E.5  Conclusion

The interactive tender process has been applied to recent PPP projects. It has been well received by the project teams (who feel the verbal interaction adds an extra dimension to the RFP) and well received by the bidders (who appreciate the opportunity for direct feedback, particularly on technical and design matters). The aim is to improve the quality of tender submissions with a particular focus on the design aspects of tenders. Whilst not solving all design or technical matters there is evidence that the interactive tender process certainly helps improve outcomes in accordance with the RFP.

An interactive tender process is essential in social infrastructure projects and other projects where there is a high level of interface risk. The interactive process appears to add most value when addressing technical and design issues; less value is apparent when clarifying commercial matters. The level of interaction (e.g. number of workshops and number of issues covered) depends on the complexity of the project.

The project team will always seek to observe high ethical standards and conduct in commercial projects. When implementing an interactive tender process, probity considerations should provide a guiding framework rather than constrain the interaction.

In the end, the success or otherwise of an interactive tender process depends largely on the degree to which certain basic principles are observed by the parties.

For private sector bidders this involves:

•  acknowledging the need for transparent and equitable treatment for all bidders involved in public procurement processes;

•  taking up the workshop opportunities offered;

•  timely submission of questions on notice and meeting agendas in what can be a very tight timetable; and

•  observing communication and procedural protocols by all team members.

For the government project team, the basic principles are:

•  a commitment to transparent and equitable treatment of all bidders;

•  an understanding of the sensitivity surrounding commercial-in-confidence and intellectual property issues;

•  a capacity to articulate clearly the government's requirements relating to the output requirements; and

•  ensuring that bidders have agreed to the proposed process before it starts, that they have signed disclaimer and indemnity deeds and conditions of tendering have been developed specifically for the workshops.

If these principles are followed, there is no impediment to developing an interactive process that allows greater freedom in articulating the government's requirements.

Although there are inherent risks in this approach, the benefits - such as potential design improvements and avoiding or limiting any potential re-design tender stage - can materially outweigh the risks and provides significant value to projects.