An Alliance Development Agreement (ADA) is executed between each of the shortlisted Proponents and the Owner. Where it is allowed by jurisdictional policies and practices, the Owner can offer a capped fee for service agreement through which the Owner reimburses Proponents' costs to develop their Partial Project Proposals (and also the Final Project Proposal for the preferred Proponent). The Owner will retain the IP rights to any material developed during this phase, regardless of which Proponent is successful in selection. The Owner can then use this IP to enhance the successful Proponent's Final Project Proposal.
The shortlisted Proponents each develop a Partial Project Proposal that contains:
• Project Solution;
• Proposed Team;
• Proposed Commercial Arrangements; and
• TOC Budget (partial price).
The main difference between the partial and the full price process is that the TOC submitted by shortlisted Proponents is only at budget (partial price) stage because project characteristics mean that it is neither possible nor effective to develop a full committed TOC.
These Partial Project Proposals are developed with interaction by the Owner. The Owner also uses this interactive development activity 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 artificial interviews, scenarios or role playing).
A competitive process to selection allows Proponents to differentiate themselves by demonstrating their capabilities, capacity and commercial attractiveness.
It is expected that the Owner will establish processes to ensure that as each Proponent's Partial Project Proposal is developing, there is adequate separation of Owner Participants to assure a robust competitive process between the Proponents that satisfies probity requirements, while maximising Owner interaction.
A preferred Proponent is selected from these competitively bid Partial Project Proposals and then works with the Owner to develop a Final Project Proposal. This Final Project Proposal contains:
• Project Solution;
• Proposed Team;
• Proposed Commercial Arrangements; and
• Final TOC.
The Owner retains the second Proponent until the preferred Proponent's Final Project Proposal is accepted. This allows the Owner to revert to the second Proponent if they cannot reach agreement with the preferred Proponent.