5.2.4  Other value for money considerations

Partnerships Victoria guidance material indicates that a PPP bid evaluation process should be focussed on value for money and address both qualitative factors and quantitative considerations. Qualitative factors, by definition, are not fully priced in the PSC as they cannot be accurately quantified.

The value for money qualitative assessment of RCH proponent bids drew on extensive evaluation criteria on issues including service delivery, design amenity, and sustainability. This was in line with Partnerships Victoria guidance. Examples of qualitative issues addressed in the evaluation include:

•  service delivery in terms of the quality of services offered

•  functionality and operational efficiency of the submitted designs

•  design amenity and the flexibility and expansion capability of the facility

•  environmental values and sustainability issues offered by the submitted designs

•  construction methodology, management processes, and proposed strategies for working with the state and RCH to achieve a seamless transition to the new facility.

As required by Partnerships Victoria policy, a public interest test was also conducted.

We are satisfied that the qualitative assessment of value for money of the RCH proponent bids was adequate.