Output-Based Specifications for PFI/PPP Projects

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21. Stage 3 – Definition of the Technical Evaluation Criteria • Once the OBS is sufficiently developed the acquisition team will need to consider the tender evaluation criteria for the bidders’ proposals and prepare the technical aspects of the tender evaluation plan. • The evaluation of the bidders’ proposals will need to consider: − whether the bidder proposes to fully or partially meet the requirements of the OBS; − whether the bidder’s proposed inputs are likely to satisfy the requirements of the OBS; and − whether the bidder is likely to be able to deliver the proposed inputs. • The evaluation will therefore need to include an evaluation of: − the impact on the user of any stated non-compliance and its effect on the achievement of the desired outcome; − the level of confidence that the proposed inputs will deliver the required outputs; − the level of confidence that the bidder can project manage and carry out the design, construction and commissioning of the proposed assets, equipment and infrastructure; − The level of confidence that the bidder can manage, administer, and integrate the proposed inputs in order to deliver the outputs. • The evaluation criteria will therefore need to consider not only the inputs proposed by the bidder, but also the bidders’ competence to deliver and implement them. The key test as to whether the evaluation criteria is appropriate, will be whether it appropriately assesses and differentiate between circumstances such as: − The bidder proposes to meet the OBS, but the inputs are evaluated as being unlikely to deliver the outputs; − The bidder proposes to meet the OBS with inputs that are likely to deliver the outputs, but there are flaws in the bidder’s project management planning and/or plan for the management, administration, and integration of the proposed solution. Page 12 of 17
22. Stage 4 – The Definition of the Scope and Content of the Bidder’s Proposal • The principal purpose of the bidders’ proposal is to describe how they will meet the OBS and define the inputs that will deliver the outputs. • However, based on the evaluation criteria defined in Stage 3, and given that the bidder’s proposal is intended to be incorporated into the Contract it is sometimes useful to require that bidders submit their proposals in two parts: − the first to define the solution and provide a functional specification of the inputs to satisfy the OBS that will form part of the Contract (hereafter referred to as the “Input Specification”); and − secondly, the evidence of the bidder’s competence, skill and experience to deliver and implement the proposed solution and inputs that will be used for the purposes of evaluation only (hereafter referred to as the “Supporting Evidence”). • The Input Specification should as a minimum require that bidders propose: − An OBS Compliance Matrix that confirms whether or not their proposal meets the performance standards and service levels for each output defined in the OBS, and identifies any shortfalls or limitations in their achievement. − A top-level description of the inputs that are proposed and how they contribute to the delivery of the outputs. This should include a clear picture of what inputs contribute to the delivery of which outputs; − A technical specification of each input that: � describes the physical (qualitative and quantitative) performance characteristics of the input; � describes how the physical and performance characteristics of the input enables the input to contribute to the delivery of the output. − A description as to how any constraints specified in the OBS will be complied with. − A specification of any Government Furnished Assets (GFA) that is required to be provided by the Authority (either Page 13 of 17
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Output-Based Specifications for PFI/PPP Projects

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