Council Minutes - Town of Cambridge

COUNCIL MINUTES
TUESDAY 20 DECEMBER 2011
CR11.164 SURF CLUB BUILDING AND COMMERCIAL DEVELOPMENT AND WEMBLEY
GOLF COURSE HOSPITALITY DEVELOPMENT - TENDER T37-11
HOSPITALITY LEASING SPECIALIST
PURPOSE OF REPORT:
To select a preferred Hospitality Leasing Specialist for both the Surf Club Building and
Commercial Facilities Development and Wembley Golf Course Hospitality Development
projects.
BACKGROUND:
Expressions of Interest (EOI) were sought in May 2011 from firms to provide advice for the
hospitality development proposed for the Surf Club Building and Commercial Facilities
Development at City Beach and Hospitality Development at Wembley Golf Course.
Due to the relatively small number of suppliers, it was decided to appoint one consultant for
both projects, however, costs will be tracked against each project individually.
Only one of the select tenders submitted a formal tender. The tender offer could not be
reconciled with the scope of works required in the specification. Further interviews with the
single tenderer resulted in a small reduction in the tender price, but it was still far short of the
value for money expectations. It was deemed not suitable.
The Local Government (Functions and General) Regulations provides that Tenders need not
be publicly invited within a 6 month period of last calling for tenders and no suitable tenderer
was contracted (Regulation 11 (2) (c) (i) refers).
Subsequent to the tender being rejected, two other potential suppliers have been drawn to the
attention of the Town who appear to have the capability to undertake the work to the desired
standard. A select tender was sought from these suppliers as well as the original single
tenderer based on a more refined scope of work. One potential supplier decided not to submit a
tender, leaving two tenders to assess.
DETAILS:
Basis of Works
Each project is anticipated to have two distinct phases - the first being development of a
business case which determines the scale of the project and then the second phase being the
detail design and construction of the works. The second phase of the project is dependent on
the business case developed and Council decision to proceed.
The tender is structured such that pricing is certain for both phases of work, however, the Town
is not bound to commit to the second phase of the project.
Tender Submissions
The selection of the Hospitality Leasing Specialist for this project is largely based on an
assessment of their hospitality experience, ability to develop robust business case models,
industry contacts and/or experience in securing operators and ability to work within the team to
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