Objective
This Policy sets out to provide Goulburn-Murray Water (GMW) management and staff with a clear statement of their responsibilities and limitations in regard to procurement activities.
Scope
This Policy applies to GMW employees and contractors that are:
- responsible for (or involved with) purchasing (or approving the purchase of) goods or services on behalf of GMW; or
- accountable for managing contracts or relationships with GMW’s suppliers.
Procurement processes excluded from this Policy include:
- Legislated purchases and commitments
- Employment Agreements
- Real estate acquisitions, disposal and leases
- Emergency declared by the General Manager
Procurement exemptions are to be reported to the Board
Breaches of the Policy
Breaches of this policy will be managed according to GMW’s Enterprise Agreement, Unsatisfactory Behavior, Performance and Misconduct.
Procurement Thresholds
The following market approaches outline the minimum requirements. Procurement must represent fair market value, additional proposals should be sourced if required
General Goods and Services (incl. GST)
| Value threshold (per engagement) |
Value for Money Approach |
Process and Approval |
Contract Type |
| Up to $1,000 |
One quote |
Financial delegate approval |
GMW Terms & Conditions (Purchase Order) where possible |
| Above $1,000, but less than $75,000 |
One written quote |
Financial delegate approval |
GMW Terms & Conditions (Purchase Order)
Established Panel Agreement
State Purchasing Contract
|
| Above $75,000, but less than $300,000 |
Three written quotes |
Procurement plan
Financial delegation approval
|
GMW Terms & Conditions (Purchase Order)
VPS Goods/Services Agreement
Established Panel Agreement
State Purchasing Contract
|
| Above $300,000 |
Open tender |
Procurement plan
Financial delegate approval
|
VPS Goods/Services Agreement
Established Panel Agreement
State Purchasing Contract
|
Construction Works and Construction Services (incl. GST)
| Value threshold (per engagement)1 |
Value for Money Approach |
Process and Approval |
Contract Type |
| Up to $25,000 |
One written tender |
Financial delegate approval |
GMW Terms & Conditions (Purchase Order)
VPS Construction Contract
|
| Above $25,000, but less than $75,000 |
One written tender, which is consistent with market prices |
Procurement plan
Financial delegate approval
|
VPS Construction Contract
Established Panel Agreement
State Purchasing Contract (SPC)
|
| Above $75,000, but less than $300,000 |
At least three written tender responses sought |
Procurement plan
Financial delegation approval
|
VPS Construction Contract
Established Panel Agreement
State Purchasing Contract (SPC)
|
| Above $300,000 |
Open tender |
Procurement plan
Financial delegate approval
|
VPS Construction Contract
Established Panel Agreement
State Purchasing Contract (SPC)
|
Exemptions
On unavoidable occasions where the Value for Money Approach, as detailed in the Procurement Thresholds, cannot be followed, an exemption may be sought.
The following financial delegations apply:
Procurement Exemptions (incl. GST)
| Function Delegated |
MD |
Cat 1 (ELT) |
Cat 2 (SLT) |
Cat 3 |
| Procurement Exemption |
>$500,000 |
<$500,000 |
- |
- |
Note:
- All exemptions must be endorsed by the Manager Commercial, prior to submission to the General Manager
- Exemptions relating to IT projects must also be endorsed by the Manager Information Technology
- Exemptions >$500,000 must also be endorsed by a General Manager, prior to submission to the Managing Director
Valid reasons (not exclusive) for seeking an exemption include:
- Matters of urgency, associated with protection of human, animal or plant life
- Where specialized goods or services are required, and there is not enough competition in the market to seek the minimum number of quotes required
- Procurement of a prototype, for trial proposes
Probity
GMW representatives (and contractors acting on GMW’s behalf) are:
- accountable for ensuring that procurement decisions are supported by ethical, impartial and objective processes and appropriate documentation.
- to avoid any relationship, whether financial or otherwise, with potential or existing suppliers that could be seen as influencing your judgement
- avoid placing oneself in situations of potential Conflicts of Interest
- submit a Conflict of Interest and Gifts Declaration via the Integrity Register (https://gmwater.okta.com/app/UserHome) as and when required
- bound to the Code of Conduct for Victorian Public Sector Employees (https://vpsc.vic.gov.au/html-resources/code-of-conduct-for-victorian-public-sector-employees/)
VGPB Supply Policies
Social Procurement
GMW shall have a Social Procurement Strategy, which represents a commitment to influence the creation of collective prosperity and enhance the wellbeing of our communities.
The Social Procurement Strategy will:
- comply with Victoria’s Social Procurement Framework, and
- define GMW’s Social Procurement Key Performance Indicators
Responsibilities
| Responsibility |
Who |
| Approval |
Board |
| Endorsement |
Managing Director |
| Ownership and implementation |
General Manager Business and Finance |
Definitions
Policy rules that must be complied with in undertaking procurement are denoted by the term ‘must’. The term ‘should’ or ‘guideline’ indicates good practice.
If you require a printable version of the Procurement Policy , please phone GMW on 1800 013 357 and quote the reference A4016445.