Variant Bids

In addition to a Standard Bid, Bidders may at their discretion submit one or more but no more than [insert number] Variant Bids.

Bidders are invited to submit Variant Bids in which they may offer proposals on the basis of different allocations of risk or alternative terms as well as different technical proposals from those contained in the Standard Bid.

Bidders should propose Variant Bids only where and to the extent that Bidders believe that value for money can be improved by adopting a different approach, or that any of the Local Authority's proposals are not feasible, practical or necessary.

Bidders should clearly state in any Variant Bid how the alternative approach contained in such a Bid differs from the Standard Bid, how they will be able to deliver it, how it is likely to improve value for money and, where possible, the estimated impact on the Unitary Charge.  

The type of Variant Bids that the Bidders may wish to propose might include, for example, but without limitation:

•  [Insert details of examples as appropriate].

A Variant Bid is required to meet, as a minimum, the PFI criteria as published by the DCLG and the HM Treasury.

A mark-up to the Model Contract must be contained in a Variant Bid, and each and every item of mark-up must be accompanied by a completed entry in a table in the format set out in Bid Form 2 in Appendix 9 of these Instructions.  Any mark-up which reallocates a risk (as opposed to merely clarifying some drafting) must have a completed entry in the column headed "Effect on Price". This is to satisfy the Local Authority that the reallocation of that risk has a cost consequence.  By taking that cost consequence and applying it to the Standard Bid, the Local Authority will be able to make a determination of whether or not the proposed reallocation of risk represents value for money.

A Variant Bid should be capable of being evaluated as a complete bid, i.e. a Bid with all the constituent elements necessary to complete the bidding process.  All of the various elements of a Variant Bid should be discrete, so that if a Bidder has a particular proposal that the Local Authority elects to investigate/negotiate with the Bidder, it may do so in the knowledge that the remainder of the Variant Bid (or the proposal itself) will not unravel.  

The Local Authority reserves, in its sole discretion, the right to reject Variant Bids.