SCH065 2018-2023
PART 1. SCHEME CONDITIONS AND REQUIREMENTS
COPYRIGHT
This document has been prepared by NSW Procurement for the Secretary, Department of Finance, Services and Innovation for and on behalf of the Crown in right of the State of New South Wales. This RFP is protected by Crown copyright.
© State of New South Wales – NSW Procurement, for and on behalf of the Crown in right of the State of New South Wales, 2014.
All rights reserved. No part of this RFP may be produced by any process, electronic or otherwise, in any material form or transmitted to any other person or stored electronically in any form, without the prior written permission of the State of New South Wales, except as permitted under the Copyright Act 1968.
For the purposes of this RFP, inquiries should be directed to the contact officer of this RFP specified on page 1 of this document.
Other matters should be directed to:
DirectorCategory Management Goods and Services
NSW Procurement
Department of Finance, Services and Innovation
Level 11 McKell Building
2-24 Rawson Place
Sydney NSW 2000
Tel: (02) 8522 7904
TABLE OF CONTENTS
1Introduction
2Definition of Terms
3Selection Criteria
4Presentation to Evaluation Team
5Notification of Assessment Outcome
6Confidentiality
7Request for Review of the Decision
8Purchase Process
9Manufacturer’s Warranty
10NSW Government Procurement: Small and Medium Enterprises Policy
11Goods and Services Procurement Policy Framework
12Insurance
13Changes to Approved Provider Status
14Reporting Requirements
15Supplier Information Management
16Performance Management
17Temporary Suspension From The Scheme
18Removal From The Scheme
19Request For Review Of Decision To Suspend Or Revoke Membership
20Disclaimer
21Termination
22List of Approved Providers may be Published
23Government Information (Public Access)
24Respondent’s Acknowledgment
25Prequalification No Guarantee of Orders
26Review and Development of the Scheme
27Amendments to the Scheme
28NSWBuy®
29Motor Vehicle Categories
30Transmission
31Standardisation
32Luxury Tax Limit
33Total Cost of Ownership
34Applications for new Motor Vehicle Models and Variants during the term of the Panel of Approved Providers
35Removal of superseded Motor Vehicle Models and superseded Motor Vehicle Model Variants
36Motor Vehicle Model Variant Discounts off List Price
37Safety
38Minimum Motor Vehicle Requirements
39Additional Mandatory Requirements for all Motor Vehicle Model Variants
40Fuel to be Supplied on Delivery
41Registration and Insurance
42Delivery and Acceptance of Motor Vehicles
43Business Use Only
SCHEDULE 1: List of Nominated Vehicle Dealers owned by the Approved Provider
SCHEDULE 2: List of Third Party/Independent Nominated Vehicle Dealers that sell ...... the Approved Providers vehicles
SCHEDULE 3: Details of the Third Party/Independent Nominated Vehicle Dealer that .... sell the Approved Providers vehicles and is signing this contract
ATTACHMENT 1: Customer Contract Terms and Conditions
1.Customer Contracts
2.Vehicles
3.Pricing
4.Delivery
5.Payment
6.Warranties of Approved Provider and Nominated Vehicle Dealer
7.Indemnity and Liability
8.Dispute Resolution
9.Termination
10.General
11.Definitions
1Introduction
1.1 The NSW State Government Prequalification Scheme: Motor VehiclesSCH653 (the Scheme) was established on 1 April 2012 for five years to 31 March 2018 and has been rolled over for another five years to 31 March 2023.
1.2NSW Procurement (NSWP) in the Department of Finance, Services and Innovation (DFSI) is responsible for overseeing and managing the Scheme.
1.3Manufacturers may apply to join the scheme at any time during the five year period.
1.4The Scheme provides the NSW Government and other Eligible Customers, including Government agencies, State Owned Corporations and Non-Government Organisations with access to a range of Motor Vehicles comprising:
(i)Micro, light, small, medium and large passenger vehicles, both sedans and wagons;
(ii)Sport Utility Vehicles;
(iii)Light Commercial Vehicles;
(iv)Commercial Vehicles.
1.5The NSW Government’s objectives for its Motor Vehicle fleet are to:
(a)Decrease the capital cost of Motor Vehicles;
(b)Reduce the total Motor Vehicle life cycle cost;
(c)Meet specified Motor Vehicle safety standards;
(d)Implement and support processes to minimise greenhouse gas emission.
To achieve these objectives the Government will aggregate Motor Vehicle purchase volume to become a more attractive and core customer by:
(a)increasing volume commitments to fewer suppliers;
(b)reducing and standardising the range of cars available;
(c)improving processes;
(d)encouraging suppliers to offer maximum discounts by:
(e)committing volume where possible;
(f)improving ease and efficiency of doing business with NSW Government;
(g)maximising the period of forward commitment.
In addition, Motor Vehicle options and accessories and spare parts can be supplied under the Scheme.
Applicantsare tonote that, if granted admission to the Scheme, it is intended they will supply Motor Vehicles in accordance with the standard Customer Contract for all purchases made under the Scheme. The terms and conditions of the standard Customer Contract will be those found at Attachment 1 to this document.
Applicants will note this application includes three documents:
1. Scheme Conditions and Requirements
2.Application Document
3. MV Details and Pricing File.
2Definition of Terms
“ABN” means an Australian Business Number as provided in the GST Law.
“Applicant” means the entity that applies to join the Scheme.
“Approved Provider” means an Applicantthat has been granted admission to the Scheme.
“Secretary” means the Secretary, Department of Finance, Services and Innovation and includes the duly authorised delegates, including officers of the Department of Finance Services and Innovation.
“Customer” means an Eligible Customer that has placed an Order.
"Customer Contract" means the contract between the Eligible Customer and the Approved Provider or Nominated Vehicle Dealer for the supply of Motor Vehicles.
“Customer Contract Term” means, if applicable, in respect of a Customer Contract, the term of that Customer Contract.
“Eligible Customer” means:
(a)a government agency as defined in the Public Works and Procurement Act 1912; and
(b)a public body as defined by clause 6 of the Public Works and Procurement Regulation 2014; and
(c)such other persons, entities or jurisdictions, which the Secretary, Department of Finance, Services and Innovation may from time to time in the Secretary’s discretion, specify.
(d)A detailed definition can be found here:
“Evaluation Team” means the team established to evaluate Responses to the RFP and subsequent annual refreshes.
“Fleet Management Providers” means a panel of Fleet Management Providers appointed bythe Department of Finance, Services and Innovation under Contract C300.
“Framework” means the “NSW Government Procurement Policy Framework”. The Framework is located at:
“GST” is a goods and services tax and has the same meaning as in the GST Law.
“GST Free Supplies” and “Input Taxed Supplies” have the same meaning as in the GST Law.
“GST Law” means any law imposing a GST and includes A New Tax System (Goods & Services Tax) Act 1999 (Cth) or if that Act does not exist, means any Act imposing, or relating, to a GST and any regulation made under those Acts.
“Guaranteed Delivery Time” means the guaranteed time for the supply of the Motor Vehicle as agreed by the Customer and the Nominated Vehicle Dealer in respect of a particular Customer Order.
“Late Response” means a Response received after the Closing Date and Time for Responses and includes a Response which is only partly received by the Closing Date and Time.
“Lessors” means a panel of Lessors appointed by the Department of Finance, Services and Innovation under Contract C333. It is a full service fleet leasing panelfor the NSW Government Services.
“Material Adverse Event” means where the Respondent or Approved Provider is subject to insolvency or an ICAC inquiry or legal proceedings.
"Motor Vehicle/s" or "MotorVehicle Model/s" or "MotorVehicle Model Variant/s" means:
(a)Small, Medium and Large passenger sedans and/or wagons;
(b)Sport Utility Vehicles;
(c)Light Commercial Vehicles; and
(d)Heavy Commercial Vehicles under the Scheme.
“Nominated Vehicle Dealer” means the Motor Vehicle Dealer that has entered into an agreement with the Approved Providers to supply Motor Vehicles under this Scheme to Eligible Customers on the Customer Contract terms and conditions.
“NSW Procurement (NSWP)” means a business unit of the Department of Finance, Services and Innovation representing the Secretary and authorised to arrange and administer contracts on behalf of the Secretary.
“Order” means a valid order issued to a Supplier or Nominated Vehicle Dealer in accordance with the Customer Contract and Part 3. Statement of Requirements.
"Panel" means the Panel of Approved Providers under the Pre-Qualification Scheme: Motor Vehicles
“Review Committee” means the committee established to review decisions made by the Department of Finance Services and Innovation, which are the subject of an appeal by a Respondent or an Approved Provider. The Review Committee is composed of independent NSW Public Sector Officer(s).
“Scheme” means the Pre-Qualification Scheme: Motor Vehicles administered by the Department of Finance Services and Innovation.
“Scheme Termination Notice" means a notice published on the NSW Government eTendering website issued by the Department of Finance, Services and Innovation advising of the intent to terminate the Scheme.
“Supplier” means an Approved Provider.
3Selection Criteria
3.1Applications to the Panel will be assessed according to the following criteria:
(a)Capability and capacity to perform under the Scheme Conditions;
(b)Compliance with NSW Government procurement policy and other relevant policies to the supply of the Goods/Services;
(c)Compliance with relevant legislation and standards;
(d)Financial capacity and stability;
(e)Compliance with the Scheme Conditions & Requirements;
(f)Total cost of ownership.
3.2An Evaluation Team will assess all Responses received and recommend the membership of the Panel to be formed under the Scheme.
4Presentation to Evaluation Team
4.1The Evaluation Team may invite the Respondent to give a presentation on their Response to the Evaluation Team.
5Notification of Assessment Outcome
5.1DFSI on the recommendation of the Evaluation Team may accept a Response (with or without limitation) or reject the Response.
5.2The DFSI will notify all Respondents of the outcome of their Response in writing.
6Confidentiality
6.1Information submitted by an Applicantwill be treated as confidential by DFSI unless otherwise required by law.
6.2Information submitted by an Applicant may be subject to presentations, enquiries, and confirmation. Applicantsare deemed to have authorised any such action.
7Request for Review of the Decision
7.1Should an Applicantbelieve that there are substantive grounds forDFSI to reconsider their decision not to admit the Applicantto the Scheme, the Applicantmay request a review of the decision in writing, providing full details of the reasons for the request to:
Contact Officer, Pre-Qualification Scheme: Motor Vehicles
Department of Finance, Services and Innovation
NSW Procurement
Level 11, McKell Building
2-24 Rawson Place
SYDNEY NSW 2000
7.2DFSI will refer the matter to the Review Committee and notify the Applicantin writing of the outcome of the review.
8Purchase Process
8.1A Customer may initiate the ordering process by either sending a Request for Quotation (RFQ) to one or more Approved Providers or Nominated Vehicle Dealers or by directly issuing an Order to a single Approved Provider or Nominated Vehicle Dealer.
8.2An important feature of the ordering process is the different approaches taken in respect of NSW Government agencies (via Fleet Management Providers) and other Eligible Customers.
8.2.1NSW Government Agencies
Each 9 monthly period NSW Procurement aggregate the Motor Vehicle purchase requirements of Government agencies.
DFSI may release RFQs to Approved Providers on the Panel and seek upfront discounts based on ninemonthly aggregated Motor Vehicle purchase volumes.
RFQ responses will be evaluated and a number ofupfront discounts offered by successful respondents will be accepted. Fleet Management Providers will complete the purchase of Motor Vehicles on behalf of NSW Government agencies throughout the nine month period covered by the RFQ.
8.2.2Other Eligible Customers
Other Eligible Customers, if purchasing a significant number of Motor Vehicles may also wish to run their own RFQ process similar to that run by DFSI for NSW Government Agencies.
9Manufacturer’s Warranty
9.15 Year Warranty: All Motor Vehicle Model Variants in all categories must have 5 Year Warranty available. If a 5year warranty is not standard on a Motor Vehicle Model Variant, the Approved Provider is required to provide extended warranty which when combined with the standard warranty will amount to a 5 year warranty. Upon the sale of any Motor Vehicle purchased from the Scheme, the 5 year warranty (including extended warranty period) must be transferable to the new owner.
9.2The Approved Provider must, for each Model Variant sold to an Eligible Customer, provide the Manufacturer’s warranty to the Eligible Customer. The Nominated Vehicle Dealer that supplies a Model Variant to an Eligible Customer must pass on the manufacturer’s warranty to the Eligible Customer and the Nominated Vehicle Dealer must arrange for the repair or replacement of the Motor Vehicle at the Nominated Vehicle Dealer’s expense (alt. in accordance with the manufacturer’s warranty).
10NSW Government Procurement: Small and Medium Enterprises Policy
10.1The Approved Provider must comply with applicable NSW Government policies and guidelines including the NSW Government Procurement: Small and Medium Enterprises Policy Framework (available at Under the Scheme, the Approved Provider must prepare a Small and Medium Enterprises Participation Plan (SMEPP) for contracts valued at $10 million and above when engaged by a Government Agency.
11Goods and Services Procurement Policy Framework
11.1The Goods and Services Procurement Policy Framework outlines how the NSW Government will conduct its procurement activities when interacting with the private sector. The Framework establishes standards of behaviour expected from Customers and Approved Providers and is located at:
11.2
11.3Approved Providers must at all times comply, and must ensure its Nominated Vehicle Dealers comply, with the Framework and the requirements of the Scheme Conditions.
11.4Any breach of the Framework may result in the removal from the Scheme.
12Insurance
12.1The Approved Provider must obtain, and must ensure its Nominated Vehicle Dealers obtain, on terms that are reasonably satisfactory to DFSI and thereafter maintain the policies of insurance listed below during the term of the Scheme and during each Customer Contract Term.
TYPES OF INSURANCES / MINIMUM SUM INSUREDBroadform Public and Products / $10 million for any single occurrence and unlimited in the aggregate as to the number of occurrences
The total aggregate liability during any one period of insurance for all claims arising out of the Approved Provider’s Products shall not exceed $20 million
Workers Compensation / As required by the laws of each relevant State and Territory
12.2Evidence of insurance
12.2.1On request by DFSI, the Approved Provider must provide certificates of currency proving that the policies of insurance required under this Scheme have been effected and are current. A certificate of currency provided under this section must be issued by the insurance company providing insurance and must contain all details reasonably requested by DFSI, including a summary of all risks covered and any exclusions.
12.3Approved Provider notification
12.3.1The Approved Provider must notify DFSI within two (2) business days of any event which affects or may affect the Approved Provider’s compliance with this clause, including any cancellation of a policy or reduction of limit of coverage.
13Changes to Approved Provider Status
13.1Approved Providers must immediately inform DFSI of any significant change in their, or the Nominated Vehicle Dealer's, financial capacity, capability, ownership status, key personnel, contact details or address by writing with full details to:
Contact Officer, Pre-Qualification Scheme: Motor Vehicles
Department of Finance, Services and Innovation
NSW Procurement
Level 11, McKell Building
2-24 Rawson Place
SYDNEY NSW 2000
14Reporting Requirements
14.1Approved Providers are required to submit a report to DFSI every quarter containing the details of allMotor Vehicle purchases by all Eligible Customers during the reporting period.
14.2A sample report template which details all required information to be provided to DFSI is located in the excel workbook titled “Part 2 Motor Vehicle Details and Pricing File” in the tab titled “MV Reporting + Date”.
15Supplier Information Management
15.1Organisational Information
15.1.1Approved Providers must ensure that their information and their Nominated Vehicle Dealer information, including contact details and insurance certificates of currency remain current. Where details change, Approved Providers must immediately advise DFSI.
15.2Material Adverse Events
15.2.1Where an Approved Provider or a Nominated Vehicle Dealer, becomes subject to a Material Adverse Event, it must immediately notify DFSI by writing to:
Contact Officer, Pre-Qualification Scheme: Motor Vehicles
Department of Finance, Services and Innovation
NSW Procurement
Level 11, McKell Building
2-24 Rawson Place
SYDNEY NSW 2000
16Performance Management
16.1DFSI will manage the performance of Suppliers by:
(a)monitoring supplier performance on financial capability, Goods and ServicesProcurement Policy Framework compliance, contract performance and project outputs and outcomes;
(b)applying sanctions such as temporary suspension from the Scheme, where performance is deemed unsatisfactory;
(c)revoking a Supplier’s membership to the Scheme following due consideration of the circumstances, where performance is determined to be unsatisfactory; and
(d)providing the opportunity for a Supplier to request a review of the decisions referred in paragraphs (b) and (c) above.
17Temporary Suspension From The Scheme
17.1DFSI may suspend a Supplier from the Scheme for up to 90 days if it considers the Supplier has:
(a)not complied with the requirements of the Scheme; or
(b)demonstrated unsatisfactory performance.
17.2Before a Supplier’s membership on the Scheme is suspended, DFSI will advise the Supplier via email of the matters prompting the proposed action and will give the Supplier the opportunity to provide reasons as to why its membership should not be suspended.
17.3DFSI will advise the Supplier of the reasons for the suspension and of any actions by the Supplier required to lift the suspension. A Supplier that has been suspended from the Scheme must inform DFSI if and when the actions required to lift the suspension have been undertaken.
17.4DFSI will regularly review the status of Suppliers who have been suspended. If the action taken by the Supplier is considered by DFSI to be insufficient, the suspension period may be extended and the Supplier will be notified accordingly. DFSI may revoke the suspension if it is satisfied that the Supplier has taken appropriate action to address the reasons for the suspension.