14.1  General principles

(a)  Subject to section 14.1(b), the Proponents must undertake a competitive tender process (Tender Process) for all parts of the relevant Augmentation other than the management of the delivery of the Augmentation (in respect of which the Augmentation Management Fee is payable). 

(b)  In only exceptional circumstances and if the Proponents are able to demonstrate to the satisfaction of the State that it is not possible or will not deliver the State value for money to run a competitive Tender Process for any part of an Augmentation, the Proponents must propose another process, and demonstrate that the outcome of this alternative process will deliver at least the same value for money to the State as a competitive Tender Process.

(c)  If the State agrees to an alternative process to a Tender Process for the procurement of any part of the Augmentation (Alternative Process):

(i)  any such Alternative Process must be set out in the Augmentation Process Deed and must be undertaken on a transparent and open book basis.  Any proposed rates or margins must not exceed relevant rates or margins set out in the Change Compensation Principles

(ii)  subject to section 14.1(c)(iii), the price outcome of the Alternative Process will not be subject to further adjustment, other than to the extent of a change in scope of the Augmentation agreed to by the State; and 

(iii)  if the State notifies the Proponents that it is dissatisfied with the Alternative Process (including the progress of the Alternative Process) or the outcome of the Alternative Process, the Proponents must cease the Alternative Process (if not already concluded) and instead undertake a Tender Process for the relevant part of the Augmentation.  If the State notifies the Proponents that it is dissatisfied with the outcome of such Tender Process, the Proponents will be bound to offer the outcome of the preceding Alternative Process (to the extent concluded).  

(d)  Without limiting sections 9.2 and 9.3, none of the Proponents or the Proponent Associates are entitled to make any Claim against the State or any State Associate in connection with a Tender Process or any Alternative Process for an Augmentation