Brimbank Council Meeting No. 636 - 20 August 2024

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12.13

Contract No. 25/3522 - Supply, Delivery And Lease Of Nine (9) Twenty-Four (24) Cubic Metre Side Loading Waste Compactors And Four (4) Twenty-Four (24) Cubic Metre Side Loading Green Waste Compactors

12.13

Contract No. 25/3522 - Supply, Delivery and Lease of

Nine (9) Twenty-Four (24) Cubic Metre Side Loading

Waste Compactors and four (4) Twenty-Four (24) Cubic

Metre Side Loading Green Waste Compactors

Directorate

Infrastructure and City Services

Director

Chris Leivers

Manager

Tom Razmovski

Attachment(s)

1. CONFIDENTIAL REDACTED - Tender Evaluation Report

[

12.13.1

- 16 pages]

Purpose

For Council to consider the award of Contract No. 25/3522 – Supply, Delivery and Lease

of Nine (9) Twenty Four (24) Cubic Metre Waste Side Loading Compactors and Four (4)

Twenty Four (24) Cubic Metre FOGO Side Loading Compactors.

Officer Recommendation

That Council:

a. Awards Contract No. 25/3522A – Supply and Delivery of five (5) Waste

Side Loading compactors to CMV Truck and Bus and enters into a lease

agreement through De Lage Landen Pty Limited at an estimated amount

of $3,860,932.74 (GST inclusive) over a 72-month period.

b. Awards Contract No. 25/3522A – Supply and Delivery of four (4) FOGO

Side Loading Compactors to CMV Truck and Bus and enters into a lease

agreement through De Lage Landen Pty Limited at an estimated amount

of $3,116,016.20 (GST inclusive) over a 72-month period.

c. Awards Contract 25/3522B - Supply and Delivery of four (4) Waste Side

Loading Compactors to STG Sales Pty Ltd and enters into a lease

agreement through De Lage Landen Pty Limited at an estimate amount of

$3,141,034.33 (GST inclusive) over a 72-month period.

d. Notes the above contract sum is within the annual operating budget

allocation for the project of $1,533,027.77 (excluding GST). The funding

required to fulfill the contract sum over the recommended term is

captured in the assumptions informing Councils Financial Plan, and

future annual allocations will need to be accommodated in future annual

budgets.

Background

Council currently operates twenty-five (25) side loading compactors in total (15) Waste

Compactors, six (6) Recycling Compactors and four (4) Food and Garden Organics

(FOGO) Compactors. It is envisaged Council will continue with its current number and

type of side loading compactors.

All of Council’s side loading compactors are currently leased. These nine (9) waste and

four (4) FOGO side loading compactors, total of thirteen (13), will replace the current

compactors existing lease which is due to expire in December 2025 and May 2026. By

this time the units will not be cost effective to continue in service due to their age, hours

worked and extensive maintenance and repair costs.

Brimbank Council Meeting No. 636 - 20 August 2024

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Funds for this contract will be through Councils 2025/2026 Annual Operating Budget and

referred to future annual budget process for consideration.

Matters for Consideration

Analysis

A public tender process was conducted in June 2024. At the close of tenders four

submissions were received from: Penske Australia P/L, STG Sales Pty Ltd, CMV Truck &

Bus and Superior Pak Pty Ltd. All tenderers submitted leasing costs through De Lage

Landen Pty Limited.

Superior Pak Pty Ltd did not complete the Tender Schedules and Penske Australia P/L did

not comply with Council’s specifications and therefore both were deemed non-compliant.

Leasing arrangements were included as part of the tender process. All companies

tendered with leasing arrangements through De Lage Landen Pty Limited.

The submissions were initially assessed against the mandatory criteria to ensure

conformance.

The Tender Evaluation Panel has rated the following as preferred tenderers:

1. CMV Truck & Bus for the supply of Five (5) Volvo FE Cab Chassis with Superior

Pak Waste Side Loading Compactors for the tendered amount of $3,860,932.74

(GST inclusive)

2. CMV Truck & Bus for the supply of Four (4) Volvo FE Cab Chassis with Superior

Pak FOGO Side Loading Compactors for the tendered amount of $3,141,034.33

(GST inclusive) over a 72-month period.

3. STG Sales Pty Ltd for the supply of Four (4) Volvo FE Cab Chassis with Bandit

Waste Side Loading Compactors for the tendered amount of $3,141,034.33

(GST inclusive) over a 72-month period.

4. De Lage Landen Pty Limited for the Lease of Thirteen (13) Compactors.

Tender Evaluation Report is provided in

Confidential Attachment 1

to this report.

Implementation

Subject to Council’s award of Contract, delivery of the twelve compactors is expected

between December 2025 and May 2026.

Community Engagement

As the provisions of this Contract relate to an internal support service, community

engagement is not required.

Collaboration

Collaboration was undertaken with Council’s internal Waste Operational Staff, Co

ordinator and Service Unit Manager and cab chassis suppliers and compactor body

manufacturers and based on these consultations, it has been determined that replacing

the thirteen (13) compactors is more cost effective due to the age and the increased

maintenance and repair cost associated with the current compactors.

Resource And Risk Implications

The contract sum is within the annual operating budget allocation for the project of

$1,533,027.77 million (excluding GST). The funding required to fulfill the contract sum

Brimbank Council Meeting No. 636 - 20 August 2024

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over the recommended term is captured in the assumptions informing Councils Financial

Plan, and future annual allocations will need to be accommodated in future annual

budgets.

Community:

potential impact on community, including public trust and customer

service impact

• Yes - The provision of side loading waste compactors is an essential part of the suite of

Council’s waste and FOGO collection services provided to residential properties.

Environmental:

impacts on environmental sustainability, including water/waste

management, climate change, and contaminated land

• Yes - The provision of these side loading waste compactors is an integral part of the

suite of Council’s waste and FOGO collection services.

Financial:

significant financial impacts

• Yes - Budget expenditure is from Council funding; the Operational budget is subject to

Council approval. Refer to

Confidential Attachment 1

for financial impacts.

Regulatory:

legal, legislative or regulatory implications including the rights/obligations

of stakeholders

• Yes - Waste and FOGO collection services for residential properties are an essential

service provided by Local Government.

Safety

: health, safety or duty of care impacts

• Yes - The provision of these new side loading waste compactors reduces the risks

associated with increased maintenance and repairs of the existing side loading waste

compactors and provides a greater duty of care for waste drivers.

Legislation/Council Plan/Policy Context

This report supports the Council Plan 2021-2025 strategic direction and objective of:

4. Leadership and Governance - A high performing organisation that enacts the

vision and decisions of Council through the delivery of quality and innovative

services - A fairer place for all

• High Performing and Accountable - Our workforce strive to enhance services and

liveability for the Brimbank community.

This report complies with the

and Council’s

Procurement Policy.

Council officers contributing to the preparation and approval of this report, have no

conflicts of interests to declare.