Appendix 3 - Form of Covering Letter for Detailed Solution

[Insert name and address]

Dear Sirs

Having examined the Invitation to Submit Detailed Solutions and other documents made available to us in the Data Room [and on the Collaborative Web] and having satisfied ourselves as to all other matters relevant thereto, we confirm our Solution(s) to enter into a Contract with the Local Authority to provide the services set out in the Invitation to Submit Detailed Solutions.

We enclose our Detailed Solution(s), and confirm that these comprise all of the documents required to be submitted in accordance with the matters set out in the Invitation to Submit Detailed Solutions.

We confirm that, subject to the following Paragraph, all competitive dialogue remains "Subject to Contract" and that the Local Authority's selection of us to proceed to the next stage of the dialogue which may result in us being invited to submit a Final Bid and following evaluation appointed as the Preferred Bidder will not constitute a binding agreement or Contract between us until a formal written agreement or agreements have been executed.  We agree that the formal agreement shall comprise the finalisation and completion of the Model Contract [Local Authorities to insert reference to other Draft Agreements as appropriate] in the form enclosed with the Invitation to Submit Detailed Solutions, subject to any amendments that have arisen in subsequent competitive dialogue or fine-tuning, together with the completion of other requisite documentation.  

In the event that we are selected to proceed to the Invitation to Submit Final Bids stage and if subsequently selected as a Preferred Bidder, we agree to complete all necessary steps and execute all documentation that is agreed following submission of our Final Bid and following any clarification which may be required.

We acknowledge that the Local Authority may, at any time, require [name of organisation(s)] to agree and sign, and procure that [name of organisation(s)] as sub-contractors and lenders, agree and sign, the Preferred Bidder Letter.

We further acknowledge that the Local Authority reserves the right:

1.  not to award a contract;

2.  not to select a Preferred Bidder;

3.  not to issue a Preferred Bidder Letter;

4.  to withdraw a Preferred Bidder letter once issued; and/or

5.  to withdraw from this process.

We confirm that we agree with the Local Authority in legally binding terms to comply with the provisions relating to confidentiality set out in [insert details].

We confirm that in submitting our Solution(s), we have satisfied ourselves as to the accuracy and completeness of the information we require in order to do so (including that contained in the Invitation to Submit Detailed Solutions).

[We confirm that [insert name of the lender] has reviewed our Detailed Solution and confirms, by way of countersignature to this letter, the following:3

1.  [insert name of the lender] accepts the Draft PFI Project Agreement, the Draft PFI Payment Mechanism and the Draft Direct Agreement (together the "Draft Agreements") as submitted in our Detailed Solutions;

2.  all of the comments and concerns of the [insert name of the lender]'s legal advisors ([insert name of the lender's legal advisors]) regarding our Detailed Solution(s) have been reflected in our Detailed Solution(s) and, in particular, where [insert name of the lender's legal advisors] had comments and concerns in relation to the Draft Agreements such comments and concerns have been included by way of drafting amendments and accompanying commentary as part of our Detailed Solutions; and

3.  all of the comments and concerns of the [insert name of the lender]'s technical advisors ([insert name of the lender's technical advisors]) regarding our Detailed Solution have been reflected in our Detailed Solution and, in particular, where [insert name of the lender's technical advisors] had comments and concerns in relation to the Draft Agreements, such comments and concerns have been included by way of drafting amendments and accompanying commentary as part of our Detailed Solution.]

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3  To be reviewed in light of the Lender’s involvement in the Detailed Solutions.