8.2  TOC Development in the context of tender selection criteria

The Owner's tender selection criteria, of both non-price and price elements, will be provided in the EOI and the RFP documents. The selection criteria will also incorporate a hurdle criterion, which often only address non-price elements, in both the EOI and RFP documents and these need to be satisfied if Proponents are to continue being eligible for consideration in the tender process.

Broadly, different tender selection criteria are used at different stages of the selection process:

•  EOI Stage-generally the tender selection criteria here deals with non-price elements and focuses on the minimum level of corporate experience and capability required to undertake the project in hand (these do not generally deal with project costing). The Proponents need to satisfy these hurdle criteria in order to be shortlisted and proceed in the tender process. The EOI stage is commonly treated as a 'hurdle to entry' with corporate experience and capability set to minimum standards the Owner requires to undertake the project.

•  The RFP Stage 1 [this is sometimes used in addition to the EOI Stage to help manage an expected large or highly competitive field of bidders, where another round of shortlisting is required. In this case, the RFP is structured into two stages]-generally, the shortlist in Stage 1 would receive detailed tender documentation and selection at this point is made on the (additional) basis of a selection criteria that generally includes specifics of experience, capability and commitment to alliancing principles, etc, and a response to the Proponents' acceptability of the draft commercial and legal (PAA) frameworks; and some pricing information. It is common for the RFP to call for the NOP fee to be nominated (unique for each designer/contractor consortia formed), and to also nominate the percentage split of sharing pain or gain between Participants within the Proponents team.

•  The RFP Stage 2-the two shortlisted parties are assessed against the comprehensive tender selection criteria, including both price and non-price criteria. The selection criteria are (additionally) tailored to promote behaviours and display expertise that matches project characteristics and the Owner's objectives. The TOC development phase takes place as part of the RFP Stage 2. (The Owner's assessment of the acceptability of the nominated NOP fee should be finalised as part of the RFP Stage 2 towards end of the TOC development phase once the project scope, cost, commercial and legal framework etc are finalised.)

Figure 22: Illustration of the Selection process