2014-12-09 Infrastructure & Services Committee Agenda

INFRASTRUCTURE & SERVICES COMMITTEE MEETING AGENDA                               9 DECEMBER 2014


In developing a procurement strategy it was considered beneficial to Council and the existing
landfill operator to tender the projects as a single contract.

The request for tender was publically advertised in the Sunshine Coast Daily and the
Brisbane Courier Mail on Saturday 11 October, 2014.

At tender box close on Tuesday 4 November 2014, the documents had been downloaded
108 times and submissions had been received from eight (8) respondents:

1.    PJM Civil Contractors Pty Ltd
2.    Robson Civil Projects
3.    Sunstate Group Pty Ltd
4.    Moggil Constructions Pty Ltd
5.    Ostwald Bros.
6.    Sunshine Coast Project Management Pty Ltd
7.    Pentacon Pty Ltd
8.    Hutchinson Builders

The evaluation panel noted that seven submissions were of a very high standard and that
five (5) of the eight (8) offers were very close in price. The evaluation team identified that the
submission from Sunshine Coast based Sunstate Group Pty Ltd comprehensively addressed
the requirements set out in the tender specification receiving the highest non-price score and
the second highest price score, resulting in the highest combined score. The evaluation
team considers the offer from Sunstate Group Pty Ltd to be most advantageous to Council.

These works exclude the specialist works for the dosing and monitoring equipment which will
be tendered for separately.

Pending approval from Council to award the contract, it is understood that that the preferred
contractor will be able to commence onsite in early January 2015. The duration of the project
is 13 weeks, excluding an allowance for wet weather. This timing is suitable to the landfill
operations.

The supplying and installing of dosing, monitoring and SCADA equipment is not included
within this contract as the works are deemed specialist works best managed more closely by
Council rather than through a main contractor.

Previous Council Consideration

Council considered and approved this project for inclusion in the 2014/15 Capital Works
program.

Finance & Risk

Noosa Council’s budget for this project was based on Sunshine Coast Council estimates
developed by consultants in 2013. A post tender comparison of the original estimates and
the prices received indicates that in a number of areas the estimates were not relative to
current market price. It is considered that the price difference is more from optimistic
estimating rather than lack of competition or price escalation within the marketplace.

The project involves civil works in a location that has risk of encountering unsuitable material
over and above that which has been allowed in the estimates. On this basis a financial
contingency of 5% is deemed to be required over and above the contract price.




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