Contract Award Notice Details
Contractor Name THE GEO GROUP AUSTRALIA PTY LIMITED
ACN 051130600
ABN
24 051 130 600
Is an Aboriginal or Torres Strait Islander owned business No
Street Address Level 18, 44 Market Street
Town/City Sydney
State/Territory NSW
Postcode 2000
Country AUSTRALIA
Not Applicable
$346,042,440.00 (Goods or services supplied)
$436,042,440.00 (Goods or services supplied)
For Extension disclousure - Not Applicable
The Contractor receives an Operational Service Level Fee for providing operational services at the Correctional Centre.
The Contractor is obliged to maintain the Correctional Centre building and equipment and the Operational Service Level Fee includes a component for maintenance of the Correction Centre building and equipment.
Limited
For Extenstion disclosure - Only subject to approved variation in accordance with contract terms
The Contractor receives a fee, known as the Operational Service Level Fee. The Operational Service Level Fee includes a performance linked component.
The Operational Service Level Fee is adjusted if the number of inmates in the Correctional Centre during a calendar quarter either exceeds or is less than the specified Operational Service Level.
Further, if the number of inmates participating in opioid pharmacotherapy exceeds the Operational Service Level during a calendar quarter the Commissioner pays an additional Opioid Pharmacotherapy Program Fee.
The Operational Service Level Fee and the Opioid Pharmacotherapy Program Fee are indexed each financial year. Labour and non-labour costs are escalated at different rates. Escalation is calculated annually.
The Operational Service Level Fee may be varied if the Contractor is required to vary the way in which services under the contract are provided (including, for example, where there is a change in Government policy or a change in the management specifications).
The contract has an option to extend the contract by two further terms, each of sixty months (or 260 weeks) duration.
First option has been exercised.
Summary of the criteria against which the various tenders were assessed
Evaluation Criteria | Weighting |
---|---|
Non- Price |
60% |
Price |
40% |
No
Not Applicable
Not Applicable
Junee Correctional Centre
Address: 197 Park Ln, Junee NSW 2663
Phone: (02) 6924 3222
Agency Contact DCJ Procurement Team
Street Address Locked Bag 5000
Town/City Parramatta
State/Territory NSW
Postcode 2124
Country AUSTRALIA
Email Address procurement@dcj.nsw.gov.au
Not Applicable
Not Applicable
A cost-benefit analysis was not undertaken in the evaluation. As only one tender was received, it was considered that a more valid comparison was a detailed analysis of the increase from the current to the proposed operational fee. In this way, stakeholders were advised of and could consider the reasonableness of the proposed increase.
A Net Present Value was not undertaken in the evaluation as this tender did not involve a construction and operational phase. At the same time, as only one tender was received, there was no requirement to compare the Whole of Life costs between alternative tenders. As such, it was considered that the appropriate tool was a detailed comparison between the current and proposed operational fee of the incumbent contractor.
For Extension - N/A
The Public Sector Comparator costings are based on:
* facilities management estimates from both Corrective Services NSW (unscheduled maintenance) and two quantity surveying firms (scheduled tasks);
* operating cost estimates based on other correctional facilities;
* information from the Public Sector Comparator for the Mid-Western Correctional Centre (February 2003); and
* operations commencing April 2009 and occurring over a five year period.
For Extension - Commercial in Confidence
N/A
For Extension - All risks of and associated with the occupation, use, physical conditions and characteristics of the Correctional Centre and its surroundings, as between the Contractor and the Commissioner, rest with the Contractor.
Not Applicable
For Extension - Commercial in Confidence
1) Performance Security: the Contractor is required to provide to the Commissioner performance security. The performance security is an unconditional payment obligation to pay to the Commissioner $2,000,000 in certain circumstances, including where the Contractor is in default and has failed to remedy or rectify that default.
2) Maintenance Guarantee: 12 months prior to the date of completion of the contract the Commissioner will undertake an assessment of the condition of the Correctional Centre buildings and equipment. If the assessment discloses non-compliance with agreed Maintenance Standards or the agreed Asset Maintenance and Replacement Plan and the Contractor fails to provide the program of works or restore the condition of the Correctional Centre buildings and equipment to an acceptable standard within the required time, then the Contractor is required to lodge with the Commissioner a bank guarantee to the value of $1,000,000 plus the value of outstanding works. This bank guarantee can be held until the works are completed or should the works not be completed by a time 3 months prior to the Termination Date then the Commissioner may upon giving notice to the Contractor draw down the bank guarantee and arrange the completion of the works.
For Extension - Please refer to redacted documents
Personnel: the Contractor is required to supply adequate personnel (in accordance with a Staff Deployment Plan approved by the Commissioner) and provide management, maintenance and support activities to enable uninterrupted performance of the services required under the contract. All relevant personnel employed or engaged by the Contractor in connection with Correctional Centre must be authorised by the Commissioner.
Training: the Contractor must have a pre-service training program approved by the Commissioner for custodians of inmates before commencing training. All custodians must complete the training and be authorised pursuant to the Crimes (Administration of Sentences) Act 1999 (NSW).
Occupation: the Contractor has a contractual right to occupy the Correctional Centre. The contract does not confer any right of tenancy or estate.
Risks: all risks of and associated with the occupation, use, physical conditions and characteristics of the Correctional Centre and its surroundings, as between the Contractor and the Commissioner, rest with the Contractor.
Operating Manuals: the Contractor must operate the Correctional Centre in accordance with the Operating Manuals approved by the Commissioner. The Contractor must obtain the consent of the Commissioner to alter the Operating Manuals.
Intervention: Corrective Services NSW may intervene at the Correctional Centre (including riot, siege or hostage situations or other critical incidents) The Contractor may also request Corrective Services NSW's assistance in such situations at its own cost.
Performance Linked Fee: a component of the Operational Service Level Fee is performance linked. The Performance Linked Fee comprises a "fixed element" (resulting in fee reductions in respect of certain serious incidents) and a proportional element (linked to agreed Key Performance Indicators).
Sinking Fund: the Contractor must establish a separate interest bearing bank account with funds at call for the purposes of a sinking fund to assist the Contractor meet its obligations under an agreed Asset Maintenance and Replacement Plan. The Contractor is required to contribute to the sinking fund every calendar quarter. The Commissioner is able to have recourse to the sinking fund to perform maintenance or repairs if the Contractor fails to maintain, replace or upgrade any Asset in accordance with the agreed Asset Maintenance and Replacement Plan.
Termination or suspension: the contract can be terminated or suspended for change of control, default or where a consistent pattern of critical incidents has occurred (subject to a public interest test).
Step-in: if the Commissioner intervenes under the contract, the Commissioner may appoint a "Step In Operator" (including Corrective Services NSW itself) to give directions to the contractor or to perform the contract.
Indemnity: the Contractor comprehensively indemnifies the Commissioner and the Corrective Services NSW against any loss or claim arising from or in connection with the contract.
Sub-contracting: the Operator is not permitted to sub-contract the whole or any part of the services to be performed under the contract except with the prior written consent of the Commissioner and on such conditions as the Commissioner thinks fit.
Insurance: the Contractor is required to maintain a comprehensive suite of insurances for the term of the contract and, where relevant, for an appropriate period subsequently.
Not Applicable
Not Applicable
Not Applicable