4.4.1  Probity and integrity

Governments are committed to efficiency, fairness, impartiality and integrity in all dealings. Probity is an important issue for government as a custodian of the community's assets. PPP transactions can involve a lengthy and complex tender process. Good process and probity are consistent with achieving value for money in commercial engagements. Probity management is an integral part of the process, not a separate obligation.

Key aspects include:

•  ensuring conformity to the process;

•  ensuring principles of openness, fairness, and transparency are maintained throughout the process; and

•  ensuring public and bidder confidence in the process.

As part of addressing probity concerns, PPP projects will often have:

•  a comprehensive probity plan. A well-crafted probity plan that helps foster a probity culture and spells out proper process will result in the demonstration of the equity of the process and also assist in the efficient achievement of project objectives; and

•  a probity practitioner. The role of the probity practitioner is to provide independent assessment and/or ongoing advice throughout the tender process, provide appropriate sign-off at designated milestones and provide necessary reports.

Key probity issues include:

•  ensuring confidentiality during the commercial engagement process. This protects both the competitive position of individual private parties and the commercial interests of departments and agencies. As part of this, clear security procedures will be required for handling tender-related documents (produced by both private parties and the department or agency); and

•  ensuring intellectual property is protected in the formal bid processes and discussions around projects. This involves:

the identification of intellectual property;

treatment of intellectual property contained in formal bid documents; and

the manner of dealing with intellectual property in contractual arrangements.

Intellectual property commonly encountered in PPPs includes:

•  designs, drawings etc. relating to the construction of infrastructure and assets;

•  technology associated with the delivery of services (e.g. technical solutions for more efficient treatment of waste water). Such technology is usually governed by some form of licence in any event; and

•  operational processes for the delivery of outputs.

It is important to note that a project's probity requirements are not intended to inhibit communication with bidders throughout the tender process but are simply to ensure that the above principles and issues are appropriately addressed.

Further information on probity issues is provided in the Practitioners' Guide.