8.7 DRAINAGE MAINTENANCE SERVICES CONTRACT AMENITY JAMES LENIHAN, DRAINAGE MAINTENANCE ENGINEER

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1 8.7 DRAINAGE MAINTENANCE SERVICES CONTRACT LOCATION/ADDRESS: GENERAL MANAGER: PREPARED BY: TRIM FILE NO: 14/06/1912 ATTACHMENTS: WHOLE OF MUNICIPALITY FIONA BLAIR, INFRASTRUCTURE & AMENITY JAMES LENIHAN, DRAINAGE MAINTENANCE ENGINEER 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: 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 between Council and Veolia Water Network Services. 2. BACKGROUND 2.1 The tender for drainage maintenance services was advertised in The Age on 21 February Tender documents were available to download from the Tenderlink site and responses had to be submitted by Friday 13 March 2015 at 12:00pm. 115

2 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: 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. 2.6 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) 116

3 Provide information to prioritise locations for civil upgrades or renewal Provide accurate drainage and flooding information. 3. 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 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, Tenderer B $1,199, Tenderer C Not supplied 4. Tenderer D $720, Tenderer E $1,102, Veolia Water Network Services $877,

4 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 ed 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 Tenderer B Tenderer C N/A 4. Tenderer D Tenderer E Veolia Water Network Services 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: 118

5 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 InfoNet TM 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 InfoNet TM : 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, 119

6 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. 120

7 FURTHER SUPPORTING INFORMATION ALIGNMENT TO COUNCIL PLAN AND COUNCIL POLICY 4.1 The drainage maintenance service supports and enables Council to deliver the following strategies in the Council Plan : Ensure our city is a welcoming and safe place for all people Improve and manage local amenity and assets for now and the future 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 Veolia Water Network Services are certified to AS/NZS ISO 4001:2004 for Environmental Management Systems 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 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 121

8 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 Not applicable. 7.3 ECONOMIC IMPLICATIONS There will be no negative economic implications in the conduct of this contract Economic improvements will be the reduction of flooding frequency or severity which impact the use of roads or access to businesses. 7.4 FINANCIAL IMPLICATIONS The project cost of this tender falls within the current budget IMPLEMENTATION STRATEGY 8.1 TIMELINE Contract documents will be executed in June and the contract will commence on 01 July A transition plan is in place to implement the new contract. 8.2 COMMUNICATION Contract documentation shall be prepared and forwarded to the contractor for execution 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. 122