The decision to bundle or batch projects together needs to be carefully considered. As indicated in the definitions section above, the key difference between the two approaches is that, under a batched programme there are individual Project Agreements (i.e. contracts) for each project procured as part of that batch. Under a bundled approach, there is one Project Agreement which encapsulates all of the individual projects that may be contained therein.
In developing and selecting the appropriate individual projects to include within a bundle, the ability of multiple Participants to procure the bundled facilities within identified timescales should therefore be carefully considered. In particular, the following should be considered:
• Governance requirements;
• A recognition of cultural and structural differences within procuring Authorities;
• Any taxation/contractual considerations;
• Ability to transfer knowledge within the Territory (and between Territories); and
• Capacity, capability, previous experience and in-house skills etc.
There is a range of potential scenarios which may arise as a result of grouping schemes together.
• One facility with Multi-Participant Use - Where there are a number of individual Participants within a hub Territory using a single facility, the Lead Authority (for example this could be the land owner, majority occupier or the majority provider of funding) will enter into the DBFM contract with the sub hubco. An interface/joint occupation agreement amongst public sector bodies would then be entered into to define the respective rights of occupation and financial and other obligations and processes (e.g. how any decisions and/or approvals required under the DBFM contract will be made);
• A number of facilities, each with its own Project Agreement and Lead Authority - This structure accommodates the batching of schemes together for the purposes of generating procurement efficiencies. The resultant facilities will have a Project Agreement with a Lead Authority and will have its own sub hubco; and
• A Number of facilities with a Single Project Agreement - Under a bundled approach it will also be the case that a single Project Agreement will potentially cover a number of facilities, each of which may have a different Participant or blend of Participants from the relevant hub Territory. In setting up the bundled project there is a need to ensure that each relevant Participant is involved in the process and that the governance of the procurement is strong and effective.