tender report: contract hdc 427

Report
To:
Operations Committee
From:
District Engineer and Roading Manager
Date:
7 October 2014
File reference:
Document:
Meeting date:
15 October 2014
Subject:
Tender report: Contract HDC 427 :
Thames-Coromandel and Hauraki Districts Annual
Resurfacing 2014/15
1274797
RECOMMENDATION
THAT the report be received, and
THAT the tender of Downer New Zealand for $1,872,170.73 be accepted, and
THAT the scope of work defined in the Hauraki District Council portion of the Contract works is
carried out at a tendered cost of $460,138.62 inclusive of a $25,000 contingency sum, and
THAT it be noted that the 2014/15 budget provision of $750,000 for reseals will not be fully utilised.
Purpose
This report summarises the outcome of the tender process, describes the tender evaluation and
makes a recommendation for the award of the 2014/15 resurfacing contract. This contract is for
resealing and thin asphaltic surfacing on the Hauraki and Thames-Coromandel District Council’s
road networks.
Background
Thames-Coromandel and Hauraki Districts have continued the agreement to tender their annual
resurfacing work as a combined contract for the ninth year running. This approach has been taken
to provide economies of scale and a more attractive tender package.
Contract HDC 427 was uploaded into the online tendering system “Tenderlink”. Tenders closed at
4.00pm on Tuesday 10 October 2014 at the Hauraki District Council offices.
1
Four conforming tenders were received, from:
Downer New Zealand
Fulton Hogan Ltd
HEB Construction Ltd
Higgins Contractors Ltd
Attributes were evaluated in accordance with the RFT and the Price Quality Method Simple (PQM
Simple) as per Council’s Procurement Manual. Tenders were evaluated by a tender evaluation
team (TET), comprising of:
John Kaczon
Ross Bayer
Carl Staples
Opus – TET Chairman
Opus – Team Leader HDC-TCDC NMC
Opus – Area Engineer
CONTRACT DATA
Contract No:
Contract Name:
Contract Estimate:
Number of Tenders Received:
Tenders Ranged in Price from:
Recommended Tenderer:
Value of Recommended Tender:
Submitted Tender Price:
HDC 427
Thames-Coromandel and Hauraki Districts Annual
Resurfacing 2014/15
$1,994,823.23
4
$1,872,170.73 to $ 2,028,084.58
DOWNER New Zealand
$1,872,170.73
$1,872,170.73
94% of estimate
Error in non -Price Attributes:
Errors in Schedule of Prices:
Tender Tags:
Total Value of Tags:
Adjusted Value of Tender:
Alternative Tender Submitted:
No
No
No
N/A
N/A
No
Engineer to the Contract:
Alex Mackenzie – Opus Consultants Hamilton
Issues and options
Price Quality Method matrix analysis was completed on Tenderer’s non-price attributes, to
determine the Tenderers’ relative Supplier Quality Premiums (SQPs). The SQP represents an
amount the Principal would theoretically be willing to pay, for the added value provided by the
superior tender, based on the Non-Price Attributes (NPAs). NPA scores on which the SQPs were
based varied from 21.61 to 22.90.
Following approval from the HDC District Engineer, the tenderers’ price envelopes were opened.
The Provisional Sums and SQP values were then subtracted from the tender prices. The analysis
identified the tender of Downer as the preferred tender under the tender evaluation criteria.
Downer is a large ISO 9001 certified contractor, has the necessary resources for a contract such
as this including, own bitumen blending, emulsion and asphalt plants. Downer has undertaken
numerous similar projects in the region and in this district. Downer therefore has the necessary
skills, experience and resources to successfully complete the contract.
2
Budget Implications / Decision Making Process
The tendered prices detailed above are the combined prices for the Hauraki and ThamesCoromandel District Council contract works. The price tendered by Downers for Hauraki District
Council’s component of this project is $460,138.62, inclusive of a $25,000 contingency sum.
Council has budgeted $750,000 for resurfacing physical work in the 2014/15 year.
Cost fluctuations will be applied to the tendered rates for work completed as part of this
resurfacing contract. Due to the bitumen price volatility it is likely that the final contract price may
vary from the tendered price by a relatively small amount.
Council has budgeted $750,000 for resurfacing physical work in the 2014/15 year. The scope of
work in the contract is considerably less than this year’s budget. The scope of work has been
determined by staffs’ detailed inspection of the lengths of road which were put forward as
candidates for resealing.
Awarding the Contract:
In addition to the contract documents, a Joint Principals Agreement (between HDC and TCDC)
has been signed allowing either Principal to withdraw from this combined contract during the
tendering period for any reason. If this occurs, the contract will need to be re-tendered.
The Joint Principals Agreement, between HDC and TCDC, requires the award of Contract HDC
427 to be approved by both principals. The recommendations below provide for the necessary
approvals.
Conclusion
It is recommended:
1.
That the tender of Downer for $1,872,170.73 be accepted, subject to acceptance also
by Thames Coromandel District Council.
2.
That the scope of work defined in the Hauraki District Council portion of the Contract
works is carried out at a tendered cost of $460,138.62 inclusive of a $25,000
contingency sum.
Gene Thomsen
Roading Manager
3
Ken Thompson
District Engineer

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