I hereby give notice that an ordinary
meeting of the Strategic Procurement Committee will be held on:
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Date:
Time:
Meeting Room:
Venue:
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Wednesday, 8
August 2018
9.30am
Room 1, Level
26
135 Albert Street
Auckland
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Komiti Mahi Āta Torotoro Rawa /
Strategic Procurement Committee
OPEN AGENDA
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MEMBERSHIP
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Chairperson
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Deputy Mayor, Cr Bill Cashmore
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Deputy Chairperson
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Cr Ross Clow
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Members
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Cr Dr Cathy Casey
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Cr Linda Cooper, JP
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Cr Alf Filipaina
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Cr Penny Hulse
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Cr Daniel Newman, JP
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Ex-officio
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Mayor Hon Phil Goff, CNZM, JP
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(Quorum 4 members)
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Michelle Judge
Governance Advisor
1 August 2018
Contact Telephone: +64211950262
Email: michelle.judge@aucklandcouncil.govt.nz
Website: www.aucklandcouncil.govt.nz
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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.
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Strategic
Procurement Committee
08 August 2018
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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 Information
report - 8 August 2018 9
9 Information
report - group source procurement update 19
10 Westgate multipurpose
facility (integrated library and community centre) construction: status update 27
11 Consideration of
Extraordinary Items
PUBLIC EXCLUDED
12 Procedural
Motion to Exclude the Public 31
C1 CONFIDENTIAL: Westgate
multipurpose facility (integrated library and community centre) construction:
status update 31
At the close of
the agenda no apologies had 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
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That the Strategic Procurement Committee:
a)
confirm the ordinary minutes of its meeting,
held on Wednesday, 11 July 2018, including the
confidential section, as true and correct records.
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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.”
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Strategic
Procurement Committee
08 August 2018
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Information
report - 8 August 2018
File No.: CP2018/13601
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.
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Ngā tūtohunga / Recommendation/s
That the Strategic Procurement
Committee:
a) receive
the information report – 8 August 2018.
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Ngā
tāpirihanga / Attachments
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No.
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Title
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Page
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a⇩ 
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Strategic Procurement Committee Forward Work Programme
- 20180808
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11
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Ngā kaihaina / Signatories
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Author
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Michelle Judge - Governance Advisor
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Authoriser
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Jazz Singh - General Manager Procurement
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Strategic
Procurement Committee
08 August 2018
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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.
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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
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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.
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1. Delivery
on Annual Plan outcomes (Contracts to be awarded)
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Priority #
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Area of work
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Reason for work
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Strategic Procurement
Committee role (decision or direction)
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Budget / Funding
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Expected timeframes
Highlight
financial year quarter and state month if known
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FY19
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Jul-Sep
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Oct-Dec
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Jan-Mar
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Apr-Jun
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1.1
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City
Centre Development
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Progress
update on Centre Development project (Downtown Programme)
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Receive: Progress update
Progress
to date:
Update
received at the 13 December 2017 meeting Resolution number STR/2017/59 - Item
C4
Next
update will be considered in September 2018
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$370m
(total council family spend)
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Q1
Sept 18
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1.2
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America’s
Cup 36 progress update
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Update
on the infrastructure delivery in support of AC36
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Receive:
progress update
Next
update will be considered in September 2018
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$212m
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Q1
Sept 18
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1.3
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Ports
of Auckland stormwater project
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Approve
awarding of contract to successful supplier for Ports of Auckland stormwater
project
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Decision:
Approve awarding of
contract
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Q2
Oct
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1.4
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St
Marys Bay Outfall construction contract
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Approve
procurement plan
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Decision: Agree procurement plan
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Q2
Sep 18
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1.5
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Procurement
plan for consolidated waste collections contracts
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Approve
procurement strategy for consolidation of waste collections contracts
(including refuse, recycling, inorganics and food scraps)
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Decision: Approve procurement strategy and
procurement plan
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Q2
Dec 18
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1.6
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Strategic
procurement plan for waste services
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To
approve a strategic plan for procurement of waste services over the next five
years.
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Decision: Agree procurement plan
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Q2
Dec 18
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1.7
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St
Marys Bay Outfall construction contract
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Approve
supplier recommendation report
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Decision:
Approve awarding
contract
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Q2
Dec 18
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1.8
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Organics
processing
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Organics
(Food Waste) Processing, caddies and food waste bins
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Receive:
Progress update
Progress
to date:
Decision
taken to approve
the contract award for food waste process services, caddies and bins at 11
July 2018 meeting
Resolution
number STR/2018/37 – Item C2
Next
update will be considered in Q4
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Q4
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2. Review
delivery of Capital Projects
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Priority #
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Area of work
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Reason for work
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Strategic Procurement
Committee role (decision or direction)
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Budget / Funding
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Expected timeframes
Highlight
financial year quarter and state month if known
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FY19
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Jul-Sep
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Oct-Dec
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Jan-Mar
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Apr-Jun
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2.1
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Westgate
multipurpose facility (integrated library and community centre) construction
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Elected
member oversight of progress of Westgate multipurpose facility
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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
Receive:
no decision
required
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Q1
Aug 18
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2.2
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Capital
Project Delivery
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Elected
member oversight of progress of Major Projects
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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
Receive: no decision required
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Q1
Sept 18
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2.3
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Forward
Work Programme (Pipeline)
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Elected
member oversight of pipeline of activity for capital works delivery forward
work programme
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Receive: Progress update
Progress
to date:
Update
received at 11 June 2018 meeting – Resolution number STR/2018/25
– Item 10
Receive: no decision required
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Q2
Oct 18
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3. Endorse
Procurement Category Strategies
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Priority #
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Area of work
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Reason for work
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Strategic Procurement
Committee role (decision or direction)
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Budget / Funding
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Expected timeframes
Highlight
financial year quarter and state month if known
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FY19
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Jul-Sep
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Oct-Dec
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Jan-Mar
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Apr-Jun
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3.1
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Professional
Technical Services
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Implementation
of professional technical services category strategy
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Receive:
No decision
required – update from approved strategy by T&P 2016
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Q1
Sept 18
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3.2
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ICT
Technology Services
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Create
a plan for engaging the market to purchase Technology Services – Cloud,
Data Centre Services, Print, Network.
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Receive:
No decision
required
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Q2
Oct 18
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3.3
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Professional
Services
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Create
a plan to go to market and manage professional services across Auckland Council.
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Receive:
No decision
required
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Q2
Nov 18
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4. Enhance
Group Sourced Procurement
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Priority #
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Area of work
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Reason for work
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Strategic Procurement
Committee role (decision or direction)
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Budget / Funding
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Expected timeframes
Highlight
financial year quarter and state month if known
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FY19
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Jul-Sep
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Oct-Dec
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Jan-Mar
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Apr-Jun
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4.1
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Fleet
Optimisation Update
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Keep
Committee informed on progress of Fleet changes
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Progress
to date:
Update
received at the 7 March 2018 meeting - Resolution number STR/2018/5 – Item 10.
Update
received at the 11 July 2018 meeting – Resolution number STR/2018/39
– Item 9.
Receive: no decision required.
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Q2
Oct 18
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4.2
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Group
Sourced Procurement update
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Keep
Committee informed on progress against Group Sourced Procurement objectives
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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
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Q1
August 18
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5. Improve
Procurement Maturity
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Priority #
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Area of work
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Reason for work
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Strategic Procurement
Committee role (decision or direction)
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Budget / Funding
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Expected timeframes
Highlight
financial year quarter and state month if known
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See completed section below
6. Other
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Priority #
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Area of work
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Reason for work
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Strategic Procurement
Committee role (decision or direction)
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Budget / Funding
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Expected timeframes
Highlight
financial year quarter and state month if known
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See
completed section below
Completed
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1. Delivery
on Annual Plan outcomes (Contracts awarded)
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Priority #
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Area of work
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Reason for work
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Strategic Procurement
Committee role (decision or direction)
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1.1
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Refuse
Collections
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Change
from collection of Bags to Bins for Waitakere and North Shore. Part of
aligning refuse collection services across the region
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Decision: Agree to extend current contract
with Veolia for a further 2 years – 6 September 2017 –
Resolution STR/2017/36 – Item C1
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1.2
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Electricity
Procurement
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Approve
Procurement Plan for Electricity procurement
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Update provided at the October 2017
meeting Resolution number STR/2017/47 - Item
C3
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1.3
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External
Legal Services
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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
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Decision: Agree to contract awards for 2
years. 13 December 2017 meeting, Resolution Number STR/2017/57 – Item C2
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1.4
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Graffiti
Eradication and Enforcement Services
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Approve
procurement plan for graffiti Eradication and Enforcement Services
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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/2018/18 – Item 10 and Resolution number STR/2018/20
– item C1
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1.5
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Electricity
supply SRR
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Approve
the supplier recommendation report for electricity supply services
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Decision: agree SRR- 13 December 2017
meeting, Resolution Number STR/2017/56 – Item C1
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1.6
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Overflow
Planning Services
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Approve
the procurement plan for overflow planning services to process resource
consents.
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Decision taken to approve the procurement
plan at 4 April 2018
meeting. Resolution number STR/2018/15 – Item 10 and Resolution number STR/2018/13 – item C2
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1.7
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External
Recruitment Supplier
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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/2018/14 – Item 9 and Resolution number STR/2018/12
– item C1
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1.8
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Building
Consents Regional Overflow Model
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Approve the supplier recommendation
for the Building Consents Regional Overflow Model
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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
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1.9
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Waiheke
Island Waste Services Contracts
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Approve
a contract extension for Waiheke Island waste services contract
|
Update
provided at the 11 July 2018 meeting, Resolution number STR/2018/41 – Item 11 and Resolution number STR/2018/36
– item C1
Decision: Approved contract extension at 11
July 2018 meeting.
|
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3. Endorse
Procurement Category Strategies
|
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Priority #
|
Area of work
|
Reason for work
|
Strategic Procurement
Committee role (decision or direction)
|
|
3.1
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Waste
Solutions Procurement Strategy
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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
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|
3.2
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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
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3.3
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ICT
hardware
|
Create
a plan for engaging the market to purchase ICT Hardware.
|
Update
received at 7 March 2018 meeting – Resolution number STR/2018/7 –
Item 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/2018/29
– Item 14 and Resolution number STR/2018/34
– Item C4
Decision:
endorse the
vertical construction procurement category strategy
|
4. Enhance
Group Sourced Procurement
|
|
Priority #
|
Area of work
|
Reason for work
|
Strategic Procurement
Committee role (decision or direction)
|
|
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
|
|
Priority #
|
Area of work
|
Reason for work
|
Strategic Procurement
Committee role (decision or direction)
|
|
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
|
|
Priority #
|
Area of work
|
Reason for work
|
Strategic Procurement
Committee role (decision or direction)
|
|
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 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. Update provided at May 2018 meeting, Resolution number STR/2018/21
– item C2
|
|
Strategic
Procurement Committee
08 August 2018
|
|
Information report - group source
procurement update
File No.: CP2018/14241
Te take mō te pūrongo / Purpose of the report
1. To
provide an update to the Strategic Procurement Committee on Group Source
Procurement for FY18.
Whakarāpopototanga matua / Executive summary
2. This
information report aims to provide public visibility of
information circulated to committee members. No decisions are required.
What we achieved: FY18 Overview
3. FY18
was a strong year for Group Source procurement activities. It was the first
year where Auckland Transport (AT), Auckland Council (AC) and Watercare all had
pipelines built and reported on benefits. It was also the first time we were
able to report on bottom line operational cost savings across the group.
4. With
every year the programme continues to grow, and collaboration between the
procurement teams in the group becomes stronger. In each financial year of the
Group Source programme we have improved on what we achieved as a group in total
benefits confirmed.
5. A
highlight for the Group Source programme was the adoption of the Group Source
Procurement Policy and the Sustainable Procurement Framework. These policy
documents provide a clear direction for Group Source and support us working
together now and into the future.
6. Sustainable
procurement was a focus of procurement activities during the year. Some
examples for FY18 include:
· Sunnynook Dry Pond
Upgrade: Clay excavated from the site and repurposed as fill to Wairau
Intermediate School grounds to upgrade their sports fields.
· Skype for business:
allows employees (and Local Board members) to collaborate without needing to
travel contributing to reduced travel and a reduced carbon footprint.
· Awakeri Wetlands
contract -removal of peat material from the Awakeri project to become cleanfill
at neighbouring developments achieving significant cost avoidance and avoiding
landfilling.
7. For
more highlights on what the council group has achieved please refer to
Attachment A.
Where we’re going: FY19 onwards
8. Towards the end of FY18, the Value for Money (s17A) review of
Procurement was reported to Governing Body. The review noted that good progress
had been made in group procurement activities and collaboration. It also made
several recommendations regarding s where procurement activities in the Group
Source programme should for focussed.
9. The table below outlines the quick wins identified in the review and
details the progress already made and future actions planned.
|
Quick
Wins
|
Completed
or currently underway
|
Future
action planned
|
|
Complete a
high level post-implementation review of SAP Ariba at the Council parent,
including engagement with CCOs, prior to any further deployment or
investment. All entities should be involved and a future Group technology
road map developed.
|
Procurement Digitisation
working group
SAP Ariba post implementation
review
|
Group digital procurement
road-map
|
|
Develop and
implement a plan to proactively engage with Maori business and the Maori
business community in procurement opportunities.
|
Group Sustainable Procurement
Framework
|
Develop tools and supporting
documents to make sustainable procurement the default approach across the
Group
|
|
Improve the
reporting benefits realized to include year end forecast position. When a
metric is not on track (red), require a ‘go to green’ plan
detailing the actions to be taken, by whom and when for the metric to return
to green (on track).
|
Explore Power
BI as a reporting tool to assist with forecasting
|
Develop a
‘go to green’ template to be used across the group
|
Implement
customer and supplier surveys at Auckland Transport to understand performance
and identify improvement opportunities.
|
AC and
Watercare share surveys with AT
|
AT to develop, distribute and
analyse supplier surveys
|
|
Standardise,
where appropriate, data standards, templates, contracts, frameworks across
the Group to avoid duplication and reduce supplier cost.
|
Procurement Digitisation
Framework across group
Sustainable Procurement
Framework across group
Group Procurement Policy
Group Source Programme
Spend Visibility across group
|
Review and standardise where
appropriate procurement related documents including terms and conditions of
procurement templates and legal contracts
|
10. The table below outlines the longer-term recommendations, the
progress already made and future actions planned.
|
Recommendations
|
Completed
or currently underway
|
Future
action planned
|
|
Design and
implement a Group procurement operating model to effectively enable the Group
Procurement Policy and participation from the council and all its
council-controlled organisations.
|
Group Source programme
Procurement digitisation
framework
|
Group Category strategies
developed
Agreed approach to develop
procurement capability across the group
|
|
Design and
implement a consistent, Group-wide Supplier Relationship Management framework
for identifying and managing key strategic supplier relationships, and consider
assigning ownership of these to the group’s executive teams
|
Group Supplier Relationship
Management framework in development
|
Capability building across
group
|
|
Design and
implement a consistent, Group-wide procurement risk management framework for
identifying, assessing and treating risks to allow the most appropriate
procurement and financing approach to be adopted. This would acknowledge each
entity’s differing risk profiles and governance structures.
|
Share and compare between
group entities their current procurement risk management frameworks and
enterprise risk management framework
|
Create a value and risk matrix
for procurement activity across the group
|
|
Require all
entities in the Group to establish an annual hard savings target for
procurement and include this in the long-term plan budget, to be implemented
by 30 June 2018
|
Hard opex targets to be set
for AC and AT in first quarter of FY19
|
|
|
Ngā tūtohunga / Recommendation/s
That the Strategic Procurement
Committee:
a) note
the information report.
|
Ngā
tāpirihanga / Attachments
|
No.
|
Title
|
Page
|
|
a⇩
|
20180808 - Strategic Procurement Committee - Group
source procurement update results
|
23
|
Ngā kaihaina / Signatories
|
Author
|
Sarah Minotti - Group Source Procurement
Programme Lead
|
|
Authoriser
|
Jazz Singh - General Manager Procurement
|
|
Strategic
Procurement Committee
08 August 2018
|
|
|
Strategic
Procurement Committee
08 August 2018
|
|
Westgate multipurpose facility
(integrated library and community centre) construction: status update
File No.: CP2018/13551
Te take mō te pūrongo / Purpose of the report
1. To
provide a construction status update to the Strategic Procurement Committee on
the Westgate multipurpose facility construction contract with Fletcher
Construction Company Limited.
2. To
report on contract variations for which approved budget is available within the
project. Further detail for the committee consideration is provided in the
confidential report to the committee.
Whakarāpopototanga matua / Executive summary
3. Construction
of the Westgate multipurpose facility commenced on 6 March 2017, with practical
completion on 31 October 2018. The structure is complete, and the building
enclosed with internal fit-out and service work continuing.
4. The
contract has incurred delays and costs due to initial pre-commencement works,
design documentation changes and extension of time costs.
5. Two
variations are required to enable budget to be included into the contract from
the project budget. These are for the cost of enabling works undertaken, and a
risk contingency provision to cover costs of risk eventuating.
6. The
health and safety performance demonstrated by the contractor is satisfactory,
and quality of construction remains good.
7. Due
to its higher-risk profile, the Westgate multipurpose facility construction
will provide monthly status updates to the committee.
|
Ngā tūtohunga / Recommendation/s
That the Strategic Procurement
Committee:
a) note
the Westgate multipurpose facility (integrated library and community centre)
construction: status update report.
b) note
that the information contained in this report enables further transparency on
the proposed contract for Main Contractor: construction works for Westgate
multipurpose facility (library and community facilities) for two variations
related to enabling works and a risk contingency provision in the
confidential report.
|
Horopaki / Context
8. The Westgate
Multipurpose Facility project was reported to Strategic Procurement Committee
on 11 June 2018 in a report and presentation titled “Westgate
multipurpose facility (integrated library and community centre)
construction” under the “Update to capital projects over $5 million”
in the confidential section of the agenda.
Tātaritanga me ngā tohutohu / Analysis and advice
Health and safety
9. The
contractor’s general attitude to the management of health and safety on
site is satisfactory, demonstrated by independent audits undertaken on behalf
of council and its own reporting.
Timeline status
10. The revised
due date for practical completion of the main construction contract is 18
October 2018.
Quality
11. Ongoing
quality audits are being conducted by the architect and consulting engineers.
Quality of construction audited to date has been of a good standard, and no
significant quality issues have been reported.
12. These audits
confirm the contractor’s attitude and attention to the management of
quality construction practice on site is good.
Ngā whakaaweawe ā-rohe me ngā tirohanga a te
poari ā-rohe /
Local impacts and local board views
13. Henderson-Massey
local board has received monthly updates and quarterly reports. The local board
received a presentation on the current status of the project on 17 July 2018.
Tauākī whakaaweawe Māori / Māori impact
statement
14. Council
staff are currently working with local mana whenua around the naming and
signage of the facility. The mana whenua involved are Te Kawerau a Maki and
Ngati Maunga Whakahii O Kaipara.
Ngā ritenga ā-pūtea / Financial implications
15. Contract
variations to date are within the contract contingency sum allocated, with some
still to be agreed.
16. Variations
and claims not yet agreed are subject to recommendation by the quantity surveyor
prior to any final agreement. Any agreed variations will seek approval from the
committee.
17. The two
variations are made up of costs incurred for enabling works, for which project
budget is available, and a risk contingency provision as recommended by the
quantity surveyor to cover costs of risk eventuating. Budget for this risk
contingency is also available within the project budget.
Ngā raru tūpono / Risks
18. Risk
management involving identification, mitigation and control is being continually
implemented and the risk management plan is operating.
19. Several of
the risks have eventuated since the last report. These involve extensions of
time for delays in providing timely design information, design and coordination
problems with regards to heating, ventilation and air conditioning. This has
resulted in coordination changes, and changes in design drawings from those
issued at tender.
20. Some costs
associated with these risks have been identified. Staff are working to ensure
these are as minimal as possible. Staff are also working to ensure any delays
to the contract delivery are minimal.
21. During the
closing stages of the contract, and due to the increase in the number and
severity of outstanding risks, status reports to the Strategic Procurement
Committee will increase to a monthly frequency for the duration of the
contract.
Ngā koringa ā-muri / Next steps
22. The project
governance group will continue to work with the professional services team and
the contractor to mitigate and control risks and minimise any additional costs.
23. Monthly
status update reports will be provided to the Strategic Procurement Committee
for the remainder of the contract.
Ngā
tāpirihanga / Attachments
There are no attachments for
this report.
Ngā kaihaina / Signatories
|
Author
|
John Schermbrucker – Head of Project Delivery
|
|
Authorisers
|
Rod Sheridan - General Manager Community Facilities
Dean Kimpton - Chief Operating Officer
Jazz Singh - General Manager Procurement
|
|
Strategic
Procurement Committee
08 August 2018
|
|
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:
Westgate multipurpose facility (integrated library and community centre)
construction: status update
|
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 and other parties with regard to the resolution of
disputes.
|
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.
|
