Tender for new CityCats show some mandatory criteria not met
There are troubling questions about the tendering process and the specifications requested for Brisbane’s new double-decker CityCats
City Beat
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ROUGH WATERS
Brisbane’s second new double-decker CityCat, dubbed Neville Bonner, has started cruising up and down the river and more are on the way.
The regular “Living in Brisbane’’ happy-talk newsletter from Lord Mayor Adrian Schrinner, dropped in mailboxes this week, informs residents that the next vessel is already under construction and work starts on another one early next year.
But, behind the scenes, marine industry sources tell us there remain troubling questions about the tendering process and the specifications requested for the big boats.
As one source quipped: “The BCC asked for a Toyota Echo and received a Jeep.’’
Following a competitive tender process that attracted only a few bidders, the City Council chose a relatively new local outfit called Aus Ships last year to build the next-generation catamarans at a cost of nearly $4m a piece.
In doing so, they severed ties with the previous supplier, Norman R Wright and Sons, which had made 13 of the earlier models since 2003. It’s been in business in the city for more than 110 years.
Copies of the tender documents show that some of the mandatory criteria were not met.
“One key example is that the new design must be under a certain weight, so it can be lifted out of the water with the council-owned travel lift. It ended up too heavy and too wide, but they accepted it anyway and then ordered more,’’ an insider told City Beat.
“They were also very specific about the low wash requirements, which they said would be measured and could not exceed the wash of the existing CityCats.’’
But it’s understood that no testing was carried out to check this even though heavier boats generally create more wash.
The goalposts were also changed in relation to “shaft brakes’’ that were required as part of the tender but which the council later said were not needed.
“If they are required or not, it is not a fair tender process if, according to the BCC, the contract was awarded on price and there are key pieces of equipment being left out,’’ a source said.
A Council Opposition spokesman, describing the issue as “unsettling’’ and “extremely concerning,’’ called for an independent investigation.
But a Council spin doctor dismissed the matter as baseless without addressing specific issues and pointed out that an “independent probity auditor’’ had overseen the process.
She also noted that the new vessels don’t require shaft braking—even though the tender specifications said otherwise.
Aus Ships boss Tommy Ericson, who launched his Murarrie-based firm in 2011, declined to comment Wednesday and referred us back to the council.
Ericson’s project manager, Rob Mulrine, previously spent 18 years in fleet maintenance with Transdev, which operates the CityCats. He did not return a call.
Norman R Wright boss Tony Riek also would not comment.
Aus Ships delivered the first CityCat for $3.7m but the second one cost $3.975m. Despite negligible inflation, Cr Krista Adams attributed the price jump to CPI.
Schrinner said last year that about $30m had been set aside for six more of the boats to be rolled out through 2023.
FLAME GRILLED
A Brisbane hospitality veteran who was one of the youngest ever McDonald’s franchisees is getting back behind the grill.
We learned this week that Shawn Kerr will take on the newly-created role of CEO for the Burger Urge chain.
The business, launched by brothers Sean and Colby Carthew from a single outlet in New Farm in 2007, currently operates 29 eateries across the country.
Kerr has been tasked with the ambitious goal of growing it into a $100m international enterprise over the next five years.
As part of the management shake-up, Sean Carthew will step back to focus on strategic expansion and help Kerr meet his targets.
Kerr, who stepped down as general manager of Battery World in July after less than two years, previously helped launch fast-food groups Zambrero’s, Carl’s Jr. and Cinnabon into the Australian market.
“I’m very excited about the long-term vision for the group and thrilled to be at the helm of a dynamic young company such as Burger Urge, which has grown from a start-up to a national business over the past decade,” Kerr said.
But, in warm’n fuzzy comments that may raise an eyebrow or two among lenders, Kerr also noted that the brothers “are less concerned about growth and the bottom line and more interested in making a positive contribution to the world”.
What that means in practice is anyone’s guess but it’s clear that the company’s previous growth benchmarks have fallen short. Back in early 2017, for instance, the brothers said they aimed to have 100 stores around Australia by 2021.
Burger Urge, which once named some of its creations after Pauline Hanson and Donald Trump, has also gone through its share of legal dust ups.
Collins Foods Group won court orders in June to prevent the company from flogging a fried chicken sandwich on cheese bread known as “The Sizzler’’ in a clear nod to the buffet-style chain. It was later rebadged as “The Sizzle’’.
Back in 2016, Burger Urge also found itself in a court battle with former mentor and chairman Tom Potter, founder of the now-defunct Eagle Boys pizza group. The two camps eventually reached a confidential settlement to go their separate ways.
DOING GOOD
It’s the Brisbane business putting a social conscience on par with the bottom line.
Snack foods maker Do Good Labs announced this week that it had struck a deal to supply its mixed nuts packages to Woolworth stores across the nation.
The company, launched by brothers David and Daniel Rifkin last year, have vowed that every sale will help it deliver a meal to Aussies in need through charity OzHarvest.
The pair have already donated the equivalent of 100,000 meals during the COVID-19 crisis and have now set themselves the goal of reaching 500,000 over the summer.
“We set this project up so that everyday Aussies can directly help the less fortunate in our communities,’’ David told us.
The company, which also champions mental health awareness, suffered a significant blow when its major client Virgin Australia ceased flying earlier this year and it’s unclear if the relationship will resume under the airline’s new owner.
But the setback prompted Do Good Labs to strike a deal to supply its energy bars to Coles supermarkets, Express sites and online.
The deal, which sees 50 cents from the sale of every box donated to mental health promoter Beyond Blue, saved the business from certain ruin, David said.