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

Date: Time: Meeting Room: Venue:	Tuesday, 30 August 2022 2.00 pm This meeting will be held remotely and a recording of the meeting will be available on: https://www.aucklandcouncil.govt.nz/about-auckland-council/howauckland-council-works/meetings-council-bodies/Pages/webcastscouncil-meetings.aspx
Kōmiti Mahi Āta Torotoro Rawa / Strategic Procurement Committee OPEN AGENDA

MEMBERSHIP

Chairperson	Cr Greg Sayers
Deputy Chairperson	Cr John Watson
Members	Cr Dr Cathy Casey
	Deputy Mayor Cr Bill Cashmore
	Cr Linda Cooper, JP
	Cr Alf Filipaina, MNZM
	Cr Tracy Mulholland
	IMSB Member Karen Wilson
Ex-officio	Mayor Hon Phil Goff, CNZM, JP

(Quorum 4 members)

Maea Petherick

Kaitohutohu Mana Whakahaere Matua / Senior Governance Advisor

24 August 2022

Contact Telephone: 021417830

Email: maea.petherick@aucklandcouncil.govt.nz

Website: www.aucklandcouncil.govt.nz

Terms of Reference

Responsibilities

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

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

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

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

The committee has responsibility for:

· awarding of contracts of $22.5 million or greater

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

· oversight over the procurement processes and procedures.

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

Powers

All powers necessary to perform the committee’s responsibilities.

Except:

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

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

(c)        power to establish sub-committees.

Code of conduct

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

Exclusion of the public – who needs to leave the meeting

Members of the public

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

Those who are not members of the public

General principles

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

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

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

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

Members of the meeting

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

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

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

Independent Māori Statutory Board

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

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

Staff

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

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

Local Board members

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

Council Controlled Organisations

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

Strategic Procurement Committee 30 August 2022

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                                       8

8          Supplier recommendation for the Materials Recovery Facility services                                  9

9          Summary of Strategic Procurement Committee Information - updates, memos and briefings (including the forward work programme) 30 August 2022                                                         17

10        Consideration of Extraordinary Items

PUBLIC EXCLUDED

11        Procedural Motion to Exclude the Public                           27

C1       CONFIDENTIAL: Supplier recommendation for the Materials Recovery Facilities services      27

1          Apologies

An apology from Mayor P Goff has been received.

2          Declaration of Interest

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

3          Confirmation of Minutes

That the Strategic Procurement Committee:

a) confirm the ordinary minutes of its meeting, held on Tuesday, 2 August 2022, including the confidential section, as a true and correct record.

4          Petitions

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

5          Public Input

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

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

6          Local Board Input

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

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

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

7          Extraordinary Business

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

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

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

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

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

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

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

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

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

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

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

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

Strategic Procurement Committee 30 August 2022

Supplier recommendation for the Materials Recovery Facility services

File No.: CP2022/09968

Te take mō te pūrongo

Purpose of the report

1.       To provide an update on the supplier recommendation for the Materials Recovery Facility services contract.

Whakarāpopototanga matua

Executive summary

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

3.       Visy Recycling MRFs (NZ) Ltd currently owns and operates the Materials Recovery Facility in Onehunga, under a build-own-operate-transfer contract with the council which began in 2008. The contract expires on 30 June 2024 at which time the facility also transfers to council ownership.

4.       On 28 September 2021 the Strategic Procurement Committee approved a procurement plan to seek a supplier, via the open market, to provide MRF services for a 10-year period from 1 July 2024 (resolution STR/2019/23).

5.       A review of MRF ownership and contract delivery options was undertaken in 2021, with the recommendation being for the council to retain ownership of the asset from 1 July 2024, alongside delivering the MRF services via a new services contract. Retaining council ownership reflects the continued primary function of the facility to process the council’s kerbside recycling materials (currently over 95 per cent of all materials processed) and aligns with the council being the recipient of a $16.6 million government grant for MRF upgrades (scheduled to be completed in 2022).

6.       The asset ownership arrangements and contract model are the two main changes from the existing build-own-operate-transfer MRF contract.

7.       Under the new contract, the scope of services will also be enhanced to encourage achievement of broader sustainable social, environmental, cultural and economic outcomes. The key objectives of the MRF services contract are to:

·        provide value for money

·        maximise recovery and value of recyclables

·        support local processing and stimulate innovation in local recycling market

·        minimise risk to council

·        minimise the environmental impact of the facility, and

·        give effect to the council’s strategic objectives.

8.       To procure the MRF services, staff first began with soft market engagement in mid-2021 which was followed by issuing a notice of information to the market on 29 October 2021. A request for proposals was released on 3 December 2021 and closed on 4 March 2022.

9.       Multiple proposals were received, and each evaluated against the following five non-price attributes: relevant experience, methodology, resources, sustainability, and Māori outcomes. Pricing was assessed and scored separately. More detail regarding the supplier recommendations for the contract is provided in the confidential section of the 30 August 2022 Strategic Procurement Committee meeting.

Ngā tūtohunga

Recommendations

That the Strategic Procurement Committee:

a)      note that the information contained in this report, on supplier recommendations for the Materials Recovery Facility services contract, 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

Current Materials Recovery Facility operation

10.     Visy Recycling MRFs (NZ) Ltd currently owns and operates the Materials Recovery Facility (MRF) in Onehunga under a build-own-operate-transfer contract with council. The facility processes all co-mingled recyclable materials from household kerbside collections which are provided by council under separate collection contracts.

11.     All of the co-mingled recyclable material delivered to the facility gets sorted into different material types and then sold and transported to end-markets for beneficial use.

12.     As the facility owner and operator, Visy is responsible for securing and transporting all sorted recyclable materials to domestic or international commodity markets. All glass is processed in New Zealand, as well as some plastic materials. Metals and paper/cardboard materials are typically sent to markets overseas.

13.     The facility processed 132,300 tonnes during the 2021/2022 financial year. Approximately three per cent of the material processed at the MRF comes from Visy’s own commercial customers, for example, material collected from commercial businesses in Auckland and from other New Zealand councils. Approximately 14 per cent of material received at the facility was not recyclable (due to contamination) and required disposal to landfill.

14.     The existing contract began in 2008 and expires on 30 June 2024.

15.     Further detail on the current operation of the Materials Recovery Facility is provided in the confidential report to the Strategic Procurement Committee meeting agenda for 30 August 2022.

Upgrades to Materials Recovery Facility

16.     In response to changes in global recycling markets affecting commodity prices and the need to invest in nationally significant recycling infrastructure, the council received $16.6 million in 2021 from the Ministry for the Environment’s COVID-19 Response and Recovery Fund to upgrade the Onehunga Materials Recovery Facility.

17.     The upgrades will be completed in 2022 and are designed to result in higher quality separated materials, an increase in processing capacity, and separating cardboard and additional plastic types.

18.     The upgrade project is set up as a separate procurement and is being undertaken operationally within the Chief Executive’s delegated authority. It does not directly impact the Materials Recovery Facility services procurement.

Strategic context for the Materials Recovery Facility operation

19.     The operation of the facility and associated services sits within the strategic context of Te Mahere Whakahaere me te Whakaiti Tukunga Para i Tāmaki Makaurau – Auckland Waste Management and Minimisation Plan 2018 which is guided by the vision that ‘Auckland aspires to be Zero Waste by 2040, taking care of people and the environment and turning waste into resources.’ The operation also aligns with key priorities of Te Tāruke-ā-Tāwhiri: Auckland's Climate Plan, including Action E6, “manage our resources to deliver a zero waste, circular economy”.

20.     The end of the current contract presents an opportunity to enhance the existing operation to better reflect changing global and local contexts and improve alignment of the service with key strategic council plans and strategies.

21.     Over the next contract term, global and local changes across the recycling sector are expected, including the following:

·        advancements in recycling infrastructure and technology

·        evolving national and international waste policy

·        changes in packaging designs and trends

·        volatility with global recycling markets, and

·        ongoing impacts from COVID-19 (for example, restrictions with shipping).

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

Rationale for council ownership of the Materials Recovery Facility and services contract

23.     At the end of the existing contract, the facility’s assets will transfer, in good working order, from Visy’s ownership to the council’s at no further cost.

24.     In 2021, council staff together with consultants Morrison Low analysed different asset ownership options, alongside contract delivery arrangements for ongoing services.

25.     The outcome from a weighted multi-criteria assessment and a risk assessment analysis was the recommendation for the council to retain ownership of the asset from 1 July 2024, alongside delivery of Materials Recovery Facility services via a services agreement. This was recommended for the following reasons:

·        a commercial agreement can capture the right operating model without the need for a transfer of assets via a lease

·        it holds potentially less risk for the council in terms of a gradual degradation of the assets over time

·        it better reflects the continued primary function of the facility to process the council’s kerbside recycling collections (over 95 per cent of the material processed) and builds on the significant capital investment provided to the council by the government ($16.6 million) for scheduled asset upgrades.

26.     A contract that encourages operational and financial transparency (open-book) was recommended as the best mechanism to capture the mix of asset contributions and service offerings that the council and a facility operator would bring to the relationship. It also supports an appropriate governance arrangement and service reviews are at the core of the arrangement, so that the relationship and commercial model can develop and flex over time.

27.     The new contract model also covers all asset maintenance and investment in new assets and limits the term of the contract to 10 years, with regular commercial and operational reviews and adjustment to deal with a potentially changing environment.

Open-market procurement approach

28.     On 28 September 2021, the Strategic Procurement Committee approved a procurement plan to seek a supplier for the Materials Recovery Facility services via the open market (resolution STR/2019/23).

29.     An open tender approach was recommended because it carried fewer reputational, financial, and strategic risks to the council compared with direct negotiation with the incumbent. It also created competition within a limited market and ensured that the council’s Sustainable Procurement and Kia Ora Tāmaki Makaurau frameworks were incorporated into the procurement process.

30.     The key objectives of the procurement for MRF services are:

·        provide value for money to Auckland communities, ratepayers and customers

·        maximise the recovery and value of recyclable materials delivered to the MRF

·        support local processing and stimulate innovation in local recycling markets

·        minimise risk to the council

·        minimise the facility’s environmental impact; and

·        give effect to the council’s strategic objectives relating to:

o   Sustainable Procurement Framework

o   Kia Ora Tāmaki Makaurau

o   Te Tāruke-ā-Tāwhiri: Auckland's Climate Plan

o   Te Mahere Whakahaere me te Whakaiti Tukunga Para i Tāmaki Makaurau – Auckland Waste Management and Minimisation Plan 2018.

Tātaritanga me ngā tohutohu

Analysis and advice

Open-market response and proposal evaluation

31.     Proposals were received from multiple participants.

32.     Five proposals were received with four that conformed to the requirements of the request for proposals and passed the health and safety criteria. These four progressed to an evaluation process.

33.     Five subject matter experts from council and one independent consultant evaluated the proposals. Each proposal was evaluated for non-price attributes to ensure the desired social, cultural and environmental outcomes could be met by the participant. Pricing was assessed and scored separately.

34.     Negotiations were undertaken with preferred suppliers between March 2022 and June 2022. The negotiations aimed to obtain the best value for money over the life of the contract, with a focus on the procurement’s key objectives and council’s Sustainable Procurement Framework and Kia ora Tāmaki Makaurau goals.

35.     Analysis and advice regarding the supplier recommendations will be provided in the confidential section of the 30 August 2022 Strategic Procurement Committee meeting.

Tauākī whakaaweawe āhuarangi

Climate impact statement

36.     In 2021/2022, the facility enabled 115,000 tonnes of material to be diverted from landfill and subsequently processed by local and off-shore recycling markets. The diversion of these materials from local landfills contributes to the avoidance of greenhouse gas emissions, in particular fibre-based materials which make up 40 per cent of total annual tonnages processed at the facility.

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

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

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

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

41.     Further information regarding the climate impacts of the services contract is included in the confidential section of the 30 August 2022 Strategic Procurement Committee meeting.

Ngā whakaaweawe me ngā tirohanga a te rōpū Kaunihera

Council group impacts and views

42.     The Materials Recovery Facility services contract will not have significant impacts on other members of the council group. Waste Solutions will consult with the relevant council-controlled organisations, such Eke Panuku Development Auckland (landlord), if any significant impacts are identified.

43.     The services contract is expected to involve resource from several departments within the council beyond Waste Solutions. Waste Solutions will manage the contract and maintain close relationships with all relevant departments, including Finance, Ngā Mātārae, Legal and Communications, to ensure the new contract is fully implemented.

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

Local impacts and local board views

44.     The continued operation of the Onehunga Materials Recovery Facility under the new contract will enable council’s kerbside recyclables to continue to be sorted and on-sold to end-markets. This aligns with the council’s long term strategic goals, including local employment and economic development, circular economies, and zero waste.

45.     The current facility relies heavily on competitive overseas markets for the processing of recyclable materials (e.g. fibre and metals), as well as some local markets for certain materials (e.g. Visy Glass in Penrose and Pact Group for plastics in Auckland and Wellington). Visy also depends on other local and New Zealand-based businesses for various trades and services that assist with the Onehunga operation.

46.     The future operation will continue to support these sectors. One of the key objectives of the new services contract is to support and stimulate innovation in local processing markets, as well as support local economic development and employment opportunities for targeted communities.

47.     Consultation with local boards has not been undertaken regarding the specific recommendation in this report. While the MRF is located in Onehunga within the Maungakiekie-Tāmaki local board area, it services the wider Auckland region and beyond.

48.     Consultation on Te Mahere Whakahaere me te Whakaiti Tukunga Para i Tāmaki Makaurau – Auckland Waste Management and Minimisation Plan 2018 indicated that all local boards broadly supported the direction of the plan, including specific actions relating to the continuity of kerbside recycling services. Further, the outcomes of this procurement support specific goals in a number of local board plans in regard to waste minimisation, recycling and climate change.

Tauākī whakaaweawe Māori

Māori impact statement

49.     Waste Solutions staff initiated a process in 2021 to provide for responsive and meaningful outcomes to Māori through the MRF services procurement process and in the drafting of the MRF services contract.

50.     A Māori Outcomes discussion document, relating to the MRF services, was developed and workshopped during meetings held from March 2021 through to August 2021 with staff from Ngā Mātārae, the Independent Māori Statutory Board, social procurement subject matter experts and Waste Solutions.

51.     The initial meetings and discussions resulted in the identification of the following five Māori outcome areas, or mahi objectives, that the MRF services has the potential to deliver on, as based on council’s Kia Ora Tāmaki Makaurau framework:

·        Kia ora te Umanga (Māori business, tourism and employment)

·        Kia ora te Taiao (Kaitiakitanga / Environment)

·        Kia ora te Hononga (Effective Māori Participation)

·        Kia ora te Reo Māori

·        Kia ora te Ahurea (Identity and Culture).

52.     Building on workshop outcomes and continued guidance from Ngā Mātārae, the procurement team presented to the Infrastructure and Environmental Services Mana Whenua Operational Kaitiaki Forum in August 2021. The purpose of the presentation was to seek:

·        input from interested members of the forum to view the operation and workshop any environmental concerns and options to mitigate these through the procurement

·        guidance on how to best make known the business/investment opportunity that exists with the procurement to mana whenua and iwi.

53.     Subsequently, three representatives from the Infrastructure and Environmental Services Mana Whenua Operational Kaitiaki Forum attended a virtual site-visit to the MRF in November 2021. The COVID-19 restrictions introduced in late August 2021 meant the site visit was delayed and, as restrictions continued, a virtual visit was arranged instead. 

54.     Further, during the soft-market engagement phase in mid-2021, the procurement team worked with Amotai to actively seek out potential Māori-owned businesses interested in the procurement. Given the highly specialised services sought and global nature of recycling markets, no Māori-owned business or organisation could be identified who could provide the full scope of services.

55.     Once the Notice of Information was released to the market in October 2021, Amotai further engaged with Māori businesses across their network to stimulate responses to council’s Request for Proposals.

56.     Further information regarding Māori outcomes is included in the confidential section of the 30 August 2022 Strategic Procurement Committee meeting.

Ngā ritenga ā-pūtea

Financial implications

57.     The budget for Materials Recovery Facility services was approved through the 10-year Budget 2021-2031.

58.     The service will continue to be funded from the waste targeted rate.

59.     Financial implications arising from the procurement of the services contract will be provided in the confidential section of the 30 August 2022 Strategic Procurement Committee meeting.

Ngā raru tūpono me ngā whakamaurutanga

Risks and mitigations

60.     Risks and mitigations arising from the procurement of the Materials Recovery Facility services contract are provided in the confidential section of the 30 August 2022 Strategic Procurement Committee meeting.

Ngā koringa ā-muri

Next steps

61.     Once the Strategic Procurement Committee has considered the supplier recommendation, staff will finalise procurement requirements and enter into a contract with the supplier.

62.     Once contracts are signed, staff will work towards the implementation of the new contract starting on 1 July 2024.

Ngā tāpirihanga

Attachments

There are no attachments for this report.     

Ngā kaihaina

Signatories

Authors	Terry Coe – Project Delivery Manager, Waste Enterprises & Refuse Paula Nicolini – Procurement Manager, Operations Procurement
Authorisers	Barry Potter - Director Infrastructure and Environmental Services Parul Sood – General Manager, Waste Solutions Jazz Singh - General Manager Procurement

Strategic Procurement Committee 30 August 2022

Summary of Strategic Procurement Committee Information - updates, memos and briefings (including the forward work programme) 30 August 2022

File No.: CP2022/12561

Te take mō te pūrongo

Purpose of the report

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

Whakarāpopototanga matua

Executive summary

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

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

Ngā tūtohunga

Recommendation/s

That the Strategic Procurement Committee:

a)      tuhi ā-taipitopito / note the progress on the forward work programme appended as Attachment A of the agenda report.

Ngā tāpirihanga

Attachments

No.	Title	Page
a⇩	Forward Work Programme	19

Ngā kaihaina

Signatories

Author	Maea Petherick - Kaitohutohu Mana Whakahaere Matua / Senior Governance Advisor
Authoriser	Jazz Singh - General Manager Procurement

Strategic Procurement Committee 30 August 2022

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

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

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

Area of work and Lead Department	Reason for work	Committee role (decision and/or direction)	Expected timeframes Highlight the month(s) this is expected to come to committee in 2022
			Jan	Feb	Mar	Apr	May	Jun	Jul	Aug	Sep
Materials Recycling Facility Operator Contract Waste Solutions	To procure a materials recycling facility operator. The current contracts expire on 30 June 2024.	Decision: Approval of supplier recommendations for the new material recycling facility operator. A report will be provided in August 2022. Progress to date: Procurement plan approved for the new material recycling facility operator on 28 September 2021 (Resolution number STR/2021/43).

Completed

Lead Department	Area of work	Committee Role (decision and/or direction)	Decision
Community Facilities	Full Facilities contract performance update To update the Strategic Procurement Committee on suppliers’ performance under Community Facilities’ arboriculture services, ecological services, and full facilities maintenance contracts.	To receive the Community Facilities full facilities contracts performance update for Financial Year 19/20.	Update received April 2022 (Resolution number STR/2022/20) The update was received in December 2020. (Resolution number STR/2020/26)
Community Facilities	Te Whau pathway shovel-ready funding project Environmental outcomes and better transport connectivity through walkways and pathways. Faster project delivery and construction to support multiple community outcomes using the shovel-ready funding. To provide an update on the progress of the project and amendments in scope if any from the previously approved procurement plan.	Approval of procurement plan to approach market for the main project works covered by the shovel-ready funding.	Procurement plan approved. Authority delegated to council’s chief executive to execute the procurement plan. Authority delegated to council’s chief executive to approve the supplier recommendation report, award of contract and approval of variations. (Resolution number STR/2020/20) Increase the contract award value for the Te Whau Pathway Physical Works approved Delegate authority to council’s chief executive to award and approve variations within contingency (Resolution number STR/2021/62)
Community Facilities	Electricity Network Resilience Tree and Vegetation Maintenance To procure tree pruning services on trees covering areas around powerlines within the Auckland Council region.	Approval of the supplier recommendations.	Procurement Plan approved Supplier recommendations for enhanced tree and vegetation maintenance around electricity network Delegate financial signing authority to council’s chief executive (Resolution STR/2021/52)
Community Facilities	Avondale Community Centre To approve procurement plan for Early Contractor Involvement engagement and construction of Avondale Community Centre	Approval of the procurement plan for Early Contractor Involvement phase and construction.	Procurement Plan approved Delegate authority to council’s chief executive to execute the procurement plan (resolution number  STR/2022/3). supplier for the Early Contractor Involvement contract and construction of the Avondale Library and Community Hub approved delegate authority to the Chief Executive to approve the award and signing of construction contracts (resolution number STR/2022/19)
Environmental Services	Biodiversity protection services delivered through the Natural Environment Targeted Rate – Category Strategy This procurement category strategy will support effective implementation of the council’s key services related to the natural environment targeted rate work programmes.	Endorsement of procurement category strategy for biosecurity protection services delivered through the Natural Environment Targeted Rate.	The Category Strategy was endorsed. (Resolution number STR/2020/4)
Environmental Services	Update on suppliers for the Retrofit Your Home panels To provide an update on the suppliers who were appointed to the Retrofit Your Home panels.	Establishment of supplier panels.	The establishment of the panels was approved. (Resolution number STR/2019/66)
Healthy Waters	Healthy Waters Maintenance contracts To provide effective operations and maintenance of the regional stormwater network. This contributes to managing and improving the health of Auckland’s harbours and waterways and responding to flooding events. This is council’s responsibility under the Regional Stormwater Network Discharge Consent.	Award contracts to recommended suppliers for Healthy Waters operations and maintenance contracts, and the regional maintenance of catchpits and treatment devices.	Procurement plan for operations and maintenance services for: the southern area of the Auckland region; regional maintenance of catchpits; regional maintenance of treatment devices. Overall strategy approved for procuring stormwater operations and maintenance services for the northern and central areas. (Resolution number STR/2019/67) Emergency Committee approved the awarding of the southern and regional maintenance contracts. (Resolution number EME/2020/14) Procurement plan approved for the operations and maintenance contract for the northern and central area of the Auckland region. (Resolution number STR/2020/10) Supplier recommendation report and award of contract approved for northern and central area of the Auckland region. (Resolution number STR/2021/11)
Healthy Waters	Update on suppliers for physical works and technical services panels To provide an update on the suppliers who were appointed to the Healthy Waters technical services and physical work panels.	Establishment of supplier panels.	The establishment of the panels was approved. (Resolution number STR/2019/25)
Healthy Waters	Healthy Waters Programme Delivery model With the growing requirements for Healthy Waters asset investments and increased capex budget to be delivered in future financial years, a more efficient and collaborative delivery model is required. Heathy Waters department is pursuing a sustainable and efficient delivery of the programme of capex projects for the next six years and beyond.	Approval of procurement plan and strategy to approach the market for Healthy Waters alternate programme delivery model.	Procurement plan and strategy to approach the market approved. (Resolution number STR/2021/35)
Healthy Waters	Corban Reserve Supplier recommendation To procure a contractor to deliver the project to divert stormwater flows from the 78-hectare Waitaro Stream catchment away from the existing culvert under the closed landfill site at Corbans Reserve by installing a new pipeline discharging to Opanuku Stream. The existing culvert under Corban Reserve is currently a high-risk asset due to the infiltration of landfill gas and leachate.	Approval of the supplier recommendation report.	Procurement Plan approved to approach market for tender (Resolution number STR/2021/12) Supplier recommendations approved Delegate council’s chief executive to carry out the award and signing of contract (Resolution STR/2021/53)
Healthy Waters	Clinker Place Stormwater network project To award a contract to deliver the project for Stormwater network from Clinker Place to Rankin Avenue and Ambrico Place to a proposed outfall in Manawa wetland reserve. This project supports the Special Housing Area development at Clinker Place.	Approval of the supplier recommendation report to award the construction contract after ECI phase.	supplier for Clinker Place stormwater project approved Delegate council’s chief executive to award contract and execute any necessary variations (Resolution number STR/2021/61)
Information Communication Technology	SAP Maintenance Agreement The current SAP maintenance agreement is due to expire at the end of December 2021. Procurement plan to approve direct negotiation with SAP.	Approval of procurement plan to directly negotiate with SAP.	Procurement plan to directly negotiate with SAP approved. (Resolution number STR/2021/45)
Legal and Risk	External Legal Services To procure external legal services. Current contracts expired in December 2020.	Award contracts to recommended suppliers for external legal services.	Extension of current legal contract for legal services approved. (Resolution number STR/2020/24) Procurement plan for new external legal contract/services approved. (Resolution number STR/2021/5) Supplier recommendations approved. (Resolution number STR/2021/21)
People and Capability	All of Government (AOG) Recruitment Panel To approve further budget, spend against AOG Recruitment panel.	Approval of contract variation to AOG Recruitment Panel.	Contract variation of AOG Agreement approved. (Resolution number STR/2021/44)
Procurement	SAP Licensing Renegotiation To re-negotiate current SAP agreement to better suit council’s current and future needs, and to better align with SAP’s commercial and technical roadmap.	Approval of contract variation for support and maintenance services for a 5-year period until December 2025.	A report was provided in December 2020. (Resolution number STR/2020/25)
Procurement	Group Procurement Policy To address recommendation 64 of the CCO Review which called for a revision of the council’s Group Procurement Policy to better mandate Group Procurement activity.	Noting revision of Group Procurement Policy.	Policy approved at the Finance and Performance Committee meeting. (Resolution number FIN/2021/61)
Regulatory Services	Building Consents overflow services variation approval for additional years With the increased demand in consenting services, a review is done across the various current suppliers’ services. To get service certainty and retention of key personnel, there is a need for providing certainty to the market with longer duration contracts and hence a variation approval is required for the current contracts to enable this	Approval of variation to increase the term of contract.	Right of renewal for the contracts for the Building Consent Service approved Estimated contracted spend over renewal period approved Delegate authority to chief executive to execute variations and extensions (resolution number STR/2021/60)
Waste solutions	Award of Waiheke waste services New waste services for Waiheke were procured in 2019 to deliver on the objectives on the Waste Management and Minimisation Plan 2018 and the Tīkapa Moana Hauraki Gulf Islands Waste Plan which is an appendix to the overall waste plan. Implementing these plans is a legislative requirement under the Waste Minimisation Act 2008.	Approval of procurement plan to approach the market for the new waste services for Waiheke Island.	Procurement plan approved for Waiheke waste services. (Resolution number STR/2019/3) Supplier recommendations for Waiheke waste services approved. (Resolution number STR/2019/69) A memo was sent in November 2019 to provide an update on the award of Waiheke waste services.
Waste Solutions	Inorganic services contract To procure an inorganics service, which is an action in the Waste Management and Minimisation Plan 2018: Working together for Zero Waste. Implementing the waste plan is a legislative requirement under the Waste Minimisation Act 2008.	Approval of procurement plan and supplier recommendation report for new inorganic contract/services commencing February 2022.	Procurement plan for new inorganic contract/services commencing February 2022 approved. (Resolution number STR/2020/19) Supplier recommendation report approved. (Resolution number STR/2021/19)
Waste Solutions	Extension to inorganic services contracts To allow time for a review of the current inorganics service, which is an action in the Waste Management and Minimisation Plan 2018: Working together for Zero Waste. Implementing the waste plan is a legislative requirement under the Waste Minimisation Act 2008.	To approve a one-year extension/variation with incumbent suppliers for the inorganic collection and inorganic processing contracts.	Procurement plan approved for the inorganic collection service, and the six-month extension of the current inorganic collection contracts. (Resolution number STR/2020/18)
Rates Valuations Rates, Valuations and Data Management	Auckland Council currently operates under a dual valuation service provider model for valuations. The overall objective of the Request for Proposal (RFP) is to streamline the valuations function to: ·    reduce operating costs ·    increase the quality of data, enabling future opportunities for commercialisation of valuation products increase the quality and consistency of data to ensure we can meet our legislative requirements.	Approval of supplier recommendation report.	Supplier recommendation report approved. (Resolution number STR/2022/23)
Microsoft Licensing Information Communication Technology	The Microsoft licensing reseller agreement expires in September 2022, and Auckland Council plans to approach the market again with Auckland Transport and Watercare.	Approval of supplier recommendation report.	Procurement Plan approved: (Resolution Number STR/2022/12) Supplier recommendation report approved (Resolution Number STR/2022/22)
Insurance Broker Treasury	Extension of existing contract	Approval of contract extension with incumbent	Contract Extension with incumbent approved: (Resolution Number STR/2022/32)
Victoria Linear Park streetscape upgrade Development Programme Office	Procurement Plan for construction of Victoria Linear Park streetscape upgrade along Victoria St from Albert St to Kitchener St aligning with CRL works	Approval of the procurement plan for construction.	Procurement Plan for construction approved: (Resolution number STR/2022/33)
Ports of Auckland Stormwater upgrade project Healthy Waters	Stormwater pipeline upgrade tunnelling project through Ports. Construction contract awarded.	Approval of variation to contract amount & additional contingency to the construction project and update on project status.	Variation to contract amount and additional contingency to the construction project and update on project status approved: (Resolution number STR/2022/30)
Manukau Hub construction Corporate Property	Construction contract award for Manukau Hub as part of Corporate Property WorkSmart programme	Update to the Committee on the recent construction contract award for Manukau Hub.	Update to Manukau Hub construction contract: (Resolution number STR/2022/34)

Strategic Procurement Committee 30 August 2022

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: Supplier recommendation for the Materials Recovery Facilities services

Reason for passing this resolution in relation to each matter	Particular interest(s) protected (where applicable)	Ground(s) under section 48(1) for the passing of this resolution
The public conduct of the part of the meeting would be likely to result in the disclosure of information for which good reason for withholding exists under section 7.	s7(2)(h) - The withholding of the information is necessary to enable the local authority to carry out, without prejudice or disadvantage, commercial activities. s7(2)(i) - The withholding of the information is necessary to enable the local authority to carry on, without prejudice or disadvantage, negotiations (including commercial and industrial negotiations). In particular, the report contains information that could prejudice the council's position with potential suppliers.	s48(1)(a) The public conduct of the part of the meeting would be likely to result in the disclosure of information for which good reason for withholding exists under section 7.