From:
Jörn Scherzer
To:
Dave Dews; John Middleton
Cc:
Matt Reid
Subject:
scoring the procurement suppliers
Date:
Monday, 4 November 2019 1:26:19 PM
Attachments:
assessment template - kerbside procurement.XLSX
Hi guys
In order to help make a decision on our preferred supplier, I think it would help to score them to
derive a decision. Hence, I have pulled together a short assessment template to provide scores
against – I propose – three criteria. See attached.
If each of us can do theirs, then I can pull the scores together and create a summary score based
on our three assessments, and we can arrange a quick meeting to finalise decisions on our
preferred supplier, possibly as early as tomorrow. If GHD ends up not submitting a proposal,
then it would just be between TT and ML.
Kind regards
Joern
From: Dave Dews
Sent: Monday, 4 November 2019 12:54 PM
To: Jörn Scherzer
Subject: Fwd: HCC Kerb Collection Contract
Hi Jorn
Not sure if you were copied in on this?
Cheers
Dave
Begin forwarded message:
From: Erin Cooksley <[email address]>
need letter
Date: 1 November 2019 at 15:22:54 NZDT
To: Dave Dews <[email address]>, John Middleton
<[email address]>
Subject: HCC Kerb Collection Contract
Good afternoon,
As discussed, attached is the letter of engagement for the works of kerbside
collection.
Thanks,
Ngā Mihi | Kind regards,
Erin Cooksley | Project Support Coordinator / Office Administrator
BA
Tonkin + Taylor - Exceptional thinking together
Level 4, 2 Hunter Street, Wellington 6011 | PO Box 2083, Wellington, New Zealand
T +6444604102 www.tonkintaylor.co.nz
Tonkin and Taylor
Cost
Points
Weighting
Total
Description of criteria
Guidance notes
Justification for score | Comments
(non-
weighted)
(if weighted)
Points
The degree to which the
Methodology and approach,
methodology and
understanding of our
approach is likely to result
30%
0
requirements
in a robust business
case(s).
The degree to which the
Capacity and capability of the
supplier has the capacity
supplier to deliver
and capability to deliver on
40%
0
the requirements.
The relative cost of the
Value for money
proposal, in consideration
of the work to be
30%
0
delivered.
TOTAL
0
Morrison Low
Cost
Points
Weighting
Total
Description of criteria
Guidance notes
Justification for score | Comments
(non-
weighted)
(if weighted)
Points
The degree to which the
Methodology and approach,
methodology and
understanding of our
approach is likely to result
30%
0
requirements
in a robust business
case(s).
The degree to which the
Capacity and capability of the
supplier has the capacity
supplier to deliver
and capability to deliver on
40%
0
the requirements.
The relative cost of the
Value for money
proposal, in consideration
of the work to be
30%
0
delivered.
TOTAL
0
GHD
Cost
1000
Points
Weighting
Total
Description of criteria
Guidance notes
Justification for score | Comments
(non-
weighted)
(if weighted)
Points
The degree to which the
Methodology and approach,
methodology and
understanding of our
approach is likely to result
30%
0
requirements
in a robust business
case(s).
The degree to which the
Capacity and capability of the
supplier has the capacity
supplier to deliver
and capability to deliver on
40%
0
the requirements.
The relative cost of the
Value for money
proposal, in consideration
of the work to be
30%
0
delivered.
TOTAL
0
Job No: 1012703.0000
1 November 2019
Hutt City Council
Private Bag 31-912
Lower Hutt
5040
Attention: Jorn Scherzer
Dear Jorn
Collections contract procurement
Following our recent meeting of 31 October 2019, and as you requested on this date, we are pleased
to confirm the basis on which we will support the procurement process for refuse and recycling
collection services in Hutt City for you as our client.
We have included the presentation material provided to you on 31 October with this letter. This
outlines our capability, a selection of clients we have completed similar work for and an outline of
our proposed approach.
Scope of work
At the commencement of all projects we hold a formal kick-off meeting, given the time urgency of
this job this will be within a few days of formal contract award. For this project we propose meeting
in person, due to our close proximity. This meeting provides an opportunity to:
Confirm the project scope and project management arrangements including reporting
requirements, meetings, workshops and risk management.
Ensure all key information for the project is provided.
Confirm the project timeline including key reporting deadlines with Council. We will confirm
the proposed schedule to which we will work with yourselves for this project.
Our approach is outlined in tasks 1 - 7 below.
Procurement Strategy
1
Procurement Strategy development
Based on discussions to date we anticipate the strategy will set out a process intended to
appoint a preferred supplier based on quality and pricing of a preliminary scope of works
covering refuse and recycling collection. The pricing will be used to inform consultation on a
proposed service change as part of the 2020 Annual Plan process. Once the Annual Plan
process is completed, if required Council will negotiate any changes in scope or price with the
preferred supplier.
We note that Upper Hutt City Council (UHCC) have expressed interest in being involved in the
procurement process. UHCC could participate in the Procurement Strategy development
Tonkin & Taylor Ltd | Harbour Tower, Level 4, 2 Hunter Street, Wellington 6011, New Zealand | PO Box 2083, Wellington 6140
P +64-4-381 8560 F +64-9-307 0265 E [email address]
2
process to inform their decision on whether to join the process. There is potential for the
contract specification to include a separate portion for services in Upper Hutt City.
We will produce a procurement strategy which covers:
Council objectives.
Commentary on:
Contractors in or entering the Wellington market.
Recycling commodity markets.
The national picture: including policy, other tender processes, equipment
manufacture lead times etc.
Confirms key aspects of the procurement process including:
Contract form (including legal advisors).
Non-price criteria and weighting.
Bundled vs. unbundled services.
Risk e.g. markets for recyclables.
Evaluation approach including considering disparate options and innovations.
Proposed roll out recognising likely tight timeframes for equipment procurement –
allowing for progressive transition to new services.
A programme for the procurement process will be produced as part of the strategy. This will
define key tasks, milestones and timescales until contract starts. There will be uncertainty for
some components of the programme, these will be highlighted and tracked as the
procurement process proceeds. We also note the potential for a stage roll out to hit the
2020/21 Christmas period, this will be reflected in the programme, including avoidance of
some activities from late December to mid-late January.
As part of the development of the Procurement Strategy, we will complete a service delivery
review as per the requirements of Section 17A of the Local Government Act 2002.
Key activities for this task include:
Developing a preliminary draft Procurement Strategy focussed on setting out context
and options for consideration. This preliminary draft will be used as briefing material for
a Procurement Strategy Workshop.
Run a procurement strategy workshop to discuss and debate options for key aspects of
the procurement process. We anticipate key staff from Council, Council’s legal advisors
and T+T participating in this workshop. This workshop will confirm service objectives
and key aspects of the procurement process.
Following the workshop we will complete a final draft Procurement Strategy for your
review and comment.
We will use the service objectives developed in the workshop to assess the
‘effectiveness’ of options for a Section 17A review. We anticipate creating a simple
summary of the Section 17A review that can standalone and be included as an
attachment to the Procurement Strategy.
We will deliver the draft Procurement Strategy and output of the Section 17A review, within 4
weeks of contract award.
For some similar projects we have delivered Council workshops at this stage. This being to
inform Councillors about the proposed process and prepare them for later, more detailed
discussions on contract scope and price (in the context of the Annual Plan process). The recent
Tonkin & Taylor Ltd
1 November 2019
Collections contract procurement
Job No: 1012703.0000
Hutt City Council
3
paper to Council outlining collection options and likely pricing has addressed this well. We
have included an optional item to participate in a workshop at this stage if required.
Procurement Process (indicative scope, to be agreed following completion of Task 1)
2
Draft contract documents
We will work with you and your legal advisors, to produce the required tender documents.
The details of the contract form, tender process, contract specification and related matters
will be confirmed through the Procurement Strategy Development.
Based on discussions to date we anticipate the tender documents will:
Provide for refuse collection and recycling collection with provision for other services
and innovations.
Request the required information on track record, relevant experience, key resources
(people and plant), methodology, health and safety and management systems.
Seeking pricing of specified services and alternative proposals.
Explain the proposed approach – appoint a preferred supplier based on quality and
pricing of the proposed approach (and/or alternatives), test the service level
change/price via the 2020 Annual Plan process, confirm/negotiate on scope and price.
3
Tender process
Once Tender documents are completed and approved by Council we will run the procurement
process with you. We are open to our role from leading the process to providing technical
support to a Council lead. For similar processes we have also proactively contacted suppliers
active in the relevant market prior to document release to ensure that they are aware the
tender process is coming and maximise participation. We anticipate that the process will
include:
Publishing tender documents on TenderLink and/or GETS.
A briefing for contractors once Tender documents are released.
Responding to questions and clarifications during the tender process.
4
Tender Evaluation
Once tenders are submitted, we will support the evaluation process. As for the tender
process, we are open to our role, on previous projects this has ranged from leading the Tender
Evaluation Team, to providing technical support to the Council evaluation team.
The evaluation process is likely to involve:
Evaluation of tenders against compulsory criteria.
Detailed evaluation of compliant tenders.
A formal Tender Evaluation Team meeting to moderate individual team marking.
Seeking clarifications from compliant tenderers.
Interviews of shortlisted tenderers.
Drafted a Tender Evaluation Report.
5
Supporting Council making an informed decision
Once a preferred Tenderer has been selected we will support the Council team in confirming
the selection through Council. As noted above, the current expectation is that the pricing
provided by the Preferred Tender will be used to inform consultation with the community on
the proposed service change and costs in the 2020 Annual Plan process. This means the
Tender Evaluation outcomes and proposed service will need to be set out in papers to Council
Tonkin & Taylor Ltd
1 November 2019
Collections contract procurement
Job No: 1012703.0000
Hutt City Council
4
and the draft Annual Plan. We also see potential for a Council workshop on the proposed
service.
Following adoption of the Annual Plan, the scope of the new service will be confirmed and any
resulting changes in the tender price negotiated with the preferred supplier. As for the
preceding tasks we will support Council and can take a role leading or supporting this task as
required.
6
Pre-mobilisation
Once the contract scope and price have been confirmed we can support Council on finalising
the contract. This will be important to progress quickly to enable the preferred contractor to
order key plant and equipment (vehicles and containers). The lead time for some of these
items can be substantial (6-12 months).
For similar projects we have chaired and/or attended regular progress meetings during this
stage. This provides tracking of key critical path activities including:
Equipment order, manufacturing, delivery and commissioning.
Property database preparation and quality assurance.
Detailed roll out planning including staging.
Communications.
7
Contract Start
We would expect progress meetings to continue during roll out and for a period of time once
the new services are full implemented. In effect the progress meetings become standard
contract meetings as the focus moves from planning to roll out and day to day operations.
Programme
We have outlined our timing for Task 1 as part of defining the scope above. An indicative timeframe
for tasks 2 – 7 is outlined below. The timing to deliver Tasks 2-7 will be updated following production
of the procurement strategy and provided to Council.
We can start work as early as Monday 4th November, on receiving your instruction to proceed.
Task 1 - Completed by the end of November 2019.
Task 2 - Completed in early December 2019.
Task 3 - December 2019 to early February 2020.
Task 4 - Completed mid February 2020.
Task 5 - February to March 2020, Annual Plan process March – June 2020.
Task 6 - Allow at least 6 months to for equipment procurement.
Task 7 - Currently anticipated to be November 2020, anticipated staged roll out of new service
with approach to be confirmed through Procurement Strategy development.
Fees
As discussed with you, we will complete Task 1 (Procurement Strategy and S17A Review) for a lump
sum fee of $15,000 (excluding GST). We have provided an estimate of costs for Tasks 2 - 7 based on
our current understanding of scope. These estimates will be reviewed and confirmed once the
Procurement Strategy has been confirmed. We are happy to progress these tasks on an agreed lump
sum basis or time and expense with an agreed budget. Any work outside of the scope of work
Tonkin & Taylor Ltd
1 November 2019
Collections contract procurement
Job No: 1012703.0000
Hutt City Council
link to page 9 link to page 9 link to page 9 link to page 9 link to page 9
5
agreed with you above will be carried out on a time and expenses basis or for an additional agreed
lump sum. We will agree that fee with you before doing the additional work.
Description
Lump sum Fees
Estimate
(excluding GST)
(excluding GST)
1 Procurement Strategy and Section 17A Review
$15,000
2 Contract documents1
$15,000 - $25,000
3 Procurement proces
s1
$2,500 - $5,000
4 Evaluation of submitted tende
rs1
$15,000 - $25,000
5 Council decision suppo
rt1
$2,500 - $5,000
6 Pre-mobilisat
ion1
$0 - $5,000
7 Contract sta
rt1
$0 - $5,000
Total Indicative Budget Estimate (including Task 1)
$50,000 - $85,000
We will invoice monthly, on or after the first working day of the month, on a percentage complete
basis. If payment becomes overdue and we are unable to agree alternative payment terms with you,
we reserve the right to suspend work and to withhold deliverables. This will not apply in the case
where you have advised us that you have a genuine dispute with our invoice (or part of our invoice)
and you have paid any undisputed amounts.
Health & Safety
T+T is committed to providing and maintaining a safe and healthy working environment at all of our
places of work. In line with this commitment, and as required by health and safety legislation, we
will consult, cooperate and co-ordinate our activities with you and others who will be working on the
project. To assist us in this, please let us know if you have any specific health and safety planning and
implementation requirements which are relevant to our services (including known risks) so that we
can review these with you.
Terms and Conditions
We will carry out the work in accordance with our attached Conditions of Engagement. These terms
place certain limitations on our liability and, unless agreed otherwise, they will apply instead of any
terms and conditions in any purchase order or other confirming document that you may issue to us.
We provide our reports and other deliverables for your benefit only and they cannot be relied upon
by any third parties. However, if you want us to, we may allow a third party to rely on them after
signing an appropriate reliance statement with us (so that they acknowledge and accept the
limitations of our work and the terms and conditions of our engagement with you).
This offer is valid for 3 months from the date of this letter.
Closing remarks
We trust that this satisfactorily meets your needs. We look forward to receiving your instruction to
proceed and to working with you on this project. You can confirm your acceptance by returning the
attached signatory form. Alternatively, we will take your instruction to proceed as confirmation that
you accept this proposal.
Please contact Chris Purchas at [email address] or 027 536 0951 if you would like to
discuss anything about this project.
1 Indicative pricing – to be agreed following completion of the procurement strategy
Tonkin & Taylor Ltd
1 November 2019
Collections contract procurement
Job No: 1012703.0000
Hutt City Council
6
Yours sincerely
Ed Breese
Project Director
Attached:
1
Signatory page
2
ACENZ Short Form Agreement Feb 2019
1-Nov-19
t:\wellington\tt projects\1012703\contractual\hcc loe waste services procurement 1.1.docx
Tonkin & Taylor Ltd
1 November 2019
Collections contract procurement
Job No: 1012703.0000
Hutt City Council
Signatory form
T+T Ref:
1012703.0000
Date:
1 November 2019
Contract:
Collections contract procurement
Confirmation by Client: I/we acknowledge that I/we have read the proposal for the above contract
and the attached Conditions of Engagement, (including the Limitations of Liability), and I/we accept
those terms and authorise the above.
Client name:
Hutt City Council
Client Address: Private Bag 31-912
Lower Hutt
5040
Attention:
Jorn Scherzer
Signature:
Name:
Date:
Please provide the following information if different:
Client Name and Address
Invoicing Entity Name* and Address (if different to Client)
______________________________
______________________________
______________________________
______________________________
______________________________
______________________________
______________________________
______________________________
* Invoicing entity to also give the “Confirmation by Client” above by signing below
Signature:
______________________________________________
Name:
______________________________________________
Date:
______________________________________________
Please return one signed copy to Chris Purchas of Tonkin + Taylor at email
[email address] or to the address on the letterhead.
Tonkin & Taylor Ltd
1 November 2019
Collections contract procurement
Job No: 1012703.0000
Hutt City Council
SHORT FORM MODEL CONDITIONS OF ENGAGEMENT
1.
The Consultant shall perform the Services as described in the attached documents.
2.
The Client and the Consultant agree that where all or any of, the Services are acquired for the purposes of a business the provisions
of the Consumer Guarantees Act 1993 are excluded in relation to those Services. However, nothing in this Agreement shall restrict,
negate, modify or limit any of the Client’s rights under the Consumer Guarantees Act 1993 where the Services acquired are of a kind
ordinarily acquired for personal, domestic or household use or consumption and the Client is not acquiring the Services for the
purpose of a business.
3.
In providing the Services, the Consultant must use the degree of skill, care and diligence reasonably expected of a professional
consultant providing services similar to the Services.
4.
The Client shall provide to the Consultant, free of cost, as soon as practicable following any request for information, all information in
the Client’s power to obtain which may relate to the Services. The Consultant shall not, without the Client’s prior consent, use
information provided by the Client for purposes unrelated to the Services. In providing the information to the Consultant, the Client
shall ensure compliance with the Copyright Act 1994 and shall identify any proprietary rights that any other person may have in any
information provided.
5.
As soon as either Party becomes aware of anything that will materially affect the scope or timing of the Services, the Party must
notify the other Party in writing and where the Consultant considers a direction from the Client or any other circumstance is a
variation the Consultant shall notify the Client accordingly.
6.
The Client may order variations to the Services in writing or may request the Consultant to submit proposals for variations to the
Services.
7.
The Client shall pay the Consultant for the Services the fees and expenses at the times and in the manner set out in the attached
documents. Where this Agreement has been entered by an agent (or a person purporting to act as agent) on behalf of the Client, the
agent and Client shall be jointly and severally liable for payment of all fees and expenses due to the Consultant under this
Agreement.
8.
All amounts payable by the Client shall be due on the 20th of the month following the month of issue of each GST Invoice or at such
other timing as stated elsewhere in this Agreement. If the Client fails to make the payment that is due and payable and that default
continues for 14 days, the Consultant may provide written notice to the Client specifying the default and requiring payment within 7
days from the date of the notice. Unless payment has been made by the Client in full, the Consultant may suspend performance of
the Services any time after expiration of the notice period. The Consultant must promptly lift the suspension after the Client has
made the payment. Regardless of whether or not the Consultant suspends the performance of the Services in accordance with this
clause, the Consultant may charge interest on overdue amounts from the date payment falls due to the date of payment at the rate
of the Consultant’s overdraft rate plus 2% and in addition the costs of any actions taken by the Consultant to recover the debt.
9.
Where the nature of the Services is such that it is covered by the Construction Contracts Act 2002 (CCA) and the Consultant has
issued a payment claim in accordance with the CCA, the provisions of the CCA shall apply. In all other cases, if the Client, acting
reasonably, disputes an invoice, or part of an invoice, the Client must promptly give the reasons for withholding the disputed amount
and pay any undisputed amount in accordance with clause 8.
10. Where Services are carried out on a time charge basis, the Consultant may purchase such incidental goods and/or Services as are
reasonably required for the Consultant to perform the Services. The cost of obtaining such incidental goods and/or Services shall be
payable by the Client. The Consultant shall maintain records which clearly identify time and expenses incurred.
11. Where the Consultant breaches this Agreement, the Consultant is liable to the Client for reasonably foreseeable claims, damages,
liabilities, losses or expenses caused directly by the breach. The Consultant shall not be liable to the Client under this Agreement for
the Client’s indirect, consequential or special loss, or loss of profit, however arising, whether under contract, in tort or otherwise.
12. The maximum aggregate amount payable, whether in contract, tort or otherwise, in relation to claims, damages, liabilities, losses or
expenses, shall be five times the fee (exclusive of GST and disbursements) with a minimum of $100,000 and a maximum limit of
$NZ500,000.
13. Without limiting any defences a Party may have under the Limitation Act 2010, neither Party shall be considered liable for any loss or
damage resulting from any occurrence unless a claim is formally made on a Party within 6 years from completion of the Services.
14. The Consultant shall take out and maintain for the duration of the Services a policy of Professional Indemnity insurance for the
amount of liability under clause 12. The Consultant undertakes to use all reasonable endeavours to maintain a similar policy of
insurance for six years after the completion of the Services.
15. If either Party is found liable to the other (whether in contract, tort or otherwise), and the claiming Party and/or a Third Party has
contributed to the loss or damage, the liable Party shall only be liable to the proportional extent of its own contribution.
16. Intellectual property prepared or created by the Consultant in carrying out the Services, and provided to the Client as a deliverable,
(“New Intellectual Property”) shall be jointly owned by the Client and the Consultant. The Client and Consultant hereby grant to the
other an unrestricted royalty-free license in perpetuity to copy or use New Intellectual Property. The Clients’ rights in relation to this
New Intellectual Property are conditional upon the Client having paid all amounts due and owing to the Consultant in accordance
with clauses 7 and 8. Intellectual property owned by a Party prior to the commencement of this Agreement (Pre-existing Intellectual
Property) and intellectual property created by a Party independently of this Agreement remains the property of that Party. The
Consultant accepts no liability for the use of New Intellectual Property or Pre-existing Intellectual Property other than to the extent
reasonably required for the intended purposes.
17. The Consultant has not and will not assume any duty imposed on the Client pursuant to the Health and Safety at Work Act 2015
(“the Act”) in connection with the Agreement.
18. The Client may suspend all or part of the Services by notice to the Consultant who shall immediately make arrangements to stop the
Services and minimise further expenditure. The Client and the Consultant may (in the event the other Party is in material default that
has not been remedied within 14 days of receiving the other Party’s notice of breach) either suspend or terminate the Agreement by
notice to the other Party. If the suspension has not been lifted after 2 months the Consultant has the right to terminate the
Agreement and claim reasonable costs as a result of the suspension. Suspension or termination shall not prejudice or affect the
accrued rights or claims and liabilities of the Parties.
19. The Parties shall attempt in good faith to settle any dispute by mediation.
20. This Agreement is governed by the New Zealand law, the New Zealand courts have jurisdiction in respect of this Agreement, and all
amounts are payable in New Zealand dollars.
February 2019
Tonkin & Taylor Ltd
1 November 2019
Collections contract procurement
Job No: 1012703.0000
Hutt City Council
Collections contract – procurement
Why T+T
• Knowledge + expertise
o
Multiple contracts, long term relationships
o
Benchmarking
o
Service Delivery (S17A) Review
o
Wellington regional waste market
o
National waste markets and context
• Tailored to Council requirements
• Managing risk
What do we offer
Detailed waste sector knowledge (Wellington, NZ and international)
+
Recycling and refuse collections procurement track record
+
Knowledge of your council processes
Our approach
1. Develop a Procurement Strategy
2. Draft Contract Documents (in collaboration with your legal team)
3. Run or support the procurement process
o
Briefings
o
Clarification
o
Evaluation process
4. Support the Council decision making process
Indicative timeline
Nov
Dec
Jan
Feb
Mar
Apr
May
Jun
Jul
Aug
Sept
Oct
Procurement strategy
Contract documents
Tender Period
Evaluation
Council decision
Pre-mobilisation
Contract Start
We will …
Take a moment to plan – Procurement Strategy
Context
o
Council objectives
o
Contractors in or entering the Wellington market – who is likely to bid
o
Markets for recycling commodities
o
National picture – policy, other tender processes, equipment manufacture lead time
Decisions on approach
o
Contract form (incl legal advisors)
o
Non-price criteria and weighting
o
Bundled vs. unbundled services
o
Risk e.g. markets for recyclables
o
Evaluation approach including considering disparate options and innovations
Then we will …
Work with you to deliver a robust, defensible tender process
o
Contract form (incl early engagement with legal advisors)
o
Clear Scope of work that anticipates uncertainty
o
Driving
quality
o
Enabling
innovation
o
Focussed on securing a
long term relationship
Collaborate with you throughout the process
o
Local waste contract specialist (briefings, clarifications, TET)
o
Ensure you are informed about what is happening elsewhere (NZ, off shore)
o
Identify and propose approaches to manage contract risk
This will deliver …
Clear information for Council decision makers
A scope and contract that is fair for Council and the selected contractor(s)
Contractors that are committed to
o
High quality service delivery
o
Bring
innovation to the table – through the tender process and through the life of the contract
o
Proactively managing risk with Council
o
A
long term partnership to deliver a great service to the community
Indicative costs
Indicative cost
Procurement strategy
$5,000 - $10,000
Contract documents
$15,000 - $25,000
Tender Period
$2,500 - $5,000
Evaluation
$15,000 - $25,000
Council decision
$2,500 - $5,000
Pre-mobilisation
$0 - $5,000
Contract Start
$0 - $5,000
TOTAL
$40,000 - $80,000
Key points
Involve legal advisors early
Good ‘design*’ up front delivers a better process and outcomes
Evaluation criteria need careful designed to avoid price being the only deciding factor
A good relationship is worth the investment
Risk is difficult to transfer
* Procurement Strategy
Document Outline
- assessment template - kerbside procurement.pdf
