The recommendation to Cabinet to proceed with the project must contain the full business case supporting the project, an evaluation of the detailed proposal against stated assessment criteria and the benefits to be derived from private sector delivery relative to the PSC. The report to Cabinet should also provide a summary of the heads of agreement of the contract to be negotiated with the private sector proponent(s).
Cabinet approval to proceed to negotiate with the preferred tenderer(s) is non-binding on the Government. The agency must at all times reserve the right to suspend or terminate negotiations with any or all bidders at any time in the negotiation process. The fact that negotiations may take place over a considerable length of time does not imply any commitment to proceed by the Government.