Survey of bidders in the auction

We surveyed the nine companies or consortia who expressed an interest in the NATS PPP. The survey was supplemented with face to face interviews where respondents made points that required greater elucidation. The main purpose of the survey was to gain an understanding of how bidders perceived the selection process, and to identify lessons that might be learned for future PPP selection processes. All nine parties responded to us.

The survey sought bidders' views on the following key issues:

  The extent to which the Department consulted potential bidders in the run-up to the PPP;

  The provision of background information on NATS and the PPP, and debriefing, during the Expressions of Interest and Preliminary Offers stages;

  The reasons why certain bidders did not pursue their interest in the PPP;

  The provision of detailed commercial information on NATS' business during Stage 3, the submission of firm priced bids;

  NATS' Long Term Investment Plan, and on the proposed PFI projects, and how these affected their view of the business;

  How far the government's proposals for economic regulation, and for preserving the government shareholder's interest in the company, both affected their view of NATS as a business proposition;

  The costs of the bidding process to bidders; and

  Whether the bidders consider they were treated fairly.