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Late Items

 

Council  Agenda

 

 

 

9 December 2015

 

 

 

 

 

ALL INFORMATION AVAILABLE IN VARIOUS FORMATS ON REQUEST

 

 

 


CITY OF BUSSELTON

Late Items FOR THE Council  MEETING TO BE HELD ON 9 December 2015

TABLE OF CONTENTS

 

ITEM NO.                                        SUBJECT                                                                                                                              PAGE NO.

12..... Engineering and Works Services Report. 3

12.1        TENDER RECOMMENDATION - RFT 16/15 CONSTRUCTION OF LANDFILL CELL 1 AT DUNSBOROUGH WASTE FACILITY. 3

 


Council                                                                                      3                                                               9 December 2015

12.             Engineering and Works Services Report

12.1           TENDER RECOMMENDATION - RFT 16/15 CONSTRUCTION OF LANDFILL CELL 1 AT DUNSBOROUGH WASTE FACILITY

SUBJECT INDEX:

Waste Management

STRATEGIC OBJECTIVE:

Environment and climate change risks and impacts are understood and managed.

BUSINESS UNIT:

Operations Services

ACTIVITY UNIT:

Waste Management

REPORTING OFFICER:

Waste Coordinator - Vitor Martins

AUTHORISING OFFICER:

Director, Engineering and Works Services - Oliver Darby

VOTING REQUIREMENT:

Simple Majority

ATTACHMENTS:

Attachment a   Confidential Tender Evaluation and Recommendation Report   

  

The attachment to this item is confidential in accordance with Section 5.23(2)(c) of the Local Government Act 1995, a contract entered into or that may be entered into by the Local Government.

 

PRÉCIS

 

The City of Busselton invited RFT 16/15 Construction of Landfill Cell 1 at Dunsborough Waste Facility and received 14 submissions. This report summarises the tender responses and makes recommendation to award the tender.  This report is presented for consideration as a late item at the Council meeting as the tender closed on 1 December, 2015. Fourteen tenders were received and in order to meet the appropriate project delivery schedule a contract needs to be awarded by 31 December, 2015.

 

BACKGROUND

 

The objectives of this Request for Tender are to appoint a suitably qualified contractor for the Construction of Landfill Cell 1 at Dunsborough Waste Facility located at Western Cape Drive, Naturaliste, for the City of Busselton.

 

This Request for Tender specified the requirements of the City and invited suitably qualified and experienced respondents to submit bids to enter into a Contract for the Construction of Landfill Cell 1 at Dunsborough Waste Facility, in accordance with the detailed design and specification set out in the request for tender.

 

The requirements of for the new waste cell include:

 

•             trimming and shaping existing floor and batters of Cell 1 to final contours

•             excavation of leachate drainage sump and perimeter anchor trench

•             construction of leachate extraction system

•             supply, delivery and installation of lining system

•             construction of perimeter access road

•             construction of leachate treatment pond

 

The successful tenderer will be reporting to the Director of Engineering and Works Services.

 

The contract will be a construction contract only. Previously the City of Busselton engaged Bowman & Associates consultants to complete the detailed design of Cell 1. Bowman & Associates will continue to be engaged to sign off on portions of the construction work as required to ensure the work has been completed in accordance with the detailed design.

 

The request for tender for the Construction of Landfill Cell 1 at Dunsborough Waste Facility was advertised from 24th October 2015 for a period of four weeks, closing on the 1st December 2015.

 

The City received forty nine requests for the tender documents and received fourteen tender submissions. A tender evaluation panel was formed to evaluate all tenders submissions and prior to the evaluation meeting and the tenders were assessed in accordance with the relevant WALGA guidelines and in the manner described in the Officer Comment section below.

 

A comprehensive summary of these responses and pricing schedules has been included in the confidential attachment.

 

STATUTORY ENVIRONMENT

 

Section 3.57 of Local Government Act 1995 requires “A local government to invite tenders before it enters into a contract of a prescribed kind under which another person is to supply goods and services”.

 

Part 4 (Tenders) of the Local Government (Functions and General) Regulations 1996 require that tenders be publicly invited for such contracts where the estimated cost of providing the total service exceeds $150,000.

 

Compliance with the Local Government Act 1995 section 3.57 is required in the issuing and tendering of contracts.

 

RELEVANT PLANS AND POLICIES

 

The City’s purchasing, tender selection criteria, occupational health and safety and engineering technical standards and specifications, were all relevant to this tender and have been adhered to in the process of requesting and evaluating tenders.

 

FINANCIAL IMPLICATIONS

 

The total budget for the Construction of Landfill Cell 1 at Dunsborough Waste Facility is $3.0 million.

 

To date $785,000 has been spent on bulk earthworks, detailed design, surveys, works supervision, leaving a balance of $2.2 million.

 

WBHO submitted a tender price of $1,063,838.35.

 

The tender contract value will be $1,063,838.35 (excl GST) which is under budget. This amount does not include any funds for potential contingencies/variations which might amount to up to 10% of the contract, which will be required to be spent against the available budget. Due to the nature of these works there is the potential of an unforeseen element which may require a variation to be paid to the contractor.

 

It is expected that any variation will be paid from the existing budget, authorised by the superintendent. 

 

Any unspent funds will remain in the Waste Facility and Plant Reserve.

STRATEGIC COMMUNITY OBJECTIVES

 

The Construction of Landfill Cell 1 at Dunsborough Waste Facility is consistent with following the City of Busselton’s Strategic Objectives:

 

5.        Cared for and enhanced environment;

 

5.3 Environment and climate change risks and impacts are understood and managed.

 

RISK ASSESSMENT

 

An assessment of the potential implications of implementing the Officer’s recommendation has been undertaken using the City’s risk assessment framework. The assessment sought to identify ‘downside’ risks only rather than ‘upside’ risks and where the risk, following implementation of controls has been identified as medium or greater are included below.

 

Risk

Controls

Consequence

Likelihood

Risk Level

Delay of materials from a third party. Lining materials for construction are supplied by a sub-contractor. The worst impact would be a delay in materials delaying the completion of the project

Early award to the contractor.

 

Included in the contract scope and project timeline. Delay would be at contractor’s risk.

Liquidated damages to be imposed for delays that cause loss to the City.

 

Medium

Unlikely

Medium

The contractor fails to complete the waste cell by the end of the contract period (subject to approved extensions of time) or the financial year

Weekly project meetings to monitor progress. Liquidated damages to be imposed for delays that cause loss to the City

Medium

Likely

Medium

The costs associated with the construction is over the Council endorsed budget due to variations to the contractors scope of work

Tender contract terms & conditions; Weekly project meetings to monitor progress and any variations to scope

Medium

Likely

Medium

The contractor fails to construct the waste cell in accordance with the design

Designer will be contracted  to provide sign off on construction in

accordance with design and any hold points

High

Unlikely

Medium

 


 

CONSULTATION

 

Nil.

 

OFFICER COMMENT

 

The tender assessment was carried out by a tender review panel consisting of Vitor Martins, Waste Coordinator, Allan Miller, Waste Management Officer and Sophia Moore, Contract & Tendering Officer. Tender submissions were received from the following organisations:

 

•             Spannas Engineering

•             BCP Contractors Pty Ltd

•             Leeuwin Civil Pty Ltd

•             McMahon Services Australia P/Ltd

•             Ertech Pty Ltd

•             WBHO Infrastructure Pty Ltd

•             Charles Hull Contracting Pty ltd

•             The 8 Construction Pty Ltd

•             Cowara Contractors Pty Ltd

•             All Earth Group Pty Ltd

•             BMD Constructions Pty Ltd

•             Gunther Civil Pty Ltd

•             JAK Civil Pty Ltd

•             Infratech Construction Pty Ltd• 

 

All tenders were found to comply with the terms and conditions and mandatory requirements of the RFT. Accordingly, each tender was scored according to the qualitative criteria and included in the tender documentation as follows:

 

Criteria Weighting

 

(a)          Relevant Experience                                    10%

(b)          Key Personnel Skills and Experience         10%

(c)           Tenderer’s Resources                                  10%

(d)          Demonstrated Understanding                   20%

 

The net tendered price was scored using the ‘Average Based Scoring Method’ recommended by WALGA in the ‘Local Government Purchasing and Tender Guide’.

 

The panel members individually assessed the compliance and qualitative criteria and then applied an average to provide a final rating. The scores were then added together to indicate the rankings for 

each tender. The Confidential report attached provides further detail in relation to the relative merits of each of the individual tenderers. Following this evaluation, Officer’s recommend that WBHO Infrastructure Pty Ltd should be the preferred tenderer for the reasons outlined in the confidential report.

 

CONCLUSION

 

The tender evaluation panel have completed their assessment in line with the City’s tender process and Officers now recommend the Council award RFT 16/15 Construction of Landfill Cell 1 at Dunsborough Waste Facility to WBHO Infrastructure Pty Ltd.

 


 

OPTIONS

 

The Council may consider the following alternate options:

 

1.            The Council chooses not to accept the Officers Recommendation and award the Tender to an alternative tenderer. In the view of the Officer’s this could result in a Tender being awarded to a tenderer that has not presented the “best value” for money offer.

 

2.            The Council may choose not to accept the Officers Recommendation and not award the tender. This would mean going back out to tender, resulting in significant delays to the contract award and potential significant delays to the Construction of Landfill Cell 1 at Dunsborough Waste Facility.

 

TIMELINE FOR IMPLEMENTATION OF OFFICER RECOMMENDATION

 

The award of the tender can be made immediately after the Council has endorsed the Officer’s recommendation. Subject to finalisation of a number of minor contractual points, the successful tenderer will receive formal written notification within seven (7) days of the resolution. All unsuccessful tender applicants will also be notified at this time.

 

 

OFFICER RECOMMENDATION

ABSOLUTE MAJORITY DECISION OF COUNCIL REQUIRED

That the Council:

 

1.     Award tender RFT 16/15 – Construction of Landfill Cell 1 at Dunsborough Waste Facility to WBHO Infrastructure Pty Ltd for the total contract sum of $1,063,838.35 (exclusive GST).

 

2.     Delegate authority to the CEO to award variations, but limited so as not to exceed the overall project budget.