CITY OF STIRLING

MINUTES

POLICY, CORPORATE PLANNING, BUDGET AND FINANCE COMMITTEE MEETING
19 NOVEMBER 2002

ITEM SUBJECT / LOCATION / NAME PAGE

HUMAN RESOURCES

Nil.

LIBRARIES, ARTS AND CULTURE

Nil.

CALL FOR REPORTS

* - Indicates Separate Attachments submitted with Agenda.

# - Item requiring special Council attention.

@ - Indicates Councillor Interest.
MINUTES OF THE POLICY, CORPORATE PLANNING, BUDGET AND FINANCE COMMITTEE HELD IN THE PARMELIA ROOM, CIVIC PLACE, STIRLING ON TUESDAY 19 NOVEMBER 2002

Present:

Chairman

Councillor D Boothman

 

Mayor

Councillor D C Vallelonga JP

 

Members

Councillors T W Clarey, B R Ham, S Popovski, T J Tyzack and R M Willox JP

 

Observers

Councillors J M Camilleri OAM JP, J Copley JP, R J Daniel, T E Pickard, P L Rose JP, and A A Spagnolo JP

 

Staff

Chief Executive Officer - L Delahaunty, Deputy Chief Executive Officer - R A Constantine, Executive Manager Corporate and Customer Services - C Watts, Executive Manager Community Development - T Holland, Manager Client Services - D Simmons, Manager Information Technology - G Jamison, Communications Manager - P Beard, Manager Community Safety - L Crouch, Acting Manager Recreation Services - J McNeilly, Beach Services Co-ordinator - J Snook and Corporate Support Officer - N Robinson

 

Public

2

 

Press

Nil

DECLARATION OF OPENING OF MEETING

The Chairman declared the Policy, Corporate Planning, Budget And Finance Committee of 19 November 2002 open at 7.05pm.

APOLOGIES

Nil.

MINUTES

Moved Councillor Vallelonga, seconded Councillor Popovski

The Minutes of the Meeting of 22 October 2002 be confirmed, and signed by the Chairman as a true and correct record of proceedings.

The motion was put and declared CARRIED.

ITEMS BEHIND CLOSED DOORS

Nil

DISCLOSURE OF INTERESTS

Councillor Willox disclosed an interest affecting impartiality in Item A6 as he is Chairman of the Australia Day Council (WA).

Moved Councillor Vallelonga, seconded Councillor Popovski

That Items A2 and A5 be brought forward as the first items of business to be discussed.

The motion was put and declared CARRIED.

Item TE1 was considered after Item A5 and normal agenda order resumed.

TENDERS

TE1 TENDER For The Supply And Delivery Of Stationery, Office Supplies and associated products

REPORT Deputy Chief Executive Officer - 6 November 2002

Moved Councillor Vallelonga, seconded Councillor Ham that

RECOMMENDATIONS TO COMMITTEE

REPORT PURPOSE

To report on the results from public invitation to tender and the evaluation of tenders submitted for the Supply and Delivery of Stationery, Office Supplies and Associated Products for a period of 2 years within the City of Stirling, Tender Schedule No 2.7.1.31.2002/03 - Local Government (Functions and General) Regulations Part 4 (18).

RELEVANT DOCUMENTS

Attachment 1: Schedule of Tenders Received Appendix A.
Attachment 2: Evaluation Matrix Appendix B. PF_2002_1119_AT_TE1.pdf

BACKGROUND

The Chief Executive Officer authorised tenders to be invited on 11 September 2002 for the Supply and Delivery of Stationery, Office Supplies and Associated Products for a period of two (2) years.

Details

That expenditures be debited to end use activity and account numbers at the time an order is placed.

· Tenders were advertised inviting offers
from the public on: Saturday 14 September 2002
· Tenders closed at 11.00am on: Tuesday 3 October 2002
· Employees present were: M Bingham, N Robinson and T Zarb
· Number of tenders received: Eight (8)

Contract

· Commencement 1 December 2002
· Completion 30 November 2004
· Estimated Value of Contract $206,000.00
· Price CDM Corporate Express - Fixed for first
12 months, thereafter subject to review for the remaining 12 months.
National 1 Ltd - Fixed for first 12 months, thereafter subject to review for the remaining 12 month period except for copy paper which is subject to 3 monthly reviews.

The objective of the Evaluation Panel is to establish conformity with the Conditions for Tendering of the eight (8) tenders listed in Appendix A and to select suitably qualified and experienced contractors to Supply and Deliver Stationery, Office Supplies and Associated Products within City of Stirling.

All eight (8) tenders were assessed as being conforming. Tenders received were assessed for awarding a contract for a period of 2 years, in accordance with Council's Best Value for Money Policy and complying with the Australian Competition Policies.

In order to obtain the broadest possible comparison base, each of the tenders was evaluated against the tender requirement and was, in turn, graded in the evaluation matrix attached (see Appendix B).

The evaluation matrix allows for the grading of each tender against the selection criteria.

Tenders were evaluated with a Matrix system using information submitted by the tenderer addressing the selection criteria as listed in the tender documentation.

The Paper Company of Australia scored 127 points.

The Paper Company's matrix score was the lowest of the tenderers and none of the prices submitted was competitive. For this reason, their tender was not considered further in the evaluation process.

Fuji Xerox Australia Pty Ltd. Scored 153 points

Fuji Xerox's matrix score ranked 6th with only one item being competitively priced. For this reason, their tender was not considered further in the evaluation process.

CDM Office Supplies scored 277 points.

CDM's matrix score was the 2nd best score with 53 items being competitively priced.
Notification was received after closing of the tender that CDM and Corporate Express would be merging as of 1 November 2002. Initially they would commence trading as CDM Corporate Express and then as Corporate Express.

The newly merged company of CDM and Corporate Express has assured the City of Stirling that it would honour whichever was the lowest price of either company's tender except for CDM's White Copy Paper price of $4.40 tax inclusive Stock No 290152.

CDM Corporate Express' tender represents a total of 158 lowest priced items at an estimated annual expenditure of $65,000. Their tendered rates are fixed for the first 12 months then subject to a review for the remaining 12 months of the contract.

It is recommended that CDM's tender be accepted.

Challenge Office Supplies scored 267 points.

Although the matrix score of Challenge Office Supplies ranked 3rd best, their tender was not competitive having submitted prices with 1 item being competitively priced.

In spite of their prices being fixed for the duration of the contract, their estimated annual expenditure of $196,700 is well above the CDM Corporate Express annual tender, which is estimated at $114,000. Even if an estimated CPI increase of 3.5% over the next 12 months was applied to CDM's offer, their tender would still remain competitive. For this reason, Challenge Office Supplies' tender is not beneficial to the City and therefore, is not recommended for acceptance.

National 1 Limited scored 242 points.

National's matrix score was the 5th best score with 58 items being competitively priced.

These items represent an annual estimated expenditure of $35,600 to the City.

Tendered rates are fixed for the first 12 months then subject to a review for the remaining 12 months of the contract except for copy paper that is fixed for the 1st three months then subject to reviews due to the volatility of world pulp prices.

The tendered price per ream of copy paper by National 1 is $4.68 tax inclusive and is extremely competitive when compared with the price per ream submitted by CDM Corporate Express, which is $5.12 tax inclusive (Note: the pre-merger price of $4.40 tendered by CDM Office Supplies for copy paper has been withdrawn).

It is recommended that National 1's tender be accepted, including their offer for copy paper.

Laser Tech scored 135 points.

Laser Tech's matrix score was ranked 7th overall of the tenderers and none of the prices submitted was competitive. For this reason, their tender was not considered further in the evaluation process.

Corporate Express scored 292 points.

Corporate Express' matrix score was the best score with 113 items being competitively priced.

The majority of the printer cartridges tendered were remanufactured and not considered suitable.

Notification was received after closing of the tender that CDM and Corporate Express would be merging effectively as of 1 November 2002. Initially they would commence trading as CDM Corporate Express and ultimately Corporate Express.

CDM Corporate Express' tender represent a total of 158 lowest priced items at an estimated annual expenditure of $65,000.

Tendered rates are fixed for the first 12 months then subject to a review for the remaining 12 months of the contract.

It is recommended that Corporate Express' tender be accepted.

Boise Cascade Office Products scored 251 points.

Boise Cascade's matrix score ranked 4th with 41 items being competitively priced.

These items represent an estimated annual expenditure of $11,800.00.
If the 41 items were purchased from CDM Corporate Express and National 1 instead, the estimated additional cost to the City would be $660.00 per annum.

Boise Cascade Office Products' tender is not recommended for acceptance by the City as the $660.00 estimated annual savings is not sufficient to offset the contract establishment cost and on-going administration fees therefore not offering value for money to the City.

Tender Evaluation Panel

The tender evaluation panel comprised of:

Summary

Total Estimated Annual Expenditure of stock selecting CDM Corporate Express and National 1 Ltd, as Suppliers would be $112,720.00.

· CDM Corporate Express $73,460 (CDM $59,490; Corporate Express $13,970)
· National 1 Ltd $39,260

CDM Corporate Express and National 1 Limited, the recommended tenderers, are generally known to the evaluation panel as having the capacity to provide the level of service described in the Specification. A check with referees of the recommended tenderers has indicated suitability as suppliers to the City of Stirling.

Upon considering the results generated by the application of the selection criteria matrix, the submissions by CDM Corporate Express and National 1 Limited are preferred, providing the City of Stirling with the best price for services rendered.

COMMENT

The evaluation panel recommends that Contracts for the Supply and Delivery of Stationery, Office Supplies and Associated Products be awarded to CDM Corporate Express and National 1 Limited by the Council at rates listed in Appendix A.

FINANCE

Items F1 to F3 were moved `en bloc'.