Contract Management Template for Cleaning

Document Sample
Contract Management Template for Cleaning Powered By Docstoc
					AGENDA - ORDINARY MEETING OF COUNCIL – 9 MARCH 2010



ORDINARY MEETING OF COUNCIL
9 MARCH 2010
4.                                             SOUTH MELBOURNE MARKET
                                               CLEANING AND WASTE MANAGEMENT
                                               CONTRACT
LOCATION/ADDRESS:                              CECIL STREET, SOUTH MELBOURNE
EXECUTIVE DIRECTOR:                            JOHN HICKS, GENERAL MANAGER,
                                               CITY & INFRASTRUCTURE SERVICES
PREPARED BY:                                   CLAUDE BAXTER, MANAGER, SOUTH
                                               MELBOURNE MARKET
FILE NO.:                                      CONTRACT 1444
ATTACHMENTS:                                   NIL



1.     EXECUTIVE SUMMARY

       1.1   The cleaning and waste management contract for South Melbourne Market
             expires on 31 October 2010. This contract has been identified as a major
             contract and as such, council’s approval to advertise the tender is required.

       1.2   This report seeks council approval to commence the tendering process
             through a public advertisement.




2.     RECOMMENDATION

       That Council:

       2.1   Approves the advertising of a public tender for a contract for cleaning and
             waste services at the South Melbourne Market.

3.    BACKGROUND AND CONTEXT

      3.1    The cleaning and waste management contract for South Melbourne Market
             (SMM) was awarded to Cleanevent by Council in September 2005 following a
             public tender process. The contract was for three years from November 2005
             and included two one-year extensions. These extensions will expire 31
             October 2010.

      3.2    The cleaning at the SMM has improved significantly over the past 12 to 18
             months as a result of closer contract management and a partnering approach
             with the contractor.




                                                                                           27
AGENDA - ORDINARY MEETING OF COUNCIL – 9 MARCH 2010

     3.3    The cleaning contract includes different forms of service in comparison to
            council’s other building assets. It includes forklift operations, heavy cleaning,
            waste management and waste removal.

     3.4    Since the contract specifications were last developed in 2005 there have
            been a number of changes in practice:

            3.4.1   The SMM has reduced its water use through the use of two high
                    pressure low water use washers.

            3.4.2   The Cecil Street precinct consisting of food service stalls and
                    additional toilets operating during and outside of Market hours
                    requires additional cleaning outside the current contract scope.

            3.4.3   All urinals in the Market have been converted to waterless system
                    requiring more frequent cleaning to maintain acceptable standards in
                    a retail environment.

            3.4.4   Increase in waste volumes from quantities estimated in current
                    contract.

      3.5   The SMM has engaged a consultant with extensive public sector cleaning
            contract experience to advise on the review of specifications and
            development of benchmarks to improve the contract management process
            and procedures.

      3.6   It is expected that a new contract for cleaning and waste management at the
            market will cost significantly more than the existing contract. This is primarily
            due to;
            •   Increase in shopper numbers resulting in increased volumes of produce
                and waste.
            •   Increased labour costs - more detailed cleaning is required, additional
                pressure washer cleaning and support for the many events we have
                added (Night Market, Saturday night music). We also require the
                contractor to provide a supervisor to be rostered one weekend day each
                week.
            •   Cleaning by use of two high pressure low water use washers needs to be
                anticipated and included in the specification.
            •   Food exhaust ducts require cleaning quarterly (by regulation). This has
                not previously been included in the specifications.
            •   Grease trap volumes have increased (partially due to increases in deli
                aisle waste but also because of extra Cecil St food production), increasing
                food trap cleaning costs.
            •   Increased attention to the Cecil Street precinct – current outside cleaning
                is inadequate. Bins need emptying more frequently to reduce street litter.
            •   The perimeter of the market requires cleaning (footpaths). This has not
                been included in specifications before.
            •   Urinals in the Market have been converted to waterless system requiring
                more frequent cleaning to maintain acceptable standards in a retail
                environment.

      3.7   The new contract will be for five years.


                                                                                           28
AGENDA - ORDINARY MEETING OF COUNCIL – 9 MARCH 2010

4.   CONSULTATION AND STAKEHOLDERS

      4.1   The Market has engaged a consultant with significant public sector cleaning
            contract experience to assist in developing contract specifications and to
            advise the tender evaluation panel.

      4.2   The Market is working with the Infrastructure Services Department to analyse
            current waste removal processes.

4.   DISCUSSION

     5.1    OPTIONS

            5.1.1   The recommended option is to approve the commencement of a
                    tendering process for cleaning and waste services at South Melbourne
                    Market.

            5.1.2   Council could choose to add cleaning of the South Melbourne Market
                    to council’s existing cleaning contract as a variation. This option was
                    previously explored and it was decided that the cleaning and waste
                    management required at the market was sufficiently different and
                    required a separate contract.

     5.2    ALIGNMENT TO COUNCIL PLAN

            5.2.1   This is consistent with the Council Plan 2009 – 2013.

            Review and continuously improve our service delivery to balance customer
            expectation, value for service and Council’s capacity to deliver – 1.3.2.

            Ensure a strong commitment to ethical behaviour and a culture of compliance
            with legislation – 1.4.2

            Further advance the move from waste management to resource recovery –
            2.3.5

            Ensure that South Melbourne Market is positioned as Melbourne’s premier
            community market – 4.2.5




     5.3    POLICY IMPLICATIONS PLAN

            5.3.1   Council’s tendering and contracts policy requires that the advertising
                    of major contracts should be approved by council. Major contracts are
                    identified as being a long term contract (generally over 3 years) and
                    where expenditure is estimated to be over $500,000.




                                                                                        29
AGENDA - ORDINARY MEETING OF COUNCIL – 9 MARCH 2010

     5.4   FINANCE / RESOURCE IMPLICATIONS

           5.4.1   SMM currently budgets $620,000 per annum for cleaning and waste
                   removal. These costs have been initially estimated to increase by up
                   to 20% in the first year and an additional 3% per annum for the
                   following 4 years. Based on these estimates the projected five year
                   cost of a new contract could be as high as $4.0m.

     5.5   LEGAL & RISK IMPLICATIONS

           5.5.1   This service will be publicly tendered consistent with councils
                   Tendering and Contracts Policy.

6.   IMPLEMENTATION STRATEGY

     6.1   TIMELINE

           6.1.1   Proposed Tender Advertising Date - 3 April 2010.

           6.1.2   Tender Closing Date - 30 April 2010.

           6.1.3   TEP recommendation to council to award Tender - 14 June 2010.

           6.1.4   Notification of successful / unsuccessful tenderers - July 2010.

           6.1.5   Commencement of contract - 1 November 2010.

     6.2   COMMUNICATION

           6.2.1   Notification of successful / unsuccessful tenderers - July 2010.

           6.2.2   Notification to stallholders - July 2010.




7.   OFFICER DIRECT OR INDIRECT INTEREST

     7.1   No officers involved in the preparation of this report have any direct or indirect
           interest in the matter.




                                                                                         30

				
DOCUMENT INFO
Description: Contract Management Template for Cleaning document sample