2.1 Requirements
2.1.1 It is intended to appoint a financial advisor to the [PFI project]. Subject to Government approval for the project to proceed, the appointed advisor would continue to support the project through to Contract Award/Financial Close.
2.1.2 Two key objectives are to deliver a successful project and develop the knowledge base in-house. Bidders are asked to comment on this concept in making their bids and make proposals that will deliver successful project outcomes, provide value for money and added value.
2.1.3 It is recognised that PFI projects are intensive in terms of resources and time. The appointed adviser should confirm their approach to project management, the experience they bring and options for working with other advisors and the client. The appointed adviser will need to confirm there will be no conflicts of interest in advising on the project. General experience has shown limitations in the strength and depth of advisors in servicing PFI/PPP type projects. Bidders will need to confirm the names and experience of advisors for this project and the assumptions for project inputs by the advisors identified.
2.1.4 The general timetable template for the project under Competative Dialogue that is realistic and achievable should be set out as below (add to Annex A yours):
Task | Task |
PIN Published | Dialogue and Clarification Meetings with Bidders |
Evaluation Framework for Pre-Qualification and Short-Listing | Deadline Date for Bidders Questions |
OJEU Notice Published | Bid Submission |
Descriptive Document and PQQ Issued | Evaluation, Clarification and Dialogue on Detailed Solutions |
Bidders Open Day | |
Return of PQQ | Second Stage Short-Listing (if necessary) |
Pre-Qualification Evaluation | Short-List Agreed by Members (if necessary) |
List of Pre-Qualified Bidders agreed and approved | De-Briefing Meeting with Losing Bidders (if necessary) |
Open Competitive Dialogue and ISOS issued | Invitation to Submit refined solutions (if necessary) |
Staff Consultation Meeting | Dialogue and Clarification on refined solutions |
Dialogue on outline solutions | Submission of refined solutions (if necessary) |
Outline Solutions returned | PRG Second Stage Review (if selected) |
Evaluation and dailogue on outline solutions | Evaluation, Clarification and Dialogue on refined solutions (as necessary) |
Evaluation report and Short-List Selected | |
Short-List Agreed by Members | Assess readiness to close dialogue |
De-Briefing Meeting with Losing Bidders (if necessary) | Close competitive dilaogue and call for final tenders |
Final tenders completed and returned | |
Data Room Opened and Collaborative Website in place | |
CD-ROM Prepared and Issued | Fine-tuning and final evaluations |
ISDS Preparation | Preferred Bidder (and Reserve) Selected |
> Output Specification | Staff Consultation Meeting |
> Method Statement Requirements | Preferred Bidder Agreed with Members |
> Risk Register | De-Briefing Meeting with Losing Bidders (if necessary) |
> Instructions & Guidance to Bidders (IGB) | Final clarifications, due diligence and approvals |
> Payment Mechanism Paper | FBC/Confirmation Against FRS5/Certificates/Audit |
> Financial Model Proforma and Submission requirements | Negotiated Scheme Agreed with Members |
Contract Award and Financial Close | |
> Schedules | Mobilisation Period |
> Evaluation Framework | Service Commencement Date |
Preliminary Discussion with Short-Listed Bidders | |
Reassessment of PSC/Reference Project (if necessary) | |
Issue of ISDS | |
2.1.5 Bidders are invited to comment on the general project structure and the indicative timetable. The tender bid will confirm the programme structure assumed and the consequences of any variation from it. The price structure proposed must include clear identification of work that has a fixed price or is on an hourly/daily base rate. Personnel allocated to the project and their input should be clearly identified. It is for bidders to take their own view on pricing against the indicative timetable. All elements of work after the submission of the Outline Business Case are dependent on receiving Government financial approval to proceed. Whilst a Call for Final Tender (CFT) is programmed, the aim is to close dialogue and achieve quality design and service solutions, contract agreement, price certainty and value for money in the bidders' proposals and allow only 'fine' tuning post Preferred Bidder. This may enable a decision to confirm a Preferred Bidder or to consider further dialogue.
2.1.6 Potential advisors should also be aware of the impending appointment of Legal Advisors for which a detailed brief is in preparation. You should identify your approach to joint working and opportunities within the Project Team. It will be intended to develop a Draft ISDS and Project Agreement making full use of the 4ps/HCA Housing PFI Procurement Pack. This will be issued to shortlisted bidders as soon as possible after the shortlist has been confirmed.
2.1.7 For the appointment, the services required of the financial advisor are:
■ To develop and audit the Outline Business Case financial models and advise on any potential improvements including Risk Assessment . To review the Outline Business Case and provide an initial opinion on the accounting treatment for the Council. [The advisor will also prepare a draft PFI bidders model for comparison purposes.]
2.1.8 Bidders proposals for the ongoing work should assume the above project timetables and reflect the consequence of any variance. It should be assumed that the Council will lead the project using existing resources and will review opportunities for developing further in-house expertise and resources.
2.1.9 The additional services required of the adviser are:
■ Attendance at Bidders Conferences.
■ [Assisting with] [Leading on] the preparation of the Pre-Qualification Questionnaire (PQQ) and Evaluation Criteria. Financial assessment of PQQ's. Post shortlist, review of PQQ and Evaluation Criteria for future use.
■ Assist in preparing the Invitation to Supply Outline Solutions (ISOS) and Evaluation Criteria
■ Assisting with the development of the draft Invitation to Submit Detailed Solutions (ISDS) with specific responsibility for the Payment Mechanism, Financial Evaluation of bid models, Commercial Framework, Evaluation Criteria and Bidding Process. Ongoing work in assisting the preparation of ISDS and CFT including feedback from bidders and Project Team reviews.
■ To comment on the developed Output Specification and Payment Mechanism for each project for inclusion with the Draft ISDS and ongoing.
■ Evaluation of the financial elements of the ISDS bids including the assessment of bid affordability and revision of any associated financial models and preparation of a report in such detail as to assist decisions to proceed to the next stage of the project. In the case of a CFT bid submission, to evaluate as with the ISDS requirement and prepare a report in such detail as to assist the decision to confirm a Preferred Bidder.
■ Give advice on Accounting Treatment and the structure of the project to achieve an On/Off Balance Sheet Contract Award. Propose how this information will be structured throughout the project and prepare reports on Accounting Treatment as required including confirmation of an opinion on the Preferred Bidders proposal.
■ Membership of the Project Team providing financial advice from selecting a shortlist through the selection of Preferred Bidder. Specific tax and corporate finance advice, particularly at shortlist and Preferred Bidder negotiations through to Contract Award/Financial Close. The advisor will make arrangements for Financial Close and subject to approval, report outcomes. The adviser will assist in the development of the Final Business Case (FBC).
■ Work with the Project Team to produce the financial inputs for the Final Business Case.
■ Assist with fully debriefing unsuccessful bidders at key project milestones (PQQ, ISOS, ISDS and Call for Final Tender (CFT)).
■ Post Contract review project management arrangements, project outcomes and opportunities/improvements for future projects.