Agenda of Strategic Procurement Committee

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

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

02 May 2018

	STRATEGIC PROCUREMENT COMMITTEE FORWARD WORK PROGRAMME 2018 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 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
1. Delivery on Annual Plan outcomes (Contracts to be awarded)
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
					FY18			FY19
					Apr-Jun	Jul-Sep	Oct-Dec	Jan-Mar	Apr-Jun
1.1	City Centre Development	Approve procurement plan and award contract for City Centre Development project	Decision: Agree procurement plan and award contract Progress to date: Update received at the 13 December 2017 meeting Resolution number STR/2017/59 - Item C4 Next Update will be considered in	$370m (total council family spend)	Q4 June 18
1.2	Building Consents Regional Overflow Model	Approve the procurement plan for the Building Consents Regional Overflow Model	Progress to date: Decision: agree procurement plan- 13 December 2017 meeting, Resolution Number STR/2017/60 – Item C5		Q4 June 18
1.3	America’s Cup 36 progress update	Update on the infrastructure delivery in support of AC36	Receive: progress update	$212m		Q1 July 18
1.4	Organics (Food Waste) Processing, caddies and food waste bins	Award contract for food waste process service, caddies and bins	Decision: Agree to award contract			Q1 August 18
1.5	St Marys Bay Outfall construction contract	Approve procurement plan and then award contract for St Marys Bay stormwater project	Decision: Agree procurement plan and award contract	$35 million		Q1 August 18

2. Review delivery of Capital Projects
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
					FY18			FY19
					Apr-Jun	Jul-Sep	Oct-Dec	Jan-Mar	Apr-Jun
2.1	Capital Project Delivery	Elected member oversight of progress of Major Projects	Progress to date: Update received at the 6 September 2017 meeting Resolution number STR/2017/37 - Item C2. Update received at the 13 December 2017 meeting Resolution number STR/2017/61 - Item C6. Update received at the 7 March 2018 meeting Resolution number STR/2018/11- Item C2. Next Update will be considered in June 2018. Receive: No decisions required		Q4 June 18
2.2	Forward Work Programme (Pipeline)	Elected member oversight of pipeline of activity for capital works delivery forward work programme	Receive: No decisions required		Q4 June 18

3. Endorse Procurement Category Strategies
Priority #	Lead This column is not for inclusion in the public agenda	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
						FY18			FY19
						Apr-Jun	Jul-Sep	Oct-Dec	Jan-Mar	Apr-Jun
3.1	Aaron Donaldson	ICT Software	Create a plan for engaging the market to purchase Software.	Receive: No decision required		Q4 June 18
3.2	George Joseph	Vertical Construction Category Strategy	Development of the overall strategy for vertical construction and building	Receive: No decision required			Q1 July 18
3.3	Aaron Donaldson	ICT Technology Services	Create a plan for engaging the market to purchase Technology Services – Cloud, Data Centre Services, Print, Network.	Receive: No decision required			Q1 July 18
3.4	Aaron Donaldson	Professional Services	Create a plan to go to market and manage professional services across Auckland Council.	Receive: No decision required			Q1 July 18
3.5	Peter Cunningham	Professional Technical Services	Implementation of professional technical services category	Receive: No decision required – update from approved strategy by T&P 2016			Q1 July 18

4. Enhance Group Sourced Procurement
Priority #	Lead This column is not for inclusion in the public agenda	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
						FY18			FY19
						Apr-Jun	Jul-Sep	Oct-Dec	Jan-Mar	Apr-Jun
4.1	Alan McDonnell	Fleet Optimisation Update	Keep Committee informed on progress of Fleet changes	Update received at the meeting on 7 March 2018 Resolution number STR/2018/5 – Item 10. Receive: No decision needed		Q1 July 18
4.2	Jazz Singh	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/2017/4 Item 11 Update received at the meeting on 7 March 2018 Resolution number STR/2018/4– Item 9 Receive: no decision required		Q1 July 18

5. Improve Procurement Maturity

Priority #

Lead

This column is not for inclusion in the public agenda

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

See completed section below

6. Other
Priority #	Lead This column is not for inclusion in the public agenda	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
						FY17		FY18
						Jul-Sep	Oct-Dec	Jan-Mar	Apr-Jun
6.1	Alan McDonnell	Review of Project 17 Contract performance	Update the Committee on the performance of suppliers against key performance metrics under the Project 17 Full Facilities Maintenance contracts	Receive: No decision required					Q4 May 18

Completed

1. Delivery on Annual Plan outcomes (Contracts to be awarded)
Priority	Lead This column is not for inclusion in the public agenda	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
						FY17			FY18
						Jul-Sep	Oct-Dec		Jan-Mar	Apr-Jun
1.1	Alan McDonnell	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		Q1 Sep 17
1.2	Alan McDonnell	Electricity Procurement	Approve Procurement Plan for Electricity procurement	Update provided at the October 2017 meeting Resolution number STR/2017/47 - Item C3				Q2 Oct 17
1.3	Aaron Donaldson	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				Q2 Dec 17
1.4	Alan McDonnell	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						Q4 May 18
1.5	Alan McDonnell	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				Q2 Dec 17
1.6	Peter Cunningham	Overflow Planning Services	Approve the procurement plan for overflow planning services to process resource consents.	Decision: approve procurement plan Decision taken to approve the procurement plan. Resolution number STR/2018/13 – item C2	$30 million					Q4 April 18
1.7	Aaron Donaldson	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: Agree to extend AoG agreements or run own market exercise. Decision taken to extend AoG agreements at 4 April meeting. Resolution number STR/2018/12 – item C1						Q4 April 18

3. Endorse Procurement Category Strategies
Priority #	Lead This column is not for inclusion in the public agenda	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
3.1	Alan McDonnell	Waste Solutions Procurement Strategy	Create plan for go to market exercise for all waste collection (including food waste) and disposal activity prior to 2020	Decision: Confirm strategy/challenge Update provided at the October 2017 meeting Resolution number STR/2017/40 - Item 9			Q2 Oct 17
3.2	Alan McDonnell	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 – C1			Q2 Oct 17
3.3	Aaron Donaldson	ICT hardware	Create a plan for engaging the market to purchase ICT Hardware.	Update received at the meeting on 7 March 2018 Resolution number STR/2018/10 – Item C1. Receive: No decision required				Q3 Mar 18

4. Enhance Group Sourced Procurement
Priority #	Lead This column is not for inclusion in the public agenda	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
						FY17		FY18
						Jul-Sep	Oct-Dec	Jan-Mar	Apr-Jun
4.1	Jazz Singh	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			Q2 Dec 17

5. Improve Procurement Maturity
Priority	Lead This column is not for inclusion in the public agenda	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
						FY17		FY18
						Jul-Sep	Oct-Dec	Jan-Mar	Apr-Jun
5.1	Jazz Singh	Ariba update	Update Committee on implementation of procurement enabling technology	Update provided at the October 2017 meeting Resolution number STR/2017/4 – Item 11			Q2 Oct 17

6. Other
Priority #	Lead This column is not for inclusion in the public agenda	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
						FY17		FY18
						Jul-Sep	Oct-Dec	Jan-Mar	Apr-Jun
6.1	Alan McDonnell	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 – C2			Q2 Oct 17

Strategic Procurement Committee

02 May 2018

Graffiti Eradication and Enforcement Services Contracts

File No.: CP2018/05495

Te take mō te pūrongo / Purpose of the report

1. To seek approval from the Strategic Procurement Committee for the Supplier Recommendation Report for graffiti eradication and enforcement services.

Whakarāpopototanga matua / Executive summary

2. The current graffiti eradication and enforcement services contracts for Auckland Council, and specific Auckland Transport (AT) assets, will expire on 30 June 2018.

3. Council and AT used an open market process to tender their Graffiti Eradication and Enforcement Services contracts in January 2018. Requests for Proposal (RFPs) closed on 7 February 2018.

4. Two RFPs were issued to the market, these will award the following contracts:

· Graffiti Eradication Services split into four contract areas (North, West, Central and South).

· Graffiti Enforcement Services contract for the whole Auckland region.

5. The objectives of these contracts are aligned with Auckland Graffiti Vandalism Prevention Plan (“The Plan”). The Plan was approved by the Regional Development and Operations Committee (RDOC) in March 2012. The Plan establishes a single, locally orientated, approach to managing Auckland Council’s response to graffiti vandalism, and enables the prevention, management and reduction of graffiti vandalism across the Auckland region.

6. The Arts, Community and Events (ACE) and Waste Solutions departments have previously explored using a common supplier/s to deliver both graffiti eradication and illegal dumping services for each contract area.

7. ACE and Waste Solutions separately approached the market, with each RFP cross-referencing the other to reflect the shared intentions for graffiti eradication and illegal dumping. However, after rigorous evaluation, the ACE and Waste Solutions selection panels could not find any synergies so have decided to award contracts to different suppliers.

8. The suggested contracts will bring the following benefits to Auckland Council:

· align Auckland Council Group’s graffiti eradication and prevention services with the Auckland Council Graffiti Vandalism Prevention Plan (The Plan).

· include graffiti services’ contract requirements in some of AT’s owned and managed assets.

· ensure Auckland Council is getting the best value for money.

· ensure consistent quality and services are provided across the Auckland region.

· apply creative thinking and innovative ideas which are critical to quality service delivery.

· ensure that the three Es approach (eradication, enforcement and education) is applied to graffiti vandalism contracts, which will enhance community safety.

· ensure a whole-community approach to preventing graffiti vandalism is included in the graffiti contracts. Information and tools will be provided to community groups, volunteers, residents, businesses and youth.

· apply practical enforcement steps that complement criminal legislation, as part of a package of measures to prevent graffiti vandalism.

· provide an opportunity for suppliers to suggest changes to council’s graffiti eradication programme to meet the programme’s objectives.

· ensure suppliers provide proactive services, which support police in targeting recidivist offenders, emerging offenders and hot spot locations across Auckland.

Ngā tūtohunga / Recommendation/s

That the Strategic Procurement Committee:

a) note the information in this report enables transparency around graffiti eradication and enforcement services due for discussion and approval in the public excluded part of the meeting.

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

Horopaki / Context

9. Council delivers graffiti vandalism prevention services to enhance the visual appeal of the city and to create communities that are safe and feel safe.

10. Successfully implementing the plan involves selecting the right suppliers to work with, including how they are distributed across the region. This will ensure Auckland ratepayers receive value for money for the services provided.

11. Current graffiti eradication and enforcement services contracts at council, as well as some of Auckland Transport’s assets, represent an estimated total annual value of $4.142M. Examples of AT assets include bridges, street furniture and signage. There are different suppliers for each contract area. The following contracts are scheduled to expire on 30 June 2018:

· Graffiti eradication services contracts across four areas (North, West, Central and South)

· Graffiti enforcement services contract across the Auckland region.

Tātaritanga me ngā tohutohu / Analysis and advice

12. The confidential report sets out the analysis and advice leading to these recommendations.

Ngā whakaaweawe ā-rohe me ngā tirohanga a te poari ā-rohe /
Local impacts and local board views

13. The Regional Development and Operations Committee (RDOC) adopted the Plan in 2012. The Plan incorporates feedback from 16 local boards and is aligned with their own plans. It provides a basis for creating and maintaining the graffiti eradication and enforcement services contracts.

Tauākī whakaaweawe Māori / Māori impact statement

14. Mana whenua were not consulted on the RFP process. If these contracts are endorsed, all communities, including Māori, will benefit from a cleaner, graffiti-free city. Neighbourhoods which feel safer ultimately contribute to council’s vision of making Auckland a world-class city.

Ngā ritenga ā-pūtea / Financial implications

15. The final negotiated contract price for each of the five recommended suppliers is below the allocated budget for the contracts.

Ngā raru tūpono / Risks

16. Failure to approve the supplier recommendation could disrupt the delivery of these key services as there will be no contracted suppliers to deliver the graffiti eradication and enforcement services contracts. These services form a critical part of the Auckland Graffiti Vandalism Prevention Plan.

Ngā koringa ā-muri / Next steps

17. The new contracts will commence on 1 July 2018. They will have an initial term of five years, with four rights of renewal of one year each at council’s discretion. This means that contracts may be in place for up to nine years each.

18. A total of five suppliers will deliver graffiti eradication and enforcement services across Auckland.

19. The contracts are also subject to suppliers’ capability to meet and/or exceed their Key Performance Indicators (KPIs).

Ngā tāpirihanga / Attachments

There are no attachments for this report.

Ngā kaihaina / Signatories

Author

Uly Alejandrino - Strategic Procurement Specialist

Authorisers

Graham Bodman - General Manager Arts, Community and Events

Jazz Singh - General Manager Procurement

Chairperson	Deputy Mayor 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

No.	Title	Page
a ⇩	Strategic Procurement Committee - Forward Work Programme 2 May 2018	11

Author	Michelle Judge - Governance Advisor
Authoriser	Jazz Singh - General Manager Procurement