2014-09-16 Infrastructure & Services Committee Agenda

INFRASTRUCTURE & SERVICES COMMITTEE MEETING AGENDA                         16 SEPTEMBER 2014


2.   Background

Council has significant requirements for quarry, asphalt and bituminous materials that are
primarily used for road construction and maintenance. The aggregate value of these
requirements puts them into the ‘large contract’ category and would generally require a written
public tender. However due to the high cost of transporting these products there are only a small
number of suppliers, located within the region and who are well known to Council, that are able to
supply these products at a competitive price.

Council has access to a current contract for Road Reseal and Rehabilitation Services (Contract
No. 1011042). This arrangement was established by Sunshine Coast Council (SCC) with the bulk
of asphalt supplied by SCC’s internally owned and operated resources located at Dulong and
Image Flat (near Nambour).

This arrangement has been working well, however Noosa Council no longer has access to
asphalt and quarry materials from these resources at the Sunshine Coast Council’s ‘internal’
price, nor priority in access to supply of those materials. Therefore it became necessary to go to
the market to identify and secure additional supply of those materials under an arrangement
which represents best value for money for Council. With respect to the asphalt supply, the
purpose of this TCP is to find an alternative source for ex-bin asphalt for Portion 1A only of the
existing Roads Reseal and Rehabilitation Contract (1011042) and to continue to use the other
portions of the contract in their current form.

A TCP was used as the procurement methodology in the place of a traditional tender process as
it permitted a faster path to securing supply and enabled Council to negotiate directly with the
identified suppliers. This flexibility was paramount in securing supply so as to ensure the
upcoming road reseal and rehabilitation program was not delayed.


3.   Methodology for Establishing Asphalt Supply Arrangement

There are four (4) suppliers of asphalt materials within the Sunshine Coast region who can be
reasonably expected to be able to supply material to Council. These are:

1.   Downer who has plants at Bli Bli and Gympie
2.   Image Flat Quarry (SCC) at Nambour
3.   Tropic at Bells Creek
4.   Allen’s Asphalt at Caboolture.

All four suppliers were contacted, the procurement strategy was explained and they were
provided with a pricing schedule and estimated quantities. All four suppliers submitted pricing
and were provided the opportunity to resubmit a best and final offer.

Analysis of the pricing was conducted using pricing submitted by the suppliers and ‘cart and lay’
rates from the incumbent contractor, Allroads.




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