A competitive tender process was used to select the preferred consortium to deliver the project. An appropriate evaluation framework, incorporating a value for money approach, was in place to evaluate the bids.
Effective tools were employed to assess value for money during the procurement process, including the Public Sector Comparator (PSC), which is a theoretical estimate of the cost of the most efficient public sector procurement model. The net present cost of the bids was compared to the PSC cost in order to determine whether the project could deliver better value for money if conducted under a Partnerships Victoria structure.
Other qualitative value for money tests were also applied during the procurement evaluation, including a public interest test.
The planned timelines for the procurement process were met, which was a significant achievement, given the scale and complexity of the project and procurement task.
The procurement approach complied with the expected elements of Victorian Government Purchasing Board policy and guidance and the Partnerships Victoria guidelines, and was adequately documented. In particular, the following were observed:
• a PSC was constructed and updated throughout the evaluation process
• an output specification was produced in the form of the project brief
• appropriate sign-offs were sought and the required approvals were obtained
• the evaluation of the bids was undertaken against previously determined criteria stipulated in the evaluation plan.
The risk allocation in the project agreement is also broadly in line with Partnerships Victoria guidelines with no significant departures.