ICN Gateway helps local supplier win $4.2 million contract

ICN Gateway helped local supplier Idec Solutions win a $4.2 million contract on the $1.76 billion Gold Coast University Hospital project after registering with Industry Capability Network (ICN).

Idec won the contract to supply steel fabrication and onsite rigging services after it was selected from the online database ICN Gateway.

ICN helped Gold Coast University Hospital (GCUH) managing contractor Lend Lease develop a Local Industry Participation Plan (LIPP), which links project managers with Queensland-based suppliers and service providers.

Background

Idec designs and supplies structural steel for industrial, commercial and mining projects. It has developed a 'one-stop shop' as its point of difference in the industry. It provides:

  • custom-engineered buildings
  • design and construct services
  • structural engineering and detailing services
  • corrosion protection services for metallic items
  • in-house architectural, engineering and drafting services.

Idec was established in 1990 as Big Country Buildings and was renamed in 2006 to better reflect and describe the business’s core services: ideas, design, engineering and construction. It operates from a 3,500m2 factory at Hemmant, on Brisbane’s southside. Idec typically has about 20 projects in progress at any one time, at varied stages, to maintain efficiencies and workload.

Opportunity

In March 2006, the Queensland Government announced plans to build a new 750-bed tertiary teaching hospital in Southport, on the Gold Coast, in one of the nation’s largest public health infrastructure projects. GCUH will replace the existing Gold Coast Hospital at Southport, which was built in the 1970s. It will offer a higher level and greater range of complex care, including specialist cancer and cardiac services, neurosciences, and trauma and neonatal intensive care.

The Queensland Government appointed Lend Lease (formerly Bovis Lend Lease) to design and build the hospital. Construction began in 2008 and is scheduled for completion in December 2012.

ICN assistance

Lend Lease was required to prepare a Local Industry Participation Plan (LIPP) before it started work on GCUH.

The plans are required by the Queensland Government for government-funded infrastructure or other projects valued at more than $5 million, including projects funded by government grants. LIPPs aim to ensure capable Queensland companies receive full, fair and reasonable opportunity to tender for work packages on major projects. ICN assisted Lend Lease complete a LIPP in July 2008 and develop regular progress reports on its implementation.

At January 31, 2012, GCUH had awarded 334 work packages valued at $739 million to suppliers. Of those, 299 had been awarded to Queensland businesses.

Lend Lease used the online ICN Gateway database to connect with potential GCUH suppliers. ICN Gateway gives project managers access to comprehensive supplier information.

Suppliers register their interest in particular projects and ICN searches the online portal when a project requires particular products and services. Project owners make the final decision on which suppliers they invite to tender.

Idec Senior Projects Manager Ian Glover said he registered the company with ICN in early 2010 after investigating information on its services.

“I was doing my own research when I heard about ICN and the assistance it provides. Through registering with ICN, we have had a lot of exposure and been able to tender for more projects.”
Idec General Manager Damian Gartshore said Idec supplied structural steelwork for the hospital’s mental health building.

“Idec started work on site in October 2010 and finished in May 2011. It was always going to be a difficult job, but we were chosen for our project management expertise, in-house workshop detailing, steel fabrication and onsite rigging,” Gartshore said.

ICN also helped Idec win a tender to supply 120 tonnes of steel to the $408 million redevelopment of the Mackay Base Hospital, which is scheduled for completion in 2013.

After registering on ICN Gateway, Idec chose to participate in the Major Projects Supplier Program (MPSP) to understand what major projects considered when selecting suppliers and to determine areas in which Idec needed to improve.

ICN developed the MPSP with the Queensland Government and the fully subsidised program gives eligible Queensland companies a comprehensive analysis and assessment of their current position against the unique requirements of major projects.

The assessment showed Idec had implemented most of the core requirements contractors considered essential for suppliers to participate in major projects. The only potential area flagged for improvement was implementing a certified quality system.

Glover said Idec had since gained ISO 9001 quality certification. He said more than anything, MPSP reminded Idec of the areas that needed improvement.

Gartshore said Idec had been rewarded significantly through its participation on the GCUH project. The contract had injected $4.2 million into the business and helped Idec develop a closer relationship with Lend Lease.

Gartshore said it was rewarding to be involved in a community project. He said it felt like we were giving back to the community.