Ordinary Council Meeting - 16 August 2018
LATE AGENDA Page
11 Assistant General Manager Engineering Services Report
12 General Manager's Summary of Items to be Discussed in Closed Meeting
12.2 Confidential - Quotation T025/2018 - Local Government Procurement for 2018/2019 Road Rehabilitation Program
It is recommended that the Council resolve into closed session with the press and public excluded to allow consideration of this item, as provided for under Section 10A(2) (d) of the Local Government Act, 1993, on the grounds that the report contains commercial information of a confidential nature that would, if disclosed (i) prejudice the commercial position of the person who supplied it; or (ii) confer a commercial advantage on a competitor of the Council; or (iii) reveal a trade secret.
AUTHOR/ENQUIRIES: Paul Gallagher, Assistant General Manager - Engineering Services; Matthew Leibrandt, Manager Infrastructure Services
In accordance with Council’s tendering and procurement procedures, the General Manager gave approval to proceed to quotation using Local Government Procurement (LGP) under delegated authority.
Local Government Procurement (LGP) is a business arm of Local Government NSW (LGNSW), the membership association for all councils in NSW. Established in 2006, LGP focuses on creating procurement efficiencies and building procurement expertise, saving councils significantly in time and dollars.
Local Government Procurement (LGP) has been prescribed under s55 of the Local Government Act 1993 (NSW), allowing councils to utilise supply arrangements coordinated by LGP without the need to go to tender in their own right. LGP therefore has the same status as NSW Procurement in having this legislative requirement for the Local Government (General) Regulation 2005 (NSW) - Part 7 Tendering
An invitation to submit a pricing schedule for pavement rehabilitation roadwork’s and insitu stabilisation across various locations within the Shire was called through a prescribed tenderer being “Local Government Procurement” in accordance with the LGP 213 bitumen, emulsions and asphalt materials and services
The quotations closed on Thursday 9 August 2018. Quotations submissions were received from the following companies:
· Accurate Asphalt (Non Conforming)
· Downer EDI (Non Conforming)
NOTE: As per Clause 31 of Council's Code of Meeting Practice a division is required for all tenders considered at Council meetings, which requires the General Manager to record the names of each Councillor supporting and opposing the decision.
1 That Council accept the quotation submitted by Stabilcorp for T025/2018 for the 2018/19 Road Rehabilitation Program.
2 That a provision be allowed for a 12 month extension to quotation T025/2018 based on satisfactory supplier performance, which may take this contract through to 30 August 2020.
3 That Council receive and note the information contained within the confidential report.
4 That Council update the Contract Register.
For the motion: Councillors
Against the motion: Councillors
1 Accept the recommendation.
2 Not accept the recommendation
Local Government Procurement (LGP) has been ‘prescribed’ by the NSW State Parliament to carry out group tenders on behalf of NSW local government. ‘Prescribed’ means LGP is named in the Local Government (General) Regulation 2005 (NSW) and as such a council does not need to go to tender if that council buys from a contract already set up by LGP. Councils can therefore procure goods or services from LGP contracts for values greater than $150,000 (inclusive of GST), without the need to tender themselves.
Section 55 (3) of the Local Government Act 1993 (NSW) provides a number of exemptions from the need for councils to call for tenders for goods and services. One of the exemptions includes if the council purchases from contracts put out by LGP or NSW Procurement.
In short, this means that councils are able to buy - if they so choose - from LGP contracts in the same way councils can buy off NSW Procurement contracts without any further need to go to tender. This saves up to three months of the tender process allowing quotations to be called within a month timeframe.
Therefore Council called for quotations from suitably qualified contractors under LGP. The Works involve a full service stabilisation for approximately 40,000m2 located across a number of locations within the Nambucca Shire area. Approximately half of the works are located in rural locations and the other half within urban locations. A detailed schedule of works was provided under the following specifications which form part of the contract:
· Australian Standards AS 1742.3
· RMS Traffic Control at Worksites Manual
· RMS Specifications (including but not limited to the below)
· R75 – Insitu Pavement Stabilisation
· R106 – Sprayed Bituminous Surfacing (Cutback Bitumen)
· R107– Sprayed Bituminous Surfacing (Polymer Modified Bitumen)
· R116 – Heavy Duty Dense Grade Asphalt
As a preapproved suppler with LGP, the contractors have demonstrated their Quality Assurance (QA), Work Health and Safety (WHS), Insurances and ability to perform the work. The assessment of the quotations was primarily based on the contractor’s price and their ability to deliver the works program within the timeframe required by Council.
The works are within the budget allocations and a further report will be presented to Council through the capital works report on the progress and expenditure. There is always a potential for variations where the geotechnical investigation may have missed substandard pavement- however at this point in time it is anticipated that there will be savings across the allocations which can be potentially used to continue with other works identified within the asset register.
Local Government Procurement
There are no environmental issues as a result of this report, the road works program is limited within the road revere predominantly over existing pavement and a REF is undertaken should the area of works be considered in an environmental sensitive area.
The road rehabilitation program improves visual impact and road safety. There are potential social impacts emanating from a motor vehicle accidents from substandard pavement.
There are economic implications with this report with potential savings on the tendered rates allowing the opportunity to perform more work.
There is a risk to Council if road rehabilitation is not undertaken to remove potential safety hazards to vehicles emanating from aging pavement surface or defects.
Direct and indirect impact on current and future budgets
Funds are included in the 2018/2019 capital works program and the value of works is over $1M.
Source of fund and any variance to working funds
There is a potential for savings within the program with funds being able to be used to extend works
Service level changes and resourcing/staff implications
There are no implications to service levels, the projects will be managed in house under current staff resourcing provisions