Statement of Procurement Conduct

Transcription

1 Statement of Procurement Conduct December 2014 Copyright of Western Power Any use of this material except in accordance with a written agreement with Western Power is prohibited.

2 Introduction Western Power values the strong business relationships with our many suppliers and these relationships are integral to the realisation of our commercial goals. We form relationships with companies that share our commitment to safety and to conducting business according to the highest ethical standards and adherence to Western Power s business conduct. We are committed to observing a comprehensive Code of Conduct that embodies our values and the appropriate ethical behaviours and performance underpinning our good reputation with our customers, businesses and the wider community. Our values The foundation of Western Power s culture is our values. These describe how all Western Power employees are expected to behave. Safety: We put safety first Integrity: We are open, honest and consistent Respect: We respect ourselves, others and the environment Service: We are a service business Delivery: We deliver on our promises The following Statement of Procurement Conduct sets out the key business principles we apply in our dealings with suppliers. Each principle is designed to ensure that our relationship with suppliers is fair, transparent and creates value for all parties. Western Power welcomes your contribution to our business and in turn looks forward to playing a part in yours. Mark Thompson Head of Commercial 2

3 Our key commercial principles Value for money This principle requires a comparative analysis of all relevant costs and benefits of each proposal based on the concept of total cost of ownership. Cost alone does not provide an accurate assessment of value for money. The following factors will be considered in making the total cost of ownership assessment: fitness for purpose the performance history of each potential vendor / tenderer the relative risk of each proposal / tender the flexibility to adapt to possible change over the lifetime of the material or service financial considerations including all relevant direct and indirect benefits and costs over the procurement cycle and asset life the evaluation of contract options (for example, contract extension options) Procurement best practice Western Power strives to adopt procurement best practices and continue to keep up with industry changes and improvements as they materialise. This is important to ensure that we can achieve value for money and realise efficiencies and opportunities in our procurement processes. Western Power s procurment practices are also certified by the Chartered Institute of Purchasing and Supply (Certificate Number 0219). Transparency Western Power s Procurement teams will be open and honest throughout the procurement process. 3

4 Our procurement process Western Power has a well established procurement process that is managed by the Contracts and Procurement, and Purchasing teams within the Commercial Function. The purchase of all goods and services by Western Power is conducted in accordance with this procurement process under the highest of ethical standards. Western Power will seek competitive quotes from potential suppliers invited to tender for specific requirements as required. These tenders are conducted by the Contracts and Procurement team via Western Power s online Ariba e-procurement system. Potential suppliers that have been invited to tender will be notified via an sent from the Ariba e-procurement system that will contain the basic information pertinent to the tender. Contact details for the Western Power representative will also be provided and the potential supplier will be contacted to ensure that they are informed of the tender requirements. Following submission of completed responses by interested potential suppliers by the specified closing date, an evaluation team comprising relevant Western Power Function representatives will be assembled. This team will evaluate all submissions based on approved qualitative and quantitative criteria, and will only consider information presented as part of the submissions, and past performance if applicable, in accordance with the Conditions of Tendering. Subsequently, a recommendation to award contracts will be developed and submitted for review and approval by the relevant authority based upon the dollar value of the contract. Once approved, successful suppliers will be notified of the decision and the contracts will be finalised. Throughout the above process Western Power will treat all potential suppliers fairly, justly and without bias. All information provided by the supplier shall remain Commercial in Confidence. Offer Process Evaluation Process Approval/Award Process Potential supplier submit in response to Western Power s invitation and specification Response submitted via Ariba e-procurement system in accordance to evaluation criteria and tender requirements Submissions evaluated in accordance with evaluation criteria Negotiate outcomes with suppliers Complete the recommendation for award and seek appropriate approvals On approval, successful suppliers will be notified and contracts executed 4

5 Our commitment to you Western Power is committed to the sourcing and procurement of all goods and services through established processes, including our online Ariba e-procurement system. As part of our procurement process, Western Power will: actively manage any conflicts of interest as soon as we become aware of them treat all supplier submissions to sourcing events in a fair, equitable and non-prejudicial manner evaluate suppliers based only upon the content of their submission and past performance, if applicable in accordance with the Conditions of Tendering offer a debriefing session to all unsuccessful suppliers ensure that all submissions remain Commercial in Confidence ensure that all suppliers have the same level of access to our e-procurement system and to help and troubleshooting material remain transparent throughout the end-to-end procurement process, and provide a level playing field to all suppliers by granting them all the same access to sourcing event specific information adhere to our Code of Tendering which is based on the Australian Standard AS Code of Tendering, existing policy and the Electricity Act What we ask of you Western Power expects that all suppliers and potential suppliers act ethically and with integrity throughout the procurement process and beyond. As such Western Power asks that: all submissions fully satisfy all the conditions of tendering/proposal/expression of interest and that all requirements set out in the respective documentation are met in full all submissions contain true, accurate and reliable information that can be verified and fully supported any conflicts of interest (actual, potential or reasonably perceived) be disclosed as soon as they arise confidential Western Power information is not disclosed outside of the procurement process all sourcing event related correspondence be directed through the respective Commercial representative throughout the duration of the sourcing event 5

6 Why follow our statement of procurement conduct? By following the Statement of Procurement Conduct you can be well assured that your treatment throughout the procurement process and dealings with Western Power will be to the highest ethical standards and that you will be given equal opportunity to succeed as a potential supplier. All of Western Power s suppliers are expected to comply with the Statement of Procurement Conduct. It is also very important for suppliers and potential suppliers to be aware of the consequences of not complying with the Statement of Procurement Conduct. Non-compliance to the Statement of Procurement Conduct or any other conduct deemed to be corrupt or unethical by Western Power could lead to: termination of contracts loss of future work loss of reputation investigation for corruption matters being referred for criminal investigation Western Power Code of Conduct The Statement of Procurement Conduct is aligned to Western Power s Code of Conduct. Western Power s Code of Conduct, as approved by the Board, sets out minimum standards of conduct for all directors, officers and employees of Western Power. The Code of Conduct is designed to promote ethical and responsible decision-making. It outlines Western Power s position on a range of ethical and legal issues and summarises its policies on matters such as compliance with laws, occupational health and safety, conflicts of interest, corporate opportunity, confidentiality, protection of corporate assets and diversity in the workplace and responsibility for the environment. The Code of Conduct and the associated policies, including the Conflict of Interest Policy: guide to compliance with Western Power s legal and other obligations to its stakeholders, including the Minister and the Government, employees, customers, the community, unions and regulatory authorities; and are designed to reflect Western Power s commitment to its corporate values and appropriate corporate practices. 6

7 Who to contact Procurement questions, feedback and complaints If you have any questions regarding the Statement of Procurement Conduct, or would like to provide feedback or complaints on Western Power s procurement please contact Western Power online, by phone or at the contact details, below. Online Phone procurement.operations@westernpower.com.au Corrupt and fraudulent conduct If you wish to provide information about suspected corrupt or fraudulent conduct, please contact Western Power directly by letter to the Risk Assurance & Audit Manager at the contact details below. Correspondence Manager Risk Assurance & Audit Manager, Western Power, GPO Box L921, PERTH WA