BC2477. Auckland Council Procurement Policy

Transcription

1 BC2477 Auckland Council Procurement Policy

2 Auckland Council Procurement Policy Purpose The purpose of this policy is to provide guidance to suppliers and staff of Auckland Council to achieve the outcomes of the Auckland Plan. It defines how Auckland Council will undertake procurement decisions and sets out the process of deciding who the Council should procure from. The Policy provides clear information to suppliers, contractors and the community on what Auckland Council will consider through its procurement process. Objectives The objectives of the procurement policy are that procurement will support the procurement principles in the Procurement Strategy. Each principle needs to be considered at the early stages of each procurement but not every principle may be relevant to every procurement. It is important that at an early stage in each procurement, there is a process of reviewing each of the principles and identification of which principles and policy objectives should be part of any subsequent procurement process. This needs to be done at business case stage. Considering each of the principles at an early stage will in effect, influence all subsequent stages of the procurement, including desired specifications and the relative weightings of the factors that are included in a tender or evaluation process. However, it is important to note that best practice procurement includes undertaking procurement planning (Policy Statement 5) and supplier relationship management (Policy statement 4), and these, along with other legislative requirements, are mandatory parts of the process. It is recognised that there are tensions between the principles and where possible, the procurement process will be transparent as to how any such tensions are managed during the procurement decision making processes. In particular, the business case preparation stage will provide clear information on the options and impacts of each option which will assist the decision making on which option to follow. Defining procurement Procurement is defined as the acquisition of all gds, works and services provided by or for the Council. Procurement covers every aspect of the procurement cycle. This includes determining and specifying the needs of the service through the Long Term Plan, Annual Plan and Local Board agreement processes, through to the acquisition and delivery of gds and services. It also includes the relationship management of the supplier(s) involved. The procurement process finishes at either the disposal of those gds or works or when the service contracts or agreements come to an end. Procurement Strategy Principles and Policy statements The following section sets out the six principles and the subsequent procurement policy approach. Auckland Plan Principle 1: Work together Procurement Strategy Principle: Procurement processes that enable staff to work collaboratively with each other, the CCOs, and external agencies where appropriate, to achieve best value. Procurement Policy statement All procurement decisions will consider what is the most appropriate procurement option and be able to select from a range of delivery processes to facilitate the best outcome for council and the community. 2

3 Auckland Plan Principle 2: Value te Ao Māori Procurement Strategy Principle: The procurement process will support the council s commitment to Māori including responsibilities under Te Tiriti o Waitangi/The Treaty of Waitangi and its broader legal obligations as described in the council s Māori Responsiveness Framework. Procurement Policy Statement The procurement process will enable the integration of the Māori Responsiveness Framework in decision-making, business plan and procurement plan development, and service delivery to realise and enhance Auckland Council s commitment to Māori. Auckland Plan Principle 3: Be Sustainable Procurement Strategy Principle: The Council procurement process will ensure that opportunities for social, economic, environmental and cultural interests and outcomes will be actively considered for current and future generations. Procurement Policy statement Procurement practice supports the identification and assessment of social, environmental, cultural and economic interests of the community. This includes assessing, as well as possible, the impacts on current and future generations and communities. Auckland Plan Principle 4: Act fairly Procurement Strategy Principle: The Council s procurement will be ethical and lawful and consider the needs of all groups in the community. Procurement Policy statement Procurement practices will demonstrate integrity by all parties and enable all potential suppliers to have equal access through the use of open and contestable processes. Auckland Plan Principle 5: Make the best use of every dollar Procurement Strategy Principle: Council will use efficient, effective and appropriate procurement processes to deliver gd quality gds, works and services. For clarity, this principle is focused on the effectiveness of Council s procurement, while Principle 6 relates to the efficiency of Council s procurement. Procurement Policy statement The procurement process will enable projects to identify and deliver on multiple outcomes for every dollar spent. Council will actively seek innovative approaches. Auckland Plan Principle 6: Be affordable Procurement Strategy Principle: Council will lk for the best possible value for the whole lifecycle of the gd, service or asset. It does not necessitate the selection of the lowest price. In addition, the Council procurement process will encourage and maintain a sustainable and diverse market place to ensure that a competitive market is retained. Procurement Policy statement Affordable in the procurement context means that the procurement process must efficiently identify and manage the criteria and weightings to ensure the appropriate balance between quality and short and long term costs. In some circumstances, costs and benefits to be assessed would include economic, social and environmental and cultural costs and benefits. 3

4 Scope This policy applies to all procurements entered into or on behalf of Auckland Council. It equally applies to the council, local boards and management including all groups and all staff. It is intended that the Auckland Council family including the Council Controlled Organisations (CCOs) will act consistently in accordance with the adopted Strategy. The Governing Body will work with each Auckland Council CCO to ensure that the procurement practice of each CCO is consistent with the Auckland Council Procurement Strategy. In light of this is it also important to understand the role the various procurement related policies and procedures will have in the procurement process. There are four considerations to be made when procuring as represented in the diagram below: why are we procuring? what are we procuring? how are we procuring? who are we procuring from? 4

5 Context Procurement Chain or Procurement Waterfall Why are we procuring 1. Outcomes, strategies & policies 2. Activities, functions & projects Achieving the outcomes stated in various strategies, plans and policies is why we are procuring anything in the first place. What are we procuring 3. Specifications of what procuring We then need to define what we are specifically procuring in the way of gds and\or services. How are we procuring 4. In-sourcing versus outsourcing 5. Procurement methodology 6. Procurement plan (specifications) There may be advantages in how we procure, by way of better outcomes, better pricing, risk transference etc. Who are we procuring from 7. Evaluation of suppliers 8. Negotiation with supplier 9. Supplier selection (attributes) 10. Managing contract and delivery Once you know what you need and the best way of procuring it, it is down to who will supply it. Considerable emphasis in this policy is placed on the development of the business case and specification processes in the procurement chain. The specification of why and what is required by the business owner and critical to ensuring that the following stages of the how and the who meet the business owner s requirements. Gd procurement outcomes will be best gained by an early understanding of all the objectives of the programme, which will flow through from concept development to business planning to agreeing the specifications and then onto the tendering process and the assessment criteria and weightings. It is important at the specification stage, that those most affected are involved in the process. For instance, working with Local Boards in the development of parks maintenance and town centre maintenance contracts. The Manager Procurement is responsible for the policy, business rules and the procurement process. 5

6 Policy statements and guidance notes 1. Policy statement (Principle 1 - Work together) All procurement decisions will consider what is the most appropriate procurement option and be able to select from a range of delivery processes to facilitate the best outcome for council and the community. This provides the flexibility for Council to identify the most appropriate procurement option for obtaining gds, works or services. The decision, as to the tl which should be used, will be based on the type of expenditure being incurred as well as other appropriate procurement objectives. At the development stage of a project Council will consider the range of procurement options that are available to obtain the components for that project. The tls that are available are therefore: full or total broadly external service delivery alliancing collaborative between Council and external organisations public private partnerships fully resourced from internal sources. Auckland Council will also ensure that local suppliers are given advice and support so that they have full and fair opportunity to compete for Council business. This policy does not give preference or weighting to local content in itself. Similarly, there should be no discrimination on the basis of ownership of a supplier or preference for local equity in itself. Having given local suppliers full and fair opportunity and assessed any commercial and practical value for money advantages associated with local supply, Auckland Council will buy from the best source available, according to its own judgement of all costs, benefits and overall value for ratepayer s money. It may do with the assistance of a Local Impact Assessment methodology. A Local Impact Assessment is most logically considered when a project has the following attributes: there is the opportunity for increased locally based employment there is the opportunity for the provider to provide appropriate work experience there is the opportunity for the provider to contribute to local projects The Council will apply a Local Impact Assessment in the following ways: a) All contracts over $7.5m must have a local impact assessment criteria as part of the procurement process b) Contracts of a value of between $1m and $7.5m may have a local impact assessment criteria as part of the procurement process c) Because smaller contracts (contracts less than $1m) are likely to be provided by local entities no local impact assessment will be required but may be undertaken by the manager if considered desirable. Guidance notes The intention of this policy requirement is that when Auckland Council begins to develop a project that the various options for procurement are considered at that early stage. As noted in the policy statement there is a variety of tls available to Auckland Council from fully contracting out to a collaborative approach. Often at the development stage of a project it is possible to narrow the range of procurement options. For example the building of a community facility might have a range of options from a design and build to having a number of different contracts for the various components of that build. 6

7 In addition, there may be opportunities for complementary activities which may not necessarily be provided by Council but be necessary for gd community outcomes. For example when a council building is being planned, other complementary activities should also be considered as part of the initial consideration of options. A library might be being planned for a particular area; other complementary activities that may be considered could be the provision of a cafe or similar activity which would be provided by any external organisation. Also there maybe the necessity to intensify development within a certain area and therefore complementary activities that increase the overall density should be considered when the library complex project is being planned, e.g. offices or residential apartments. A collaborative approach could be considered when a community group may have the resources to undertake the work which may result in other intangible benefits such as providing training or work experience. What does local mean for Auckland? Given the large geographical area (4,894 km2) covered by Auckland Council, and a population of 1.5 million people, a definitive definition that would cover the wide range of procurements undertaken by council is neither possible nor desirable. Local, depending on the procurement, could mean: neighbourhd; suburb; local board area; sub-region; or the Auckland region or New Zealand. There is a strong desire that procurements should positively benefit local communities where the works, services or supplies are delivered. What level of local will vary depending on the particular procurement. In some procurements, the emphasis may be on a range of community interests, such as employing persons with disabilities (who are likely to come from across a sub-region or the wider Auckland region), ethical or fair trade. What is local impact? Local impact is not about purchasing gds, works and services from local suppliers (i.e. buy local ) it is not about who should be awarded the contract; being a local business does not guarantee fair workforce conditions or that revenue is multiplied (re-spent) in the local economy. In addition, identifying the winning tender (supplier) should be transparent, competitive and outcome focused. Local impact is concerned with the positive contributions to: A local community s capacity (e.g. the skills, social capital and knowledge) to do things for themselves and participate in decisions that affect their community; and The health, resilience and sustainability of the local economy. The multiplier effect An important contributor to a healthy local economy is the multiplier effect of income in to a local area in other words, how much of that money is spent and then re-spent in the local area and how many times this happens, before it leaks out of the area. Given the budgets of public organisations, public sector procurement can have a significant multiplier effect on a local economy. The Procurement Manual will set out more information on using Local Impact Assessments. 7

8 2. Policy statement (Principle 2 Value te Ao Māori) The procurement process will enable the integration of the Māori Responsiveness Framework in decision-making, business plan and procurement plan development, and service delivery to realise and enhance Auckland Council s commitment to Māori. Value te Ao Māori supports each of the other five principles of the procurement policy. However it recognises that Auckland s aspirations and Māori aspirations are aligned and that there will be times when procurement requires close consideration of Māori cultural competencies, such as te reo Māori (Māori language), mātauranga Māori (Māori understanding, knowledge and skill), tikanga Māori (procedures, customs and practices) and kawa (protocols) This principle requires consideration of the Māori Responsiveness Framework and in particular the three goals - an empowered organisation, effective Māori participation, and strong Māori communities - at each stage of the procurement process. This will enable Māori aspirations and expertise in Māori matters to be actively considered through the life of a project eg: (a) in the supply and provision of services targeted to Māori, (b) in procuring or partnering with suppliers with experience and the capability of working in a Māori context, and (c) to enable Māori outcomes to be included through the procurement process as an integral part of, or in adding value, to a project. Guidance notes: The Māori Responsiveness Framework articulates and focuses the Council s actions to enhance and guide its commitment to Māori. While the Procurement Strategy establishes consideration of the drivers as an important step in the development of a project and procurement plan, practical application throughout the procurement process requires consideration of the three Māori responsiveness framework goals. These are outlined generally below, however, the Procurement Manual will provide further guidance. An empowered organisation places emphasis on council staff, process and systems, and policy development to improve the organisation s ability to respond more effectively to Māori and to actively consider how the procurement process can assist the council to achieve the Auckland Plan and Long-term Plan Māori-specific goals. This is enabled through the drivers of the Māori Responsiveness Framework by considering each driver at the business plan stage. Effective Māori participation emphasises the need to build and strengthen relationships with suppliers with experience and the capability of working in a Māori context to participate in the procurement process to provide shared and long-term outcomes for the council and Māori. Strong Māori communities places emphasis on the council s role through procurement of contributing to Māori well-being. This requires an understanding of the intended and unintended outcomes of any procurement with a focus on contributing to improved Māori outcomes. It also requires consideration of how the procurement process can support and build Māori capability and capacity in procurement and as an outcome of procurement. It is important to remember that when developing a project specification that the engagement of Māori advice be considered. For example in the construction of a wetland within a culturally sensitive area, specialist Māori advice might be sought and included into the design of any buildings and surrounding plantings. 8

9 3. Policy statement (Principle 3 Be sustainable) Procurement process supports the identification and assessment of social, environmental, cultural and economic interests of the community. This includes, as well as possible, the impacts on current and future generations and communities. For Auckland Council to achieve the direct cost saving benefits and indirect economic and environmental benefits of applying the sustainability principle, the Council needs to use a three-pronged sustainable procurement approach: maximising effective use of ratepayer monies by encouraging decisions to be made on total costs and benefits of ownership over the life of an asset assessing increased local spend and enhanced local capability where appropriate, and a requirement that the procurement process includes consideration of environmental, economic, social and cultural matters when procuring gds, works and services. By considering the long term costs and benefits including (but not limited to) such matters as increased local spend, enhanced local capability and carbon reduction impacts, Auckland Council is committed to providing strong leadership that ensures Auckland becomes a more sustainable city. It provides for integrated decision making and assessing long term costs and benefits which results in the best value over the whole of life of the gds, works or services under consideration. All procurement of gds, works and services must consider these objectives in the Auckland Plan. Auckland Council will maximise the effective use of ratepayer monies by requiring decisions to be made on total cost of ownership over the life of an asset. The total cost takes into account the initial purchase price; usage costs; maintenance costs and disposal costs or resale value. A variety of tls can be used to determine the best outcome for instance, whole of life assessments or life cycle approaches. The procurement manual will contain further information on these approaches. The business case development will include an identification of levels of sustainability on a level system as follows. Given the importance of achieving sustainable outcomes and best value particularly for high value procurement, a sustainability assessment must be undertaken for procurement in the Level 4 category. 9

10 Level 1 - Low sustainability risk and low value contracts e.g. provision of security guards Level 2 - High sustainability risk, but low value contracts e.g. battery purchases Level 3 - Low sustainability risk, but high value contracts e.g. professional services Level 4 - High sustainability risk and high value contracts e.g. new building Further information on the range of assessment tls will be set out in the Procurement Manual. Guidance notes The procurement process may include environmental and social specifications for products and services. Under this approach, products with environmental and social labels, such as those with recognised standards could receive a higher weighting, as set out in the relevant specification process. The relevant standards will be set out in the specifications. This approach either states a minimum standard for all suppliers or provides a weighting for businesses with sustainable practices. Suppliers with gd sustainable practices would have a stronger chance of higher scores in this area. Being sustainable requires the full evaluation of the life cycle of that particular procurement. Therefore it is important to identify both the capital costs and all ongoing costs and to evaluate all reasonable alternatives to ensure that council is being sustainable both environmentally, socially, economically and culturally. Procuring gds and services on a whole of life basis, will provide cost savings to the Council. Comprehensive sustainable procurement practices could include procuring works, gds and services from businesses with appropriate certification and practices. This could influence the supply chain over time. For example, a high sustainability certification requirement could result in suppliers changing their practices in order to be successful in securing a Council Contract. The changed practices could result in suppliers becoming more innovative and reduce their costs in energy, water, waste and transport. This in turn would support Auckland Plan outcomes such as increasing the growth in the green economy for Auckland and reducing air pollution, greenhouse gas emissions, waste, water usage and traffic congestion. The Procurement Manual will provide more information on various methodologies to support the sustainability policy statement in practice. 10

11 4. Policy statement (Principle 4 Act Fairly). Procurement practice will demonstrate integrity by all parties and enable all potential suppliers to have equal access through the use of open and contestable processes. Auckland Council will conduct its business with the utmost integrity in its procurement of gds, works and services. Therefore, Auckland Council employees and suppliers are expected to conduct themselves with the highest standards of honesty, fairness, and personal integrity. It is critical that both employees and suppliers adhere to these standards, all applicable laws and avoid all perceptions of conflict of interest and impropriety. To this end we have included wording on the ethics we maintain and subscribe to during all procurement activities in Auckland Council. Further, we have expressed the behaviours we expect from our suppliers in the supply of gds, works and services. Suppliers will: comply with all New Zealand legislation respect human rights as set out in New Zealand law, and international law that New Zealand is a signatory to not use forced, bonded or compulsory labour not use child labour in the supply chain refuse to accept unlawful discrimination of any kind in working relations give consideration to flexible working conditions to promote work/life balance provide a healthy and safe working environment for all employees in accordance with international standards and laws. Council policy is that procurements are, for the most part, open and competitive. However, there are occasions when Council will decide to restrict or limit supplier involvement in a procurement process, based on matters of scale or relevance for example in an emergency. Council will document the justification for such actions. Council will use the principles of section 7 of the Local Government Official Information and Meetings Act 1987 (LGOIMA) for protecting confidentiality when negotiating contracts. Access All potential suppliers will have equal access to Council s procurement process. All publically notified Procurements will be advertised through the Government Electronic Tenders Service ( and/or Tenderlink ( Auckland Council will continue to give all suppliers that are unsuccessful, the invitation for a debrief and feedback session on why they were unsuccessful and offer guidance how they can improve their responses for future procurements Supplier management It is important to note that different delivery approaches (such as a negotiated collaborative arrangement as distinct from a tendered contractual arrangement) will require differing relationship management arrangements and monitoring programmes. However, there is a risk that suppliers delivering the same category of gds, works or services are treated in a different or more preferential way than another. To ensure equity, the management of all suppliers in any kind of agreement with Council will follow the same approach when managing performance. The supplier management programme will, amongst other things: deal with suppliers even-handedly ensure that key performance indicators (KPIs) are set in the initial notifications requesting services to be provided or supply of gds or works, and in the contract covering quality of performance, scheduled performance and relationships for all supply agreements 11

12 monitor the performance of the supplier against the KPIs or agreed outputs provide feedback to key stakeholders and management on compliance, savings and cost of non-compliance facilitate resolution of complaints and noncompliances both at supplier level and with internal stakeholders explore opportunities with suppliers over and above contractual obligations ensure ethical, safe and honest practice ensure compliance with health and safety requirements promote sustainability in all interactions. All procurements will be evaluated fairly. The procurement documentation that Council puts out to the market will contain information which makes it clear what council is lking for by way of response. As an example, if the weighted attributes methodology is used, the attributes and as well as the weightings for each attribute will be published so that the market understands the relative importance of each attribute to council. Where the relationship is managed at Department level the Department is responsible for the supplier management programme. Where the relationship is managed centrally, the Procurement Unit is responsible for the programme. Guidance notes The Council expects its procurement processes to be fair but Council is a demanding buyer, who will purchase from internationally, domestic and local suppliers where they offer best value for money (best value not being limited to financial considerations). This requires due consideration of potential commercial and practical advantages in purchasing local, domestic or internationally produced gds and services. These may include: price and total or whole-of-life ownership cost through-life support (e.g. better availability of spare parts and after-sales service) supply lines and/or delivery lead times the costs of maintaining inventory level of reduction or elimination of exchange rate risks impact on communications/transport impact on contract administration and dispute resolution scope for cperative and innovative product development and influence over the supply base continuity of supply and level of direct control over orders gds/services adaptation to local conditions; and level of knowledge of the producer s reputation and reliability. 12

13 5. Policy statement (Principle 5 Make the best use of every dollar). The procurement process will enable projects to identify and deliver on multiple outcomes for every dollar spent. Council will actively seek innovative approaches. Procurement planning To deliver on this objective, Council needs to forecast its procurement requirements over time. In order to understand its resource requirements and manage procurement activities professionally and understand the multiple outcomes sought across the organisation, Council needs to have a view of what procurements are likely to be required in the next one to three years. Identification of likely procurements over this timeframe will enable the organisation to identify potential benefits from crdination of like supply activities, supply aggregation and phasing of activities. It will also enable procurement resourcing needs to be anticipated and planned. As part of annual planning activity, expected procurement activities over the next one to three years are to be identified, showing: categories of the gds, works and services that they expect to be acquiring. This does not include day-to-day items such as stationery the approximate spend involved the expected timing contract expectations (existing contract, Expressions of Interest, Request for Proposal, etc). The selection of suppliers will be based on the consideration of whole of life costing. This approach ensures that risks, including the risk of supplier failure, are identified. When a gd, work or service is being considered for inclusion in the Long Term Plan or Annual Plan, that project should be considered with other possible projects across other departments to achieve multiple outcomes to assist Council being effective, efficient, and appropriate. It is expected that making the best use of every dollar will support the search for innovation in how Council procures gds, works and services. Guidance notes There are a number of planning processes which plan for, and allow assessment of, multiple outcomes delivery for example, the Crime Prevention through Environmental Design programme. Council is also trialling the Social Return on Investment assessment process which, if successful, will enable business owners to quantify, and monitor, the social outcomes being achieved by the project. For example, in the case of facility development, the planning for multiple outcomes can include working with external agencies. In such a case, planning for procurement could include the consideration of alternative uses for the facility being considered as well as other complementary activities not delivered by the Auckland Council. 13

14 6. Policy statement (Principle 6 - Be Affordable). Affordable in the procurement context means that the procurement process will efficiently identify and manage the criteria and weightings to ensure the appropriate balance between quality, and short and long term costs. In some circumstances, costs and benefits to be assessed would include economic, social and environmental and cultural costs and benefits. When procurement occurs, the principle of best value over whole of life of gds, works or services must be evident. Council will use best practice and will seek to be increasingly efficient in its procurement processes. Best value for money is concerned not just with unit costs but with the full value or public benefit that will occur as a result of the procurement process. Council considers that there are four elements to best value which are: 1. quality and suitability of the service 2. long-term implications 3. wider outcomes for society 4. the cost and benefits (both short and long term) Efficiencies will be gained through clear processes which assess each of these factors and through clear contract specifications, and management of the weightings and criteria in the assessment process. Doing this well will result in the Auckland Council being cost effective and therefore affordable for household and businesses. Monitoring and risk The Auckland Council is accountable to the community through the Long Term Plan and Annual Plan. Achievements and results will be reported through the Annual Report. Monitoring the procurement process in the first instance will be undertaken by the Tenders and Procurement Sub-committee. The Sub-committee will ensure that reasonable purchasing procedures have been followed in awarding large contracts and will provide an efficient mechanism for documenting the approvals for those contracts. Monitoring will also occur at management level to ensure that council projects are delivering on the objectives as set out in the project business plan. The policy will be reviewed within five years. This review will include an assessment of how the policy has contributed to the effectiveness, efficiency and appropriateness of council s procurement processes and outcomes. Risks in procurement occur in every stage of the procurement process from selecting the procurement method through to the contract management including invoice and payment. Auckland Council will identify and mitigate risks through its risk management processes. In addition, in order to be efficient, Council procurement in practice uses a scaled system where lower value procurement can be actioned on the basis of a direct approach; procurements of greater value face an ever increasing scale of requirements. 14

15 Selecting a supplier The criteria for selection of a supplier, contract or proposal will include (but is not limited to): total cost over the life of the gds, works or services supplied. Considerations include: base price maintenance costs consequential costs ongoing supplier/contract management costs pricing: the price identified as part of the procurement process price improvement through bulk buying, available discounts and potential leveraged discounts price stability and sustainability over the life of the contract demonstrated supplier ability to deliver, including: resources contract and relationship management timing quality contribution to Auckland Plan desired outcomes and supporting strategies Guidance notes The Local Government Act 2002 requires all councils to meet the current and future needs of communities for gd quality infrastructure, public services and performance of regulatory functions in a way that is most cost-effective for households and businesses. Gd quality has been defined as being efficient and effective and appropriate to present and anticipated future circumstances. This does not require councils to always consider the lowest cost but requires councils to ensure that procurement is cost-effective. Therefore all procurement must comply with this requirement. The initial requirement of any procurement is to ensure that the procurement is both suitable and of the appropriate quality for the service that is being supported by that procurement. When procurement occurs it is important that not just the immediate short-term cost is identified, but acquisition, maintenance and operational costs and the consideration of the costs in replacing the asset together with its estimated useful life are included in the assessment. Being affordable requires Council to consider the life cycle of procurement. While some infrastructure may last for a 60 to 80 years other procurement life cycle might only be five years (e.g. computer hardware). Therefore it is important to identify the life cycle when procurement occurs. A further consideration of the life cycles for capital projects is the impact of any debt funding and the time period over which the debt will be repaid. Generally debt repayment over 25 years results in a significant interest payment by the community. Promoting diversity and competition in all the market sectors in which Auckland Council is involved is a means of ensuring that affordability and best value is achieved. Procurement is one way that Auckland Council can act on its responsibility to ensure that market competition continues. To ensure that the competition is open, all qualified suppliers must have a reasonable opportunity to participate in all Auckland Council procurements and proposals must be evaluated, and selections made, in a fair manner. This is addressed in Principle 4. 15