Consistent with the National PPP Guidelines, the EOI phase is the first step of the formal bidding process. The purpose of the EOI phase is to allow the NSW Government to shortlist no more than three private parties to ensure overall transaction costs are minimised, and identify bidders that are most likely to provide the best value for money in delivering the project objectives.
Responsible Agencies should, in consultation with NSW Treasury, develop the EOI documentation based on the NSW Treasury PPP templates and the EOI checklist with due consideration of minimising bid costs. Responsible Agencies should carefully consider the need and use of all the requested information detailed in the returnable schedules.
The EOI documentation and requirements should clearly:
• set out the project objectives
• identify the conditions for participation a bidder must comply with to undertake the procurement1. For example:
- legal and financial capacity; and
- commercial and technical capability
• provide the criteria that will be used to shortlist bidders (which will be invited to make subsequent submissions), the relative importance of those criteria, and the justification for limiting the number of bidders
• identify the procurement approach, outline the contract structure, and a high-level risk allocation
• include a high-level project timetable to allow participants to prepare for mobilisation and the RFP phase
• include details of any Government contribution to the project (where agreed to between the Responsible Agency and NSW Treasury)
• include a clear delineation of scope of the PPP package and interfaces with the different project packages in the event the project comprises a number of contract packages, of which one is a PPP; and
• communicate which technical advisers and documents are required to be identified, and those that the Responsible Agency expects to contribute during the EOI stage.
Responsible Agencies should provide sufficient flexibility to allow consortia to procure specialist advisers, which are not key to shortlisting, after shortlisting has occurred. This may increase competition among specialist advisers and enable consortia to obtain improved pricing.
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1 Under Clause 16 of PBD 2019-05, the conditions for participation must not require prior contracts with Government in Australia, or prior experience in Australia.