods and services being procured by obtaining at least three (3) written quotations from companies considered to be capable of performing the work.
   
   
5. GOODS AND SERVICES OVER $150,000 IN VALUE
   An open tender or expression of interest followed by selective tender in accordance with the Local Government Act and Local Government (general) Regulation.
   
   The acceptance of the tender is required to be reported to the elected Council.

Specifications

Council has a responsibility to its residents and ratepayers to ensure services are delivered properly.

It will therefore develop specifications, which set out clearly Council's expectations.  Most specifications will focus on outcomes, quality and performance requirements.  Some may include both output and input requirements (particularly minimum requirements) for a service.

Public Notice

Council will advertise all open Tenders and Expressions of Interest (EOI) in the Sydney Morning Herald and may advertise them more widely.

Expression of Interest

An Expression Of Interest (EOI) process may be used before Council invites tenders.  The aim at EOI stage is to assess the capacity of respondents to undertake the work, to seek feedback on draft specifications to assist in the refinement of specifications and to shortlist respondents for a selective tender.  Evaluation criteria for shortlisting for selective tenders will be included in each EOI.

Council may invite tenders from some, all, or none of the registrants, by the advertised date.  Respondents who are not invited to quote will be advised in writing.  Council will use this list of registrants to invite tenders for the advertised contract/s only.

Invitation to Tender, Expression of Interest or Quote

Council will offer the same documents to all those who respond to an invitation to tender, expression of interest or quotation. 

If the Council gives advice, verbal or in writing, to a respondent clarifying the meaning of the quotation documentation, it will give the same information to all other respondents in writing.  Council will maintain a written record of all advice given.

The Council will respect the confidentiality of a respondent who discloses information, which has commercial or intellectual property value.

A 'pre-tender/pre-quotation' briefing may be held and Council may decide to give no additional information apart from that briefing.

Quotation Evaluation

Council will establish a tender/quotation evaluation panel with more than one member where the estimate value of the goods and services or works exceeds $50,000.

Award of Contract

The Council may negotiate with respondents to determine the award of the contract but must have regard to the scope of the tender or quotation document at all times.  Council will not trade the price of one respondent against that of another respondent.  All negotiations with one will be exhausted before beginning negotiations with another.  The Council will award the contract on the basis of the best quality and value for money for ratepayers and the local community. 

Unsuccessful bidders will be notified promptly in writing.

Complaints

Complaints about the quotation process will be dealt with promptly by Council.  Each complaint will be responded to by the General Manager or delegated Senior Officer.