USING TECHNOLOGY TO IMPROVE PROCUREMENT AND CONTRACTOR

MANAGEMENT IN THE CITY OF WEST TORRENS

Policies

The Procurement and Contractor Management Environment

Contractor Selection

Contractor Management

Procedures

Delegations

Legislation•ICAC•Local Govt Act•WHS Act

Components of the Procurement and Contractor Management System

Procurement ProcessContractor Management ProcessDocuments and Templates

Procurement IndexFile StructureNaming Conventions

Contract DetailsContractor MonitoringReporting

High Level Procurement ProcessThe flow chart shows the high level steps required to undertake a procurement process. $0-$10,000 only steps 1 and 2 are required>$10,000 all steps must be completed

Step 1 – Determine Procurement ValueThe total value of the procurement should be calculated taking into account the length of the contract and should not be annualised.For procurements where there are ongoing contractor costs such as maintenance, these should be included in the total value.

$10,000-$50,000 a minimum of two written quotes

$50,000-$200,000 a minimum of three written quotes

• RFQ number• RFQ document• Evaluation• Procurement Recommendation• Purchase order or contract

Process

Documentation

$10,000-$200,000

Step 2 – Determine Procurement Process and Documents Required

Step 3 – Determine Risk RatingThe Procurement Risk Assessment should measure the raw risk prior to any controls being implemented in accordance with CWT’s Risk Management Framework.

The raw risk will influence: •RFQ document in terms of:

• conditions of contract used• response schedules included

•Evaluation criteria and measurement•Contractor selection and management

Some examples of the generic types of procurement that may fit in each risk category are available here however, each situation is different and should be assessed individually

Step 4 – Select Procurement CategoryEach category of procurement has unique requirements. The RFT and contract must reflect the category type and risk. Examples of each of the categories are shown below.

>$200,000

Select the appropriate market document and ensure the response schedules are appropriate to the mitigate the identified risks

$10,000-$200,000 RFQ Goods $10k-$200k

>$200,000 RFT

Select the conditions of contract for the RFQ/RFT based on the risk rating

Low Single order Purchase Order Terms and Conditions

Medium-Extreme

Single order Goods One-Off Agreement

Period contract Goods Period Agreement

Period contract with multiple suppliers

Goods Panel Agreement

If you require assistance completing these documents, help is available here or by contacting Procurement.

Step 5 – Select Appropriate Market Documents

RFQ/RFT Number Allocation

Contracts Register

Document Management

Procurement Index

Performance ManagementThe flow chart shows the high level steps required to manage contractors’ performance. Responsibility for monitoring the performance of contactors extends to the life cycle of the contract.

Those responsible for engaging and monitoring third parties shall engage the business rules throughout the phases of the contractor management process. CWT has responsibility through legislative obligations to ensure safe work environments for its contractors.

Contractor Management

Contractor Monitoring

Next Steps

• Add functionality to the flow charts, particularly around assistance to complete templates

• Implement an RFQ management system such as VendorPanel to improve the efficiency, governance and records management of RFQ processes

• Develop a contractor portal on the internet site including a contractor induction system which allows contractors to undertake some inductions online prior to arriving on site to reduce the CWT resources needed and allow additional contractor staff to be inducted as required

• Develop the contract monitoring forms into an online form available on smart phones or tablets to allow direct entry of data into the contracts register including any photos