Wellington City Council
Me Heke Ki Poneke
Operational
Procurement Policy
September 2022
Internal Procurement Policy | Wellington City Council
Our Council Values
Our Council values underpin our internal policies
He tangata, he tangata, he tangata
Whakapai ake
We put people at the heart of what we
We’re always improving
do
Mahi ngātahi
Mana tiaki
We collaborate
We care for our places
Purpose
This document outlines how procurement activities are undertaken at Wellington City Council
(Council).
Scope
The scope of this Operational Procurement Policy (Policy) includes all procurement activities that
are undertaken at Council. This Policy is owned by Council’s Chief Executive and Chief Financial
Officer.
Responsibility for implementation and future review of the strategy lies with the Manager,
Commercial Partnerships. The Policy is mandatory for all Council procurement and where
appropriate may apply to Council Controlled Organisations (CCOs). The Policy has the capability to
incorporate any future Councillor directives and priorities.
How we deliver Procurement at Council
Every year Wellington City Council spends over $500m on external suppliers to help the Council
run its operations and deliver its projects. This includes a wide range of works, goods and services
across all Council functions that together enable the delivery of community infrastructure,
facilities, and services for the residents of Pōneke.
Commercial Partnerships work together with Business Units to enable Council to partner with
organisations to deliver on commercial outcomes that align with our organisation’s values, are
guided by our vision, and upholds our commercial principals. Positive social, cultural, economic,
and environmental outcomes for Pōneke are at the heart of our commercial decision making.
Kia mahi ngātahi mō Pōneke mō tōna āpōpō.
Working together for Wellington's future.
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Internal Procurement Policy | Wellington City Council
Council’s approach to procurement is informed by the Policy and Procedures which includes our
commitment to the following principles:
Objectives
Description
Best value
Get the best possible outcomes over the whole of life of the
Aroha
asset, services or works, by striking the right balance of good
We act with the best of intent
outcomes, good quality and good price and good
management.
Fit for the future
Tangible social, economic, cultural, environmental, and
Tika
public wellbeing outcomes are achieved through
We do what is right
procurement that go beyond the immediate purchase of
goods, services, and infrastructure.
Effective and efficient
Processes are fit for purpose, user friendly and intuitive. They
processes
balance being effective and efficient with our responsibilities
Whakapai ake
as prudent custodians of public money.
We are always improving
Risks are identified and
Appropriate controls are in place and adequate data is
managed
available to enable the Council to optimise spend and to
Kaitiakitanga
meet our legislative obligations as a governing local
We are guardians
authority. We are risk aware, not necessarily risk averse.
Partnering for greater impact
Suppliers choose to work with the Council as a preferred
Kotahitanga
client and/or partner. Stakeholders seek out procurement
We are stronger when we work and commercial involvement because it adds value. The
together
Council is an employer of choice for staff.
Our Commercial Values and Behaviours
All those undertaking commercial activities at Council will uphold and promote our Commercial
Values and Behaviours of:
• Act with integrity and transparency, ensure our commercial decision making and processes
are ethically sound.
• Use and promote te reo Māori, mātauranga Māori and te ao Māori in our everyday work
and are proactively engaging in deepening our understanding of these too.
• Protect Council and its employees by ensuring robust and high-quality commercial
processes and outcomes occur for Council, our iwi partners, our local economy, and our
community.
Our Commercial Function
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Internal Procurement Policy | Wellington City Council
The function of the Commercial Partnerships team is to ensure robust and high-quality commercial
decision making occurs in partnership with Business Units. Together, we ensure that the best
outcomes can be achieved by:
• Maintaining the trust of our business by providing efficient, high-quality, and outcomes-
focused advice and guidance on commercial approaches to fulfil our requirements.
• Guaranteeing that all commercial approaches advised on by Commercial Partnerships and
acted on by Business Units are ethical, equitable, fair, and transparent.
• Enabling value to be realised in our commercial arrangements by ensuring risks (including
insurance), costs, relationships and the health of our local economy has been robustly
considered in our processes.
• Pursue supply chain efficiency and cost-savings where it enables effective commercial
outcomes to be achieved.
• Align commercial approaches with wider Council strategic directives focused on the
prosperity and protection of our communities and environment delivered through tangible
outcomes.
Our Economy and Suppliers
In order for Council to effectively deliver we need healthy markets, sustainable supply chains, well-
managed commercial arrangements and strong relationships with our suppliers and delivery
partners. Commercial Partnerships, alongside other key business units and contract managers
must:
• Proactively manage all contractual arrangements to prioritise risk management and the
achievement of social, cultural, economic, and environmental outcomes as part of the
delivery of requirements.
• Support the development of a healthy, diverse, and competitive market by ensuring
sourcing documents and compliance requirements (standards, insurance, risk) are
appropriate for market conditions, and that respondents have the tools to submit a
meaningful response.
• Uphold our commitment to Pōneke being an inclusive, sustainable, and creative capital for
people to live, work and play by prioritising commercial approaches that enhance the
wellbeing of our local economy and people.
• Enhance the prosperity of the Māori economy through targeted initiatives and action that
enables positive holistic outcomes for mana whenua and Māori in the capital city of
Aotearoa.
• Contract with entities that promote and uphold our Supplier Code of Conduct.
The Commercial Lifecycle
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Internal Procurement Policy | Wellington City Council
All commercial activities should follow the Commercial Lifecycle (Figure 1) to ensure value for
money, alongside desired outcomes are delivered on.
The appropriate commercial approach and procurement methodology will be based on a number
of factors in accordance with the Procedures and will include but is not limited to the risk profile
of the commercial activities, the market, the cost and nature of the goods or services requiring to
be delivered, and Broader Outcomes.
Arotake
Whakamahere
Review
Plan
Whakahaere
Whai
Manage
Source
Figure 1 Council Commercial Lifecycle
Roles and Responsibilities
Role
Description
Responsibility
All Staff
Any Council or CCO staff
Remain up to date with Council
member.
Procurement Policy and Procedures.
Business Unit(s)
General term for any
Responsible for the provision of accurate
individual or team who
and timely information required by
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Internal Procurement Policy | Wellington City Council
Role
Description
Responsibility
have a commercial and/or
Commercial Partnerships to develop
procurement requirement.
tailored commercial approaches.
Referred to as the
Business Owner on
procurement activities.
Commercial
Function in Council
Responsible for designing, developing,
Partnerships
responsible for commercial
and leading tailored commercial
Team
activities undertaken.
approaches for Business Units across the
Commercial Lifecycle. Referred to as
Commercial Lead on procurement
activities.
Manager and
Individual in the position of
Responsible for approval of commercial
Principal Advisor, Manager, Commercial
approaches, including exemptions, in line
Commercial
Partnerships at Council or
with the Policy and Procedures.
Partnerships
Principal Advisor,
Commercial Partnerships.
Delegated
Individual with the required
Responsible for the approval of
Financial
delegation for approval to
expenditure related to a determined
Authorities (DFA)
incur expenditure at
commercial approach.
Council.
Executive
Individual with the required
Responsible for the approval of
Leadership Team
delegation to approve
commercial activities in accordance with
(ELT) member
commercial activities in
the Delegations Policy.
accordance with the
Delegations Policy.
Contract
Individual with
Responsible for the day-to-day
Manager
responsibility for ensuring
management of their contract as part of
that the rights and
the Manage and Review components of
obligations under their
the Commercial Lifecycle.
Contract are met.
Legal Services
Function in Council
Responsible for the day-to-day legal
responsible legal advice
advice and guidance for Council,
and associated activities.
including contract advice and
development, bespoke terms
development, legal risk guidance and
variations.
Risk & Assurance Function in Council
Responsible for the day-to-day
responsible for risk and
operational and strategic risk and
assurance advice, guidance,
assurance advice for Council, including
and management related
Operational Risk Register assessments.
activities.
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Internal Procurement Policy | Wellington City Council
Role
Description
Responsibility
Finance &
Function in Council
Responsible for the day-to-day financial,
Business
responsible for financial
management accounting, insurance,
support to help BUs deliver
business performance and reporting
their strategic and business
support and advice for Council.
goals.
Monitoring
Commercial Partnerships, through the Contract Manager(s) or Business Owner(s), will monitor
relevant spend, risk, performance and Broader Outcomes where required as part of contributing
to Council strategic commitment.
For Council internal and external reporting or auditing requirements, commercial information
must be made available by the relevant Business Units in order to provide full and complete
information to the relevant parties.
Contract Management monitoring and reporting activities will be conducted in accordance with
the Contract Management Framework and as documented in the Procurement Plan.
Health, Safety and Wellbeing
Council is committed to reducing, and where possible, removing the risk of harm to its workers
and the public. Our workers are our employees, contractors, and volunteer workers. In our
workplace and that of our suppliers we want everyone to look after their own health and safety
and that of other people.
Appropriate resources will be allocated to ensure that:
• Health and safety hazards and risks are managed
• Legislative requirements are complied with
• Effective health and safety management systems are maintained.
Commercial Partnerships will work with the relevant Business Units to ensure obligations are
met, and health, safety and wellbeing is prioritised.
Risk and Insurance
Risk All commercial activities hold some element of risk that should be first assessed, and then
managed appropriately throughout the commercial lifecycle. Formal risk analysis and risk
management enable Council to decide which commercial approach should be used to effectively
manage risk. The Council approach to risk management as part of procurement activities is
outlined in the Procedures.
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Internal Procurement Policy | Wellington City Council
Insurance Insurance is only one element of an overarching risk management strategy. It does not remove the
liability of a party for their actions but instead provides financial protection for that party, as an
insured, in the event of an insurable loss or liability. The three common types of insurance relevant
to the purchase of goods and services are: Public liability; Product liability; Professional indemnity.
While standard levels of insurance are determined for Council, these need to be assessed against
each procurement to ensure they are fit-for-purpose and do not provide unnecessary levels of
compliance for Council or the market. The Finance & Business and Legal Services functions at
Council can support this.
Related Strategic Commitments
• 2021-2031 Long Term Plan
• Tūpiki Ora Māori Strategy
• Te Atakura First to Zero
• Broader Outcomes
• Te Upoko o te Ika a Māui Commitment
• Economic and Wellbeing Strategy
• Aho Tini 2030: Arts, Culture and Creativity Strategy
Related Council Policy and Procedures
• Procurement Strategy
• Procurement Procedures
• Delegations Policy
• Insurance Policy
• Health, Safety and Wellbeing Resources
• Investment Development
Framework (IDF)
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Document control
Policy owner
Commercial Partnerships
Date approved
September 2022
Approved by (ELT
September 2022
sponsor)
Review period
2 years
Next policy review date
June 2024
