By Darian Macey, September 4 2024
Capital Facilities and Infrastructure Branch has provided several clarifications in response to queries raised by potential tenderers for the Defence Infrastructure Panel – Major Construction 2025-2030. These responses are critical for understanding the tender process and the expectations for entities wishing to participate. Here is a breakdown of the key questions raised and the Commonwealth’s responses, which offer insight into the requirements and conditions for this tender.
1. Clarification on the Schedule of Rates Formula
Question: Can the Commonwealth confirm if the formula in clause 2(b) of Appendix 2 (Schedule of Rates) of the Panel Agreement is correct?
Response: The Commonwealth directs tenderers to refer to Addendum No. 02, which provides a revised formula for pricing revisions.
2. Wage Price Index Reference
Question: Can the Commonwealth confirm that the Wage Price Index referred to in the table in clause 2(b) of Appendix 2 (Schedule of Rates) of the Panel Agreement is Series ID A2603019J in Table 5b – Total Hourly Rates of Pay excluding Bonuses – Australia – Private Construction?
Response: Similar to the previous query, the Commonwealth advises tenderers to consult Addendum No. 02 for confirmation.
3. Participation of SME Organisations
Question: Can SME organisations apply for this tender process or should they engage at a subcontracting level with the successful Tenderers?
Response: The Commonwealth has stated that the tender seeks entities with the organisational capacity to deliver projects at the required level. SMEs may choose to approach prime contractors for subcontracting opportunities, but this decision is up to each company. SMEs interested in further engagement with Defence are encouraged to contact the Office of Defence Industry Support (ODIS) for more guidance. (Author’s note: DECnet offers advice to SMEs looking for subcontracting opportunities on Defence infrastructure projects. Click here to book in a free consultation).
4. List of Companies Downloading Tender Documents
Question: Will Defence make a list of the companies (or number of companies) which have downloaded the tender documents available?
Response: No, the Commonwealth will not provide such a list. This maintains confidentiality and fairness in the tender process.
5. Number of Panel Contractors to be Appointed
Question: How many Panel Contractors will be appointed to the Panel?
Response: The Commonwealth estimates that up to 15 entities will be appointed to the Panel, but this number is indicative only and subject to change based on the quality and number of tenders received, as well as the Commonwealth’s ongoing assessment of its requirements. There is no set upper limit, allowing flexibility in the selection process.
6. Structure of the Panel Membership
Question: Is the intent to limit Panel membership to approximately 15 company entities, 15 “company brands,” or develop state/territory panels of about 15 company entities per jurisdiction?
Response: The Commonwealth reiterates that the final number of Panel Contractors appointed will be determined by reference to tendering entities rather than “company brands.” This response underscores the focus on legal entities that meet the requirements rather than broader brand affiliations.
7. Information Published by Non-Commonwealth Sources
Question: Is the Commonwealth aware of information that has been published (including on the internet) in relation to the Defence Infrastructure Panel – Major Construction 2025 – 2030 by a source other than the Commonwealth?
Response: The Commonwealth is aware of information published by non-Commonwealth sources but emphasizes that such information is not authorised and should not be relied upon. Tenderers are responsible for ensuring their tenders meet the requirements set out in the official Tender Documents (Author’s note: It’s nice to feel appreciated).
8. Compensation for Panel Contractors
Question: Will the Schedule of Rates be used for compensating the Panel Contractor for participating in the engagement process under Section 3 of the Panel Agreement?
Response: No, the Schedule of Rates will not be used for this purpose. Tenderers are referred to clause 5.1 of the Panel Conditions, which outlines the role of the Schedule of Rates.
9. Relationship with Other Defence Market Activities
Question: Is there any relationship between the SEG-CFI-20230901B Construction Market Sounding Process – Defence Capital Works Projects and the AZ6546 Defence Infrastructure Panel – Major Construction 2025 – 2030 approach to market?
Response: No, these are separate activities. The SEG-CFI-20230901B is a Market Sounding activity for feedback on proposed delivery strategies, while AZ6546 is an Approach to Market to establish a panel.
10. Need for Demolition and Civil Contractors
Question: Is there a need for a demolition and civil contractor within the scope of works?
Response: Tenderers are referred to the Scope of Works in the Tender Documents. Future engagements may require various construction disciplines, including demolition and civil works.
11. Tender Submission for Related Entities
Question: Can the Commonwealth consider amending the Tender Documents to allow for related entities to lodge a single Tender?
Response: The Commonwealth acknowledges the complexity but indicates that each legal entity seeking to be on the Panel must lodge a separate tender. This ensures a fair evaluation process and compliance with Commonwealth Procurement Rules.
12. Submission of Tenders by Multiple Legal Entities
Question: Can the Commonwealth clarify whether it requires a supplier that delivers construction contractor services nationally through different legal entities (for example, by jurisdiction for licensing reasons) to submit a single tender or multiple tenders?
Response: Each legal entity must lodge a separate tender if it seeks to be appointed to the Panel. This approach ensures compliance with the Commonwealth Procurement Rules and provides a basis for effective evaluation and contract administration.
13. Reason for Including the Schedule of Rates
Question: Can the Commonwealth explain why it is requesting Tenderers to lodge the information described in Tender Schedule D – Schedule of Rates?
Response: The inclusion of a Schedule of Rates is to ensure compliance with Commonwealth Procurement Rules and to provide a basis for a comparative evaluation between tenders on a value-for-money basis.
14. WHS Accreditation Scheme Requirement
Question: The request documentation specifies the requirement for compliance with the WHS Accreditation Scheme. Please confirm that this means OFSC accreditation is required and in what time frame.
Response: Yes, compliance with the WHS Accreditation Scheme is required. If the Tenderer cannot demonstrate compliance before the proposed execution date, the Commonwealth may exclude the Tenderer from consideration.
15. Clarification on Fixed vs. Variable Costs
Question: The Scope of Works indicates the commercial approach for managing contractors as being a combination of fixed cost components and reimbursable costs. Can the Commonwealth please provide more detail on what items are fixed versus variable?
Response: Tenderers are referred to the Managing Contractor Contract template (MCC-1 (2021)) available on the Defence website for detailed information.
16. Options for Newly Incorporated Joint Ventures
Question: What options are available to a newly incorporated joint venture that is responding to Tender Schedule A – Organisational Past Performance?
Response: The Commonwealth specifies that a newly incorporated joint venture must provide past performance at an organisational level. The past performance of its parent entities will not satisfy the requirements. The Commonwealth highlights that tenders are not accepted from unincorporated joint ventures.
17. Criteria for Organisational Past Performance Projects
Question: Would a tender submission be non-conforming if the organisational projects nominated by the Tenderer in Tender Schedule A – Organisational Past Performance are not valued in the vicinity of $200 million or above (excluding GST)?
Response: The Commonwealth clarified that while the request for projects valued around $200 million is not a mandatory requirement for tender compliance, it remains a significant evaluation criterion. Tenderers are encouraged to provide details of substantial projects as part of their past performance; however, the ultimate assessment will be based on the totality of information provided and its relevance to the evaluation criteria.
18. Inclusion of Specialist Service Providers
Question: Is the Commonwealth seeking 15 panellists that can support the full scope of works for large infrastructure projects, or is it also receptive to subject matter experts becoming panellists to provide specialist services?
Response: The Commonwealth does not explicitly provide for complementary specialist service providers as Panel members. Instead, the focus is on entities demonstrating value for money across the full scope of works. (Author’s note: This response suggests a preference for tenderers to be comprehensive in their capabilities rather than relying on specialist services alone).
19. Flexibility for Additional Panel Appointments
Question: Does the statement in clause 2.4 of the Panel Agreement about appointing additional persons to the Panel later mean there will be another opportunity for Tenderers to join the Panel?
Response: The Commonwealth acknowledges the possibility of refreshing the Panel and amending the Scope of Works. However, no guarantees are given regarding when or if this would occur. (Author’s note: This indicates that opportunities for additional appointments are not planned but could be considered based on future needs).
20. Requirements for Tender Schedule D – Schedule of Rates
Question: What cost considerations should be included within the staff rates for Tender Schedule D – Schedule of Rates?
Response: The Commonwealth does not prescribe how the rates should be calculated or what specific cost elements must be included. The preparation of these rates is left to the discretion of the tenderer. (Author’s note: This response highlights the flexibility given to tenderers in defining their cost structures, provided they align with the Panel Conditions).
21. Advance Pipeline of Opportunities
Question: Does the Commonwealth intend to provide an advance pipeline of the opportunities that are anticipated to be procured under the Panel?
Response: Yes, the Commonwealth intends to provide updates on upcoming project pipelines, similar to the biannual updates provided by the Capital Facilities and Infrastructure Branch. This planned transparency helps tenderers prepare better and align their proposals with anticipated project needs.
22. Potential for a Two-Phase Procurement Process
Question: Will a two-phase procurement process be adopted in engagement processes under the Panel Agreement?
Response: The Commonwealth generally anticipates a single-stage procurement process. However, there is room for flexibility, such as requesting Panel Contractors to confirm their intent to submit a tender. The Commonwealth is exploring ways to streamline procurement under the Panel to enhance efficiency.
23. Non-Conformity with DISP Membership Requirements
Question: If a Tenderer is in the process of obtaining DISP membership, does that preclude them from submitting a Tender for appointment to the Panel?
Response: No, tenderers are not required to hold DISP membership to submit a Tender or be appointed to the Panel. However, the requirements for DISP membership could affect their participation in certain engagements under the Panel.
Conclusion
These responses from the Commonwealth provide critical clarity on the requirements and expectations for potential tenderers of the Defence Infrastructure Panel – Major Construction 2025-2030. Entities interested in participating should carefully review these responses, along with the official Tender Documents, to ensure compliance and readiness for submission.
Author: Darian Macey
Darian is a former Engineering Officer with the RAE with tertiary qualifications in Engineering and Project Management. He is a leading practitioner within Australia's NSI sector with previous employment in Government, project management and building contractor organisations.
