For most projects the preferred proponent will be the team with a compliant bid that submits the lowest cost. The lowest cost is on a net present value basis and includes all project requirements as set out in the RFP and other documents. The technical proposals are to be evaluated on a pass/fail basis prior to proponents submitting financial proposals. Among the proponents with acceptable technical proposals, the Preferred Proponent is selected based on the best financial (price) proposal (unless Treasury Board has approved another basis - see Section 4.5). The province will subsequently execute the Project Agreement with the Preferred Proponent.
This technical pass/fail, low-net-present-value-price-wins approach is an open, accountable, objective, competitive and transparent process that is the "Alberta model" for selecting the preferred proponent. Using this approach, the province selects the proponent that meets or exceeds the minimum acceptable requirements for the best price. It requires the project team to clearly define these requirements. It does not recognize any intangible/qualitative additional value that a proponent may be able to offer. For example, a proponent may offer to provide an on-site fitness centre with a discounted membership for government employees. The revenue from the fitness centre should be accounted for in the financial proposal, but the added value for employee wellness would not impact the evaluation of the proponent's bid.