9.19 The public sector body needs to be clear about the qualities, characteristics and assets it is looking for in private sector partners for the JV. Part of the rationale for establishing the JV will be to access private sector assets which are needed, but which may not be available, in the public sector body, such as financial resources, technological expertise, marketing skills, access to customers and markets etc. However, for the JV to be successful it is also important for partners to have the right qualities on "softer" issues, such as cultural fit and relationship management, which are typically harder to evaluate. Public sector bodies also need to consider the reputation and potential conflicts of interest of partners (see Chapter 3).
9.20 These characteristics and assets should form the basis of the selection criteria used to target potential partners or create a shortlist. Care should also be taken, particularly where the EU public procurement rules apply, to ensure that the information requested from potential partners at this stage, and the selection criteria against which this information will be assessed, are permitted under the rules and do not stray into the territory of the criteria which will be used to select the preferred partner later in the process (i.e. contract award criteria). Criteria may be weighted and scored, in order to help increase the objectivity of the final decision, although where the EU public procurement rules do not apply, this may not always be necessary or appropriate.80
9.21 Some criteria and possible areas of questioning are set out in Table 9.A below. In most circumstances, public sector bodies should consider using external advisers to help in partner appraisal.
Table 9.A: Possible partner selection criteria
| Characteristic/Asset | Possible questions/selection criteria |
| Relationship Management | ● Vision: why they want to get involved ● Objectives: what they want to get out of the partnership ● Stated policy on partnering ● Transparency in dealings |
| Organisational strengths | ● Company background ● Principal activities ● Management capacity ● Ownership structure: parent and subsidiaries ● Core business ● Stability of market place in which company operates ● Diversity of operations ● Performance and reliability within market place |
| Financial strengths | ● Statement of turnover in respect of proposed JV entity ● Key ratios: net worth, credit rating, profitability, liquidity, gearing, debtor delays, stock turnover |
| Technical capability | ● Questions/criteria will depend on the specifics of the project |
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80 If the EU public procurement rules apply, the specific rules on selection criteria (i.e. used for pre-qualification or short-listing) and award criteria (i.e. used for contract award/selection of preferred partner), must be followed and the principle of transparency observed. These require the advance disclosure of criteria (and any sub-criteria) and their relative weightings and potentially any accompanying scoring methodology.