A full business case must be prepared for Cabinet approval before going to tender or issuing ITNs. The full business case is essentially a refinement of the outline business case with a more detailed assessment of the benefits to be derived from undertaking the project as a public private partnership. Following Cabinet approval, the relevant Minister assumes responsibility for the tender or ITN. Agencies should refer to Contracting Out and Competitive Tendering: Guidelines for the Private Sector when conducting tenders and ITN's.
The PGE will participate in the tendering and ITN processes and be part of the negotiating team. In the majority of projects, the significant element in negotiations will concern risk transfer and the pricing of risks. It is therefore essential that the financial expertise of the PGE and the project-specific expertise of the agency be brought to bear on these issues. The PGE will undertake a final assessment of the full business case prior to submission to Cabinet.
Agencies should assume that all tendering be conducted on a competitive basis. Following the assessment of tenders, agencies will either shortlist the preferred proponent or proceed to direct negotiation with the preferred bidder.
Invitations to negotiate must also be conducted in a manner that preserves competition amongst proponents. A high standard of confidentiality and probity must be maintained, and care should be taken that information obtained as a result of negotiations with proponents is not utilised in a manner that may impede competition or provide an advantage to one or more proponents.
As with the EOI and the ITN, all tenders must state clearly that they are non-binding on the Government.