4.2 Strict procedures should be put in place to ensure that none of the parties with a potential conflict of interest have involvement in awarding the tender. If any company associated with the Project Company, its shareholders, or its principal operating sub contractor (if this entity manages the market test) intends to bid for the tendered services, an Independent Tender Process Manager (ITPM) should be appointed.
Box 4.2 The Role of an Independent Tender Process Manger |
The role of the ITPM would be to oversee the process and to assure the Authority of the probity of the competition. If the contract does not provide for such an appointment, the Project Company and the Authority could still agree to appoint someone to this role, and may wish to do so if there is a possible conflict of interest. It is suggested that the cost of such an appointment is shared between the Project Company and the Authority, so as to ensure impartiality. Further information on how to appoint an ITPM may be obtained from the Operational Taskforce. |
4.3 An alternative approach might be for the Authority to take a more supportive role in managing the market test. Unless appropriate procedures are agreed then it may be necessary to exclude conflicted bidders to demonstrate fairness.