At a glance
Background Due to the long term nature, and usually high dollar value, of a Public Private Partnership (PPP) contract, it is critical that the value for money assessment, as well as the procurement process, is conducted effectively, and in line with relevant rules, policies and guidelines. This provides assurance that a rigorous assessment of the private sector bids has occurred, and that the process to appoint the successful bidder is beyond reproach or challenge. Key findings • The State Government conducted a competitive tender process to identify the preferred private sector consortium to deliver the new Royal Women's Hospital project. • The procurement approach complied with the expected elements of Victorian Government Purchasing Board policy and guidance and with the Partnerships Victoria guidelines. • The risk allocation in the project agreement is consistent with Partnerships Victoria guidelines. • Expected standards of probity were maintained and enforced. • The final adjusted Public Sector Comparator was determined as $367.7 million with the Net Present Cost of the successful bid at financial close at $365.24 million. The bid at financial close was under the PSC, representing a cost saving for the state of $2.46 million or 0.67 per cent, over 25 years. |