21.3  Group 1 Equipment and Group 2 Equipment

(a)  (Standard of Group 1 Equipment and Group 2 Equipment): Project Co must select and purchase items of Group 1 Equipment and Group 2 Equipment:

(i)  which have at least the equivalent standard, quantity, quality and functionality of the corresponding items of Group 1 Equipment and Group 2 Equipment in the Equipment List;

(ii)  which comply with the Delivery Requirements;

(iii)  which minimise Whole of Life Costs;

(iv)  in accordance with any direction to procure a State Selected Item in accordance with clause 20.5; and

(v)  without limiting clauses 21.3(a)(i) to 21.3(a)(iv), in such quantities and of such quality as is necessary for Project Co to deliver the Maintained Assets which satisfy the FFP Warranty.

(b)  (Nature of consultation process): Project Co:

(i)  must consult with the State and the Operator before purchasing an item (or group of items) of Group 1 Equipment or Group 2 Equipment to ensure that the State's requirements are appropriately identified and addressed;

(ii)  without limiting clause 21.3(b)(i), must:

A.  consult with the State in developing the Equipment Specification; and

B.  if requested by the State, procure samples or the demonstration of any item of Group 1 Equipment or Group 2 Equipment (for review by the State and the Operator);

(iii)  acknowledges and agrees that the State may (acting reasonably and by exception only) request that Project Co seek tenders for an item (or group of items) of Group 1 Equipment or Group 2 Equipment, in which case:

A.  Project Co must consult with the State in respect of the tender process and the terms of the proposed tender documents;

B.  the State may review the tenders received by Project Co; and

C.  the State may direct Project Co to accept a particular tender.

(c)  (Equipment Selection Notice): Prior to purchasing any item (or group of items) of Group 1 Equipment or Group 2 Equipment, Project Co must submit to the State, for review in accordance with the Review Procedures, an Equipment Selection Notice for the item (or group of items) of Group 1 Equipment or Group 2 Equipment, which notice must include:

(i)  details of the proposed supplier;

(ii)  the Equipment Specification;

(iii)  details of any costs to be borne by the Operator in respect of the item (including the cost of consumables);

(iv)  in respect of an item of Group 2 Equipment only, confirmation that Project Co has consulted and liaised with the Services Contractor concerning the relevant item of Group 2 Equipment;

(v)  if requested by the State:

A.  arrangements in respect of a sample or demonstration of the selected item (to the extent possible); and

B.  if applicable, a summary of the reasons for Project Co's recommendation; and

(vi)  any other particulars reasonably required by the State.

(d)  (State right to direct Project Co during the consultation process for Group 2 Equipment): The State may as part of the consultation process for any item (or group of items) of Group 2 Equipment issue a direction to Project Co in writing in respect of any of the following:

(i)  the selection of the item;

(ii)  the quantity of the item;

(iii)  to direct Project Co to seek pricing or tenders for the item from one or more particular suppliers;

(iv)  to direct Project Co to procure the item from a particular supplier; or

(v)  to notify Project Co of additional requirements or terms and conditions for inclusion in the proposed procurement process for the item including in respect of:

A.  the provision of accessories; or

B.  optional specifications.

(e)  (Procurement): Project Co must procure the item (or group of items) of Group 1 Equipment or Group 2 Equipment in accordance with the relevant Equipment Selection Notice and, in respect of Group 2 Equipment, any direction of the State under clause 21.3(d).