The Owner's selection of the NOPs is based on a number of tender selection criteria which cover both non-price and price elements of the project. The tender selection criteria should be developed to suit the objectives for each specific project.
The Guide deals only with certain specifics of alliancing in tender selection criteria. The design and implementation of tender selection criteria is complex with many mandatory requirements prescribed by legislation, jurisdictional policies, guidelines, good probity practices, etc. Moreover, an Owner will normally introduce its own mandatory and non-mandatory criterion.
The principles which should inform this process include:
the criteria should address the Proponents' capability and capacity in the context of the Owner's VfM Statement;
separate criteria should be set to address each of the four interdependent components of an alliance project (i.e. project solution, Team, TOC and Commercial Framework) and the key features of alliancing;
the criteria should enable Proponents to demonstrate points of differentiation from other Proponents; and
explicit guidance should be given to the Selection Panel on how to assess and compare cost and non-cost criteria.
The tender selection criterion consists of broadly two main criterion groupings:
• non-price elements; and
• price elements.
Both are important to the Owner in order to successfully select the NOPs and deliver a successful alliance.