Procurement and Disposal Policy
Mapoon Aboriginal Shire Council
Procurement and Disposal Policy
Head of Power
Local Government Act 1993 Ch.6 Pt.3
Objectives
To set out the principles that must be followed in Procurement and Disposal
To ensure the Council complies with the related part of the Local Government Act 1993
To require all purchasing and disposal to comply with the Council’s purchasing and disposal manual
Definitions/Application
Definition
$ Valuesare amounts excluding any GST charged.
Purchasingis equivalent to procurement and means the making of contracts for the carrying out of work or the supply of goods or services.
Disposal is the disposal of assets including surplus or waste material, non-current assets, and land.
Application
This policy applies to all purchasing and disposal functions carried out by or for the Council.
Policy Statement
The Council will comply with the provisions of the Local Government Act 1993 Chapter 6 Part 3.
The Couuncil will use the procedural contracting model specified in s. 483P to 492A (Ch.6 Pt.3. Div.3), and will not use the Strategic Contracting Model specified in s. 483A to 483O (Ch.6 Pt.3. Div.2).
The Chief Executive Officer must prepare a Purchasing and Disposal Manual complying with the provisions of s.492A and implementing the requirements of the Act and this policy. The manual, and any changes to it are to be presented to Council.
All employees of the Council must comply with the Purchasing and Disposal Manual.
Principles
The council will employ the following principles in all purchasing and disposal.
(a) open and effective competition;
(b) value for money;
(c) enhancement of the capabilities of local business and industry;
(d) environmental protection;
(e) ethical behaviour and fair dealing.
Open and Effective Competition
Council’s objectives in this regard are as follows:
(a) instil confidence in Council and the public about the probity and cost effectiveness of Council’s procurement generally;
(b) to maximise the prospect of obtaining the most cost effective outcome for Council from invitations to suppliers; and
(c) to ensure that suppliers wishing to do business with Council are given a reasonable opportunity to do so.
These are achieved by:
(a) adoption of a Policy which sets out the principles and methods by which they will be achieved;
(b) suppliers being assured of open and effective competition in Council’s purchasing procedures and priorities;
(c) invitations to suppliers ensuring fair competition among suppliers to provide value for money offerings; and
(d) development of Purchasing and Disposal Manual, approved by Council, which clearly set out the criteria and procedures to be adopted in carrying out these functions.
Value For Money
Council’s objectives in this regard are as follows:
(a) to represent the best return and performance for money spent from a “Total Cost of Ownership” or “Life Cycle Costs” perspective. This may not necessarily favour the lowest price; and
(b) to quantify decisions taken on other than the lowest price basis, in the interests of accountable decision making.
These are achieved by:
(a) financial comparison of “Total Cost of Ownership” of “Life Cycle Costs” perspectives;
(b) ensuring receipt of greatest number of comparable and competitive prices, given the value of goods/services being purchased; and
(c) careful evaluation of all submissions and acceptance only after evaluation against appropriate criteria has occurred.
Enhancement of Capabilities of Local Business and Industry
Council’s objectives in this regard are as follows:
(a) to enhance the opportunity of Shire based and Queensland suppliers of goods and services to be considered for Council business on the basis of merit and value for money; and
(b) to encourage Shire based suppliers of goods and services to establish, maintain and expand employment opportunities for Shire residents.
These are achieved by:
(a) seeking out potential local suppliers;
(b) establishing a register of local suppliers;
(c) taking account of local industrial and commercial capabilities in preparing specifications;
(d) researching local capabilities
(e) eliminating any practices which may favour other suppliers;
(f) encouraging prime contractors to give local suppliers every opportunity; and
(g) adoption of a 10% monetary preference for local suppliers, with a ceiling of $50,000.00, provided performance, quality, suitability and other evaluation criteria are comparable. The preference to be applied where the value of the purchase is over $500.00
Note: Preference for Local Suppliers is defined as: “Businesses (including depots, agencies and branch offices) based and operating within the Shire”
Environmental Protection
Council’s objectives in this regard are as follows:
(a) to promote purchasing practices which conserve resources, save energy, minimise waste, protect human health and maintain environmental quality and safety; and
(b) to maximise the purchase of environmentally-sensitive goods and services.
These are achieved by:
(a) not discriminating against environmentally-sensitive products, especially those containing or made from recycled products;
(b) seeking information in offer documents, on manufacturing procedures or potential to harm the environment;
(c) ensuring that suppliers meet environmentally-related labelling requirements;
(d) identifying hazardous materials;
(e) enforcing bans on products prohibited under
(f) supplying material safety data sheets; and
(g) reviewing the market for the environmentally-sensitive products.
Ethical Behaviour and Fair Dealing
Council’s Objectives in this regard are as follows:
(a) to behave with impartiality, fairness, independence, openness, integrity and professionalism;
(b) to advance the interests of local government;
(c) to attain a high level of credibility;
(d) to have all purchases undertaken impartially, in a professional manner, and
(e) to achieve accountability.
These are achieved by:
(a) regard for the relevant provisions of the Local Government Act 1993, and associated Local Government Finance Standards;
(b) regard for the Principles Governing the Making of Contracts; and
(c) regard for any internal delegations, regulations, practices, and procedures adopted by Council to ensure this objective is achieved.
Related Policies
Entertainment and Hospitality
Councillors Expenses
Code of Conduct
Review Triggers
This Policy is reviewed internally for applicability, continuing effect and consistency with related documents and other legislative provisions when any of the following occurs:
1. The related documents are amended.
2. The related documents are replaced by new documents.
3. Amendments which affect the allowable scope and effect of a Policy of this nature are made to the head of power.
4. Other circumstances as determined from time to time by a resolution of Council.
Not withstanding the above, this Policy is to be reviewed at least once every two years for relevance and to ensure that its effectiveness is maintained.
Responsibility
This Policy is to be:
1. implemented by all councillors and employees; and
2. reviewed and amended in accordance with the "Review Triggers" by the Chief Executive Officer.
Date Approved
22/04/20
Review
Annually
