DECS SCHOOL BUS TRANSPORT

1. DECS SCHOOL BUS TRANSPORT Private Operator RFP process overview 18 January 2011

2. DECS SCHOOL BUS TRANSPORT AGENDA Private Operator School Bus Services - DECS Bus supply panel - EOI / RFP process - Strategy for release of selective RFP’s - RFP process overview

3. DECS SCHOOL BUS TRANSPORT DECS BUS SUPPLY PANEL Supplier panel established for the purchase of DECS buses. Panel includes small, medium and large buses. Aims to secure price and delivery lead times. DECS bus services Contractors may access the panel at their sole discretion or purchase from any supplier but will need to negotiate their own purchasing terms including price.

4. DECS SCHOOL BUS TRANSPORT DECS BUS SUPPLY PANEL

5. DECS SCHOOL BUS TRANSPORT EOI / RFP process - school bus services On 23 August 2010 the State Procurement Board approved: A two stage procurement, viz EOI followed by RFP’s Approval subject to provision to the Board of: summary of EOI outcome resultant strategy for release of selective RFP’s finalised evaluation methodology

6. DECS SCHOOL BUS TRANSPORT EOI / RFP process - school bus services (cont) Industry briefings - 24/9/10 to 1/10/10 Industry Briefings conducted in Kadina, Elizabeth, Murray Bridge, Port Lincoln, Berri & Mt Gambier. Approximately 117 people attended; positive feedback received. Questions and Answers from the Industry Briefings and other Questions and Answers developed were posted on the TendersSA website and mailed to all Contractors. Main points discussed at Industry Briefings: - A list of all contracted routes will be published. - Interested parties can register an interest for any routes. - Registrants should consider their capability - RFP’s issued to EOI Registrants in the first instance.

7. DECS SCHOOL BUS TRANSPORT EOI / RFP process - school bus services (cont) EOI call – 8 October 2010 to 3 December 2010. EOI scheduling occurred in two phases to ensure against receipt mishaps: Phase 1 – DECS contacted existing contractors that had not submitted a response to confirm the non response. Phase 2 – responses opened and interests recorded in a spreadsheet Matrix. DECS engaged KPMG to assist with the development of the RFP strategy and advice on the Bus Costings Benchmark and Index.  PKF also engaged to provide Probity advice/audit services.

8. DECS SCHOOL BUS TRANSPORT EOI / RFP process - school bus services (cont) Example of EOI matrix

9. DECS SCHOOL BUS TRANSPORT EOI / RFP process - school bus services (cont) EOI analysis The schedule list of EOI responses has been verified/checked. Multiple interests have been expressed for every route. Minimum number of respondents per route is 6. Maximum number of respondents per route is 16. Average of 11 EOI’s per bus route. Managing the RFP volume: DECS to write to all EOI Registrants to review their EOI against capability and to confirm EOI reduction (if any). The evaluation process contains provisions to enable offers to be rejected at an early stage of the evaluation, viz: Stage 1 – Essential criteria Stage 2 – Benchmark comparison.

10. DECS SCHOOL BUS TRANSPORT EOI / RFP process - school bus services (cont) RFP RELEASE STRATEGY considerations The priority for releasing RFP’s to EOI Registrants only in the first instance based on: contracts that expired in 2010; contracts that expire in 2011; where the Contractor is unable to meet existing contractual obligations – eg bus age limit. Route reviews to establish viability & to finalise route specific RFP schedules. The priority means that RFP’s will be issued for large number of routes during 2011.

11. DECS SCHOOL BUS TRANSPORT EOI / RFP process - school bus services (cont) RFP RELEASE STRATEGY considerations (cont) Where possible, RFP’s are released on school based cluster.EOI Registrants need to submit separate RFP offers for individual EOI nominated routes and for groups. Negotiate directly where there are single Registrants. If no suitable offer received (within benchmark) DECS will either: Start a new process to seek offers from any provider; or Place a DECS bus on the route. If a Contractor is unable to continue to provide the services ( on justifiable grounds) within 12 months of the new contract, the next most suitable offer made in the RFP process will be considered. DECS will provide similar information as presented at this conference to all EOI Registrants to ensure probity.

12. DECS SCHOOL BUS TRANSPORT Example of RFP release plan

13. DECS SCHOOL BUS TRANSPORT RFP PROCESS OVERVIEW RFP structure – 4 parts: Part A - Invitation and Bid Rules Part B - Requirements and Specification Part C - Conditions of Contract Part D - Response Documents

14. DECS SCHOOL BUS TRANSPORT RFP PROCESS OVERVIEW Part A - Invitation and Bid Rules Brief background General information concerning the Invitation to Submit a Proposal and Bid Rules Part B - Specifications Bus capacity and quality (eg seatbelts, air-con etc) Route and distance Pick up and drop off points, timetable and list of approved students provided by school Principal

15. DECS SCHOOL BUS TRANSPORT RFP PROCESS OVERVIEW Part C - Conditions of Contract Draft Contract Terms and Conditions – basis for the Agreement Main provisions include: Contract Term; the Services; Route Description; Approved Drivers; Approved Bus; Payment terms; Insurance; Disclosure; Dispute Resolution; Termination and School Transport Policy The draft Contract document updated by the Crown Solicitor’s Office and includes BCA input Part D - Response Document This is the offer document. Only compliant offers will be considered. Therefore, need to ensure Offer provides all the required information – such as: Completed Statement of Compliance Insurance details Pricing OHS&W requirements Criminal History checks: and Proof of Financial Viability

16. DECS SCHOOL BUS TRANSPORT RFP PROCESS OVERVIEW Key points Compliant response - ensure response requirements are met Closing date – late responses may not be considered Last queries date – same information to all Contact person – all queries – to one contact person and in writing Currency of supporting documentation – eg insurance policies If unsure = don’t hesitate to ask .

17. DECS SCHOOL BUS TRANSPORT RFP PROCESS OVERVIEW Evaluation Stages The Evaluation will be conducted in a number of stages: Stage 1 – High Level Assessment of Essential Criteria; Stage 2 – Benchmark Comparison; Stage 3 – Qualitative Assessment (inc Referee Check); Stage 4 – Value for Money Consideration; and Stage 5 – Choose successful applicant. Submissions which do not meet minimum requirements can be excluded from consideration after Stage 1 and 2. .

18. DECS SCHOOL BUS TRANSPORT RFP PROCESS OVERVIEW General Benchmark Offers will be evaluated against an updated benchmark for each run. The benchmark takes into account bus purchase price which includes the additional specifications such as lap/sash seatbelts and air-conditioning. Price Variation Index The Price Variation Index reviewed to ensure that the contract rates are appropriately adjusted throughout the contract term. Contract Term The new contracts will be established for a 7 year period plus two by 4 year extension options. Contract starts when new bus is commissioned. Successful bidders will be allowed up to 6 months to buy a bus.

19. DECS SCHOOL BUS TRANSPORT Summary Bus Purchase EOI/RFP: Panel of 9 suppliers established. DECS bus services contractors may access the panel. Bus Services EOI/RFP: Industry Briefings held across the State. Multiple EOI received for all routes. The finalised RFP release strategy considers viability of routes, EOI responses, expiry dates of current contracts and bus age limit. RFP’s issued to EOI Registrants EOI Registrants must submit compliant offers