Agencies/Owners often conduct dual negotiations with two shortlisted parties. The application of this strategy17 can be found in public-private partnerships, D&C, alliances, etc. In each case, the relevant probity principles which arise for particular consideration, management and mitigation are:
• fairness;
• consistency and objectivity; and
• conflict of interest/bias.
In each significant procurement process, there is normally a step to establish a project probity plan that deals with these matters in both a business-as-usual manner as well as targeting specific probity risks heightened for the particular project.
Normally, in all procurement options (including alliancing) where the Owner undertakes a dual negotiation process, the Owner seeks to identify the Preferred Proponent based on its tender selection criteria that includes a range of price and non-price evaluation elements. In addition to the provision of tender documentation that articulates the Owner's project requirements, the Owner will make available resources to explain its requirements to the Proponents and answer questions. This is done in close adherence to probity protocols established specifically for the project and generally for government procurement processes.
_______________________________________________________________________________
17 'Dual negotiations' refers to the tender strategy where the Owner identifies a shortlist of two Proponents and where both Proponents develop their best tender offer that is confirmed in their signed contract agreement. The Owner then concludes its evaluation and countersigns the agreement that best satisfies its requirements and tender selection criteria.