2018-02-06 Services & Organisation Committee Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                              6 FEBRUARY 2018


Financial comparisons
The tender assessment panel believe that the RRA offer significantly higher dollar returns
towards community waste and recycling initiatives approved by Noosa Council.

The Tender and draft licence required the licensee to specify a nominated % of the annual net
revenue that they will contribute to recycling and waste education and other initiatives approved
by Council. Both tenderers specified differing % amounts each year for the 7 year period based
on variables in their estimated gross revenue.

It was difficult to compare the proposed actual amounts in both tenders as they had different
expenditure and revenue estimates.

To fairly compare the financial return to Council over the 7 year period, the tender evaluation
panel assumed a standard net profit based on known revenues for both tenderers.

Using this assumption, the additional investment into waste and recycling initiatives over the 7
year period was RRA $1,147,740 and NCTC $747,165

Summary of comparisons between tenderers
NCTC
NCTC has delivered recycling and waste diversion services for Council for the last 17 years
operating as Briteside.

Over this time Briteside services have remained similar to the services they provided when the
program commenced. Manufacture of new items for sale from recycled material and restoration
of used furniture and other goods was more prevalent in the past, but noticeably less in recent
years.

While NCTC has had a strong focus on delivering external training programs of high local
importance to the community, they have not developed any significant new and innovative waste
reduction and recycling over this period.

RRA
This company is highly innovative and focussed on delivering quality waste management
outcomes and has provided excellent reports from referees in other local governments.

There is also a high component of local training programs and community support for
underprivileged and unemployed similar to NCTC but with more of a community focus on waste
reduction and training in the waste area.

There is also a substantially higher financial return to Council which can be used to fund future
waste related recycling and diversion initiatives, reducing the financial burden on Council to fund
these initiatives.

Importantly, this NSW organisation indicates in their submission a proposal to employ and train
locals and incumbent employees and to purchase locally.

Proposed successful tenderer
RRA scored significantly better than other tenderer when objectively assessed against the tender
evaluation criteria. Evaluation criteria were quantitative and set out prior to tender, focussed on
ensuring minimum risk to Council and highest likelihood of tenderer being able to meet all licence
requirements.


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