There was no evidence of scope changes during the bidding process. However, we noted that the following aspects of the project brief changed after the EOI phase:
• requirement of for a minimum 4 Green Star rating (using a rating tool developed by the Green Building Council of Australia)
• allowance of potential freehold strata titles to be issued to accommodate a residential development.
These changes were fully incorporated into RFP documentation released to the 3 short-listed EOI respondents. A process of interactive bidding13 was used by the project team in order to better align bidders to the requirements identified in the State's reference project, which was an outcome of the 2002 feasibility study. The reference project was used to help clarify operational concepts, site usage and needs, as well as design functionality of the 5 000 person capacity plenary hall.
A structured negotiations process was also used by the procurement team. This process involved parallel discussions with each complying respondent on aspects of their proposal. The process was designed to stimulate competitive tension between bidders, and to resolve any departures from the preferred outcome regarding contract, cost and function. We saw no evidence of scope changes to the core convention facility arising from this negotiation process.
Post contractual and financial close, the State and the winning bidder negotiated and agreed in principle to incorporate the old South Wharf docks and sheds into the commercial development precinct.
The contribution agreed in principle to be made by the State is less than the expected cost to maintain and protect the heritage waterfront precinct and wharf sheds.
We, therefore, consider that this agreement in principle should allow for the effective integration of the old South Wharf docks and sheds at a reasonable cost.
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13 DTF advisory note on interactive tendering can be found at <http://www.partnerships.vic.gov.au/CA25708500035EB6/WebObj/AdvisoryNoteInteractiveTenderProcess/$File/Advisory%20Note%20Interactive%20Tender%20Process%20.pdf>.