Public Procurement for Infrastructure

Public Procurement for Infrastructure

Euromoney Training
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This course forms module 1 of the Public Procurement for Infrastructure & Understanding PPP: Improving Delivery & Value for Money Training Week. Attend both modules to save 15% on the combined price. All PPP infrastructure projects originate from within the public sector. The definition of public procurement covers both conventionally funded contracts and more innovative types of procurement such as Public Private Partnerships (PPP) and Private Finance Initiatives (PFI).The procurement process spans the whole life cycle of the procurement from conception and definition of need through to the end of the useful life of an asset or the end of a contract. It includes pre-contract activities such…

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Didn't find what you were looking for? See also: Contract Management, Procurement, Relationship Management, General Management, and Retail (Management).

This course forms module 1 of the Public Procurement for Infrastructure & Understanding PPP: Improving Delivery & Value for Money Training Week. Attend both modules to save 15% on the combined price. All PPP infrastructure projects originate from within the public sector. The definition of public procurement covers both conventionally funded contracts and more innovative types of procurement such as Public Private Partnerships (PPP) and Private Finance Initiatives (PFI).The procurement process spans the whole life cycle of the procurement from conception and definition of need through to the end of the useful life of an asset or the end of a contract. It includes pre-contract activities such as market sounding, sourcing and post contract activities such as contract management and supplier relationship management activities. Public procurement is regulated in many countries and overseen by public procurement agencies. For example, throughout the European Union (EU) procurement is regulated through the provisions of the Treaty on the Functioning of the European Union (TFEU, formerly known as the EC Treaty) and the EC Directives. Best practice public procurement is subject to; inter alia, the following principles of: Freedom of movement of goods Freedom of establishment Freedom to provide services and the principles derived from these such as: Equal treatment Non-discrimination Mutual recognition Proportionality Transparency Legislative and policy framework Best value for money is the bedrock of procurement policy and can be defined as, 'the most advantageous combination of cost, quality and sustainability to meet customer requirements'. The purpose of this training is to guide participants through the key stages of a typical conventional and PPP public procurement process. Procurement process means how an authority decides to whom it will award the contract for the works, services and/or supplies required by the authority. Course objectives In this programme the delegates will gain the knowledge and business acumen on the following key areas: Stages in the Public Procurement of PPP projects Legislation covering Public Procurement How Authorities can generate and maximise market interest in their PPP project Key issues Authorities should consider at each stage of the process How Authorities can get the best outcome from each stage of the process How to avoid common procurement pitfalls Promoting PPP opportunities amongst potential investors Infrastructure needs analysis Skills in the development of strategic service models Project funding versus project financing – matching needs to affordability Investment decision making - best practice business case approval methodology Who should attend? Public Sector Senior Officials and Investment Decision Makers Public Sector Planners Policy Development Directors Government and Public Service Officers Project Financiers/Investors Contractors Facilities Management Companies Utilities Commercial Banks Project Law Firms Financial Advisors Environmental Consultants Development Agencies Programme objectives By the end of programme delegates will be able to understand: Principles of Public Procurement Strategic service modelling Project appraisal Project finance/project funding PPP structures Project preparation and Value for Money Successful procurement and delivery, including the use of PPP Post contract / Operational aspects of infrastructure projects Training methodology This programme is designed to encourage delegate participation through a combination of group discussion, video, site visits, practical exercises and case studies.
Day 1 Framework for Public Sector Infrastructure Procurement General introduction to public procurement and the various stages that the public sector completes prior to the award of contract. The process begins with the development of a strategic service model and prioritisation of projects. Development of the strategic service model Prioritisation of projects to be delivered and agreement to the strategic implementation plan and strategic investment plan Business case development Strategic context Need for expenditure Objectives and constraints Describe the options Quantify the monetary costs and benefits of each option Assess risks and adjust for optimism bias Non-monetary costs and benefits Net Present Values and sensitivity analysis Affordability Preferred option Where utilising PPP and the procurement method assessment of the following three criteria are also a basic appraisal requirement: Additionality Viability Cost-effectiveness Funding mechanism Private sector capital or public sector funding – project funding versus project finance Procurement methodology Open Restricted Negotiated Competitive dialogue Pre- procurement Prior Information Notice Soft market testing Project advertisement Information memorandum Bidder conference Case study: Market testing When developing a PPP project it is important to appraise the market of your intentions and to understand the level of interest there may be from potential bidders. A good way of generating interest in a PPP Project is through the use of 'soft market testing' (SMT) or market sounding questionnaire. Participants will break into small groups and discuss the types of questions that would be included in a SMT. A worked up sample of a SMT questionnaire will be used to aid discussions when the group work has been completed. Day 2 Infrastructure Procurement and Contract Management Day two will begin with a recap of the structure for the procurement of a public asset. Complex projects (hospitals, primary care facilities, waste, energy, etc. tend to have unique features, so there is no standard way in which the procurement discussion/dialogue procedure should be undertaken. Authorities will need to structure the procurement process in a way that ensures their objectives can be met efficiently and effectively. The following documentation used in completed PPP procurements will be made available to participants: Pre-qualifying questionnaire Memorandum of understanding Invitation to participate in dialogue Lease/contract agreement Procurement Planning and initial preparation Official journal of the European Union (OJEU) Pre-qualification (PQQ) Selection of bidders and preparation for the dialogue stage Invitation to Participate in Dialogue (ITPD) Dialogue phase Final tenders Appointment of preferred bidder and clarifications Contract award Contract/lease Definitions Agreement for lease Lease term Lease expiry Hard/soft facilities management Payment mechanism Services specification Schedule of accommodation Service payments Deductions Unavailability events Non- performance events Case study: Payment mechanism Participants will be issued with a bespoke payment mechanism and engage in discussion on the components of the mechanism for the DBFM project. Operation and contract management Roles and responsibilities Course summary and close
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