City of Melbourne Annual Report 2015-16

Our procurement and supply chain

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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

  • commit to achieving sustainability objectives

  • 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.

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.

In 2015–16 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:

  • reduced risk

  • value for money

  • sustainability outcomes

  • a simpler way to do business.

As a result of this review, we rolled out Category Management Model in the organisation in 2015–16. This is a contemporary model, which aligns with best procurement practice to achieve our procurement objectives.

During 2015–16, we processed 71 tenders and awarded 48 service and capital contracts.

Contracts were awarded or extended in the following key service categories (not including miscellaneous one-off services):

  • events services

  • marketing services

  • community services

  • consultancy and other work

  • capital works

  • engineering

  • information technology.

See a list of all current major service contracts1 greater than $1 million annually.

For large service contracts with a value greater than $150,000, 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. Note: these reviews do not apply to capital works contracts.


During the year, the City of Melbourne did not enter into any contracts valued at $150,000 or more for services or $200,000 or more for works or more of a kind specified in section 186(5)(a) of the Local Government Act 1989. It also did not enter into any other contracts valued at $150,000 or more for goods or services or $200,000 or more for works without engaging in a competitive process.

The City of Melbourne entered into the following contracts in accordance with section 186(5)(c) of Local Government Act 1989. These contracts were entered into in reliance on Ministerial exemption.

Ministerial Exemption

Contract Title

MAV Procurement

MAV ‒ IT Services Panel

MAV Procurement

Corporate Uniforms Panel Contract

MAV Procurement

Office and Workplace Supplies

MAV Procurement

Mobile, Fixed Phone And Data Services

Procurement Australia

Desktop Refresh

Procurement Australia

IT Products and Services

Procurement Australia

Electricity Supply to Public Lighting

Procurement Australia

Learning and Development Services Panel; PA Panel 1410/0618 ‒ Recruitment and Associated Services

Procurement Australia

Courier Services

Procurement Australia

Library Books, AV Media, Periodicals, Subscriptions and Related Services

Procurement Australia

Provision of Printing and Related Services

Procurement Australia

Retail Supply of Fuel

Procurement Australia

Provision of Security Services

Procurement Australia

Fleet Consumables

Procurement Australia

Fleet Leasing Services

Procurement Australia

Metered Electricity Services

Procurement Australia

Natural Gas Supply to Council Buildings

City of Melbourne Ministerial Exemption

WoG Cloud Services Panel (Federal Government Contract)

State Purchase Contract

Provision of Travel Services

State Purchase Contract

Mail and Postal Services

State Purchase Contract

Print Management and Associated Services

State Purchase Contract

Provision of Banking Services

State Purchase Contract

Master Agency Media Services (MAMS)

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