There were several reasons why the procurement took longer than expected

2.28  The duration of the procurement reflected the impact of several factors. The Agency sought to learn from the few precedents and limited guidance available to them at the time, but the process was new to both them and the private sector. Some difficulties in the procurement were attributable to the Department's circumstances at the time, including an environment of major change and uncertainty in their business. Some delay was attributable to the private sector who were also learning. And a major factor in the procurement was the Agency's understandable decision to continue negotiating until they obtained an acceptable deal as opposed to signing an earlier, less acceptable version of the contract.

2.29  The main issues to arise during the procurement were:

  important requirements developed after the start of the formal procurement process;

  there were some difficulties in inter-agency co-operation;

  moving to negotiate with a preferred supplier while there remained important areas for negotiation;

  the Agency continuing negotiations until satisfied with the deal; and

  the five-month period between August and December 1997 during which NEP concluded their external funding arrangements.