AlburyCity - Council Meeting Agenda CM13.2. Albury Airport Enhanced Screening Equipment Tender Award DATE 5 October 2020 FIL REFERENCE FIL20/01572 CONFIDENTIAL No FURTHER ENQUIRIES Ambrose Glass PHONE 02 6023 8273 Service Leader Business & Lifestyle AUTHOR Nick Politis Purpose of Report To recommend a preferred contractor for the procurement, installation and commissioning, staff training and ongoing servicing of new airport body and baggage screening equipment for the Albury Airport. Background The Department of Home Affairs has amended the Aviation Transport Security Regulations 2005 to strengthen the aviation security framework through the Aviation Transport Security Amendment (Security Controlled Airports) Regulations 2019. These amendments will take effect at Albury Airport from 30 June 2021. The regulatory changes include introducing a new Airport Tier Model to classify airports and provide a new definition of a screened air service. Albury Airport under the new regulations will therefore need to upgrade the current passenger and carry-on baggage screening equipment in order to maintain compliance, noting all other current checked baggage screening equipment at the Albury Airport meets the amended regulations and will not need to be replaced. On 12 August 2019 the Department of Home Affairs issued all Australian Airports a list of operationally compliant equipment which meets the new standards to guide Airports in their procurement activities. To assist regional airports in meeting the new aviation security screening requirements, the Department of Home Affairs and the Department of Industry, Innovation and Science announced the Regional Airports Security Screening Fund (RASSF). Under the RASSF, Albury Airport was granted $405,000 in May 2020 to contribute towards procuring and commissioning the enhanced screening equipment. Further to this, and recognising that many airports will require capital works to support the installation of the new screening equipment, the Department of Infrastructure, Transport, Regional Development and Communications have subsequently announced the Regional Airports Screening Infrastructure (RASI) program. Albury Airport made a submission under the RASI program on Friday 24 July 2020, outcomes of this submission are yet to be released. Tenders were invited for Contract No.20/01572 to supply and install an Airport Body Scanner and Multi View Baggage X-Ray system. The tender was advertised in the Border Mail, Sydney Morning Herald and on Tenderlink. Applications closed at 12.00pm AEST on Wednesday 2 September 2020, with three compliant submissions received. Agenda - AlburyCity Council Meeting – Monday 26 October 2020 1 AlburyCity - Council Meeting Agenda Council’s budget allocation for the purchase of the equipment and associated installation and training is $405,000, as per the RASSF grant. It is anticipated the contract will be completed in the 2020/21 financial year with a warranty period and liability period extending up to the 2022/23 financial year. Tender Assessment At the close of tenders, submissions were received from the following companies: Leidos Security Detection and Automation Australia Group Pty Ltd (North Melbourne, VIC); Smiths Detection (Australia) Pty Ltd (Botany, NSW); and Rapiscan System Pty Ltd (St Leonards, NSW). All tenders were evaluated in accordance with Council's Procurement Policy and Guidelines. The assessment panel for the tender comprised of: Team Leader Airport Operations – Nick Politis; Team Leader Procurement and Contract Management – Elisha Lieschke; Airport Compliance Supervisor – Carmel Hilton; and Airport Business Development Officer – Lisa Mangelsdorf. Conformity Check A conformity assessment was undertaken to ensure all submissions received were in accordance with the contract documentation and specifications. Company Pricing Details Supporting Insurance & WHS Comment Information Package Rapiscan System Yes Yes Yes Compliant Pty Ltd Leidos Security Yes Yes Yes Compliant Detection and Automation Australia Group Pty Ltd Smiths Detection Yes Yes Yes Compliant (Australia) Pty Ltd As indicated above, the conformity check showed all three submissions to be compliant, supplying the required documentation and offering equipment that meets the Department of Home Affairs list of operationally compliant equipment, and were therefore progressed for further consideration as part of the tender evaluation process. Agenda - AlburyCity Council Meeting – Monday 26 October 2020 2 AlburyCity - Council Meeting Agenda Qualitative Assessment The qualitative assessment considered a range of issues including: Past performance – including referee checks, relevant experience and expertise in performing same or similar projects; Methodology and program – project plans, work methods, media, training, ongoing maintenance and proposed timeline in consideration of COVID-19 impacts; Capacity – current and future commitments, work in progress and COVID-19 constraints; Capability – including availability of resources, equipment supply arrangements, and contract management capabilities; and Benefit to local region – social and community benefits to the Albury/Wodonga region. Company Past Methodology Capacity Capability Local Total (100) Performan & Program (15) (15) Benefit (10) ce (30) (30) Leidos 26 24 12 12 1 75 Security Detection and Automation Australia Group Pty Ltd Smiths 26 24 10 11 1 72 Detection (Australia) Pty Ltd Rapiscan 26 16 11 11 2 66 System Pty Ltd Leidos Security Detection and Automation Australia Group Pty Ltd Based in North Melbourne, VIC under the international Leidos brand, this global-scale and well- credentialed company has provided equipment and ongoing services to Albury Airport since 2009. Field technicians are based in NSW and Victoria allowing service and maintenance schedules to continue even during the COVID-19 pandemic. Leidos Security Detection and Automation Australia Group Pty Ltd has undertaken a number of similar projects with other Australian and New Zealand Regional Airports, including DHL Global Forwarding, Australian Government Department of Home Affairs, Victorian State Department of Justice and AVSEC Aviation Security Service, New Zealand. Leidos Security Detection and Automation Australia Group Pty Ltd current work commitments include installation of similar equipment and services to the following airports; Geraldton Airport WA, to be Agenda - AlburyCity Council Meeting – Monday 26 October 2020 3 AlburyCity - Council Meeting Agenda completed in November 2020; Devonport Airport TAS, to be completed in December 2020; Dubbo City Regional Airport NSW, to be completed in December 2020; Kununurra Airport WA, to be complete in December 2020; and Onslow Airport WA, to be completed in December 2020. During the period of planned installation for Albury Airport during the first quarter of 2021, Leidos Security Detection and Automation Australia Group Pty Ltd have reported no competing priorities. Referees from other regional airports were contacted and the information provided indicated the company and its equipment were highly recommended, performing particularly well in areas of user experience, ease of use, the company’s project management, cooperation, environmental preservation and quality of service support and workmanship. In 2009, Albury Airport procured a checked baggage screening system from Leidos Group (at the time called L3), which is currently in use and serviced regularly by Leidos. The panel assessors at this time rated the procurement and associated activities highly, especially the capability and technical assessment which was rated as excellent. Leidos Security Detection and Automation Australia Group Pty Ltd utilises a repeatable methodology for their projects which incorporates the unique requirements for Albury Airport. Their submission contained a detailed methodology to minimise impact to Albury Airport operations, drawings, product specifications detailing enhanced and non-invasive user experience, warranty and service needs, as well as outlining their intended timeline of 129 days to meet AlburyCity’s requirements and phases of the project. The company have included a Workplace Health and Safety management system as part of their submission. Given the highly technical nature of this equipment, the legislation requirements and that Leidos Group is a company based outside of the local community, there is limited direct local benefit to the local economy as a result of this procurement activity beyond accommodation, meals and expenditure on incidental items by their project and servicing teams. Figure 1. Leidos Security Detection and Automation Australia Group Pty Ltd equipment User to stand stationary in neutral position within Body Scanner during scanning. Agenda - AlburyCity Council Meeting – Monday 26 October 2020 4 AlburyCity - Council Meeting Agenda Body Scanner ProVision 2 Carry-On Baggage Multi-View X-Ray ACX UPS Power Supply included 6.4 MV (Multi-View) Throughput: 300 passengers per hour 5m of roller bed included & UPS Power Supply Smiths Detection (Australia) Pty Ltd Established in 1998 within Australia, Smiths Detection (Australia) Pty Ltd is one of five operating divisions of Smiths Group, a global technology company based in the United Kingdom. Since 2011 Smiths Detection (Australia) Pty Ltd has provided equipment and a continued maintenance service to Albury Airport with their Field Service Engineers based in Sydney. Smiths Detection (Australia) Pty Ltd currently have a number of similar projects