Purchasing principles

City of Hobart purchasing must be conducted legally and by encouraging fair and open competition between service providers. The core objective of any City procurement process is to achieve the required outcomes and obtain value for money.

City of Hobart purchasing principles are set out in its Code for Tenders and Contracts(PDF, 2MB), as follows:

 

Principle

Description

This means

Value for money

Achieving the desired outcome at the best possible price

Weighing up the benefits of a purchase against the cost. Factors which may be considered when determining value for money include:

  1. fitness for purpose
  2. whole-of-life costs over the lifetime of the product, good or service
  3. advantages of buying locally (e.g. shorter delivery lead-times, availability of local back-up and servicing and availability of spare parts)
  4. supplier’s capacity and ability, including management and technical capability and physical and financial resources
  5. climate change and environmental considerations and energy conservation
  6. contribution to achieving City of Hobart policy or strategic objectives
  7. social or community benefit
  8. risk assessment
  9. quality assurance
  10. disposal value.

 

Ethical purchasing standards

Acting ethically, being fair and unbiased and complying with the law in all dealings with service providers

Applying the following standards of ethics and ethical behaviours when dealing with suppliers:

  1. conducting all business in the best interest of the City of Hobart, avoiding any situation which may, or which could be deemed to, impinge on impartiality
  2. ensuring City monies are spent effectively and in accordance with City policies
  3. acting without favour or prejudice
  4. complying with legal requirements
  5. always seeking to maximise the value for money in all transactions
  6. maintaining confidentiality at all times in dealings with service providers
  7. declining gifts, gratuities or any other benefit which may, or could be deemed to, influence equity or impartiality
  8. not disclosing the bid of one service provider to any other provider to play service providers off against one another
  9. avoiding the purchase of dumped goods.

 

Encouraging open and effective competition

Ensuring that the procurement process is impartial, open and focused on encouraging competitive offers

Ensuring an open and effective procurement process by:

  1. putting transparent, open purchasing procedures in place
  2. ensuring the market is adequately tested by seeking an appropriate number of quotations or calling for public tenders
  3. avoiding use of biased or proprietary specifications
  4. if requested, de-briefing unsuccessful providers
  5. treating all service providers consistently and equitably.

 

Enhancing opportunities for local business

Where local capacity exists, actively seeking to engage the local market and encourage its participation in tender and quotation processes.

  1. actively seeking quotes from local businesses
  2. where local capability exists, ensuring that the discretionary elements of specifications do not prevent local businesses from competing.

Enhancing opportunities for local business does not mean giving preferential treatment to local service providers.