Page 1 of 7. Ray Buckley, Manager Rates & Valuations

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1 Page 1 of 7 FINANCE AND GOVERNANCE COMMITTEE REPORT TENDER EVALUATION REPORT: DEBT COLLECTION SERVICES Division Finance Presenter Ray Buckley, Manager Rates & Valuations Purpose 1. To seek Council approval to award a contract to Australian Receivables Limited for the provision of Debt Collection Services to the City of Melbourne. Recommendation from Management 2. That the Finance and Governance Committee recommend that Council award the contract for Debt Collection Services to Australia n Receivables Limited for a term of three years for a value of approximately $147,266 per annum (most of which is fully recoverable), with an option to extend for a further two years and otherwise in accordance with the negotiated terms and conditions of contract. Key Issues: Tender Evaluation Process Invitation to Tender 3. Tenders for the Debt Collection Services Contract closed on 13 February 2007 after a five week tender preparation period. No late tenders were received. Evaluation Criteria and Weighting System 4. Tenders were received from five respondents and were evaluated against the criteria and weighting as set out in the invitation to tender (see Attachment 1). The scores for each respondent are detailed in the Tender Evaluation Summary (see Attachment 2). 5. From the evaluation process and subsequent interviews, it was the assessment of the evaluation panel that Australian Receivables Limited should be awarded the contract to provide Debt Collection Services to the City of Melbourne. Performance Measurement 6. The invitation to tender listed seven KPI s to be used as a measure of the ongoing performance of the successful tenderer. It also required tender proposals to indicate how the performance standards will be met and how the tenderer will measure the satisfaction levels of the service users. Council Assets and Offsets 7. There are no Council assets or offsets applicable to this tender. Concluding comments 8. All members of the evaluation team concur with the recommendation to award the contract for Debt Collection services to Australian Receivables Limited.

2 Page 2 of 7 Pecuniary Interest and Probity Statement 9. No member of the evaluation panel has a pecuniary or personal interest in the tenders or contract. 10. 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. 11. Tenderers were provided Council s Conditions of Tendering. These conditions state that canvassing of Councillors by any tenderer on any matter relating to the tender will result in automatic disqualification. Relation to Council Policy 12. Council aims to deliver quality services that are responsive to business and community expectations, demonstrably cost-effective and subject to public accountability. Council is committed to delivering its services equitably and in a way that meets customer needs, minimises costs and recognises Council accountability. Finance 13. This service is a budgeted item of $147,266 per annum. This service is virtually cost neutral as the vast majority of these charges, which relate to rates or other debt, are fully recoverable. Legal 14. 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 to invite expressions of interest. Sustainability 15. No issues were identified in the Sustainability assessment for Committee Report. Background Current Arrangements 16. The current debt collection service is provided by ML&C Collections Pty Ltd who were successful when Council last tendered in Proposed Arrangements 17. The proposal is for Australian Receivables Limited to provide an enhanced Debt Collection service to City of Melbourne. Rationale for putting out to tender 18. A best value review supported the option to tender for the provision of these services as they could not be sourced internally. 2

3 Page 3 of 7 Expected Outcomes 19. A quality and technologically advanced Debt Collection service which encompasses City of Melbourne values and customer service standards. Attachments: 1. Criteria and Weighting 2. Tender Evaluation Summary 3

4 Page 4 of 7 Criteria Attachment 1 Finance and Governance Committee Weightings Cost Schedule of Rates 20 % Experience Capability & Past Performance Core Business and Main Client Base Current Commitments Expertise in Providing the Services Demonstration of Past Performances and Referee Reports Resources Commitment to Achieving Work Programs 40 % Plan for Proposed Services Proposed Work Plan and Methodology Proposed organisational structure for this Contract Innovation and Technology Specified Personnel Continuing Availability of Resources Contract Control and Reporting Systems Relationship Management. Risk Management Discrimination and Harassment Risks 30 % Occupational Health & Safety Commitment to Occupational Health and Safety Proposed Occupational Health and Safety Processes 5 % Quality Assurance Commitment to Quality Proposed Quality Assurance Processes 5 % 1

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6 Page 6 of 7 Finance and Governance Committee FINANCE ATTACHMENT TENDER EVALUATION REPORT: DEBT COLLECTION SERVICES Funding of $147,266 has been provided in the 2006/07 budget for debt collection service for rates and other debts (excluding parking fines). The vast majority of these charges are fully recoverable from the ratepayers. Joe Groher Manager Financial Services

7 Page 7 of 7 Finance and Governance Committee LEGAL ATTACHMENT TENDER EVALUATION REPORT: DEBT COLLECTION SERVICES 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 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