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SP103 ANNUAL PROCUREMENT POLICY AND CONTRACTING PLAN 2017-18

OVERVIEW

Council’s Annual Procurement Policy and Contracting Plan and Contract Manual make provision for circumstances in which Council seeks to engage in a Contracting Activity.

Section 190 of the City of Brisbane Regulation 2012 (the Regulation) requires that Council make and adopt a Procurement Policy for each financial year. The Procurement Policy must include details of the principles, including the sound contracting principles, that Council will apply in the financial year for purchasing goods and services. Council must review its Procurement Policy annually.

Section 210 of the Regulation also requires that Council make and adopt a Contracting Plan for the same financial year. The Contracting Plan provides for:

(a) the types of contracts that Council proposes to make in the financial year (b) the principles and strategies for performing the contracts(c) a policy about proposed delegations for the contracts(d) a market assessment for each type of contract(e) the contracts that Council considers will be significant (a significant contract) having regard to the

market assessment(f) a policy about the making of a Significant Contracting Plan under section 211 of the Regulation.

APPLICABILITY

This policy applies to any procurement activity undertaken by Council.

APPROVING AUTHORITYCouncil on 05/09/2017

POLICY OWNERChief Procurement Officer, Strategic Procurement Office, Organisational Services

RELATED INFORMATIONSP101 Contract Manual

SP200 Procedures for Procurement and Disposal

REVIEW DATE29/08/2018

RM: CA17/652718 Date printed 5 May 2023

POLICY

CONTENTS:

1. SOUND CONTRACTING PRINCIPLES

2. SUSTAINABLE PROCUREMENT POLICY

2.1. Sustainable procurement as a process

2.2. Principles and objectives

2.3. Social procurement policy

2.4. Applying sustainable procurement in Council

3. STRATEGIC PROCUREMENT AND CONTRACTING APPROACH

3.1. Strategic Procurement Office

3.2. Heading in the right direction

3.3. Category Management

3.4. Category planning

3.5. Sourcing classification

3.6. Annual sourcing plans

3.7. Seven-step sourcing process

3.8. Value for money methodology and selection

3.9. Contract durations

3.10. Corporate Procurement Arrangements

3.11. Supplier tiering and management of supplier relationships

3.12. Engaging with industry to identify and implement innovation

(a) Strategic partner program

(b) Better Brisbane Proposals policy

4. CONTRACT MANUAL AND EXEMPTIONS

5. GOVERNANCE

6. MAJOR PROCUREMENTS EXPECTED TO COMMENCE IN 2017-18

7. DISPOSALS EXPECTED TO COMMENCE IN 2017-18

8. POLICY FOR SIGNIFICANT CONTRACTING PLANS AND DELEGATIONS

9. TRAINING CAPABILITY AND COMPETENCIES

10. COMPLAINTS PROCESS

Schedule A – Forward Contracting Schedule for Goods, Services and Construction 2017-18Schedule B – Forward Disposal Schedule 2017-18

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1. SOUND CONTRACTING PRINCIPLES

Council applies sound contracting principles to its contracting activities via its Contract Manual and this Annual Procurement Policy and Contracting Plan. The sound contracting principles are:

1.1 Value for money

1.2 Open and effective competition

1.3 Nurture competitive local business and industry

1.4 Environmental protection

1.5 Ethical behaviour and fair dealing.

2. SUSTAINABLE PROCUREMENT POLICY

2.1 Sustainable procurement as a process

The following working definition of sustainable procurement has been developed by the Queensland Government: Sustainable procurement is a process whereby organisations meet their needs for goods, services and capital projects, in a way that achieves value for money on a whole-of-life basis in terms of generating benefits not only to the organisation, but also to society, the economy and the natural environment.

2.2 Principles and objectives

In its Corporate Sustainability Policy, Council commits to applying principles of sustainability to all of its decision-making and activities. In addition, Council applies sound contracting principles to its procurement and disposal activity. The following economic, environmental and social objectives have been determined in line with these principles.

Area Principles ObjectivesEconomic Principles of sustainability:

Recognise dimensions beyond our border while concentrating on issues we can influence

Integrate long and short-term economic, environmental and community considerations

Sound contracting principles: Value for money Open and effective competition The development of competitive

local business and industry

Achieve value for money over whole-of-life (including disposal), rather than just initial cost

Harvest $30 million in savings from procurement activities

Manage demand and supply to ensure that competitive markets and the availability of resources are sustained in the long term

Ensure probity and accountability in the procurement process

Environmental Principles of sustainability: Act cautiously when there is a risk

of serious or irreversible impacts on the environment or the community

Enhance and maintain biodiversity and natural environmental systems

Sound contracting principles: Environmental protection

Minimise environmental harm, including end-of-life impacts

Maximise resource efficiency (e.g. reduce energy and water consumption and minimise waste)

Minimise carbon emissions and contribute towards Council’s carbon neutral status

Social Principles of sustainability: Provide for broad public

involvement on issues that affect the community

Provide for equity within and between generations

Sound contracting principles: Ethical behaviour and fair dealing

In the procurement process, ensure that Council’s Zero Harm requirements are met and Workplace Health and Safety (WH&S) legislative compliance is achieved

Maintain a social procurement program to increase social procurement spend – target $4 million

Ensure sourced products are

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Development of competitive local business and industry

accessible by all segments of the community

Specific initiatives to achieve the objectives summarised above are to be agreed between Category Management and key Council stakeholders and incorporated into relevant Strategic Procurement Office plans.

2.3 Social procurement policy

Social procurement involves generating positive social benefits/outcomes:

(a) directly, through procurement from social enterprises, microenterprises, community enterprises and indigenous organisations (Social Enterprises)

(b) indirectly, through leveraging commercial supply relationships.

Council is committed to fostering the capability and capacity of Social Enterprises. This contributes to the development of competitive local business and industry by assisting these organisations grow into competitive suppliers.

2.4 Applying sustainable procurement in Council

When Council undertakes contracting activities, officers apply sustainable procurement by considering how Council can make a contribution to sustainability when:

(a) examining organisational, project and/or community needs for an anticipated contracting activity

(b) developing strategies for a contracting activity

(c) developing specifications for a contracting activity

(d) planning/undertaking evaluations as part of a contracting activity.

3. STRATEGIC PROCUREMENT AND CONTRACTING APPROACH

3.1 Strategic Procurement Office

Council procurement is led by Council’s Strategic Procurement Office. Strategic Procurement Office sources and manages arrangements for goods, services and works that meet the needs of users within Council and drives the best outcome for Brisbane.

3.2 Heading in the right direction

Strategic Procurement Office leverages the supply community to improve the experience for Brisbane’s ratepayers, residents, businesses and visitors, now and in the future. Suppliers have an increasing role in the value chains that deliver the services and infrastructure to meet the needs of current and future generations. Strategic Procurement Office seeks to nurture, optimise and improve value from supply chains.

3.3 Category Management

Council undertakes many types of contracting activities which fall broadly into four categories:

(a) commodities and services

(b) construction and operations

(c) information and communications technology

(d) managed services.

The centre-led approach to procurement focuses on the strategic management of the above categories of Council spend. Each category is managed by a Category Management team in Strategic Procurement Office which partners with Council businesses. The strategy employed by each Category Management team includes:

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(a) development of category plans for long-term strategy and implementation planning

(b) a sourcing classification to understand where to direct effort

(c) annual sourcing plans to manage business needs and resources

(d) a seven-step sourcing process to engage Council stakeholders and the supply market

(e) establishment of Corporate Procurement Arrangements to leverage value

(f) supplier tiering and management of supplier relationships

(g) engaging with industry to identify and implement market-led solutions via:

(i) a strategic partnering program for key suppliers

(ii) a Better Brisbane Proposals policy.

Category management is supported by specialists in the areas of sourcing, insurance, risk, procurement governance, analytics and electronic tendering.

3.4 Category planning

Each Category Management team develops category plans for its spend area. These plans provide long-term strategy and actionable plans for sourcing. ‘Sourcing’ means the process used to obtain/source goods, services or works from the supply market. Category plans segment categories into discrete areas and examine market trends, supply options and potential procurement strategies. In general, category plans are developed with a three to five-year strategic outlook and refreshed annually. In some situations, such as highly dynamic markets, category plans may require a short term outlook and can be monitored and refreshed on a more regular basis.

The key outputs of category plans are a category strategy and a high-level implementation plan.

3.5 Sourcing classification

Category Management applies a sourcing classification to understand where to direct effort in relation to the sourcing process. This assessment classifies Council spend for each contract on the basis of procurement risk and relative expenditure. Strategic Procurement Office focuses on the critical areas of spend.

Pro

cure

men

t ris

k

Bottleneck

Strategic Procurement Office sources with support from divisions and business units

Critical

Significant Contracting Plan required. Strategic Procurement Office sources

Routine

Either Strategic Procurement Office or business units source

Leverage

Strategic Procurement Office sources with support from divisions and business units

Relative expenditure

3.6 Annual sourcing plans

Based on the category plans, Strategic Procurement Office develops an annual sourcing program to manage its sourcing activity for the financial year. Key sourcing activities for the financial year are included in the forward procurement schedule and forward disposal schedules attached to this plan.

3.7 Seven-step sourcing process

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For centre-led procurements, the Category Management teams utilise a seven-step sourcing process:

The seven-step sourcing process includes analysis of Council spend data, partnering with stakeholders to understand requirements, conducting market research, developing a sourcing strategy and engaging the market through a structured method which is designed to enhance value for money outcomes.

During the seven-step sourcing process, the high-level approach from the category plan is applied and refined to develop a detailed strategy for the sourcing of those particular goods, services or works.

3.8 Value for money methodology and selection

Council utilises a value for money methodology when assessing tenders and proposals. This usually involves deriving a value for money score by dividing the value score achieved (against weighted non-price attributes) by a comparative price, which weights price and non-price factors equally.

The comparative price may utilise approaches such as whole-of-life cost, basket of commonly purchased items or the estimated cost to Council.

Selection is based on the most advantageous outcome for Council. The value for money methodology provides an indication of which offer represents the most advantageous outcome for Council.

3.9 Contract durations

The duration of individual contracts is established through strategic category planning and the seven-step sourcing process. Generally, Strategic Procurement Office engages the marketplace at least once in each five-year period. The market may be engaged more frequently in some circumstances, for example where:

(a) there is a change in Council’s needs, a change in the market or a change in best practice

(b) strategic category planning or market research indicates that more frequent sourcing would deliver a more advantageous outcome for Council.

Where existing suppliers demonstrate a continuous high quality of service, arrangements may be renegotiated and extended. The effect of this approach is to eliminate unnecessary sourcing activity and allow the Strategic Procurement Office resources to be directed at categories and contracts where value for money will be better achieved. Details of this exemption from the standard Contract Manual processes are contained in Schedule C of this plan.

3.10 Corporate Procurement Arrangements

Corporate Procurement Arrangements (CPAs) are contractual arrangements established by Category Management teams to meet the purchasing needs of Council business areas. CPAs include panel arrangements, preferred supplier arrangements and registers of pre-qualified suppliers. CPAs are one of the key tools used by Category Management to implement strategic category plans. Corporate Procurement Arrangements are used by Council to:

(a) aggregate and leverage purchasing requirements

(b) reduce transaction costs (to both suppliers and Council) by agreement of terms and rates, which apply to purchases made under the arrangement.

The strategy for each CPA is developed through strategic category planning and implemented through a planned sourcing activity.

3.11 Supplier tiering and management of supplier relationships

Category Management teams engage with suppliers through the management of Corporate Procurement Arrangements to drive value for money outcomes for Council. This engagement may include value improving initiatives such as demand management and process improvements.

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Benefits tracking

Execute Integration

with Suppliers

Negotiate and SelectSuppliers

Select Implement-ation Path

GenerateSupplierPortfolio

Select Sourcing Strategy

Profile Sourcing

Group

Category Management teams use supplier tiering to understand where to direct effort in relation to the management of existing supply relationships.

Category Management gives priority to managing tier one suppliers to drive value improvement. Category Management actively manages tier two suppliers, maintains an overview of tier three suppliers and provides limited category management for tier four suppliers.

3.12 Engaging with industry to identify and implement innovation

Innovation is fundamental to achieving the Brisbane Vision, improving quality of life for residents while ensuring our city has the services and infrastructure to meet the needs of future generations. Innovation can also deliver better value for money outcomes for Brisbane. Innovative solutions can be developed in the market long before they are identified by Council. Strategic Procurement Office nurtures and encourages industry to identify and implement innovation. This is achieved through a number of initiatives including a strategic partner program and a Better Brisbane Proposals policy.

(a) Strategic Partner program

(i) Overview

Strategic Procurement Office has developed a strategic partner program which will focus on a small group of suppliers that align closely with Council and have the potential to realise innovation and advantageous outcomes for Council over an extended period.

Under the program, a small number of suppliers may be designated as strategic partners. Council may directly engage a strategic partner(s) for the provision of goods/services/works, subject to a public interest test, reporting and governance requirements.

(ii) Filtering

Potential strategic partners are to be identified through the supplier tiering methodology summarised in section 3.10. It is anticipated that a small number of potential strategic suppliers will be identified from tier one and possibly tier two. Suppliers identified through this process may be regarded as strategic suppliers and admitted to the program.

(iii) Assessment

Ongoing assessment against the following criteria will allow Council to determine whether each supplier on the program is to be designated by Council as a Strategic Partner:

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(iv) Designation as a strategic partner

A supplier may only be designated as a strategic partner via a Significant Contracting Plan approved by Council’s Establishment and Coordination Committee (E&C).

(v) Entering into and extension of supply arrangements

Council may enter into supply arrangements (or extend existing arrangements in terms of scope or duration) with strategic partners on a direct engagement basis. Arrangements may be extended for defined periods until such time as those arrangements, in Council’s view, no longer deliver value for money to Council.

(vi) Governance

Approvals

Submissions to enter into or extend an arrangement with a strategic partner are to be approved in accordance with existing delegations for sole sourcing.

Decision requirements

Decisions to enter into or extend an arrangement with a strategic partner must be in the public interest, provide value for money to Council and be documented in formal submissions.

Reporting of decisions

All decisions to enter into or extend an arrangement with a strategic partner are to be reported monthly to Council.

Ongoing assessment and monitoring

Ongoing assessment and monitoring of the performance of each strategic partner is to be undertaken to ensure that Council continues to receive value for money under the arrangements. Assessment is expected to be undertaken based on a balanced score card approach and monitoring provided via dashboard reporting.

The strategic partner program is expected to focus on a small group of suppliers with the potential to realise innovation over an extended period.

(b) Better Brisbane Proposals policy

(i) Overview

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Through this Better Brisbane Proposals policy, Council will engage with the supply community to identify and implement innovation in its contracting activities. Council’s Better Brisbane Proposals policy enables businesses to approach Council with proposals which solve Brisbane problems or contribute to the Brisbane Vision and provide Brisbane with value for money outcomes.

(ii) Policy

To be considered under the policy, proposals must:

A. solve a Brisbane problem, address an opportunity for Brisbane, or enhance services Council provides

B. represent value for money to Council.

Council can have a number of different roles in progressing a Better Brisbane Proposal to keep Brisbane heading in the right direction. These roles can include Council as an advocate, facilitator, partner, buyer or regulator.

If Council wishes to purchase that type of good/service/innovation, Council may proceed with a Better Brisbane Proposal in a number of different ways which can include:

A. competitive or collaborative processes with multiple suppliers

B. direct engagement with the proponent or

C. alternative/hybrid models.

Proposals will not be considered under this policy where the Council has issued a request for tenders, proposals or expressions of interest and Council considers that the request issued was the appropriate channel for the receipt of offers.

(iii) Direct engagement

Council may directly engage with the proponent of the proposal for the good/service/innovation if, in Council’s view, it is in the public interest. This generally involves consideration of whether:

A. the proposal contains intellectual property rights or elements, such that tendering for the requirement would be unfair or deprive the proponent of its innovation

B. the outcome is considered to be fair to the supply market

C. the proposal is considered to be advantageous for Brisbane

D. value for money to Brisbane can be demonstrated/substantiated.

(iv) Process

Better Brisbane Proposals will be assessed using the following process:

A. Stage One: An optional, free pre-proposal meeting between the proponent and Council procurement officers to discuss the key attributes, benefits, requirements and assumptions underlying the potential proposal. This is not a compulsory stage but may assist the proponent to position and develop the proposal, expediting the subsequent assessment stages. Council may provide feedback at this stage as to whether it considers that the proposal, as presented, is consistent with the policy. It is the proponent’s decision as to whether it proceeds with making a formal proposal.

B. Stage Two: Preliminary assessment of the proposal will be undertaken in accordance with the policy to determine if the proposal has sufficient merit to warrant progression to Stage Three and further consideration. Generally, the proponent will be offered the opportunity to present its proposal to Council officers. A recommendation will be made to Council’s Oversight of Consultancies Special Committee which will decide whether the proposal is to progress to Stage Three.

C. Stage Three: The proponent will be required to provide a detailed proposal and work cooperatively with Council officers in the development and assessment of a detailed proposal. Council will undertake a detailed assessment of the detailed proposal to

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ascertain if sufficient value can be achieved for customers (residents, businesses ratepayers and visitors) through a direct engagement. This stage will consider elements such as the technical, financial, risk and logistical aspects of the proposal.

D. Stage Four: Negotiation of a final binding offer involves the finalisation of all outstanding issues with a view of entering into a binding agreement, should the Council accept the final offer.

(v) Commitments to suppliers

Council will:

A. treat proponents fairly

B. respect the confidentiality of proponents’ information and intellectual property

C. endeavour to provide a written outcome within a reasonable timeframe

D. bear its own costs and expects all proponents to bear their own costs, unless otherwise agreed by the parties.

3.13 CONTRACT MANUAL AND EXEMPTIONS

Council’s Contract Manual sets high-level procedures which regulate Council’s standard sourcing activity. These high-level procedures include thresholds for quoting and public tendering. The Contract Manual applies to sourcing conducted by Strategic Procurement Office and all other divisions/business units across Council.

Schedule C of this Annual Procurement Policy and Contracting Plan contains some exemptions from the standard process in Council’s Contract Manual. These exemptions have been developed by Strategic Procurement Office to streamline approvals and remove non-value adding processes.

4. Governance

Strategic Procurement Office administers a number of boards which play a key role in Council’s governance arrangements for procurement. These boards include the Stores Board, chaired by Council’s Chief Executive Officer and several procurement boards chaired by Council’s Chief Procurement Officer. Council has procurement boards for:

(a) construction

(b) information and communications technology

(c) goods and services.

For high value sourcing activities, these boards provide a forum for delegates to consider and approve the strategy for a contracting activity (pre-market approval) and also approve entering into contracts for a procurement/disposal (post-market approval). Boards are attended by appropriately qualified officers to ensure that sourcing processes and decisions are robust and meet probity requirements.

5. Major PROCUREMENTS EXPECTED TO COMMENCE IN 2017-18

Major procurements with sourcing expected to commence in the 2017-18 financial year are summarised in the Forward Contracting Schedule at Schedule A.

6. DISPOSALS EXPECTED TO COMMENCE IN 2017-18

Major disposals with sourcing expected to commence in the 2017-18 financial year are summarised in the Forward Disposal Schedule at Schedule B.

7. POLICY FOR SIGNIFICANT CONTRACTING PLANS AND DELEGATIONS

Significant Contracting Plans will be prepared for those sourcing activities to be commenced in 2017-18 financial year which have:

(a) an estimated contract expenditure of $10 million or above

(b) been assessed by Strategic Procurement Office as critical, using its sourcing classification.

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Significant Contracting Plans are approved by E&C.

Delegations for contracting activities have been approved by Council and the Chief Executive Officer. Current delegations align with the centralised approach to procurement, led by Strategic Procurement Office, which enables aggregation of demand across Council. Delegations and governance arrangements have been structured so that decisions for key sourcing processes are made, in collaboration with business areas, by delegates that are independent of business areas.

8. TRAINING CAPABILITY AND COMPETENCIES

The development of skills and competencies in the areas of value chain design and optimisation, supply chain management, sourcing, negotiation, category management, relationship and vendor performance management will continue to receive support from Council.

9. COMPLAINTS PROCESS

A process is in place for the receipt and handling of all complaints against Council and applies for complaints concerning procurement and disposal activities.

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SCHEDULE AFORWARD CONTRACTING SCHEDULE FOR GOODS, SERVICES AND CONSTRUCTION 2017-18

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MAJOR CONSTRUCTION

Detailed below are major Council programs (programs are defined as programs of like work) and projects against which major procurement activity is scheduled to occur during the 2017-18 financial year and later. The ‘Estimated Value of contracts…’ column shows an estimate of the sum of the procurement for which Council is scheduled to engage the market in 2017-18. Where the ‘Estimated Value of contracts…’ for a project or program detailed below reaches or exceeds $10 million or is designated as a ‘significant’ contract that contract will be a significant contract for the purposes of section 210 of the City of Brisbane Regulation 2012.

Major Projects(Greater than $2 million)

2017-18

Estimated value of contracts greater than $2 million going

to market in 2017-18

Expected Quarter

at MarketProposed Procurement

Strategy Contact Details (subject to change)

Garden City Library enhancement project $3,586,000 Q1 Quotes under existing Corporate Procurement Arrangement

Project Delivery Manager, Civic and Building, City Projects Office, Brisbane Infrastructure, 3403 4876

Carina Bus Depot – office alterations $1,835,000 Q1 Quotes under existing Corporate Procurement Arrangement


Brisbane River Fountain (Daphne Mayo) $3,000,000 Q1 Public tender Project Delivery Manager, Civic and Building, City Projects Office, Brisbane Infrastructure, 3403 4333

New Farm Library refurbishment $1,907,000 Q1 Quotes under existing Corporate Procurement Arrangement


Langlands Pool upgrade $3,800,000 Q3-Q4 Public tender Project Delivery Manager, Civic and Building, City Projects Office, Brisbane Infrastructure, 3403 4876

Smoother Suburban Streets – Road network resurfacing

$35,000,000(Comprised of a number of

packages of works)

Q1-Q4 Quotes under existing Corporate Procurement Arrangement

Program Delivery Manager, Road Infrastructure, Civil and Transport, City Projects Office, Brisbane Infrastructure, 3178 4092

Ferry terminals and maritime construction and repair services

$10,000,000 Q3-Q4 Public tender Program Delivery Manager, Road Infrastructure, Civil and Transport, City Projects Office, Brisbane Infrastructure, 3178 4092

Accessible bus stop upgrade program $2,500,000 Q1-Q4 Quote under existing Corporate Procurement Arrangement

Program Delivery Manager, Civil Infrastructure, Civil and Transport, City Projects Office, Brisbane Infrastructure, 3403 7585

Stapylton and Johnson Road intersection upgrade $10,000,000 Q1 Public tender Program Delivery Manager, Road Infrastructure, Civil and Transport, City Projects Office, Brisbane Infrastructure, 3178 4092

Progress Road upgrade stage 4 $18,000,000 Q1 Public tender Program Delivery Manager, Road

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Major Projects(Greater than $2 million)

2017-18

Estimated value of contracts greater than $2 million going

to market in 2017-18

Expected Quarter

at MarketProposed Procurement

Strategy Contact Details (subject to change)

Infrastructure, Civil and Transport, City Projects Office, Brisbane Infrastructure, 3178 4092

Woolloongabba Bikeway $10,000,000 Q2 Public tender Program Delivery Manager, Civil Infrastructure, Civil and Transport, City Projects Office, Brisbane Infrastructure, 3403 7585

Kangaroo Point stage 1 upgrade $4,000,000 Q2 Quotes under existing Corporate Procurement Arrangement

Program Delivery Manager, Civil Infrastructure, Civil and Transport, City Projects Office, Brisbane Infrastructure, 3403 7585

Beckett and Hamilton roads $3,500,000 Q3 Quotes under existing Corporate Procurement Arrangement


Green Camp Road $18,000,000 Q4 Public tender Program Delivery Manager, Road Infrastructure, Civil and Transport, City Projects Office, Brisbane Infrastructure, 3178 4092

Waterworks Road $7,000,000 Q4 Quotes under existing Corporate Procurement Arrangement


Murphy and Ellison roads $25,000,000 Q4 Public tender Program Delivery Manager, Road Infrastructure, Civil and Transport, City Projects Office, Brisbane Infrastructure, 3178 4092

Major drainage construction $3,000,000(Comprised of a number of

packages of works)

Q1-Q4 Quotes under existing Corporate Procurement Arrangement

Manager, Contracts and Structure Services, Construction, Field Services, Brisbane Infrastructure 3403 7831

TOTAL $160,128,000

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GOODS AND SERVICES (SIGNIFICANT)

Detailed below are anticipated significant contracts in relation to goods and services and against which major procurement activity is scheduled to occur during the 2017-18 financial year and later. These contracts are considered to be significant contracts for the purposes of section 210 of the City of Brisbane Regulation 2012. In some cases Council may elect to exercise an existing option to extend a contract rather than engaging the market with a view to entering into a new contract.

Grouping ProductCategory

Description Indicative Annual Spend $ Expected Quarter at

Market

Comments Contact Details

(subject to change)

Commodities and Services

Electric utilities Contestable electricity: general and street

$30,800,000 Q1 Review of current contract arrangements or public tender

Category Manager – Commodities and Services, Strategic Procurement Office, Organisational Services, 3403 9090

Passenger or automobile ferries

Design and construction of CityCats

$4,000,000 Q1 As above As above

Temporary personnel services

Administration and trades temporary labour hire


Construction machinery and equipment hire

Intermittent hire of major and minor plant, trucks and specialised equipment


Printed and electronic media

Library collections $7,000,000 Q2 As above As above

Printing Printing services $2,400,000 Q3 As above As above

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Market


(subject to change)

Construction and Operations

Quarry maintenance services

Quarry maintenance services at Mt Coot-tha and Bracalba quarries

$2,500,000 Q1 As above Category Manager – Construction and Operations, Strategic Procurement Office, Organisational Services, 3178 8530

Quarry drilling and blasting services

Quarry drilling and blasting services at Mt Coot-tha and Bracalba Quarries


Pre-mixed concrete

Pre-mixed concrete services

$5,700,000 Q1-Q2 As above As above

Ecosystems Herbicide application services


Mowing services Grass cutting services $15,600,000 Q2 As above As above

Traffic control and sign vehicles

Traffic controllers, sign vehicles and related traffic control equipment services


Information and communications technology

Network Telecommunication services Head Agreement

$7,200,000 Q2 As above Category Manager – ICT and Technology, Strategic Procurement Office, Organisational Services, 3403 9109

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Market


(subject to change)

Managed Services Parking meters Integrated parking management program

New project (to be determined) Q1-Q4 As above Category Manager Managed Services, Strategic Procurement Office, Organisational Services, 3403 1951

TOTAL $165,500,000 (and integrated parking management program to be determined)

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GOODS AND SERVICES (NON-SIGNIFICANT)

Detailed below are further anticipated contracts in relation to goods and services against which procurement activity is scheduled to occur during the 2017-18 financial year and later. These contracts are not considered to be significant contracts for the purposes of section 210 of the City of Brisbane Regulation 2012. In some cases, Council may elect to exercise an existing option to extend a contract rather than engaging the market with a view to entering into a new contract.


Description Indicative Annual Spend $

Expected Quarter at

Market

Comments Contact Details (subject to

change)Commodities and Services

Quantity surveying service

Quantity surveying and estimating services

$300,000 Q1 Review of current contract arrangements or public tender

Category Manager – Commodities and Services, Strategic Procurement Office, Organisational Services, 3403 9090

Construction and building materials

Supply and delivery of construction site caravans

$512,000 Q1 As above As above

Environmental rehabilitation

Contaminated land auditors panel


Temporary construction and maintenance

Intermittent hire of crowd control barriers and temporary fencing


Oil and gas utilities Compressed Natural Gas (CNG) maintenance at bus depots


Building consent and permit engineering

Professional building certification services


Chartered bus services

Private bus operators for special events


Burial or grave products

Memorial plaques and granite bases


Construction machinery and equipment

Intermittent hire services for small plant, transportable buildings and road safety barriers


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Expected Quarter at

Market


change)Construction and Operations

Live plants Supply of plants $707,000 Q1 As above Category Manager – Construction and Operations, Strategic Procurement Office, Organisational Services, 3178 8530

Plumbing fixtures General plumbing supplies $550,000 Q2 As above As above

Construction and building materials

Precast concrete products $1,554,000 Q3 As above As above

Traffic signals Traffic signal control boxes $472,000 Q3 As above As aboveMosquito management or control services

Aircraft services for mosquito control


Electrical equipment and components

Electrical fittings and consumables


Pumps Servicing and maintenance of pumps and pumping equipment


Traffic control network

Loop cutting services $457,000 Q3 As above As above

Heating and cooling and air conditioning

Preventative and reactive maintenance and servicing of heating ventilation and air conditioning (HVAC) systems and gas monitoring services


Traffic control network

Pedestrian control services for events


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Expected Quarter at

Market


change)Information and communications technology

Geographic information system (GIS) engines ICT

GIS services panel $1,500,000 Q1 As above Category Manager – ICT and Technology, Strategic Procurement Office, Organisational Services, 3403 9109

Application delivery platform services ICT

Business analyst and solution architect services arrangement


Tablet PC Surface tablets (Dell) $1,300,000 Q1 As above As above

Software licence management

Managed software asset management solution (MSAM)


Desktop hardware Computer hardware and associated services


Application virtual machines

VMWare products and services


Audio and video devices

Audio-visual equipment and services


Software and testing Tools

ICT testing services $1,270,000 Q3 As above As above

Managed Services Electrical systems, lighting, components and accessories

Smart poles $500,000 Q1 As above Category Manager Managed Services, Strategic Procurement Office, Organisational Services, 3403 1951

Insurance claims management services

Insurance claims management and services


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Expected Quarter at

Market


change)Audit services Internal audit co-sourcing

arrangement $532,000 Q3 As above As above

TOTAL $23,387,000

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SCHEDULE BFORWARD DISPOSAL SCHEDULE 2017-18

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DISPOSALSThe following items represent disposals of $5,000 or greater that the Council may seek to commence/conclude during the 2017-18 financial year. Actual disposal activity will be dictated by a number of factors that may include the level of operational activity and any purchasing arrangements implemented. Significant Disposal Plans for the identified disposal activities will be developed where disposals are not in accordance with the Contract Manual or the proposed disposal approach.

Disposal Activity Proposed Disposal Approach Procurement Outcome

KPI/Measure to gauge success

Area of Council responsible for the

disposal activityExpected

Timing

Computer equipment Re-purchase by vendor, ‘Green ICT’ disposal arrangement, public auction or tender

Economic/Environmental

Return greater than book value

Customer Service Delivery, Information Services, Organisational Services

Q1-Q4

Computer desktops and/or laptops

Community disposal Social Up to 300 functioning computers (desktops or laptops) allocated to community groups

Customer Service Delivery, Information Services / Community Development Team, Connected Communities, Lifestyle and Community Services

Q1-Q4

Computer server, storage and communications equipment

Re-purchase by vendor, ‘Green ICT’ disposal arrangement, public auction or tender

Economic/Environmental

Return greater than book value

Customer Service Delivery, Information Services, Organisational Services

Q1-Q4

Passenger vehicles Public tender/auction or sale by private treaty through the auction house at the agreed reserve price if the asset has been passed in at a previous auction

Economic Return greater than book value

Fleet Solutions, Field Services, Brisbane Infrastructure

Q1-Q4

Light commercial vehicles

Public tender/auction or sale by private treaty through the auction house at the agreed reserve price if the asset has been passed in at a previous auction



Q1-Q4

Trucks Public tender/auction or sale by private treaty through the auction house at the agreed reserve price if the asset has been passed in at a previous auction



Q1-Q4

Major and general plant Public tender/auction or sale by private treaty through the Economic Return greater than Fleet Solutions, Field Q1-Q4

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Disposal Activity Proposed Disposal Approach Procurement Outcome

KPI/Measure to gauge success

Area of Council responsible for the

disposal activityExpected

Timing

and equipment auction house at the agreed reserve price if the asset has been passed in at a previous auction

book value Services, Brisbane Infrastructure

Special vehicles Public tender/auction or sale by private treaty through the auction house at the agreed reserve price if the asset has been passed in at a previous auction



Q1-Q4

Obsolete inventory Public tender/auction Economic Return greater than five per cent of current book value

Payment and Supply Services, Support Services Centre, Organisational Services

Q1-Q4

Buses Public tender/auction or sale by private treaty through the auction house at the agreed reserve price if the asset has been passed in at a previous auction. If no buyers are interested and the likelihood of a sale at a future auction is low, compared with the number of buses to be disposed, then the asset will be sold as scrap metal to the scrap metal merchant offering the best price.

Economic Return best scrape metal value

Transport for Brisbane Q1-Q4

Ferries No disposal of Ferry Fleet proposed in the 2017-18 financial year.

Any future disposal would be undertaken via a public tender/auction or sale by private treaty through a registered Ship Broker with an agreed reserve price.

Economic Return per cent of book value

Transport for Brisbane N/A

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