Interview

Question 1

Procurement

Answer 1

• decide to invest in infrastructure
• seek offers and engage renderers to deliver capital investment

Question 2

Key steps

Answer 2

To implement procurement startegy:
- procurement planning, due diligence, documentation
- engage the market (market testing, EOIs and RFP)
- evaluate offers
-negotiate successful proponent
- contract award

Question 3

Values for procurement (6)

Answer 3

VfM
Competitive
Transparent
Process improvement
Capability uplift
Probity

Question 4

Legislation underpinning (financial)

Answer 4

FMA
SD

Question 5

Legislation (additional)

Answer 5

Gender equality
Heritage
Aboriginal heritage
Local jobs first
Land and planning leg

Question 6

What are the other guidelines?

Answer 6

Instructions for Victorian Public Construction Procurement

Question 7

Instructions for Victoria Public Construction Procurement

Answer 7

Principles and procedures that must be complied with
- tendering requirements
- Construction practices
- Promote competition
-fair and transparent

Question 9

Procurement categories (3)

Answer 9

• whole of lie
• lump sum
• cost reimbursable

Question 10

Whole of life

Answer 10

• PV projects
• long term
• government or users pay private sector to deliver infrastructure and related services

Question 11

PV projects

Answer 11

• Frankston hospital redevelopment
• metro tunnel
• GLM

Question 12

GLM

Answer 12

• Consortium finance, design, construct
• manage for 40 years
• back to govt, increase housing portfolio
• govt owned land
• social and private sector
• housing, including affordable and social housing
• service fees, abated if op standards not met
• allocation of risk to parties best places to manage

Question 13

Framework for procurement and construction (2)

Answer 13

MDs
Instructions for Vic Public Construction Procurement

Admin by Min Fin - prescribed principles and procedures

Question 14

MD

Answer 14

• under FMA, more detailed and specific guidance
• responsible office support Minister in financial management
• acquiring assets
• contract management

Question 15

Instructions for Vic Public Construction Procurement

Answer 15

• principles and procedures must comply with
  Eg. Tendering, transparent and fair, construction priorities, probity
• model tender docs under Vic Public Construction Contracts

Question 16

HVHR (3)

Answer 16

• Assurance requirement
• More rigorous scrutiny and approval process
• infrastructure and ict projects

Question 17

What HVHR does (3)

Answer 17

• verify planning and procurement procedures followed
  -support quality project palnning
• impartial advice to govt on the deliverability

Question 18

Additional assurance (3)

Answer 18

Project assurance plans
Gateway review
Project assurance reviews

Question 19

PAP

Answer 19

• assess projects at each step
• where exemptions and additional approvals require
• dtf involvement varies
• keeps Treasurer and DTF informed

Question 20

Gateway review

Answer 20

Six gates, additional levels of assurance

If anything red - recommended action plans.. risk mitigation.

Question 21

Project assurance reviews (4)

Answer 21

1. Improve delivery confidence
2. Mitigate scope creepy
3. T can request
4. Compliment gateway review

Question 22

Standard form contract

Answer 22

Under Victorian Public Construction Contracts
IDG administer these out

Question 23

Benefits of SFC (4)

Answer 23

• efficiency
• consistency
• cost effective
• reduce need for legal review and extensive negotiation

Question 24

What changed recently and why

Answer 24

Dollar value thresholds

Why: once every five years

Question 25

Dollar value thresholds

Answer 25

Determine processes and approvals required for construction procurement Lower value = efficiency, stream line Higher value = robust, competitive, transparent, probity

Question 26

Why did it increase

Answer 26

- based on construction dataset indices - except increases to 2028 - feedback from agencies that use it

Question 27

MLP guideline

Answer 27

- framework for assessing and implementing proposals - from private - consistent with govt priorities - vfm - exclusive negotiations w govt

Question 28

Criticisms

Answer 28

Narrow and hard to hit criteria E.g. excl social housing, land transactions Reliant on clearly defined proposals/offers

Question 29

What has everyone been interested in?

Answer 29

Strategic land developments

Question 30

Three new options

Answer 30

1.govt lead EOI/RFP 2. strategic development pathway 3. Govt lead problem and Op Statement process

Question 31

Strategic development pathway

Answer 31

Not fully cooked Require facilitation/cross portfolio collaboration

Question 32

Problem and opportunity statement pathway

Answer 32

Govt invite innovative responses from industry to opportunity Greater certainty to private sector

Question 33

Govt process

Answer 33

Formalised to be referred for competitiveness process when exclusive negotiations not justified

Question 34

Priorities for IDG

Answer 34

SRL, SRL ffs Offshore wind Metro Tunnel High towers

Question 35

Stages of Business case to procurement (8)

Answer 35

-business case - dtf assess, HVHR status, PAP - EOI/RFT - short-list - RFP - preferred respondent - Contract negotiation / award - project summary, management, documents disclosed

Question 36

REMEMBER

Answer 36

- vfm - consistent with govt priorities - fiscal impact - deliverability - consultation with dept and teams - assurance