From:
Alice Grace
To:
Jörn Scherzer
Cc:
Dan Bonifant
Subject:
Indicative proposal for waste services procurement
Date:
Tuesday, 29 October 2019 3:01:40 PM
Attachments:
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Hi Jörn
Thank you for taking the time to meet with Daniel and I last week. Based upon our discussions,
we have provided details of a possible procurement process as well as indicative costs and
programme for a consultant to support your team in procuring the Hutt City Council (HCC)
kerbside collection services. As an option this could also include the landfill management
contract. This is not a full proposal for procurement support, rather an indication of the process,
programme and costs to help HCC with planning for their upcoming procurement processes. We
are more than happy to provide a more detailed proposal on request.
Our experience
Morrison Low are New Zealand’s leading council waste procurement specialists, supporting
approximately 80% of councils with their procurement processes. We are currently working with
Tauranga City Council and Western Bay of Plenty District Council, Auckland Council, Napier City
Council and Hastings District Council, and Timaru District Council, Waimate District Council and
Mackenzie District Council.
Some of our recent, waste procurement projects (include those for our current clients) include:
• Tauranga City Council and Western Bay of Plenty District Council: collections and
facilities
• Timaru District Council, Waimate District Council and Mackenzie District Council:
collections and facilities, including landfill management
• Waimakariri District Council: collections and facilities
• Queenstown Lakes District Council: collections and facilities
• Napier City Council and Hastings District Council: collections
• Taman District Council and Nelson City Council: joint landfill management
• Wairoa District Council: collections and facilities, including landfill management
• Waipa District Council: recycling collections
• Tasman District Council: collections and facilities
• Auckland Council: collections and facilities
• Whakatane District Council, Rotorua Lakes Council and Kawerau District Council:
collections and facilities, including landfill management
• New Plymouth, South Taranaki and Stratford District Councils: collections and
facilities, including landfill development
• Central Otago District Council: collections and facilities
• Dunedin City Council: landfill management
We are also very familiar with HCC’s waste services, having recently completed a project with
you for three business cases covering your kerbside collections, resource recovery centres and
hazardous waste management.
Waste services included in the procurement
HCC’s current waste services include:
• Kerbside collection services:
kerbside sorted recycling crates, council user-pays bag service. HCC is engaging with
its community on proposed changes to these kerbside collection services that would
be rolled out through its next waste services contract. The kerbside collection
contract is with Waste Management and expires in October 2020.
• Landfill management services:
Silverstream landfill operation and management. The landfill management contract
is also with Waste Management and also expires in 2020.
• Other services:
recycling drop-off site management, resource recovery centre provision, and
hazardous waste services (shared with UHCC). The delivery of these services is
impacted by how the kerbside collection and landfill management services are
delivered.
HCC could undertake procurement for kerbside collections and landfill management together or
as two separate procurement exercises, with the other services considered as part of either
procurement process. From our experience, most councils combine procurement for their waste
services into one procurement process, because it allows them to consider cost-efficiencies from
taking a larger package of work to market in one process.
The kerbside collection contracts alone are expected to cost in excess of $50 million over the
contract term. Given the contract value, the impact waste services have on every ratepayer and
the complexity associated with modern collection contracts, there is a need for well-informed
decision making in relation to Council’s procurement approach. Ensuring the market is well
engaged in the process will ensure Council obtains best value for money for its ratepayers.
Our approach
Our proposed approach to your procurement would be based on the process we are successfully
utilising with our current waste procurement clients and involves the following stages:
1. Stage 1: Procurement Strategy
2. Stage 2: Registration of Interest (ROI) process
3. Stage 3: Request for Proposals (RFP) documentation
4. Stage 3: RFP support
5. Stage 4: Proposal evaluation, negotiation and award
6. Stage 5: Contract finalisation and advice during mobilisation
Stage 1: Procurement Strategy
This stage involves the preparation of a detailed Procurement Strategy for the waste services. A
procurement strategy typically includes:
• Procurement Objectives
• Scope of Procurement
• Supplier Market Assessment
• Procurement Stages
• Proposal Evaluation Process
• Contract Approach: form of contract and contract term
• Financials: operating and capital costs, funding
• Project Management
Typically we undertake a workshop with key council staff to discuss and refine the procurement
requirements. Based on the workshop outcome and our knowledge of procurement processes
and the market, we draft the Procurement Strategy. This is circulated to the council for feedback
and is finalised following receipt of feedback.
At this stage we can refine the kerbside services proposed through the business cases, reviewing
options to optimise services such as servicing rural areas, specifying technology to support
collection service monitoring, recycling revenue sharing arrangements or the approach to
performance measurement. This will be based upon your needs and what is undertaken
elsewhere in New Zealand. We have up to date and extensive information based upon our work
in other procurement projects.
Stage 2: Registration of Interest (ROI) process
This stage involves preparing a brief ROI that requires suppliers to register an interest in
participating in the procurement process and attend supplier briefing sessions with Council.
Suppliers are not required to submit detailed information as part of the ROI and there is no
shortlisting of suppliers. Supplier briefings are facilitated as part of this stage. Feedback from the
suppliers is used to finalise the RFP documentation. Suppliers also gain an insight into council’s
key requirements, helping them tailor their response once the RFP is released to the market.
Stage 3: Request for Proposals (RFP) documentation
In this stage the documentation required for the RFP is prepared. This typically includes:
• Request for Proposal and response schedules
• Draft conditions of contract
• General and service-specific specifications
• Schedule of Prices
This step involves drafting and revision of documentation, including liaison with council staff as
well as legal, risk and assurance, probity and technical advisors, where required. For example, if
HCC were to include landfill management in the procurement process, it may be that council
elects to have the service-specific specification developed by their technical or engineering
advisors.
Stage 4: RFP support
Typically our council clients lead the RFP advertisement and uploading process. Typically we
provide support with responses to questions from suppliers during this stage but we can tailor
the approach to suit your needs.
Stage 5: Proposal evaluation, negotiation and award
Once the RFP responses are received, we would lead the proposal evaluation and negotiation
process, fulfilling several roles including acting as the independent facilitator and as an
evaluation team member. As part of this step we would:
• Prepare a tender evaluation plan
• Evaluate and score RFP submissions as an evaluation team member
• Collate evaluation team scores and prepare an evaluation of price submissions
ahead of the evaluation team meeting
• Facilitate the evaluation team meeting, where the evaluation team discuss and
agree final evaluation scores and shortlist preferred supplier(s)
• Prepare post-tender clarification questions for shortlisted suppliers
• Facilitate post-tender presentations and meetings with shortlisted suppliers,
prepare meeting minutes and any follow up clarifications
•
Prepare a supplier recommendation report
Stage 6: Contract finalisation and advice during mobilisation
Following selection of a supplier, we would prepare the final contract(s) based on the
procurement outcome.
During the lead-up to the commencement of the new contract(s) and the roll out of the new
services to the community, Council will be working closely with their selected contractor to
ensure a smooth transition. There will be several plans and procedures that need to be prepared
by the contractor and specific mobilisation requirements. Council may require ad-hoc advice
from Morrison Low during this process.
Project team
Morrison Low has a team of very experienced specialists at a range of levels that can support
HCC with your procurement process, and we are able to ramp up our resourcing when required.
Our proposed team would consist of the following resources:
• Project Director: Dan Bonifant, Director
(based in Wellington, familiar with HCC’s waste services)
• Project Manager: Alice Grace, Senior Consultant
(waste and procurement expertise and familiar with HCC’s waste services)
• Team Members:
Helen Ramsey, Senior Consultant (waste and procurement expertise)
Daniel Yallop, Consultant (waste expertise)
Joan Davidson, Consultant (procurement expertise)
Indicative procurement programme
The table below details the high-level programme for the waste services procurement. It is based
on the timeframes we know from experience that an effective process takes and assumes
confirmation of engagement of a consultant to support your procurement by 6 November 2019.
Activity
Date
Project kick off via teleconference
6 November 2019
Procurement Strategy workshop
13 November 2019
Draft Procurement Strategy
29 November 2019
Draft Registration of Interest (ROI) documentation
6 December 2019
Final Procurement Strategy
13 December 2019
Release Registration of Interest (ROI)
16 December 2019
ROI period closes (2 weeks, one either side of Christmas 10 January 2020
holiday period)
Supplier briefing sessions
17 January 2020
Draft Request for Proposals (RFP) documentation
December to January 2020
RFP period (8 weeks, running concurrently with annual
February to March 2020
plan consultation)
Proposal evaluation, negotiation and award
April to May 2020
Mobilisation period (six months)
May to October 2020
Contract commencement
November 2020
Indicative pricing
