1. Delegated Authority
Whilst Business Unit staff have the opportunity to conduct their own purchasing processes as outlined herein, they are required to undertake desktop training with the Contracts Unit prior to conducting any purchasing process for the first time.
For all purchases valued at $100k or more, a contract number must be obtained from the Contracts Unit who will enter the details into Council’s Contracts Register which is required under State Government Procurement Guidelines.
Quotes must be obtained within the following parameters if the required works or service are not already covered by an existing Annual Supply contract.
| $0 - $10,000 | Obtain at least one written quotation. |
| $10,001 - $100,000 |
At least two written quotations are to be invited from suppliers who are considered able to meet the requirements. Where only one quotation is received from those invited, Value for Money must be demonstrated. When seeking and/or evaluating quotes, preference will be applied to local suppliers and a minimum of one local supplier must be invited, depending on availability or local suppliers. |
| $100,001 - $300,000 |
Obtain a Contract Number. Undertake a formal Request for Quotation process by following the process within Council’s eTendering Portal. Where only one quotation is received from those invited, Value for Money must be demonstrated. When seeking and/or evaluating quotes, preference will be applied to local suppliers and a minimum of one local supplier must be invited, depending on availability or local suppliers. |
| Over $300,000 |
Obtain a Contract Number. A formal Request for Tender process must be undertaken by Council’s Contract’s Unit using Council’s eTendering Portal. |
Please note that when sending Purchase Orders (PO) via facsimile, the ‘City of Greater Dandenong – Purchase Order Terms and Conditions’ on the reverse side of the PO must also be sent, unless it is on a current CGD contract.
2. Approval Levels
Prior to entering into any purchase with a value exceeding their financial delegation, a staff member must discuss and get approval for the purchase from an Officer with an appropriate delegation to the value of the purchase. Council’s Purchase Order System automatically escalates the approval process and satisfies the above requirement.
Broadly speaking, the current levels of Financial delegation within the organisation are as follows:
- CEO – $200,000
- Directors – $100,000
- Manager, Asset Management Systems - $50,000
- Manager, City Improvement - $50,000
- All other Managers - $25,000
- Most Team Leaders - $10,000
- Specific staff positions range from $500 to $5000
In addition to the above Council has approved the Executive Management Team acting as a Tender Board to consider and approve Tenders ranging from $200,000 up to a value under $500,000. Any Tender to the value of $500,000 or more must be submitted to Council for approval.
3. Reporting Process
Staff are responsible for preparing a suitably detailed report for management approval of purchases under $100,000.
Reports for purchases over $100,000 to under $200,000 are approved by the CEO and must be in the format of the report template found in this section under “Reference Documents”.
A copy of the report must also be sent to the Contracts Unit who will enter the contract details into Council’s Contracts Register to comply with State Government requirements.
Report formats for purchases over $200,000 can only be prepared by the Contracts Unit.
Establishing Contractual Risk
It is of vital importance to Council, regardless of the value of your purchase, that a correct decision be made in establishing the relevant level of Risk Management documentation required to protect Council from exposure to Legal, Contractual and Occupational Health and Safety and Environmental risks.
It is mandatory for Business Units to discuss their purchase needs with the Contracts Unit to determine the level of risks involved.
Specific guidelines and policies are in place relative to the value and complexity of the proposed purchase. For further information, refer to the Guidelines for Assessing Purchase Complexity.
Direct Payments
Please note that approval to use this method of payment is strictly restricted to the following account types – Utility Payments, Tax related Payments, Employee Related Payments, Ratepayer/Trust Refunds and Miscellaneous including Petty Cash, Community Grants, Contract payments, Insurance payments, Prepaid Seminar/Conference, and Purchases via Purchase Cards.
All other payments must be accompanied by the issue of a Purchase Order. Non compliant payments in this category will be reported to the relevant Director.
All invoices submitted for payment must be signed off by the officer receiving the goods or services and also signed by the next officer with a higher delegated authority.
