Management report to Council Agenda item 6.7 Melbourne Spring Fashion Week Designer Runway Production Tender. No. 3539

Council

Presenter: Martin Cutter, Director City Economy and Activation 23 February 2016

Purpose and background

1. The purpose of this report is to seek Council approval to award a tender for the Melbourne Spring Fashion Week (MSFW) Designer Runway Production contract (No. 3539) to Geraldine Frater-Wyeth T/A Event Gallery (Event Gallery) for one year with two, one year extension options.

2. The current contract is delivered by Valentina and Associates under a one year contract with two one year options to extend. The options to extend were exercised with the final year contract expiring early May 2016.

3. The tender was advertised in The Age newspaper on 18 November 2015. Three tender submissions were received and all were compliant.

4. Consistent with the industry approach, and as advised in a briefing note to Councillors on 10 November 2015, the tenderers were advised that the value of the contract was $300,000 exclusive of GST and asked to provide their best creative and value for money content for the tender.

5. The Tender Evaluation Panel assessed each submission based on the evaluation criteria of cost (30 per cent), experience, capability and past performance (30 per cent), plan for proposed services (30 per cent) and quality assurance and occupational health and safety (10 per cent). Interviews were also conducted with all tenderers. The cost criteria was assessed against the proposed lump sum budget breakdown provided in the tender response to assess the most financially appropriate spend. The tender evaluation summary is contained in Attachment 1.

Key issues

6. This contract provides the production development and delivery of the MSFW Designer and Emerging Runways including development of runway creative concepts, procurement of talent, staff and all operational requirements.

7. Event Gallery was evaluated as the preferred tenderer by the Tender Evaluation Panel as their submission demonstrated the strongest alignment with the service specifications of the contract, the most appropriate use of available budget and their experience, capability and past performance was of an extremely high standard.

8. The cost to Council of appointing the recommended tenderer is $300,000 annually, exclusive of GST and represents additional value with the inclusion of two additional runways design and delivery into the service specification.

Recommendation from management

9. That Council:

9.1 Awards the contract for the provision of MSFW Designer Runway Production services to Geraldine Frater-Wyeth T/A Event Gallery for a term of one year commencing on 4 March 2016 with an option to extend the contract term by a further two years (one year plus one year) for an annual contract sum of $300,000 exclusive of GST and otherwise in accordance with the negotiated terms and conditions of contract.

Attachments: 1. Supporting Attachment

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Supporting Attachment

Legal

1. Pursuant to section 186 of the Local Government Act 1989 (Vic), before a Council enters into a contract for the provision of works to the value of $200,000 or more (levels increased by Order in Council dated 7 August 2008), the Council must give public notice of the purpose of the contract and invite tenders from persons wishing to undertake the contract.

Finance

2. Approval of this contract will commit Council to $300,000 (excl. GST) expenditure from the 2016–17 financial year and option for commitment in the following two years. This figure will be incorporated within the proposed MSFW 2016–17 budget as part of annual budgeting process.

Tender evaluation summary

3. The membership of the tender evaluation panel was as follows.

Title and/or company

Generalist or Nominated Speciality

Full / Advisory Member

Fiona Twist, MSFW Event Manager, CoM Generalist

(Chair) Full

Shelley Blake, Strategic Marketing (CASM) CoM Generalist Full

Karen Sorensen, Marketing Officer, CoM Generalist Full

Marcus Stella, Financial Analyst, CoM Finance Advisory

Ibrahim Elkojje, Procurement Governance Analyst, CoM

Procurement Advisory

4. Scoring for the three conforming tenderers:

Summary of final scoring

Company Price

Financial score (30%)

Non-financial

score (70%)

Total score (100%)

Preferred tenderer: Geraldine Frater-Wyeth T/A Event Gallery

$300,000 29.85 61.00 90.85

Tenderer 2 $300,000 29.85 54.50 84.35

Tenderer 3 $298,490 30.00 50.50 80.50

Attachment 1 Agenda item 6.7

Council 23 February 2016

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Conflict of interest

5. No member of Council staff, or other person engaged under a contract, involved in advising on or preparing this report has declared a direct or indirect interest in relation to the matter of the report.

Stakeholder consultation

6. An extensive debrief process post MSFW 2015 was undertaken incorporating face to face debriefs with all large suppliers and stakeholders, written debrief reports and verbal conversations with smaller suppliers and stakeholders. A formal research and economic impact study was also undertaken.

7. Results, outcomes and recommendations from this consultation was referred to and incorporated into the development of the contract for this service.

Relation to Council policy

8. Council policies that relate to this report include Council Plan 2013–17 and the Melbourne Retail Strategy.

Corporate social responsibility

9. The following considerations has been given to the inclusion of Corporate Social Responsibilities in the provision of the service including:

9.1. Aboriginal & Torres Strait Islanders strategies: The inclusion of Aboriginal and Torres Strait Islander talent is a key deliverable within the service specifications

9.2. Environmental: Tenderers were evaluated on methods within their proposal to minimise energy usage and waste in addition to using sustainable/renewable energy sources and materials.

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