For solicited proposals, an RFP is prepared which contains the requirements, terms, and conditions for the PPP project. The RFP is issued to the pre-qualified firms or teams, which then prepare proposal responses. These are submitted to the sponsoring agency within a specified timeframe, as described in the RFP, with each submission reviewed and evaluated to determine which one offers the best value to the sponsoring agency and the public it represents. Exhibit 27 summarizes the key factors that should be considered in evaluating and ranking PPP project bids that are received in response to either a solicited or unsolicited proposal.
Exhibit 27 - Key Factors to Evaluate PPP Project Bids
| • Flexibility/breadth of legal-regulatory authority of sponsoring agency to use proposed contract approach • Capability of sponsoring agency to effectively negotiate and administer the proposed contract through in-house and retained specialized support resources • Transparency of PPP procurement process and contract terms - and their implications - Life-cycle cost of project that maximizes Value for Money • Project delivery schedule - Performance-based standards for holding partners accountable for project results - Periodic performance monitoring and reporting requirements - Annual contract auditing provisions • Capabilities and experience of project delivery team in all areas of proposed responsibility and its ability to manage various project risks • Innovative use of alternative funding approaches to leverage available public funds - Relative use of equity and/or debt, bank loans and/or capital markets and their respective timing to finance the project - Involvement of public sector in value capture - including developers and businesses served by transportation facilities produced as a result of a PPP - Treatment of "windfall" profits - revenue-sharing with public agency and price regulation - Insurance or surety provisions to manage financial risks • Proposed use of new technology to improve cost-effectiveness of project and enhance user service and safety • Consistency with public policy and interest - Public attitudes towards ownership and control of transportation assets - parochialism potential - Protection of public interest - equity, safety, reasonable price, accessibility, mobility |
This mix of factors to be considered by the agency project selection committee reflects a best value-based bid evaluation process, versus the low-bid evaluation process associated with the traditional contractor selection process. The value-based selection process reflects how the private bids are structured, the broader private sector responsibilities of PPP project delivery approaches, and the many attributes that can impact the overall value to be received by the public from the PPP approach taken.