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Body of Knowledge:
Tendering and Awarding the Contract
As noted in section 3, the risk of a challenge to the tender or award process is considered higher in PPPs than in a conventional procurement. To mitigate this risk, the procuring authority must have sound preparation and procurement processes, and a legal team and relevant subject matter experts...
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Body of Knowledge:
Tendering and Awarding the Contract
It is possible that no bidders will submit, which constitutes a clear process failure. This is best avoided by having a well-planned and well-structured tender process, consistent with the practices described in chapter 5 of this PPP Certification Guide. If it does eventuate that there are no...
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Body of Knowledge:
Tendering and Awarding the Contract
Once the contract has been awarded, the necessary steps are taken to proceed to the signing of the contract by both parties.
Upon award, the successful bidder (called the ‘preferred bidder’ in some markets) will be required to sign the contract within the period prescribed in the RFP.
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Body of Knowledge:
Tendering and Awarding the Contract
Before the deadline expires, the successful bidder will have to meet certain prior conditions as established in the RFP. The following conditions are typically included.
Establishment of a Special Purpose Vehicle (SPV) that will be the concessionaire.
Contracting of insurance policies (or in some...
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Body of Knowledge:
Tendering and Awarding the Contract
During the course of this period, it is common for both the authority and private partner (still as preferred bidder or successful proposer) agree on certain minor changes in the contract to resolve mistakes or clarify ambiguities. It may also be necessary to incorporate specific features of the...
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Body of Knowledge:
Tendering and Awarding the Contract
Chapter 2.9.3 of the PPP Certification Guide explains the importance and significant benefits of transparency and proactive disclosure in PPP programs. It also provides examples of disclosure policies that are considered to be good practice. In some jurisdictions, it is compulsory to publicly...
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Body of Knowledge:
Tendering and Awarding the Contract
It is good practice for the procuring authority to debrief both the successful and unsuccessful bidders after the contract has been executed. In each case, the debriefing should not focus on the relative merits of the bids. Rather, it should be directed at providing each bidder with general...
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Body of Knowledge:
Tendering and Awarding the Contract
Financial close is a stage with a high degree of variation in market practice among jurisdictions. Financial close means not only that the financing documents have been signed, but also that the prior conditions for the availability of financing have been fulfilled.
As described in chapter 5, in...
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Body of Knowledge:
Tendering and Awarding the Contract
Some governments provide for independent oversight of the tender process while it is occurring to ensure that it is fair and transparent.
For example, governments in Australia and New Zealand appoint a probity practitioner to ensure that a transparent and robust process is followed at all times....
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Body of Knowledge:
Tendering and Awarding the Contract
At the end of this phase, the authority has in place an enforceable and effective contract, duly executed after the accomplishment of prior conditions.
In some processes, financing has been arranged within this phase (as a prior condition to contract signature), while in other processes it will be...
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Body of Knowledge:
Tendering and Awarding the Contract
Name of Document
Authors/Editors and Year
Description
http link (when available)
Key References for PPP Tender Processes
Infrastructure Australia National PPP Guidelines Volume 2: Practitioners’ Guide
Commonwealth of Australia (2011).
Includes guidelines on PPP tender...
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Body of Knowledge:
Tendering and Awarding the Contract
See Appendix 6A
[4] Under a two-stage open tender process, the initial invitation is only for the submission of qualifications which are assessed to confirm the list of candidates that will be invited to tender.
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Body of Knowledge:
Appendix Bid Preparation and Submittal the private sector perspective
This section describes the approach taken by the private party in a PPP project. The private party is the private sector entity that is successful in securing the right to implement and operate the procuring authority’s PPP project. A variety of names may be used to describe this private party....
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Body of Knowledge:
Appendix Bid Preparation and Submittal the private sector perspective
There are many private parties involved in a PPP project and each has its own specific reasons for investing in such a project. Influencing factors include a party’s investment appetite, together with its corporate strategy; the mandate it has to invest in specific sectors/countries; and how...
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Body of Knowledge:
Appendix Bid Preparation and Submittal the private sector perspective
Following on from a successful PPP project screening, and once partnerships have been formed between like-minded organizations in the consortium (see section 6.4), the two main activities that the consortium will carry out are preparing the response to the procuring authority’s RFP and making the...
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Body of Knowledge:
Appendix Bid Preparation and Submittal the private sector perspective
Following a successful PPP project screening, partnerships will be forged between like-minded organizations and a consortium will be formed with a view to responding to the procuring authority’s RFP.
Implementing the PPP project will require the implementation of material construction, operations,...
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Body of Knowledge:
Appendix Bid Preparation and Submittal the private sector perspective
Specialized knowledge is required to ensure a winning bid, and the consortium bidding for the procuring authority’s PPP project will be keen to put this in place as soon as possible. Despite the fact that large sponsors have internal resources that can be used to deal with the preparation of the...
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Body of Knowledge:
Appendix Bid Preparation and Submittal the private sector perspective
One of the most important issues the consortium has to address is structure. Its members need to decide the most appropriate structure to adopt in order to finance and implement the procuring authority’s PPP project successfully.
This PPP Guide assumes a project financing approach. As such,...
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Body of Knowledge:
Appendix Bid Preparation and Submittal the private sector perspective
The complexity of the procuring authority’s PPP project requires the consortium to adopt a project management approach to ensure that all necessary experts and skills are managed in an effective and timely manner. Upon signing the Letter of Intent (LOI), Memorandum of Understanding (MoU), or...
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Body of Knowledge:
Appendix Bid Preparation and Submittal the private sector perspective
6.8.1 Negotiating with Banks
The consortium’s financial advisory team prepares the Project Information Memorandum (PIM). The PIM sets out details of the PPP project, including the anticipated key contracts and projected revenues. Assuming a financing competition, a group of funders will be asked to...
