|
Revenue,
Expenditure and Value Committee
19 September
2023
|
|
Review
of the Forward Work Programme - Revenue, Expenditure and Value Committee
File No.: CP2023/09339
Te take mō te
pūrongo
Purpose of the report
1. To arotake / review and tuhi / note progress on the 2023 Revenue,
Expenditure and Value Committee forward work programme appended
as Attachment A of the agenda report.
Whakarāpopototanga matua
Executive summary
2. The
forward work programme for the Revenue, Expenditure and Value Committee adopted
by the committee at its meeting held on 18 April 2023 (Resolution number ECPCC/2023/18).
It was agreed that the forward work programme would be reported for information
and reviewed on a six-monthly basis.
3. All
committees have been requested to review their forward work programme, by the
end of September 2023.
4. Following
approval, all committee forward work programmes will be reported to the
Governing Body in April and October each year, for oversight as per the Terms
of Reference.
5. The current forward work programme for the Revenue, Expenditure and Value
Committee is appended as Attachment A.
6. Specific amendments
have been made as follows:
· any
new additions will be highlighted in red text
· any
deletions will be shown in strikethrough.
7. Following
the approval of the forward work programme, it will be reported to the
Governing Body, for oversight as per the Terms of Reference.
Ngā tūtohunga
Recommendation/s
That the Revenue, Expenditure
and Value Committee:
a) riro
/ receive and arotake / review the progress on the 2023 forward work programme
as appended in Attachment A of the agenda report.
b) whakaae
/ approve the updated forward work programme.
Ngā tāpirihanga
Attachments
|
No.
|
Title
|
Page
|
|
a⇩
|
Forward Work Programme
|
9
|
Ngā kaihaina
Signatories
|
Author
|
Duncan Glasgow - Kaitohutohu Mana Whakahaere Matua / Senior
Governance Advisor
|
|
Authoriser
|
Peter Gudsell - Group Chief Financial Officer
|
|
Revenue,
Expenditure and Value Committee
19 September
2023
|
|
Supplier recommendations for Talent
Acquisition Services
File No.: CP2023/13249
Te take mō te
pūrongo
Purpose of the report
1. To
tuhi ā-taipitopito / note
the information on the procurement process undertaken for external
recruitment agencies through the Ministry of Business, Innovation and
Employment (MBIE) using the All of Government (AoG) panel and a secondary
procurement process to establish a sub-panel of suppliers from the AoG MBIE
contract, for transparency ahead of the discussion in the confidential part of
the meeting.
Whakarāpopototanga matua
Executive summary
2. Auckland
Council (the council), Auckland Transport, Eke Panuku and Tātaki Auckland
Unlimited, known as the Auckland Council Group (the council group), have
sourced recruitment services using the AoG external recruitment services
contract via a secondary procurement process. This has involved the evaluation
of a subpanel of providers following an initial MBIE AoG recruitment panel
selection process.
3. The
council group has been party to an agreement with MBIE under the AoG Talent
Acquisition panel since 2013 to utilise the service of external recruitment
agencies. This is primarily to fulfil contingent workforce needs for frontline
roles that are required to be recruited at pace to ensure continuity of
services, and for the recruitment of specialist roles such as ICT. MBIE‘s
second generation contract was signed in 2017 and extended until September
2023. The second generation contract was similar to the first generation
contract, with minor updates to fees and terms.
4. Staff
came to the Expenditure Control and Procurement Committee in May 2023 to seek
approval to undertake the secondary procurement process with suppliers selected
from MBIE’s third generation contract (Resolution
number ECPCC/2023/29).
5. MBIE
received and evaluated 102 responses to their request for submissions for their
third generation contract. Council staff participated in the contract
preparation and the evaluations, which were probity checked by external
parties. The third generation contract respondents were evaluated on
recruitment methodology, knowledge, track record, continuity of service, post
placement care, innovation, diversity and inclusion. MBIE has announced that
their third generation contract for external recruitment services will start on
20 September 2023.
6. The
council group is now seeking approval of the sub-panel of suppliers from the
AoG MBIE contract following the secondary procurement process, with a
council-specific, cost-effective sourcing strategy to cater to our permanent
and temporary recruitment needs, and third-party payroll services. The
sub-panel does not commit the council group to spend the approved value,
however, it will provide the option to leverage the terms and conditions on an
as needed basis within approved budgets.
7. The
secondary procurement process was completed between June and September 2023,
where the council group reviewed suppliers that participated in the Request for
Proposal (RFP).
8. A
report seeking the Revenue, Expenditure and Value Committee’s approval of
the procurement approach has been provided as part of the confidential agenda
for the committee’s 19 September 2023 meeting.
Ngā tūtohunga
Recommendation/s
That the Revenue, Expenditure
and Value Committee:
a) tuhi
ā-taipitopito / note the information contained in this report on the
procurement process for external recruitment agencies through the Ministry of
Business, Innovation and Employment (MBIE) using the All of Government (AoG)
panel and a secondary procurement process for a sub-panel of suppliers from the
AoG MBIE contract, enables transparency on the topic due for discussion in the
confidential part of the meeting.
Horopaki
Context
9. The
council has an in-house recruitment team that manages the recruitment
requirements for most of its permanent employees. Over 98 per cent of the
permanent, fixed-term and casual employees were recruited using the internal
recruitment team in 2022.
10. The in-house
team are not resourced to find contingent workers at short notice. There
remains a need for a sub-panel of suppliers to cover and deliver the
recruitment of temporary or contingent staff, an option for payroll only
services, and permanent staff for the council group when required.
11. Council also
relies on external recruitment agencies to cater to the contingent workforce
requirements for different business units. Utilising recruitment agencies is
efficient and effective as they have the market knowledge to supply the
relevant staff rapidly. Many of the contingent workers are frontline staff, and
speed is important to maintain services. These agencies have also established a
network for technical and high-profile roles when our internal service has been
unable to source the skills required in the time available, such as for ICT
roles.
12. Since signing
up to the second generation contract in 2017, 19 agencies from a panel of 42
agencies have been utilised by the council group through the AoG contract.
These agencies catered to the council group needs, especially in short-term
contingent workers, along with particular focus areas such as ICT, Māori,
and Pasifika recruitment. A large majority of spend under the AoG contract goes
towards the contingent workforce (contractors and temporary staff) wages and
salaries.
13. Further
context will be provided in the confidential section of the Revenue,
Expenditure and Value Committee’s meeting agenda.
Tātaritanga me ngā
tohutohu
Analysis and advice
14. Auckland
Council staff were involved in evaluating the agencies that participated in the
tender proposal with MBIE for the third-generation contract.
15. Following
MBIE awarding the third generation contract in July 2023, the council group
were able to select and confirm the sub-panel agencies for participation in the
secondary procurement.
16. Running a
secondary procurement process has allowed the council group to identify
potential recruitment agencies that will benefit the group and has allowed the
council procurement team to re-negotiate rates and terms with the selected
parties.
17. Staff evaluated responses from a number of suppliers against the
criteria outlined in the procurement plan.
18. The
evaluation methodology consisted of a single stage evaluation process. This was
delivered in line with council procurement processes.
19. Further
context and the supplier recommendation will be provided in the confidential
section of the Revenue, Expenditure and Value Committee’s meeting agenda.
Timelines for decision-making
20. The September 2023 Revenue, Expenditure and Value Committee meeting
will be the last opportunity for decision-making of this nature ahead of the
roll out of the third generation contracts.
Tauākī whakaaweawe
āhuarangi
Climate impact statement
21. It is not anticipated
that there will be significant climate impact through this procurement
activity.
22. MBIE aims to
collect information via annual reporting on the carbon emissions of AoG panel
providers, as part of the Carbon Neutral Government Programme (CNGP) and the
government’s target to reach carbon zero by 2050.
23. In line with
council sustainable procurement guidelines, this procurement will also consider
how low carbon and climate action outcomes can be achieved in the contracts and
how they are measured and reported within New Zealand.
Ngā whakaaweawe me
ngā tirohanga a te rōpū Kaunihera
Council group impacts and views
24. Auckland
Council, Auckland Transport, Eke Panuku, and Tātaki Auckland Unlimited
have taken a group source approach to derive better outcomes from this
procurement process.
Ngā whakaaweawe
ā-rohe me ngā tirohanga a te poari ā-rohe
Local impacts and local board views
25. The
procurement of external recruitment services is not considered to have any
specific impacts on local boards.
Tauākī whakaaweawe
Māori
Māori impact statement
26. The
new AoG contract evaluation process had 20 per cent of the selection weighting
based on the agency's understanding and ability to deliver upon broader
outcomes, specifically diversity and representation.
27. All
agency providers on the panel will be briefed on the council’s Māori
Outcomes Framework and their role in supporting these outcomes. Outside the AoG
Agreement, council has in the past targeted additional agencies to partner with
regarding the Māori Outcomes Framework and permanent recruitment targets.
These partnerships will continue regardless of procurement decisions made
though the AoG contract.
Ngā ritenga
ā-pūtea
Financial implications
28. Commercial
negotiations are ongoing and further details relating to financial implications
will be provided in the confidential section of this meeting.
Ngā raru tūpono me
ngā whakamaurutanga
Risks and mitigations
29. If the
council does not continue with the AoG Agreement, it will lose guaranteed
access to preferential rates with the panel suppliers.
30. The new AoG
contract includes an evaluation of the agency's ability to deliver continuity
of service for its members and a requirement that they are given priority in
the event of a disaster.
31. The
additional administration resourcing required and costs associated with
directly sourcing through agencies outside of the AoG is significant. MBIE
provide, as part of the AoG contract, an audit function of the agencies
performance and billing rates, relieving ACG of some of the need to undertake
this work.
32. The
contingent workforce is often customer facing, so delays in finding temporary
workers can impact the council’s customer service performance.
33. Commercial
negotiations are ongoing and further details relating to financial implications
will be provided in the confidential section of this meeting.
Ngā koringa ā-muri
Next steps
34. If the
Revenue, Expenditure and Value Committee approves the recommendations, staff
will proceed with the completion of contracts and syndication to the MBIE
panel.
Ngā tāpirihanga
Attachments
There are no attachments for
this report.
Ngā kaihaina
Signatories
|
Authors
|
Danny Doyle – Strategic Procurement Specialist
Lacey Knight – Talent Acquisition Team Leader
|
|
Authorisers
|
Pauline Marrier d'Unienville - General Manager People
& Culture
Richard Jarrett - Director Group Services
Peter Gudsell - Group Chief Financial Officer
|
