The framework used to assess the private sector bids was adequate. Evaluation plans were prepared at both the expression of interest and project brief stage, with identified evaluation criteria used to assess the bids.
An appropriate evaluation framework, incorporating a value for money approach, was in place to evaluate the bids.
Effective tools were developed to help assess value for money, including the Public Sector Comparator (PSC), which was one of a range of assessment tools used during the procurement process. The net present cost (NPC) of the bids was compared to the PSC in order to determine whether the project, if conducted under a Partnerships Victoria structure, could deliver value for money (i.e., the NPC of the bids is less than the PSC).
Other qualitative value for money tests were also applied during the procurement evaluation.
A preliminary PSC was developed in March 2003 (investment evaluation report) and again in September 2003 (business case) before the commencement of the procurement process. The final PSC was completed in April 2005 at contractual close.
Documentation relating to all of the required procurement milestones was available and requirements were conducted in line with Partnerships Victoria guidelines.
In particular, the following was observed:
● a PSC was constructed and updated throughout the evaluation process
● an output specification was produced (in the form of the project brief)
● appropriate sign-offs were sought and required approvals were obtained
● the evaluation of the bids were undertaken against previously determined criteria stipulated in the evaluation plan.
The State conducted a competitive tender process to identify the preferred private sector consortium to deliver the RWH redevelopment, and the procurement approach complied with the expected elements of VGPB policy and guidance, and the Partnerships Victoria guidelines.