Doing business with Canberra Metro

Doing businesswith Canberra MetroSupplying goods and services to Canberra Metro:

A guide for Canberra Region businesses

November 2016

Light Rail Business Link

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Doing Business with Canberra Metro - November 2016

Are you interested in becoming a supplier to Canberra’s largest infrastructure project – the Light Rail?

This guide has been developed to help you navigate the process, learn more about the consortium building the light rail and to answer questions that you might have. Of course there are also people available to talk to if your questions are not answered here.

Contact the team by emailing [email protected]

Contents

How will light rail be built? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

What is a Public Private Partnership or PPP? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Who is Canberra Metro? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3

Canberra Metro Approach . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4

How will Canberra Metro source suppliers? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

What kind of services/suppliers does Canberra Metro need? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

Does Canberra Metro have work packages ready to be released? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 5

How does Canberra Metro make decisions on suppliers? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

Will the light rail project use local contractors? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6

What opportunities will there be for local businesses when construction is finished? . . . . . . . . . . . . . . . . . . . . . 7

What is a typical tender process? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7

Pre-requisites for working with Canberra Metro . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

What if I have a product or service that I think Canberra Metro can use, but it isn’t on

the list of goods and services expected to be purchased? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 8

How do I promote my business to Canberra Metro? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Is doing business with Canberra Metro complicated? . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 9

Work Package List - current as at August 2016 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 10

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How will light rail be built? This first stage of light rail will be delivered through a Public Private Partnership (PPP). PPPs are used by

governments around the world to provide significant public infrastructure. They offer opportunities for

improved service delivery, better value for money, enhanced innovation and integrated whole-of-life project

management, in this case from construction to operation.

Canberra’s light rail PPP is between the ACT Government and the Canberra Metro consortium. The PPP is

for approximately 23 years and includes the design, construction, operation and maintenance of stage one

of the light rail network for 20 years. At the end of the contract term, the ACT Government will assume

ownership of the light rail network assets.

Over the term of the contract the ACT Government will pay Canberra Metro for the costs of construction

and components of the operational costs, similar to the way the Government pays for new buses and

for the operation and maintenance of Canberra’s bus network. The difference with a PPP is that the ACT

Government does not pay these costs upfront and the cost of light rail is spread over the next 20 years.

As a result, the consortium (not the government) is responsible for all aspects of the delivery.

What is a Public Private Partnership or PPP? A PPP is a long-term business relationship between the government and the private sector to provide

public infrastructure. Under this type of contract, the private sector has responsibility for delivery of the

infrastructure and is financially rewarded based on performance.

Through Infrastructure Australia a National PPP Policy Framework allows the Australian, State and Territory

governments to consider a PPP for any project with a capital cost in excess of $A50 million.

The ACT Government selected the PPP model of delivery for this project based on financial analysis, market

feedback and consideration of other Australian light rail projects.

Who is Canberra Metro?Canberra Metro is a consortium consisting of Pacific Partnerships, CPB Contractors, John Holland, Mitsubishi

Corporation, Aberdeen Infrastructure Investments, DB Engineering & Consulting (formerly Deutsche Bahn

International), CAF and Mitsubishi UFJ Financial Group Ltd (MUFG).

� The design and construction will be undertaken by CPB Contractors and John Holland working with

local employees and sub-contractors.

� The on-going operations and maintenance of the network will be provided by Pacific Partnerships and

John Holland in partnership with DB Engineering & Consulting.

� CAF will supply and maintain the light rail vehicles.

� Pacific Partnerships, John Holland, Mitsubishi Corporation and Aberdeen Asset Management are

providing equity funding for the project.

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Canberra Metro approachCanberra Metro’s aim is to maximise local participation and employment, including training and

apprenticeships. Using the in-house expertise and knowledge of CPB Contractors and John Holland, and

their operations partner, DB. John Holland recently achieved more than 60% local participation rate across its

six LNG projects based on Curtis Island in Queensland.

Light rail is a new industry for Canberra. The project is an opportunity to build the capability of the direct

workforce, the workforce of supplier/subcontractor and partner organisations, the local community and

the broader construction industry in the ACT region. Canberra Metro’s strategy for maximising these

opportunities is based on:

� Living partnerships – local business engagement and initiatives

� Collaboration with the Canberra Business Chamber

� Industry Capability Network (ICN) Gateway

� Local SME (small and medium enterprise) participation program. Canberra Metro will look to establish a

local SME participation program to inform potential tenders and supply opportunities. The program will

be developed with other related organisations, such as:

» Enterprise Connect (Australian Government Initiative)

» SME Association of Australia

» Australian Small and Medium Enterprises Network.

� Work packages encouraging local supplier participation.

Through local business initiatives, Canberra Metro will focus on maximising opportunities for local suppliers

and subcontractors in the delivery of the project.

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How will Canberra Metro source suppliers?

Due to the nature and size of the construction of Stage 1 of the light rail, goods and services will be bundled

into ‘work packages’. Work packages are distinct parcels of work that have a defined beginning and end

and clear contract deliverables. The work packages will be of a variety of sizes providing opportunities for

businesses of a range of sizes.

Requests for quotes for each work package will be issued by Canberra Metro throughout construction,

although the majority of sub-contractors and suppliers will be engaged by early 2017.

In many instances Canberra Metro will not be going to ‘open tender’ for work packages, rather going to a

small number of businesses with demonstrated, relevant expertise.

What kind of services/suppliers does Canberra Metro need?

The types of goods and services that will be required during construction include:

� Facilities support - cleaning, stationery, printing, security, waste

� Professional services - environmental, traffic, testing, training, survey, dilapidation, marketing and

communications, accounting and creative work

� Project wide services

» People - labour, staff

» Plant - Hire (wet/dry hire) – earthworks, haulage, pumps, cranes

- Purchase – hand tools, specialist equipment, PPE, signage, barriers, lighting, geofab,

conduits/pits, drainage

» Materials - fuel, concrete, reinforcement, aggregates, disposal

» Subcontractors – traffic management, decontamination, welding

� During construction

» Roadworks – kerbing, surfacing, lining, lighting, drainage

» Earthworks - bulk in depot and general groundworks

» Shot-creting

» Building works, depot and stops

Does Canberra Metro have work packages ready to be released?

A comprehensive outline of works can be found in the Works Package list on the last page of this guide. This

list will change over the life of the project and will be updated as necessary and posted on the Canberra

Business Chamber website - www.canberrabusiness.com

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How does Canberra Metro make decisions on suppliers?

Canberra Metro looks at these areas when considering a supplier:

� Cost - are the costs proposed reasonable and cover all aspects required?

� Technical ability / qualifications

� Previous experience – has the supplier worked on similar projects

� Previous performance – what references say

� Capacity to complete work in required timeframe

� Safety and quality performance, culture and systems

� Compliance with relevant industry codes and Fair Work Australia agreements

Will the light rail project use local contractors?

From the initial industry briefing, Canberra Metro has been building its connections with ACT region

subcontractors and suppliers. It is their intent to source as much as reasonably possible from the local market,

where it is cost effective to do so. Canberra Metro has made initial contact with over 250 ACT businesses and

suppliers during the tender phase to establish their interest and ability to deliver materials and services related

to this project. Canberra Metro has utilised ICN to inform their bid supplier selection and will re-visit this

network again during project procurement to maximise opportunity and appointment of local business.

In all phases of the project, Canberra Metro will work with the Territory, stakeholders and the business

community to create economic connections that drive value and productivity. Central to their commitment

is supporting Canberra’s local business to increase their capability to deliver products in accordance with

quality, cost and delivery requirements.

There will also be opportunities for local residents through apprentices, traineeships and graduate programs.

Twelve local businesses have been contracted since the project started this year, as well as a number of

national businesses working through their local offices and employing local workforce.

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Doing Business with Canberra Metro

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What opportunities will there be for local businesses when construction is finished?

During operations Canberra Metro will continue to source from local business, this would include suppliers

and service providers for:

� Consumable spares – lubricants, cleaning materials, non-specialist tools and hardware items

� Civil engineering maintenance

� LRV accident repairs – e.g. for spray painting and composite panel repairs

� General systems maintenance – such as gardeners, plumber and electricians for

� Office supplies – stationary and furniture.

What is a typical tender process?

� Canberra Metro will identify a package of work to be released and prepare all tender documents

for release.

� Canberra Metro will look at the local Canberra market first for businesses who can supply the goods and

services needed. Some goods and services will not be able to be purchased locally and will be procured

from national and international organisations. An example of this is the purchase of the light rail vehicle.

� Once businesses have been identified the tender documents will be sent to those businesses and up to

4 weeks will be allowed to respond depending on the size of the work package.

� Once the tenders have been responded to, Canberra Metro will assess all quotes and then award the

contract to the successful business. At this point the unsuccessful tender bids will be contacted as well

to let them know the outcome.

Process takes approximately 2-12 weeks depending on size of work package

Package of work

Identified

Identify organisation

who can potentially do work (up to 2 weeks)

Request for Quote

(RFQ) sent (up to 4 weeks)

RFQreturned

Assess quotes /

interviews(up to 4 weeks)

Contract Awarded and unsuccessful

tenderers notified

Execute successful contract

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Pre-requisites for working with Canberra Metro

In order to subcontract to Canberra Metro, you will need to be able to demonstrate the following:

� Relevant work, health and safety training and certification

� Insurances: workers compensation, public liability and motor vehicle and plant. Other insurances

required will be listed in the work package.

� Appropriate trade licences and tickets

� Construction/Induction White Card and asbestos training

There may be other pre-requisites associated with particular work packages.

What if I have a product or service that I think Canberra Metro can use, but it isn’t on the list of goods and services expected to be purchased?

Canberra Metro is keen to work with local businesses to understand new innovations, or potential products

or services that will deliver benefits for the project during construction or operation.

Feel free to contact Canberra Metro directly to promote your product or service by emailing

[email protected]

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How do I promote my business to Canberra Metro?

There are a number of ways to promote your business to Canberra Metro:

1. Register with the Canberra Business Chamber Suppliers register. Canberra Metro will be using this to

source local suppliers. www.canberrabusiness.com

2. Register with the ICN Gateway www.gateway.icn.org.au

3. Send a company profile and information to [email protected]

4. Visit Canberra Metro at 330 Northbourne Avenue, Dickson.

Is doing business with Canberra Metro complicated?Canberra Metro aims to make working with us as easy as possible. The larger the work package the more

complex a tender can become. It is always best to have an ongoing conversation during the RFQ process

so that any concerns/questions can be dealt with effectively for all parties. Canberra Metro does not work

with sole traders.

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Doing Business with Canberra Metro

Doing business with Canberra Metro

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