Two step proposal process
In the next stage a two step proposal process is recommended to solicit commercial interest in the partnership: a request for qualifications, to identify the firms (including non-profits, ESOPs and other non-traditional entities) from whom it makes sense to solicit proposals, and a request for proposal, which will elicit formal proposals from those selected to compete. It hardly needs stating that the first step, which eliminates certain firms and entities from the competition process, is susceptible to abuse both deliberate and inadvertent, and must be managed with scrupulous care and high ethical standards.
A request for qualifications should provide the information needed to assess the market's ability to fulfill the requirements, but it should not be burdensome or cost-prohibitive for business to respond to the request.
The request for qualifications will need to address the objectives of the proposal. These should be expressed in terms of the desired output and performance requirements, but should not identify any specific solution. It should also include a discussion of the decision-making process and a realistic time line for the evaluation. The request for qualifications will also contain evaluation criteria, as required by the respective procurement legislation.
The request for qualifications should at a minimum ask each participating firm for the following information:
- experience in successfully designing, constructing and financing major projects;
- proposed approach and experience in addressing areas such as design, construction, operations, and maintenance experience;
- financial ability to meet the likely contractual obligations associated with the project;
- design, construction, financing and operational resources;
- approach to innovation;
- proposed risk-sharing structure;
- economic, social and community benefits that are proposed as part of the partnership; and
- ability to undertake the specific project, including ability to meet the specifications, the technical aspects of the project, and the quality requirements.
The request for qualifications should also address key issues such as risk sharing, pricing of services, and community benefits, as well as the government's contribution to the partnership and whatever regulatory issues may be encountered. It should include all relevant background information, a preliminary market assessment and the results of environmental and land use studies completed in the previous step. It should state that proprietary information must be identified in order to meet the requirements of the applicable Freedom of Information Acts. Local industry participation and technology transfer issues must be included for evaluation.
When the responses are received, the designated evaluation committee will meet to determine if they indicate an overall benefit to the government and community in terms of finance, economic and social factors. Successful responses will indicate preliminary viability and suitability for private sector financing and service delivery. The evaluation committee will then draft a short list of firms to receive a request for proposal.
The second step in the two-step solicitation step is preparation of a detailed request for proposal for the firms on the short list. Normally, this will not be more than two or three firms whose qualifications and submission best meet the government's requirements as discussed above. The evaluation committee will undertake a full evaluation of the detailed responses to the request for proposal and select a firm for negotiation as provided by the government's procurement rules.
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