In addition to the above, we recommend a range of other initiatives that should improve competition in the PPP market and lead to PPP procurement efficiencies, but that are unlikely to lead to significant enhancements. We have set out these initiatives below, noting that some Australian Governments already undertake the proposed actions to a greater or lesser extent, but with variations between Governments and projects.
• Strategies to address some of the complexity of PPPs and the Australian context
i. appropriately educating new entrants in respect of PPP procurement processes and the "Australian context"
ii. actively marketing the Australian PPP market and projects internationally where there might be a particular advantage in attracting international bidders
iii. enhancing debriefing sessions so that bidders can obtain a better understanding of how they can improve their responses in future
iv. developing a communications strategy that demonstrates the benefits achieved from PPP projects and addresses general misconceptions about the PPP model.
• Strategies to address poor quality documentation and processes
v. improved sharing of skills and knowledge between project delivery personnel and procurement project teams (i.e. not just respective PPP units), particularly in relation to lessons learnt and "good practices", adopting a framework to facilitate the transfer of experience from earlier to later deals
vi. using strong precedent documentation as appropriate for generic aspects of projects (no need to try and recreate the wheel), noting that jurisdictions already use precedents for project contracts based on the National PPP Guidelines' standard commercial principles
vii. consistently applying the National PPP guidance, particularly on conducting an Interactive Tender Process
viii. using Gateway or other independent reviews at the key stages of documentation preparation and the procurement process to verify their appropriateness (ensuring that reviewers are familiar with PPP projects)
ix. having a high degree of fruitful interaction during tender processes within appropriate but not excessive probity requirements
x. where not already done, undertaking due diligence investigations that all bidders require to minimise the unnecessary duplication of effort and costs, recognising that bidders may still require their own specific investigations.
• Strategies to address problems with the EOI process
xi. reviewing the EOI process to ensure clear communication of objectives to the market and a focus on the ultimate selection of a short-list of bidders that is most likely to deliver the best overall solution for the project. In particular, information requirements should match closely the evaluation criteria.
• Strategies to address protracted and uncertain timeframes
xii. obtaining commitment to the project from all key stakeholders at an early stage
xiii. developing better output specifications with less focus on design specifications (recognising that some areas such as safety will continue to need detailed input specifications), including:
- having detailed guidance on their development within the National PPP Guidelines
- having a greater dialogue with potential bidders about the project functional brief before approaching the market
xiv. revising sector-specific guidance and standard specifications where new issues recur
xv. considering how to facilitate the effective retention of existing skills in complex procurement across the public sector, promoting an attractive career path backed by a structured training and development programme
xvi. undertaking good forward planning in the procurement phase, including early risk assessment, thorough due diligence, and robust output specifications.
• Strategies to address bidders costs directly
xvii. although we do not recommend that Governments make substantial contributions towards reasonable costs as a standard position, we recommended that, if they do not already do so, they do consider a substantial contribution in instances where:
- they need to attract new entrants to the Australian market (i.e. specialist technology providers, specialist operators, etc.)
- they extend procurement processes beyond the norm in order to achieve maximum competition and best value for money outcomes
- projects are essentially 'one off' in nature or so large as to prevent bidders from being reasonably able to recoup those costs on future successful transactions
- they cancel the project for reasons other than bidders' failure to make acceptable proposals (when they should provide full reimbursement).