15. There can be no substitute for a clear output specification which is:
• capable of being priced by bidders;
• dovetails seamlessly with the payment and performance regime; and
• has captured all key stakeholders' requirements during the competitive phase of the procurement.
On some projects where the output specification has not been adequately worded and does not read across into the other key documents IPTs have found themselves in the position of having bidders who have priced their service solution (because it is more certain) as opposed to the Authority's output specification. This risk should have been addressed long before down-selection. In the unlikely event that IPTs do find themselves in this position (for whatever reason) with a preferred bidder they must immediately contact the PPFI who will assist.
16. Any ambivalence in the output specification will be picked out by the preferred bidder and the lenders' technical advisers during the non-competitive stage and will cause delay, confusion and probably re-pricing. The preferred bidder stage is far too late in the process to be correcting errors in this key element of the project documentation. That said, some IPTs have taken the opportunity of "polishing" their output specification and supplying a "refined" document to the preferred bidder on appointment - this approach is acceptable if what is being done is purely ironing out ambivalence but may prove more problematic if the IPT is attempting to correct its own errors or add additional requirement. If the latter is the case then be prepared for a request to re-price in which case the advice in paragraphs 44 to 54 is relevant. IPTs should also take legal advice on the materiality of any changes to the output specification and the likelihood of challenge from a down-selected bidder.
17. An all too common failing of IPTs is that when they begin drafting the various documents that will comprise their concession agreement they approach the task through "silos" and often fail to integrate the various documents. This often comes to light comparatively late in the day and is especially difficult to fix once competitive tension has been lost. It is absolutely critical that the output specification, the payment and performance mechanism and the contract read as (and are developed as) a single document. For a discussion on the importance of drafting project documents outside "silos" see the DPA PPFI Guidance Note: Drafting PFI Contracts.