Term

Meaning

BAFO

Best and final offer; as part of the RFP phase, this is a further shortlisting process to determine a preferred bidder  

BOOT

Build, own, operate and transfer

Business Case

The document that articulates the rationale for undertaking a project

Competitive Neutrality

The competitive advantages that accrue to a government business by virtue of its public sector ownership

Conflict of Interest (COI)

Arises where a member of a project team, or an advisor to a project team has an affiliation or interest which might be seen to prejudice their impartiality

Consortium

Those private sector persons who together intend to deliver a PPP

Consortium Members

Those persons who makes up a consortium.

Contract Summary

The document that is released to the public following financial close that sets out the key aspects of the project, including contract terms

Core Services

For social infrastructure, those services for which governments have particular responsibilities to people using the service and the community (e.g. hospitals, schools, etc.)

For economic infrastructure, services included in this definition will be determined on a case-by-case basis  

D&C

Design and construct

DBFM

Design, build, finance and maintain

DBFO

Design, build, finance and operate

DBOM

Design, build, operate and maintain

DCM

Design, construct and maintain

Discount Rate

The rate used to calculate the present value of future cash flows

See the Discount Rate Guidance for public private partnerships.

EOI

Expressions of interest for a project

EOI Phase

The phase used to shortlist parties to proceed to the RFP phase who are capable of delivering the project

EOI Respondents

The parties submitting a response to an Invitation for EOI issued by government for a project

EOI Responses

The responses from the market to the invitation for EOI issued by government for a project

ESD

Ecologically sustainable development

Guidelines

These National PPP Guidelines

Intellectual Property (IP)

Inventions, original designs and practical applications of good ideas protected by statute law through copyright, patents, registered designs, circuit layout rights and trademarks; also trade secrets, proprietary know-how and other confidential information protected against unlawful disclosure by common law and through additional contractual obligations, such as confidentiality agreements  

Interactive Tender Process

The process of interaction between shortlisted bidders and key stakeholders during the RFP phase as outlined in the Practitioners' Guide

Invitation for EOI

An invitation to the market to seek expressions of interest for a project

Jurisdictional Requirements Document

The set of specific guidance applicable to individual jurisdictions that are to be read in conjunction with the Guidelines

National Commercial Principles for Social Infrastructure

Those principles of the Guidelines that set out the considered position of government across jurisdictions in relation to risk allocations under a PPP. This is set out in National Commercial Principles for Social Infrastructure

National PPP Guidelines

The suite of guidance material that will form the national guidance on PPPs

National PPP Policy Framework

The document that will detail the scope and application of the National PPP Guidelines across governments in all jurisdictions

Negotiation and Completion Phase

The phase involving negotiations with the preferred bidder and finalisation and completion of contractual agreements

NPC

Net present cost

Output Specification

The document that defines the outputs and performance levels in relation to construction and services for the project, and incorporates those aspects as identified in the Practitioners' Guide

PPP

A public private partnership

Preferred Bidder

A shortlisted bidder who has been selected following the RFP Evaluation phase as preferred and to proceed to the negotiation and competition phase

Probity Practitioner

An independent expert retained to monitor the bidding process at critical stages, assessing and reporting whether the process has been conducted to the required standards of probity.  

Procurement Options Analysis or Strategy

The document that outlines the rationale for adopting various procurement methods for a particular project

Procuring Agency

The government body (department, agency, statutory body or GBE) that is responsible for delivering the project on behalf of government

Project Director

The person with overall responsibility for delivery of the project and management of all members of the project team

Project Steering Committee

The committee of departmental/agency representatives established by the Procuring Agency to direct the development of the PPP project and deal with key issues

Project Team

The group of specialists and departmental/agency representatives, established by the Procuring Agency, that is responsible for assisting the Project Director to deliver the project (including developing project documentation and undertaking evaluation processes)

PSC

The Public Sector Comparator for a project, which is defined in the Guidelines as the hypothetical, risk-adjusted whole-of-life cost of a public sector project if delivered by government

Raw PSC

The base cost to government of producing and delivering the reference project

Reference Project

The basis for calculating the PSC, reflecting government delivery of the project by traditional means

Relevant PPP Authority

The government department or agency responsible for the application of PPP policy within a jurisdiction (often treasuries)

Retained Risk

The value of those risks or parts of a risk that government bears under a PPP project  

RFP

A request for proposal issued by government for a project

RFP 'Bid' Phase

The part of the RFP phase where shortlisted bidders are preparing RFP responses

RFP 'Development' Phase

The part of the RFP phase where government is preparing RFP documentation for release to shortlisted bidders

RFP 'Evaluation' Phase

The part of the RFP phase where government is evaluating RFP responses

RFP Phase

The phase involving the release of the RFP to shortlisted bidders for detailed, fully-costed and binding RFP responses, followed by evaluation and selection of the preferred bidder

RFP Response

A proposal from a shortlisted bidder in response to the RFP issued by government for a project

Risk Allocation  

The allocation of responsibility for dealing with the consequences of each risk to one of the parties to the contract; or alternatively, agreeing to deal with a particular risk through a specified mechanism which may involve sharing that risk

Shortlisted Bidder

Those parties who are invited to submit a proposal in response to an RFP issued by government for a project

Special Purpose Vehicle (SPV)

In establishing a project consortium, the sponsor or sponsors typically establish the private party in the form of a special purpose vehicle (SPV) which contracts with government.  The SPV is an entity created to act as the legal manifestation of a project consortium

Tender Process

Includes each of  the following phases:

•  EOI phase;

•  RFP phase; and

•  Negotiation and completion phase

Traditional Procurement

The delivery of the infrastructure and associated services by government using its normal procurement processes

Transferred Risk

The value of those risks (from government's perspective) that are likely to be allocated to the private party under a PPP project.  

Whole-of-life

The integration of up-front design and construction with ongoing maintenance and refurbishment elements over the life of the asset under the PPP arrangement