Council Minutes 6th September 2010
40.4 Contract 14.21.022 - Construction Of Four Concrete Tanks For The Strathalbyn Wwtp (Confidential)
Moved Cr Rusby, seconded Cr Gartrell that pursuant to Sections 90 (2) and (3) (k) of the Local Government Act 1999, the Council orders that the public be excluded from the meeting with the exception of the Chief Executive, Governance Officer, General Managers and the officer responsible for the report, on the basis that the Council considers it necessary and appropriate to act in a manner closed to the public in order to receive, discuss and consider information by way of a report and associated documents in relation to agenda item 40.4 – Contract 14.21.022 – Construction of Four Concrete Tanks for the Strathalbyn WWTP and the Council is satisfied that the principle that the meeting should be conducted in a place open to the public is outweighed in relation to the matter because receiving, considering and discussing the report on 40.4 – Contract 14.21.022 – Construction of Four Concrete Tanks for the Strathalbyn WWTP and associated documentation contains/involves:
k. tenders for the supply of goods, the provision of services or the carrying out of works
File Ref: 9.24.1
Officer (full name): Simon Grenfell
Officers Consulted (full name): GMIP&D – Neville Styan, CWMS Coordinator – Craig Ostigh
Strategic Plan Outcome Nbr: 3.3 – Safe, effective and innovative management of waste water and storm water
Budget Allocation: $1,965,110 Budget Spent to Date: $7068.00
Chart of Account: Job Number: 814287
ESD Impact/Benefit:-
* Environmental: Improved management of waste water and protection of the environment
* Social: Improved social benefit through the reuse of waste water on community infrastructure
* Economic: Significant capital investment in community infrastructure
REPORT
Council have programmed the construction of the Strathalbyn Waste Water Treatment Plant this financial year. As part of the project Council have called tenders for the construction and backfilling of four concrete tanks in accordance with approved plans WAD100405.
…cont'd
40.4 Contract 14.21.022 - Construction Of Four Concrete Tanks For The Strathalbyn WWTP (Confidential)
(continued)
The tank sizes are:
§ 2 reactor tanks 17.2m diameter, 4.7m deep
§ 1 balance tank 15.1m diameter, 4.1m deep with a roof.
§ 1 waste activated sludge tank, 6.5m diameter, 6m deep.
As part of the initial budget for the project $700,000 was budgeted for the construction of the tanks. This was based on the costs of the tanks for the Goolwa Treatment Plant.
Tenders were called and advertised via Tenders SA on the 22nd July 2010. Numerous enquiries were received from a variety of tank construction companies. Tenders closed on the 12th August 2010 with six companies submitting conforming tenders.
The tender specification called for the design and construction of the four concrete tanks. The tanks have to be design and constructed in accordance with Australian Standards AS 3735-2001 and as part of the specification the successful tenderer has to submit their engineered design drawings for approval within 2 weeks of the contract being awarded.
Upon closing the following tenders were received.
Tender / Company / Tender Price (ex GST)1 / Fulton Hogan Pty Ltd / $808,856.81
2 / Civil Mining Solutions Pty Ltd / $1,323,336.38
3 / Blu-Built Pty Ltd / $984,744.00
4 / Diverse Civil & Commercial Projects Pty Ltd / $1,029,192.00
5 / Almar Construction Pty Ltd / $1,422,585.00
6 / Earthscapes of Adelaide Pty Ltd / $1,162,735.00
For the purpose of tender assessment the three lowest tenders were assessed on the following criteria:
§ Previous Experience
§ OHS&W Management Systems,
§ Financial Capacity
§ Availability to undertake the work within the time frames.
§ Proposed Methodology
1. Fulton Hogan Pty Ltd.
…cont'd
40.4 Contract 14.21.022 - Construction Of Four Concrete Tanks For The Strathalbyn WWTP (Confidential)
(continued)
Fulton Hogan are a multi-national civil construction company who have established offices in South Australia over the past three years. They have experience in all facets of civil construction including road construction, water infrastructure and treatment plants.
They have specified that their sub-contractor for the construction of the concrete tanks is Adelaide Hills Concrete Tanks. Adelaide Hills Concrete Tanks have constructed concrete tanks for over 14 treatment plants across South Australia in the last two years including the tanks at the Goolwa Treatment Plant.
Fulton Hogan have specified a tank wall thickness of 190mm. This is the same as the tanks at the Goolwa Treatment plant. We have not had any issues with the tanks at the Goolwa Treatment Plant.
Fulton Hogan have submitted OHS&W Management Plans and Procedures for managing OHS&W that meet the requirements. Fulton Hogan are a multinational company that has an annual turnover of $651,000,000 in 2009 and profit of $18m.
Fulton Hogan have presented a programme that sees them completing the work in the 16 weeks allowed within the contract.
2. Blu-Built Pty Ltd
Blu-Built is a South Australian privately owned commercial and industrial construction company that was established in 2008. Blu-Built has experience in a range of civil construction projects namely the Myponga Dam Upgrade, Daws Road Recycling centre and Prescott Primary School Construction. All of theses projects included detailed and complex concrete constructions. Blu-Built staff also have experience in the construction of treatment plants and other water infrastructure.
Blu-Built have specified wall thickness of 285mm for their tanks and have also specified a 5.75m square Waste Activated Sludge tank. While this would serve the same purpose as a round tank it could create some maintenance issues in the long run with the build up of sludge in the corners.
Blu-Built have submitted sample OHS&W policies and procedures with documents for the project to be created once the tender has been awarded.
Blu-Built are a privately owned company and have stated that they have the capital required to undertake the contract but have not provided any documented evidence to support this. They have also provided a comprehensive methodology of how they would undertake the project that would see them complete the project in 14 weeks.
…cont'd
40.4 Contract 14.21.022 - Construction Of Four Concrete Tanks For The Strathalbyn WWTP (Confidential)
(continued)
3. Diverse Civil & Commercial Projects Pty Ltd
Diverse Civil and Commercial Projects (DCCP) have combined with Samson Tanks to tender for the project. DCCP is a civil contracting company specialising in the construction of Sewer and Waste Water infrastructure, Stormwater Drainage Vacuum Sewer Installations, Environmental and Wastewater systems.
DCCP have specified within their tender that they will supply tanks of the following sizes:
§ 2 reactor tanks 17.2m diameter, 4.8m deep
§ 1 balance tank 15.5m diameter, 3.9m deep with a roof.
§ 1 waste activated sludge tank, 6.5m diameter, 6m deep.
All tank walls will be 250mm thick.
While these dimensions vary a small amount from the design drawings they are within tolerances allowed by the treatment plant design and will have no impact on the performance of the plant.
DCCP have submitted sample OHS&W policies and procedures with documents for the project to be created once the tender has been awarded. DCCP have also demonstrated through projects of a similar size that they have the financial capacity to deliver such a project. DCCP also submitted a methodology that states that they would have the construction of the tanks completed with the 16 weeks timeframe required by the specification.
Summary
All companies have demonstrated an ability to deliver the projects on time and within the specification. Fulton Hogan’s nominated sub-contractor Adelaide Hills Tanks are one of the most experienced concrete tank builders in South Australia. Given this and the fact that they are the lowest tender by a considerable amount it is recommended that the tender be awarded to Fulton Hogan Pty Ltd.
This tender price is still within the contingencies allowed for the project.
ACF10387 Moved Cr Woolford seconded Cr Rusby:
1. That Council award the Tender for the Construction of Four Concrete Tanks at the Strathalbyn WWTP to Fulton Hogan Pty Ltd at a cost of $808,856.81 (ex GST).
…cont'd
40.4 Contract 14.21.022 - Construction Of Four Concrete Tanks For The Strathalbyn Wwtp (Confidential)
(continued)
2. That Council authorise the Mayor and Chief Executive to sign and seal any documentation relating to this contract.
3. That pursuant to Sections 91(7) and (9) of the Local Government Act 1999, the Council orders that the minutes of the Council meeting being held on 6 September 2010 in relation to Confidential item number 40.4 and titled 'Contract 14.21.022 - Construction of Four Concrete Tanks for the Strathalbyn WWTP' and the information by way of a report and any associated attachments thereto remain confidential and are not available for public inspection (except for the purposes of advising the General Manager of Engineering Services, General Manager of Infrastructure, Planning & Design and the CWMS Coordinator) for a period of twelve (12) months from the date of this meeting and that this order be reviewed in twelve (12) months time.
CARRIED