2017-09-12 Services & Organisation Committee Agenda

SERVICES & ORGANISATION COMMITTEE MEETING AGENDA                           12 SEPTEMBER 2017


Five conforming tenders were evaluated for Portion B of the contract; Allen’s Asphalt Pty Ltd,
Allroad Surfaces, Downer EDI Works Pty Ltd, RPQ North Coast Pty Ltd and Tropic Asphalt Pty
Ltd. All five contractors have been deemed highly capable in delivery of Portion B under the
contract. Under the terms of this contract, it is recommended that Council exercise its right to
award separable portions to multiple contractors, while not guaranteeing any quantities.

There are two main advantages to awarding Portion B to all five conforming tenderers:

1)    Contractor Capacity and Availability – Provides Council with greater flexibility to engage
      one or more contractors, including simultaneously, to respond to Council requirements in a
      timely manner.

2)    Diverse Supplier Base – Given the low risk nature of Mill and Fill services, having multiple
      supplier options will provide the Council with the opportunity to increase supplier exposure
      to this type of work including for suppliers who may not have had the opportunity to work
      for Council previously.

Allen’s Asphalt, Allroad Surfaces Pty Ltd, Downer EDI Works Pty Ltd RPQ North Coast Pty Ltd
and Tropic Asphalt are all recommended as the preferred contractors for Portion B.

5.    Portion C – Spray Sealing

Portion C is for spray sealing of rural roads. Spray sealing utilises different plant and equipment
than asphalt paving. Five conforming tenders were evaluated for Portion C of the contract; Allen’s
Asphalt Pty Ltd, Allroad Surfaces, Downer EDI Works Pty Ltd, RPQ North Coast Pty Ltd Pty Ltd
and Tropic Asphalt Pty Ltd.

RPQ North Coast Pty Ltd demonstrated as the most advantageous tender to Council during the
evaluation process, with Allen’s Asphalt Pty Ltd scoring second highest. Noosa Council have
used RPQ North Coast Pty Ltd to perform this portion of the contract in the past and have
performed well.

RPQ North Coast Pty Ltd also offer the option to use ‘Tonerseal’ which exceeds 20% recycled
content of the spray binder. This binder is offered to Council at a 23% more expensive rate than
the standard binder (refer Finance & Risk).

RPQ North Coast Pty Ltd is the recommended preferred contractor for Portion C.

6.    Programme

Once the contract is awarded, a programme will be scheduled and works will commence as soon
as practical. In the interim all preparatory works including some of the pavement repairs have
been completed or programmed to allow coordination with limited delays.

Previous Council Consideration

Nil

Finance & Risk

The current adopted budget for the Road Resurfacing and Rehabilitation programme is $4.0m.
The tendered price has increased from the 2016-17 year by 15%. Based on last year’s prices the
program scheduled for this year would have allowed Council to treat 15.6km of road in 2017-18,
20.3 km of road in 2018-19 and 38.1 km of road in 2019-20. As a result of the increased costs
(including the potential use of RAP and ‘Tonerseal’), the program will be monitored to track
progress with alternative delivery methods, treatments and possible budget review.

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