Marlborough District Council Roading Assets - Activity Management Plan 2015 - 2018 SECTION 1 EXECUTIVE SUMMARY Other specialist services undertaken under separate contracts, includes traffic counting, unsubsidised footpath maintenance and footpath resurfacing. Traffic counting is undertaken by a local contractor who has provided exceptional service and whose prices are very competitive. He has an intimate knowledge of the road network. It is intended to carry on negotiating this contract on an annual basis. The value of this contract is approximately $40,000 per annum. Emergency works do occur from year to year generally as a result of heavy rain and localised flooding. The scale of these events vary from $50,000 every couple of years, to over $3,000,000 events approximately every 10 years or so. Council puts aside an amount into reserves to cover its share of the cost of these abnormal events with funding assistance available. To ensure that Council meets the subsidy requirements it must ensure that value for money is being realised, with minor works being competitively negotiated with the maintenance contractor. Larger more significant works are tendered out to the open market, once the site is made safe and open to traffic. 1.10.8 Performance management and success measures In line with the requirements of the NZTA Procurement Manual, Council intends to align its performance measures and monitor the following indicators to determine the success of this strategy; Achievement of value for money Time – Estimated duration of key contracts verses actual duration of contracts, Cost – Estimated cost of key contracts verses actual cost of contracts, Quality – Council’s satisfaction with the goods or services procured. Regard for markets Fairness – Whether or not the supplier selection process was an open or a closed contest, and the reasons for these decisions, Competitiveness – Number of bids received and whether alternative bids were permitted and/or received, Innovation – Whether alternative bids that add value for money were permitted; whether alternative bids were received and accepted or rejected; what added value alternative bids realise and their cost. Efficiency of procurement procedures This area of monitoring aims to measure whether the procurement procedures are cost effective and to ensure they are not overly complex. This will be broadly measured by comparing the overall cost of the procurement function to the total cost of contracts let. Compliance with procedures This area of monitoring aims to measure how well the Council is complying with this strategy. This will be broadly measured by the number of complaints received on purchasing process. Due to the length of time that it takes to develop a sufficient sample size for these types of performance measures, it is intended that this analysis will be undertaken once, at the end of the life of this AMP, and as part of the development of the next AMP to measure the success or otherwise of this procurement strategy. 1.10.9 Internal capability All procurement related to management of the road asset is currently contracted to the Marlborough Roads office of the NZTA. Where major purchases are being considered these are referred to Council for consideration and approval as the client organisation. This includes the major NOC contract and any other significant projects. The Manager of the Assets and Services Department, and the Chairman of the Assets and Services Committee have certain delegated authorities to approve works. Marlborough Roads complies with NZTA procurement policies and current purchasing requirements. Project approvals, contract documentation, and tender management are carried out by approved NZTA staff or appropriately qualified contracted professional services. All tenders are managed by the Tender’s Secretary and held in a secure location. Accredited tender evaluators are used as required by NZTA procedures. 1.10.10 Implementation plan 30 September 2014 Page 162 ofSection 1