1. Background
The Local Government Act 1989 (LGA) requires each council to:
· publicly tender contractual procurements over certain thresholds; and
· prepare, approve and comply with a Procurement Policy encompassing the principles, processes and procedures applied to all purchases of goods, services and works by the council.
2. Application
This policy applies to all contracting and procurement activities by the Melbourne City Council (MCC) and is binding upon the MCC and its Special Committees, Officers of the MCC and temporary employees, contractors and consultants while engaged by the MCC.
3. Policy
i. The MCC has adopted the following principles which it will apply whenever it is procuring Goods, Works and Services under a contractual arrangement:
· to support its corporate strategy, aims and objectives;
· to ensure it achieves best value outcomes in terms of time, cost and value;
· to establish and put in place appropriate performance measures;
· to commit to achieving sustainability, and
· to provide effective and efficient commercial arrangements.
ii. The MCC recognises that a sustainability approach to procurement is one that ensures the social, financial and environmental impact and influence of our procurement cycle is managed so that the things we value (e.g. environment and health) can continue without decline as a minimum. Sustainable procurement is not an additional process; it is the way we conduct our operations. It is the default option of all procurement undertaken by the MCC.
iii. The MCC’s commitment to environmental sustainability is demonstrated in one way through the procurement of environmentally preferred products and services.
iv. The MCC seeks to do business with contractors and providers who have similar sustainability objectives and operational policies. The MCC will work collaboratively with its suppliers to achieve its objectives.
v. The MCC has a Corporate Contract Management System which prescribes best practice methodologies in its contract management. The System includes advice, processes and template tender and contract documents to provide guidance to contract managers at all stages of the contract life. The processes and procedures contained within the System are summarised in the attached process map:
Melbourne City Council Procurement Policy (PDF, 539kb)
Melbourne City Council Procurement Policy (text only, 99kb)
MCC is responsible for ensuring its deliberations and actions comply with the LGA, associated regulations and the MCC Councillor Code of Conduct.
Endorsed by the Chief Executive Officer under delegation