DECISION NO. CABINET MINUTE BRISBANE, o2 I I / { / 19g&' The Conveyance of Goods to Cape York Peninsula SUBJECT:-----------------------------­ and Gulf of Carpentaria by Air for Government Service Requirements --00 ·70 ------------------------(Submission No. ~ ) Coples Received at q . 3 0 a.m. l( /19 ~ "P-...__m. 17 / Copies Made CIRCULATION DETAILS GOVERNOR Decision F ile 1 21 , nr I 2 MR. AH.ERN 22 4'(.;0 c~k ' ~:i 3 23 _ MR. GUNN 4'~ ~? / 4 MR. GIBBS 24 .A.~ 5 MR. GLASSO ~ 25 ~_] " MR. AUSTIN 6 26 c_,,_____ _..,'c-7 6-.~ MR. LESTER •J J,, 7 27 I ~ - ,,.. " !Vl.K. l..t.;NNl. 8 28 g MR. HARPER 29 10 MR. MUNTZ 30 11 MR. MCKECH ~IE 31 12 MR. KATTER 32 13 MR. tJEAL 33 14 N.R. CLAUSO~ 34 MR. BORBID ~E 15 35 • 16 MR. RANDEL fJ 36 17 MR. COOPER 37 18 MR. HARVEY 38 MR. LITTLE PROUD 19 39 Master F11 ~ 20 40 Inches cm '1 Kodak Color Co Blue Cyan Green Copy No 6 ') ·] C O N F I D E N T I A L C A B I N E T M I N U T E Brisbane, 21st November, 1988 Decision No. 55554 Submission No. 50070 TITLE ~ The Conveyance of Goods to Cape York Peninsula and Gulf of Carpentaria by Air for Government Service Requirements. CABINET decided:- That approval be given for State Stores Board to enter into a contract .., :3" with Flight West Airlines for the conveyance of goods by air for a 3 .., =r three (3) year period ending 30th November, 1991, with the option to !!! .... ix extend for a further two (2) year period. C (1) ~ Q. I\) a, (') ~ 1 () CIRCULATION: Department of Corrective Services and Administrative :l 0 Services and copy to Minister. -0 Premier's Department and copy to Premier and Treasurer. ~ Treasury Department and copy to Minister. G> Department of Community Services and Ethnic Affairs and n copy to Minister. ~•o ::J State Stores Board. All other Ministers for perusal a nd return. 0 .... - c,., U!..T"t,~ Ji Certified~ S/~e Cabinet. Security Classification "C" - Confidential Sul::mission No. 500 70 Copy No. 2 1 FOR CABINEr RE: THE CONVEYAOCE OF GCX)D.S 'IO CAPE YORK PENINSUI.A AND GULF OF CARPEN.rARIA BY AIR FOR GOVERNMENr SERVICE ROOUIREMENrS 1. Cabinet by Decision No. 54244 of 16th May, 1988 decide::i ''fuat approval be given for State Stores Board to enter into contracts for surface transp::>rt in line with the rec---cmren.dations in Appendix 1 to the sul::mission for a :period of three (3) years wi th the option to extend for a further _period of up to tw:) (2) years.'. In Clause 5 of the sul::mission it was state::i that "Contracts for air services required, will be the subject of a separate suhnission at a later date as it was necessary to again invite fresh tenders.". Fresh tenders closed on the 1st June, 1988. Five tenders were received. A schedule of tenders received is attached. (Attachrrent A) . 2. Fresh tenders for air services were invited. by State Stores after the Depart:rrent of Camrunity Services and Ethnic Affairs advised. that - (a) insufficient inforrration was supplie::i by tenderers to pro_perly assess tenders received; and (b) air services are only required for the follCM.ing areas - ( i) to Lockhart River, Kowanyarra, Edward River, f ran cairns and backloading to Cairns; and (ii) to D:x:m:ldgee fran Mt. Isa and backloading to Mt. Isa. 3. Evaluations of tenders were carried. out by the Depart:rrent of Camruni ty Services and Ethnic Affairs who reccmrended. the acceptance of Flight West Airlines pty. Ltd., at an annual nett value of $621,573.72 for airfreight to all areas. Titls finn's tender was the fourth lowest tender received, but the lowest tender received fran a canpany holding a Supplerentary Airline Licence which allCMS the holder to offer Sched.uled. Air Services. Unsuccessful Tenders 4. 'ilie three lower tenders, West Wing Aviation, OC3 Queensland and a joint venture Yarakan pty. Ltd., and Bwgcolmm Airways, were p:issed. over as they do not hold sche::iuled. service air licences. 'iliese three tenderers only hold charter licences and as such cannot effectively or efficiently fulfill the intent of the contract. Canpanies grante::i sche::iule service air licences are required to have in place nore stringent safety requ.irarents, particularly relative to :neintenance and training, than for those grante::i non-sched.ules air licences . ... /2 - 2 - State Transport Regulati ons require applicant s for scheduled service air licences to be able to darnnstrat e evidence in regard to - (i) Operational Ca:pacity - relating to baggage handling, reservations systsns and tenninal access, 'Where appropriate. (ii) Financial Ca:pacity - testifying to the financial ca:pacity of the organisation to undertake the operations proposed. 5. Severe doubt exists as to the capiliility of the 1~ tenderers to actually rrove the cargo. In :particular, doubt must exist as to the future reliability of t:C3 aircraft which Air Queensland found uneconanical and extrerrely difficult to rraintain. (Air Queensland, was a rrajor airfreight canpany offering Scheduled Air Services.) 6. The only other tender was fran Sunbirri Airlines Fty. Ltd., at an esti.Irated annual value for airfreight to all areas of $662,502.78 nett. 'lliis finn was the only other tenderer, besides the recarnended finn, which was able to offer Scheduled Air Services. 7. The joint venture tender sul::mitted by Yarakan Fty. Ltd., and an aboriginal corporation, ~colm:m Airways , asked for special consideration due to the canpany's endeavour to set up an aboriginal staffed and run airline. Evaluations of this tender revealed - ( i) the canpany only holds a charter licence; (ii) the canpany does not have a suitable on-ground infrastructure to enable reliable door to door freight service; and (iii) the canpany tends to use a t:C3 as their rrain aircraft. 8. The Aviation Section, State Deparbrent of Transport, agrees with the suitability of Flight West Airlines Fty. Ltd., to service this contract. 9. IT IS REX::Cl1MENDED that approval be given for State Stores Boa.r:d to enter into a contract with Flight West Airlines for the conveyance of goods by air for a three (3) year period ending 30th Novanber, 1991 with the option to extend for a further bt.u (2) year pericxi. RUSSELL COOPER Minister for Corrective Services and Administrative Services BRISBANE 17th Novanber, 1988 ro-IEUILE OP 'TINDillS RECeIVill ATTACHMENT 1 . :lfu I ~1E OF TENDERER WE:sT WIN:; I AKAN Pl lID OC.3 G(JEERSLN I 3UNBIBO AIRLINES FLIGHT WEST AVIKITCN AND ~ P1Y LID AT ,r...INES - · I , AIRWAYS (JOINT , ';-;_; LID Vllil'(JRE) - I Rs t.im3. ted Annua 1 Freight REXXMIDIDED Costs f ran Cairns ( and b:l.ckloadinq to cairns) to I...ockhart River (est. tonnage - 40) No offer $ 60,168.00 S 55,354.56 * $ 68,631.80 $ 60,347.09 •' to Edward River ' I I I (est. tonnage - 135) No offer $189,670.60 I $201,863.71 I * $243,914.09 $228,.282.83 I to Kowanyarra I (est. tonnage - 130) No offer $162,547.50 I $182,053.20 * $211,416.89 $198,435.80 fran Mt Isa (and b:l.ckloadinq I I to Mt Isa) - to Ccx:rradgee I (est tonnage - 100) $105,000.00 $120,480.0C No offer I * $138,540.00 $134,508.00 I 'IDrAL VALUE SlOS,000.00 $532,866.10 $439,271.47 * $662,502.78 I $621,573.72 Type of Of::€ra_ting License Charter Charter Charter Supplarentary Supplsrentm:y Airline Airline Fre:::p.J.ency of Service As rEqllired When aircraft Lockhart River Four flights fer I Three flights has naxi.mum weekly, other areas -week plus dedicated per ½e€k ea.ch loading twice weekly freighter service area as rEqllired ' 1UI'E:- Est..i.rrate:i Ji.nnual Freight. Costs are b:l.se:i on figures supplie:i foi(the· 1988 wet season by the Stores Control, cairns for Lockhart River, Fnward River and Kcwanyarra and the Dep:rrt::rrEnt of ~ty Services store at D::x:nadgee . * Sunbird Airlines costs includes a delivery charge of $10.00 per delivery. ...- '.:'J .