The role of alliancing in delivering

Victoria’s Regional Rail Link Project

Robert Macey, Director Commercial & Legal,

RRLA

Regional Rail Link Project

Contract model analysis

InnovationInnovation

Risk

management

Risk

management

Time to deliverTime to deliver

Whole of LifeWhole of Life

Flexibility Flexibility Market

appetiteMarket

appetite

ARO interfaceARO interface

Stakeholder managementStakeholder

management

Budget Budget

Competitive alliancing

• In Pursuit of Additional Value – A

benchmarking study into alliancing (October

2009)

• National Alliance Contracting: Policy Principles

(July 2011)

Drivers informing approach

CertaintyCompetitive

tensionARO

resources

Due diligence

phase

1

Procurement process

2

Proponent 2

Proponent 1

Desktop

review

Review of price

and non price

criteria

Interviews

1 day

interviews with

up to 4

Proponents

Shortlist

2 Proponents

Consider best

for overall

project

RFP Process

Document

•RRL Project

Background

•Project Package

Overview

•Alliance Structure

and Objectives

•Procurement

Process

•Draft PAA

(Compensation

Framework incl

KRAsand KPIs)

RFP Data Room

Information includes:

•Concept design

•Detailed tech specs

•Guidance on

occupations

Preferred

Proponent

Project

Proposal

& TOC

Approved

Project

Proposal

& TOC

Proponent 2

Proponent 1

Interviews

With

Proponents

Evaluation

Assessment

of Initial

Proposals

Shortlist

Selection of

the two

Shortlisted

Proponents

Volume 1:

Commercial

Proposal

Volume 2:

Technical

Proposal

RFP Process

Document

Overview of RRL

Project & Work

Package

Procurement

Process

Prequalification

Requirements

Electronic Data

Room

Project Scope &

Technical

Requirements

Returnable Schedules

Contract Documents

Reference Material

Preferred

Proponent

Project

Proposal

& TOC

Approved

Project

Proposal

& TOC

Technical and Commercial Workshops

[6 Weeks] [6 Weeks] [19 Weeks] [6 Weeks] [8 Weeks] [6 Weeks]

Prequalification and Initial Proposal Stage Final Proposal Stage Clarification & Due Diligence

Evaluation Approvals

Information submitted

by Shortlisted Proponent

Probity Deed

Execution of ADA and Proposal Bond

Final Proposal

(Returnable

Schedules, TOC,

PAA)

Information submitted

by Shortlisted Proponent

Final Proposal

(Returnable

Schedules, TOC,

PAA)

Initial

Proposal

Initial proposal

3

Proponent 2

Proponent 1

Desktop

review

Review of price

and non price

criteria

Interviews

1 day

interviews with

up to 4

Proponents

Shortlist

2 Proponents

Consider best

for overall

project

RFP Process

Document

•RRL Project

Background

•Project Package

Overview

•Alliance Structure

and Objectives

•Procurement

Process

•Draft PAA

(Compensation

Framework incl

KRAsand KPIs)

RFP Data Room

Information includes:

•Concept design

•Detailed tech specs

•Guidance on

occupations

Preferred

Proponent

Project

Proposal

& TOC

Approved

Project

Proposal

& TOC

Proponent 2

Proponent 1

Interviews

With

Proponents

Evaluation

Assessment

of Initial

Proposals

Shortlist

Selection of

the two

Shortlisted

Proponents

Volume 1:

Commercial

Proposal

Volume 2:

Technical

Proposal

RFP Process

Document

Overview of RRL

Project & Work

Package

Procurement

Process

Prequalification

Requirements

Electronic Data

Room

Project Scope &

Technical

Requirements

Returnable Schedules

Contract Documents

Reference Material

Preferred

Proponent

Project

Proposal

& TOC

Approved

Project

Proposal

& TOC

Technical and Commercial Workshops

[6 Weeks] [6 Weeks] [19 Weeks] [6 Weeks] [8 Weeks] [6 Weeks]

Prequalification and Initial Proposal Stage Final Proposal Stage Clarification & Due Diligence

Evaluation Approvals

Information submitted

by Shortlisted Proponent

Probity Deed

Execution of ADA and Proposal Bond

Final Proposal

(Returnable

Schedules, TOC,

PAA)

Information submitted

by Shortlisted Proponent

Final Proposal

(Returnable

Schedules, TOC,

PAA)

Initial

Proposal

Final proposal

4

Proponent 2

Proponent 1

Desktop

review

Review of price

and non price

criteria

Interviews

1 day

interviews with

up to 4

Proponents

Shortlist

2 Proponents

Consider best

for overall

project

RFP Process

Document

•RRL Project

Background

•Project Package

Overview

•Alliance Structure

and Objectives

•Procurement

Process

•Draft PAA

(Compensation

Framework incl

KRAsand KPIs)

RFP Data Room

Information includes:

•Concept design

•Detailed tech specs

•Guidance on

occupations

Preferred

Proponent

Project

Proposal

& TOC

Approved

Project

Proposal

& TOC

Proponent 2

Proponent 1

Interviews

With

Proponents

Evaluation

Assessment

of Initial

Proposals

Shortlist

Selection of

the two

Shortlisted

Proponents

Volume 1:

Commercial

Proposal

Volume 2:

Technical

Proposal

RFP Process

Document

Overview of RRL

Project & Work

Package

Procurement

Process

Prequalification

Requirements

Electronic Data

Room

Project Scope &

Technical

Requirements

Returnable Schedules

Contract Documents

Reference Material

Preferred

Proponent

Project

Proposal

& TOC

Approved

Project

Proposal

& TOC

Technical and Commercial Workshops

[6 Weeks] [6 Weeks] [19 Weeks] [6 Weeks] [8 Weeks] [6 Weeks]

Prequalification and Initial Proposal Stage Final Proposal Stage Clarification & Due Diligence

Evaluation Approvals

Information submitted

by Shortlisted Proponent

Probity Deed

Execution of ADA and Proposal Bond

Final Proposal

(Returnable

Schedules, TOC,

PAA)

Information submitted

by Shortlisted Proponent

Final Proposal

(Returnable

Schedules, TOC,

PAA)

Initial

Proposal

Clarification and due diligence

5

Proponent 2

Proponent 1

Desktop

review

Review of price

and non price

criteria

Interviews

1 day

interviews with

up to 4

Proponents

Shortlist

2 Proponents

Consider best

for overall

project

RFP Process

Document

•RRL Project

Background

•Project Package

Overview

•Alliance Structure

and Objectives

•Procurement

Process

•Draft PAA

(Compensation

Framework incl

KRAsand KPIs)

RFP Data Room

Information includes:

•Concept design

•Detailed tech specs

•Guidance on

occupations

Preferred

Proponent

Project

Proposal

& TOC

Approved

Project

Proposal

& TOC

Proponent 2

Proponent 1

Interviews

With

Proponents

Evaluation

Assessment

of Initial

Proposals

Shortlist

Selection of

the two

Shortlisted

Proponents

Volume 1:

Commercial

Proposal

Volume 2:

Technical

Proposal

RFP Process

Document

Overview of RRL

Project & Work

Package

Procurement

Process

Prequalification

Requirements

Electronic Data

Room

Project Scope &

Technical

Requirements

Returnable Schedules

Contract Documents

Reference Material

Preferred

Proponent

Project

Proposal

& TOC

Approved

Project

Proposal

& TOC

Technical and Commercial Workshops

[6 Weeks] [6 Weeks] [19 Weeks] [6 Weeks] [8 Weeks] [6 Weeks]

Prequalification and Initial Proposal Stage Final Proposal Stage Clarification & Due Diligence

Evaluation Approvals

Information submitted

by Shortlisted Proponent

Probity Deed

Execution of ADA and Proposal Bond

Final Proposal

(Returnable

Schedules, TOC,

PAA)

Information submitted

by Shortlisted Proponent

Final Proposal

(Returnable

Schedules, TOC,

PAA)

Initial

Proposal

Contractual structure

Strategies in getting to award

Build a strong team

• Embed from key agencies/industry

• Dynamic structure

Prepare

• Market sounding

• Interactive tender process

Streamline decision making

• Approvals

• Evaluation structure

Focus negotiation

• Validate risk positions

• Leverage

Delivery: governance arrangements

DOT Secretary

CEO

Alliance Leadership Team

Alliance General Manager

Alliance Management Team

Wider Project Team

Delivery: owner’s accountability

• Delineation

• Reserved powers

• Scope changes

• Verification of costs

Observations

• Advance design/geo-tech/site testing as far as possible

• Actively manage scope

• Cross agency collaboration

• Use interim submissions

• Validate and clarify risk allocation

• Early works with AROs to promote confidence

www.regionalraillink.vic.gov.au