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King Island Council Invitation to EOI

Operation of airport kiosk and cleaning of airport terminal

KING ISLAND COUNCIL

Expression of Interest (EOI)

OPERATION OF AIRPORT KIOSK AND CLEANING OF AIRPORT TERMINAL

Closing Date: Friday 21 November 2014 Closing Time: 9:00am Contact Officer: Arthur Johnstone 0447 621 789



CONTENTS 1 The Opportunity .........................................................................................................................2 2 EOI Conditions ..........................................................................................................................4

2.1. EOI Response .....................................................................................................................4 2.2. Lodgement of EOI Response .............................................................................................4 2.3. EOI Evaluation ...................................................................................................................5 2.4. Acceptance of EOI .............................................................................................................5 2.5. EOI Agreement ..................................................................................................................5 2.6. Negotiation .........................................................................................................................6 2.7. Enquires to Council ............................................................................................................6 2.8. Information Given in Response to Enquiries .....................................................................7 2.9. Non-Conforming EOI’s .....................................................................................................7 2.10. Goods and Services Tax .....................................................................................................7 2.11. No Collateral Contract .......................................................................................................7 2.12. Subcontracting ...................................................................................................................7 2.13. Term ...................................................................................................................................7 2.14. Commencement .................................................................................................................7 2.15. Specification Review .........................................................................................................7

3 Insurance ....................................................................................................................................8 4 Principal’s Indemnity .................................................................................................................8 5 Risk Management ......................................................................................................................9 6 EOI Response .............................................................................................................................9

2.1. EOI Response Content .......................................................................................................9 2.2. Questionnaire .....................................................................................................................9 2.3. Insurance Requirements .....................................................................................................9 2.4. Declaration .......................................................................................................................10

Appendix 1 – ....................................................................................................................................11

1 The Opportunity King Island Council (‘Council’) has commenced a terminal upgrade at the King Island Airport to expand and modernise the terminal. Construction is expected to be completed by April 2015.

The revised floor plan includes a relocation and expansion of the kiosk as shown on the attached plan (Appendix 1). The successful EOI will be responsible for the fit out of the refurbished kiosk. There is an opportunity to work with the firm undertaking the construction of the terminal in this regard. The terminal floor plan provides for all seating to be located in or adjacent to the departure lounge and the Kiosk area. All departing passengers and their accompanying well-wishers and those awaiting arriving aircraft will be encouraged by the terminal design to occupy these areas which provide direct exposure to the Kiosk facility. There are currently three airlines providing inter and intrastate daily services (up to 5 daily flights), along with regular charter flights.



It is expected that 3,000 passengers per month will either depart or arrive from the terminal with up to 4,500 passengers per month in busy times, although Council makes no warrant and guarantee that the passenger numbers will be constant. Council will use its best endeavours to maximise flight options and seat availability. Council expects the Kiosk to open for business at least 45 minutes before and 15 minutes after each scheduled aircraft arrival/departure and for similar periods in relation to aircraft which are delayed. Although the current schedule would allow a brief period of closure during the day, the proponent is required to consider the possibility of continuous operation of the business, from the first flight to the last flight.. In this regard the proponent should consider opportunities for business expansion, particularly by offering a café/bistro style lunch and dinner menu, suited to the broader clientele available on King Island. The EOI should address:

• type of service/products that will be available; • whether the operator intends to obtain a liquor licence • hours of operation; • alternatives if kiosk is unattended

Council will provide a waste collection service. The tenant is required to pay all outgoings including electricity. Council is also seeking to enter a commercial arrangement with the Kiosk tenant to undertake the cleaning of the airport terminal. This includes

• casual cleaning of the toilet and departure areas based on an inspection pre and post flight inspection of the toilet area and departure lounge;

• daily cleaning of the airport terminal building and surrounds; and • regular cleaning of the internal and external glass.

The contractor will be expected to supply all equipment and consumables. The proposal for cleaning should include: • an hourly rate for cleaning; • plus an annual amount for all consumables. Council is seeking to enter a commercial lease for the kiosk and a cleaning contract initially for a period of 5 years, but with options to extend by mutual agreement for similar subsequent term(s).



2 EOI Conditions

2.1. EOI Response

Each EOI Response must-

• Address all the requirements of the specifications (Section 3)

• Include all information required in the EOI Response (Section 4)

• Provide documentary evidence to prove that the respondent has the necessary competence, resources, industrial relations, quality, safety management and financial capacity to carry out the requirements of the EOI.

2.2. Lodgment of EOI Response

EOI Responses must be-

• In a sealed envelope

• Addressed to General Manager “King Island Council” and marked “Operation of airport kiosk and cleaning of airport terminal”

• Placed in the EOI Box located at the Main Office, corner of George & Meech Street, Currie or posted to, PO Box 147, Currie 7256.

• Received by the time and date specified.

NOTE: EOI’s received by facsimile or email will not be accepted.

EOI’s lodged after the closing time or otherwise than in the EOI Box may not be accepted.



2.3. EOI Evaluation

The evaluation of EOI’s will be carried out in accordance with the following evaluation criteria. EOI’s should ensure that EOI submissions clearly address the evaluation criteria.

Evaluation Criteria:

• Ability of the EOI to undertake the technical aspects of the EOI -30%

• Capacity of the EOI to provide the service - 20%

• Risk Management and Demonstrated contingency plan - 30%

• Price - 20%

Weighting factors are designed for each of the criteria. These weightings will be used to aggregate and compare each EOI’s evaluated ability to meet the criteria based on the submitted.

2.4. Acceptance of EOI

All EOI’s will be promptly notified in writing of Council’s acceptance of any EOI Response.

The Council may accept or reject any EOI.

Council is not bound to accept the lowest or any EOI Response.

Notwithstanding any other requirement of the Request for EOI documents, the Council may, before any EOI is accepted, require any EOI to submit promptly on request and without charge, any further information relevant to its EOI.

The Council may conduct post-EOI negotiations with the preferred EOI for the purpose of concluding the Contract in a fair and reasonable manner.

2.5. EOI Agreement

The successful EOI must execute a EOI Contract Agreement in the form contained in section 5, or such amended form as the parties may agree, within 7 days of receipt of EOI acceptance from Council, or such other period as the parties may mutually agree.

Failure to comply with this clause will constitute grounds for Council not to award the contract to such a EOI.



2.6. Negotiation

Council is free to negotiate on any terms with any person and is not bound to enter into any arrangement with any person lodging a EOI. The Council reserves the right to negotiate with EOI on any aspect of their proposals. The Council believes that the information contained in this document is correct at the time it was prepared. However, EOI must make their own enquiries and satisfy themselves as to all issues relevant to their offer. The final lease contract will contain a provision that the successful EOI has relied entirely on their own enquiries and reliance on anything contained in this document will be expressly excluded. None of the Council’s requirements and none of the responses to this Invitation to EOI are binding until a contract for lease of the premises or a similar document is signed. The Council will keep confidential all information contained in the EOI Response including the identity of the persons lodging them.

2.7. Enquires to Council

All EOI enquires must be directed to Council’s Manager Works & Services whose name and telephone number appears on the front cover of these EOI documents and must not be directed to any other Council staff or Elected Members. Lobbying of staff or elected members will result in disqualification from the EOI process. A EOI who breaches this clause will be disqualified from the EOI process.



2.8. Information Given in Response to Enquiries

No statement made by any member of the Council’s staff or Elected Members may be construed as modifying this Invitation to EOI, unless confirmed in writing by Council.

Any advice, in whatever form, given by Council to an EOI for the purpose of clarifying the meaning of the EOI documentation, may also be given to all other EOI’s in writing.

All EOI enquiries must be received no later than 3 working days prior to the close of EOI.

2.9. Non-Conforming EOI’s

Council may reject a non-conforming EOI.

2.10. Goods and Services Tax

Prices and Fees must be included and detail any applicable GST.

2.11. No Collateral Contract

The submission of a EOI by a EOI will not give rise to any contract governing, or in any way concerning, the EOI process, or any aspect of the EOI process, for the Contract. Council expressly disclaims any intention to enter into any such Contract.

2.12. Subcontracting The successful EOI cannot subcontract any of the services in this EOI without the consent of Council.

2.13. Term

This contract is for five (5) years with a possible extension of a further five (5) year period. Any extension of this contract will be at the sole discretion of Council and will be subject to satisfactory performance over the initial period.

2.14. Commencement

This contract is to be negotiated for April 2015 on completion of construction of the airport terminal.

2.15. Specification Review

Council seeks to ensure that these Specifications are comprehensive, accurate and “user friendly”. These Specifications do not attempt to detail all of the changing requirements that the specified service may need to respond to over the life of the Contract. For this



reason, the Specifications may be reviewed to ensure the service provision is consistent with changing community and legislative needs.

The Contractor will be required to participate in formal and informal reviews of the Specification from time to time, at which time the scope of the services may be changed by agreement.

3 Insurance Prior to lodging an EOI, EOI’s are required to contact their insurer and obtain confirmation that the insurance requirements will be met in the event of a successful EOI.

The Contractor must take out and maintain the following insurances for the term with an insurer approved by the Council:

• Public liability insurance for the for a sum not less than $20,000,000; and

• Appropriate business insurance. Council will insure the airport terminal building but the EOI is responsible for insurance of the fit out and contents of the Kiosk.

The Contractor must:

• Give the Council a copy of each policy;

• Give the Council a copy of a certificate of currency of each policy once every year and at any other time the Council reasonably requires.

4 Principal’s Indemnity The Contractor agrees to indemnify and to keep indemnified the Principal (Council), its servants and agents, and each of them from and against all actions, costs, claims, charges, expenses, penalties, demands and damages whatsoever which may be brought or made or claimed against them, or any of them, arising from the Contractor’s performance or purported performance of its obligations under this Contract and be directly related to the negligent acts, errors or omission of the Contractor. The Contractor’s liability to indemnify the Principal shall be reduced proportionally to the extent that any act or omission of the Principal, its servants or agents, contributed to the loss or liability.



5 Risk Management The Contractor is to perform the services in a manner that eliminates all avoidable risk to Council and is to assess, monitor and pro-actively manage all potential risks inherent in the provision of the specified services that reasonably could:

• Prevent, delay or interrupt the delivery of, or quality of, the specified Services

• Negatively impact the reputation of Council in the eyes of the community, general public, Government or professional organisations.

6 EOI Response

2.1. EOI Response Content The EOI Response must comprise a all of the following completed documents:

• Questionnaire (refer 7.2)

• Insurance statement (refer 7.3)

• EOI Form (refer 7.4);

• Declaration (refer 7.5)

2.2. Questionnaire EOI’s are required to submit such information as is necessary to enable Council to undertake an effective assessment of the EOI in respect of the evaluation criteria. This questionnaire has been prepared to assist EOI’s in supplying this information. Appendix XXXXX contains the separate questionnaire.

2.3. Insurance Requirements

This statement verifies that the Contractor has insurance suitable for the requirements of the contract in accordance with the conditions stated in the EOI Document. EOI’s are to note that an ‘interested party’ policy does not meet the Conditions of Contract. Failure to answer these questions will deem the EOI nonconforming.

Evidence of the responses below will be required before Council commits to a contract.

CHECK LIST FOR EOI APPLICATIONS (Circle Yes or No)

PUBLIC LIABILITY INSURANCE

Minimum Limit of Liability to be provided - $20,000,000

Do you have or will you obtain a Principles Indemnity Extension? Yes No

PRODUCTS LIABILITY INSURANCE

Do you have Products Liability Insurance? Yes No



2.4. Declaration

I declare that the answers provided in response to these EOI Requirements are true and correct in the belief that a person making a false declaration is liable to the penalties or perjury.

Name of EOI: …………………………………………………………

Company name: …………………………………………………………

Position in Company: …………………………………………………………

EOI Signature: …………………………………………………………

Date: …………………………………………………………



Appendix 1


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