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AGENDA - ORDINARY MEETING OF COUNCIL - 26 MAY 2015
8.7
DRAINAGE MAINTENANCE SERVICES
CONTRACT
LOCATION/ADDRESS:
WHOLE OF MUNICIPALITY
GENERAL MANAGER:
FIONA BLAIR, INFRASTRUCTURE &
AMENITY
PREPARED BY:
JAMES LENIHAN, DRAINAGE MAINTENANCE
ENGINEER
TRIM FILE NO:
14/06/1912
ATTACHMENTS:
Nil
PURPOSE
To seek Council’s approval to award the Drainage Maintenance Services contract for a three year period
from 01 July 2015 to 30 June 2018 (with an option for a further term of two years) to Veolia Water
Network Services.
1.
RECOMMENDATION
That Council:
2.
1.1
Notes that following a competitive tender process, Veolia Water Network Services
has provided the best value tender submission for the Drainage Maintenance Services
contract
1.2
Awards Veolia Water Network Services the Drainage Maintenance Services contract
No 1912 to provide services to Council for a three year period commencing on 1 July
2015 and concluding on 30 June 2018, with an option to extend for a further term of
two years subject to the agreement of both parties.
1.3
Notes the contract sum is approximately $877,750 per year exclusive of GST for the
three year period together with the option to extend for a further two years ( total
contract value approximately $4,615,000 excluding GST).
1.4
Affixes the Common Seal of the Port Phillip City Council to Contract No. 1912
between Council and Veolia Water Network Services.
BACKGROUND
2.1
The tender for drainage maintenance services was advertised in The Age on 21
February 2015. Tender documents were available to download from the Tenderlink
site and responses had to be submitted by Friday 13 March 2015 at 12:00pm.
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2.2
The City of Port Phillip has many unique drainage challenges. These include:
•
End of catchment Melbourne Water drains which hold water almost all of the time
and are often not readily available for effective storm water drainage.
•
Council drains which discharge to Port Philip Bay and the Elwood Canal and are
subject to inundation from catchments outside the municipality, storm surges, high
tides and blockages from gross pollutants and sand.
•
Council drains which discharge to the Yarra River outside of our jurisdiction.
•
Streets which are difficult to access for drainage maintenance due to parked vehicles.
•
Large areas of topography which are very close to sea-level so that drains are highly
susceptible to tidal inundation and drainage is less than recommend grades.
•
Climate change which predicts our existing outlets will become submerged and
storm events will become more common.
2.3
Drainage contract services are currently provided by Eldarin, Reservoir Maintenance
Contractors (RMC), Veolia and Bell Environmental. Drainage maintenance was
previously provided as part of the Streets Ahead contract.
2.4
As part of the development of the tender specifications a review of drainage cleaning
and maintenance requirements was undertaken to ensure that the city’s drainage
assets are maintained to an acceptable standard.
2.5
The new service specifications focus on:
2.6
•
Side Entry Pit (SEP) and Grated Pit (GP) inspection and cleaning
•
Increased maintenance in known flooding areas
•
Gross Pollutant Trap (GPT) inspection and cleaning
•
Litter basket inspection and cleaning
•
Junction pit, pipe and culvert cleaning
•
CCTV inspections
•
Depot wash bay & Transfer Station sump pit cleaning
•
Reporting, inspections and asset management
•
Standardised asset grading according to the industry standard Water Services
Association of Australia (WSAA) 05 “Conduit Inspection Reporting Code of
Australia.
The new contract will also support improved data collection and reporting. will:
•
Ensure we report on asset condition to industry standards
•
Allow recording of servicing details in the asset management database
•
Improve access to information to ensure that drains which require more frequent
maintenance are appropriate scheduled.
•
Update spatial data in our Geographic Information System (GIS)
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3.
•
Provide information to prioritise locations for civil upgrades or renewal
•
Provide accurate drainage and flooding information.
KEY INFORMATION
3.1
The composition of the Tender Evaluation Panel (TEP) is set out in Table 1 below.
TABLE 1 – COMPOSITION OF TEP
Name
Title
Darren Brownscombe (Manager – Maintenance & Renewal) Chairperson
Peter Jumeau (Coordinator – Infrastructure)
Member
James Lenihan (Drainage Maintenance Engineer)
Member
Kate Cornwall (Contracts Advisor)
Member
All TEP members signed the standard form indicating they had no conflict of interest to
declare and that they would keep the tender information confidential.
The evaluation criteria and weightings have been designed to ensure best value services are
provided by the successful tenderer and are detailed in Table 2 below.
TABLE 2 – TENDER EVALUATION CRITERIA
Criteria
Percentage
Weighting
Price
50
Capacity to meet the requirements of the specification
25
Relevant experience and track record
10
Environmental Management
5
OH & S System
5
Asset Management System & Reporting
5
3.2
Tenders Received and Evaluation
Details of the prices received for the first twelve months of the contract are shown in
Table 3 below. This period represents fixed costs which will then be subject to annual rise
and fall adjustments in accordance with the contract conditions for the remaining contract
period.
TABLE 3 – TENDERS RECEIVED
No.
Tenderer’s Name
$ Price (Excluding GST) – Cumulative
Lump Sum and Day Work Rates for
the first twelve months
1.
Tenderer A
$931,000
2.
Tenderer B
$1,199,913.64
3.
Tenderer C
Not supplied
4.
Tenderer D
$720,030
5.
Tenderer E
$1,102,100.28
6.
Veolia Water Network Services
$877,750
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Tenderer C was a non-conforming tender as an incomplete pricing schedule was provided.
Lump sum totals had been omitted from the tenderer response and as such there was
insufficient information to evaluate the tender.
All other tenders were prepared in conformance with the specifications and contract
conditions (apart from minor negotiable changes) and were referred to the TEP for review
and evaluation. After a detailed preliminary evaluation of five tenderers the TEP shortlisted
three for interviewing. Following the interviews two tenderers were e-mailed questions to
further clarify their capacity to meet requirements of the specification and how they would
manage asset management system & reporting.
After all evaluation was complete the following total weighted scores were determined by
the TEP against the evaluation criteria as detailed in Table 4.
TABLE 4 – WEIGHTED SCORES
No.
Tenderer’s Name
Score (Out of 1,000)
1.
Tenderer A
750.45
2.
Tenderer B
607.53
3.
Tenderer C
N/A
4.
Tenderer D
795.00
5.
Tenderer E
702.91
6.
Veolia Water Network Services
828.91
The final weighted scores which take into account all of the evaluation criteria have been
used to determine the recommended contractor that Council should engage for the
delivery of its Drainage Maintenance Services over the next five years. The following
factors have been taken into account in scoring the tenderers against the agreed criteria.
Price
Tenderer D has been assigned the maximum possible score as it has submitted the lowest
aggregated priced tender. Tenderers have been assigned a score for price derived from the
ratio of lowest bid compared to each tender.
Capacity
Veolia Water Network Services are an international company who has invested significantly
in the local market in order to demonstrate their capability as a leading and innovative
organisation.
They provide a full suite of services which are not available in other companies. This
includes the provision of civil works options for drainage renewal such as their own
patented dry suction for excavation of drains when working near critical services.
Veolia Water Network Services have an established depot in Dandenong which is already
equipped to manage all requirements of the contract including daily maintenance, customer
response and asset management and reporting. During the 2011 floods in Queensland and
earthquake in Christchurch, New Zealand they demonstrated a capability for rapid
redeployment of resources.
Relevant Experience
Veolia Water Network Services rating is underpinned by the following factors:
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•
•
•
Demonstrated performance and reliability within the Victorian local government
sector. They have current or completed contracts with Moreland City Council,
Manningham City Council, Shire of Yarra Ranges, Yarra Valley Water and City
West Water.
Proven track record in maintenance services to inner city municipalities and water
authorities.
Specialist expertise in the delivery of complete drainage solutions through to
renewal of drainage pipes.
Environmental Management and OH&S System
Veolia Water Network Services have invested in drain cleaning plant which uses less water
with increased efficiency. Their combo trucks have the capability to recycle water which
results in further emission reductions and increased efficiency.
Veolia Water Network Services have QMS accreditation in all management systems
including Environmental Management and OH&S. They promote the active participation of
employees through the practice of a Work, Health, Safety, Environment and Quality
(WHSEQ) policy. Each month a company wide summary is distributed on near-miss
incidents, employee injuries and number of injury free days. Their objectives and targets
aligned with the company’s global environmental commitments are:
• zero environmental incidents
• reporting of ≥20 near miss / hazards per division per year
• minimize environmental risks
• conduct ≥1 site inspection / audit by management per week
• establish a culture that rates environmental awareness as worthwhile
Asset Management System & Reporting
During the interview and in their answers to the follow-up questions Veolia Water
Network Services explained how they could meet the City of Port Phillip Business
Technology requirements for both download and upload of asset and reporting information
in the required formats.
They are committed to total asset management and have demonstrated experience in
tailoring solutions from large operations like the Western Corridor Recycled Water
Scheme in Queensland through to much smaller operations such as a wastewater treatment
plant in New Zealand.
Veolia Water Network Services use InfoNetTM as a purpose-built underground asset
management tool. Subject to client requirements it has the capability for complete
paperless work order management from field data collection through to reporting. This
system is currently being used in their Yarra Valley Water contract.
Some of the key benefits of InfoNetTM:
• Import asset data from other data management systems,
• View a geographical representation of the assets on screen, with the network
displayed over the top of a detailed local map,
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•
•
•
•
Manage and maintain network asset data over a long time period,
Share network asset data with other users with audit trails and security
mechanisms designed with the asset management task,
Generate up to date reports of the network asset status.
Reports can be produced as soon as field data has been collected.
Financial Evaluation
A standard financial evaluation (VEDA Report) was prepared by Council’s Financial
Compliance Accountant which highlighted there are no adverse events recorded. They
noted the capacity of the recommended tenderer to provide the service in accordance with
Council’s requirements.
Reference Checks
Referee checks were completed with all references recommending Veolia Water Network
Services for the provision of Drainage Maintenance Services.
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FURTHER SUPPORTING INFORMATION
4.
ALIGNMENT TO COUNCIL PLAN AND COUNCIL POLICY
4.1
4.2
5.
6.
7.
The drainage maintenance service supports and enables Council to deliver the
following strategies in the Council Plan 29013-17:
4.1.1
Ensure our city is a welcoming and safe place for all people – 2.1
4.1.2
Improve and manage local amenity and assets for now and the future – 4.3.
Drainage maintenance has a significant impact on the community. It is in the public
interest for us to maintain our drainage in a way that is aesthetically pleasing as well as
resolving nuisance flooding that impact on community amenity.
CONSULTATION AND STAKEHOLDERS
5.1
The specification for the drainage tender was submitted for peer review by staff in
Infrastructure Maintenance, Asset Management and Sustainability.
5.2
In the preparation for the commencement of the contract staff have been consulted in
Asset Management and Business Technology. This has included confirming the
formats required for asset download, reporting upload and providing map files from
our GIS.
LEGAL AND RISK IMPLICATIONS
6.1
An effective drainage maintenance service is required to enable Council to meet its
statutory obligations. Veolia Water Network Services is well resourced with
experienced personnel and this will ensure that Council avoids risk leading to financial
loss or a situation resulting in a negative impact on Council’s reputation.
6.2
Veolia Water Network Services are certified to AS/NZS ISO 4801:2001 OH&S
Management Systems. They have provided Safe Work Method Statements (SWMS)
for drain cleaning and CCTV surveying.
6.3
Veolia Water Network Services complies with the insurance requirements having
$5,000,000 Professional Indemnity and $20,000,000 Public & Products Liability.
SUSTAINABILITY – Triple Bottom Line
7.1
ENVIRONMENTAL IMPLICATIONS
7.1.1
Veolia Water Network Services are certified to AS/NZS ISO 4001:2004 for
Environmental Management Systems.
7.1.2
Drain cleaning can be a water intensive process. Veolia Water Network
Services have invested in plant resources which reduce emissions, water use
and, in some cases, can recycle water on the job.
7.1.3
Veolia Water Network Services are a global environmental services company.
In 2010 a report was published highlighting how Veolia are now positioned as
making a business out of improving the environment rather than being an
environment related business. They have developed a Water Impact Index to
promote the idea of measuring water sustainability, and repackaged their
wastewater technologies as wastewater refineries to promote the idea of
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wastewater as a resource In Victoria Veolia have commissioned an organic
green waste facility through a 15 year agreement with the Metropolitan Waste
Management Group.
7.2
SOCIAL & CULTURAL IMPLICATIONS
7.2.1
7.3
7.4
ECONOMIC IMPLICATIONS
7.3.1
There will be no negative economic implications in the conduct of this
contract.
7.3.2
Economic improvements will be the reduction of flooding frequency or
severity which impact the use of roads or access to businesses.
FINANCIAL IMPLICATIONS
7.4.1
8.
The project cost of this tender falls within the current budget.
IMPLEMENTATION STRATEGY
8.1
8.2
9.
Not applicable.
TIMELINE
8.1.1
Contract documents will be executed in June and the contract will commence
on 01 July 2015.
8.1.2
A transition plan is in place to implement the new contract.
COMMUNICATION
8.2.1
Contract documentation shall be prepared and forwarded to the contractor
for execution.
8.2.2
The Contracts and Procurement unit shall notify all unsuccessful tenderers.
The Contract Manager shall invite all unsuccessful tenderers for a debrief.
OFFICER DIRECT OR INDIRECT INTEREST
9.1
No officers involved in the preparation of this report have any direct or indirect
interest in the matter.
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