This version of the NSW PPP Guidelines, compared to the 2012 version of the NSW Guidelines, includes the following changes and/or new additions:
■ New title reflecting the fact that the NSW PPP Guidelines now provide greater detail across all project phases, from business case, through key procurement phases and throughout contract management (construction delivery and ongoing operations).
■ A clearer requirement to involve NSW Treasury in all project phases, including from the initial business case and procurement decisions for likely PPPs to facilitate efficient and effective project delivery and management of contractual issues. PPP procurement is to be considered as a procurement option for any capital project greater than $100 million.
■ Greater clarity and integration of the Government Approvals process and key project steps to related Treasury Circulars and Policies as well as the Infrastructure Investor Assurance Framework (IIAF), including the NSW Gateway Review System, and the Environmental and Planning Approval (EPA) process. The updated approval processes remain consistent with the processes outlined in the National PPP Guidelines and the 2012 NSW PPP Guidelines.
■ Clearer guidance on required Treasurer's approvals under the PAFA Act for new and existing joint financing arrangements and any associated new or existing Guarantee of a Responsible Agency's financial contractual obligations.
■ Greater clarity around any overlaps with the Unsolicited Proposals Guide. Variations to existing PPPs are to be treated within the NSW PPP Guidelines as contract variations, if the existing contract provides for variations or if there is no new infrastructure or service. Unsolicited proposals for a new PPP concession need to be assessed under the Unsolicited Proposals Guide and the NSW PPP Guidelines.
■ Updated and revised Fiscal Impact Tables and Negotiation Parameters (Appendix 2) required to be prepared during the Planning and PPP Procurement and Delivery Phases, and recognising TPP 15-02: Budgeting for Availability based PPPs.
■ Early establishment of the Governance Framework in consultation with NSW Treasury and including appropriately experienced Steering Committee or Advisory Board Members, Project Director and key advisers.
■ Refined procurement processes, consistent with the objective of minimising bid costs, including the requirement:
- to use the PPP Toolbox (a suite of PPP templates and pro-forma documents) when preparing PPP Governance Plans, Probity Plans, Confidentiality Deeds, Adviser Request for Proposals (RFPs) and evaluations, Expression of Interest (EOI) documentation and evaluation, RFP documentation and evaluation, and PAFA Act Approvals. Agencies wishing to use an alternative template must receive approval from NSW Treasury.
- to comply with the NSW Treasury template social infrastructure PPP contract documents and the PAFA Act Guarantee Deed Poll, and to seek approval from NSW Treasury for any departures.
- for Responsible Agencies to prepare a Market Communication Strategy documenting the process for communicating with potential and short-listed bidders, and ideally including key project objectives and priorities, a realistic project timetable, and the process for communicating project delays or accelerations. This Strategy is to be updated at each key project phase shown in Figure 3.1, including prior to EOI and RFP issue.
■ Where possible, Responsible Agencies should procure geotechnical site investigation information, extent of utilities and other reports on the basis that shortlisted bidders can rely on the findings and factual information, but not necessarily inferences from those findings. Ideally the scope and nature of the investigations is to be determined in consultation with bidders.
■ Early (pre-RFP) bidder interaction to gain bidder reactions to certain output specifications and risk allocation requirements, within the project probity framework.
■ Responsible Agencies submitting EOI and RFP documentation Checklists to NSW Treasury to ensure quality consistent documents are released, minimal but necessary information requirements and that the project team is adequately prepared to manage the tender process.
■ Electronic submission of bids and ensuring all evaluators have appropriate experience and training in PPP evaluation.
■ Greater guidance on value for money bid evaluation based on a detailed assessment of all aspects of price, financial and non-price information and criteria. A proposal is value for money if it achieves the required project objectives in an efficient, high quality, innovative and cost-effective way with appropriate regard to the allocation, management and mitigation of risks. Value for money takes into account quantifiable and non-quantifiable benefits, costs and risks. A formulaic approach which can place undue emphasis on price is not to be used.
■ Use of a Public Sector Comparator (PSC) and/or a Shadow Bid Model (SBM) during the Business Case and Procurement stages to inform likely value for money drivers and to inform the procurement method decision. During procurement the SBM will be used to interrogate the reasonableness of bidders' financial models.
■ Clearer and more detailed guidance on Contract Management Delivery and Operations, highlighting the early engagement of a Delivery Project Director (prior to contract signing), the role of an experienced inter-agency Delivery Steering Committee or Board, the need to manage key Delivery and Operational risks and project budgets (including specific provisions for contingencies).
■ Inclusion of the requirement to comply with the Treasury Circular TC15-16: Managing PPP Contracts, including consulting with NSW Treasury for any proposed material changes to commercial and/or contractual arrangements and, in some cases obtaining Cabinet/Ministerial approvals for certain changes.
■ Post Implementation Reviews to be conducted consistent with the Gateway Review System and IIAF for Tier 1 projects and 1-2 years after operations have commenced. A separate PPP specific Post Implementation Review process is no longer required as this would largely duplicate the IIAF process.
■ New requirements for producing PPP Project Summaries (formerly known as Contract Summaries), to improve readability, consistency with other jurisdictions, and to ensure Summaries are produced in a cost effective and timely manner. This includes:
- Placing the responsibility of accurate production of the Project Summary on the Responsible Agency and legal experts (for those components of the summary relating to the Contracts). The Auditor General is no longer required to audit the Project Summary. This change is made cognisant of the fact that redacted Project Contracts are now released under the Government Information (Public Access) Act 2009 (GIPA Act) and given the costs and time involved for the Auditor General to audit the Project Summaries.
- Streamlining the required content of Project Summaries to be more reader friendly, less technical and with a more balanced approach to documenting Project and Contract information.
- The Project Summary will continue to be placed on the NSW Treasury PPP website but will no longer be tabled in Parliament.