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, 3
April 2019
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
28 March 2019
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
03 April 2019
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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 Update on
procurement of healthy waters physical works and technical services 9
9 Update on
procurement of stormwater infrastructure to support the Auckland Housing
Programme 15
10 Information Report - 3
April 2019 19
11 Consideration of
Extraordinary Items
PUBLIC EXCLUDED
12 Procedural
Motion to Exclude the Public 27
C1 CONFIDENTIAL: Strategy for
procuring healthy waters physical works and technical services 27
C2 CONFIDENTIAL: Supplier
recommendations for stormwater infrastructure to support the Auckland Housing
Programme 27
C3 CONFIDENTIAL: Property valuation
services procurement plan 27
An apology has
been received from Cr P Hulse for absence, on council business.
2 Declaration
of Interest
Members are
reminded of the need to be vigilant to stand aside from decision making when a
conflict arises between their role as a member and any private or other
external interest they might have.
3 Confirmation
of Minutes
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That the Strategic Procurement Committee:
a)
confirm the ordinary minutes of its meeting,
held on Wednesday, 6 March 2019, including the
confidential section, as a true and correct record.
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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
03 April 2019
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Update
on procurement of healthy waters physical works and technical services
File No.: CP2019/03789
Te take mō te
pūrongo
Purpose of the report
1. To
note an update on procurement of healthy waters physical works and technical
services.
Whakarāpopototanga matua
Executive summary
2. Auckland
Council’s Healthy Waters department already delivers a large volume of
physical works ($118 million in 2018/2019). This workload will increase
significantly due to the water quality targeted rate (on average by $40 million
per annum additional capex over the next ten years).
3. Healthy
Waters has established a number of supplier panels over the last three years to
undertake stormwater physical works (such as drilling or pipelining) and
associated technical services (such as design or resource consent preparation).
4. Panels
consist of a pre-approved group of suppliers who have expertise in delivering
specific works and have signed a master services agreement (standardised
contract) with the council. Works are procured from panel members through a
streamlined process using standardised rates. This approach is more efficient
for both the council and suppliers.
5. Engagement
with Healthy Waters and feedback from the supplier market has identified the
need to refresh the existing Healthy Waters panel arrangements.
6. More
details regarding this refresh will be provided in the confidential section of
the 3 April 2019 Strategic Procurement Committee meeting.
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Ngā tūtohunga
Recommendations
That the Strategic Procurement
Committee:
a) note
the information contained in this report on procurement of healthy waters
physical works and technical services enables transparency on the topic due
for discussion in the public excluded part of the meeting.
b) note
that the confidential report contains information that could prejudice the
council’s position in negotiations with suppliers.
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Horopaki
Context
Procurement of technical services
7. Auckland
Council’s Healthy Waters department requires a wide range of technical
services in order to deliver stormwater projects and infrastructure upgrades.
The services required include:
· design
and project management
· asset
data and asset management
· lifecycle
planning and management
· emergency
and urgent works response assistance
· resource
consent preparation
· hydraulic
modelling
· advisory
services on water quality, small waters and wastewater
· dam
specialists
· surveying.
8. In
2018, Healthy Waters spent approximately $24 million on technical services.
These services were provided by approximately 110 suppliers.
9. Table
1 below sets out the number of Healthy Waters contractual arrangements for
technical services in 2018 at different value ranges. It shows that 93 per cent
of technical services contracts procured by Healthy Waters in 2018 were worth
less than $300,000.
Table 1:
Number of Healthy Waters contracts procured in 2018 per value range
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Contract values
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Number of
contracts
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Percentage (%) of
total contracts
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Total spend
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$0 to $100,000
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171
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74%
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$6,847,800
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$100,000 to $150,000
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20
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9%
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$2,360,800
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$150,000 to $300,000
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24
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10%
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$4,941,200
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$300,000+
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17
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7%
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$9,556,600
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Total
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232
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$23,706,400
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10. To manage the
high volume of low value, low risk work procured by the department, Healthy
Waters has established four panels for provision of technical services to
streamline the procurement process. Master services agreements for these panels
have been signed with approximately 32 suppliers for technical services.
11. This approach
is aligned with the council’s Professional Services - Category Strategy
(resolution number TEN/2015/1). This states the council’s intention to
procure low value or low risk professional services more efficiently through
supplier panels.
12. As
there are four panels, a supplier may have more than one master services
agreement with different teams within Heathy Waters. The same suppliers also
provide services under individual standalone contracts with Healthy Waters.
Procurement of physical works
13. Healthy
Waters have five panels in place for delivering physical works. Some of these
panels have a value threshold. This means that works which fall above or below
a particular level (e.g., $1 million) cannot be awarded to panel members but
must be procured on the open market through a standard procurement process.
14. The physical
work panels cover the specialisations listed below:
· directional
drilling (up to $1 million in contract value)
· manholes
and pipes (up to $1 million in contract value)
· soakholes
(up to $1 million)
· streamworks
(up to $1 million)
· tunnelling
(contract values of $1 million and over)
· open
trench (contract values of $1 million and over)
· pond
desilting (no value threshold)
· pipelining
(no value threshold).
15. This approach
is aligned with the council’s Horizontal Infrastructure Strategy 2017.
This outlined the council’s preference for procuring low risk physical
infrastructure works through supplier panels where possible. The approach to
this procurement described in the confidential report is a sub-set of this
strategy.
16. Healthy
Water’s panels include 25 suppliers for physical works in total, some of
which sit within multiple panels with multiple specialisations.
17. Table 2 below
sets out the number and value of planned physical works projects to be tendered
in the 2019 calendar year grouped by primary specialisation
only (some works may have multiple specialisations).
Table 2. Number and value of planned physical works to be
tendered in 2019 by value and specialisation
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Value range
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No. of projects
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Estimated value
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less or equal to $500,000
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5
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$1,231,000
|
|
Manhole
and pipes
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3
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$994,100
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Pipelining
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1
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$33,200
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Streamworks
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1
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$203,700
|
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>$500,000 to 1 million
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9
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$6,380,700
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|
Manhole
& Pipes
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4
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$3,145,400
|
|
Pipelining
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2
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$1,442,400
|
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Streamworks
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3
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$1,793,000
|
|
>$1 million to 3
million
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9
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$14,097,600
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|
Horizontal
directional drilling
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1
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$2,362,100
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|
Manhole
and pipes
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7
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$10,267,400
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Streamworks
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1
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$1,467,100
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>$3 million to 5
million
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6
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$22,957,500
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|
Manhole
and pipes
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2
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$6,765,000
|
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Streamworks
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4
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$16,192,500
|
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>$5 million
|
11
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$146,606,300
|
|
Open
trench
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3
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$63,236,200
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Manhole
and pipes
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3
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$47,023,200
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Pipelining
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2
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$18,279,600
|
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Tunnelling
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3
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$18,067,300
|
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Grand Total
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40
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$191,272,000
|
18. As Table 2 shows,
Healthy Waters is procuring a significant amount of physical works in these
areas. Adopting an effective procurement strategy is important to enable the
council to successfully deliver these projects and achieve all desired
outcomes.
19. In addition
to the projects above, Healthy Waters carry out approximately 300 minor capital
works projects using the panels identified in Table 2 above, with a total
annual value of approximately $4 million. These unplanned works are primarily
operational renewals. The majority of these works are worth less than $300,000.
20. Having
multiple panels for physical works can be confusing for staff, as often
projects will require deliverables (for example, pipelining and streamworks)
which span two or three panels. It also makes it more challenging for the
council to monitor performance and drive improvements.
21. In the
current market conditions Healthy Waters can struggle to find the capability
and capacity for some specialisations when required.
22. The current
panels will expire on 1 July 2019, which provides an opportunity for Auckland
Council to refresh its approach to use of supplier panels for stormwater works.
Tātaritanga me ngā
tohutohu
Analysis and advice
23. Analysis and
advice regarding changes to the procurement approach will be provided in the
confidential section of the 3 April 2019 Strategic Procurement Committee
meeting.
Ngā whakaaweawe me
ngā tirohanga a te rōpū Kaunihera
Council group impacts and views
24. The
council’s Procurement department is working across the council group to
identify opportunities to increase process efficiency and consistent approaches
to the market.
25. A more
detailed update on the council group impacts will be provided in the
confidential section of the 3 April 2019 Strategic Procurement Committee
meeting.
Ngā whakaaweawe
ā-rohe me ngā tirohanga a te poari ā-rohe
Local impacts and local board views
26. No
consultation has been undertaken with local boards on the specific decisions
recommended in this report. Consultation will be undertaken with local
communities and local boards on all healthy waters physical works projects with
significant local impacts.
Tauākī whakaaweawe
Māori
Māori impact statement
27. As part of
the sustainable procurement strategy for technical services and physical works,
staff will actively find opportunities to engage with Māori suppliers and
increase their participation in panels.
28. Key
objectives are to ensure that suppliers employed through the panels:
· contribute to upskilling or capacity building of Māori
· incorporate Māori
culture, values and perspectives into project design
· engage effectively with mana whenua
· support supplier diversity through their supplier chain, including
through employment of Māori
organisations as sub-contractors and as staff.
Ngā ritenga
ā-pūtea
Financial implications
29. Financial
implications of procurement of healthy waters physical works and technical
services will be provided in the confidential section of the 3 April 2019 Strategic
Procurement Committee meeting.
Ngā raru tūpono me
ngā whakamaurutanga
Risks and mitigations
30. Risks and
mitigations relating to procurement of healthy waters physical works and
technical services will be provided in the confidential section of the 3 April
2019 Strategic Procurement Committee meeting.
Ngā koringa ā-muri
Next steps
31. Next steps
relating to procurement of healthy waters physical works and technical services
will be provided in the confidential section of the 3 April 2019 Strategic
Procurement Committee meeting.
Ngā tāpirihanga
Attachments
There are no attachments for
this report.
Ngā kaihaina
Signatories
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Authors
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Dukessa Blackburn-Huettner - Lifecycles Manager
Vivian Dias - Strategic Procurement Specialist
|
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Authorisers
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Craig McIlroy - General Manager Healthy Waters
Barry Potter - Director Infrastructure and
Environmental Services
Jazz Singh - General Manager Procurement
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Strategic
Procurement Committee
03 April 2019
|
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Update on procurement of stormwater
infrastructure to support the Auckland Housing Programme
File No.: CP2019/03859
Te take mō te
pūrongo
Purpose of the report
1. To
provide an update on procurement of stormwater infrastructure works to support
delivery of the Auckland Housing Programme.
Whakarāpopototanga matua
Executive summary
2. HLC
(2017) Limited is a subsidiary of the Housing New Zealand Corporation. HLC is
responsible for increasing housing stock in the Auckland region over the next
10 to 15 years through the Auckland Housing Programme.
3. The Auckland Housing Programme will treble the number of current
dwellings being built in Auckland by providing more medium and high-density
housing. One-third will be social housing, one-third priced as affordable
housing and one-third sold at market prices.
4. Through
the programme HLC are currently delivering infrastructure to support
approximately 22,500 new homes in the Mount Roskill, Māngere, Northcote
and Oranga areas.
5. Auckland
Council’s Healthy Waters department has identified a significant number
of public stormwater infrastructure works that will be required to support
delivery of the Auckland Housing Programme. This stormwater infrastructure will
also support future growth in adjacent areas.
6. More
detail regarding the procurement of this stormwater infrastructure will be
provided in the confidential section of the 3 April 2019 Strategic Procurement
Committee meeting.
|
Ngā tūtohunga
Recommendations
That the Strategic Procurement
Committee:
a) note
the information contained in this report on procurement of stormwater
infrastructure to support delivery of the Auckland Housing Programme enables
transparency on the topic due for discussion in the public excluded part of
the meeting.
b) note
that the confidential report contains information that could prejudice the
council’s position in negotiations with suppliers.
|
Horopaki
Context
7. Housing
New Zealand is responsible for giving effect to central government’s
social housing objectives, by providing housing for people with low income or
no income.
8. HLC
is a wholly owned subsidiary of Housing New Zealand, tasked with increasing
housing stock in the Auckland region over the next 10 to 15 years. This
includes the development of high and medium density and mixed tenure housing as
part of the Auckland Housing Programme.
9. The
Auckland Housing Programme is a joint initiative between Housing New Zealand
and HLC to deliver housing developments in Auckland over the next 10 years.
10. HLC are
currently delivering infrastructure to support approximately 22,500 new homes
in the Mount Roskill, Māngere, Northcote and Oranga areas. This rapid
growth is expected to continue in future in other parts of Auckland.
11. The council
has a key role to play in the delivery of the Auckland Housing Programme. the
council is involved with the programme both as a significant land owner, an
asset manager and a regulator of development.
12. The council
supports HLC’s intended developments as these are aligned with our
Development Strategy and the Auckland Plan 2050 direction to ‘accelerate
the construction of homes that meet Aucklanders’ changing needs and
preferences.’
Tātaritanga me ngā
tohutohu
Analysis and advice
Provision of stormwater infrastructure
13. Housing
developments require appropriate stormwater infrastructure to be in place to
service development.
14. HLC has
established an Alliance to design, consent and construct infrastructure to
support housing development. The Alliance is capable of designing,
consenting and building infrastructure work at scale and pace in a
collaborative and highly effective framework.
15. Healthy
Waters and HLC have entered into a Memorandum of Understanding to confirm how
the parties will work together to ensure good quality stormwater outcomes are
delivered through the Auckland Housing Programme.
Memorandum of Understanding between Healthy Waters and HLC
16. Key terms of
the Memorandum of Understanding include that the parties will work together:
· to
develop stormwater strategies and plans which benefit both parties;
· to
identify the most appropriate technical stormwater solutions to support
achievement of both parties’ objectives
· to
deliver stormwater projects
· to
ensure any agreed outcomes do not result in statutory, regulatory, or
commercial compliance issues for either party
· to
ensure that all stormwater contracts between the parties are being managed
effectively
· to
identify, and resolve, issues and risks when they arise.
17. This approach
is well aligned to key strategic objectives for the council’s Healthy
Waters department. These include supporting growth, proactive and genuine
engagement with partners and delivering well planned, programmed and
prioritised capital works.
Stormwater infrastructure work programme for HLC
18. A detailed
work programme for public stormwater infrastructure works to be delivered by
HLC has not yet been developed. However, the Memorandum of Understanding
foreshadows that the parties will work together on the following projects:
· Tonar
Pipeline: This is a large trunk stormwater pipe that will support the
growth of the whole Northcote precinct.
· Awataha
Greenway. This is a placemaking linear greenway connecting the Northcote
town centre to residential development areas. The project also provides a flood
management function and stream daylighting opportunity.
· Northcote
local pipe improvements. HLC require local reticulation upgrades to enable
developments. These local pipelines will also support other third-party
development.
19. A more
detailed work programme will be agreed between the parties as HLC’s
development plans for the Auckland region are confirmed.
20. Options for
procuring stormwater infrastructure works to support the Auckland Housing
Programme will be discussed in the confidential section of the 3 April 2019
Strategic Procurement Committee meeting.
Ngā whakaaweawe me
ngā tirohanga a te rōpū Kaunihera
Council group impacts and views
21. HLC and
Auckland Council are liaising with other members of the council family such as
Auckland Transport, Watercare and Panuku to identify opportunities to deliver
multiple infrastructure requirements concurrently.
22. HLC are also
liaising with other members of the council family in relation to streamlining
infrastructure development processes and other operational issues.
Ngā whakaaweawe
ā-rohe me ngā tirohanga a te poari ā-rohe
Local impacts and local board views
23. The
Memorandum of Understanding between HLC and Healthy Waters will ensure that
development of stormwater infrastructure is well integrated with other aspects
of local housing developments. This will have various benefits for local
communities including reducing the disruption from construction and time taken
to complete housing developments.
24. Local boards
will be consulted on any significant Auckland Housing Programme developments in
their area, including in relation to public stormwater infrastructure.
Tauākī whakaaweawe
Māori
Māori impact statement
25. Provision of
affordable housing and construction of effective stormwater infrastructure are
both issues that are of high significance to mana whenua.
26. Appropriate
engagement with mana whenua will be undertaken on any Auckland Housing
Programme project where significant public stormwater infrastructure assets
will be constructed. This engagement may be delivered by either Auckland
Council or HLC, depending on the nature of the project.
27. Healthy
Waters will ensure that any stormwater assets constructed through these
developments continue to be well maintained, contributing to water quality
benefits desired by Māori.
Ngā ritenga
ā-pūtea
Financial implications
28. Financial
implications of procuring stormwater infrastructure works to support the
Auckland Housing Programme will be discussed in the confidential section of the
3 April 2019 Strategic Procurement Committee meeting.
Ngā raru tūpono me
ngā whakamaurutanga
Risks and mitigations
29. Risks arising
from procuring stormwater infrastructure works to support the Auckland Housing
Programme will be discussed in the confidential section of the 3 April 2019
Strategic Procurement Committee meeting.
Ngā koringa ā-muri
Next steps
30. Next steps
related to procuring stormwater infrastructure works to support the Auckland
Housing Programme will be discussed in the confidential section of the 3 April
2019 Strategic Procurement Committee meeting.
Ngā tāpirihanga
Attachments
There are no attachments for
this report.
Ngā kaihaina
Signatories
|
Authors
|
Carl Hewison – Principal, Construction
Management
Shaun McAuley - Development and Negotiations Team
Manager
|
|
Authorisers
|
Craig McIlroy – General Manager Healthy Waters
Barry Potter - Director Infrastructure and
Environmental Services
Jazz Singh - General Manager Procurement
|
|
Strategic
Procurement Committee
03 April 2019
|
|
Information Report - 3 April 2019
File No.: CP2018/25286
Te take mō te
pūrongo
Purpose of the report
1. To
note progress on the forward work programme (Attachment A).
Whakarāpopototanga matua
Executive summary
2. This
is the regular information-only report which aims to provide public visibility
of information circulated to committee members via memo or other means, where
no decisions are required.
3. Note
that, unlike an agenda decision report, staff will not be present to answer
questions about these items referred to in this summary.
|
Ngā tūtohunga
Recommendation/s
That the Strategic Procurement
Committee:
a) receive
the information report – 3 April 2019.
|
Ngā tāpirihanga
Attachments
|
No.
|
Title
|
Page
|
|
a⇩ 
|
Strategic Procurement Committee Forward Work Programme
- 3 April 2019
|
21
|
Ngā kaihaina
Signatories
|
Authors
|
Michelle Judge - Governance Advisor
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Authorisers
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Jazz Singh - General Manager Procurement
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Strategic
Procurement Committee
03 April 2019
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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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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
Apr-Jun
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1. Delivery
on Annual Plan outcomes (Contracts to be awarded)
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1.1
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Healthy
Waters panel refresh and strategy and professional services panel
consolidation strategy
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Approval
of the Healthy Waters Physical Works & Technical Services Procurement
Strategy
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Decision: Receive update and
approve the strategy
Report
to be provided in Q4 2019
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Q4
Apr 19
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1.2
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Stormwater
infrastructure to support the Auckland Housing Programme
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Approve
the supplier recommendation for stormwater infrastructure to support the
Auckland Housing Programme
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Decision:
Approve
supplier recommendation
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Q4
Apr 19
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1.3
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Picton
Street stormwater project
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To
reduce stormwater runoff to the combined sewer network and overflow volumes
from the Wynyard Wharf outfall
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Decision: Approve supplier
recommendation
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$22.5M
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Q4
May 2019
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1.4
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Daldy
Street stormwater outfall project
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Approve
the supplier recommendation for the Daldy Street stormwater outfall project
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Decision: update provided at the 6
March 2019 meeting Resolution number STR/2019/15
– Item 10
Supplier
recommendation and approve award of contract
Next
report to be provided in April 2019.
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Q4
May 2019
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1.5
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America’s
Cup 36 progress update
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Provide
an update on procurement of the infrastructure needed to host the 36th
America’s Cup
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Receive:
progress
update
Update
received at the 6 March 2019 meeting Resolution number STR/2019/13 – Item 8
Next
update will be considered in Q4 2019
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$212m
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Q4
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1.6
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Food
scraps processing, caddies and food waste bins
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Award
contract for food waste process services, caddies and bins
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Progress to date:
Decision
taken to
approve the procurement plan for food waste process services at 11 July
2018 meeting
Resolution
number STR/2018/37 – Item C2
Next
report to be provided in Q4 2019.
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Q4
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1.7
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Waiheke
Island Waste Services
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Approve
procurement plan for all Waste Services for Waiheke Island
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Progress to date:
Decision: Approve procurement
plan.
Decision: Approved contract
extension at 11 July 2018 meeting.
Update
provided at the 11 July 2018 meeting, Resolution number STR/2018/41
– Item 11 and Resolution number
STR/2018/36 – item C1
Decision: Approve awarding of
contract.
Next
report will be considered in Q1 2020 (September).
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Q1
2020
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2. Review
delivery of Capital Projects
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2.1
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Capital Project Delivery
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Elected
member oversight of progress of Major Projects, including update on the
strategy for procurement of city centre development programme and pipeline of
forward works.
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Receive: no decision required
Progress to date:
Update
received at 6 September 2017 meeting Resolution number STR/2017/37 - Item C2.
Update
received at 13 December 2017 meeting Resolution number STR/2017/61 - Item C6.
Update
received at 7 March 2018 meeting Resolution number STR/2018/11- Item C2.
Update
received at 11 June 2018 meeting Resolution number STR/2018/32 – Item
C1
Update
received at 5 September 2018 meeting Resolution number STR/2018/54 –
Item C1
Update
received at 7 November 2018 meeting Resolution number STR/2018/80 –
Item C2
Next
update will be considered in February 2019.
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Q4
Jun 19
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2.2
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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: no decision required
Progress to date:
Update
received at 11 June 2018 meeting – Resolution number STR/2018/25
– Item 10
Update
received at 3 October 2018 meeting – Resolution number STR/2018/61
– Item 9
Next
update to be provided in Q4 2019
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Q4
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2.3
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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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Receive:
no
decision required
Progress to date:
Update
received at the 7 March 2018 meeting Resolution number STR/2018/11- Item C2.
Update
received at 11 June 2018 meeting Resolution number STR/2018/34- Item C3
Update
received at 8 August 2018 meeting Resolution number STR/2018/38 – Item
C1
Update
received at 5 September 2018 meeting Resolution number STR/2018/56 –
Item C3
Update
received at 3 October 2018 meeting Resolution number STR/2018/66 – Item
C1
Update
received at 7 November 2018 meeting Resolution number STR/2018/81 –
Item C3
Update
received at 12 December 2018 meeting Resolution number STR/2018/91 –
Item C4
Next
update to be provided in Q3 2019
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Q4
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3. Endorse
Procurement Category Strategies
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See completed section below.
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4. Enhance
Group Sourced Procurement
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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.
Update
received at the 7 November 2018 meeting – Resolution number STR/2018/75
Decision:
approve
business plan
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Q4
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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
Update
received at the meeting on 8 August 2018 Resolution number STR/2018/42
– Item 9
Update
received at the meeting on 7 November 2018 Resolution number STR/2018/76
– Item 13
Receive:
no
decision required
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Q4
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5. Improve
Procurement Maturity
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See completed
section below.
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6. Other
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6.1
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Valuation
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To
consider rating valuations
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Decision:
approval
of proposed commercial opportunity.
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Q4
Apr 19
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6.2
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Review of Contract performance
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Update the Committee on the
performance of suppliers against key performance metrics under the Full
Facilities Maintenance contracts
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Progress to date:
Update
received at the 2 May 2018 meeting Resolution number STR/2018/21– Item C2
Update received at the 7 November
2018 meeting Resolution number STR/2018/82
– Item C4
Update: No decision required. Next update to
be provided at April 2019 meeting
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Q4
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6.3
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Full Facility agreement transfer of
streetscape and waste solutions services
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To seek approval for the variation
of the current Full Facility agreements to transfer the streetscape services
from Auckland Transport and Waste Solutions to Community Facilities.
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Progress to date:
Decision: approval of transfer.
Update received at 12 December 2018
meeting Resolution number STR/2018/89 – Item C2
Next update to be provided in Q4
2019.
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Q4
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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.
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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
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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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1.10
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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
Resolution
number STR/2018/79 – Item C1
Decision: approved awarding of
contract at the 7 November 2018 meeting
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1.11
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City
Centre Development
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Provide
an update on the strategy for procurement of city centre development
programme and pipeline of forward works
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Updates
will now be provided as part of the update on Capital Project Delivery.
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1.12
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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
Decision
taken to approve awarding of contract at the 7 November 2018 meeting
Resolution
number STR/2018/79 – Item C1
Next
update to be provided in April 2019 through the $5 million project report.
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1.13
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St
Marys Bay Outfall construction contract
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St
Marys Bay and Masefield Beach improvement project
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Decision: Supplier recommendations
for the first phase of construction
Report
provided to the 6 March 2019 meeting Resolution number STR/2019/14 - Item 9
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1.14
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Procurement
plan for waste collection services
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Procurement
plan for waste collection services
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Decision: To recommend the waste
collections procurement plan to Finance and Performance for approval,
incorporating feedback from the Value for Money review on the future of waste
services
Update
provided to the 6 March 2019 meeting Resolution number STR/2019/16 - Item 11
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1.16
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Graffiti
Eradication and Enforcement Services
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Graffiti
Contracts
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Update
provided at the
6 March 2019 meeting Resolution number STR/2019/19 – Item C1
Receive
update on graffiti contracts
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3. Endorse
Procurement Category Strategies
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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
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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
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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.
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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
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Create
a plan for engaging the market to purchase ICT Hardware.
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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
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3.4
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ICT Software
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Create
a plan for engaging the market to purchase Software.
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Update
received at 11 June 2018 meeting – Resolution number STR/2018/24
– Item 9
Decision:
agree to
endorse the Software Procurement Category Strategy
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3.5
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Vertical
Construction Category Strategy
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Development
of the overall strategy for vertical construction and building
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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
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3.6
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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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Decision:
update
received at 12 December 2018 meeting – Resolution number STR/2018/91
– Item 10
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3.7
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Professional
Technical Services
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Implementation
of professional technical services category
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Receive:
No
decision required – update from approved strategy by T&P 2016
Update
received at 3 October Strategic Procurement Committee meeting –
Resolution number STR/2018/63 – Item 11
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3.8
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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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4. Enhance
Group Sourced Procurement
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4.1
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Sustainable
Procurement Framework
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Give
effect to principles to be agreed in Group Procurement Policy
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Update
provided at the December 2017 meeting. Resolution number STR/2017/53 Item 9
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5. Improve
Procurement Maturity
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5.1
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Ariba
update
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Update
Committee on implementation of procurement enabling technology
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Update
provided at the October 2017 meeting Resolution number STR/2017/4 – Item 11
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6. Other
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6.1
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Update
on Waste Solutions contracts
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Update
the Committee on the current state of all waste contracts prior to the
preparation of the Waste Solutions Procurement Strategy
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Update
provided at the October 2017 meeting Resolution number STR/2017/41- Item 10 and Resolution number
STR/2017/46 – item C2
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6.2
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Review
of Contract performance
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Update
the Committee on the performance of suppliers against key performance metrics
under the Full Facilities Maintenance contracts
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Receive:
No
decision required. Update provided at May 2018 meeting, Resolution number STR/2018/21 – item C2
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6.3
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Full
Facility agreement transfer of streetscape and waste solutions services
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To
seek approval for the variation of the current Full Facility agreements to
transfer the streetscape services from Auckland Transport and Waste Solutions
to Community Facilities.
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Decision: approval of transfer.
Update
received at 12 December 2018 meeting Resolution number STR/2018/89 –
Item C2
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6.4
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ICT Technology Services
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Seek approval for the transfer of existing
datacentre service to a new multi-cloud environment.
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Decision: approval of transfer.
Update received at 12 December 2018
meeting Resolution number STR/2018/90 – Item C3
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Strategic
Procurement Committee
03 April 2019
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Exclusion of the Public: Local Government Official Information
and Meetings Act 1987
That the Strategic
Procurement Committee
a) exclude
the public from the following part(s) of the proceedings of this meeting.
The general
subject of each matter to be considered while the public is excluded, the
reason for passing this resolution in relation to each matter, and the specific
grounds under section 48(1) of the Local Government Official Information and
Meetings Act 1987 for the passing of this resolution follows.
This resolution
is made in reliance on section 48(1)(a) of the Local Government Official
Information and Meetings Act 1987 and the particular interest or interests
protected by section 6 or section 7 of that Act which would be prejudiced by
the holding of the whole or relevant part of the proceedings of the meeting in
public, as follows:
C1 CONFIDENTIAL:
Strategy for procuring healthy waters physical works and technical services
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Reason for
passing this resolution in relation to each matter
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Particular
interest(s) protected (where applicable)
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Ground(s)
under section 48(1) for the passing of this resolution
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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.
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s7(2)(i) -
The withholding of the information is necessary to enable the local authority
to carry on, without prejudice or disadvantage, negotiations (including commercial
and industrial negotiations).
In
particular, the report contains commercially sensitive information that might
prejudice's council position in negotiations with suppliers.
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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.
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C2 CONFIDENTIAL:
Supplier recommendations for stormwater infrastructure to support the Auckland
Housing Programme
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Reason for
passing this resolution in relation to each matter
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Particular
interest(s) protected (where applicable)
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Ground(s)
under section 48(1) for the passing of this resolution
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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.
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s7(2)(i) -
The withholding of the information is necessary to enable the local authority
to carry on, without prejudice or disadvantage, negotiations (including
commercial and industrial negotiations).
In
particular, the report contains commercially sensitive information that could
prejudice council's position in negotiations with infrastructure suppliers.
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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.
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C3 CONFIDENTIAL:
Property valuation services procurement plan
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Reason for
passing this resolution in relation to each matter
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Particular
interest(s) protected (where applicable)
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Ground(s)
under section 48(1) for the passing of this resolution
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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.
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s7(2)(b)(ii)
- The withholding of the information is necessary to protect information
where the making available of the information would be likely unreasonably to
prejudice the commercial position of the person who supplied or who is the
subject of the information.
In
particular, the report contains commercially sensitive information that could
prejudice the council's position in negotiations with third parties and
suppliers.
s7(2)(i) -
The withholding of the information is necessary to enable the local authority
to carry on, without prejudice or disadvantage, negotiations (including
commercial and industrial negotiations).
In
particular, the report contains commercially sensitive information that could
prejudice the council's position in negotiations with third parties and
suppliers.
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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.
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