6.6  Minimum Conditions of Satisfaction (MCOS)

As with any procurement methodology, there is an expectation that the alliance team members and their behaviours will meet certain levels of performance across a number of key areas related to the project's delivery. The minimum performance requirements for the alliance are referred to as the 'Minimum Conditions of Satisfaction' (MCOS) for Key Result Areas (KRAs). These are included in the Request for Proposal (RFP) documentation for Proponents to respond to and be assessed against during the selection process. For example, these may include project deliverables aligned to the approved Business Case and Owner's VfM Statement in areas such as:

•  functionality;

•  quality/workmanship;

•  cost;

•  schedule;

•  stakeholder engagement;

•  sustainability; and

•  others.

The Owner's VfM Statement should include detailed definitions of MCOS and clearly identify whether an 'outstanding/gamebreaking performance' is required and the performance reward (if any) associated with this (which should reflect the actual value the Owner places on achieving exceptional performance for non-price objectives). It is important that the Non-Owner Participants are aligned with the Owner's expectations for their level of performance.

The Owner will also need to determine whether the alliance needs to pursue an 'outstanding/gamebreaking performance' and/or project outcomes that are innovative in nature (i.e. 'a paradigm shift', 'not done before') to satisfy particular project deliverables in accordance with the Business Case objectives. This decision should not be made by the alliance.