2015-05-26 Infrastructure & Services Committee Agenda

INFRASTRUCTURE & SERVICES COMMITTEE MEETING AGENDA                                26 MAY 2015


Tenders Received

Four (4) tenders were received from companies who deal in bulk recycling of metals
products as detailed below:

1.    Onesteel Recycling Pty Ltd
2.    Certified Destruction Services Pty Ltd.
3.    Country Metal Recyclers (Sims Group Australia Holdings Ltd)
4.    The Recycling Centre

Tenders initially closed at 4pm on Friday 24 April 2015. Due to confusion regarding the
tender pricing structure, all tenderers were invited to resubmit prices by 5pm on Wednesday
29 April 2105.

Tender Evaluation
Tenders were assessed in accordance with the tender Probity Plan by 2 members of the
Waste Management Section, an officer from Procurement and Fleet Section and the
Workplace Health and Safety Officer.

The highest scoring tender was received from the incumbent contractor Country Metal
Recyclers (Sims Group Australia Holdings Ltd). This tenderer scored highest in both pricing
and other evaluation criteria. Sims Group operates a very large metals recycling business in
Australia and services many local governments who recycle metal products at their resource
recovery centres. The contractor has a known and respected performance record through
past contracts with Noosa Council. The evaluation team unanimously recommend that
Council award the contract to Sims Group Australia Holdings Ltd.

Previous Council Consideration

Nil

Finance & Risk

Approximately 2,000 tonnes of recycled metals are sold annually by Council. The sale of
metals and lead acid batteries provides council with a significant revenue stream. This
revenue offsets some of the costs of resource recovery operations.

1.      Examples of how prices are calculated
The rate paid for ferrous scrap is based on the preceding month’s average “Tex Report”
(weekly mid-point), divided by the Reserve Bank of Australia (RBA) preceding month’s daily
indicative AUD/USD exchange rate, multiplied by the contractor’s offered percentage.

The rate paid for lead acid batteries is based on the previous month’s average London Metal
Exchange (LME) “Lead” Cash Sellers Price, divided by the Reserve Bank of Australia (RBA)
preceding month average daily indicative AUD/USD exchange rate, multiplied by the
contractors offered percentage.

2.     Risk
Some risk is associated with fluctuations in world commodity market prices as these prices
rise and fall regularly.

Note: When the tender documents were prepared the amount of metal recovered was
estimated and tenderers have priced on this volume. Since that time the amount of metal




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