2022-10-11 Services & Organisation Committee Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                            11 OCTOBER 2022


5.   REPORTS FOR CONSIDERATION OF THE COMMITTEE


1    T000074 NOOSA NORTH SHORE FERRY SERVICE TENDER

Author           Property Advisor, Denis Wallace
                 Corporate Services Department

Index            ECM/Tender T000074/59.05 Noose River Ferry Services

Attachments      1.    Tender Evaluation Summary
                 2.    Probity Advisor Report


EXECUTIVE SUMMARY
Following Council’s resolution at its March Ordinary Meeting, tenders were invited from suitably
experienced businesses to supply and operate the Noosa North Shore ferry service from 1 July
2024. Respondents were invited to submit tenders via VendorPanel on 31 May 2022, with
submissions closing on 31 August 2022. The tender process provided for market-led
submissions on options to deliver optimal service standards, across a range of timelines.
A total of 5 tenders were received from 3 businesses and were of a high standard and
demonstrated high levels of professionalism and capability across all respondents. An
evaluation panel of staff and external experts was assembled with the required skill sets to
assess the tender submissions against Council’s adopted tender criteria. Council engaged
Preston Law as independent probity advisors to support and monitor the process.
The assessment panel found Divers Den Investments’ alternate tender to pose the most
significant benefits by way of a streamlined operation utilising new larger vessels, contemporary
payment systems and the group’s experience in marine operations and transport service
delivery. The report recommends Council enters into a new agreement for the provision of the
Noosa North Shore ferry service with Divers Den Investments Pty Ltd from 1 July 2024.

RECOMMENDATION
That Council note the report by the Property Advisor to the Services and Organisation
Committee Meeting dated 11 October 2022 regarding the Noosa North Shore ferry service
Tender and:
A.   Award the contract T000074 for the provision of the Noosa North Shore ferry service to
     Divers Den Investments Pty Ltd commencing from 1 July 2024 for a term of 20 years for
     a commencing annual fixed fee of $2,485,368+GST and a revenue share component of
     5% above the annual fixed fee (being the tender described as Tender 2 in the report);
B.   Authorise the CEO to finalise and execute the agreement with Divers Den Investments
     Pty Ltd on Council’s behalf;
C.   Authorise the CEO to award 1 x 5 year extension to Divers Den Investments Pty Ltd
     subject to satisfactory performance and at Council’s sole discretion; and
D.   Request the CEO undertake a review of the ferry crossing fees for future financial years
     to ensure appropriate pricing for customer types and the service continues to avoid the
     need for ratepayer subsidisation.




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