4.3.2  Expression of Interest ("EOI") Phase

The EOI phase is the first step in the formal bidding process. The purpose of the invitation for EOI is to:

•  formally advise the market of the project and the services that government seeks to have delivered;

•  communicate to the market the proposed timeframes, evaluation criteria and hurdles to be met for the project to move forward;

•  confirm the level of market interest in the project and provide an avenue through which private parties can comment on the proposed project structure; and

•  obtain EOI responses from the market which allow government to shortlist a number of private parties to proceed to the RFP phase who are most capable of delivering against the project objectives over the project term.

Key aspects during the EOI phase involve:

•  develop the EOI documentation. This document should include important information about the project, information to help market participants respond and the criteria that will be applied to evaluate EOI responses; and

•  evaluate and shortlist. This process will involve evaluating the EOI responses, in accordance with the evaluation criteria and a pre-approved evaluation plan, to ultimately choose a number of shortlisted bidders who will proceed to the RFP phase.  The shortlisted bidders generally include three parties to ensure adequate competition is created and the risk of a party withdrawing is covered.  Certain instances (such as the presence of related-parties bidding or a specific need to increase competitive tension) may require a shortlist of more than three.  However, this can potentially lead to some shortlisted bidders losing interest, as the chance of success may not warrant the significant investment of time and resources in preparing a bid.  In instances where there are only a limited number of private sector parties capable of bidding, a shortlist of fewer than three bidders may be appropriate.