A Reviewable Services regime reduces the extent of Project Co's exposure to changes in the costs of delivery over time, and the State will propose such a regime where it offers value for money. A Reviewable Services regime provides an opportunity for the State to capture productivity and innovation in delivery of Services which emerges in the market over time.
The process for the review of Reviewable Services in the SIPD is set out in Annexure 5.
Reviewable Services will be determined on a project specific basis, however, they should only include Services where:
• the nature of the service requirement by the Operator is likely to change over the Term;
• the Service is heavily labour-based;
• outside of an Availability PPP Project, the Services are not typically delivered under long term contracts; and
• the Whole of Life Cost and risk allocation is not compromised by the review of the Services.
Typical Reviewable Services include cleaning, catering, pest control, logistics and portering. 'Hard' facilities maintenance services such as building maintenance are typically non-reviewable because they are closely tied to the specific nature of the Project Assets, and Project Co will bear the related cost risks over the Term.
Where relevant Services are also included in a Linear Infrastructure Availability PPP Project (for example cleaning of train stations), the Reviewable Services regime from the SIPD should be used as a drafting guide.
The Reviewable Service process provides for:
• a period of exclusive negotiation between the State and Project Co and the relevant Reviewable Services Subcontractor for the relevant Reviewable Services over the next Reviewable Services Term; and
• if no agreement is reached during the exclusive negotiations, retendering of the services by Project Co.
Respondents are required to prepare a Reviewable Services Schedule as part of their Proposals, which includes a detailed breakdown of the Reviewable Services pricing and the Successful Respondent's Reviewable Services Schedule will be incorporated into the Project Deed. This is updated for each Reviewable Services Term. This is to ensure that the State is able to properly compare the Reviewable Services pricing submitted as part of the Reviewable Services process against the original prices upon which the Services Contractor was engaged.