Question On Notice No. 1681 asked in the Legislative Council on 9 October 2018 by Hon Martin Aldridge
Question Directed to the: Minister for Environment representing the Treasurer; Minister for Finance; Energy; Aboriginal Affairs
Parliament: 40 Session: 1
Question
I refer to Western Power, and I ask:
(a) does Western Power utilise the services of external contractors for repairs, maintenance and other services directly related to the operation of the South West Interconnected System; and
(b) if yes to (a), please provide:
(i) the nature of the work supplied or contracted;
(ii) the process used to identify suppliers or contractors and obtain services;
(iii) what is the monetary threshold used by Western Power that requires it publicly tender or offer its work;
(iv) what level of management has authority to issue work below and above the threshold identified in (iii);
(v) what procedures or policies are in place to quality assure work undertaken; and
(vi) are the prices fixed at a set rate for the duration of the contract or how do the contracts anticipate variability in quoting and costs relating to undertaking work?
Answered on 6 November 2018
(a) Yes
(b)(i) Western Power utilises suppliers including external contractors via panel arrangements and bespoke contracts to deliver project and programmed services on an as needed basis across the Western Power network.
(ii) Western Power welcomes organisations to identify themselves and register their interest for any Western Power procurement requirement via its internet page. Western Power may also conduct registrations of interest through national media platforms and detail upcoming tender events on its internet page. Suppliers are prequalified through competitive tender events to supply/deliver under agreed terms and conditions and may be located in, or able to service/deliver to any part of the Western Power network.
(iii) Western Power conducts all procurement activity in accordance with the thresholds set out in its Procurement Policy and Standard to promote fair, open and effective competition, maintain standards of probity, safety and governance and drive value for money. The procurement thresholds apply to new procurement activities that are not conducted under existing contracts, and generally a public tender is conducted where the value of the transaction is greater than $150,000.
(iv) Western Power conducts all procurement activity in accordance with its Procurement Policy and executes in accordance with its Delegated Financial Authority and Authority to Execute policies, guidelines and standards, which set out the monetary thresholds and classifications of expenditure assigned to positions within Western Power. Further, the Electricity Corporations Act 2005 requires Western Power to seek the Minister for Energy’s approval for any financial commitment of $104 million or above.
(v) Potential contractors are assessed in the process of applying to procurement panels to ensure they have the appropriate safety standards, performance history and experience to complete the works. Suppliers may be awarded Deed(s)/Contract(s) following evaluation of key criteria including relevant experience and track record, capability and capacity, subcontractor management, quality management, safety management and affordability. Performance of suppliers is managed in accordance with Western Power’s Contract Management Framework.
(vi) Pricing strategies and methodologies are dependent on the requirements for each procurement event and are appropriately aligned to fixed lump sum or schedule of rates and variations or escalations considered with the procurement strategy or contract management frameworks.