Once the decision has been made to use an alliance as the delivery method, the Owner will choose a strategy to select the NOPs. This strategy is discussed in Chapter 5.
While the overriding objective is to select the Proponent who demonstrates the best potential to deliver the Owner's VfM Statement (i.e. capital asset at a fair cost) there are a myriad of issues to be considered:
'Hard core project management skills and technical excellence in an individual is not always found in social stars. Those skills are core critical and must not be overlooked.'
[an Owner's Representative/Participant]
'Choosing the right partner requires the Owner to have an in-depth knowledge of what its organisation wants and have a capable team during the selection process to assess the Proponent's capabilities, to see through spin and coaching.'
[an Owner's Representative/Participant]
Competition and contestability will add value as it produces innovation, ideas, better quality. The selection criteria requirements will ensure that the market grows against those criteria.
[a state Treasury official]
Be prepared to call the alliance tender a failure and re-evaluate procurement method if value for money outcomes can't be met by bidders or the project cost is too high. i.e. there needs to be an explicit confirmation-a 'no/go' step.
[an Owner's Representative/Participant]
The quality of relationships-need to keep in mind the distinction:
Family (friends) relationships-good relationships are in themselves the reward.
Business relationships-good relationships are a means to good business outcomes (shareholders and taxpayers do not pay us just to have good relationships with people).
[a state Treasury official]
'The commercial bargaining power of the Owner in a one-step PAA (i.e. TOC negotiated after executing the PAA) is very weak-he must walk away from a formal contract if he doesn't agree to the TOC. This takes a lot of strength, political courage and conviction and in my experience is a rare event.'
[an Owner's legal adviser]