Tianjin Municipal Government Foreign Affairs Office, Tianjin District Government Agencies and industry development zones, Tianjin Commission of Commerce, China Council for the Promotion of International Trade, Tianjin Education Commission, City of Melbourne, RMIT University, peak industry bodies
Osaka–Melbourne Sister City Relationship
Municipal, prefectural governments of Osaka, City of Melbourne, Australian and Victorian governments, peak industry bodies, Japanese Consulate
Our Procurement and Supply Chain
In accordance with the Local Government Act 1989 the City of Melbourne has developed a procurement policy encompassing the principles, processes and procedures applied to the purchase of all goods, services and work by the organisation.
Our procurement policy states that in procuring goods, work and services under a contractual arrangement, we will:
support our corporate strategy, aims and objectives
ensure we achieve best value in terms of time, cost and value
establish and put in place appropriate performance measures
provide effective and efficient commercial arrangements.
The policy uses a sustainable approach to procurement to reduce the social, financial and environmental impact of the procurement cycle. As a result we seek to procure environmentally preferred products and services and to do business with contractors and providers who have similar sustainability objectives and policies. However, we do not screen new suppliers using sustainability criteria per se.
Whenever practicable and relevant, we give preference to the supply of goods, machinery or material manufactured or produced in Australia or New Zealand, and work collaboratively with suppliers to achieve these objectives.
The organisation has a procurement and corporate contract management system that prescribes best practice methodologies in its contract management and processes and is adhered to at all times.
While there were no major changes in 2014–15 in our procurement structure, we carried out a strategic review of our existing procurement model. The City of Melbourne has always operated with a fully decentralised procurement model, allowing employees across the organisation at various locations the authority to purchase goods and services within a set delegation. A cross-organisational working group came together a year ago to investigate the effectiveness of procurement across the organisation with the aim of achieving the following:
During 2014–15, we processed 44 tenders and awarded 42 service and capital contracts. Contracts were awarded or extended in the following key service categories (not including miscellaneous one-off services):
aged and inclusion services
consultancy and other work.
See a list of all current major service contracts1 greater than $1 million annually.
For large service contracts with a value greater than $500,000, strategic service reviews are carried out to determine whether or not the service is still required, if it should continue to be contracted out or brought in-house and whether the service meets our sustainability objectives. However, there is no centralised system for monitoring compliance. Note: these reviews do not apply to capital works contracts.