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

 

Date:

Time:

Meeting Room:

Venue:

 

Tuesday, 28 September 2021

10.00am

This meeting will be held remotely and a recording of the meeting will be available on: https://www.aucklandcouncil.govt.nz/about-auckland-council/how-auckland-council-works/meetings-council-bodies/Pages/webcasts-council-meetings.aspx

 

Kōmiti Mahi Āta Torotoro Rawa /

Strategic Procurement Committee

 

OPEN AGENDA

 

 

 

 

MEMBERSHIP

 

Chairperson

Cr Greg Sayers

 

Deputy Chairperson

Cr John Watson

 

Members

Cr Dr Cathy Casey

 

 

Deputy Mayor Cr Bill Cashmore

 

 

Cr Linda Cooper, JP

 

 

Cr Alf Filipaina

 

 

Cr Tracy Mulholland

 

 

IMSB Member Karen Wilson

 

Ex-officio

Mayor Hon Phil Goff, CNZM, JP

 

 

(Quorum 4 members)

 

 

 

Michelle Judge

Kaitohutohu Mana Whakahaere / Governance Advisor

 

23 September 2021

 

Contact Telephone: 0211950262

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 chairperson.

 

The committee has 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 the 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)        power to establish sub-committees.

 

Code of conduct

 

For information relating to Auckland Council’s elected members code of conduct, please refer to this link on the Auckland Council website - https://www.aucklandcouncil.govt.nz/about-auckland-council/how-auckland-council-works/elected-members-remuneration-declarations-interest/Pages/elected-members-code-conduct.aspx

 

 


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

28 September 2021

 

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          Summary of Strategic Procurement Committee information memoranda and briefings (including the forward work programme) - 28 September 2021                                                    9

9          Procurement plan for the Materials Recovery Facility services                                                  19

10        Renewal of the All of Government External Recruitments Services supply panel agreement                                                            25

11        Procurement plan for Auckland Council's SAP Software license and support agreement        29

12        Consideration of Extraordinary Items

PUBLIC EXCLUDED

13        Procedural Motion to Exclude the Public                           33

C1       CONFIDENTIAL: Procurement plan for the Materials Recovery Facility services                33

C2       CONFIDENTIAL: Renewal of the All of Government External Recruitments Services supply panel agreement                                    33

C3       CONFIDENTIAL: Procurement plan for Auckland Council's SAP Software license and support agreement                                             34


1          Apologies

 

Apologies from Cr L Cooper and Mayor P Goff have been received.

 

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 Tuesday, 7 September 2021, 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

28 September 2021

 

Summary of Strategic Procurement Committee information memoranda and briefings (including the forward work programme) - 28 September 2021

File No.: CP2021/13790

 

  

 

Te take mō te pūrongo

Purpose of the report

1.       To note the progress on the forward work programme appended as Attachment A.

Whakarāpopototanga matua

Executive summary

2.       This is a regular information-only report which aims to provide greater visibility of information circulated to Strategic Procurement Committee members via memoranda/briefings or other means, where no decisions are required.

3.       Note that, unlike an agenda report, staff will not be present to answer questions about the items referred to in this summary.  Strategic Procurement Committee members should direct any questions to the authors.

 

 

Ngā tūtohunga

Recommendation/s

That the Strategic Procurement Committee:

a)      note the progress on the forward work programme appended as Attachment A of the agenda report.

 

Ngā tāpirihanga

Attachments

No.

Title

Page

a

Forward Work Programme

11

      

Ngā kaihaina

Signatories

Author

Michelle Judge - Kaitohutohu Mana Whakahaere / Governance Advisor

Authoriser

Jazz Singh - General Manager Procurement

 



Strategic Procurement Committee

28 September 2021

 

 

+Komiti Mahi Āta Torotoro Rawa / Strategic Procurement Committee
Forward Work Programme 2021

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.

The full terms of reference can be found here: Governing Body Terms of Reference

 

 

Area of work and Lead Department

Reason for work

Committee role

(decision and/or direction)

Expected timeframes

Highlight the month(s) this is expected to come to committee in 2021

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

7 Sep

28 Sep

Nov

Dec

Materials Recycling Facility Operator Contract

Waste Solutions

To procure a materials recycling facility operator.

The current contracts expire on 30 June 2024.

Decision: Approval of procurement plan for the new material recycling facility operator.

A report will be provided in September 2021.

 

 

 

 

 

 

 

 

 

 

 

 

Electricity Network Resilience Tree and Vegetation Maintenance

Community Facilities

To procure tree pruning services on trees covering areas around powerlines within the Auckland Council region.

Progress to date: Procurement plan approved to approach the market for the ongoing maintenance of tree pruning on 8 June 2021 (Resolution number STR/2021/20). 

 

Decision: Approval of the supplier recommendations.

A report will be provided in September 2021.

 

 

 

 

 

 

 

 

 

 

 

 

SAP Maintenance Agreement

Information Communication Technology

The current SAP maintenance agreement is due to expire at the end of December 2021. Procurement plan to approve direct negotiation with SAP.

Decision: Approval of procurement plan

A report will be provided in September 2021.

 

 

 

 

 

 

 

 

 

 

 

 

All of Government (AOG) Recruitment Panel

People and Capability

Existing approved budget for spend against AOG Recruitment panel is running out. Further budget requires approval.

Decision: Approval of contract variation.

A report will be provided in September 2021.

 

 

 

 

 

 

 

 

 

 

 

 

Rates Valuations

Rates, Valuations and Data Management

Auckland Council currently operates under a dual valuation service provider model for valuations.

The overall objective of the Request for Proposal (RFP) is to streamline the valuations function to:

·    reduce operating costs

·    increase the quality of data, enabling future opportunities for commercialisation of valuation products

increase the quality and consistency of data to ensure we can meet our legislative requirements.

Progress to date: Procurement plan approved for rates valuations RFP on 10 August 2021 (Resolution number STR/2021/31).  

 

Decision: Approval of supplier recommendation report.

A report will be provided in November 2021.

 

 

 

 

 

 

 

 

 

 

 

 

Building Consents overflow services variation approval for additional years

Building Consents - Regulatory services

With the increased demand in consenting services, a review is done across the various current suppliers’ services. To get service certainty and retention of key personnel, there is a need for providing certainty to the market with longer duration contracts and hence a variation approval is required for the current contracts to enable this.

Decision: Approval of variation to increase the term of contract.

A report will be provided in November 2021.

 

 

 

 

 

 

 

 

 

 

 

 

Te Whau pathway shovel-ready funding project

Community Facilities

To provide an update on the progress of the project and amendments in scope if any from the previously approved procurement plan.

Environmental outcomes and better transport connectivity through walkways and pathways. Faster project delivery and construction to support multiple community outcomes using the shovel-ready funding.

Progress to date: Procurement plan approved to approach market for the main project works covered by shovel-ready funding.

Authority delegated to council’s chief executive to execute the procurement plan, approve the supplier recommendation report, award of contract, and approval of variations on 13 October 2020 (Resolution number STR/2020/20).

 

Update to committee with any changes in project scope.

A report will be provided in November 2021.

 

 

 

 

 

 

 

 

 

 

 

 

Corban Reserve Supplier recommendation

Healthy Waters

To procure a contractor to deliver the project to divert stormwater flows from the 78 hectare Waitaro Stream catchment away from the existing culvert under the closed landfill site at Corbans Reserve by installing a new pipeline discharging to Opanuku Stream. The existing culvert under Corban Reserve is currently a high-risk asset due to the infiltration of landfill gas and leachate.

Progress to date:  Procurement plan approved to approach the market for a tender to deliver Corban Reserve tunnelling project on 13 April 2021 (Resolution number STR/2021/12).

 

Decision: Approval of the supplier recommendation report.

A report will be provided in November 2021.

Note: the tender is currently with the market. Subject to time needed for negotiation, this report may be provided in December 2021.

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

Completed

Lead Department

Area of work

Committee Role

(decision and/or direction)

Decision

Community Facilities

Full Facilities contract performance update

To update the Strategic Procurement Committee on suppliers’ performance under Community Facilities’ arboriculture services, ecological services, and full facilities maintenance contracts.

To receive the Community Facilities full facilities contracts performance update for Financial Year 19/20.

The update was received in December 2020.

(Resolution number STR/2020/26)

Community Facilities

Te Whau pathway shovel-ready funding project

Environmental outcomes and better transport connectivity through walkways and pathways. Faster project delivery and construction to support multiple community outcomes using the shovel-ready funding.

Approval of procurement plan to approach market for the main project works covered by the shovel-ready funding.

Procurement plan approved.

Authority delegated to council’s chief executive to execute the procurement plan.

Authority delegated to council’s chief executive to approve the supplier recommendation report, award of contract and approval of variations.

(Resolution number STR/202019)

Environmental Services

Biodiversity protection services delivered through the Natural Environment Targeted Rate – Category Strategy

This procurement category strategy will support effective implementation of the council’s key services related to the natural environment targeted rate work programmes.

Endorsement of procurement category strategy for biosecurity protection services delivered through the Natural Environment Targeted Rate.

The Category Strategy was endorsed.

(Resolution number STR/2020/4)

Environmental Services

Update on suppliers for the Retrofit Your Home panels

To provide an update on the suppliers who were appointed to the Retrofit Your Home panels.

Establishment of supplier panels.

The establishment of the panels was approved.

(Resolution number STR/2019/66)

Healthy Waters

Healthy Waters Maintenance contracts

To provide effective operations and maintenance of the regional stormwater network. This contributes to managing and improving the health of Auckland’s harbours and waterways and responding to flooding events. This is council’s responsibility under the Regional Stormwater Network Discharge Consent.

Award contracts to recommended suppliers for Healthy Waters operations and maintenance contracts, and the regional maintenance of catchpits and treatment devices.

Procurement plan for operations and maintenance services for: the southern area of the Auckland region; regional maintenance of catchpits; regional maintenance of treatment devices.

Overall strategy approved for procuring stormwater operations and maintenance services for the northern and central areas.

(Resolution number STR/2019/67)

 

Emergency Committee approved the awarding of the southern and regional maintenance contracts.

(Resolution number EME/2020/14)

 

Procurement plan approved for the operations and maintenance contract for the northern and central area of the Auckland region.

(Resolution number STR/2020/10)

 

Supplier recommendation report and award of contract approved for northern and central area of the Auckland region.

(Resolution number STR/2021/11)

Healthy Waters

Update on suppliers for physical works and technical services panels

To provide an update on the suppliers who were appointed to the Healthy Waters technical services and physical work panels.

Establishment of supplier panels.

The establishment of the panels was approved.

(Resolution number STR/2019/25)

Healthy Waters

Healthy Waters Programme Delivery model

With the growing requirements for Healthy Waters asset investments and increased capex budget to be delivered in future financial years, a more efficient and collaborative delivery model is required. Heathy Waters department is pursuing a sustainable and efficient delivery of the programme of capex projects for the next six years and beyond.

Approval of procurement plan and strategy to approach the market for Healthy Waters alternate programme delivery model.

Procurement plan and strategy to approach the market approved.

(Resolution number STR/2021/35)

Legal and Risk

External Legal Services

To procure external legal services. Current contracts expired in December 2020.

Award contracts to recommended suppliers for external legal services.

Extension of current legal contract for legal services approved.

(Resolution number STR/2020/24)

 

Procurement plan for new external legal contract/services approved.

(Resolution number STR/2021/5)

 

Supplier recommendations approved.

(Resolution number STR/2021/21)

Procurement

SAP Licensing Renegotiation

To re-negotiate current SAP agreement to better suit council’s current and future needs, and to better align with SAP’s commercial and technical roadmap.

Approval of contract variation for support and maintenance services for a 5-year period until December 2025.

A report was provided in December 2020.

(Resolution number STR/2020/25)

Procurement

Group Procurement Policy

To address recommendation 64 of the CCO Review which called for a revision of the council’s Group Procurement Policy to better mandate Group Procurement activity.

Noting revision of Group Procurement Policy.

Policy approved at the Finance and Performance Committee meeting.

(Resolution number FIN/2021/61)

Waste solutions

Award of Waiheke waste services

New waste services for Waiheke were procured in 2019 to deliver on the objectives on the Waste Management and Minimisation Plan 2018 and the Tīkapa Moana Hauraki Gulf Islands Waste Plan which is an appendix to the overall waste plan. Implementing these plans is a legislative requirement under the Waste Minimisation Act 2008.

Approval of procurement plan to approach the market for the new waste services for Waiheke Island.

Procurement plan approved for Waiheke waste services.

(Resolution number STR/2019/3)

 

Supplier recommendations for Waiheke waste services approved.

(Resolution number STR/2019/69)

 

A memo was sent in November 2019 to provide an update on the award of Waiheke waste services.

Waste Solutions

Inorganic services contract

To procure an inorganics service, which is an action in the Waste Management and Minimisation Plan 2018: Working together for Zero Waste. Implementing the waste plan is a legislative requirement under the Waste Minimisation Act 2008.

Approval of procurement plan and supplier recommendation report for new inorganic contract/services commencing February 2022.

Procurement plan for new inorganic contract/services commencing February 2022 approved.

(Resolution number STR/2020/19)

 

Supplier recommendation report approved.

(Resolution number STR/2021/19)

Waste Solutions

Extension to inorganic services contracts

To allow time for a review of the current inorganics service, which is an action in the Waste Management and Minimisation Plan 2018: Working together for Zero Waste. Implementing the waste plan is a legislative requirement under the Waste Minimisation Act 2008.

To approve a one-year extension/variation with incumbent suppliers for the inorganic collection and inorganic processing contracts.

Procurement plan approved for the inorganic collection service, and the six-month extension of the current inorganic collection contracts.

(Resolution number STR/2020/18)

 

 


 

 

 

 

 

 

 

 

 

 

Komiti Mahi Āta Torotoro Rawa / Strategic Procurement Committee
Forward Work Programme 2022

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.

The full terms of reference can be found here: Governing Body Terms of Reference

 

 

Area of work and Lead Department

Reason for work

Committee role

(decision and/or direction)

Expected timeframes

Highlight the month(s) this is expected to come to committee in 2022

Jan

Feb

Mar

Apr

May

Jun

Jul

Aug

Sep

Oct

Nov

Dec

Microsoft Licensing

Information Communication Technology

The Microsoft licensing reseller agreement expires in September 2022, and Auckland Council plans to approach the market again with Auckland Transport and Watercare.

Decision: Approval of procurement plan.

A report will be provided in February 2022.

 

Decision: Approval of supplier recommendation report.

A report will be provided in April 2022.

 

 

 

 

 

 

 

 

 

 

 

 

 


Strategic Procurement Committee

28 September 2021

 

Procurement plan for the Materials Recovery Facility services

File No.: CP2021/12643

 

  

 

Te take mō te pūrongo

Purpose of the report

1.       To provide an update on the procurement plan for the Materials Recovery Facility services.

Whakarāpopototanga matua

Executive summary

2.       The Materials Recovery Facility in Onehunga is where all of Auckland Council’s kerbside recycling is sorted and on-sold to end-markets and users.

3.       Visy Recycling (NZ) Ltd is the council’s existing contractor who owns and operates the Materials Recovery Facility (MRF) in Onehunga, under a build-own-operate-transfer contract.

4.       The contract began in 2008 and expires on 30 June 2024. At the end of the contract the MRF asset will transfer to the council, along with the responsibility to ensure Auckland’s household kerbside recyclable materials can continue to be sorted and on-sold to end-markets for beneficial use.

5.       This procurement is for an operator for the MRF to ensure the continuity of its operations beyond 30 June 2024 to maximise the recovery of household kerbside recyclable materials, to reduce waste to landfill, and create circular economies.

6.       The procurement for the ongoing MRF operation presents an opportunity to reflect the changing nature of the recycling industry and end-markets, anticipated shifts in waste policy, as well as achieve stronger alignment with council strategy.

7.       More detail regarding the procurement plan for this project will be provided in the confidential section of the Strategic Procurement Committee meeting agenda for 28 September 2021.

 

Ngā tūtohunga

Recommendations

That the Strategic Procurement Committee:

a)      note the information contained in this report, on the Materials Recovery Facility 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

About the Materials Recovery Facility

8.       Visy Recycling (NZ) Ltd (‘Visy’) became Auckland Council’s joint venture partner in 2008 to establish a Materials Recovery Facility (MRF) in Onehunga under a ‘build, own, operate and transfer’ contract.

9.       The build-own-operate-transfer contract expires on 30 June 2024 at which time the MRF asset will transfer to the council’s ownership at no further cost.

10.     The facility processes co-mingled recyclable materials collected from households and businesses across Auckland under the council’s separate kerbside collection contracts.

11.     Collected materials are delivered to the MRF in Onehunga where they are sorted into different material types and then sold and transported to end-markets for beneficial use.

12.     The MRF processed 131,000 tonnes during the 2019/2020 financial year. Approximately 3 per cent of the material processed at the MRF  comes from Visy’s own customers. For example, material collected from commercial businesses in Auckland and from other New Zealand councils.

13.     Visy is responsible for securing and transporting all sorted recyclable materials to domestic or international commodity markets. All glass is processed in New Zealand, as well as some plastic materials. Metals and paper/cardboard materials are typically sent to off-shore markets.

14.     Approximately 12 per cent of material received at the facility is not recyclable (contamination) and requires disposal to landfill.

Continued operation of the Materials Recovery Facility

15.     To ensure the continuity of Auckland’s kerbside recycling collection and to maximise resource recovery opportunities, the council requires the MRF to continue to operate from 1 July 2024.

16.     The continued operation of the MRF operation supports the vision of Auckland’s Te Mahere Whakahaere me te Whakaiti Tukunga Para i Tāmaki Makaurau – Auckland Waste Management and Minimisation Plan 2018, “Auckland aspires to be zero waste by 2040, taking care of people and the environment, and turning waste into resources.” It also aligns with priorities of Te Tāruke-ā-Tāwhiri: Auckland's Climate Plan, including Action E6, “manage our resources to deliver a zero waste, circular economy”.

17.     The MRF operation needs to be adaptable to future changes. Shifts that the Materials Recovery Facility will likely face over the coming contract term include:

·        advancements in recycling infrastructure and technology

·        evolving national and international waste policy

·        changes in packaging designs and trends

·        volatility with global recycling markets

·        ongoing impacts of COVID-19.

Procurement presents opportunities to reflect global and local changes

18.     The procurement presents an opportunity to enhance the existing MRF operation to better reflect changing global and local contexts and improve alignment of the service with key strategic council plans and strategies.

19.     One example of an expected change is the likely introduction of a national container return scheme for beverage containers, subject to Cabinet approval. Although a container return scheme may reduce the volume and change the composition of kerbside recycling materials, as beverage containers will be diverted from kerbside bins to other recovery infrastructure, a container return scheme could also create a potential income stream for the MRF that could be shared between the MRF operator and the council.

Materials Recovery Facility upgrade

20.     The council has received $16.6 million from the government’s COVID-19 Response and Recovery Fund. The funding is for significant upgrades to the Materials Recovery Facility. This is in response to the need to invest in nationally significant recycling infrastructure to achieve better quality separated materials to on-sell to local and off-shore markets.

21.     The main upgrades are scheduled to occur in 2022 and form a separate project to this procurement.

Tātaritanga me ngā tohutohu

Analysis and advice

Options considered for delivery model

22.     Analysis of procurement options for achieving the service or project will be provided in the confidential section of the Strategic Procurement Committee meeting agenda for 28 September 2021.

Tauākī whakaaweawe āhuarangi

Climate impact statement

23.     In 2019/2020, the majority of 131,000 tonnes of material was diverted from landfill to be used in local and off-shore recycling markets. The diversion of these materials from local landfills contributes to the avoidance of greenhouse gas emissions, in particular from fibre-based materials which make up 40 per cent of total annual tonnages processed at the MRF.

24.     This procurement aims to ensure the continued diversion of recyclable materials from landfill, to maximise resource recovery and create circular economies. The MRF upgrade scheduled for 2022 will increase the facility’s processing capacity by 28 per cent to process up to 180,000 tonnes per year, in turn resulting in greater emissions reduction potential.

25.     The overall emissions reduction potential of the MRF operation and service is dependent on the quality of materials placed out at kerbside for collection, the types of materials separated, their capacity to be recycled and the location of end-markets.

26.     It is assumed that emissions are reduced when materials are recycled rather than disposed to landfill, as recycling displaces the need for new material extraction and production. Further work is required to understand the full scope of emissions reduction and mitigation as a result of the circular economy approach Auckland is taking to material use, particularly regarding embodied emissions (the total energy required for the manufacture, transport and full lifecycle of a material).

27.     The operation of the MRF itself will also generate carbon emissions, for example through operating plant and on-site vehicles. One of the objectives of the procurement is to address the facility’s carbon impact and to measure, report and off-set emissions both from the operation of the MRF and from those materials that the facility may dispose to landfill.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

28.     This procurement will not have any significant impacts on other members of the council group. Waste Solutions will consult with the relevant council-controlled organisations if any significant impacts are identified.

29.     The procurement process and the new contract for the MRF services are expected to impact several departments within the council beyond Waste Solutions, including Communications, Ngā Mātārae, Community Facilities, Legal, Finance and Customer Services. Waste Solutions will maintain close communication with these departments during development of the new contracts to ensure that they are prepared for any potential impacts.

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

Local impacts and local board views

Local impacts

30.     The new contract will be structured to ensure alignment with the council’s long term strategic goals, including local employment and economic development, circular economies, and zero waste.

31.     The current MRF operation relies heavily on competitive overseas markets for the processing of recyclable materials, as well as some local markets for certain materials (e.g. Visy Glass in Penrose and Pact Group for plastics in Auckland and Wellington). The MRF also depends on other local and New Zealand-based businesses for various trades and services that assist with its operation. It is expected that the future operation will continue to support these and other businesses with a focus on developing local end-markets for materials as well as local economic development and employment opportunities for targeted communities.

Local board views

32.     Consultation with local boards has not been undertaken regarding the specific recommendations in this report.

33.     While the MRF is located in Onehunga within the Maungakiekie-Tāmaki local board area, its services extend to the wider Auckland region and beyond.

34.     Consultation on Te Mahere Whakahaere me te Whakaiti Tukunga Para i Tāmaki Makaurau – Auckland Waste Management and Minimisation Plan 2018 indicated that all local boards broadly supported the direction of the plan, which includes specific actions relating to the continuity of kerbside recycling services. 

35.     Several local boards noted an interest in encouraging more local recycling options. For example, Maungakiekie-Tāmaki Local Board recommended that the council work with waste management companies to investigate innovative ways to repurpose waste, reduce carbon emissions and support other waste research and development initiatives. Franklin Local Board supported more innovation from the private sector to deliver local economic benefits, and the utilisation of materials in local markets instead of off-shore. Albert-Eden Local Board supported advocacy to central government for New Zealand-based recycling centres to process materials currently recycled off-shore, and Papakura Local Board supported the prioritisation of creating jobs in the resource recovery and processing industries.

Tauākī whakaaweawe Māori

Māori impact statement

36.     The rationale for the continued MRF operation aligns with the zero waste vision and actions set out in Te Mahere Whakahaere me te Whakaiti Tukunga Para i Tāmaki Makaurau – Auckland Waste Management and Minimisation Plan (WMMP) 2018.

37.     The plan, endorsed by mana whenua and mataawaka, articulates a set of five Māori values and related priority actions for Māori. The following are examples relevant to this procurement:

·        rangatiratanga (exercising self-determination), with the following priority action: “support mana whenua capacity and development of social enterprise aspirations in resource recovery”

·        kaitiakitanga (our active obligation to sustain and restore our collective resources and taonga tuku iho), with the following priority action: “protection of Papatūānuku; no new landfills; reduce the harm of hazardous waste”

·        kotahitanga (unity through partnership to protect taonga), with the following priority action: “develop respectful and innovative partnerships for waste minimisation in order to restore the mauri of Papatūānuku”.

38.     More details regarding the procurement plan and Māori outcomes will be provided in the confidential section of the Strategic Procurement Committee meeting agenda for 28 September 2021.

Ngā ritenga ā-pūtea

Financial implications

39.     More details regarding the financial implications of the Materials Recovery Facility services procurement will be provided in the confidential section of the Strategic Procurement Committee meeting agenda for 28 September 2021.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

40.     Detail relating to risks and mitigations for the Materials Recovery Facility services will be provided in the confidential section of the Strategic Procurement Committee meeting agenda for 28 September 2021.

Ngā koringa ā-muri

Next steps

41.     Next steps for the Materials Recovery Facility services will be provided in the confidential section of the Strategic Procurement Committee meeting agenda for 28 September 2021.

 

Ngā tāpirihanga

Attachments

There are no attachments for this report.    

Ngā kaihaina

Signatories

Authors

George Fietje – Senior Project Manager, Waste Enterprises and Refuse

Terry Coe – Project Delivery Manager, Waste Enterprises and Refuse

Authorisers

Parul Sood – General Manager Waste Solutions

Barry Potter - Director Infrastructure and Environmental Services

Jazz Singh - General Manager Procurement

 


Strategic Procurement Committee

28 September 2021

 

Renewal of the All of Government External Recruitments Services supply panel agreement

File No.: CP2021/13664

 

  

 

Te take mō te pūrongo

Purpose of the report

1.       To note an update on the All of Government (AoG) External Recruitment Services supply panel agreement between Auckland Council and the Ministry of Business Innovation and Employment (MBIE).

Whakarāpopototanga matua

Executive summary

2.       Auckland Council utilises the service of external recruitment agencies primarily to fulfil contingent workforce needs.

3.       The council has been party to an agreement with Ministry of Business, Innovation and Employment (MBIE) under the All of Government (AoG) External Services supply panel (the AoG Agreement) since 2013.

4.       Since 2017 the council has been on a ‘second-generation’ contract with MBIE, which finishes in September 2021.

5.       MBIE announced in July 2021 an extension of the contract for a further 2 years to September 2023.

6.       The confidential report on this agenda is regarding the council extending the AoG Agreement with MBIE.

 

Ngā tūtohunga

Recommendation/s

That the Strategic Procurement Committee:

a)      note the information contained in this report, on the All of Government Agreement, 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.       The council has an in-house recruitment team that manages the recruitment requirements for the majority of its permanent employees (typically 99 per cent of employee hires).

8.       There remains a need for external recruitment agencies to provide a contingent workforce (contractors and temporary staff) for the council. Additional services also include recruitment of any specialised needs for permanent placement.

9.       The council first joined the AoG Agreement in July 2013 and, in October 2017 joined the second-generation contract, which finishes in September 2021.

Tātaritanga me ngā tohutohu

Analysis and advice

10.     The council’s procurement team and recruitment team carried out a review of the AoG Agreement to inform whether the Council should remain in the AoG Agreement or go to market separately to engage with the external recruitment suppliers directly.

11.     Staff recommend that remaining in the AoG Agreement is the preferred option and will deliver the most benefit to the council. It will also continue the council’s participation in, and contribution to the AoG programme with MBIE.

12.     Staff will further review recruitment under the AoG Agreement with the goal of achieving further savings during the contract period and as part of development of the council’s future contingent workforce recruitment strategy.

13.     Staff intend to work with MBIE personnel to help shape and improve the contract for the AoG 3rd generation Agreement in 2023.

14.     Council staff will continue to ensure we get the most value from the panel. By working with a smaller subset of the panel, we build stronger relationships and see an enhanced understanding of the council’s needs by those preferred agencies.

Tauākī whakaaweawe āhuarangi

Climate impact statement

15.     There are no perceived climate impacts resulting from the recommendations in this report.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

16.     We are partnering with Auckland Transport, who will receive the same discounts as Auckland Council, Auckland Unlimited and Panuku as they fall under the Auckland Council umbrella. Watercare has chosen not to be part of this agreement.

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

Local impacts and local board views

17.     There are no local impacts from the recommendations in this report. As this is an internal management function local board views have not been sought.

Tauākī whakaaweawe Māori

Māori impact statement

18.     The supply panel includes a specialist agency that focuses on Māori and Pasifika roles. All primary agency providers on the panel have been briefed on the council’s Māori Outcomes framework and their role in supporting this. The suppliers ensure they present a diverse range of candidates (subject to required experience) for consideration by hiring managers.

19.     Outside the AoG Agreement, Council have targeted agencies we partner with regarding the Māori Outcomes framework and permanent recruitment targets.

Ngā ritenga ā-pūtea

Financial implications

20.     There is no financial impact to existing budgets.

21.     The AoG Agreement allows the council to access reduced fees when sourcing contingent workers; but does not commit council to any minimum spend. 

22.     This is a flexible agreement, if council volumes continue to reduce there is no built-in rate increase or requirement to use all of the contract value.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

23.     If the council does not continue in the AoG Agreement, it will lose guaranteed access to preferential rates with the panel members along with the ability to negotiate additional volume discounts with these members.

24.     The contingent workforce is often customer facing, so delays in finding temporary workers can impact the council’s customer service performance.

Ngā koringa ā-muri

Next steps

25.     Once agreed, Council staff will extend the contracts with suppliers through to September 2023.

 

Ngā tāpirihanga

Attachments

There are no attachments for this report.    

Ngā kaihaina

Signatories

Author

Francesca Aresti - Procurement Specialist

Authorisers

Patricia Reade - Deputy Chief Executive

Jazz Singh - General Manager Procurement

 


Strategic Procurement Committee

28 September 2021

 

Procurement plan for Auckland Council's SAP Software license and support agreement

File No.: CP2021/13648

 

  

 

Te take mō te pūrongo

Purpose of the report

1.       To note an update on the procurement plan to renew the Auckland Council SAP Software license and support agreement.

Whakarāpopototanga matua

Executive summary

2.       Several of the legacy councils that were merged into Auckland Council in 2010 held SAP software, including Auckland City Council, Waitākere City Council and Auckland Regional Council. The Auckland Transition Authority (ATA) chose SAP to offer all Auckland Council back-office software services, and the ATA purchased a large amount of additional licensing as part of the deal under an enterprise licensing regime.

3.       Today many of the Council’s frontline and back-office functions continue to be powered by SAP software (provided in Table 1 below). The overall licence agreement with the council was last reviewed in late 2015.

4.       SAP Products support a significant proportion of Council’s core services and functions:

Table 1: SAP Products and Services

Service

SAP Product

Regulatory

SAP CRM

Customer Services

SAP CRM

Payroll

SAP ECC

HR

Success Factors

Procure to Pay

SAP Ariba, SAP SRM

Finance

SAP SRM, SAP ECC

E-commerce

Hybris

Data Warehouse and Business Intelligence

Business Objects

Expense Management

Concur

 

Ngā tūtohunga

Recommendation/s

That the Strategic Procurement Committee:

a)      note that the information contained in this report regarding the Auckland Council SAP Software license and support agreement enables transparency on the topic due for discussion in the public excluded part of the meeting.

b)      note that the confidential report on this agenda regarding the SAP support and maintenance contract contains information that could prejudice the council’s position in future negotiations with SAP.

 

Horopaki

Context

5.       The Auckland Council SAP Software license and support agreement will be a direct source arrangement with SAP, as they are the only supplier who can provide us with full support of their products.  While there are other third-party support suppliers such as Rimini Street, TCS and Infosys these suppliers require that you effectively ‘freeze’ your version of SAP.  Given SAP’s strategic importance to the organisation, these options do not meet Council’s requirements.

Tātaritanga me ngā tohutohu

Analysis and advice

6.       Details regarding analysis and advice of this procurement will be provided in the confidential section of the Strategic Procurement Committee meeting agenda.

Tauākī whakaaweawe āhuarangi

Climate impact statement

7.       It is not anticipated that there will be significant climate impact through this procurement activity.

8.     It is known from engagement with SAP through our supplier relationship management (SRM) programme that SAP are taking serious actions to counter climate impact and some of them are:

·        SAP is a participant to the CEO Carbon Neutral Challenge. This challenge is for companies to take urgent action and implement a 360-degree climate strategy to create positive outcomes. The cornerstone of the challenge is to take full responsibility and accountability for the total greenhouse gas emissions they generate, deliver nature-based climate solutions that mitigate emissions and drive positive change.

·        working towards carbon neutrality by 2025, this requires SAP to run all its operations on 100 per cent renewable energy and compensate for all other emissions within the material scope of its operations through investments such as those in Livelihoods Carbon Fund.

9.       In line with the council’s Sustainable Procurement Guidelines, staff will also consider how further low carbon and climate action outcomes can be achieved in the contracts and are measured/ reported within New Zealand.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

10.     The Product Support for Large Enterprises agreement includes Auckland Council and Auckland Transport. 

11.     Watercare were previously a part of the agreement, but they terminated SAP support as from 1 January 2020 and are therefore not impacted by any changes to the Product Support for Large Enterprises agreement. 

12.     Further details are provided in the confidential section of the strategic procurement committee meeting agenda.

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

Local impacts and local board views

13.     Although it is recognised local boards use some SAP applications and systems, they will see no change or minimal change because of this procurement activity.

14.     If council pursues the cloud model and post migration any current services would be replaced with equivalent solutions ensuring minimal disruption.

Tauākī whakaaweawe Māori

Māori impact statement

15.     This procurement presents an opportunity to align SAP closer to council’s Māori outcome objectives. In line with council’s sustainable procurement guidelines, staff will engage with SAP to ensure they are committed to increase Māori employment and provide internship opportunities for Māori students.

16.     These activities would be monitored quarterly through our supplier relationship management programme.

Ngā ritenga ā-pūtea

Financial implications

17.     The recommendation to renew the contract is within the existing budget.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

18.     Any risk of disruption to business as usual is mitigated by the contract being renewed well before the contract end date.

Ngā koringa ā-muri

Next steps

19.     Once the Strategic Procurement Committee has approved the procurement plan, staff will mobilise the renewal of the Auckland Council SAP Software license and support agreement.

 

Ngā tāpirihanga

Attachments

There are no attachments for this report.    

Ngā kaihaina

Signatories

Author

Dilin Abraham Kuriakose - Strategic Procurement Specialist

Authorisers

Patricia Reade - Deputy Chief Executive

Jazz Singh - General Manager Procurement

 


Strategic Procurement Committee

28 September 2021

 

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: Procurement plan for the Materials Recovery Facility 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)(h) - The withholding of the information is necessary to enable the local authority to carry out, without prejudice or disadvantage, commercial activities.

In particular, the report contains information that could prejudice the council's position with potential 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 information that could prejudice the council's position with potential 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: Renewal of the All of Government External Recruitments Services supply panel agreement

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)(h) - The withholding of the information is necessary to enable the local authority to carry out, without prejudice or disadvantage, commercial activities.

In particular, the report contains commercially sensitive information.

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.

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: Procurement plan for Auckland Council's SAP Software license and support agreement

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)(h) - The withholding of the information is necessary to enable the local authority to carry out, without prejudice or disadvantage, commercial activities.

In particular, the report contains information that could prejudice council's position with 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 information that could prejudice council's position 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.