TCC Presentation

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TOWNSVILLE CITY COUNCIL SUSTAINABLE PURCHASING
TRAINING MODULE
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1. TRAINING OVERVIEW
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TRAINING OVERVIEW
1. Introduction to Sustainable Purchasing (SP)2.
SP What is it Why practice it?3. Overview-
Good SP Practices4. SP Principles5. Including
the Environment in Procurement Policies
Planning6. Writing Specifications7. Tender
Evaluation8. Make sure you get what you paid
for9. Bringing it all together
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OBJECTIVES
The purpose of this training is to help
youUnderstand what Sustainable Purchasing (SP)
isAppreciate the reasons to support it Be
able to apply the Principles of SP in procurement
policies practices, that is,how to do it!
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SP- WHAT IS IT WHY DO IT?
Sustainability- Triple Bottom Line (TBL) in
Public Disclosure.Q What is Unsustainable?Sound
Management Systems include the Environment, as
well as WHS Quality SystemsCompetitive
AdvantageEnvironmentally Responsible
BusinessesImage, Grants Support for Local
Business.
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WHAT IS SP?
SP means integrating environmental/health
considerations into purchasing decisions.Sustaina
ble Goods Services (GS) are those that have a
lesser or reduced effect on human health the
environment when compared with competing GS that
serve the same purpose.
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WHY DO SP?
Purchasing GS that satisfy value for money (V4)
criteria but also include sustainabilitySave -
improving efficiency reducing costs- landfill
charges on-sell recyclablesBetter manage
environmental risksTo ensure the public image
of TCC as a leader in environmental management
a responsible corporate citizenTo provide an
example to other businesses, industry the
community in promoting the use of sustainable
GS
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BARRIERS/MOTIVATORS
Changing behaviours in an organisation not only
requires an understanding of the levers that can
push the desired changes but also a knowledge of
the barriers.If you wish to improve your
organisations SP performance, it is worthwhile
understanding the reason to support it, the
barriers against it finding ways to overcome
these barriers (CBSM).
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KEY POINTS
SP means integrating environmental considerations
into purchasing decisions.Sustainable GS have a
lesser/reduced effect on human health the
environment when compared with competing GS that
serve the same purpose.There are sound reasons
for organisations to support SP which include
V4, environmental leadership risk management.
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GOOD PURCHASING PRACTICES
Planning the PurchaseDrawing up SpecsTender
Evaluation Plan (TEP)Tender Evaluation
ProcessManaging the Successful TenderFeedback
loops
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SP PRINCIPLES
Waste Management- Life Cycle Analysis
(LCA/C2C)Recycled vs RecyclableFuture Costing-
life timeManaging Environmental RiskMeeting
Sustainability CommitmentsWater/Energy/CO2e
reductionHaz Subs reduction EMS ISO
14000Stewardship- Due Diligence/Care/GED
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VALUE FOR MONEY (V4)

• Price (cost neutral)
• Transport
• Installation
• Insurance
• Operational costs
• Energy Efficiency
• Water Efficiency
• Service Maintain
• Spares
• Waste Mgt (WM)

• Durability
• After sales support
• Long Term V4
• Reusability
• Recyclablity
• Warranty
• Env OHS Risks
• EIA- 249P Corps Act
• Performance
• Image

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KEY POINTS

• WM Principles should guide procurement planning
  so that strict avoidance of waste is the highest
  priority disposal to landfill the least
  favourable option.
• When costs of GS are compared, it should not
  only relate to price but to all other costs
  during use of GS.
• SP as part of Environmental Risk Mgt strategy
• SP most effective at front end of procurement
  process, where relevant policies incorporating
  sustainable principles direct procurement.

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ENVIRONMENTAL POLICY

• Environmental Considerations will be taken into
  account in investment corporate strategies in
  the purchase of GS Australian Post
  Environmental Policy
• The organisation is committed to purchasing GS
  that reduce environmental impacts contributes
  to the socio-economic development of Brisbane
  City Council

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SP POLICIES PLANNING

• Service Level Agreements (SLA) Standards of GS
• Specifications
• Quantities Q (measurable)
• Verification (competent person)
• Evaluation- Tenders
• Re-evaluation
• Reporting- feedback

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TOP DOWN COMMITMENT

• Purchasing Policy
• Behavioural/cultural change
• Change Agents/Champs
• Rewards
• Contracts
• Education
• Promotion
• Involvement- design implementation
• Tools- ecospecifier

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ENVIRONMENTAL ISSUES

• Environmental Policy- Corporate/Business Units
• Information (tools)
• Current Product Performance
• Payback timeframe
• Price Premium- up-front cost
• Considerations- next sheet

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Qs BEFORE PURCHASING

• Is it needed at all?
• Life-cycle costs?
• Waste prevention?
• Toxicity?
• No virgin material?
• Sustainable harvest?
• Recycled/recovered?
• Reusability?
• Greenhouse gases

• Recyclability?
• Durability?
• Energy Rating?
• Water Rating?
• Disposal (package)?
• Clients Needs?
• Alternatives?
• CO2e?
• Equivalent CO2

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TARGET GS- OFFICE

• OFFICE
• A4
• COMS PAPER
• TOILET TISSUE
• STATIONARY
• TECHNOLOGY
• SPARE PARTS
• LIGHTS

• ELSEWHERE
• PARKS
• CONSTRUCTION
• FLEET

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SUSTAINABLE GS

• ecospecifier www.ecospecifier.org
• ecoBuy www.mav.asn.au/buyrecycled
• AGO www.greenhouse.gov.au
• www.greenprocurement.org.au/toolbox

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KEY POINTS

• To be most effective, sustainability issues need
  to be considered in the policy planning phases
  of purchasing.
• By adopting a proactive stance to the
  establishment use of SP policies, an
  organisation can ensure that SP becomes a
  reality.
• SP will be most successful with top-level
  management support, as such people have the most
  power to influence policy frameworks the
  general culture of the organisation.
• Consider sustainability issues in your
  procurement planning. Review previous checklist.
• Some types of goods such as paper, office
  equipment, landscaping materials, certain
  construction materials rubber/tyre derived
  products particularly lend themselves to SP
  considerations

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ELIMINATING BIAS

• Performance verses prescriptive specs.
• Obstacles colour, virgin paper, all-or-none
  basis, tight response delivery times.
• Over-Reliance on Track Record.
• Cost considerations- cheap vs longevity
• - Comparison shopping bulk purchasing
• - Life-cycle (LCA) costing
• - Demand management (reduced volumes)
• - Longer term solutions- economies of scale

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SUPPLIER CHECKLIST

• What is their Environmental Record?
• What is the Environmental Impact of their GS?
• What is the Environmental Impact of their
  production process?
• What are whole of life considerations?
• What are Environmentally positive features of
  each GS?

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USEFUL ADVICE

• Internal expertise
• Review Purchasing Policy
• Review Tender Template
• Re-develop Specs- biodegradable etc.
• Statement- greater recycled content preference
• Use eco-product databases
• Discussions with like organisations
• Attend relevant forums

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KEY POINTS

• Specs may result in bias against sustainable GS
  if overly prescriptive, reliant on track record
  or focus on up front costs
• Writing performance specs less likely to create
  bias
• When preparing spec based on existing template,
  check for amend prejudicial provisions.
• Add appropriate provisions to specs to enhance SP

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TENDER EVALUATION

• Sustainable factors must be incorporated in
  evaluation criteria before the Request for Tender
  (RFT) is released. Hughes Aircraft Systems
  International v Airservices Australia 1997 558
  Federal Court of Australia (30 June 1997).
• Scoring of tenders against predetermined criteria
  application of agreed weightings against scores
  is generally acceptable (similar to job
  applications).
• All tenderers must be legally compliant.

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KEY POINTS

• There are legal requirements relating to tender
  evaluation that impact upon SP. Importantly,
  environmental issues must be incorporated into
  evaluation criteria before the call for tenders.
• Checklists /or questionnaires can be used to
  gather assess environmental information on
  suppliers their GS. These can be stipulated in
  the requirements for the tenderer in the
  specification.
• Environmental issues need to be appropriately
  weighed in the tender evaluation process. V4
  considerations should encompass all the relevant
  factors rather than simply the cheapest purchase
  price.

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GET WHAT YOU PAID FOR

• The extent of monitoring of suppliers
  performance is determined by the level of risk
  with the GS being provided.
• Good monitoring of contractor performance
  progressively identifies, anticipates
  facilitates correction of short comings before
  the relationship is adversely affected.
• The suppliers performance must be assessed
  objectively using techniques against criteria
  which are pre-determined, clearly understood
  agreed by both parties.
• Techniques- Contract Management Meetings,
  Contract Reporting, Expediting,
  Inspection/Visits, SLA Performance Audits
  Financial Monitoring Review/Audit.

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KEY POINTS

• Standard Contract Management Procedures should be
  used to ensure compliance with SP components of
  specs.
• Refer Contract Management notes.
• Developed by DEPT of ENVIRONMENT CONSERVATION
  (NSW) Adapted from MOLINO STEWART PL.
  presentation.