Page 1584 - Week 08 - Wednesday, 27 September 1989
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Mrs Grassby: The answer to the member's question is as follows:
(1) Yes. Metal Recyclers NSW Pty Ltd was an unsuccessful tenderer.
(2) Yes. MG Metals was the successful tenderer.
(3) Evaluation of a tender for the sale and removal of scrap metal must take into account the expected quantities of the various classes of scrap. It is not appropriate to merely compare the list of unit rates offered.
The "weighted" comparison by ACTEW resulted in outcome values for the two tenders that were virtually equal. Initial evaluation favoured the successful tenderer, MG Metals, by a small margin. On this basis, and their previous reliable service, they were awarded the contract.
Following previous representation on behalf of Metal Recyclers NSW it became apparent that the format of the tender document could have led Metal Recyclers to omit quoting for two minor items. When these are taken into account, the two particular tenders were even closer, with Metal Recyclers being lower by $200 in $167,000 or one-tenth of one per cent. Effectively, the tenders were equal. In such cases ACTEW looks beyond price in the selection process.
ACTEW's experience with sale and removal of scrap leads them to place considerable emphasis on reliability of service, as it can vary greatly between firms in this particular business. Previously MG Metals provided a reliable and prompt service.
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