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DECS SCHOOL BUS TRANSPORT INDUSTRY BRIEFING. September 2010. DECS SCHOOL BUS TRANSPORT. Industry Briefing Session Background Current Transport Arrangements Legislation / Policy Recent Government Announcements Procurement Process - New Bus Services Contracts Timelines

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Presentation Transcript
slide2

DECS SCHOOL BUS TRANSPORT

Industry Briefing Session

Background

Current Transport Arrangements

Legislation / Policy

Recent Government Announcements

Procurement Process - New Bus Services Contracts

Timelines

DECS Bus Supply Panel

Summary and Questions

Presented by:

Roberto Bria – Director Corporate and Business Services

John Scalzi – Assistant Director Business Services

slide3

DECS SCHOOL BUS TRANSPORT

Background

The Department of Education and Children’s Services (DECS) currently provides:

509 free school bus services to more than 16,000 students

Predominantly in the rural areas of the State

283 private contractor services through 104 contractors; and

226 DECS owned and operated buses.

slide4

DECS SCHOOL BUS TRANSPORT

Current Transport Arrangements

In 2000 DECS established fixed term contracts for a 5+5 year term through a staged approach for the private contracted services.

DECS was assisted with the development of this strategy by the Bus and Coach Association and Passenger Transport Board.

A Costing benchmark was developed and used in evaluating tenders to ensure value for money.

slide5

DECS SCHOOL BUS TRANSPORT

Legislation / Policy

Education Act 1972 - the Minister for Education may provide free transport for students attending primary and secondary govt schools.

August 2006 - government announcement of the gradual phasing in of the following safety and comfort measures as school buses were replaced:

March 2007- government announced that “Private Operators will be required to tender for school transport services that meet the new safety package, including the need for seatbelts to be fitted, when their contracts expire.”

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DECS SCHOOL BUS TRANSPORT

Recent government announcements

Cabinet and State Procurement Board approval

News Release 13 September 2010 and Budget announcement – main points

Funding commitment

All new buses (DECS fleet and new private bus operator contracts) to have seat-belts, air-conditioning and other safety standards

A new two-stage procurement process for each route or cluster of routes

The procurement process will enable direct negotiation with existing operators, or where appropriate, to test the market

The procurement process will take into account individual operators’ records of providing quality service

A panel of suppliers established to assist contractors to purchase new buses

Industry briefings will be held in key regional centres

slide7

DECS SCHOOL BUS TRANSPORT

Procurement Process - New Bus Services Contracts

Procurement process to commence immediately

Current Contracts will be honoured

Two Stage Procurement Process

* Stage 1 – Expression of Interest

* Stage 2 – Request for Proposal

New contracts established by 2016

Initial contract term - 7 year term + 4 + 4 year extension options

DECS to review each run as per normal process to ensure ongoing viability

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DECS SCHOOL BUS TRANSPORT

Stage 1 – Expression of Interest

Develop RFP release strategy for Stage 2 (incorporating Run reviews)

Issue EOI

Establish list of potential providers

Stage 2 – Request for Proposals

No EOI response to a particular route

DECS bus available

End

No response received

Invoke new procurement process or allocate a DECS bus

If no DECS bus, call tenders/quotes

Establish Contract

End

RFP issued to EOI Registrant(s) as per matrix list

One response received

Within Benchmark

Establish Contract

End

Above Benchmark

Negotiate Offer

Negotiation successful

Evaluate responses to select preferred offer

Multiple responses received

Negotiation not successful

slide9

DECS SCHOOL BUS TRANSPORT

Stage 1 – Expression of Interest

All bus runs will be published

Interested parties invited to express interest for any run(s)

The EOI document is the mechanism for interested parties to register their interest in the provision of school bus runs

Advertised on SA Tenders Website www.tenders.sa.gov.au

Need to complete ALL details as requested in EOI document

Notes:

DECS will develop the RFP strategy following the evaluation of EOI process

Stage two will seek RFP from EOI Registrants in the first instance

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DECS SCHOOL BUS TRANSPORT

Stage 1 - Expression of Interest document

Main points:

Three parts to EOI document:

Part A – Invitation and Bid Rules

Part B – Requirements and Specification

Part C – Response Documents

Closing date – seeking feedback from the market

Single Contact person

Bid rules to ensure probity

List of bus runs

To submit an EOI Registrants MUST complete all requirements of Part C

Registrants will be required to submit the following as part of the EOI response:

- Company details (ref Response Schedule 1)

- Completed Statement of Compliance (ref table 1 Response Schedule 2)

Completed Bus Run nomination (Attachment 1, Response Schedule 3)

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DECS SCHOOL BUS TRANSPORT

EXAMPLE – all runs published but subject to route reviews

– some details (such as Klms and % on dirt) are approximate

slide12

DECS SCHOOL BUS TRANSPORT

Stage 1 – Expression of Interest

Develop RFP release strategy for Stage 2 (incorporating Run reviews)

Issue EOI

Establish list of potential providers

Stage 2 – Request for Proposals

No EOI response to a particular route

DECS bus available

End

No response received

Invoke new procurement process or allocate a DECS bus

If no DECS bus, call tenders/quotes

Establish Contract

End

RFP issued to EOI Registrant(s) as per matrix list

One response received

Within Benchmark

Establish Contract

End

Above Benchmark

Negotiate Offer

Negotiation successful

Evaluate responses to select preferred offer

Multiple responses received

Negotiation not successful

slide13

DECS SCHOOL BUS TRANSPORT

Stage 2 – Request for Proposal

All Registrants will be invited to provide a response to the Request for Proposal document in relation to that particular run.

Main points:

Main parts of RFP document include:

Invitation and Bid Rules

Specification – including:

Lap/sash seat-belts

Air-conditioning

ADR 80/02 (Euro4) from January 2007, ADR 80/03 (Euro5) from 2011

Roll over strength

Flashing lights and school bus signage

Bus may be painted “Dulux School Bus Yellow” (Optional)

Response Documents

Draft Contract document

slide14

DECS SCHOOL BUS TRANSPORT

Timelines

Industry Briefings – 24 September to 1 October 2010

Release EOI through the SA Tenders website – 5 October

Receive EOI – 4 to 8 weeks from EOI release date depending on feedback from Industry Briefings

Analyse EOI responses and develop RFP release strategy (incorporating Route reviews) – 4 weeks from EOI closing date – say to mid December 2010

Issue RFP’s – commencing mid January 2011 and on-going

Evaluate RFP responses and negotiation – allow 2 to 4 weeks as a guide

Formalise contracts

slide15

DECS SCHOOL BUS TRANSPORT

DECS Bus Supply Panel

DECS is currently in the process of establishing a pre-qualified supplier panel arrangement for the purchase of DECS buses – refer Tenders SA website

The panel will include small, medium and large buses

To secure the best possibly delivery lead times

DECS bus services contractors may access the panel at their sole discretion or purchase from any supplier

DECS bus services contractors will however need to negotiate their own purchasing terms including price

slide16

DECS SCHOOL BUS TRANSPORT

Summary and Questions

Expression of Interest Closing date: tell us what you think!

Contact Person: Ryan Fowden

Procurement Unit

Ph (08)8226 1538

Email: Ryan.Fowden@sa.gov.au

Any questions?