TENDER EVALUATION REPORT: MAINTENANCE OF ELECTRONIC SECURITY EQUIPMENT
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1 Page 1 of 8 FINANCE AND GOVERNANCE COMMITTEE REPORT TENDER EVALUATION REPORT: MAINTENANCE OF ELECTRONIC SECURITY EQUIPMENT Agenda Item August 2007 Division Sustainability & Regulatory Services Presenter Robert Marsh, Manager Property Services Purpose 1. To seek Council approval to award a contract to Sydney Night Patrols Pty Ltd for the maintenance of electronic security equipment. Recommendation from Management 2. That the Finance and Governance Committee recommend that Council award the Maintenance of Electronic Security Equipment services to Sydney Night Patrols Pty Ltd for a three (3) year term for a lump sum of $235,588 per year in accordance with the negotiated terms and conditions. Key Issues: Tender Evaluation Process Invitation to Tender 3. The timetable for the tendering process was as follows: 24 Feb 2007 Tender advertised 27 March 2007 Tenders closed 1 Sept 2007 Proposed Award of Contract Tender Evaluation Panel 4. The technical responses to the Invitation to Tender (ITT) were evaluated by a Tender Evaluation Panel (TEP) comprising: Russell Lightfoot Full Member Iain Simpson (Umow Lai) Full Member Lyn Southward (PSI Consulting) Full Member 5. Lyn Southward, relocated overseas and Denzil Flood of PSI Consulting replaced her on the Evaluation Panel, from May 1. Iain Simpson, was transferred overseas from his position with Umow Lai and John Avriomitis of Umow Lai replaced him on the Evaluation Panel, from May 1.
2 Page 2 of 8 Evaluation Criteria and Weighting System 6. Tenders were received from seven (7) respondents and were evaluated against the criteria and weighting as set out in the invitation to tender. The scores for each respondent are detailed as Attachment From the evaluation process and subsequent interviews, the evaluation panel assessed that SNP should be awarded the contract to provide the maintenance of electronic security equipment. Evaluation Criteria 8. The following table lists the evaluation criteria that were stated in the ITT documents. The weightings for the evaluation criteria were declared to tenderers. Evaluation Criteria Cost Lump sum price breakdown or Schedule of rates Unit rates & hourly rates for variations Specified Personnel - Hourly and Daily Rates for Variations Hourly Labour Rates for Variations Material and Equipment Rates for Variations Experience, Capability & Past Performance Company Organisational structure Resource Capacity Current Commitments Expertise in Providing the Services Demonstration of Past Performances and Referee Reports Resources: People and Systems Commitment to Achieving Work Programs Commitment to Quality Commitment to OH&S Plan for Proposed Services Work Plan and Methodology Proposed Organisational Structure Off-site Management Support Structure, Services and Systems Innovation & Technology Proposed personnel Continuing Availability of Resources Contract Control and Reporting Systems Relationship Management Risk Management. Discrimination and Harassment Risk Management Proposed Quality Assurance Processes Proposed OH&S Processes Tender 50% 25% 25% Tender Briefing 9. A briefing session for Tenderers was conducted by Russell Lightfoot on 8 March 07 at the Melbourne Town Hall. 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. 2
3 Page 3 of 8 Tender Responses 10. Responses to the ITT were received from the following organisations: Specialist Australian Security Group Pty Ltd ADACS Systems Chubb Electronic Security SNP Security Pty Ltd Sielox Security Ztronics Technologies ADT Security Tender Evaluation Panel Meetings 11. The Tender Evaluation Panel met on five ( 5 ) occasions. Tender Evaluation 12. The TEP examined all of the tender responses before assessing in detail the Tenderer s acceptability against each criterion. 13. Tenders from SNP Security Pty Ltd, Sielox Security, Ztronics Technologies and ADT Security were considered acceptable and a short-list of SNP Security Pty Ltd and Ztronics Technologies was declared by the TEP. 14. Tender interviews were conducted with the short-listed Tenderers as part of the process of completing the assessment of the Tenders. 15. The following tenders were assessed as non conforming: Chubb Electronic Security ADACS Systems Specialist Australian Security Group Pty Ltd Tender Assessment 16. A summary of the perceived strengths and weaknesses of the Tenderers and the scores assessed were documented. The relative ranking of Tenderers, shown on the Tender Summary Worksheet that is provided as Appendix 1, was determined from the total weighted scores. Ranking Tenderer Assessed (Out of 100) 1 SNP Security Pty Ltd Ztronics Technologies Sielox Security ADT Security
4 Page 4 of An overview of the perceived strengths and weaknesses of the conforming tenders not set aside is shown in the table below. Tenderer SNP Security (Ranking 1) Ztronics Technologies (Ranking 2) Sielox Security (Ranking: 3) ADT Security (Ranking: 4) STRENGTHS Comments National Company Capability: Licensed in Cardax & DVTEL systems maintenance & installation Experienced in CCTV, alarm & access control systems High level of Innovation & Technology well described in Tender. Proposed personnel - good level of skill and training Continuing Availability of Resources company is a long-standing one, with, good recruitment proposals. Contract Control and Reporting well detailed. WEAKNESSES Limited work history with CoM Relationship Management. Schedule of ongoing relationship management proposed, lacks detail but indirectly addressed through contract control plans. STRENGTHS Knowledge of Safe City Camera program Knowledge of CoM alarm & Access Control systems Work Plan and Methodology. Well thought out, containing a good methodology and detail Proposed Organisational Structure. Well organised structure proposed. Contract Control. Very good and detailed proposal showing good experience. WEAKNESSES No accreditation in Cardax & DVTEL systems, intention is to use Sub- Contractor Proposed Organisational Structure. Detailed proposal but Sub-contractor is unknown to CoM. Off Site Support structure is limited in comparison to other Tenderers. STRENGTHS Proposed personnel - good background with solid expertise. Continuing Availability of Resources long standing company with evidence of long-term employees. OHS & QA Processes. Thorough and comprehensive. Commitment to Achieving Work Plans. Strong work and maintenance plans included. WEAKNESSES Proposed organisational Structure. No specific structure proposed. Innovation and Technology proposals generic in nature, with nothing specific contained within Tender. Contract Control and Reporting. The metered call approach was considered to be barely acceptable. Relationship management. Lacked detail. STRENGTHS The ADT Tender contained no particular strengths to set it apart from the other Tenders received. WEAKNESSES Similarly, there were no particular weaknesses demonstrated in the Tender. In short an acceptable, but not outstanding Tender. 18. From the rankings, the TEP has nominated SNP Security Pty Ltd as the Preferred Tenderer. Council Assets and Offsets 19. Coupled with the introduction of the new security assets register and the integrated asset management system, this contract will seek to improve the overall monitoring of programmed maintenance, renewal and replacement of security assets. 20. This enhanced understanding of security assets is designed to extend asset life, improve scheduling and prioritisation of renewal works and more efficient allocation of resources. 4
5 Page 5 of 8 Pecuniary Interest and Probity Statement 21. All members of the TEP have completed and signed the Pecuniary Interest, Conflict of Interest, and Confidentiality Declaration. 22. No member of the evaluation panel has a pecuniary or personal interest in the tenders of contract. 23. 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. Relation to Council Policy 24. The service will deliver value for money and the tender has provided an opportunity to benchmark suppliers and costs, with a view to delivering quality services that are cost effective. Finance 25. The cost for the new contract is $235,588 per year and since it is proposed that the contract operate for 3 years, the total amount for will be $706,762, funded from the Property Services budget. A total of $288,000 has been provided for these services in the 2007/08 budget. Legal 26. When the Council intends to enter into a contract for the purchase of goods or services or the carrying out of works valued at $100,000 or more, section 186 of the Local Government Act 1989 imposes a duty on the Council by public notice either to invite tenders or expressions of interest. Background Rationale for putting out to tender 27. The maintenance of electronic security equipment over the last few years has been undertaken in a piecemeal way, engaging a number of contractors to carry out works on the various aspects of the electronic security equipment, i.e.. alarm systems, access control and closed circuit television (CCTV) New technologies have been introduced into Council, in the areas of alarm systems, access control and CCTV, which have provided the opportunity to consolidate the existing individual maintenance arrangements, into a single contract which will provide cost effectiveness and improved asset management. 5
6 Page 6 of 8 Attachment 1 Agenda item 5.3 Finance and Governance Committee 14 August 2007 abc Contract Name: TENDER EVALUATION SUMMARY WORKSHEET Maintenance of Electronic Security Equipment Contract Number 3328 Insert Highest Possible (required to automatically calculate weighted score) 10 Evaluation Criteria Weighting ADT Sielox SNP Ztronics Wghtd Wghtd Wghtd Wghtd Cost Experience, Capability & Past Performance Plan for Proposed Service TOTAL TENDERER RANKING
7 Page 7 of 8 Agenda Item 5.3 Finance and Governance Committee 14 August 2007 FINANCE ATTACHMENT TENDER EVALUATION REPORT: MAINTENANCE OF ELECTRONIC SECURITY EQUIPMENT The cost for the new contract is $235,588 per year and since it is proposed that the contract operate for 3 years, the total amount for will be $706,762, funded from the Property Services budget. A total of $288,000 has been provided for these services in the 2007/08 budget. Joe Groher Manager Financial Services
8 Page 8 of 8 Agenda Item 5.3 Finance and Governance Committee 14 August 2007 LEGAL ATTACHMENT TENDER EVALUATION REPORT: MAINTENANCE OF ELECTRONIC SECURITY EQUIPMENT When Council intends to enter into a contract for the purchase of goods and services valued at $100,000 or more, 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. Where a Council seeks expressions of interest, the Council must, when ready to enter into the contract, invite tenders from some or all of those who registered their interest in undertaking the contract. The Act does not require Council to accept the lowest tender. Kim Wood Manager Legal Services
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