DECS SCHOOL BUS TRANSPORT INDUSTRY BRIEFING

1. DECS SCHOOL BUS TRANSPORTINDUSTRY BRIEFING September 2010

2. DECS SCHOOL BUS TRANSPORT Industry Briefing Session Background Current Transport Arrangements Legislation / Policy Recent Government Announcements Procurement Process - New Bus Services Contracts Timelines DECS Bus Supply Panel Summary and Questions Presented by: Roberto Bria – Director Corporate and Business Services John Scalzi – Assistant Director Business Services

3. DECS SCHOOL BUS TRANSPORT Background The Department of Education and Children’s Services (DECS) currently provides: 509 free school bus services to more than 16,000 students Predominantly in the rural areas of the State 283 private contractor services through 104 contractors; and 226 DECS owned and operated buses.

4. DECS SCHOOL BUS TRANSPORT Current Transport Arrangements In 2000 DECS established fixed term contracts for a 5+5 year term through a staged approach for the private contracted services. DECS was assisted with the development of this strategy by the Bus and Coach Association and Passenger Transport Board. A Costing benchmark was developed and used in evaluating tenders to ensure value for money.

5. DECS SCHOOL BUS TRANSPORT Legislation / Policy Education Act 1972 - the Minister for Education may provide free transport for students attending primary and secondary govt schools. August 2006 - government announcement of the gradual phasing in of the following safety and comfort measures as school buses were replaced: March 2007- government announced that “Private Operators will be required to tender for school transport services that meet the new safety package, including the need for seatbelts to be fitted, when their contracts expire.”

6. DECS SCHOOL BUS TRANSPORT Recent government announcements Cabinet and State Procurement Board approval News Release 13 September 2010 and Budget announcement – main points Funding commitment All new buses (DECS fleet and new private bus operator contracts) to have seat-belts, air-conditioning and other safety standards A new two-stage procurement process for each route or cluster of routes The procurement process will enable direct negotiation with existing operators, or where appropriate, to test the market The procurement process will take into account individual operators’ records of providing quality service A panel of suppliers established to assist contractors to purchase new buses Industry briefings will be held in key regional centres

7. DECS SCHOOL BUS TRANSPORT Procurement Process - New Bus Services Contracts Procurement process to commence immediately Current Contracts will be honoured Two Stage Procurement Process * Stage 1 – Expression of Interest * Stage 2 – Request for Proposal New contracts established by 2016 Initial contract term - 7 year term + 4 + 4 year extension options DECS to review each run as per normal process to ensure ongoing viability

8. DECS SCHOOL BUS TRANSPORT Stage 1 – Expression of Interest Develop RFP release strategy for Stage 2 (incorporating Run reviews) Issue EOI Establish list of potential providers Stage 2 – Request for Proposals No EOI response to a particular route DECS bus available End No response received Invoke new procurement process or allocate a DECS bus If no DECS bus, call tenders/quotes Establish Contract End RFP issued to EOI Registrant(s) as per matrix list One response received Within Benchmark Establish Contract End Above Benchmark Negotiate Offer Negotiation successful Evaluate responses to select preferred offer Multiple responses received Negotiation not successful

9. DECS SCHOOL BUS TRANSPORT Stage 1 – Expression of Interest All bus runs will be published Interested parties invited to express interest for any run(s) The EOI document is the mechanism for interested parties to register their interest in the provision of school bus runs Advertised on SA Tenders Website www.tenders.sa.gov.au Need to complete ALL details as requested in EOI document Notes: DECS will develop the RFP strategy following the evaluation of EOI process Stage two will seek RFP from EOI Registrants in the first instance

10. DECS SCHOOL BUS TRANSPORT Stage 1 - Expression of Interest document Main points: Three parts to EOI document: Part A – Invitation and Bid Rules Part B – Requirements and Specification Part C – Response Documents Closing date – seeking feedback from the market Single Contact person Bid rules to ensure probity List of bus runs To submit an EOI Registrants MUST complete all requirements of Part C Registrants will be required to submit the following as part of the EOI response: - Company details (ref Response Schedule 1) - Completed Statement of Compliance (ref table 1 Response Schedule 2) Completed Bus Run nomination (Attachment 1, Response Schedule 3)

11. DECS SCHOOL BUS TRANSPORT EXAMPLE – all runs published but subject to route reviews – some details (such as Klms and % on dirt) are approximate

12. DECS SCHOOL BUS TRANSPORT Stage 1 – Expression of Interest Develop RFP release strategy for Stage 2 (incorporating Run reviews) Issue EOI Establish list of potential providers Stage 2 – Request for Proposals No EOI response to a particular route DECS bus available End No response received Invoke new procurement process or allocate a DECS bus If no DECS bus, call tenders/quotes Establish Contract End RFP issued to EOI Registrant(s) as per matrix list One response received Within Benchmark Establish Contract End Above Benchmark Negotiate Offer Negotiation successful Evaluate responses to select preferred offer Multiple responses received Negotiation not successful

13. DECS SCHOOL BUS TRANSPORT Stage 2 – Request for Proposal All Registrants will be invited to provide a response to the Request for Proposal document in relation to that particular run. Main points: Main parts of RFP document include: Invitation and Bid Rules Specification – including: Lap/sash seat-belts Air-conditioning ADR 80/02 (Euro4) from January 2007, ADR 80/03 (Euro5) from 2011 Roll over strength Flashing lights and school bus signage Bus may be painted “Dulux School Bus Yellow” (Optional) Response Documents Draft Contract document

14. DECS SCHOOL BUS TRANSPORT Timelines Industry Briefings – 24 September to 1 October 2010 Release EOI through the SA Tenders website – 5 October Receive EOI – 4 to 8 weeks from EOI release date depending on feedback from Industry Briefings Analyse EOI responses and develop RFP release strategy (incorporating Route reviews) – 4 weeks from EOI closing date – say to mid December 2010 Issue RFP’s – commencing mid January 2011 and on-going Evaluate RFP responses and negotiation – allow 2 to 4 weeks as a guide Formalise contracts

15. DECS SCHOOL BUS TRANSPORT DECS Bus Supply Panel DECS is currently in the process of establishing a pre-qualified supplier panel arrangement for the purchase of DECS buses – refer Tenders SA website The panel will include small, medium and large buses To secure the best possibly delivery lead times DECS bus services contractors may access the panel at their sole discretion or purchase from any supplier DECS bus services contractors will however need to negotiate their own purchasing terms including price

16. DECS SCHOOL BUS TRANSPORT Summary and Questions Expression of Interest Closing date: tell us what you think! Contact Person: Ryan Fowden Procurement Unit Ph (08)8226 1538 Email: Ryan.Fowden@sa.gov.au Any questions?