Request for Tender...Structure of RFT This RFT comprises the following sections– Introduction –...

Request for Tender Western Victoria 2016 of 55

Tender number CF2016.1

Request for Tender (RFT) and Expression of Interest

CF2016.1

WESTERN VICTORIA

SAWLOG

and

COMMERCIAL FIREWOOD



Table of Contents

INTRODUCTION ..................................................................................................................................................3

The Opportunity .....................................................................................................................3

Structure of RFT .....................................................................................................................3

RFT Objectives.......................................................................................................................3

RFT PART A – CONDITIONS OF TENDERING..................................................................................................4

1. Establishment Details ....................................................................................................4

2. Rules governing this Request for Tender and the Tendering Process .........................5

3. Request for Tender and Expression of Interest ............................................................5

4. Communications during the Tendering and Expression of Interest Process ................7

5. Submission of Tenders and Expressions of Interest .....................................................8

6. Request For Tender and Expression of Interest Documents ........................................9

7. Evaluation of Tenders................................................................................................. 10

8. Successful Tenders .................................................................................................... 13

9. Tenderer Warranties ................................................................................................... 13

10. VicForests’ Rights ....................................................................................................... 13

11. Governing Law ........................................................................................................... 14

12. Interpretation .............................................................................................................. 14

RFT PART B – SPECIFICATION ...................................................................................................................... 16

1. Introduction ................................................................................................................. 16

2. Scope.......................................................................................................................... 17

3. Compliance Requirements ......................................................................................... 21

4. Operational Requirements ......................................................................................... 23

5. Product Specifications ................................................................................................ 24

RFT PART C – STANDARD FOREST PRODUCE LICENCE CONDITIONS .................................................. 26

RFT PART D – TENDERER’S RESPONSE ..................................................................................................... 41



INTRODUCTION

The Opportunity

VicForests is seeking responses to this Request for Tender (RFT) and Expression of Interest for commercial harvesting of timber from State forest in western Victoria in the Horsham, Bendigo, Midlands Otways and Portland Forest Management Areas (FMA).

The quantities identified in the Portland FMA have been identified for expression of interest only. VicForests is not seeking a price for this timber in this process, however is interested to understand what interest there may be to purchase and harvest some of this timber. If genuine interest is identified there may be a further competitive process initiated or a negotiated allocation.

Structure of RFT

This RFT comprises the following sections–

Introduction – overview and objectives.

Part A – Conditions of Tendering sets out the rules applying to the RFT documents and to the Tendering Process. These rules are deemed to be accepted by all Tenderers and by all persons having received or obtained the RFT.

Part B – Specification describes the timber lots available for tender

Part C – Licence Conditions contains the standard terms and conditions of a Forest Produce Licence, authorising the harvesting of the forest produce set out in Part B.

Part D – Tenderer’s Response specifies the information to be provided in a Tender.

RFT Objectives

On December 5, 2014 VicForests was made responsible for commercial timber harvesting on public land in western Victoria.

VicForests is seeking responses to this RFT for the harvesting of timber from the various FMAs and aims to achieve the following objectives:

Increase resource security and opportunities for industry growth by allocating successful tenderers longer term licences, up to five years;

Provide opportunities for small and medium businesses;

Provide timber benefits to communities in a cost effective manner;

Maintain the productive capacity of forest managed for timber production;

Generate a financial outcome that is acceptable to VicForests; and

To improve the safety, efficiency and effectiveness of forest operations.



RFT PART A – CONDITIONS OF TENDERING

1. Establishment Details

1.1 VicForests

VicForests is a State-owned business responsible for the sustainable management and commercial sale of timber from public forests on behalf of the Victorian Government.

We undertake all of our operations in a safe, efficient and sustainable manner, keeping our staff, the community and the environment in mind in all we do.

1.2 RFT Number

CF2016.1

1.3 Tender Manager and Tender Sponsor

Tender Manager

Name and title Bill Paul

Manager Community Forestry,

Address for correspondence by post VicForests 7-9 Symes Road Woori Yallock VIC 3139

Email Address [email protected]

Tender Sponsor

Name and title Nathan Trushell

General Manager, Stakeholders and Planning

Address for correspondence by post VicForests 7-9 Symes Road Woori Yallock VIC 3139

1.4 Indicative timetable*

This timetable is provided to give Tenderers an indication of the timing of the Tendering Process. The timetable is indicative only and may be changed by VicForests in accordance with the Conditions of Tendering set out in RFT Part A of this RFT.

Activity Date

RFT issued Monday 17 October 2016

Tender Briefing:

Bendigo

Ballarat

Colac

Hamilton

10 to 11.30 am, Mon 24 October 2016 3.00 to 4.30 pm, Mon 24 October 2016 10 to 11.30 am, Tues 25 October 2016 3.00 to 4.30 pm, Tues 25 October 2016

Closing Time 2 pm, Friday 11 November 2016

Intended completion of evaluation Friday 18 November 2016

Intended formal notification to successful Tenderers

Friday 25 November 2016



1.5 Lodgement of Tenders and Expressions of Interest

1.5.1 Lodgement

Address of Tender box

Walk In:

Mail:

eMail

Level 12, 461 Bourke Street, Melbourne, 3000

GPO Box 191, Melbourne 3001

[email protected]

Hours of access to Tender box 9.00 – 17.00 (Mon to Fri)

Closing Time 2.00 pm, 4th

November 2016

Information to be marked on package containing the Tender

Tender - Western Victoria: Sawlog & Commercial Firewood

1.5.2 Mail Delivery

If lodgement is by mail then consideration should be given to current standard delivery times provided by Australia Post. Other forms of delivery such as priority mail or registered post should be considered.

Where a mailed tender submission is received after the Closing Time and Date it will be accepted only if it is post-marked the day before the Closing Date or earlier.

1.5 RFT Attachments

The following attachments form part of this RFT document:

Attachment 1: Grievance Process

2. Rules governing this Request for Tender and the Tendering Process

2.1 Application of these rules

2.1.1 Participation in the Tendering Process is subject to compliance with the rules contained in this RFT Part A.

2.1.2 All persons (whether or not they submit a Tender) having obtained or received this RFT may only use it, and the information contained in it, in compliance with the rules contained in this RFT Part A.

2.1.3 All Tenderers are deemed to accept the rules contained in this RFT Part A.

2.1.4 The rules contained in this RFT Part A apply to:

(a) the RFT and any other information given, received or made available in connection with the RFT,

(b) the Tendering Process; and

(c) any communications (including any Tender Briefings, presentations, meetings or negotiations) relating to the RFT or the Tendering Process.

3. Request for Tender and Expression of Interest

3.1 Status of Request for Tender and Expression of Interest

3.1.1 This RFT is an invitation for persons to submit a proposal to harvest forest produce as set out in the Specification contained in Part B of this RFT. Accordingly, this RFT must not be construed,



interpreted, or relied upon, whether expressly or impliedly, as an offer capable of acceptance by any person, or as creating any form of contractual, promissory, restitutionary or other rights.

3.1.2 No binding contract will exist between VicForests and any Tenderer unless and until VicForests has signed a formal written Forest Produce Licence as contemplated in clause 8.1 (No Legally Binding Contract) of this RFT Part A.

3.2 Accuracy of Request for Tender and Expression of Interest

3.2.1 While all due care has been taken in connection with the preparation of this RFT, VicForests makes no representations or warranties that the content in this RFT or any information communicated to or provided to Tenderers during the Tendering Process is, or will be, accurate, current or complete. VicForests and its officers, employees and advisors will not be liable with respect to any information communicated or provided which is not accurate, current or complete.

3.2.2 If a Tenderer finds or reasonably believes it has found any discrepancy, ambiguity, error or inconsistency in the RFT or any other information provided by VicForests (other than minor clerical matters), the Tenderer must promptly notify VicForests in writing of such discrepancy, ambiguity, error or inconsistency to give VicForests an opportunity to consider what corrective action is necessary (if any).

3.2.3 Any actual discrepancy, ambiguity, error or inconsistency in the RFT or any other information provided by VicForests will, if possible, be corrected by VicForests and provided (or the proper information made available) to all Tenderers without attribution to the Tenderer that provided the notice.

3.3 Additions and amendments to Request for Tender and Expression of Interest

3.3.1 VicForests reserves the right to change any information in, or to issue addenda to, this RFT before the Closing Time. VicForests and its officers, employees and advisors will not be liable in connection with either the exercise of, or failure to exercise, this right.

3.3.2 If VicForests exercises its right to change information under clause 3.3.1, it may seek amended Tenders from all Tenderers.

3.4 Representations

3.4.1 No representation made by or on behalf of VicForests in relation to this RFT (or its subject matter) will be binding on VicForests unless that representation is expressly incorporated into any Forest Produce Licence ultimately issued by VicForests.

3.5 Confidentiality

3.5.1 VicForests may require persons and organisations wishing to access or obtain a copy of this RFT or certain parts of it, to execute a deed of confidentiality (in a form required by, or satisfactory to, VicForests) before or after access is granted.

3.5.2 Whether or not execution of a deed of confidentiality under clause 3.5.1 is required by VicForests, all persons (including Tenderers) obtaining or receiving this RFT and any other information in connection with the RFT or the Tendering Process must:

(a) keep the contents of the Tender and such other information confidential; and

(b) not disclose or use that information except as required for the purpose of developing a Tender in response to this RFT.

3.6 Licence to use Intellectual Property Rights

3.6.1 Persons obtaining or receiving this RFT and any other documents issued in relation to the Tendering Process may use the RFT and such documents only for the purpose of preparing a Tender.

3.6.2 Such Intellectual Property Rights as may exist in the RFT and any other documents provided to Tenderers by or on behalf of VicForests in connection with the Tendering Process are owned by (and will remain the property of) VicForests except to the extent expressly provided otherwise.



4. Communications during the Tendering and Expression of Interest Process

4.1 Tender manager

4.1.1 All communications relating to the RFT and the Tendering Process must be directed to the Tender Manager.

4.2 Requests for clarification or further information

4.2.1 Any questions or requests for further information or clarification of the RFT (or any other document issued in connection with the Tendering Process) should be submitted to the Tender Manager in writing, preferably by email.

4.2.2 Any communication by a Tenderer to VicForests will be effective upon receipt by the Tender Manager.

4.2.3 VicForests may restrict the period during which it will accept questions or requests for further information or for clarification and reserves the right not to respond to any question or request, irrespective of when such question or request is received.

4.2.4 Except where VicForests is of the opinion that issues raised apply only to an individual Tenderer, questions submitted and answers provided will be made available to all Tenderers, on VicForests website, without identifying the person or organisation having submitted the question. In all other cases, VicForests may deliver any written notification or response to a Tenderer by leaving or delivering it to the address of the Tenderer (as notified to the Tender Manager).

4.2.5 A Tenderer may, by notifying the Tender Manager in writing, withdraw a question submitted in accordance with this clause 4.2 (Requests for Clarification or Further Information) in circumstances where the Tenderer does not wish VicForests to publish its response to the question to other tenderers.

4.3 Unauthorised communications

4.3.1 Communications (including promotional or advertising activities) with staff of VicForests or consultants assisting VicForests with the Tendering Process are not permitted during the Tendering Process except as provided in clause 4.2 (Requests for Clarification or Further Information) above, or otherwise with the prior written consent of the Tender Manager. Nothing in this clause 4.3 (Unauthorised Communications) is intended to prevent communications with staff of, or consultants to, VicForests to the extent that such communications do not relate to this RFT or the Tendering Process.

4.3.2 Tenderers must not otherwise engage in any activities that may be perceived as, or that may have the effect of, influencing the outcomes of the Tendering Process in any way.

4.3.3 Unauthorised communications with such persons may, in the absolute discretion of VicForests, lead to disqualification of a Tenderer.

4.4 Improper assistance

4.4.1 Tenderers must not seek or obtain the assistance of employees, agents or contractors of VicForests in the preparation of their Tenders. In addition to any other remedies available to it under law or contract, VicForests may, in its absolute discretion, immediately disqualify a Tenderer that it believes has sought or obtained such assistance.

4.5 Anti-competitive conduct

4.5.1 Tenderers and their respective officers, employees, agents and advisers must not engage in any collusion, anti-competitive conduct or any other similar conduct with any other Tenderer or any other person in relation to:

(a) the preparation or lodgement of their Tender;

(b) the evaluation and clarification of their Tender; and

(c) the conduct of negotiations with VicForests,

in respect of this Tendering Process.



4.5.2 For the purposes of clause 4.5.1, collusion, anti-competitive conduct or any other similar conduct may include disclosure, exchange and clarification of information whether or not such information is confidential to VicForests or any other Tenderer or any person or organisation.

4.5.3 In addition to any other remedies available to it under law or contract, VicForests may, in its absolute discretion, immediately disqualify a Tenderer that it believes has engaged in any collusive, anti-competitive conduct or any other similar conduct in respect of this Tendering Process.

4.6 Grievance and Complaints about RFT and Expression of Interest Process

4.6.1 For Grievances candidates should refer to the Grievance Procedure set out in Attachment 1.

4.6.2 Any complaint about the RFT or the Tendering Process must be submitted to the Tender Manager in writing immediately upon the cause of the complaint arising or becoming known to the Tenderer. The written complaint must set out:

(a) the basis for the complaint (specifying the issues involved);

(b) how the subject of the complaint (and the specific issues) affect the person or organisation making the complaint;

(c) any relevant background information; and

(d) the outcome desired by the person or organisation making the complaint.

4.6.3 If the matter relates to the conduct of a VicForests employee, the complaint should also be brought to the attention of the Tender Sponsor.

4.7 Conflict of Interest

4.7.1 A Tenderer must not, and must ensure that its officers, employees, agents and advisers do not place themselves in a position that may or does give rise to actual, potential or perceived conflict of interest between the interests of VicForests and the Tenderer’s interests during the Tendering Process.

4.7.2 The Tenderer’s Response in RFT Part D requires Tenderers to provide details of any interests, relationships or clients which may or do give rise to a conflict of interest in relation to a Forest Produce Licence that may result from this RFT.

4.7.3 If the Tenderer submits its Tender and a conflict of interest arises, or is likely to arise, which was not disclosed in the Tender, the Tenderer must notify VicForests immediately in writing of that conflict.

4.7.4 VicForests may disqualify a Tenderer from the Tendering Process if the Tenderer fails to notify VicForests of the conflict as required.

5. Submission of Tenders and Expressions of Interest

5.1 Lodgement

5.1.1 Tenders must be lodged only by the means set out in item 1.5 of the Establishment Details of RFT Part A.

5.2 Late Tenders

5.2.1 Tenders must be lodged by the Closing Time. The Closing Time may be extended by VicForests in its absolute discretion by providing written notice to Tenderers.

5.2.2 Tenders lodged after the Closing Time or lodged at a location or in a manner that is contrary to that specified in this RFT will be disqualified from the Tendering Process and will be ineligible for consideration.

5.2.3 The determination of VicForests as to the actual time that a Tender is lodged is final. Subject to clause 5.2.2, all Tenders lodged after the Closing Time will be recorded by VicForests and will only be opened for the purposes of identifying a business name and address of the Tenderer. VicForests will inform a Tenderer whose Tender was lodged after the Closing Time of its ineligibility for consideration. The general operating practice is for the late tender to be returned within 5 working days of receipt or within 5 working days after determination not to accept a late tender.

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6. Request For Tender and Expression of Interest Documents

6.1 Tenderers’ responsibilities

6.1.1 Tenderers are responsible for:

(a) examining this RFT and any documents referenced or attached to this RFT and any other information made available by VicForests to Tenderers in connection with this RFT;

(b) fully informing themselves in relation to all matters arising from this RFT;

(c) ensuring that their Tenders are accurate and complete;

(d) making their own enquiries and assessing all risks regarding the RFT, and fully incorporating the impact of any known and unknown risks into their Tender; and

(e) ensuring that they comply with all applicable laws in regards to the Tendering Process (including Part 2 of the Fair Trading Act 1999).

6.2 Preparation of Tenders

6.2.1 Tenderers must ensure that:

(a) their Tender is presented in the required format as set out in RFT Part D; and

(b) all the information fields in RFT Part D are completed and contain the information requested.

Note to Tenderers

VicForests may in its absolute discretion reject a Tender that does not include the information requested or is not in the format required.

6.3 Illegible content, alteration and erasures

6.3.1 Incomplete Tenders may be disqualified or evaluated solely on the information contained in the Tender.

6.3.2 VicForests may disregard any content in a Tender that is illegible and will be under no obligation whatsoever to seek clarification from the Tenderer.

6.3.3 VicForests may permit a Tenderer to correct an unintentional error in their Tender where that error becomes known or apparent after the Closing Time, but in no event will any correction be permitted if VicForests reasonably considers that the correction would materially alter the substance of the Tenderer’s Response.

6.4 Obligation to notify errors

6.4.1 If, after a Tenderer’s Response has been submitted, the Tenderer becomes aware of an error in the Tenderer’s Response (including an error in pricing, but excluding clerical errors which would have no bearing on the evaluation of the Tender), the Tenderer must promptly notify VicForests of such error.

6.5 Responsibility for Tendering costs

6.5.1 The Tenderer’s participation or involvement in any stage of the Tendering Process is at the Tenderer’s sole risk, cost and expense. VicForests will not be responsible for, nor pay for, any expense or loss that may be incurred by Tenderers in relation to the preparation or lodgement of their Tenders.

6.5.2 In addition to clauses 3.1.1 and 3.1.2, VicForests is not liable to the Tenderer for any costs on the basis of any contractual, promissory or restitutionary grounds whatsoever as a consequence of any matter relating to the Tenderer’s participation in the Tendering Process, including without limitation, instances where:

(a) the Tenderer is not engaged to perform under any contract; or

(b) VicForests exercises any right under this RFT or at law.

6.6 Disclosure of Tender contents and Tender information

6.6.1 Tenders will be treated as confidential by VicForests. VicForests will not disclose Tender contents and Tender information, except:



(a) as required by law (including, for the avoidance of doubt, as required under the Freedom of Information Act 1982 (Vic) (FOI Ac);

(b) for the purpose of investigations by the Australian Competition and Consumer Commission or other government authorities having relevant jurisdiction;

(c) to external consultants and advisers of VicForests engaged to assist with the Tendering Process; or

(d) general information from Tenderers required to be disclosed by government policy.

6.7 Use of Tenders

6.7.1 Upon submission in accordance with the requirements of clause 5 (Submission of Tenders) of RFT Part A all Tenders become the property of VicForests. Tenderers will retain all ownership rights in any intellectual property contained in the Tender. The submission of a Tender does not transfer to VicForests any ownership interest in the Tenderer’s intellectual property rights, or give VicForests any rights in relation to the Tender, expect as expressly set out below.

6.7.2 Each Tenderer, by submission of their Tender, is deemed to have licensed VicForests to reproduce the whole, or any portion, of their Tender for the purposes of enabling VicForests to evaluate the Tender.

6.8 Period of validity

6.8.1 All Tenders must remain valid and open for acceptance for a minimum of 120 days from the Closing Time. This period may be extended by mutual agreement between VicForests and the Tenderer.

6.9 Status of Tender

6.9.1 Each Tender constitutes an irrevocable offer by the Tenderer to VicForests to satisfy the requirements of the Specification (RFT Part B of this RFT), on the terms and conditions of the Forest Produce Licence.

6.9.2 A Tender must not be conditional on:

(a) board approval of the Tenderer or any related body corporate of the Tenderer being obtained;

(b) the Tenderer conducting due diligence or any other form of enquiry or investigation;

(c) the Tenderer (or any other party) obtaining any regulatory approval or consent;

(d) the Tenderer obtaining the consent or approval of any third party; or

(e) the Tenderer stating that it wishes to discuss or negotiate any commercial terms of the contract.

6.9.3 VicForests may, in its absolute discretion, disregard any Tender that is, or is stated to be, subject to any one or more of the conditions detailed above (or any other conditions).

6.9.4 VicForests reserves the right to accept a Tender in part or in whole or to negotiate with a Tenderer.

7. Evaluation of Tenders

7.1 Evaluation introduction

7.1.1 This evaluation process relates to all lots except the sawlog and residual log lots in the Portland Forest management Area (see clause 7.6).

7.1.3 Following the Closing Time, VicForests intends to evaluate the Tenders received. Tenders will be evaluated against the Evaluation Criteria specified in clause 7.2 (Evaluation Criteria Format) of Part A.

7.1.4 A Tenderer’s Response will not be deemed to be unsuccessful until such time as the Tenderer is formally notified of that fact by VicForests. The commencement of negotiations by VicForests with one or more other Tenderers is not to be taken as an indication that any particular Tenderer’s Response has not been successful.



7.2 Evaluation criteria

7.2.1 The evaluation criteria have been weighted.

7.2.2 In evaluating Tenderer’s Responses, VicForests will have regard to:

(a) specific evaluation criteria identified in the list below; and

(b) particular weighting assigned to any or all of the criteria specified in the table below.

7.2.3 Evaluation Criteria

Evaluation criteria Weighting

Financial Performance including:

- Licence or Contract Performance, - Payment history and current account

status with VF - References - Information submitted in Part D

10

Safety performance systems 10

Operational performance:

- Environmental management - Production - Log grading ability

10

Bush storage of timber

- timber stored in the forest after felling increases risk of theft and possibly timber deterioration

5

Processing capability (equipment and infrastructure)

5

Focus on Community forestry and local wood processing.

5

Quantity (minimum threshold amounts) 5

Price 50

7.3 Evaluation process

The aim of the evaluation process is to ensure that the objectives of the tender process, outlined in Introduction, are achieved.

Tenders will be assessed against the Evaluation Criteria detailed as above as well as the Compliance of Requirements of clause 3 of PART B.

Non-price criteria will be evaluated on the basis of risk to the management of commercial forestry sales and operations for VicForests. Tenders must be considered an acceptable risk in the non-price criteria to then have the submission price evaluated.

VicForests will select preferred Tenders that offer the best commercial outcome and strategic value for VicForests and the State, with an acceptable level of risk.

This RFT may involve the following two stage process:

7.3.1 Stage 1

A multi-disciplinary evaluation team will evaluate the Tenders.

The first stage of the tender evaluation process will follow the following format:

(i.) Receipt of tender responses

(ii.) Individual evaluation panel members receive a copy of the tender responses for individual assessment of the tender submission



(iii.) Group evaluation of non-price tender responses

(iv) Evaluation of Price criteria.

7.3.2 Stage 2

If this stage is required, negotiations may take place with any short listed Tenderers for clarification or to negotiate and settle outstanding matters. A final evaluation will then take place to select the successful Tenderer, and a Forest Produce Licence will be awarded after the completion of VicForests’ internal approval process.

If required, the remaining tender evaluation process will follow the following format:

(iv.) Negotiations with Tenderers

(v.) Recommendation of preferred Tenderer.

(vi.) Applications for approval.

(vii.) Notification to successful Tenderer.

(viii.) Execution of Forest Produce Licence.

(ix.) Notification to unsuccessful respondents.

7.4 Clarification of Tender

7.4.1 VicForests may seek clarification from and enter into discussions with any or all of the Tenderers in relation to their Tender. VicForests may use such information in interpreting the Tender and evaluating the expected revenue, costs and risk to VicForests of accepting the Tender. Failure to supply clarification to the satisfaction of VicForests may render the Tender liable to disqualification.

7.4.2 VicForests is under no obligation to seek clarification of anything in a Tender and VicForests reserves the right to disregard any clarification that VicForests considers to be unsolicited or otherwise impermissible in accordance with the rules set out in Part A.

7.5 Discussion with Tenderers

7.5.1 VicForests may elect to engage in detailed discussions with any one or more Tenderers, with a view to maximising the benefits of the RFT as measured against the evaluation criteria set out in clause 7.2 and fully understanding a Tenderer’s offer, including risk allocation.

7.5.2 As part of this process, VicForests may request such Tenderer(s) to improve one or more aspects of their Tender, including any technical, financial, corporate or legal components or provide presentations regarding these.

7.5.3 VicForests is under no obligation to undertake discussions with, or to invite any presentations from Tenderers.

7.5.4 In addition to presentations and discussions, VicForests may request some or all Tenderers to:

(a) provide references or additional information; and/or

(b) make themselves available for interviews.

7.6 Expression of Interest Evaluation

7.6.1 The objective of the evaluation of Expressions of Interest is determine whether there are businesses interested and capable of utilising the available sawlog and residual log resource in Portland Forest Management Area (FMA).

7.6.2 Interested parties should complete the non-price evaluation details to assist VicForests understand what level of capability and experience is available in the Portland FMA.

7.6.3 There will be no formal evaluation of the non-price criteria that will limit an interested party from taking part in any future competitive process.

7.6.4 Following the initial review of information provided by interested parties, VicForests will make contact with all parties to provide feedback about the next possible steps.



8. Successful Tenders

8.1 No legally binding contract

8.1.1 Selection as a successful Tenderer does not give rise to a contract (express or implied) between the successful Tenderer and VicForests. No legal relationship will exist between VicForests and a successful Tenderer until such time as a Forest Produce Licence is signed.

8.2 Pre-license negotiations

8.2.1 VicForests may, in its absolute discretion, decide not to enter into pre-licence negotiations with a successful Tenderer.

8.2.2 A Tenderer is bound by its Tender and, if selected as a successful Tenderer, must enter into a Forest Produce Licence on the basis of the Tender, without negotiation.

8.3 No obligation to license

8.3.1 VicForests is under no obligation to appoint a successful Tenderer or Tenderers (as the case may be), or provide a Forest Produce Licence to a successful Tenderer or any other person, if it is unable to identify a Tender that complies in all relevant respects with the requirements of VicForests, or if to do so would otherwise not be in the public interest. For the avoidance of any doubt, in these circumstances VicForests will be free to proceed via any alternative process.

8.3.2 VicForests is under no obligation to accept any tender or issue a Forest Produce Licence where it is considered financially unviable or results in an unacceptable loss or risk or revenue to VicForests.

8.4 Commencement of Operations

8.4.1 It is expected that operations associated with Licences, resulting from this RFT will commence from 1 January 2017. This may be subject to negotiation with VicForests at the time a Licence is issued.

9. Tenderer Warranties

9.1.1 By submitting a Tender, a Tenderer warrants that:

(a) in lodging its Tender it did not rely on any express or implied statement, warranty or representation, whether oral, written, or otherwise made by or on behalf of VicForests, its officers, employees, agents or advisers other than any statement, warranty or representation expressly contained in the Tender;

(b) it did not use the improper assistance of VicForests employees or information unlawfully obtained from VicForests in compiling its Tender;

(c) it is responsible for all costs and expenses related to the preparation and lodgement of its Tender, any subsequent negotiation, and any future process connected with or relating to the Tendering Process;

(d) it otherwise accepts and will comply with the rules set out in this Part A of the RFT;

(e) it will provide additional information in a timely manner as requested by VicForests to clarify any matters contained in the Tender.

10. VicForests’ Rights

10.1.1 Notwithstanding anything else in this RFT, and without limiting its rights at law or otherwise, VicForests reserves the right, in its absolute discretion at any time, to:

(a) cease to proceed with, or suspend the Tendering Process prior to issuing any Forest produce Licence;

(b) alter the structure and/or the timing of the RFT or the Tendering Process;

(c) vary or extend any time or date specified in this RFT for all or any Tenderers;

(d) terminate the participation of any Tenderer in the Tendering Process;

(e) require additional information or clarification from any Tenderer or any other person or provide additional information or clarification;



(f) negotiate with any one or more Tenderers and allow any Tenderer to alter its Tender;

(g) call for new Tenders;

(h) reject any Tender received after the Closing Time;

(i) reject any Tender that does not comply with the requirements of this RFT; or

(j) consider and accept or reject any alternative tender.

11. Governing Law

11.1.1 This RFT and the Tendering Process is governed by the laws applying in the State of Victoria.

11.1.2 Each Tenderer must comply with all relevant laws in preparing and lodging its Tender and in taking part in the Tendering Process.

12. Interpretation

12.1 Definitions

12.1.1 In this Request for Tender, unless a contrary intention is apparent:

Business Day means a day which is not a Saturday, Sunday or public holiday (being a public holiday appointed as such under the Public Holidays Act 1993 (Vic)) in Melbourne.

Closing Time means the time specified as such in clause 1.4 (Indicative Timetable) of RFT Part A by which Tenders must be received.

Evaluation Criteria means the criteria set out in clause 7.2 (Evaluation Criteria Format) of Tender Part A.

Intellectual Property Rights includes copyright and neighbouring rights, and all proprietary rights in relation to inventions (including patents) registered and unregistered trademarks (including service marks), registered designs, confidential information (including trade secrets and know how) and circuit layouts, and all other proprietary rights resulting from intellectual activity in the industrial, scientific, literary or artistic fields.

Tender Manager means the person so designated in clause 1.3 (Tender Manager and Tender Sponsor) of RFT Part A.

Tender Sponsor means the person so designated in clause 1.3 (Tender Manager and Tender Sponsor) of RFT Part A.

Forest Produce Licence means a licence issued by VicForests under Section 52 of the Forests Act 1958, and includes the terms and conditions contained in or referred to in Part C of this RFT.

Request For Tender and Expression of Interest (RFT) or Tender means this document (comprising each of the parts identified in clause 2 Rules Governing this RFT and the Tendering Process of this RFT Part A) and any other documents so designated by VicForests.

Specification means any specification or description of VicForests’ requirements contained in RFT Part B of this RFT.

Tender means a document lodged by a Tenderer in response to this RFT containing an offer in accordance with the Specification.

Tenderer means a person or organisation that submits a Tender.

Tendering Process means the process commenced by the issuing of this Request for Tender and concluding upon formal announcement by VicForests of the selection of a successful Tenderer(s) or upon the earlier termination of the process.

12.1.1 Interpretation

In this RFT, unless expressly provided otherwise:

(a) a reference to:

i. “includes” or “including” means includes or including without limitation; and



ii. “$” or “dollars” is a reference to the lawful currency of the Commonwealth of Australia; and

(b) if a word or phrase is defined its other grammatical forms have corresponding meanings.

12.1.2 Inconsistency

If there is any inconsistency between any part of this RFT, a descending order of precedence must be accorded to:

(a) the conditions of tendering in Part A of this RFT and any annexes or attachments;

(b) the Tenderer’s response in Part D of this RFT;

(c) the License Conditions in Part C of this RFT;

(d) any other part of this RFT,

so that the provision in the higher ranked document, to the extent of the inconsistency, prevails.



RFT PART B – SPECIFICATION

1. Introduction

VicForests is a State-owned business responsible for the sustainable management and commercial sale of timber from public forests on behalf of the Victorian Government.

VicForests is offering for tender or expression of interest the following quantities of forest produce that are coming available following the expiry of licences in December 2016 or have not been made available in the recent past. All quantities of forest produce are based on VicForests current best estimates of sustainable harvest levels.

1.1 Attachments to Part B

The following attachments form part of this RFT and EOI document:

Attachment 2: Log Grading Guidelines – Box Ironbark

Attachment 3: Log Grading Guidelines – Red Gum Horsham FMA



2. Scope 2.1 Forest Produce Offer

The following table provides the total quantity of produce on offer in western Victoria.

The Price table in item 2.4.1 further divides quantities into Localities to provide a more accurate guide to where the timber is likely to come from. This locality information should be considered as a guide only.

RFT Quantities

FMA Product Type Total to be

made available

Unit of measurement

Configuration Harvest

Method #

Portland Commercial Firewood - Common Species 500 m3 Stacked STS/Thin

Otway Commercial Firewood - Common Species 3,000 m3 Stacked STS/Thin

Midlands Mixed Species Sawlog 1,000 m3 In round STS/Thin

(Mech.)

Midlands Mixed Species Residual Log* 1,000 m3 In round STS/Thin

(Mech.)

Midlands Commercial Firewood - Common Species 2,700 m3 Stacked STS/Thin

Horsham Bush Sawn Fencing Timbers - Durable Species 1,500 pieces - STS/Thin

Horsham Commercial Firewood - Durable Species 2,000 m3 Stacked STS/Thin

Horsham Hewn Timbers – Durable Species 100 m3 Sawn STS/Thin

Horsham Round Fencing Timbers 150 Pieces - STS/Thin

Bendigo Box/Ironbark Sawlogs Grade 1 125 m3 In round STS/Thin

Bendigo Box/Ironbark Sawlogs Grade 2 1580 m3 In round STS/Thin

Bendigo Common Species Sawlogs Grade 1 100 m3 In round STS/Thin

Bendigo Common Species Sawlogs Grade 2 440 m3 In round STS/Thin

Bendigo Commercial Firewood - Common Species 1,500 m3 Stacked STS/Thin

Bendigo Commercial Firewood - Durable Species 3,500 m3 Stacked STS/Thin

Expression of Interest Quantities

Portland Mixed Species Sawlog 2,000 m3 In round STS/Thin

(Mech.)

Portland Mixed Species Residual Log 2,000 m3 In round STS/Thin

(Mech.)

* Mixed Species Residual Log volume is associated with the sale and production of Mixed Species Sawlog in that FMA. Volumes will be subject to availability.

# STS/Thin = Single tree selection or thinning operations

Mech. = mechanical or mechanically assisted falling is required.

Note: The Mixed Species and Common Species terminology is interchangeable.



2.2 Supply Description

The area of supply is from State forest in western Victoria and includes the Bendigo, Midlands, Otways, Horsham and Portland Forest Management Areas. The forest types are Box Ironbark, Mixed Species (or Common Species) and Red Gum with a harvesting history dating back to the gold rush. The Box-Ironbark and Red Gum terrain is undulating country where rainfall is between 400 and 500 mm per annum. The Mixed Species forest generally occurs on steeper slopes and areas of higher annual rainfall.

The timber on offer includes durable species (Box-Ironbark species and Red Gum) and Mixed Species. (See Table 1 – Species Description.) The volumes offered include all felled timber within the specifications of the log class being harvested.

The sawlog quantity being offered in the Midlands Forest Management Area will not be supplied from Mt Cole or Wombat State forests. This timber will be available from other areas of State forests in Midlands Forest Management Area including Pyrenees and Mt Lonarch State forests and other areas south of Ballarat.



Table 1: Species on offer

Durable Species

Box Ironbark Species

Red Ironbark Eucalypus tricarpa

Yellow Gum E. leucoxylon

Grey Box E. microcarpa

Red Box E. polyanthemos

Long Leaf Box E. goniocalyx

Red Gum

Red Gum E. camaldulensis

Mixed Species

Mixed Species or Common Species

Messmate E. obliqua

Narrow Leaf Peppermint

E. radiata

Broad Leaf Peppermint E. dives

Manna Gum E. viminalis

Blue Gum E. bicostata

Red Box E. polyanthemos

Red Stringybark E. macrorhyncha

Brown stringybark E. baxteri

The Sawlog grades and Firewood available for purchase have been parcelled into tender lots by quantity and Forest Management Area.

2.3 Licence Term

A Forest Produce Licence will be issued to successful tenderers.

The length of licence offered will be guided by the criteria outlined in Table 2 below.

Table 2. Criteria for consideration of tenure for Forest Produce Licences

Licence duration Criteria

5 years greater than 500 m

3 sawlogs or 2000 m

3 firewood, per annum

some investment in value adding (eg. milling and kiln drying equipment)

moderate confidence in timber resource information demonstrated capacity and performance.

3 years greater than 100 m

3 sawlogs or firewood, per annum, or smaller

quantity of specialty timbers for value adding mandatory industry competencies met

1 year less than 100 m

3 sawlogs or firewood, per annum

mandatory industry competencies met.

A final decision on Licence tenure will be based on an acceptable financial outcome for VicForests.



2.4 Pricing

The timber available for purchase will be standing. The tenderer will be responsible for harvesting and haulage operations. Prices submitted for the purchase of the timber should take into account costs associated with all harvesting and haulage operations.

Tendered prices (GST inclusive) are to be submitted in the format outlined in Part D Tenderer’s Response.

Tenderers may submit a price for all or part of the quantities listed in the table in section 2.1 of Part B, above.

2.4.1 Indicative prices

The prices below are the mid-point of a range of the prices paid in 2016/17 for forest produce in Victoria, rounded to the nearest dollar. This information is being provided as a guide to pricing only and is not to be considered as any form of limit to tendered prices by proponents.

Species and Grade 2016/17 Middle of price range

($ per unit GST inclusive)

Box Ironbark Sawlog Grade 1 $124/m3

Box Ironbark Sawlog Grade 2 $71/m3

Durable Species Firewood $23/m3

Mixed Species Sawlog Grade 1

(Bendigo FMA)

$82/m3

Mixed Species Sawlog Grade 2

(Bendigo FMA)

$37/m3

Mixed Species Sawlog

- B grade - C Grade - D Grade

74/m3

53/m3

23/m3

Mixed Species Residual Log 15/m3

(in round)

Common Species Firewood $15/m3

(stack)

Bush Sawn Timbers

1.8m long x standard 131-210 cm2

2.1m long x standard 131-210 cm2

$2 each

$3 each

Round Fencing Timbers

1.8m long x 300-324 mm diameter




$12 each $11 each $13 each $20 each

Hewn Timbers: 0.0 m to 4.5m $102/m3 (sawn)



2.4.2 Timber Price Indexation

Timber Prices will be adjusted from 1 July each year for which a Forest Produce Licence is issued by the Consumer Price Index, All Groups Melbourne, published by Australian Bureau of Statistics in March each year.

3. Compliance Requirements

The inability of a tenderer to provide information to support the following compliance requirements may cause a tender to be disqualified.

3.1 Business Requirements

All tenderers must have a current Australian Business Number (ABN).

3.2 Risk and Insurance

VicForests requires appropriate insurance provisions to issue a Forest Produce Licence under this RFT. All successful tenderers will be required to provide details of relevant insurance policies in their tender response. This will include:

Workers compensation insurance wherever workers are employed by the licensee.

Public liability insurance with cover of $10M

Vehicle insurance for all vehicles used on public roads.

3.3 Bush Storage

Licensees must not leave felled timber in the forest, without bringing it to account, for more than three months.

3.4 Community Forestry Focus – Log Export

VicForests will not issue a licence where it is proposed to export the timber with little or no processing.

3.5 Occupational Health and Safety (minimum requirements)

The following health and safety requirements must be met at all times, where they are relevant, on forest coupes and forest roads during harvest and haulage operations. .

3.5.1 Training and accreditation

Accreditation details for all operators must be available and appropriate for all activities conducted in forest operations:

FOLs (issues by ForestWorks) or Timber Harvesting Operators Licence (THOLs) with correct

endorsements is a minimum.

For manual falling, an Intermediate Faller accreditation (FPIHAR3220) will be required, as a minimum, unless otherwise specified by VicForests.

3.5.2 Worker or employee details

Details of workers or employees and their emergency contacts must be available on site.

3.5.3 Working Alone

A process for working alone must be available and include effective communication available on site.

This process must documented or clearly understood.

3.5.4 First Aid

A first aid kit must be present on site and must be adequately supplied to deal with most likely

significant injuries, including:

Severe laceration

Fractures

Snake bites

Allergies if present

At least one worker on site must have a current first aid certificate (Level 2 is recommended).

3.5.5 Personal Protective Equipment (PPE)



The following equipment must be available and utilised on site workers and employees and meet the

relevant Australian Standard:

Safety helmet AS/NZS 1801

High visibility vest/top AS/NZS 4602

Safety boots AS/NZS 2210

Hearing protection AS/NZS 1270

Cut proof pants/ chaps AS/NZS 4453

All this equipment should be in good working condition.

3.5.6 Harvest and Haulage Plant and Equipment

All plant and equipment should be designed for its intended purpose in forest operations and be in

good working order.

All vehicles and trailers used for carting forest produce should be registered and roadworthy in

accordance with regulation.

Mobile plant requirements include:

Rollover Protection (ROPs) - required always

o Compliance plate or engineers certificate required to meet ISO 8082.

Falling Object Protection (FOPs) - if plant used for tree falling or tree pushing

o Compliance plate or engineers certificate required to meet ISO 8083.

19+mm polycarbonate on all forward facing screens on plant with a mechanical saw to meet

AS/NZS 2343

Operator protective guarding appropriate to potential hazards to meet AS 2294.1

3.5.7 Daily Check Process

There should be a daily check process of all safety related features of plant and equipment (including

chainsaws).

This is preferably documented or otherwise able to be clearly described.

3.5.8 Substances

A list of all substances and whether or not they are listed as Hazardous or Dangerous Goods

according to Safety Data Sheets.

All containers on site should be labelled and approved for the substance they hold.

Safety Data Sheets must be available on site for all hazardous substances (eg fuel and oil)

3.5.9 Risk Assessment

Task list and hazards - List of tasks and associated hazards and controls must be available on site.

This should include a process for safely managing landings, work sites, and coupes as the operator

moves through the coupe.

Safe Work procedures - Procedures are required where additional workers are present on site.

These should focus on key tasks including:

Falling trees

Cross cutting logs

Snigging

Loading of logs and timber

Measurement and grading of logs.

Incident Reporting - A process to report incidents to VicForests and implement corrective action

must be available.

The Licensee must have a knowledge of regulatory incident reporting requirements.

Serious injuries and incidents to be reported to Worksafe, unless the person injured is self-employed

and only that person is injured.



3.5.10 Induction process for visitors

Inductions must include the following as a minimum:

Identification of all relevant site hazards.

Identification safe areas/zones

Identification exclusion/ no-go zones

Identification emergency process and evacuation point

Identification location of first aid

3.5.11 Emergencies

A process must be available for emergency management and evacuation. This process may

reference the Emergency Evacuation Plan supplied by VicForests with the coupe plan.

3.5.12 Communication

Operating communications between personnel must be available on site.

Effective communication off site must be available. If there are locations on the coupe where phone

service is not available then the nearest point where phone service can be obtained must be known.

3.5.13 Signage

Coupe signage must be visible on site and specify the following:

“Danger Keep Out”

“Tree Falling in Operation”

PPE requirements

Communications (eg UHF radio channel)

3.5.14 Safe Work Zones

Safe zones for hazardous operations must be in place specifying:

Greater than 2 tree lengths safe distance from tree falling

A safe zone for truck drivers during loading operations

A safe zone for any landing or processing worker

3.5.15 Hazardous Tree Management

Hazardous trees should be identified and:

marked so they can be avoided; or

felled (subject to competency and accreditation of the faller).

4. Operational Requirements 4.1 Harvesting requirements

All trees are to be felled by the successful licensee or their licensed contractor, or workers or employees, in accordance with a signed Forest Coupe Plan and as directed by VicForests’ officers. All felled timber within the specifications of the log class being harvested must be accurately recorded on the log docket provided by VicForests.

The successful proponent will be required to remove all fallen licensed timber product from a coupe prior to their licence end date or prior to being allowed to commence harvesting in a new coupe, whichever comes first. The only exception will be where otherwise authorised by VicForests' Manager Community Forestry.

No portable saw bench operations are permitted within forest areas without prior approval from the appropriate VicForests officer.

Licensees may be required to take part or all their allocation from a damaged forest salvage area.

4.2 Quality requirements

Operations must comply with the following codes, guidelines, procedures, prescriptions and standard Forest Produce Licence conditions as outlined in Part C, and any subsequent revisions of these documents:



Code of Forest Practice for Timber Production, 2014

Timber Harvesting Operator’s Procedures, April 2008

4.3 Method of quantity determination

Sawlog lengths and centre diameter under bark measurements must be accurately measured and recorded in the log docket book provided together with species and grade in accordance with specifications.

Firewood will be measured by stacked volume. ie length x width x height and recorded on a Carters Docket Book.

All felled timber within the specifications of the log class being harvested must be recorded on the log docket. All dockets are to be sent to VicForests’ Melbourne office at GPO Box 191, Melbourne, Victoria, 3000 for accounting purposes by the 7th of each month.

4.4 Roles and responsibilities of the parties

The responsibilities and accountabilities of VicForests and the Licensee for implementing the tasks associated with the harvesting of the tendered wood are defined below:

VicForests’ responsibilities:

Planning - including coupe reconnaissance

Operational plan (coupe scheduling) in conjunction with relevant licensee

Coupe marking

Auditing (damage, utilisation, compliance to prescriptions)

Application of the Timber Harvesting Regulations

Licensee’s responsibilities:

Harvesting and haulage operations

Supervision of operations

Occupational Health & Safety

Environmental Management

Training

Coupe management - clearances

Construction and maintenance of temporary (in-coupe) roads

5. Product Specifications Details of the various log specifications are provided below.

5.1 General Specifications for durable Species

Sawlog Grade 1

The specifications of a compulsory Sawlog Grade 1 are:

The minimum SEDUB of Sawlog Grade 1 is 30cm.

The minimum length of Sawlog Grade 1 is 2.4m.

The maximum defect allowable in a Sawlog Grade 1 is:

o 25% for Sawlog Grade 1 with a centre diameter under-bark (CDUB) between 30cm and

39.9cm (inclusive).

o 40% for Sawlog Grade 1 with a CDUB greater than 40cm (inclusive).

The maximum sweep for a Sawlog Grade 1 is 1/5 of the CDUB, measured over a minimum 2.4m

log length.

Sawlog Grade 2

The specifications of a compulsory Sawlog Grade 2 are:

The minimum SEDUB of Sawlog Grade 2 is 15cm.

The minimum length of Sawlog Grade 2 is 1.8m.

The maximum defect allowable in a Sawlog Grade 2 is:




19.9cm (inclusive).

o 20% for Sawlog Grade 2 with a centre diameter under-bark (CDUB) between 20cm to 29.9cm

(inclusive).


39.9cm (inclusive).

o 55% for Sawlog Grade 2 with a CDUB greater than 40cm (inclusive).

The maximum sweep for a Sawlog Grade 2 is 1/5 of the CDUB, measured over a minimum 1.8m

log length.

Residual Log (Firewood)

The specifications of Residual Log are:

The minimum SEDUB of Residual Log is generally 10cm.

There is no defect specification for Residual Log.

There is no sweep specification for Residual Log.

5.2 Red Gum Horsham FMA

Sawlog and residual log specifications are contained within the attached Red Gum Grading

Guidelines.

5.3 Bendigo FMA Log Grading

Log grading specifications for Bendigo FMA are contained in the attached Log Grading Procedures.

These will apply to most durable species products and mixed (or common) species grades from the

foothills of the Pyrenees in the Midlands FMA.

5.4 Mixed species Grades B, C, D Sawlogs

The details of these log grading requirements are described in The Code of Procedures for Log

Buyers – Log Specifications



RFT PART C – STANDARD FOREST PRODUCE LICENCE CONDITIONS

Revised December 2014

1. General

1.1 The Licensee shall comply with provisions of the Forests Act 1958, the Sustainable Forests

(Timber) Act 2004 and the Conservation, Forests and Lands Act 1987, and any subordinate

legislation and instruments made under those Acts (including the conditions prescribed by the

Forests (Licences and Permits) Regulations 2009), as in force from time to time, and with any

lawful instruction given by an authorised officer.

1.2 The right of the Licensee to harvest in the area of supply shall not restrict the Minister,

Secretary or VicForests from carrying out duties or exercising powers pursuant to those Acts

and any subordinate legislation and instruments made under them.

2. Definitions

In this licence, the following definitions shall apply:

- 'Adjustment Notice' means notification in writing by the Minister of an adjustment of royalties

under condition 7.4, whether in an invoice for royalties or otherwise;

- ‘allocation’ means the type and quantity of timber and/or forest produce specified on the

licence;

- ‘area of supply’ means an area that is:

(a) available for harvesting in accordance with any Forest Management Plan; and

(b) specified in this licence (including the conditions to this licence),

and/or any additional or substituted area determined by the Minister from time to time and

notified to the Licensee;

- ‘authorised officer’ has the same meaning as in section 3 of the Conservation, Forests And

Lands Act 1987;

- 'Cost' includes any cost, charge, expense, outgoing, payment or other expenditure of any

nature;

- 'Crown' means the Crown in right of the State of Victoria;

- 'Cutting Plan' means a plan in respect of the area of supply or part thereof which complies with

the requirements of condition 5;

- ‘Department’ has the same meaning as in section 3 of the Conservation, Forests And Lands Act

1987, and includes where applicable an authorised officer;

- ‘forest coupe plan’ means a working plan prepared by the Secretary under section 22 of the

Forests Act 1958 for a coupe in the area supply or part thereof, and notified to the Licensee,

from time to time;



- ‘Forest Management Plan’ means a working plan prepared by the Secretary under section 22 of

the Forests Act 1958 for any State forest or part thereof from time to time;

- ‘forest produce’ has the same meaning as in the Forests Act 1958;

- ‘GST’ means GST within the meaning of the GST Act;

- ‘GST Act’ means A New Tax System (Goods and Services Act) Act 1999;

- ‘harvest’, ‘harvested’ and ‘harvesting’ means any of the following types of activities carried

out by any person or body for the purposes of sale or processing and sale:

felling or cutting of trees or parts of trees;

taking or removing timber and/or forest produce;

delivering timber and/or forest produce to a buyer or transporting timber and/or forest

produce to a place for collection by a buyer or sale to a buyer; or

any associated activities, including but not limited to road works,

but does not include those activities when undertaken by or on behalf of the Secretary;

- 'Liability' means the obligation to pay any debt, obligation, Cost, Loss, damage, expense,

compensation, charge or liability of any kind, including those that are prospective or

contingent and those the amount of which is not ascertained or ascertainable;

- ‘licence’ means a licence issued by the Minister or VicForests under section 52 of the Forests

Act 1958 and includes these licence conditions;

- 'licensee' means a licensee under a licence;

- ‘Licensee’ means the person specified in this licence and includes any other person to whom

such licence is from time to time transferred;

- 'Loss' means any loss of any kind whatsoever and includes but is not limited to direct and

indirect loss, consequential or special damages, and loss of profits, use, revenue, anticipated

revenue, interest, royalties or other Claims arising from any cause whatsoever, whether or not

the loss or damages is based on contract, statute, warranty, tort (including negligence), an

indemnity or otherwise;

- ‘Minister’ means the Minister administering section 52 of the Forests Act 1958 or any delegate

of the Minister;

- ‘month’ means calendar month;

- ‘multi-year licence' means a licence which is granted for a period of more than a single year;

- 'Performance Standards' means the standards of performance required of a licensee as issued

from time to time by the Department or VicForests, or as otherwise notified to the Licensee by

VicForests;



- ‘rehabilitation’ means the reasonable restoration and drainage of snig tracks, landings and

roads used during the taking of forest produce;

- 'Renewal Date' means the day following the last day of the period of this licence;

- 'Revised Cutting Plan' means a Cutting Plan in which the information required by condition 5.4

is varied;

- ‘Secretary’ means the body corporate established by Part 2 of the Conservation, Forests and

Lands Act 1987 or any delegate of the Secretary;

- ‘State forest’ has the same meaning as in the Forests Act 1958;

- ‘tax invoice’ has the same meaning as in the GST Act;

- ‘taxable supply’ has the same meaning as in the GST Act;

- ‘timber’ has the same meaning as in the Forests Act 1958; and

- ‘total fire ban’ means a total fire ban declared under s 40 of the Country Fire Authority Act

1958;

- ‘VicForests’ means the State body known as ‘VicForests’ established under section 14 of the

State Owned Enterprises Act 1992 by Order in Council dated 28 October 2003 published in the

Government Gazette on 28 October 2003, and includes where applicable an authorised officer

and/or a delegate of the Minister or Secretary.

3. Security

3.1 If required by written notice of the Minister, the Licensee must provide a security deposit or

such other form of security as required by the Minister, to guarantee the Licensee's

performance of the conditions of this licence (Security) for the amount specified by the

Minister (Security Amount).

3.2 If the Licensee is required to provide Security at the commencement of this licence, the

Licensee must not commence harvesting until the Security is provided in the full Security

Amount.

3.3 If the Licensee is required to provide Security any other time during the currency of this

licence, within seven days after the date of the written notice of the Minister, the Licensee must

cease harvesting until the Security is provided in the full Security Amount.

3.4 Should the Licensee breach a condition of this licence, any Security provided pursuant to this

condition 3 may be drawn upon by the Minister, either partly or wholly, to the extent of any

Cost, Loss or Liability incurred by the Minister.

3.5 Upon the issue of a written notice that the Minister has drawn upon the Security, the Licensee

must within one month after the date of that notice:

(i) if the Security is in the form of a security deposit, restore the relevant amount of the

security deposit to ensure that the full Security Amount is maintained; or



(ii) if the Security is in the form of a bank guarantee, replace the bank guarantee to ensure

that the full Security Amount is maintained.

If the Licensee fails to comply with this condition 3.5, the Minister may cancel or suspend this

licence until the Security Amount has been restored as required.

3.6 Subject to condition 3.7, the Security Amount will be the value of timber and/or forest produce

that will be taken from the area of supply in the two peak months of harvesting under this

licence as estimated by an authorised officer, or if the allocation is to be taken in less than two

months, the full value of the timber and/or forest produce as estimated by an authorised officer,

whichever is the greater.

3.7 Without restricting any other powers of the Minister under this licence, the Security may be

drawn upon by the Minister, at the Minister’s discretion, for:

(i) the reasonable Costs of any rehabilitation required under condition 10.5 if the Licensee

fails to comply with the conditions of this licence and that rehabilitation is carried out at

the Minister's expense;

(ii) any other Costs, Losses or Liabilities incurred by the Minister, the Secretary, the

Department or VicForests as a result of the Licensee failing to comply with the

conditions of this licence; or

(iii) any royalties, fees or other charges which have become due and payable under this

licence.

3.8 The Licensee’s debt to the Minister for timber and/or forest produce harvested under this

licence must not at any time exceed the Security Amount of any Security lodged by the

Licensee. If this does occur, or if it is likely that harvesting may cause this to occur, the

Licensee must take one of the following steps:

(i) reduce the level of debt to an amount that is less than the Security Amount, by the

payment of accounts in accordance with condition 9.1;

(ii) increase the Security Amount so that it exceeds the level of debt; or

(iii) make payments in advance of harvesting subject to obtaining the Minister's written

consent to do so.

If the Licensee fails to take one of these steps, the Minister may suspend this licence until the

amount of accumulated debt is less than the Security Amount.

3.9 At any time during the currency of this licence, the Minister may vary the Security Amount of

any Security, taking into account the payment performance by the Licensee under this licence

or any other licence held by the Licensee.

3.10 Unless the Minister is entitled to exercise the Minister's rights under conditions 3.4 or 3.7, the

Security shall be returned to the Licensee within three months after the expiration or

cancellation of this licence.



4. Licence

4.1 The Licensee is hereby granted the right, subject to these and any other licence conditions, to

harvest the allocation from the area of supply.

4.2 The licence shall remain in force for the duration specified on the licence unless it is cancelled

by the Minister.

4.3 The expiration or cancellation of this licence shall not affect the enforcement of any right,

obligation or Liability which arises under it and which is due to be fulfilled before its

expiration or cancellation.

4.4 The Licensee shall not have any right to harvest in the area of supply after the date of expiry of

the licence unless the licence is renewed.

4.5 The Minister reserves the right to issue other licences to persons other than the Licensee in

respect of the area of supply or part thereof.

4.6 This licence may be renewed at the expiry of this licence at the sole discretion of the Minister

based on the Minister's assessment of any one or more of the following:

(i) the performance of the Licensee under the Performance Standards; and

(ii) any other relevant factors including the availability of timber and/or forest produce.

4.7 If this licence is to be renewed in accordance with condition 4.6, the Minister shall notify the

Licensee in writing prior to the expiration of this licence.

4.8 If this licence is renewed under this condition 4, a new licence will be issued to the Licensee to

take effect on the Renewal Date and it will be on the same terms and conditions as this licence,

subject to the Minister's right to add, vary or revoke any conditions in accordance with

condition 17.

4.9 If the Minister does not renew this licence, the Licensee may at any time apply for a new

licence.

5. Cutting Plans

5.1 The Licensee must not commence harvesting prior to the approval of a Cutting Plan by

VicForests.

5.2 VicForests may, at its sole discretion, approve a Cutting Plan or a Revised Cutting Plan,

whether wholly or partially.

5.3 Once approved by VicForests, any Cutting Plan or Revised Cutting Plan or part thereof will be

deemed to form part of this licence from the date of approval.

5.4 Within 21 days after the commencement date of a multi-year licence, the Licensee must

provide a Cutting Plan to VicForests which specifies the following information:

(i) the estimated percentage of the allocation that the Licensee will harvest in each year of

the licence (e.g. 25% in year 1, 25% in year 2 and 50% in year 3); and



(ii) the estimated percentage of the allocation that the Licensee will harvest in each month or

quarter of each year of the licence (e.g. 15% in the first quarter of the first year, 25% in

the second quarter of the first year, 25% in the third quarter of the first year and 35% in

the fourth quarter of the first year and so on); and

(iii) any other information required by VicForests.

5.5 Within 21 days after the commencement date of a single-year licence, the Licensee must

provide a Cutting Plan to VicForests which specifies:

(i) the estimated percentage of the allocation that the Licensee will harvest in each month

or quarter of the licence (e.g. 15% in the first quarter, 25% in the second quarter, 25%

in the third quarter and 35% in the fourth quarter); and

(ii) any other information required by VicForests.

5.6 If VicForests requires that a Cutting Plan be in a particular form, the Cutting Plan must be

submitted in that form.

5.7 During any year of a multi-year licence, the Licensee may submit a Revised Cutting Plan.

Under a Revised Cutting Plan, the Licensee may propose to carry forward any portion of the

allocation which has not been harvested by the Licensee in the current or previous year or

years of the licence into any remaining year or years of the licence.

6. Allocation

6.1 (i) The Minister may, by written notice and at the Minister's sole discretion, decide to

totally, partially, permanently or temporarily withdraw a type or quantity of timber

and/or forest produce allocated to the Licensee and substitute it with another type or

quantity, or other types or quantities, of timber and/or forest produce.

(ii) The Licensee may, within 14 days after the issue of the Minister's notice pursuant to

paragraph (i) above, provide a response or submission to the Minister in relation to the

notice.

(iii) Within three months after the issue of a notice pursuant to paragraph (i), the Minister

will:

consider any response or submission received from the Licensee; and

notify the Licensee of his or her decision in relation to the substitution of the

allocation.

(iv) The Minister's decision will take effect from the date that is 14 days after the date of the

notice under paragraphs (i) or (iii) (as applicable).

6.2 (i) The Minister may, by written notice (Variation Notice) and at the Minister's sole

discretion, decide to reduce the quantity of timber and/or forest produce allocated to the

Licensee if the Licensee has not harvested the percentage of the allocation specified in

the Licensee's Cutting Plan or Revised Cutting Plan (as applicable) for a particular

period.



(ii) The Licensee may, within 14 days after the date of the Variation Notice, provide a

response or submission to the Minister in relation to the Variation Notice.

(iii) Within two months after the issue of the Variation Notice, the Minister will:

consider any response or submission received from the Licensee; and

notify the Licensee of his or her decision in relation to the reduction of the allocation.

(iv) The Minister's decision will take effect from the date that is 14 days after the date of the

notification under paragraphs (i) or (iii) (as applicable).

6.3 The Minister may, by written agreement with the Licensee, increase the quantity of timber

and/or forest produce allocated to the Licensee.

7. Royalties

7.1 Royalties may be charged on all timber and/or forest produce harvested by the Licensee

under this licence.

7.2 Royalty payments shall be calculated on the kind and quantity of timber and/or forest

produce harvested by the Licensee. Measurement of the quantity of timber and/or forest

produce shall be made in the manner and at the locations which are notified from time to time

by the Minister.

7.3 Royalties may be charged on any timber and/or forest produce that is not removed from any

tree felled under this licence and which is left within the area of supply following the

expiration or cancellation of this licence. Royalties may be charged on any such timber

and/or forest produce at the applicable prescribed rates based on a quantity assessment made

by an authorised officer.

7.4 Royalty rates payable by the Licensee will be adjusted on 1 July during each year of this

licence. That adjustment will be determined by either of the following methods at the

Minister's sole discretion:

(i) an adjustment in accordance with movements in the Consumer Price Index over the

preceding 12-month period; or

(ii) an adjustment reasonably determined by the Minister having regard to changes in

market conditions.

7.5 The adjustment of royalties under condition 7.4 will take effect from 1 July of each year of this

licence and be notified to the Licensee in an Adjustment Notice.

7.6 The Licensee may, within 14 days after the date of the Adjustment Notice, provide a response

or submission to the Minister in relation to the Adjustment Notice.

7.7 Within two months after the date of the Adjustment Notice, the Minister will consider any

response or submission that is received from the Licensee and notify the Licensee of the

Minister's decision to either affirm or vary the Adjustment Notice.

7.8 A decision to vary the Adjustment Notice under condition 7.7 will take effect from the date

that is 14 days after the date of notification of that decision. If, as a result of that decision,



there has been any overpayment or underpayment of royalties, this will be reflected in an

invoice issued to the Licensee following the decision.

7.9 If a licence prescribes an allocation of less than 100 cubic metres per year under a single-year

licence, the Licensee may be required to pay in advance all royalties payable on that allocation,

by any date or within any timeframe notified in writing to the Licensee by the Minister or

VicForests (Advance Payment).

7.10 If the Licensee is required to provide Advance Payment in accordance with condition 7.9, the

Licensee must not commence harvesting until the Advance Payment is paid in full unless the

commencement of those activities is approved in writing by the Minister or VicForests.

8. GST

8.1 Unless there is an express provision to the contrary, references to any payments under this

licence are GST exclusive. Payment of GST is to be made in accordance with condition 8.2.

8.2 The amount of GST payable under the GST Act on a taxable supply shall be paid by the

Licensee at the same time and in the same manner as the payment of any consideration for the

taxable supply.

8.3 If the amount of GST Liability on a taxable supply is adjusted at any time, the amount of the

GST payable under condition 8.2 shall be adjusted accordingly, and will be payable by the

Licensee upon demand.

8.4 The Minister’s right to payment under this licence is subject to a valid tax invoice or

adjustment note being delivered to the Licensee by the Minister.

8.5 If this licence requires the Licensee or Minister to pay, reimburse or contribute the amount paid

or payable by the Minister or Licensee in respect of an acquisition from a third party for which

the Minister or Licensee is entitled to claim an input tax credit, the amount required to be paid,

reimbursed or contributed will be the value of the acquisition plus, if the recovery from the

Minister or Licensee is a taxable supply, any GST payable under condition 8.2.

9. Payment of accounts

9.1 Accounts shall be issued by the Minister monthly during the currency of this licence in

accordance with the following conditions:

(i) subject to conditions 7.9 and 9.2, an account issued for the payment of royalties, or any

other fee or charge, payable by the Licensee under this licence, will be deemed to be

overdue if it is not paid within one month after the date of the account;

(ii) if an account remains overdue for more than one month, the Minister or VicForests

may direct the Licensee that no further timber and/or forest produce shall be taken by

the Licensee under this licence until the outstanding amount is paid in full;

(iii) if an account issued under condition 9.1(i) is overdue the Licensee shall pay interest on

the amount due from the date that sum became overdue at the rate for the time being

fixed under section 30 of the Conservation, Forests and Lands Act 1987;

(iv) if an account issued under condition 9.1(i) is overdue the debt may be managed through

a debt collection process which may be immediately commenced by the Minister; and



(v) if an account issued under condition 9.1(i) is overdue for two months the debt may be

referred by the Minister to an external debt collector, and if that account is not

successfully recovered by the external debt collector, the matter may be referred by the

Minister for legal proceedings.

9.2 Notwithstanding condition 9.1(i), if directed by the Minister in writing, the Licensee must pay

in advance any royalties or other fee or charge payable by the Licensee under this licence

within such time as the Minister specifies.

10. Operational

10.1 The Licensee shall carry out harvesting in accordance with any Cutting Plan or Revised

Cutting Plan (as applicable) approved by the Minister under condition 5.2 and:

(i) any forest coupe plan or if there is no forest coupe plan, with the written approval of the

Minister, the Secretary or an authorised officer (as applicable); and

(ii) any code of practice or procedure and any other operational procedures, prescriptions,

specifications and/or guidelines that:

relate to environmental management, timber production and forest produce

sales;

apply to the area of supply or part thereof; and

are notified to the Licensee by the Minister or VicForests,

from time to time.

10.2 The Licensee shall ensure that its harvesting of the allocation is confined to the area of supply.

10.3 The Licensee shall comply with any lawful directions given by the Minister, the Secretary or

an authorised officer.

10.4 As agreed by the Licensee and the Minister, the allocation of timber and/or forest produce

under this licence will be harvested by one or more of the following:

(i) the Licensee;

(ii) a contractor, subject to agreement between the Licensee and the contractor, and condition

14. The agreement between the Licensee and the contractor must be determined and

evidenced in writing on the attached statement and must be lodged with VicForests

before the commencement of harvesting (see Attachment 1).

10.5 The Licensee must carry out and bear the Cost of any rehabilitation and any minor road works

specified in any forest coupe plan or as reasonably directed by an authorised officer.

10.6 Where applicable, the Licensee is responsible for negotiation and agreement with a third party

for the use of roads, constructed by the third party, for harvesting.



10.7 The Licensee is responsible for the construction and Cost of any temporary roads and landings

at the area of supply.

10.8 Where timber and/or forest products are to be sold on a per tonne basis, the Licensee must:

(i) ensure that the timber and/or forest produce is weighed at a registered weighbridge;

(ii) notify VicForests of the registered weighbridge used.

11. Fire

11.1 The Licensee must:

(i) take all reasonable and practicable action to avoid the occurrence of any fire which may

occur within the area of supply or adjacent to the area of supply and for the purpose of

suppressing any fire which may occur;

(ii) if called upon by the Minister, the Secretary or any authorised officer, make available all

assistance in the form of personnel, plant and equipment to the Secretary for the purpose

of suppressing any fire which may occur in the area of supply or adjacent to the area of

supply; and

(iii) allow any contractor engaged by the Licensee to make available all assistance in the form

of the personnel, plant and equipment of that contractor to the Secretary for use by the

Secretary for the purpose of fire suppression.

11.2 Except as hereinafter provided, the Minister or Secretary shall reimburse the Licensee and its

contractors (as applicable) for reasonable Costs incurred in making any personnel, plant or

equipment available to the Secretary for the purpose of fire suppression. The rate of

reimbursement to be paid by the Minister shall be based upon a schedule of rates that shall be

revised annually by the Minister.

11.3 The Minister or Secretary shall indemnify the Licensee and its contractors (as applicable) for

reasonable Costs and Loss incurred with respect to any personnel, plant or equipment while

assisting the Secretary with fire suppression, including but not limited to:

(i) associated travelling;

(ii) any claim for compensation or damages due to accidents or injuries resulting from such

fire suppression activities;

(iii) any insurance premium increase which results from claims made due to Loss or damage

suffered during such a fire suppression activity, provided that such increase is clearly and

solely related to such an activity.

11.4 The Minister or Secretary will not reimburse or indemnify the Licensee or its contractors (as

applicable) for any Loss of production or profit occasioned by the Licensee or its contractors in

making available its employees, plant or equipment for fire suppression.


applicable) with respect to a fire where the Minister is satisfied that the fire was knowingly or

negligently lit, caused or maintained by the Licensee or any of its employees or contractors.




applicable) for any Loss or damage caused by any fire which breaks out within 800 metres of

its operations or processing site unless the Minister is satisfied that the Licensee and its

employees and contractors (as applicable) on being informed or on becoming aware of the fire

took prompt and effective steps to fight the fire.

11.7 Reimbursement made to the Licensee by the Minister under condition 11.2 shall be made

within one month after the last day of the month of supply of the services and if not made by

that date, the amount due shall attract interest at the rate for the time being fixed under section

30 of the Conservation, Forests and Lands Act 1987.

11.8 When a total fire ban applies in respect an area of State forest, the Licensee and its contractors

must not knowingly enter or remain in that State forest unless authorised by the Secretary

under the Safety on Public Land Act 2004 or Sustainable Forests (Timber) Act 2004.

12. Licensed timber harvesting operators

12.1 All persons employed or otherwise engaged by the Licensee to harvest under the authority of

this licence shall either, hold a Timber Harvesting Operators Licence issued by the Minister to

operate in State forests or hold a Forest Operators Licence issued by ForestWorks Industry

Skills Council.

12.2 The Licensee shall advise the Minister in writing of the names and addresses of all persons

employed or otherwise engaged by the Licensee to harvest under the authority of this licence.

The Licensee shall advise the Minister in writing when any person ceases to be so employed or

engaged.

12.3 The Licensee shall ensure that all persons employed or otherwise engaged by the Licensee in

harvesting under this licence comply with the conditions of this licence.

12.4 The Licensee shall ensure that each person employed or otherwise engaged by the Licensee in

harvesting under the authority of this licence is:

licensed for the particular operation or operations for which the person is employed or

otherwise engaged;

properly equipped with all requisite safety equipment; and

properly supervised to ensure compliance with proper operational procedures.

12.5 The Licensee is responsible under the Workplace Injury Rehabilitation and Compensation Act

2013 for registering or insuring all employees.

12.6 The Licensee must comply with all requirements under the Occupational Health and Safety

Act 2004 in respect of all persons employed or otherwise engaged by the Licensee.

12.7 The Licensee must have in place appropriate occupational health and safety and risk

management systems in place to ensure the safety of all persons employed or otherwise

engaged by the Licensee. The Licensee must be able to, on request by an authorised officer or

representative of VicForests, be able to demonstrate its occupational health and safety and risk

management systems.



13. Exemption

13.1 If:

(i) the Licensee’s plant or any works used by it or its contractors it for the purpose of this

licence are damaged or destroyed by fire or other calamity;

(ii) by reason of war, strike, lockout or action in the nature of a strike or lockout, or because

of obligations imposed under condition 11.1, the Licensee is impeded from harvesting

under this licence; or

(iii) the carrying on of operations under the licence becomes commercially impracticable,

then the Licensee may apply to the Minister for suspension of this licence, a reasonable

modification of the terms and conditions of this licence or an extension of time for the

performance of this licence, and provided the circumstances are beyond the reasonable control

of the Licensee, any such application shall not be unreasonably rejected.

13.2 To the extent that it is impracticable or impossible for the Minister to comply with a provision

of the licence by reason of the forests in the area of supply being damaged or destroyed by fire,

disease or other cause, or anything else beyond the control of the State of Victoria:

(i) the Licensee shall have no claim against the Minister for the non-fulfilment of the

Licensee's obligations under other agreements insofar as non-fulfilment is due to any

such cause or reason; and

(ii) the Minister will use best endeavours to provide an economically viable alternative

supply of timber and/or forest produce to the Licensee.

14. Sub-contracting

14.1 The Licensee must include in every sub-contract made by it with a sub-contractor for

harvesting for the purpose of this licence, clauses which incorporate equivalent obligations to

those referred to in conditions 1.1, 1.2, 10.1, 10.2, 11, 12, 13 and 14 as if the sub-contractor

were the Licensee.

14.2 Any sub-contract made by the Licensee with a sub-contractor must be in writing and signed

by all parties before any operations commence and be in any such form as the Minister may

require.

14.3 Within 21 days after the execution of any sub-contract between the Licensee and a sub-

contractor, the Licensee must provide to VicForests a written statement in the form as specified

in Attachment 1 of this licence, to confirm that the sub-contract has been prepared in

accordance with this condition 14.

15. Suspension and cancellation of licence

15.1 If the Licensee does not pay royalties under condition 7, the Minister may cancel this licence,

in which case the Licensee's allocation and all associated harvesting rights will be forfeited.

15.2 Pursuant to s 52(5) of the Forests Act 1958, except as otherwise provided in the conditions of

this licence, if the Licensee contravenes any condition of this licence other than those specified



in condition 15.1, the Minister may issue a notice of intention to suspend or cancel the licence

(Notice of Intention) to the Licensee.

a. The Licensee may, within a reasonable time of the issue of the Notice of Intention, as set

out in the Notice of Intention, provide a response or submission to the Minister in

relation to the Notice of Intention.

b. The Minister will:

consider any response or submission received from the Licensee, within the period

of time set out in the Notice of Intention, prior to making a decision as to whether to

suspend or cancel the licence; and

advise the Licensee of any decision made to suspend or cancel the Licensee's

licence.

c. If the Licensee does not provide a response or submission to the Minister following the

issue of a Notice of Intention, the Minister may make a decision to suspend or cancel the

licence after a reasonable period of time of the issue of a Notice of Intention, as set out in

the Notice of Intention.

15.3 If this licence is cancelled, the Licensee may apply at any time for a new licence in accordance

with VicForests' usual application process, and any such application will be considered on

merit.

16. Licensee companies

Where the Licensee is a company, the Licensee must notify VicForests, within 10 days, of any of the

following:

any changes to directors or office holders;

any changes to the current company address;

any changes to the company structure; and/or

if the company enters into liquidation or administration.

17. Variation and addition of conditions

The Minister may, by giving 21 days' notice in writing served upon the Licensee, vary or revoke any

existing conditions of this licence or add conditions to this licence.

18. Indemnity, Liability and warranty

18.1 The Licensee shall release to the full extent permitted by law and indemnify the Crown, the

Minister, the Secretary, the Department and VicForests, and their officers, employees and

agents, (Indemnified Party) against any Loss, Liability, damage, Claim, action or expense

(including legal expenses) which any Indemnified Party suffers as a direct or indirect result of

any of the following:



(i) a breach of this licence by the Licensee or any breach of a condition of this licence

deemed to be incorporated into this licence by the Forests (Licences and Permits)

Regulations 2009;

(ii) any warranty given by the Licensee under this licence being incorrect or misleading in

any way;

(iii) any neglect, act or failure to act by the Licensee or by any of the Licensee's employees,

agents, officers or sub-contractors; or

(iv) any activity in any way connected with or authorised by this licence,

except to the extent that any such Loss, Liability, Claim, damage, action or expense is caused

by the negligence or other wrongful act or omission of the Indemnified Party.

18.2 If any indemnity payment is made by the Licensee under this condition 18, the Licensee must

also pay to the Indemnified Party an additional amount equal to any tax which is payable by

the Indemnified Party in respect of that indemnity payment.

18.3 Notwithstanding condition 18.1, the Indemnified Party is not liable for any Loss, damage or

injury arising out of or in any way connected with the presence of any foreign object in any

timber and/or forest produce harvested under this licence.

18.4 The Indemnified Party makes no warranty in respect of any timber and/or forest produce

harvested under this licence as to its quality, type, class, soundness, dimension, accessibility or

suitability for any particular purpose or any other like matters.



ATTACHMENT 1

STATEMENT PURSUANT TO CONDITION 14 OF THIS LICENCE

We the undersigned confirm that a written binding sub-contract has been entered into between

__________________________________________________________________(Licensee) and

__________________________________________________________(Sub-contractor), in

accordance with condition 14 of this licence for the harvesting of the type and quantity of timber

and/or forest produce from the harvest location specified in this licence. The sub-contract referred to

incorporates equivalent conditions to conditions 1.1, 1.2, 10.1, 10.2, 11, 12.1, 13 and 14 of this

licence.

Licensee:

Name:_____________________________________________________________

Signature:__________________________________________________________

Date:_________________________

Sub-contractor:

Name:_____________________________________________________________

Signature:__________________________________________________________

Date:_________________________

Witnessed by an officer of VicForests:

Name:_____________________________________________________________

Signature:__________________________________________________________

Date:_________________________



RFT PART D – TENDERER’S RESPONSE

All responses must be provided within the specified boxes and must respond to the Specification (Part B) and in accordance with the Conditions of Tendering (Part A).

Please provide any additional information or documents that will support the information you provide.

This page must be signed and dated below to be eligible for inclusion in the tender.

Request for Tender: Western Victoria Sawlog and Commercial Firewood

RFT number: CF2016.1

I/we accept the provisions contained in the Conditions of Tendering.

Name:

Title:

Company Name:

Signature of Tenderer’s Authorised Officer:

Tenderer’s Information

Name of Tenderer and address of registered office:

Australian Company Number :

Australian Business Number:

If the Tenderer is a Trust, provide the name of the Trust here:

Name and title of Tenderer’s Contact Person:

Telephone:

Facsimile:

Email:

Date:



References

Provide two referees that VicForests could contact regarding your past operational and financial performance, preferably in forest operations.

Client name:

Contact details:

Address:

Telephone Number:

Email:

Period/Type of Relationship:

Description of operations undertaken:

Client name:

Contact details:

Address:

Telephone Number:

Email:

Period/Type of Relationship:

Description of operations undertaken:



Financial Performance and Viability

Tenderers are required to demonstrate that they have the financial capacity to provide, over the term of the contract, all the requirements specified in this RFT. Accordingly, you are required to provide the following information.

If the answer to any of the following questions is “yes”, provide an explanation.

Are there any significant events, matters or circumstances which have arisen since the end of the last financial year which may significantly affect the operations of the Tenderer?

Are there any proceedings, either actual or threatened, against the Tenderer, its parent or associated entities or any director of the Tenderer, its parent or associated entities or have there been any such proceedings within the past five years? If so, what (if any) remedial action has been taken in respect of such proceedings?

Are there any bankruptcy actions against a director of the Tenderer, its parent or associated entities, or has there been within the past five years?

Are there any de-registration actions against the Tenderer, its parent or associated entities on foot, or have there been any within the past five years?

Are there any insolvency proceedings, actual or threatened (including voluntary administration, application to wind up, or other like action) against the Tenderer, its parent or associated entities on foot, or have there been any within the past five years?

Is the Tenderer, its parent or associated entities currently in default of any agreement, contract, order or award that would or would be likely to adversely affect the financial capacity of the Tenderer to provide the Goods and/or Services contemplated by this RFT?

Are there any other factors which could adversely impact on the financial ability of the Tenderer to successfully perform the obligations contemplated by this RFT?

Is the Tenderer solvent and able to meet its debts as and when they fall due in the normal course of business?

In addition to the information required above, Tenderers are required to undertake to provide to VicForests (or its nominated agent) upon request all such information as VicForests reasonably requires to satisfy itself that Tenderers are financially viable and have the financial capability for which they are tendering and to otherwise meet their obligations under the Proposed Forest Produce Licence.

Provide your undertaking to comply with this request.



Provide any further detail to demonstrate your financial capacity



Safety Systems and Performance

Provide details of your safety management system or plan identifying how you will comply with VicForests mandatory safety standards. Attach any necessary documentation.

Provide any details of Worksafe inspection of your business in the last 3 years. Include copies of any inspection reports.

Provide detail of any incident that has occurred in your business in the last 2 years and what you have done to minimise the chance of that incident recurring.



Operational Performance

Describe the method to be used to harvest the forest produce.

Describe the intended processing of the forest produce sought.

Include in your description the type and location of processing plant and the products you intend to produce:

Provide details of forest operations currently or previously undertaken by your business/ company over the past five (5) years:

Describe how you will comply with environmental requirements of any timber harvesting you conduct:



Skills and experience

Provide details of the skills and experience of all key personnel (including sub-contractors) in conducting forest operations. Include: a) years experience b) training undertaken c) competencies

Attach evidence of training and competencies, including FOLS or Timber Harvesting Operator Licence details.

Bush Storage

Describe any processing you will conduct and explain how long timber will be stored in the forest.

How long, after timber is felled do you expect to bring timber to account with VicForests?



Processing capability

Provide detail of each vehicle and item of plant expected to be used in you operations. Include any current registration details.

Type of vehicle or plant:

Make:

Mode:

Year of manufacture:

Condition:


Make:

Mode:


Condition:


Make:

Mode:


Condition:


Make:

Mode:


Condition:


Make:

Mode:


Condition:



Local/Regional Economic Contribution

Provide details about where you where you intend to process and store timber for sales.

Provide details of any local employment opportunities that will be available if you are successful in the Tender process.

Describe how you intend to add value to the forest produce sought.

Include in your description the type of value-added products that you intend to produce.



Insurance

Provide details of all relevant insurances maintained by the Tenderer.

Attach a certificate of Currency for each policy.

Public Liability

Insurer:

Policy number:

Level of cover:

Expiry date:

Workers Compensation (Workcover)

Insurer:

Policy number:

Level of cover:

Expiry date:

Vehicle insurance



Conflict of interest

Provide details of any interests, relationships or clients which may or do give rise to a conflict of interest and the area of expertise in which that conflict or potential conflict does or may arise and details of any strategy for preventing conflicts of interest.

Outline the processes you have in place to handle any future conflict of interest (actual or perceived).

Any other matters

Detail any matters which have not been covered in previous sections, and you believe need to be taken into consideration when your Tender is evaluated.



Price – Tender Lots

Refer to RFT Part B – Specification for forest produce for details regarding pricing.

All figures are annual quantities.

Prices tendered should be GST inclusive.

Firewood

Product Type FMA Locality (indicative only)

Units Total

available

Preferred tender quantity

Minimum acceptable

quantity

Quantity Price/ unit


Commercial Firewood - Common Species Portland All m3 500

Commercial Firewood - Common Species Otway All m3 3,000

Commercial Firewood - Common Species Midlands All m3 2,700

Commercial Firewood - Common Species Bendigo Pyrenees m3 1,500

Commercial Firewood - Durable Species Bendigo Dunolly/Inglewood m3 900

Commercial Firewood - Durable Species Bendigo Maryborough m3 500

Commercial Firewood - Durable Species Bendigo Rushworth/Heathcote

m3 3,500

Commercial Firewood - Durable Species Horsham All m3 2,000

pc = pieces



Logs

Product Type FMA Locality (indicative only)

Units Total

available


Minimum acceptable

quantity



Box/Ironbark sawlogs grade 1 Bendigo St Arnaud m3 25

Box/Ironbark sawlogs grade 1 Bendigo Rushworth/Heathcote

m3 100

Box/Ironbark sawlogs grade 2 Bendigo Bendigo m3 200

Box/Ironbark sawlogs grade 2 Bendigo Dunolly/Inglewood m3 450

Box/Ironbark sawlogs grade 2 Bendigo Maryborough m3 230

Box/Ironbark sawlogs grade 2 Bendigo St Arnaud m3 200

Box/Ironbark sawlogs grade 2 Bendigo Rushworth/Heathcote

m3 500

Common Species sawlogs grade 1 Bendigo Pyrenees m3 100

Common Species sawlogs grade 2 Bendigo Pyrenees m3 450

Mixed Species sawlog B, grade All except Wombat Sf & Mt Cole Sf

Midlands m3 1,000*

Mixed Species sawlog C grade

Mixed Species sawlog D grade

Mixed Species residual log All except Wombat Sf & Mt Cole Sf

Midlands m3 1,000

* VicForests cannot provide an estimate for the proportion of grades that may be available. Mixed species B, C, &D grade logs will be made available as ‘run-of-the-bush’.



Other Products

Product Type Size class FMA Locality (indicative only)

Units Total

available


Minimum acceptable

quantity



Bush Sawn Fencing Timbers - Durable Species

1.8 m x 131-210 cm2 Horsham All pc

1,500

Bush Sawn Fencing Timbers - Durable Species

2.1 m x 131-210 cm2 Horsham All pc

Round Fencing Timbers 1.8 m x 300-324 mm Horsham All pc

150


Round Fencing Timbers 2.4m x 250-274 mm Horsham All pc


Hewn timbers 0.0 m – 4.5 m Horsham All m3 100

Further Information (Please provide further information about priorities or preferences for timber lots for which you are submitting a tender)



Quantities – Expression of Interest

Product Type FMA Units Total

available Preferred tender

quantity

Minimum acceptable

quantity

Mixed Species Sawlog – B, C, D grade Portland m3 2,000*

Mixed Species Residual Log Portland m3 2,000

* VicForests cannot provide an estimate for the proportion of grades that may be available. Mixed species B, C, &D grade logs will be made available as ‘run-of-the-bush’.

Further Information (Please provide further information that would assist VicForests in considering your Expression of Interest)

Request for Tender...Structure of RFT This RFT comprises the following sections– Introduction –...

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Transcript of Request for Tender...Structure of RFT This RFT comprises the following sections– Introduction –...