TENDER EVALUATION REPORT: YOUTH SERVICES
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1 COUNCIL REPORT TENDER EVALUATION REPORT: YOUTH SERVICES Agenda Item April 2009 Committee Finance and Governance Presenter Cr Shanahan Purpose 1. The purpose of this report is to seek approval to award contracts for the delivery of the City, Kensington/North Melbourne Neighbourhood and Carlton/Parkville Neighbourhood Youth Services. Consideration at Committee 2. As a result of consideration at Committee, the following part of the recommendation, endorsed by the Finance and Governance Committee, was dealt with under delegation: 2.1. request the tender analysis schedule assessment against the criteria be provided to Councillors prior to the Council meeting. 3. The remaining part of the recommendation below is presented to Council for approval. Recommendation 4. That Council award the contract for: 4.1. City Youth Service to Melbourne Citymission for a term of three years for a contract sum of $1,350,565 with a one year option to extend and otherwise in accordance with the negotiated terms and conditions of contract; 4.2. Kensington/North Melbourne Youth Service to Doutta Galla Community Health Service for a term of three years for a contract sum of $1,104,935 with a one year option to extend and otherwise in accordance with the negotiated terms and conditions of contract; and 4.3. Carlton/Parkville Neighbourhood Youth Service to Drummond Street Relationship Centre for a term of three years for a contract sum of $603,398 with a one year option to extend and otherwise in accordance with the negotiated terms and conditions of contract. Council Report Attachment: 1. Finance and Governance Committee, Agenda Item 5.5, 14 April 2009
2 Page 1 of 9 FINANCE AND GOVERNANCE COMMITTEE REPORT TENDER EVALUATION REPORT: YOUTH SERVICES Agenda Item April 2009 Division Community and Culture Presenter Linda Weatherson, Director Community and Culture Purpose 1. To seek Council approval to award contracts for the delivery of the City, Kensington/ North Melbourne Neighbourhood and Carlton/Parkville Neighbourhood Youth Services. Recommendation from Management 2. That the Finance and Governance Committee recommend that Council award the contract for: 2.1. City Youth Service to Melbourne Citymission for a term of three years for a contract sum of $1,350,565 with a one year option to extend and otherwise in accordance with the negotiated terms and conditions of contract; 2.2. Kensington/North Melbourne Youth Service to Doutta Galla Community Health Service for a term of three years for a contract sum of $1,104,935 with a one year option to extend and otherwise in accordance with the negotiated terms and conditions of contract; and 2.3. Carlton/Parkville Neighbourhood Youth Service to Drummond Street Relationship Centre for a term of three years for a contract sum of $603,398 with a one year option to extend and otherwise in accordance with the negotiated terms and conditions of contract. Background 3. For over five years, the delivery of youth services across the municipality has been provided under the terms of three agreements. Melbourne City Mission for city-based youth services; Doutta Galla Community Health for youth services for the neighbourhood areas of Kensington, North Melbourne and Flemington; and the YMCA Victoria for the provision of youth services in the Carlton/Parkville area. 4. In December 2008, a strategic review of the existing youth services was undertaken by Grosvenor Management Consulting Group and it was recommended that Council continue to fund providers to deliver youth services on its behalf, and that services continue to be provided to three local areas of high need: the central city; Kensington/North Melbourne and Carlton/Parkville. Current Arrangements 5. The CBD Youth Service is currently delivered by Frontyard Youth Service, Melbourne Citymission which provides a collection of integrated services located in one building that support young people aged 12 to 25 years who live or spend time in the CBD and are homeless or at risk of homelessness.
3 Page 2 of 9 6. YMCA Victoria, Carlton/Parkville Youth Service deliver services to young people aged 12 to 25 years who live or visit the Carlton and Parkville areas. The service predominately targets young people in the Carlton housing estate area and includes the delivery of recreation programs; personal support, advocacy and referral; school-based programs; youth events and personal development programs. 7. Doutta Galla Community Health, Youth Unlimited provides services to young people who live and/or visit the areas of Kensington/Flemington and North Melbourne. This service provides a range of targeted responses in relation to social support, advocacy and referral; case management; youth arts and recreation; holiday camps and school-based programs. 8. The current arrangements for the delivery of youth services as outlined above are due to expire on 30 June Proposed Arrangements 9. The youth services specified under the contracts include the provision of integrated and responsive services and programs for young people aged 12 to 25 years who live, study, work and/or visit the: CBD (Service A); Kensington, Flemington, North Melbourne neighbourhoods (Service B); and Carlton and Parkville neighbourhoods (Service C). This includes: 9.1. the provision of best practice service delivery models that meet the identified needs of at risk young people in the localised area which include short, medium and long-term interventions such as: personal support, counselling and outreach; case management, advocacy and referral; education, employment and training assistance; drug and alcohol, legal and mental health support services; links to family support, counselling and referral; personal development and engagement programs; primary health; recreation and/or holiday programs; and/or school and/or community based programs; 9.2. a commitment to the targeting of resources on the basis of need; 9.3. the recruitment, training and support of staff and volunteers; 9.4. the development of partnerships and collaborations with key stakeholders such as schools, family, community and other youth service providers; and 9.5. the promotion of Youth Service/s to young people and their families who live, work and/or study in the area. 2
4 Page 3 of The term of the new contract is for three years from 1 July 2009 to 30 June 2012 with an option for council to extend for one year until 30 June Rationale for putting out to tender 11. Youth service contracts with the existing providers are due to expire on 30 June These contracts have already been extended for one year from 1 July 2008 to 30 June Under section 186 of the Local Government Act 1989, Council is required to invite tenders before entering into certain contracts to carry out work or purchase goods or services that are directed or authorised to be carried out by the Council. Expected Outcomes 12. The key requirements that have been specified in the tender for all of the youth services (Service A, B and C) include the following: 12.1 deliver high quality, integrated and responsive services to young people aged 12 to 25 years; 12.2 provide accurate and timely reporting on financial management performance, budgets, tasks and requirements as directed by City of Melbourne; 12.3 engage all stakeholders to facilitate client engagement, service provider cooperation and partnership, and knowledge sharing with City of Melbourne; 12.4 identify and respond to the needs of young people in the City of Melbourne locality area; 12.5 continually improve and develop integrated service responses to optimise client outcomes; 12.6 collect and manage accurate data in relation to client information, service use and outcomes, and regularly evaluate programs and services; and 12.7 manage risk and compliance through a robust framework and processes. 13. Key performance indicators (KPI s) and performance measures specific to each of the service areas have been specified in the tender. Tender Evaluation Process Invitation to Tender 14. Tenders for the Youth Services Contracts closed on 13 March 2009 after a four week tender preparation period. No late tenders were received. 15. A briefing session for Tenderers was conducted on 23 February Potential Tenderers were briefed on Council s objectives, the scope of the required services, the evaluation methodology and the requirement for the Tenderers to complete the schedules to the ITT document. 16. Tenders were received from the following organisations for each of the three service areas (three year cost is listed in brackets): Service A: Melbourne Citymission ($1,350,565); Service B: Doutta Galla Community Health ($1,104,935) and Mission Australia ($1,104,935); and Service C: Drummond Street Relationship Centre ($603,398) and YMCA Victoria ($616,223). 3
5 Page 4 of 9 Evaluation Panel, Criteria and Weighting System 17. The Tender Evaluation Panel consisted of three full members and two advisory members. The full evaluation panel members consisted of two City of Melbourne staff (Manager Families, Children and Youth and the Team Leader of Youth Policy and Programs) and an external representative (Senior Program Advisor, VicHealth). 18. The Tender Evaluation Panel met on Friday 13 March and Monday 23 March Evaluation panel members rated each of the tenders in relation to the criteria. Final scores were discussed at the Tender Evaluation Panel meeting held on 23 March 2009 and a final weighting score for each tender was determined. Final scores were recorded on the Tender Evaluation Summary Worksheet. 19. The evaluation criteria and weightings were declared to tenderers. The criteria are listed in order of importance, the most important being at the top of the list and are outlined in the table below. Criteria Cost Lump sum price breakdown Plan for Proposed Services Proposed personnel Proposed work plan and implementation schedule Ability to provide integrated and responsive service delivery Commitment to strengthen targeting of resources on the basis of need Proposed organisational structure Relationship Management Risk Management Plan Experience, Capability & Past Performance Demonstrated experience in providing Youth Services and working in response to localised and changing needs Resource capacity Demonstration of past performance Commitment to social justice Occupational Health & Safety Health & safety systems and work practices Proposed OH & S processes and procedures Quality Assurance Quality assurance systems and work practices Robust data management systems Weightings 45 % 25 % 20 % 5 % 5 % Tender Evaluation Panel Comments 20. It was determined that all five tenders met the minimum requirements of the evaluation criteria. All five tenderers provided good quality submissions and were assessed as being capable of performing the contract requirements satisfactorily. 21. In relation to Service A, only one tender submission was received. Melbourne Citymission, (the current provider) provided a strong and well developed tender submission that clearly outlined how services would continue to be integrated and responsive to the needs of at- risk young people. Melbourne Citymission has a long standing history of working in partnership with Council and has performed very satisfactorily in its current contract. Melbourne Citymission has a very experienced staff team and is well-known in the sector for providing an integrated service platform for young people in Victoria. 22. There were two tenders received for Service B. Doutta Galla Community Health (the current provider) and Mission Australia provided strong submissions, however Doutta Galla was rated more highly than Mission Australia, and recommended as the preferred tenderer. 4
6 Page 5 of Doutta Galla Community Health are currently delivering youth services in the Kensington/ North Melbourne area through the Youth Unlimited Program. They have performed very satisfactorily in their contract over the past four years. The key strength of their proposal in comparison to that presented by Mission Australia was their demonstrated ability to provide integrated services to a broad range of young people in the area and a strong after-hours focus. Doutta Galla Community Health also had strong links to other specialist services such as family and children s services, primary health care and mental health services. They are also well networked and have strong partnerships with other councils, providers and community organisations in the local area. 24. Mission Australia s proposal although satisfactory, outlined a traditional case-management model of service delivery and provided insufficient evidence of links to other locally based services (ie. schools and other service providers); and of service integration. Although Mission Australia are well known as a provider of employment and training programs across Australia (ie. JPET and Job Futures) their proposal showed insufficient evidence of partnerships and links. 25. In relation to Service C, there were two tenders received being from Drummond Street Relationship Centre and YMCA Victoria. 26. The YMCA Victoria currently provides youth services in the Carlton/Parkville area and have performed satisfactorily in their contract over the last four years. Although their tender submission was strong, they did not score as highly as Drummond Street Relationship Centre in relation to their plan for proposed services. The proposed model was limited to the provision of generalist support, and recreation and personal development programs. The capacity and experience of the staff team was considered to have limitations in relation to youth-specific experience and qualifications. The YMCA has a history in the municipality and is well-known in the community. There was a strong alignment to current Council policies. 27. Drummond Street Relationship Centre provided a strong tender submission with a service model that was evidence-based and underpinned by social health and health promotion approaches. The proposed service model outlined a range of multi-dimensional programs, targeted to meet need, that were integrated with other specialist programs offered by Drummond Street Relationship Centre such as family counselling, mental health and CALD-specific services. Programs were targeted to a much broader range of youth cohorts such as international students, newly-arrived young people, CALD young people, at-risk and GLBTI young people. The proposed staff structure provided a breadth of experience and specialist skills. 28. Both submissions were strong, however Drummond Street Relationship Centre demonstrated an enhanced capacity to deliver integrated and responsive services to a broad range of young people in the local area. Their submission also demonstrated an ability to deliver services from a variety of settings which included schools, family, peers and the community. For this reason, Drummond Street Relationship Centre is recommended as the preferred tenderer. Performance Measurement 29. Key performance indicators have been outlined in the tender. Successful tenderers are required to report quarterly and to attend quarterly contract meetings with Council to ensure that key performance indicators are met. In addition, successful tenderers are required to submit an annual report to council which includes an annual business plan, work plan and risk management plan for the following year. 30. Successful tenderers are required to attend a meeting every four months with other youth service providers contracted by council in order to share information regarding service trends and delivery across the municipality, and to ensure that services contracted by council are integrated. In addition, successful tenderers are required to attend the Melbourne Youth Services Forum which is a general service provider meeting for all youth services across the municipality to network and build partnerships. 5
7 Page 6 of 9 Council Assets and Offsets 31. Council assets that will be provided in relation to Service B include access to designated space at the North Melbourne Community Centre for the delivery of Youth Services which includes office space and a shared recreational area (with pool and table tennis tables, and couches). No costs will be incurred regarding the use of this space. Concluding comments 32. All members of the tender evaluation panel concur with the recommendation. Pecuniary Interest and Probity Statement 33. No member of the evaluation panel has a pecuniary or personal interest in the tenders or contract. 34. The evaluation has fully complied with the Local Government Act 1989 and the Conditions of Tendering. No potential tenderer had access to the final specification prior to its release. All advice, written or verbal, provided to a respondent clarifying any aspect of the tender documentation was also provided to all other respondents. No tenderer was provided any advantage over other tenderers, and all were treated fairly and equally during the tendering process. Information provided by tenderers which has been deemed confidential, has been protected, and will not be disclosed. A consistent standard for all tenderers has been used in assessing any request for confidentiality by a tenderer/s. 35. Tenderers were provided Council s Conditions of Tendering. Time Frame 36. The current contracts expire on the 30 June It is proposed that new contracts will commence on 1 July Relation to Council Policy 37. The recommendation is consistent with A City of Young People Young People s Policy: , Council Plan , A City of Opportunity - Multicultural Strategy and the Municipal Health Plan City Health Finance 38. The draft 2009/2010 budget includes $993,000 for the provision of Youth Services. 39. The Contracts are for 3 years and include an annual increase of 3%. Year 1 09/10 Year 2 10/11 Year 3 11/12 TOTAL SERVICE A Melbourne Citymission $436,911 $450,127 $463,527 $1,350,565 SERVICE B Doutta Galla Community Health $357,480 $368,204 $379,251 $1,104,935 SERVICE C Drummond St Relationship Centre $198,600 $199,408 $205,390 $603,398 TOTAL $992,991 $1,017,739 $1,048,168 $3,058,898 6
8 Page 7 of 9 Legal 40. When the Council intends to enter into a contract for the purchase of goods or services or the carrying out of works valued at $150,000 or more, section 186 of the Act imposes a duty on the Council by public notice either to invite tenders or to invite expressions of interest. 7
9 Page 8 of 9 Agenda Item 5.5 Finance and Governance Committee 14 April 2009 FINANCE ATTACHMENT TENDER EVALUATION REPORT: YOUTH SERVICES The draft 2009/2010 Annual plan and Budget includes $993,000 for the provision of Youth Services as a contracted service. Joe Groher Manager Financial Services
10 Page 9 of 9 Agenda Item 5.5 Finance and Governance Committee 14 April 2009 LEGAL ATTACHMENT TENDER EVALUATION REPORT: YOUTH SERVICES When Council intends to enter into a contract for the purchase of goods and services valued at $150,000 or more (levels increased by Order in Council dated 7 August 2008), section 186 of the Local Government Act 1989 ( the Act ) imposes a duty on the Council by public notice either to invite tenders or to invite expressions of interest. The Act does not require Council to accept the lowest tender. Kim Wood Manager Legal Services
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