3.7 This topic is covered in Appendix 2b of Section 1 of the PPP guidance and this section should be read in conjunction with it.
3.8 Although there are formal requirements to be observed in terms of placing advertisements, it is good practice to take soundings within the marketplace to determine the likely level of interest and appropriate timing for the scheme from potential participants prior to issuing a contract notice.
3.9 It is also appropriate to approach the market informally while the Outline Business Case is being developed, in particular to take soundings on whether the scheme proposals are likely to be feasible under PPP. This is best done once the preferred public sector option and scope have been identified and the opportunity can be described to the private sector. Further guidance is included in Section 1 Appendix 2b Informal Market Soundings Exercise.
3.10 Approaching the market should enable the NHSScotland body to gain insight into the likely level of interest in the market but without giving any one potential participant a head start in the procurement process. The NHSScotland body should ensure that its actions do not prejudice the future procurement process.
3.11 NHSScotland bodies could also consider approaching contractors and/or service providers with whom they are used to doing business to discuss their ideas about the scheme and to invite suggestions as to how it might be taken forward. Other companies and consortia active in the health PPP market may also be approached. The NHSScotland body's advisers may also be able to facilitate informal approaches to the market. Preliminary information about the site, the facilities being considered, the planning situation, the locality and the NHSScotland body itself may usefully be provided. NHSScotland bodies should ensure that in providing information, they do not give any potential participants an unfair competitive advantage.
3.12 Potential participants may be able to suggest previously unforeseen ways of exploiting the development opportunity, such as alternative land uses and the generation of additional capital or revenue streams.
3.13 In certain cases, particularly where the scheme involves surplus land and/or the possibility of retail lets, the NHSScotland body might also give consideration to appointing professional property advisers. Surplus land should not be included in a PPP unless it represents value for money to do so. Further guidance on the treatment of land and buildings within PPP schemes is included within Chapter 8 of Section 3 of this guidance.
3.14 If responses from the market indicate that the proposed scheme is unfeasible or that there is not likely to be much competition during the bidding process, NHSScotland bodies should discuss with the SGHFD how to proceed further.