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

2. 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

3. 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

4. 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.

5. 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

6. 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

7. 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

8. 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

9. 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.

10. RFQ/RFT Number Allocation

11. Contracts Register

12. Document Management

13. Procurement Index

14. 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

15. Contractor Monitoring

16. 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