The NOPs are selected using both non-price and price criteria. In relation to price criteria, this process requires the Proponents to tender a full target outturn cost (TOC).
This approach is generally used when it is possible and effective to obtain a full TOC estimate from more than one Proponent. It also allows the Owner to assess the Proponents' performance against the non-price selection criteria in the context of the Proponents actually undertaking project activities (rather than participating in staged interviews, scenarios or roleplaying).
Generally, a full price competition selection process will be conducted over the same duration and with similar resource requirements as a partial or non-price competition selection process (refer to "In Pursuit of Additional Value", Victorian Department of Treasury and Finance, 2009). However, generally the cost of conducting a competitive process is immaterial when compared with the additional overall VfM that the government derives through this competition. It is also important to note that a competitive process fulfils public sector policy and required procurement.
Additional information is provided in Appendix C1 and Guidance Note 5.