Evaluation framework

The methodology adopted to identify and evaluate suitable procurement options for the project comprised the following:

• the draft project objectives and unique aspects of the project were identified and reviewed;

• evaluation criteria against which to assess each procurement option were identified, consistent with the over-riding objectives for the project;

• the relative materiality of each criterion was agreed, ranking the criteria in terms of high, medium and low priority. A rating system to facilitate a qualitative assessment of the procurement options against the evaluation criteria was also established;

• alternative procurement options were identified and defined;

• the draft project objectives, evaluation criteria, evaluation approach and procurement options to be assessed were then supported by the key government departments;

• an assessment of key project risks relevant to the selection of a procurement approach was undertaken (building on the risk analysis already completed to date);

• detailed market soundings were undertaken on the procurement options with a range of interested parties, including potential financiers, contractors, suppliers and operators;

• further work was undertaken to consider the advantages, disadvantages and differences between the procurement options against the evaluation criteria to determine a preferred option for the project; and

• in parallel with the above, separate consideration was given to whether different components of the project should be packaged and procured separately (and potentially under alternate procurement models).

The evaluation has relied on a qualitative, rather than a quantitative, assessment of the differences between the alternate procurement options. In some cases some preliminary financial modelling may be useful.

The overarching purpose of the procurement method adopted is to assist in achieving the project's objectives whilst maximising the Government's value for money for the project.

Of the evaluation criteria identified, the project team ranked a number of individual criteria as being of 'High' importance because they form key outcomes of the procurement process. The high importance criteria were:

• operational flexibility

• risk management

• time to deliver project

• market interest

• value for money

To facilitate the qualitative assessment of procurement options against the above evaluation criteria the following rating system was adopted.

Procurement option is extremely effective in satisfying the requirements of the criterion

Procurement option is effective in satisfying the requirements of the criterion

Procurement option just satisfies the requirements of the criterion.

Procurement option is ineffective in satisfying the requirements of the criterion

Procurement option is extremely ineffective in satisfying the requirements of the criterion