Late Items Agenda of Elected Members' Briefing Session

Late Items Agenda

L.1 Tender No 16171 - Supply and Application of Herbicides and Organic Control Products to Weeds in Hardstands, Kerblines and Mulched Areas

File Ref: 27684 – 16/358301

Responsible Officer: Director Assets

Disclosure of Interest: Nil

Attachments: Nil

Issue

To consider Tender No. 16171 for the Supply and Application of Herbicides and Organic Control Products to Weeds in Hardstands, Kerblines and Mulched Areas.

Background

Weed spraying application services on all of the City’s hardstands, kerblines and mulched areas have previously been provided by external contractors engaged through a quotation process. Due to the expected increase in the value of the required service into the future it is now prudent to move to a public tender process to ensure that the City is compliant with the Local Government Act 1995 and Regulations.

Detail

Tender No. 16171 for the Supply and Application of Herbicides and Organic Control Products to Weeds in Hardstands, Kerblines and Mulched Areas was advertised on 17 September 2016 and closed on 4 October 2016. A copy of the tender document is available in the Elected Members Reading Room for perusal.

The Tender allows for the provision of both chemical and non-chemical weed control methods to provide the option to use the most appropriate control method in specific environments.

Essential details of the proposed contract are outlined below:

Contract Type	Schedule of rates
Contract Duration	24 months
Commencement Date	1 December 2016
Expiry Date	31 November 2018
Extension Permitted	Yes, 2 x 12 month options

Tender submissions were received from the following contractors:

· MCL Commercial Services.

· Turfmaster Pty Ltd.

· Environmental Industries Pty Ltd.

· Natural Area Holdings Pty Ltd.

· Skyline Landscape Services.

The Tender Evaluation Team, comprising of the City’s Coordinator Parks Maintenance North, Coordinator Parks Maintenance South and Principal Technical Advisor, along with oversight and guidance from the Contracts Officer, has evaluated the tender submissions in accordance with the following selection criteria:

Selection Criteria	Weighting
Price for the services offered	20%
Demonstrated previous experience	20%
Demonstrated methodology and approach	20%
Plant and equipment	20%
Demonstrated compliance with OH&S requirements (safety management)	20%

Price for the services offered (20%)

This criterion was based on the estimated cost to the City over the term of the contract based on rates submitted by the tenderers in the price schedule and has resulted in the tenderers being ranked as follows:

Tenderer	Rank
Natural Area Holdings Pty Ltd	1
Skyline Landscape Services	2
Environmental Industries Pty Ltd	3
MCL Commercial Services	4
Turfmaster Pty Ltd	5

Demonstrated relevant experience in similar works with achievement of client expectations (20%)

The evaluation of this criterion considered the tenderers' experience in supplying services of a similar nature and circumstances.

Environmental Industries Pty Ltd and Turfmaster Pty Ltd demonstrated extensive experience in the application of herbicides within hardstand and kerbline areas. Environmental Industries Pty Ltd provided details of relevant contracts and clients including the City and developers in Holland Park and Seville Grove. Turfmaster Pty Ltd provided details of relevant contracts including the Cities of Wanneroo, Stirling and Vincent.

Skyline Landscape Services demonstrated more than adequate experience associated with weed control in hardstand areas. Skyline Landscape Services gave examples of works performed for the Cities of Cockburn, Nedlands and Wanneroo.

MCL Commercial Services and Natural Area Holdings Pty Ltd provided details of weed management experience; however the experience was not related to the required scope within Tender No 16171.

The information provided has resulted in tenderers being ranked as follows under this evaluation criterion:

Tenderer	Rank
Environmental Industries Pty Ltd	1
Turfmaster Pty Ltd	1
Skyline Landscape Services	3
MCL Commercial Services	4
Natural Area Holdings Pty Ltd	4

Demonstrated methodology and approach to undertake the services (20%)

The evaluation of this criterion considered the tenderers’ staff, resources and methodology to deliver the services required by the City.

Skyline Landscape Services demonstrated having significant modern resources, a well-documented methodology and provided detailed staff information.

MCL Commercial Services and Environmental Industries Pty Ltd provided more than adequate information on their methodology and provided detailed information on staff.

Natural Area Holdings Pty Ltd and Turfmaster Pty Ltd provided a basic methodology and adequate information on staff.

The information provided has resulted in the tenderers being ranked as follows under this criterion:

Tenderer	Rank
Skyline Landscape Services	1
MCL Commercial Services	2
Environmental Industries Pty Ltd	2
Natural Area Holdings Pty Ltd	4
Turfmaster Pty Ltd	4

Demonstrated compliance with OH&S requirements (safety management) (20%)

The evaluation of safety management was based on the tenderers’ submitted Occupational Health and Safety (OHS) policy documentation, working documentation, and responses to the OHS Management System Questionnaire. Evidence of completed examples of incident reports, near misses and hazard inspections were asked to be provided.

Natural Area Holdings Pty Ltd provided a detailed submission, comprising comprehensive policies, procedural documentation and demonstrated use of working documentation including risk assessments, incident reports, hazard reports, induction checklists, training records and toolbox records.

Environmental Industries Pty Ltd provided a detailed submission on safety management; however the copy of an expired business pesticide licence was provided. Environmental Industries has since provided a copy of a current business pesticide licence.

Skyline Landscape Services and Turfmaster Pty Ltd provided a more than adequate submission on safety however no examples of completed documents were submitted as requested.

MCL Commercial Services provided limited information on safety; although having completed the questionnaire, it did not provide copies of management systems or actual documents as requested.

The information provided has resulted in the tenderers being ranked as follows under this criterion:

Tenderer	Rank
Natural Area Holdings Pty Ltd	1
Environmental Industries Pty Ltd	2
Skyline Landscape Services	3
Turfmaster Pty Ltd	3
MCL Commercial Services	5

Plant and Equipment (20%)

The evaluation of this criterion considered the tenderers submitted list of plant and equipment to be used in the services to be provided.

Environmental Industries Pty Ltd propose to use purpose built equipment fitted with GPS tracking systems and provided a detailed methodology on the use of the equipment.

Skyline Landscape Services provided adequate information on the equipment to be used in this contract with information on types of equipment and photos supplied.

Natural Area Holdings Pty Ltd and Turfmaster Pty Ltd provided information on the type of equipment to be used, with Natural Area Holdings Pty Ltd only including the use of utility vehicles and no other alternatives and Turfmaster Pty Ltd providing a list of equipment that will only be available dependent on other commitments.

MCL Commercial Services provided very basic information on the spraying equipment to be used.

The information provided has resulted in the tenderers being ranked as follows under this criterion:

Tenderer	Rank
Environmental Industries Pty Ltd	1
Skyline Landscape Services	2
Natural Area Holdings Pty Ltd	3
Turfmaster Pty Ltd	3
MCL Commercial Services	5

Overall weighted score

The tenderers’ submissions were reviewed in accordance with the selection criteria and the overall weighted score has resulted in the following tender ranking:

Tenderer	Rank
Environmental Industries Pty Ltd	1
Skyline Landscape Services	2
Turfmaster Pty Ltd	3
MCL Commercial Services	4
Natural Area Holdings Pty Ltd	5

Environmental Industries Pty Ltd was assessed as having the necessary experience, resources, operational capacity and safety management systems to fulfil the requirements of the contract.

The key characteristics of Environmental Industries Pty Ltd’s tender are:

· Relevant experience with similar herbicide spraying operations including being a current service provider with the City of Wanneroo; and

· A sound methodology and modern equipment to enable the services to be rendered successfully.

Consultation

Nil

Comment

The evaluation undertaken by the Tender Evaluation Panel resulted in the tender submission from Environmental Industries Pty Ltd achieving the highest score in accordance with the selection criteria and weighting and therefore Environmental Industries Pty Ltd is the recommended tenderer.

Environmental Industries Pty Ltd is currently performing hardstand and kerbline weed control services to the City under a quotation process. This service has been provided since
9 February 2016 with no non-compliance issues being recorded during this period.

Statutory Compliance

Tenders were invited in accordance with the requirements of Section 3.57 of the Local Government Act 1995. The tendering procedures and evaluation complied with the requirements of Part 4 of the Local Government (Functions and General) Regulations 1996.

Strategic Implications

The proposal aligns with the following objective within the Strategic Community Plan 2013 – 2023:

“2 Society - Healthy, safe, vibrant and active communities.

2.1 Great Places and Quality Lifestyle - People from different cultures find Wanneroo an exciting place to live with quality facilities and services.”

Enterprise Risk

There are no Strategic or Corporate risks within the City’s existing risk registers that relate to the issues contained in this report.

Social and Environmental (Sustainable Procurement) Considerations

Notwithstanding the considerations for the sustainable procurement in accordance with section15 of the City’s Purchasing Policy, the evaluation of this tender did not set out a specific criteria to assess sustainability. The Tender document included these considerations as non-weighted criteria.

Broader Economic Impact for the City of Wanneroo

The contractor was unable to identify any economic impact to the City in delivering these works. The Tender document included these considerations as non-weighted criteria.

Risk Management Considerations

Performance Risk

The condition of the City’s hardstands, kerblines and mulched areas can deteriorate quickly if not maintained to an acceptable level. The inability of a contractor to supply these services will result in the degradation of the City’s assets and the City not providing the required standard of service to its residents. It is important that the successful tenderer has the required experience in the use of chemicals, and the staff, equipment, safety systems and operational capacity to meet the contract requirements. Based on the information provided, Environmental Industries is assessed to have sufficient resources to identify and mitigate risks associated with the provision of services under this contract.

Financial Risk

A financial risk assessment was not undertaken as part of this tender evaluation process, as an assessment was undertaken by Corporate Scorecard on Environmental Industries in June 2016 as part of the Yanchep Open Space Oval Development project. The financial check assessment indicated a pass score for Environmental Industries.

Policy Implications

Tenders were invited in accordance with the requirements of the City’s Purchasing Policy. The City’s Weed Management Policy is currently being reviewed and updated to reflect current best practice in the pesticide management. The specification in this tender will comply with the intended updated policy that will be presented to Council in early 2017.

Financial Implications

The costs associated with the supply and application of herbicides and organic control products to weeds in hardstands, kerblines and mulched areas is estimated to be in the order of $150,000 per annum and is included in the annual Parks Maintenance Operational Budget.

Voting Requirements

Simple Majority

Recommendation

That Council ACCEPTS the tender submitted by Environmental Industries Pty Ltd for Tender No. 16171 for the Supply and Application of Herbicides and Organic Control Products to Weeds in Hardstands, Kerblines and Mulched Areas as per the schedule of rates and in accordance with the conditions of tendering, noting that the commencement date of the contract is 1 December 2016 and expiry date of the contract is 30 November 2018, with options to extend the contract for two 12 month periods, at the City’s discretion, subject to:

(a) satisfactory performance; and

(b) price adjustment of the second year rates based on the Perth Consumer Price Index.

Attachments: Nil