Procurement Strategy

Procurement is the process of buying goods, works and services. This can include a range of things from roads, footpaths, recreational and community facilities, parks and trees to heavy vehicles, office equipment, professional services and utilities.

Port Macquarie-Hastings Council is taking a strategic approach to procurement management with the Procurement Strategy being adopted by Council on 18 September 2013.

The procurement process should span the whole life cycle, from identification of needs through to the end of a works or services contract to the end of the useful life of an asset. Procurement ensures we seek value for money in how we deliver projects, goods and services to our community.

Key procurement activities can be grouped into four key areas:

- Business case development: Identifying needs within a business, assessing the level of supply & demand, undertaking an analysis of the available procurement options and selecting the best option based on cost, risk and benefit to the community;

- Sourcing: Specifying requirements, identifying suppliers, tendering, evaluating tenders, negotiation of process and service levels and establishing terms and conditions;

- Purchasing: Managing the acquisition of products from an existing agreement/contract or through ad hoc purchases; and

- Contract Management: Once an agreement is in place, monitoring, measuring and managing suppliers to ensure that the right service is being provided at the agreed price.

Effective procurement practices enable:

- Lower costs through the leveraging of total spend, standardisation, demand management and improved supplier management;

- Improved services from suppliers, resulting in better outcomes for the community and staff;

- Increased transparency & accountability of expenditure and supplier performance; and

- Consistency in meeting legislative requirements.