Marlborough District Council Roading Assets - Activity Management Plan 2015 - 2018 SECTION 1 EXECUTIVE SUMMARY 1.10.4 Council’s strategic goals and objectives Marlborough District Council has current purchasing guidelines that are required to be followed in the procurement of goods and services. Its goals align and are those generally set out in the Local Government Act 2002 as detailed above. In addition, Council is committed to providing an open and competitive marketplace in Marlborough. This is essential to allow Council to demonstrate to its ratepayers that it is delivering the lowest cost, best value, service possible. Council also recognises that successful contracts are relationship based and can have two, three and even more parties contracted to deliver a single outcome. This relationship involves a sharing of skills, risk and jointly promoting innovation to improve value of the service delivery and is relevant from the smallest of contracts to large performance based, long term contracts. Solid contractual relationships; Promote stability in the marketplace, Provide confidence to the Council and the contract industry, Encourage investment in systems, training and equipment, Recognise the importance of retaining and developing local knowledge. Council currently engages the NZTA to manage and maintain its roading network. Under this contractual arrangement all procurement is managed by the NZTA under its purchasing framework in its Procurement Manual. Council reviews its general procurement strategy from time to time. Any changes eventuating from those reviews will be incorporated in this plan. This is noted in the Improvement Plan in Section 14. Council and its suppliers contracted to procure services on its behalf (ie, Marlborough Roads office of NZTA), have policies on handling conflicts of interest in procuring services. Issues that arise are dealt with on an individual basis in line with those policies. 1.10.5 NZ Transport Agency’s procurement requirements The NZTA is committed to the concepts of value for money, maintaining competitive and efficient markets, and fair competition among suppliers. The NZTA’s Procurement Manual contains procurement procedures approved by NZTA under s 25(1) of the Land Transport Management Act 2003 (LTMA). The procurement procedures contained in the manual are approved for use to purchase the goods and services required to deliver the activities that have been funded under s 20 of the LTMA. 1.10.6 Analysis of procurement environment The local roading construction and maintenance marketplace is dominated by 3 national contracting firms with the capability to undertake the necessary full service work. There are about 6 local contracting firms with the capability to undertake physical components of the work required, but they do not have the management systems and resources available to undertake the full service contracts currently tendered. A number of sub- contractors fall below these 6 contractors in terms of systems and capabilities. There is considerable competition at present and this is encouraged and expected to continue. There is sufficient interest in the large road maintenance contracts currently tendered, for other large, national contractors to express interest in and tender for, at intervals when these contracts come up for renewal. Service of the asset is primarily delivered through; One holistic, five year term, Network Outcome Contract (NOC) for physical maintenance of all roading assets, which encompass the whole of Marlborough province, A five year street lighting maintenance contract. A large component of the total physical work is included in the single Network Outcome Contract, with a few other contracts requed to complete deery oall wos requed. Tese include the ollowing; Three year regulated parking management contract, Traffic count service contract, Various individual bridge replacement contracts, Various miscellaneous seal widening, seal extension, footpath resurfacing and rehabilitation contracts. 30 September 2014 Page 160 of Section 1