If a two-step solicitation process is used for project team selection (pre-qualification then proposal submission), the first step will identify and pre-qualify those prospective bidders that have the greatest potential for developing and delivering the proposed project as a public-private partnership using innovative approaches that offer high value for money and an effective partnering relationship with the agency sponsor. The first step could be as simple as allowing only those firms already on the agency's pre-qualification list to receive a Request for Proposal for the proposed PPP project. However, since there is little domestic experience with PPP projects in most states, this approach may overlook highly qualified firms that are not on the agency's pre-qualification list, particularly if the agency has not sponsored PPP projects before.
Bidder prequalification often begins by issuing a request for a Letter of Interest (LOI) from each prospective bidder or bidding team (if already organized) to indicate whether or not they are interested in competing for the project as a PPP. The LOI request can also be used to ask for information on the firm and its relevant qualifications to perform the project as a PPP. This could be followed by a formal Request for Qualifications (RFQ) from all or selected firms that responded to the LOI.
The LOI and RFQ may be preceded by a fact-finding process in which prospective firms are invited to participate in an information-sharing meeting or workshop to share insights regarding the project and the anticipated PPP procurement process. Meeting topics typically include:
• The proposed project description, available public funding, and obtainable data on the project, including any preliminary planning or preliminary design studies;
• What the agency is seeking from bidders;
• What types(s) of PPP approaches will be considered;
• Responsibilities, level of risks, and value capture required/desired by the private sector;
• How to structure the request for proposals; and
•· What is considered a reasonable timeframe for proposal preparation.
Following the workshop meeting, the sponsoring agency may also provide the opportunity for individual one-on-one meetings between representatives of the sponsoring agency and interested firms to further discuss specific ideas and concepts regarding the proposed project and ways to approach its procurement and delivery.
Exhibit 25 displays sections a typical Request for Qualifications that may accompany or follow the Letter of Interest request.
Exhibit 25 - Sample Components of a PPP Project Request for Qualifications
| • Introduction to RFQ document • Project background - current conditions and rationale for project • Project description - scope and schedule • Purpose of pre-qualification • Pre-qualification process - objectives, process, and schedule • Conditions, terms, and limitations • Statement of qualifications - contents and format of managerial, financial, and technical capabilities and resources • Evaluation process - procedures, roles, criteria, and scoring method • Receipt and security of statements of qualifications • Approved bidder's list • Notification process • Annexes - certifications, representations, required forms, and sample scoring form |
On the next page, Exhibit 26 provides a representative listing of criteria an agency might consider for evaluating the responses to the RFQ so that a smaller list of pre-qualified firms or teams can be selected to receive Requests for Proposals (RFP). The preparation and issuance of RFPs should be done after the following items have been finalized by the agency sponsoring the project:
• Project scope;
• PPP approaches to be allowed;
• Evaluation criteria;
• Remaining steps in the PPP project procurement process; and
• Schedule for completing the procurement and selection process leading to a Notice to Proceed (NTP).
Exhibit 26 - Sample Pre-Qualification Evaluation Criteria
| • Relevancy and extent of prior project experience by team members - size, nature, and complexity of prior relevant projects completed by team members • Satisfaction of prior clients used as team references • Financial capability and capacity of the team • Adequacy of project management capability and experience • Quality assurance capabilities and programs • Relevancy and extent of specific technical and financial experience and expertise of designated key staff members of submitting team • Adequacy/availability of key staff to perform the project in proposed timeframe • Completeness and timeliness of statement of qualifications submission • Inclusion and proper execution of all required certifications and representations for members of submitting team and key staff • Submission of audited financial statements for core team members for prior five years • Availability of required net working capital • Net worth of submission team - Confirmation of bonding capability - Bank and surety references - Legal standing of team members |
For unsolicited proposals, this process would be significantly condensed since there is already a submitted proposal which serves as the basis for comparison, provided the proposed project is one the responsible agency wished to pursue even though it is not on the short-term approved list of planned transportation projects. In this case, other interested bidders are given a certain timeframe to offer competing proposals, thereby eliminating the LOI and RFQ requests. Both the LOI and firm/team qualifications would become part of the proposal.