2022-09-12 General Committee Meeting Agenda

GENERAL COMMITTEE MEETING AGENDA                                           12 SEPTEMBER 2022


   6.    Request for Quotation Assessment Details
   RFQ quotation assessment scoring detail is included in Table A with further detail regarding
   SLSQ’s response to the RFQ assessment criteria provided below.
   Table A – RFQ Assessment Details




   Price (Value for Money)
   The current lifeguard agreement value is $1,542,997 per annum plus CPI. SLSQ submitted
   two price options as part of its RFQ response. These are:
   Submission Price Option 1- $1,856,264 indexed to CPI (current practice)
   This price is approximately 20% or $313,000 more than the current agreement value and
   reflects Council’s specified service level increases. The price also includes an extra $110,000
   due to increases in SLSQ’s base hourly rate in the first year of the agreement. The increase
   is due to SLSQ’s requirement to accommodate the future risk of uncertainty between a CPI-
   aligned payment model and Fair Work Commission aligned wage increases for its workforce.
   Submission Price Option 2 - $1,746,907.17 indexed to Fair Work Commission wage
   increases
   This price is approximately 13% or $204,000 more than the current agreement value and
   reflects Council’s specified service level increases and no increase to SLSQ’s base hourly
   rate in the first year of the agreement (a reduction of $110,000).
   Given the contract is predominately labour based and SLSQ’s industrial agreement aligns to
   Fair Work Commission wage increases, SLSQ have proposed the new agreement’s annual
   price increases be indexed to the Fair Work model rather than CPI. SLSQ have indicated a
   major enterprise risk is increasing labour costs over the life of the contract at a rate greater
   than CPI.
   SLSQ have advised linking to the Fair Work model provides their organisation confidence to
   provide the best value for money starting point for labour while CPI is proposed as the
   indexation mechanism for price increases for equipment and consumables. SLSQ have
   advised other SLSQ lifeguard contracts throughout Queensland are structured in this way
   and this report recommends Council adopt this approach.
   Summary of Remaining Assessment Criteria
   Overall, SLSQ provided a thorough, well written application that fully addressed the
   assessable criteria. The submission demonstrated an excellent track record and substantial
   past experience.
   The respondent’s contribution to the local economy and community was of a high standard
   with sufficient examples provided. The submission demonstrated excellent

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