USING TECHNOLOGY TO IMPROVE PROCUREMENT AND CONTRACTOR MANAGEMENT IN THE CITY OF WEST TORRENS

Contractor Management The Procurement and Contractor Management Environment Procurement Process Supply Market Value Risk Contractor Selection Contractor Management Policies Procedures Delegations Legislation ICAC Local Govt Act WHS Act

Components of the Procurement and Contractor Management System Procurement Process Contractor Management Process Documents and Templates Intranet Portal Document Management (ECM) Contracts Register (Pathway) Contract Details Contractor Monitoring Reporting Procurement Index File Structure Naming Conventions

High Level Procurement Process The 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 1 Determine total procurement value 2 Determine procurement process and documents required 3 Determine risk rating 4 Select procurement category 5 Select appropriate market approach documents 6 Undertake evaluation 7 Complete Procurement Recommendation Report 8 Raise purchase order or execute contract 9 File documents in ECM 10 Update Contracts Register 11 Manage contract What we did was set about developing an Procurement intranet portal which took procurement and contractor management policies and translated them into an easy to use flow chart so that staff don’t have to wade through a myriad of documents to work out what they need to do to comply.

What is the value of the purchase? Step 1 – Determine Procurement Value The 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. What is the value of the purchase? <$2000 $2000-$10,000 $10,000-$200,000 >$200,000

Process Documentation Step 2 – Determine Procurement Process and Documents Required $10,000-$200,000 $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

Step 3 – Determine Risk Rating The 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 Category $10,000-$200,000 Step 4 – Select Procurement Category Each 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. What type of procurement is it? Goods Landscape materials Tools & equipment PPE & clothing Stationery Services Trades Waste collection Tree lopping Cleaning Works Footpath construction Stormwater Building works Professional Services Engineering consultants Business consultants >$200,000

Goods Step 5 – Select Appropriate Market Documents 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 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.

RFQ/RFT Number Allocation

Contracts Register

Document Management

Procurement Index

Contractor Management Performance Management The 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. 1 Determine the Residual Risk Rating 2 Determine contractor performance management requirements 3 Undertake contract management activities 4 File documents in ECM 5 Update Contracts Register

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