2022-03-14 General Committee Meeting Agenda

GENERAL COMMITTEE MEETING AGENDA                                                        14 MARCH 2022


contractor, the fixed fee component reduces the revenue fluctuation risk for the contractor, and the
revenue share component provides a financial incentive for the contractor to ensure that vehicles
are transported in an expedited and efficient manner.
This option sees the contractor provide its own vessels for it to operate the service, consistent with
Council’s approach for the full history of its involvement in the service. Identified strengths are the
ability to seek timely, competitive market responses for the supply and maintenance of the vessels,
greater contractor oversight of its own ferries and leveraging of available expertise of existing
operators. Weaknesses of this option are the need for longer contract terms, which limit future
contracting alternatives.
Proceeding to a tender for the fully outsourced operating model in Option 2 is recommended by
staff, as it retains the demonstrated strengths of Noosa’s outsourced model, which have avoided
ratepayer subsidisation, and would allow competitive market responses from a range of
experienced operators having different procurement opportunities for new or existing vessels.
A key element to the new service arrangement is adaptability; in particular to accommodate long-
term changes to technology, demand, legislation or environmental conditions. Provisions for future
adaptability are proposed via a draft Service Agreement contract prepared by King and Company
solicitors, which will form part of the tender package.
3.    Recommended Tender Approach
Staff recommend Council proceeds to tender for the fully outsourced service model identified as
Option 2 above. Indicative tender details are proposed as follows:

 Service                                    Supply and Operation of Vehicle Ferries
 Contract Type                              Service Agreement
 Term                                       10 - 20 years
 Option                                     5 years
 Commencement Date                          1 July 2024
 Payment Structure                          Fixed fee + revenue share
 Minimum Vessel Sizes                       2 x 10 vehicle ferries
 Operating Hours                            Per existing times but subject to variation by agreement
                                            should need arise
 Responsibility for Setting Crossing Fees   Council
 and Concessions
 Mandatory Service Components               Electronic payments, Service Plan, Insurances
 Tender Response Period                     3 - 4 months
The Service Plan listed above will be a key tender component requiring submitters to extensively
detail their proposed service provision systems, methods and processes, together with proposed
improvements over the current service. The Service Plan will provide opportunities to identify
market driven innovation and consider new queue management approaches, technology or
infrastructure needs.
Proposed tender assessment weighting criteria are as follows:
 Criteria                                            Weighting
 Price                                                40%
 Service Plan                                         30%
 Track Record and Capacity                            12.5%
 WH&S and Quality Systems                              5%
 Contribution to Local Economy                         5%
 Environment and Sustainability                        7.5%
Timing for the tender is expected to involve:
 Tender release                             May 2022
 Tender close                               August 2022
 Report to Council on the tender outcome    October 2022
 Potential tender award                     November/December 2022

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