PPP Procurement
In conducting discussions with bidders during the clarification phase, the contracting authority should treat all bidders equally; particularly regarding sharing of information. For this reason, the normal protocol to be established is that all answers to questions submitted by individual bidders shall be shared with all bidders. This can sometimes give rise to gaming techniques among bidders, who may not wish to ask certain questions, for fear of giving their competitors clues to their bidding strategy.
Changing the PPP contract after bids have been received and a preferred bidder selected, although sometimes necessary, should be avoided as much as possible. In negotiating a PPP contract with a preferred bidder, the contracting authority can no longer rely on competitive tension to ensure VfM and, depending on the outcome of the bidding evaluation, may find itself in a weak bargaining position. Additionally, any changes to the PPP contract at this stage may give rise to legal challenges from unsuccessful bidders.
Contracting authorities with a lot of experience in PPP procurement processes tend to limit the extent of post-bid interaction to clarification and fine-tuning of the PPP contract and/or the winning proposal. Some contracting authorities do not even allow post-bid interaction at all.
3.4
Bidding process
Section 3.4 provides guidance on two of the decisions that the contracting authority will need to make when structuring the bidding process: • Will it be a single-stage or a multi-stage bidding process? • Will “competitive dialogue” be allowed? a.
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Single-Stage vs. Multi-Stage Bidding Process In a single-stage bidding process, bidders present both technical and financial proposals, which are evaluated to select the preferred bidder. In some mature PPP markets, however, the tender has multiple stages. In a multi-stage bidding process: •
Bidders present an initial proposal, typically including a financial bid and comments on the draft contract; then
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The contracting authority reviews the initial proposals, provides feedback to bidders, and can choose to refine the RfP and the draft contract. If the contracting authority chooses to refine the bid documents, they will request that shortlisted bidders submit revised proposals. In order to make maximum use of the competitive process, the contracting authority should make sure that all shortlisted bidders receive the same information and equal opportunity to submit an improved proposal.