Marlborough District Council Roading Assets - Activity Management Plan 2015 - 2018 SECTION 1 EXECUTIVE SUMMARY 1.10 DELIVERY AND PROCUREMENT 1.10.1 Background This section sets out the strategies for procuring services to manage the Roading Assets. Section 4 of the NZTA’s Procurement Manual requires a Procurement Strategy to detail the organisation’s procurement strategy for the activities funded under s20 of the LTMA. This Procurement Strategy generally follows the template in the NZTA Procurement Manual and provides the required information to meet NZTA’s requirements. 1.10.2 Procurement strategies A strategic approach to procurement means adopting a long term plan of action designed to achieve particular goals or outcomes. Central government pocureent pocies and principes set expectations wit egard to ho the wider public sector should approach procurement. These principles consist of: Best value for money over whole-of-life, Open and effective competition, Full and fair opportunity for domestic suppliers, Improving business capabilities, including e-commerce capability, Recognition of New Zealand’s international trade obligations and interests. 1.10.3 Key issues and opportunities to obtain value for money Value for money has been defined as the best possible outcome for the total cost of ownership (the guidance provided by the Office of the Auditor General) and can be interpreted as: Benefits obtainable from activities through procurement are maximised, Total cost of ownership or overall whole-of-life costs, where economic, social and environmental costs are minimised, Value for money is not always the lowest priced option; it is the option that provides the best outcome for the price over the life of the asset. Notwithstanding the above definitions of value for money, conceptually it means to maximise the benefits obtained from outputs that are delivered efficiently. Key issues for Council include: Being able to demonstrate to their constituents that the “whole of life” costs are demonstrably minimised and are completed in an open, transparent and democratically accountable manner, Ensure that risk is appropriately managed and that all procurement remains legal, ethical and transparent and embodies Council’s vision and priorities, Ensure training and development for all individuals with procurement responsibilities or interests within Council and its professional service providers, Use technology to reduce the transactional cost and improve the efficiency and effectiveness of all aspects of the procurement process for Council, its suppliers and contractors, Improve the accuracy, availability, appropriateness and accessibility of procurement related management information, Reduce the cost of the procurement process and obtain best value for money on all procured goods and services, Promote the development and use of performance measures, Promote procurement practices and policies that contribute to government priorities on sustainable procurement, Encourage the development of a range of suppliers and providers that will contribute to the local economy, Identify the barriers to competition and the steps to lower these barriers, Plan the forward procurement programme so that there is a steady flow of work to the market, Manage the Council’s supply chains, develop better relationships and promote cooperative procurement arrangements. 30 September 2014 Page 159 of Section 1