More Trains, More Services (MTMS) Stage 2 - Incentivised Delivery Agreement - South Works Package - IPD-19-8197

Contract Award Notice ID IPD-19-8197

Publish Date 31-May-2020

Category Infrastructure

Agency Transport for NSW

Particulars of the goods or services to be provided under this contract

Incentivised Delivery Entity delivered infrastructure in support of service improvements on the heavy rail network in particular along the T8 Airport line and South Coast lines.

The program included projects such as but not limited to, the following:

Waterfall Infrastructure Upgrade;
Infrastructure and stabling upgrades of the South Coast Line;
Mortdale Maintenance Centre upgrade;
Power upgrades; and
Asset Rationalisation, Asset Resilience, Transport Integration and sustainability.

The scope of works includes installation of crossovers, substation and traction supply upgrades, new substations, network power supply upgrades, as well as all signalling, combined services, route, drainage and overhead wiring to support new track infrastructure.

Additional Projects and Ad Hoc Works may be identified and delivered by the Incentivised Delivery Entity (IDE) in accordance with the Incentivised Delivery Agreement (IDA). Such arrangements will be disclosed via separate Contract Award Notices.

The Target Outturn Cost (TOC) has been adjusted due to cost impacts relating to:

Removal and Carting of Spoil Removal
MMC Toilet Block
Axle Counters – Change in Standard
W Beam Traffic Barrier Waterfall Gate 1
Additional SAO and EPA Announcement System at Waterfall
Additional Signalling Scope – South Coast
o Thirroul
o Wollongong
o Coniston
o Port Kembla
o Kiama
Adjustment to Compensation Framework (PMB)
o Senior staff/managers
o IT and associated direct costs for the above; and
o Program office costs (including rent, utilities and office costs).

Original Contract Duration 17-Apr-2020 to 17-Apr-2025

Amended Contract Duration 17-Apr-2020 to 16-Apr-2025

Contract Award Notice Details

Contractor Name Laing O'Rourke Australia Construction Pty Ltd and Kellogg Brown & Root Pty Ltd
Trading Name Transport for Tomorrow
ACN -
ABN 58 351 239 872
Is an Aboriginal or Torres Strait Islander owned business No
Street Address Level 21, 100 Mount Street
Town/City North Sydney
State/Territory NSW
Postcode 2060
Country AUSTRALIA

Related RFT ID
ISD-18-7764

Other private sector entities involved in, with an interest in or benefiting from this contract

Laing O'Rourke Australia Construction Pty Ltd

Kellogg Brown & Root Pty Ltd

Estimated amount payable to the contractor (including GST)

$250,093,625.10 (A project to be undertaken)

Amended estimated amount payable to the contractor (including GST)

$403,757,183.18 (A project to be undertaken)

Any provisions for payment to the contractor for operational or maintenance services

Not Applicable

Method of Tendering

Multi-Stage

Description of any provision under which the amount payable to the contractor may be varied

TTfNSW Incentivised Delivery Agreement (IDA):

Clause 17.19 and Schedule 32.1 Options
Clauses 20.3–20.7 Target Adjustment Events
Clause 21.8 Set-off, withholding and reduction
Clause 27 Termination or step in
Schedule 7 Compensation Framework — ‘Reimbursable Costs’, ‘Fee’ & ‘Gainshare/Painshare Regime’

20.4 Adjustments to Compensatioin Framework

The IDA also contains the following provisions relating to Additional Projects and Ad Hoc Works:

Clause 11.1(a)(ii) provides for the payment of Project Definition Services for a proposed Additional Project.
Clause 12 provides for the acceptance of a proposed Additional Project.
Clause 13 provides for the provision and payment of Early Execution Works for a proposed Additional Project.
Clause 23 provides for the provision and payment of Ad Hoc Works.

Description of any provisions under which the contract may be renegotiated

Not Applicable

Summary of the criteria against which the various tenders were assessed

Evaluation Criteria	Weighting
Commercial Criteria
Proponent's approach to MTMS Program Management
Proponent's approach to MTMS Stage 2 Delivery
Proponent's Proposed Team
Refer to ISD-18-7764 for Expression of Interest Minimum requirements Stage 1

Contract Contains Agency 'PiggyBack' Clause

Industrial Relations Details for this Contract

Name of Sub-contractors (incl. ABN & ACN)

JMD Railtech Pty Ltd ABN 64 116 761 105
EnerMech Pty Limited ABN 32 136 435 062
N D Y Management Pty Ltd ABN 29 003 234 571
Cardno (NSW/ACT) ABN 95 001 145 035
CCG Architects Pty Ltd ABN 39 157 777 065
Enstruct Group Pty Limited ABN 32 094 570 671
Keltbray International PTY Limited ABN 19 633 905 441
Lindsay Dynan Consulting Engineers Pty Ltd ABN 46 159 323 743

Applicable Industrial Instruments

Not Applicable

Location of Work

Not Applicable

NSW Industrial Relations inspectors routinely audit the employment records of contractors and sub-contractors to all NSW Government contracts. The results of these inspections are published on the NSW Industrial Relations website.

Agency Contact Attn: Project Information Officer, Infrastructure and Place, TfNSW

State/Territory NSW

Country AUSTRALIA

Email Address ProcurementTeamContractDisclosure@transport.nsw.gov.au

Other Information

The disclosed value represents the Target Outturn Cost (TOC) plus an additional 10% for GST. This value may be overstated if GST does not apply to (all parts of) the TOC.

Note:

The TOC includes TfNSW owner costs that are also disclosed under IPD-19-8035B and IPD-19-8362B; and
Compensation Framework Adjustments 1 and 2 have been disclosed under IPD-19-8035B and IPD-19-8362B.

Original TOC (including Option 1) of $227,357,841 (excl. GST).

The TOC has been adjusted as follows:

Target Adjustment Event 01: an additional $1,764,705 (excl. GST)
Target Adjustment Event 02: an additional $533,316 (excl. GST)
Target Adjustment Event 03: an additional $1,683,993 (excl. GST)
Target Adjustment Event 06: an additional $1,623,491.64 (excl. GST)
Target Adjustment Event 10: an additional $479,752.83 (excl. GST)
Target Adjustment Event 17: an additional $901,190.09 (excl. GST)
Target Adjustment Event 25: an additional $198,460 (excl. GST)
Target Adjustment Event 26: an additional $56,500.41 (excl. GST)
Target Adjustment Event 28: an additional $1,065,226 (excl. GST)
Target Adjustment Event 27: an additional $58,909.64 (excl. GST)
Target Adjustment Event 29: an additional $14,102,447.79 (excl. GST)
Target Adjustment Event 30: an additional $51,833,841 (excl. GST)
Target Adjustment Event 31: an additional $134,663.46 (excl. GST)
Target Adjustment Event 32: an additional $30,628.27 (excl. GST)
Target Adjustment Event 33: an additional $3,704,866.53 (excl. GST)
Target Adjustment Event 34: an additional $25,221,960 (excl. GST)
Target Adjustment Event 36: an additional $123,591.57 (excl. GST)
Target Adjustment Event 37: an additional $48,529.41 (excl. GST)
Target Adjustment Event 38: a reduction of $1,089,912 (excl. GST)
Target Adjustment Event 40: an additional $19,646,069 (excl. GST)
Target Adjustment Event 41: an additional $59,082.35 (excl. GST)
Target Adjustment Event 42: an additional $5,722,462.69 (excl. GST)
Target Adjustment Event 42: an additional $194,623.50 (excl. GST)
Target Adjustment Event 42: a reduction of $63,066.18 (excl. GST)
Target Adjustment Event 43: an additional $318,669.50 (excl. GST)
Target Adjustment Event 45: an additional $253,725.08 (excl. GST)
Target Adjustment Event 48: an additional $33,023.13 (excl. GST)
Target Adjustment Event 51: an additional $11,053,394 (excl. GST)
Target Adjustment Event 54: N/A