Bids assessed against the Public Sector Comparator

The RTA compared all the detailed proposals to the 'Public Sector Comparator' (PSC). This estimated the cost of the Government undertaking the project itself. The PSC assumes that the RTA would undertake the project on equivalent conditions to the private sector. It represents the most efficient form of public procurement.

Exhibit 2.2 compares the upfront payment offered by each of the three bidders for their short-listed proposals and to the RTA's benchmark (i.e.the PSC).

This Exhibit shows that:

■  based on the PSC, the RTA would have only recovered $36.8 million of the $54 million Development Fee

■  CCM's conforming bid offered $42.5 million towards the Development Fee and did not include a Business Consideration Fee

■  Proponents A and B required contributions from the RTA of $42.0 million and $119.3 million for their respective conforming bids

■  of all the options submitted, CCM offered the highest upfront payment of $100.1 million for its winning bid (non-conforming 'Long 80' option). This represented $54 million for the Development Fee and $46.1 million for a Business Consideration Fee

■  there was no alternative to the CCM proposals that would have delivered the project at 'no net cost to government'. The Government would have had to cancel the project or contribute to it, either to the RTA or to a private sector developer.