4.3.3  Request for Proposal Phase ("RFP")

The RFP phase involves the release of the RFP and evaluation of RFP responses to select a preferred bidder. Key parts of this process involve:

•  RFP development phase.  Broadly the RFP will comprise:

general information conveyed to shortlisted bidders about the project background, the tender process, the evaluation criteria, and the required format for responses;

the output specification which clearly details the outputs that the procuring agency is seeking;

the payment mechanism and performance requirements (particularly relevant for social infrastructure projects);

commercial framework summary of the proposed risk allocation and key commercial principles;

the contractual documentation which sets out the terms and conditions on which government proposes to undertake the PPP; and

the evaluation criteria and proposal schedules.

•  compilation and finalisation of the PSC;

•  assisting shortlisted bidders during the RFP 'bid' phase through an interactive tender processes. An interactive tender process provides shortlisted bidders with an opportunity to discuss the development of their concepts and designs and to seek clarification and feedback in the context of the government's output requirements prior to lodgment of RFP responses (refer Section 4.4.4 of the Overview);

•  the RFP 'Evaluation' phase. This involves evaluating the RFP responses against the evaluation criteria as outlined in the RFP. Key aspects will involve determining the comparative value-for-money of each proposal with consideration of qualitative and quantitative aspects; and

•  selection of a preferred bidder.  The evaluation of proposals will identify a preferred bidder with which it is intended to negotiate and execute binding contractual arrangements.  Depending on the outcomes of the evaluation process, it might be necessary to undertake a further shortlisting process to determine a preferred bidder, possibly through a best and final offer, or a structured negotiation process e.g. if there are material outstanding issues and/or there would be material benefit to government in retaining competitive tension.