There are a number of probity/process governance issues that could be expected to arise and of which the government project team should be particularly cognisant. These are outlined below:
• Need for consistency and continuity-all proponents should be given the same access to commercial information and the same guidance and instructions on the conduct of the bid process. proponents should also be given equitable opportunity to present their bids and receive feedback on whether their bids meet the output specification. Procedures, rules and bid evaluation criteria should be applied consistently so as to prevent any actual or perceived discrimination. Consistency will be best achieved and maintained where clear procedures are documented in advance, where staff are fully briefed and where there is a strong measure of continuity in the personnel who make up the government project team and its advisors.
• Communications with proponents-as outlined in section 2.2.1, clear protocols need to be developed and applied to ensure that a consistent approach is adopted by the government parties.
• Storage and distribution of bid information-by establishing and adhering to security protocols, the risk that confidential bid related information might transfer to others or into the public domain is minimised (refer section 2.3).
• Adherence to bid closing deadlines-this is a very important factor in maintaining the integrity of the bidding process. If some proponents are permitted to have more time to prepare bids, there is likely to be a perception that these proponents have obtained an unfair advantage. Also bids received must not be opened prior to the deadline for the receipt of bids passing. Opening of bids prior to the deadline may lead to the possibility of, or at least a perception that, information concerning those bids could be disclosed and that other proponents may receive an advantage from that. Any extensions of time permitted must be granted to all proponents.
• Probity checks on proponents-In addition to ensuring the probity of the process, the government project team should run probity checks on proponents and associated parties to ensure that it does not enter into a contract with a party which has a record of illegal or unethical activity. The requirement to undertake these checks should be outlined in the request for binding bid document. For more information, refer to the risk management supporting document.
• Changing bid parameters-there may be compelling grounds for the government, after commencement of the competitive bid process, to adjust the procedures and parameters for bidding, including the evaluation criteria. Changing fundamental bid arrangements in the middle of a process is undesirable. However, if it is anticipated that changes might need to be made, the request for expression of interest document and the project brief should be drafted to allow the government a degree of flexibility to adjust its requirements. It is important to ensure that if changes are made, all proponents are given the same, clear information at the same time, and that the change in bid requirements is not perceived as favouring or disadvantaging a particular proponent or group of proponents. The government project team is strongly advised to consult the probity auditor and/or legal advisors before contemplating any significant departure from the terms of the request for binding bid.
• Finalising the bid-throughout the bid evaluation process, in particular the final stages where there is potential for frequent contact, it is essential that nothing is said to a proponent, explicitly or implicitly to indicate that they have been successful or otherwise until all relevant bid evaluation activities, sign offs and approvals have been obtained. It is important to establish clear procedures for handling contact with proponents in the later stages of the bid process and to establish early on the approvals that are required before the preferred proponent can be selected.
• Public announcements-it is recommended that a clear communications strategy is established in relation to the competitive bid process. In general, it is important to ensure that commercially confidential information is not disclosed to unauthorised personnel. In addition, it is important to ensure that no public announcement is made as to the outcome of the process until financial close has occurred.
• Establishing clear documentation trails-as outlined in section 2.1, it is essential that key discussions, data and decisions are documented and filed in a form which allows those undertaking subsequent reviews of the public private partnership process to understand clearly how, why and when the key decisions were made. This is something to be particularly vigilant about in the final stages of a public private partnership process where events may unfold more rapidly and decisions need to be made in response to pressing deadlines.