The basic conditions expected in a partnership must be included in the RFP document. They will form one of the building blocks on which proponents will build their submissions. The project team should consider the following aspects of the proposed public private partnership and establish the requirements of the local government:
• preferred length of the partnership
• ownership of assets during and after the partnership
• treatment of public employees who may be displaced by the partnership
• performance specifications, standards and expectations, including the roles and responsibilities of both partners
• how both partners' performance will be measured a definition of an "adequate rate of return"
• profit and cost sharing provisions
• performance bond requirements
It is important for the local government to keep in mind that these conditions are not set in stone. Rather, they are subject to change in the negotiation process with the preferred partner. These conditions provide an indication to prospective partners of what the local government is seeking in the partnership arrangement. The project team must give serious thought to how these conditions are worded. The wording can encourage private sector partners to respond and submit a proposal, but can also dissuade some prospective partners from submitting proposals. Wording should be conducive to achieving the goals of the local government in terms of soliciting proposals.