In summary, the key factors identified by Participants that can impact the efficiency of the PPP procurement process were:
• a largely unknown pipeline of projects that is sporadic in nature, meaning that bidders have difficulty in maintaining an efficient level of resources
• skill and expertise of the Government team managing the procurement process
• Governments' commitment to the project, PPP model and the procurement process (specifically in terms uncertain timeframes).
Although bid costs would become significantly less of an issue (as bidders will be able to recoup bidding costs from future projects) following resolution of an appropriate Australian PPP pipeline, inefficient processes continue to impact the value for money outcomes achieved by Governments.
Participants also raised a range of other issues, with the most common being the:
• excessive information and documentation requirements
• inconsistency in tender documentation
• inefficient decision making processes and delayed communication of decisions
• inefficient resourcing associated with the stop/start nature of the Australian PPP market, due to a number of factors including a lack of pipeline, delayed communication of decisions and protracted procurement processes.
In 2008, the UK's NAO undertook a survey to obtain evidence on the performance of PPP construction projects, particularly focussing on whether they deliver to the expected time, price and quality23. The survey identified experienced project teams, clear expectations and constant dialogue as best practice, and provides support for the issues noted above.
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23 Source: A report by the National Audit Office (UK) - The performance of PFIPPP construction (dated October 2009)