2022-05-16 General Committee Meeting Agenda

GENERAL COMMITTEE MEETING AGENDA                                                     16 MAY 2022


   It is recommended that Council endorse the use of the Disaster Management Reserve
   restricted cash to progress this $100,000 work as an out-of-budget funding allocation.
   3.   Procurement
        a.   The original engagement of Erscon for emergency works was in accordance with
             section 234 of the Local Government Regulation 2012 – ‘A local government may
             enter into a contract for goods and services without first inviting written quotes
             or tenders if the contract is entered into under an LGA arrangement’.
        b.   In consultation with the Procurement Branch, Erscon Engineering Pty Ltd
             (Erscon) were directly sourced in February 2022 via Local Buy Arrangement BUS
             262-0317 Engineering and Environmental Services (LGA arrangement), to
             undertake work in leading our counter disaster activity.
        c.   For the services proposed under this report it is proposed that Erscon be
             engaged under LGA arrangement – Local Buy LB279 Project Management
             Services (Civil Infrastructure).
        d.   An Invitation to Quote (ITQ) was issued to Erscon under the above LGA
             arrangement on 22 April 2022.
             o     A subsequent review of the offer from Erscon demonstrates that the
                   schedule of rates and project methodology that matches the expected
                   criteria set out in the Tender. This offers Council a high confidence of
                   quality outcome by way of recovery of reconstruction costs from DRFA.
             o     A Probity Plan has been approved by Infrastructure Services which outlines
                   suitable justification along with confirmation of no conflicts of interest.
        e.   The option to seek multiple/competitive quotations for these services would result
             in delay along with a loss of recently learnt information about Council essential
             assets that require reconstruction.
        f.   Additionally, the ability to secure similar services at this point post the flood event
             would be at risk due to the demand for services across multiple councils and
             Government agencies.
        g.   Infrastructure Services now seeks to engage Erscon directly to project manage the
             reconstruction of essential assets within Noosa Shire Council. Further to this,
             Erscon are to advise and where approved, execute construction works that provide
             a more resilient asset outcome for Noosa Shire Council. For all projects, Erscon
             must ensure funding opportunities using the DRFA are maximised and no works
             will be undertaken without a cost recovery plan being approved.
   4.   Direct Source Justification
        a.   Value for Money by reducing risk exposure
                  Erscon has already been contracted to work in these key areas undertaking
                   some of Counter Disaster activities and Emergency Works actions. If Council
                   does not engage Erscon, the ability to engage a suitable supplier of
                   equivalent experience is very low.
                  A market scan indicates that other notable disaster recovery suppliers have
                   taken contracts elsewhere or are large infrastructure suppliers focused on
                   more substantial projects such as single sites totalling $30,000,000.
                  A delay in engaging a supplier is likely to impact on the completion of the
                   program of work, compromising the deadlines set by QRA for submission
                   and then final acquittal. There are over 20 sites requiring treatment over
                   the next 24 months.
                  The supplier is continuing to work at the original rates, despite opportunity

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