View all publications

Appendix 2: Flow Charts Outlining Common Decision Processes for Procurement of Services

Planning (Section 3)

This flow chart shows the chronological order for the contract planning process. The process for planning is:

  1. Evaluate the strategic direction the council wishes to follow. Research, site visits and scoping documents will all assist in establishing the direction.
  2. Confirm the service objectives. Once the strategic direction is confirmed, this combined with community and council objectives will establish the service objectives for the contract.
  3. The next step is to consider the regulations that maybe required (bylaws and licensing), the preferred contractual approach and the objectives of the contract.
  4. Then establish the mechanism for funding the contract (rates, user pays, cost sharing).
  5. The final step is choosing the procurement process (expressions of interest, request for proposal, request for tender or renewal/variation to existing contract).

Contract development (Section 4, 5 & 7)

This flowchart outlines the process for developing contracts.

1. Collections system options, transport options, recovery options and disposal options need to be identified and agreed.

2. These options then feed into the service provision.

3. The scope of services for the contract this then established.

4. The next step is to consider the contract. This includes considering the following:

  • financial requirements (capital expenditure, operational expenditure, revenue and cost fluctuations)
  • contract management requirements (KPI’s, reporting)
  • other requirements (contract term, health and safety and educational and communication).

5. This allows the specific conditions of the contract to be set.

6. The specific contract conditions combined with the general contract conditions establish the contract considerations.

7. The scope of services combined with the contract considerations and any other supporting information forms the contract documentation.

Evaluation (Section 6)

This flowchart shows the chronological order for evaluating tenders. The process for evaluating tenders is:

  1. Produce an evaluation plan. This the guiding document for the evaluation process.
  2. Evaluate the tenders using the agreed process.
  3. Select the preferred tender(s). Depending on the tenders and process used this maybe obvious or require further discussion amongst the evaluation team.
  4. Negotiate the preferred tender and any other competitive tenders.
  5. The evaluation team makes a recommendation to the council and/or management.
  6. Following agreement from council and/or management, the contract maybe awarded to the preferred tenderer.

Contract management (Section 8)

This flowchart shows the process for managing contracts. The process is:

  1. The principal and the contractor work together to develop a good working relationship that is beneficial for both parties.
  2. Establish and agree the audit and reporting processes, ensuring they meet the requirements of the contract. Ensure these are adhered to by both parties.
  3. Hold a performance review as specified in the contract. The review should look at any issues and also where improvements can be made.
  4. Consider how the delivery of the service could be improved.
  5. A review of infrastructure, an assessment of changes in practices and technological advances are all aspects that should be considered as a part of the contract management programme. These will help inform decisions made about the delivery of the service and ensure it continues to achieve the outcomes sought.