I hereby give notice that an ordinary meeting of the Strategic Procurement Committee will be held on:

 

Date:

Time:

Meeting Room:

Venue:

 

Wednesday, 3 April 2019

9.30am

Room 1, Level 26
135 Albert Street
Auckland

 

Komiti Mahi Āta Torotoro Rawa /

Strategic Procurement Committee

 

OPEN AGENDA

 

 

 

 

MEMBERSHIP

 

Chairperson

Deputy Mayor Cr Bill Cashmore

 

Deputy Chairperson

Cr Ross Clow

 

Members

Cr Dr Cathy Casey

 

 

Cr Linda Cooper, JP

 

 

Cr Alf Filipaina

 

 

Cr Penny Hulse

 

 

Cr Daniel Newman, JP

 

 

 

 

Ex-officio

Mayor Hon Phil Goff, CNZM, JP

 

 

(Quorum 4 members)

 

 

 

Michelle Judge

Governance Advisor

 

28 March 2019

 

Contact Telephone: +64211950262

Email: michelle.judge@aucklandcouncil.govt.nz

Website: www.aucklandcouncil.govt.nz

 

 



Terms of Reference

 

 

Responsibilities

 

The committee is established to assist the chief executive to undertake the management procedure of ensuring sound procurement processes are followed in relation to procurement of goods and services necessary to deliver on the work programme and operations outlined in the council’s adopted Annual plan.

 

It will ensure that reasonable purchasing procedures have been followed in awarding contracts and will provide an efficient mechanism for documenting the approvals for those contracts.

 

Within a framework where contracts are an operational matter delegated to the chief executive, this committee will consider all contracts beyond the chief executive’s financial delegations.  The chief executive may refer contracts within his financial delegations which are sensitive or may impact on the reputation of the council.

 

The chief executive has power to award contracts up to $20 million alone and the power to award contracts up to $22.5 million jointly with the mayor and Finance and Performance Committee chair.

 

The committee will have responsibility for:

 

·    awarding of contracts of $22.5 million or greater

·    awarding of contracts less than $22.5 million which are sensitive or may impact on the reputation of the council if the chief executive refers the matter to the committee

·    oversight over the procurement processes and procedures.

 

From time to time the committee may advise the chief executive and council on changes to the procurement and contracts probity procedures.

 

Powers

 

All powers necessary to perform the committee’s responsibilities.

 

Except:

 

(a)     powers that the Governing Body cannot delegate or has retained to itself (section 2)

(b)     where the committee’s responsibility is limited to making a recommendation only

(c)      the power to establish sub-committees

 


Exclusion of the public – who needs to leave the meeting

 

Members of the public

 

All members of the public must leave the meeting when the public are excluded unless a resolution is passed permitting a person to remain because their knowledge will assist the meeting.

 

Those who are not members of the public

 

General principles

 

·         Access to confidential information is managed on a “need to know” basis where access to the information is required in order for a person to perform their role.

·         Those who are not members of the meeting (see list below) must leave unless it is necessary for them to remain and hear the debate in order to perform their role.

·         Those who need to be present for one confidential item can remain only for that item and must leave the room for any other confidential items.

·         In any case of doubt, the ruling of the chairperson is final.

 

Members of the meeting

 

·         The members of the meeting remain (all Governing Body members if the meeting is a Governing Body meeting; all members of the committee if the meeting is a committee meeting).

·         However, standing orders require that a councillor who has a pecuniary conflict of interest leave the room.

·         All councillors have the right to attend any meeting of a committee and councillors who are not members of a committee may remain, subject to any limitations in standing orders.

 

Independent Māori Statutory Board

 

·         Members of the Independent Māori Statutory Board who are appointed members of the committee remain.

·         Independent Māori Statutory Board members and staff remain if this is necessary in order for them to perform their role.

 

Staff

 

·         All staff supporting the meeting (administrative, senior management) remain.

·         Other staff who need to because of their role may remain.

 

Local Board members

 

·         Local Board members who need to hear the matter being discussed in order to perform their role may remain.  This will usually be if the matter affects, or is relevant to, a particular Local Board area.

 

Council Controlled Organisations

 

·         Representatives of a Council Controlled Organisation can remain only if required to for discussion of a matter relevant to the Council Controlled Organisation.

 

 

 


Strategic Procurement Committee

03 April 2019

 

ITEM   TABLE OF CONTENTS                                                                                         PAGE

1          Apologies                                                                                                                        7

2          Declaration of Interest                                                                                                   7

3          Confirmation of Minutes                                                                                               7

4          Petitions                                                                                                                          7  

5          Public Input                                                                                                                    7

6          Local Board Input                                                                                                          7

7          Extraordinary Business                                                                                                7

8          Update on procurement of healthy waters physical works and technical services     9

9          Update on procurement of stormwater infrastructure to support the Auckland Housing Programme                                                                                                   15

10        Information Report - 3 April 2019                                                                               19  

11        Consideration of Extraordinary Items 

PUBLIC EXCLUDED

12        Procedural Motion to Exclude the Public                                                                 27

C1       CONFIDENTIAL: Strategy for procuring healthy waters physical works and technical services                                                                                                        27

C2       CONFIDENTIAL: Supplier recommendations for stormwater infrastructure to support the Auckland Housing Programme                                                             27

C3       CONFIDENTIAL: Property valuation services procurement plan                          27  

 


1          Apologies

 

An apology has been received from Cr P Hulse for absence, on council business.

 

 

2          Declaration of Interest

 

Members are reminded of the need to be vigilant to stand aside from decision making when a conflict arises between their role as a member and any private or other external interest they might have.

 

 

3          Confirmation of Minutes

 

That the Strategic Procurement Committee:

a)         confirm the ordinary minutes of its meeting, held on Wednesday, 6 March 2019, including the confidential section, as a true and correct record.

 

 

4          Petitions

 

At the close of the agenda no requests to present petitions had been received.

 

 

5          Public Input

 

Standing Order 7.7 provides for Public Input.  Applications to speak must be made to the Governance Advisor, in writing, no later than one (1) clear working day prior to the meeting and must include the subject matter.  The meeting Chairperson has the discretion to decline any application that does not meet the requirements of Standing Orders.  A maximum of thirty (30) minutes is allocated to the period for public input with five (5) minutes speaking time for each speaker.

 

At the close of the agenda no requests for public input had been received.

 

 

6          Local Board Input

 

Standing Order 6.2 provides for Local Board Input.  The Chairperson (or nominee of that Chairperson) is entitled to speak for up to five (5) minutes during this time.  The Chairperson of the Local Board (or nominee of that Chairperson) shall wherever practical, give one (1) day’s notice of their wish to speak.  The meeting Chairperson has the discretion to decline any application that does not meet the requirements of Standing Orders.

 

This right is in addition to the right under Standing Order 6.1 to speak to matters on the agenda.

 

At the close of the agenda no requests for local board input had been received.

 

 


 

 

7          Extraordinary Business

 

Section 46A(7) of the Local Government Official Information and Meetings Act 1987 (as amended) states:

 

“An item that is not on the agenda for a meeting may be dealt with at that meeting if-

 

(a)        The local  authority by resolution so decides; and

 

(b)        The presiding member explains at the meeting, at a time when it is open to the public,-

 

(i)         The reason why the item is not on the agenda; and

 

(ii)        The reason why the discussion of the item cannot be delayed until a subsequent meeting.”

 

Section 46A(7A) of the Local Government Official Information and Meetings Act 1987 (as amended) states:

 

“Where an item is not on the agenda for a meeting,-

 

(a)        That item may be discussed at that meeting if-

 

(i)         That item is a minor matter relating to the general business of the local authority; and

 

(ii)        the presiding member explains at the beginning of the meeting, at a time when it is open to the public, that the item will be discussed at the meeting; but

 

(b)        no resolution, decision or recommendation may be made in respect of that item except to refer that item to a subsequent meeting of the local authority for further discussion.”


Strategic Procurement Committee

03 April 2019

 

Update on procurement of healthy waters physical works and technical services

File No.: CP2019/03789

 

  

Te take mō te pūrongo

Purpose of the report

1.       To note an update on procurement of healthy waters physical works and technical services.

Whakarāpopototanga matua

Executive summary

2.       Auckland Council’s Healthy Waters department already delivers a large volume of physical works ($118 million in 2018/2019). This workload will increase significantly due to the water quality targeted rate (on average by $40 million per annum additional capex over the next ten years).

3.       Healthy Waters has established a number of supplier panels over the last three years to undertake stormwater physical works (such as drilling or pipelining) and associated technical services (such as design or resource consent preparation).

4.       Panels consist of a pre-approved group of suppliers who have expertise in delivering specific works and have signed a master services agreement (standardised contract) with the council. Works are procured from panel members through a streamlined process using standardised rates. This approach is more efficient for both the council and suppliers.

5.       Engagement with Healthy Waters and feedback from the supplier market has identified the need to refresh the existing Healthy Waters panel arrangements.

6.       More details regarding this refresh will be provided in the confidential section of the 3 April 2019 Strategic Procurement Committee meeting.

Ngā tūtohunga

Recommendations

That the Strategic Procurement Committee:

a)      note the information contained in this report on procurement of healthy waters physical works and technical services enables transparency on the topic due for discussion in the public excluded part of the meeting.

b)      note that the confidential report contains information that could prejudice the council’s position in negotiations with suppliers.

 

Horopaki

Context

Procurement of technical services

7.       Auckland Council’s Healthy Waters department requires a wide range of technical services in order to deliver stormwater projects and infrastructure upgrades. The services required include:

·    design and project management

·    asset data and asset management

·    lifecycle planning and management

·    emergency and urgent works response assistance

·    resource consent preparation

·    hydraulic modelling

·    advisory services on water quality, small waters and wastewater

·    dam specialists

·    surveying.

8.       In 2018, Healthy Waters spent approximately $24 million on technical services. These services were provided by approximately 110 suppliers.

9.       Table 1 below sets out the number of Healthy Waters contractual arrangements for technical services in 2018 at different value ranges. It shows that 93 per cent of technical services contracts procured by Healthy Waters in 2018 were worth less than $300,000.

Table 1: Number of Healthy Waters contracts procured in 2018 per value range

Contract values

Number of contracts

Percentage (%) of total contracts

Total spend

$0 to $100,000

171

74%

$6,847,800

$100,000 to $150,000

20

9%

$2,360,800

$150,000 to $300,000

24

10%

$4,941,200

$300,000+

17

7%

$9,556,600

Total

232

 

$23,706,400

10.     To manage the high volume of low value, low risk work procured by the department, Healthy Waters has established four panels for provision of technical services to streamline the procurement process. Master services agreements for these panels have been signed with approximately 32 suppliers for technical services.

11.     This approach is aligned with the council’s Professional Services - Category Strategy (resolution number TEN/2015/1). This states the council’s intention to procure low value or low risk professional services more efficiently through supplier panels.

12.     As there are four panels, a supplier may have more than one master services agreement with different teams within Heathy Waters. The same suppliers also provide services under individual standalone contracts with Healthy Waters.

Procurement of physical works

13.     Healthy Waters have five panels in place for delivering physical works. Some of these panels have a value threshold. This means that works which fall above or below a particular level (e.g., $1 million) cannot be awarded to panel members but must be procured on the open market through a standard procurement process.

14.     The physical work panels cover the specialisations listed below:

·      directional drilling (up to $1 million in contract value)

·      manholes and pipes (up to $1 million in contract value)

·      soakholes (up to $1 million)

·      streamworks (up to $1 million)

·      tunnelling (contract values of $1 million and over)

·      open trench (contract values of $1 million and over)

·      pond desilting (no value threshold)

·      pipelining (no value threshold).

15.     This approach is aligned with the council’s Horizontal Infrastructure Strategy 2017. This outlined the council’s preference for procuring low risk physical infrastructure works through supplier panels where possible. The approach to this procurement described in the confidential report is a sub-set of this strategy.

16.     Healthy Water’s panels include 25 suppliers for physical works in total, some of which sit within multiple panels with multiple specialisations.

17.     Table 2 below sets out the number and value of planned physical works projects to be tendered in the 2019 calendar year grouped by primary specialisation only (some works may have multiple specialisations).

Table 2. Number and value of planned physical works to be tendered in 2019 by value and specialisation

Value range

No. of projects

Estimated value

less or equal to $500,000

5

$1,231,000

Manhole and pipes

3

$994,100

Pipelining

1

$33,200

Streamworks

1

$203,700

>$500,000 to 1 million

9

$6,380,700

Manhole & Pipes

4

$3,145,400

Pipelining

2

$1,442,400

Streamworks

3

$1,793,000

>$1 million to 3 million

9

$14,097,600

Horizontal directional drilling

1

$2,362,100

Manhole and pipes

7

$10,267,400

Streamworks

1

$1,467,100

>$3 million to 5 million

6

$22,957,500

Manhole and pipes

2

$6,765,000

Streamworks

4

$16,192,500

>$5 million

11

$146,606,300

Open trench

3

$63,236,200

Manhole and pipes

3

$47,023,200

Pipelining

2

$18,279,600

Tunnelling

3

$18,067,300

Grand Total

40

$191,272,000

18.    As Table 2 shows, Healthy Waters is procuring a significant amount of physical works in these areas. Adopting an effective procurement strategy is important to enable the council to successfully deliver these projects and achieve all desired outcomes.

19.     In addition to the projects above, Healthy Waters carry out approximately 300 minor capital works projects using the panels identified in Table 2 above, with a total annual value of approximately $4 million. These unplanned works are primarily operational renewals. The majority of these works are worth less than $300,000.


 

20.     Having multiple panels for physical works can be confusing for staff, as often projects will require deliverables (for example, pipelining and streamworks) which span two or three panels. It also makes it more challenging for the council to monitor performance and drive improvements.

21.     In the current market conditions Healthy Waters can struggle to find the capability and capacity for some specialisations when required.

22.     The current panels will expire on 1 July 2019, which provides an opportunity for Auckland Council to refresh its approach to use of supplier panels for stormwater works.

Tātaritanga me ngā tohutohu

Analysis and advice

23.     Analysis and advice regarding changes to the procurement approach will be provided in the confidential section of the 3 April 2019 Strategic Procurement Committee meeting.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

24.     The council’s Procurement department is working across the council group to identify opportunities to increase process efficiency and consistent approaches to the market.

25.     A more detailed update on the council group impacts will be provided in the confidential section of the 3 April 2019 Strategic Procurement Committee meeting.

Ngā whakaaweawe ā-rohe me ngā tirohanga a te poari ā-rohe

Local impacts and local board views

26.     No consultation has been undertaken with local boards on the specific decisions recommended in this report. Consultation will be undertaken with local communities and local boards on all healthy waters physical works projects with significant local impacts.

Tauākī whakaaweawe Māori

Māori impact statement

27.     As part of the sustainable procurement strategy for technical services and physical works, staff will actively find opportunities to engage with Māori suppliers and increase their participation in panels.

28.     Key objectives are to ensure that suppliers employed through the panels:

·    contribute to upskilling or capacity building of Māori

·    incorporate Māori culture, values and perspectives into project design

·    engage effectively with mana whenua

·    support supplier diversity through their supplier chain, including through employment of Māori organisations as sub-contractors and as staff.

Ngā ritenga ā-pūtea

Financial implications

29.     Financial implications of procurement of healthy waters physical works and technical services will be provided in the confidential section of the 3 April 2019 Strategic Procurement Committee meeting.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

30.     Risks and mitigations relating to procurement of healthy waters physical works and technical services will be provided in the confidential section of the 3 April 2019 Strategic Procurement Committee meeting.

Ngā koringa ā-muri

Next steps

31.     Next steps relating to procurement of healthy waters physical works and technical services will be provided in the confidential section of the 3 April 2019 Strategic Procurement Committee meeting.

 

Ngā tāpirihanga

Attachments

There are no attachments for this report.     

Ngā kaihaina

Signatories

Authors

Dukessa Blackburn-Huettner - Lifecycles Manager

Vivian Dias - Strategic Procurement Specialist

Authorisers

Craig McIlroy - General Manager Healthy Waters

Barry Potter - Director Infrastructure and Environmental Services

Jazz Singh - General Manager Procurement

 


Strategic Procurement Committee

03 April 2019

 

Update on procurement of stormwater infrastructure to support the Auckland Housing Programme

File No.: CP2019/03859

 

  

Te take mō te pūrongo

Purpose of the report

1.       To provide an update on procurement of stormwater infrastructure works to support delivery of the Auckland Housing Programme.

Whakarāpopototanga matua

Executive summary

2.       HLC (2017) Limited is a subsidiary of the Housing New Zealand Corporation. HLC is responsible for increasing housing stock in the Auckland region over the next 10 to 15 years through the Auckland Housing Programme.

3.         The Auckland Housing Programme will treble the number of current dwellings being built in Auckland by providing more medium and high-density housing. One-third will be social housing, one-third priced as affordable housing and one-third sold at market prices.

4.       Through the programme HLC are currently delivering infrastructure to support approximately 22,500 new homes in the Mount Roskill, Māngere, Northcote and Oranga areas.

5.       Auckland Council’s Healthy Waters department has identified a significant number of public stormwater infrastructure works that will be required to support delivery of the Auckland Housing Programme. This stormwater infrastructure will also support future growth in adjacent areas.

6.       More detail regarding the procurement of this stormwater infrastructure will be provided in the confidential section of the 3 April 2019 Strategic Procurement Committee meeting.

 

Ngā tūtohunga

Recommendations

That the Strategic Procurement Committee:

a)      note the information contained in this report on procurement of stormwater infrastructure to support delivery of the Auckland Housing Programme enables transparency on the topic due for discussion in the public excluded part of the meeting.

b)      note that the confidential report contains information that could prejudice the council’s position in negotiations with suppliers.

 

Horopaki

Context

7.       Housing New Zealand is responsible for giving effect to central government’s social housing objectives, by providing housing for people with low income or no income.

8.       HLC is a wholly owned subsidiary of Housing New Zealand, tasked with increasing housing stock in the Auckland region over the next 10 to 15 years. This includes the development of high and medium density and mixed tenure housing as part of the Auckland Housing Programme.

9.       The Auckland Housing Programme is a joint initiative between Housing New Zealand and HLC to deliver housing developments in Auckland over the next 10 years.

10.     HLC are currently delivering infrastructure to support approximately 22,500 new homes in the Mount Roskill, Māngere, Northcote and Oranga areas. This rapid growth is expected to continue in future in other parts of Auckland.

11.     The council has a key role to play in the delivery of the Auckland Housing Programme. the council is involved with the programme both as a significant land owner, an asset manager and a regulator of development.

12.     The council supports HLC’s intended developments as these are aligned with our Development Strategy and the Auckland Plan 2050 direction to ‘accelerate the construction of homes that meet Aucklanders’ changing needs and preferences.’

Tātaritanga me ngā tohutohu

Analysis and advice

Provision of stormwater infrastructure

13.     Housing developments require appropriate stormwater infrastructure to be in place to service development.

14.     HLC has established an Alliance to design, consent and construct infrastructure to support housing development.  The Alliance is capable of designing, consenting and building infrastructure work at scale and pace in a collaborative and highly effective framework.

15.     Healthy Waters and HLC have entered into a Memorandum of Understanding to confirm how the parties will work together to ensure good quality stormwater outcomes are delivered through the Auckland Housing Programme.

Memorandum of Understanding between Healthy Waters and HLC

16.     Key terms of the Memorandum of Understanding include that the parties will work together:

·    to develop stormwater strategies and plans which benefit both parties;

·    to identify the most appropriate technical stormwater solutions to support achievement of both parties’ objectives

·    to deliver stormwater projects

·    to ensure any agreed outcomes do not result in statutory, regulatory, or commercial compliance issues for either party

·    to ensure that all stormwater contracts between the parties are being managed effectively

·    to identify, and resolve, issues and risks when they arise.

17.     This approach is well aligned to key strategic objectives for the council’s Healthy Waters department. These include supporting growth, proactive and genuine engagement with partners and delivering well planned, programmed and prioritised capital works.

Stormwater infrastructure work programme for HLC

18.     A detailed work programme for public stormwater infrastructure works to be delivered by HLC has not yet been developed. However, the Memorandum of Understanding foreshadows that the parties will work together on the following projects:

·    Tonar Pipeline: This is a large trunk stormwater pipe that will support the growth of the whole Northcote precinct.

·    Awataha Greenway. This is a placemaking linear greenway connecting the Northcote town centre to residential development areas. The project also provides a flood management function and stream daylighting opportunity.

·    Northcote local pipe improvements. HLC require local reticulation upgrades to enable developments. These local pipelines will also support other third-party development.

19.     A more detailed work programme will be agreed between the parties as HLC’s development plans for the Auckland region are confirmed.

20.     Options for procuring stormwater infrastructure works to support the Auckland Housing Programme will be discussed in the confidential section of the 3 April 2019 Strategic Procurement Committee meeting.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

21.     HLC and Auckland Council are liaising with other members of the council family such as Auckland Transport, Watercare and Panuku to identify opportunities to deliver multiple infrastructure requirements concurrently.

22.     HLC are also liaising with other members of the council family in relation to streamlining infrastructure development processes and other operational issues.

Ngā whakaaweawe ā-rohe me ngā tirohanga a te poari ā-rohe

Local impacts and local board views

23.     The Memorandum of Understanding between HLC and Healthy Waters will ensure that development of stormwater infrastructure is well integrated with other aspects of local housing developments. This will have various benefits for local communities including reducing the disruption from construction and time taken to complete housing developments.

24.     Local boards will be consulted on any significant Auckland Housing Programme developments in their area, including in relation to public stormwater infrastructure.

Tauākī whakaaweawe Māori

Māori impact statement

25.     Provision of affordable housing and construction of effective stormwater infrastructure are both issues that are of high significance to mana whenua.

26.     Appropriate engagement with mana whenua will be undertaken on any Auckland Housing Programme project where significant public stormwater infrastructure assets will be constructed. This engagement may be delivered by either Auckland Council or HLC, depending on the nature of the project.

27.     Healthy Waters will ensure that any stormwater assets constructed through these developments continue to be well maintained, contributing to water quality benefits desired by Māori.

Ngā ritenga ā-pūtea

Financial implications

28.     Financial implications of procuring stormwater infrastructure works to support the Auckland Housing Programme will be discussed in the confidential section of the 3 April 2019 Strategic Procurement Committee meeting.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

29.     Risks arising from procuring stormwater infrastructure works to support the Auckland Housing Programme will be discussed in the confidential section of the 3 April 2019 Strategic Procurement Committee meeting.

Ngā koringa ā-muri

Next steps

30.     Next steps related to procuring stormwater infrastructure works to support the Auckland Housing Programme will be discussed in the confidential section of the 3 April 2019 Strategic Procurement Committee meeting.

 

Ngā tāpirihanga

Attachments

There are no attachments for this report.    

Ngā kaihaina

Signatories

Authors

Carl Hewison – Principal, Construction Management

Shaun McAuley - Development and Negotiations Team Manager

Authorisers

Craig McIlroy – General Manager Healthy Waters

Barry Potter - Director Infrastructure and Environmental Services

Jazz Singh - General Manager Procurement

 


Strategic Procurement Committee

03 April 2019

 

Information Report - 3 April 2019

File No.: CP2018/25286

 

  

 

Te take mō te pūrongo

Purpose of the report

1.       To note progress on the forward work programme (Attachment A).

Whakarāpopototanga matua

Executive summary

2.       This is the regular information-only report which aims to provide public visibility of information circulated to committee members via memo or other means, where no decisions are required.

3.       Note that, unlike an agenda decision report, staff will not be present to answer questions about these items referred to in this summary.

 

Ngā tūtohunga

Recommendation/s

That the Strategic Procurement Committee:

a)      receive the information report – 3 April 2019.

 

 

Ngā tāpirihanga

Attachments

No.

Title

Page

a

Strategic Procurement Committee Forward Work Programme - 3 April 2019

21

     

Ngā kaihaina

Signatories

Authors

Michelle Judge - Governance Advisor

Authorisers

Jazz Singh - General Manager Procurement

 



Strategic Procurement Committee

03 April 2019

 

 

STRATEGIC PROCUREMENT COMMITTEE FORWARD WORK PROGRAMME FY2019

This committee deals with ensuring sound procurement processes are followed in order to deliver on the work programme and operations outlined in council’s adopted Annual Plan. It has responsibility for awarding contracts of $22.5 million or greater, awarding sensitive contracts and oversight of procurement strategies, processes and procedures.

 

Priorities for 2018 will be on initiatives which:

1.      Delivery on Annual Plan Outcomes

2.      Review delivery of Capital Projects

3.      Endorse Procurement Category Strategies

4.      Enhance Group Sourced Procurement

5.      Improve Procurement Maturity

The work of the Committee will:

·         Approve award of contracts and variations within the Committee’s delegations.

·         Monitor the delivery programme of major capital projects and recommend reporting to Finance and Performance Committee.

·         Endorse procurement strategies and process improvements related to the Committee’s responsibilities.

·         Monitor progress and make recommendations on group sourced procurement activities.

 

Priority #

Area of work

Reason for work

Strategic Procurement Committee role (decision or direction)

Budget / Funding

Expected timeframes

Highlight financial year quarter and state month if known

 

FY19

Apr-Jun

 

1.            Delivery on Annual Plan outcomes (Contracts to be awarded)

 

1.1

Healthy Waters panel refresh and strategy and professional services panel consolidation strategy

Approval of the Healthy Waters Physical Works & Technical Services Procurement Strategy

Decision: Receive update and approve the strategy

Report to be provided in Q4 2019

 

Q4

Apr 19

 

1.2

Stormwater infrastructure to support the Auckland Housing Programme

Approve the supplier recommendation for stormwater infrastructure to support the Auckland Housing Programme

Decision: Approve supplier recommendation

 

Q4

Apr 19

 

1.3

Picton Street stormwater project

To reduce stormwater runoff to the combined sewer network and overflow volumes from the Wynyard Wharf outfall

Decision: Approve supplier recommendation

$22.5M

Q4

May 2019

 

1.4

Daldy Street stormwater outfall project

Approve the supplier recommendation for the Daldy Street stormwater outfall project

Decision: update provided at the 6 March 2019 meeting Resolution number STR/2019/15Item 10

Supplier recommendation and approve award of contract

Next report to be provided in April 2019.

 

Q4

May 2019

 

1.5

America’s Cup 36 progress update

Provide an update on procurement of the infrastructure needed to host the 36th America’s Cup

Receive: progress update

Update received at the 6 March 2019 meeting Resolution number STR/2019/13 – Item 8

Next update will be considered in Q4 2019

$212m

Q4

 

1.6

Food scraps processing, caddies and food waste bins

Award contract for food waste process services, caddies and bins

Progress to date:

Decision taken to approve the procurement plan for food waste process services at 11 July 2018 meeting

Resolution number STR/2018/37 – Item C2

Next report to be provided in Q4 2019.

 

Q4

 

1.7

Waiheke Island Waste Services

Approve procurement plan for all Waste Services for Waiheke Island

Progress to date:

Decision: Approve procurement plan.

Decision: Approved contract extension at 11 July 2018 meeting.

Update provided at the 11 July 2018 meeting, Resolution number STR/2018/41 – Item 11 and Resolution number STR/2018/36 – item C1

Decision: Approve awarding of contract.

Next report will be considered in Q1 2020 (September).

 

Q1

2020

 

2.            Review delivery of Capital Projects

2.1

Capital Project Delivery

Elected member oversight of progress of Major Projects, including update on the strategy for procurement of city centre development programme and pipeline of forward works.

Receive: no decision required

Progress to date:

Update received at 6 September 2017 meeting Resolution number STR/2017/37 - Item C2.

Update received at 13 December 2017 meeting Resolution number STR/2017/61 - Item C6.

Update received at 7 March 2018 meeting Resolution number STR/2018/11- Item C2.

Update received at 11 June 2018 meeting Resolution number STR/2018/32 – Item C1

Update received at 5 September 2018 meeting Resolution number STR/2018/54 – Item C1

Update received at 7 November 2018 meeting Resolution number STR/2018/80 – Item C2

Next update will be considered in February 2019.

 

Q4

Jun 19

2.2

Forward Work Programme (Pipeline)

Elected member oversight of pipeline of activity for capital works delivery forward work programme

Receive: no decision required

Progress to date:

Update received at 11 June 2018 meeting – Resolution number STR/2018/25 – Item 10

Update received at 3 October 2018 meeting – Resolution number STR/2018/61 – Item 9

Next update to be provided in Q4 2019

 

Q4

2.3

Westgate multipurpose facility (integrated library and community centre) construction

Elected member oversight of progress of Westgate multipurpose facility

Receive: no decision required

Progress to date:

Update received at the 7 March 2018 meeting Resolution number STR/2018/11- Item C2.

Update received at 11 June 2018 meeting Resolution number STR/2018/34- Item C3

Update received at 8 August 2018 meeting Resolution number STR/2018/38 – Item C1

Update received at 5 September 2018 meeting Resolution number STR/2018/56 – Item C3

Update received at 3 October 2018 meeting Resolution number STR/2018/66 – Item C1

Update received at 7 November 2018 meeting Resolution number STR/2018/81 – Item C3

Update received at 12 December 2018 meeting Resolution number STR/2018/91 – Item C4

Next update to be provided in Q3 2019

 

Q4

3.            Endorse Procurement Category Strategies

 

See completed section below.

 

 


4.            Enhance Group Sourced Procurement

 

4.1

Fleet Optimisation Update

Keep Committee informed on progress of Fleet changes

Progress to date:

Update received at the 7 March 2018 meeting - Resolution number STR/2018/5Item 10.

Update received at the 11 July 2018 meeting – Resolution number STR/2018/39Item 9.

Update received at the 7 November 2018 meeting – Resolution number STR/2018/75

Decision: approve business plan

 

Q4

 

4.2

Group Sourced Procurement update

Keep Committee informed on progress against Group Sourced Procurement objectives

Progress to date:

Update provided at the October 2017 meeting Resolution number STR/2017/4Item 11

Update received at the meeting on 7 March 2018 Resolution number STR/2018/4Item 9

Update received at the meeting on 8 August 2018 Resolution number STR/2018/42 – Item 9

Update received at the meeting on 7 November 2018 Resolution number STR/2018/76 – Item 13

Receive: no decision required

 

Q4

 

5.            Improve Procurement Maturity

 

See completed section below.

 

 

 


6.            Other

 

6.1

Valuation

To consider rating valuations

Decision: approval of proposed commercial opportunity.

 

Q4

Apr 19

 

6.2

Review of Contract performance

Update the Committee on the performance of suppliers against key performance metrics under the Full Facilities Maintenance contracts

Progress to date:

Update received at the 2 May 2018 meeting Resolution number STR/2018/21– Item C2

Update received at the 7 November 2018 meeting Resolution number STR/2018/82 – Item C4

Update: No decision required. Next update to be provided at April 2019 meeting

 

Q4

 

6.3

Full Facility agreement transfer of streetscape and waste solutions services

To seek approval for the variation of the current Full Facility agreements to transfer the streetscape services from Auckland Transport and Waste Solutions to Community Facilities.

Progress to date:

Decision: approval of transfer.

Update received at 12 December 2018 meeting Resolution number STR/2018/89 – Item C2

Next update to be provided in Q4 2019.

 

Q4

 

 

Completed

1.            Delivery on Annual Plan outcomes (Contracts awarded)

 

Priority #

Area of work

Reason for work

Strategic Procurement Committee role (decision or direction)

1.1

Refuse Collections

Change from collection of Bags to Bins for Waitakere and North Shore.  Part of aligning refuse collection services across the region

Decision: Agree to extend current contract with Veolia for a further 2 years –  6 September 2017 – Resolution STR/2017/36 – Item C1

1.2

Electricity Procurement

Approve Procurement Plan for Electricity procurement

Update provided at the October 2017 meeting Resolution number STR/2017/47 - Item C3

1.3

External Legal Services

Council has gone out to market for external legal services. Additional scope may mean the contract value over the term of the engagement will exceed $22.5m

Decision: Agree to contract awards for 2 years. 13 December 2017 meeting, Resolution Number STR/2017/57 – Item C2

1.4

Graffiti Eradication and Enforcement Services

Approve procurement plan for graffiti Eradication and Enforcement Services

Decision: agree procurement plan- 13 December 2017 meeting, Resolution Number STR/2017/58 – Item C3

Decision: approve procurement plan at 2 May 2018 meeting, Resolution number STR/2018/18Item 10 and Resolution number STR/2018/20 – item C1

1.5

Electricity supply SRR

Approve the supplier recommendation report for electricity supply services

Decision: agree SRR- 13 December 2017 meeting, Resolution Number STR/2017/56 – Item C1

1.6

Overflow Planning Services

Approve the procurement plan for overflow planning services to process resource consents.

Decision taken to approve the procurement plan at 4 April 2018 meeting. Resolution number STR/2018/15Item 10 and Resolution number STR/2018/13 – item C2

1.7

External Recruitment Supplier

Current All of Government (AoG) contract expires October 2017. New AoG contracts have been negotiated by MBIE. Council will enter into AoG agreements for six months and assess whether they meet our needs.

Decision taken to extend AoG agreements at 4 April 2018 meeting, Resolution number STR/2018/14Item 9 and Resolution number STR/2018/12 – item C1

1.8

Building Consents Regional Overflow Model

Approve the supplier recommendation for the Building Consents Regional Overflow Model

Decision: procurement plan agreed - 13 December 2017 meeting, Resolution number STR/2017/60 – Item C5

Decision: Supplier recommendation agreed at 11 June 2018 meeting, Resolution number STR/2018/27 Item 12 and Resolution number STR/2018/33 – Item C2

1.9

Waiheke Island Waste Services Contracts

Approve a contract extension for Waiheke Island waste services contract

Update provided at the 11 July 2018 meeting, Resolution number STR/2018/41Item 11 and Resolution number STR/2018/36 – item C1

Decision: Approved contract extension at 11 July 2018 meeting.

1.10

Ports of Auckland stormwater project

Approve awarding of contract to successful supplier for Ports of Auckland stormwater project

Decision: Approve awarding of contract

Resolution number STR/2018/79 – Item C1

Decision: approved awarding of contract at the 7 November 2018 meeting

1.11

City Centre Development

Provide an update on the strategy for procurement of city centre development programme and pipeline of forward works

Updates will now be provided as part of the update on Capital Project Delivery.

1.12

Ports of Auckland stormwater project

Approve awarding of contract to successful supplier for Ports of Auckland stormwater project

Decision: Approve awarding of contract

Decision taken to approve awarding of contract at the 7 November 2018 meeting

Resolution number STR/2018/79 – Item C1

Next update to be provided in April 2019 through the $5 million project report.

1.13

St Marys Bay Outfall construction contract

St Marys Bay and Masefield Beach improvement project

Decision: Supplier recommendations for the first phase of construction

Report provided to the 6 March 2019 meeting Resolution number STR/2019/14 - Item 9

1.14

Procurement plan for waste collection services

Procurement plan for waste collection services

Decision: To recommend the waste collections procurement plan to Finance and Performance for approval, incorporating feedback from the Value for Money review on the future of waste services

Update provided to the 6 March 2019 meeting Resolution number STR/2019/16 - Item 11

1.16

Graffiti Eradication and Enforcement Services

Graffiti Contracts

Update provided at the 6 March 2019 meeting Resolution number STR/2019/19 – Item C1

Receive update on graffiti contracts

3.            Endorse Procurement Category Strategies

3.1

Waste Solutions Procurement Strategy

Create plan for go to market exercise for all waste collection (including food waste) and disposal activity prior to 2020

Update provided at the October 2017 meeting Resolution number STR/2017/40 - Item 9

Decision: Confirm strategy/challenge

3.2

Organics (food waste) Processing caddies and food waste bins

Create plan for go to market exercise for all aspects of the planned Organic (food waste) collection and Processing Service together with the caddies and bins required for collection.

Update provided at the October 2017 meeting Resolution number STR/2017/40- Item 9 and Resolution number STR/2017/45 – Item C1

Update received at 11 July 2018 meeting Resolution number STR/2018/40 - Item 10 and Resolution number STR/2018/43 – Item C1

3.3

ICT hardware

Create a plan for engaging the market to purchase ICT Hardware.

Update received at 7 March 2018 meeting – Resolution number STR/2018/7Item 12 and Resolution number STR/2018/10 – Item C1

Receive: No decision required

3.4

ICT Software

Create a plan for engaging the market to purchase Software.

Update received at 11 June 2018 meeting – Resolution number STR/2018/24 – Item 9

Decision: agree to endorse the Software Procurement Category Strategy

3.5

Vertical Construction Category Strategy

Development of the overall strategy for vertical construction and building

Update received at 11 June 2018 meeting – Resolution number STR/2018/29Item 14 and Resolution number STR/2018/34 – Item C4

Decision: endorse the vertical construction procurement category strategy

3.6

ICT Technology Services

Create a plan for engaging the market to purchase Technology Services – Cloud, Data Centre Services, Print, Network.

Decision: update received at 12 December 2018 meeting – Resolution number STR/2018/91 – Item 10

3.7

Professional Technical Services

Implementation of professional technical services category

Receive: No decision required – update from approved strategy by T&P 2016

Update received at 3 October Strategic Procurement Committee meeting – Resolution number STR/2018/63 – Item 11

3.8

Professional Services

Create a plan to go to market and manage professional services across Auckland Council.

Receive: No decision required.


4.            Enhance Group Sourced Procurement

4.1

Sustainable Procurement Framework

Give effect to principles to be agreed in Group Procurement Policy

Update provided at the December 2017 meeting. Resolution number STR/2017/53 Item 9


5.            Improve Procurement Maturity

5.1

Ariba update

Update Committee on implementation of procurement enabling technology

Update provided at the October 2017 meeting Resolution number STR/2017/4 – Item 11


6.            Other

6.1

Update on Waste Solutions contracts

Update the Committee on the current state of all waste contracts prior to the preparation of the Waste Solutions Procurement Strategy

Update provided at the October 2017 meeting Resolution number STR/2017/41- Item 10 and Resolution number STR/2017/46 – item C2

6.2

Review of Contract performance

Update the Committee on the performance of suppliers against key performance metrics under the Full Facilities Maintenance contracts

Receive: No decision required. Update provided at May 2018 meeting, Resolution number STR/2018/21 – item C2

6.3

Full Facility agreement transfer of streetscape and waste solutions services

To seek approval for the variation of the current Full Facility agreements to transfer the streetscape services from Auckland Transport and Waste Solutions to Community Facilities.

Decision: approval of transfer.

Update received at 12 December 2018 meeting Resolution number STR/2018/89 – Item C2

6.4

ICT Technology Services

Seek approval for the transfer of existing datacentre service to a new multi-cloud environment.

Decision: approval of transfer.

Update received at 12 December 2018 meeting Resolution number STR/2018/90 – Item C3

 

 

 

     

 


Strategic Procurement Committee

03 April 2019

 

Exclusion of the Public: Local Government Official Information and Meetings Act 1987

That the Strategic Procurement Committee

a)      exclude the public from the following part(s) of the proceedings of this meeting.

The general subject of each matter to be considered while the public is excluded, the reason for passing this resolution in relation to each matter, and the specific grounds under section 48(1) of the Local Government Official Information and Meetings Act 1987 for the passing of this resolution follows.

This resolution is made in reliance on section 48(1)(a) of the Local Government Official Information and Meetings Act 1987 and the particular interest or interests protected by section 6 or section 7 of that Act which would be prejudiced by the holding of the whole or relevant part of the proceedings of the meeting in public, as follows:

 

C1       CONFIDENTIAL: Strategy for procuring healthy waters physical works and technical services

Reason for passing this resolution in relation to each matter

Particular interest(s) protected (where applicable)

Ground(s) under section 48(1) for the passing of this resolution

The public conduct of the part of the meeting would be likely to result in the disclosure of information for which good reason for withholding exists under section 7.

s7(2)(i) - The withholding of the information is necessary to enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations).

In particular, the report contains commercially sensitive information that might prejudice's council position in negotiations with suppliers.

s48(1)(a)

The public conduct of the part of the meeting would be likely to result in the disclosure of information for which good reason for withholding exists under section 7.

 

 

C2       CONFIDENTIAL: Supplier recommendations for stormwater infrastructure to support the Auckland Housing Programme

Reason for passing this resolution in relation to each matter

Particular interest(s) protected (where applicable)

Ground(s) under section 48(1) for the passing of this resolution

The public conduct of the part of the meeting would be likely to result in the disclosure of information for which good reason for withholding exists under section 7.

s7(2)(i) - The withholding of the information is necessary to enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations).

In particular, the report contains commercially sensitive information that could prejudice council's position in negotiations with infrastructure suppliers.

s48(1)(a)

The public conduct of the part of the meeting would be likely to result in the disclosure of information for which good reason for withholding exists under section 7.

 

 

 

 

 

 

 

C3       CONFIDENTIAL: Property valuation services procurement plan

Reason for passing this resolution in relation to each matter

Particular interest(s) protected (where applicable)

Ground(s) under section 48(1) for the passing of this resolution

The public conduct of the part of the meeting would be likely to result in the disclosure of information for which good reason for withholding exists under section 7.

s7(2)(b)(ii) - The withholding of the information is necessary to protect information where the making available of the information would be likely unreasonably to prejudice the commercial position of the person who supplied or who is the subject of the information.

In particular, the report contains commercially sensitive information that could prejudice the council's position in negotiations with third parties and suppliers.

s7(2)(i) - The withholding of the information is necessary to enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations).

In particular, the report contains commercially sensitive information that could prejudice the council's position in negotiations with third parties and suppliers.

s48(1)(a)

The public conduct of the part of the meeting would be likely to result in the disclosure of information for which good reason for withholding exists under section 7.