(a) (State selection): Subject to this clause 21, the State must select all items of Group 3 Equipment.
(b) (Responsibilities during consultation process): As part of and, otherwise to facilitate the conduct of, the consultation process for an item (or group of items) of Group 3 Equipment, the State must:
(i) prepare the Equipment Specification with the assistance of Project Co, based on an agreed template document to be provided by Project Co;
(ii) confirm the quantity of the item of Group 3 Equipment to be procured;
(iii) if the item is fixed, confirm the location within the Maintained Assets of that item;
(iv) if the item is loose, confirm the location for storage of that item within the Maintained Assets; and
(v) provide a list of suppliers from which Project Co must seek tenders for the supply of the Group 3 Equipment item.
(c) (Preparation of proposed request for tender proposal): Following completion of the consultation process for each item (or group of items) of Group 3 Equipment, Project Co must submit to the State, for review in accordance with the Review Procedures, a proposed request for tender for each item (or group of items) of Group 3 Equipment (Request for Tender for Group 3), which must be consistent with and otherwise reflect the outcome of the consultation process and as a minimum request tenderers to submit the following:
(i) the proposed Purchase Cost (exclusive of GST);
(ii) details of any options in respect of:
A. servicing;
B. the terms of any proposed maintenance agreements;
C. volume discounts;
D. other discounts; and
E. warranty periods;
(iii) if not included in the Purchase Cost, details of any delivery, relocation, transport, installation, connection, commissioning and testing costs;
(iv) details of any Taxes applicable to the item (including GST);
(v) details of lifecycle replacement and refurbishment costs, maintenance, repair and cleaning costs, operating costs including the cost of Utilities, telecommunications, consumables, and other direct operating costs;
(vi) details of the date and time when the item will be delivered to the Site;
(vii) details of any training to be provided; and
(viii) any other particulars reasonably required by the State (which may include details of the commercial terms on which the item may be acquired).
(d) (Commencement of warranty periods for Group 3 Equipment): Project Co must use its best endeavours to procure all items of Group 3 Equipment on commercial terms which provide that the warranty periods for such items commence from the Date of Commercial Acceptance (or if such item is to be procured and installed as part of Final Acceptance, the warranty period for such item should commence from the Date of Final Acceptance) notwithstanding any earlier purchase or installation dates.
(e) (Conduct tender process): Subject to the Review Procedures, Project Co must conduct the tender process for the item (or group of items) of Group 3 Equipment in accordance with the Request for Tender for Group 3.
(f) (Receipt of tenders): Project Co must:
(i) not open any tenders responding to the Request for Tender for Group 3 without the State and the Operator being present; and
(ii) provide a copy of any tenders responding to the Request for Tender for Group 3 to the State and the Operator.
(g) (Evaluation of tenders):
(i) The State will:
A. evaluate the tenders responding to the Request for Tender for Group 3;
B. select a preferred tenderer and notify Project Co of its selection (which selection the State may change by notifying Project Co); and
C. to the extent that the tenders contain options for consideration by the State, notify Project Co of its preference in respect of such options.
(ii) Project Co must review the tenders to ensure they comply with the Request for Tender for Group 3 and contain all relevant information and otherwise assist the State in evaluation more generally.
(iii) Project Co must manage the conduct of the tender process including:
A. seeking any outstanding information or details from tenderers;
B. responding to questions from tenderers; and
C. if requested by the State, otherwise arranging for the conduct of meetings to be attended by the parties and each of the tenderers.
(iv) Prior to notifying the preferred tenderer, Project Co must notify the State if the State's selection of a proposed preferred tenderer for an item (or group of items) of Group 3 Equipment may adversely affect the performance by Project Co of its obligations under this Deed.
(h) (Equipment Selection Notice): Prior to notifying the preferred tenderer, Project Co must submit to the State for review in accordance with the Review Procedures, an Equipment Selection Notice in respect of the item (or group of items) of Group 3 Equipment selected by the State, which notice must:
(i) reflect the State's instructions (including as to which alternatives are to be pursued) in relation to the details set out in clause 21.4(c), having regard to the responses to the Request for Tender for Group 3;
(ii) contain details of the aggregate of the Purchase Costs for all items of Group 3 Equipment that Project Co proposes to procure (and whether this is less than or more than the Group 3 Limit); and
(iii) any other particulars reasonably required by the State.
(i) (Approval): Subject to the Review Procedures, Project Co must:
(i) notify the tenderer that it is the preferred tenderer;
(ii) subject to clause 21.4(i)(iii) and the State's right to be involved in any such negotiations, negotiate the proposed terms for the purchase of the relevant item (or group of items) of Group 3 Equipment; and
(iii) provide the proposed final purchase agreement to the State for review in accordance with the Review Procedures.