Principles for executing P3 projects include the following:
■ The P3 approach strives to provide both the province and proponents with as much certainty as possible at each stage, thereby strengthening the collaboration element of P3 procurement;
■ The procurement process is open, competitive, timely, fair and transparent. Ideally, three proponent teams will be shortlisted to ensure sufficient competition exists to the end of the procurement process and each proponent has a reasonable chance of success;
■ A realistic schedule is established prior to commencing the procurement to provide the province and proponents with timing certainty and sufficient time to be able to meet the project and procurement needs;
■ The project agreement reflects the risk allocation as set out in the business case, with amendments to reflect agreed-to changes during the procurement process;
■ Specifications are structured so the successful proponent has flexibility in determining how they will be met while providing the province with the infrastructure and services it requires. Specifications are generally structured as "output" specifications;
■ Risks are assigned to the parties best able to manage them;
■ The Project Agreement is finalized prior to submission of bids. To ensure competitive tension to the end of the procurement, there are no changes to the Project Agreement after final bids have been received; and
■ The compliant bidder submitting the lowest bid, on a net present value basis, is the Preferred Proponent. This evaluation method reflects the "Alberta model" and may only be modified where there is significant value to be derived from innovation. A modification to this principle must ultimately be approved by Treasury Board Committee prior to commencing the procurement. Potential respondents should be informed of the change prior to commencement of the procurement or, at the latest, during the Request for Qualifications process.