The Government has released a revised Market-led Proposals Guideline for assessing proposals from the private sector to deliver a project or service which offers something genuinely unique and of value to Victorians.
A revised Market-led Proposals Guideline was released by Treasurer, Tim Pallas on 18 November 2015.
Government will only pursue proposals that offer something genuinely unique, deliver on Government priorities, provide benefits to the community and provide value to Victorians.
The Guideline identifies priority areas where Government welcomes proposals from the private sector and a new opportunity for innovative ideas to be submitted without the need for a full proposal has also been introduced.
The revisions to the Guideline also address recommendations made by the Victorian Auditor-General in August 2015 to improve the Guideline and assessment process.
The Guideline does not apply to the routine procurement of goods and services as covered under Part 7A of the Financial Management Act 1994.
The Guideline will continue to be administered by the Department of Treasury and Finance (DTF).
Market-led Proposals Guideline
A five stage process will guide the assessment of market-led proposals:
Preliminary assessment of ideas and proposals. A private party submitting a market-led proposal for Government consideration and DTF determining whether it complies with information requirements and is appropriate for consideration under the Guideline.
Stage One: Preliminary assessment of ideas and proposals. A private party submitting a market-led proposal for Government consideration and DTF determining whether it complies with information requirements and is appropriate for consideration under the Guideline.
Stage Two: Strategic assessment and recommendation. The Government conducting a strategic assessment of the merits of the proposal to determine whether the proposal should proceed, and if so whether this should be through a competitive tender process or through an exclusive negotiation.
Stage Three: Detailed due diligence, investment case and procurement preparation. The Government agreeing with the proponent either the terms of the exclusive negotiation or the approach to a competitive tender process.
Stage Four: Negotiation and assessment of final offer. The Government conducting an exclusive negotiation or competitive tender process to develop a final offer for Government consideration.
Stage Five: Award contract. The Government awarding the contract.
DTF will conduct a Stage One assessment and confirm the outcome in writing within 30 days. If progressing DTF will advise the proponent of any additional information requirements and confirm disclosure of relevant information.
At any time, interested parties are able to discuss the Guideline requirements and seek further information from DTF officers responsible for administering the Guideline. These discussions can be via phone call or meeting and can be arranged using the email contact details below.
All parties are strongly encouraged to meet with DTF prior to formally submitting a proposal to discuss key requirements under the Guideline.
Parties should review the Guideline prior to submitting a proposal and have regard to the:
All proposals should be addressed to the Deputy Secretary, Commercial, Department of Treasury and Finance and submitted electronically to:
Stage Three (due diligence, investment case and procurement preparation) and Stage Four (negotiation, development and assessment of final offer).
Proponent: Little Group
The proposal was submitted in January 2016 and was approved to move from Stage Two to a simultaneous Stage Three and Four assessment in October 2016.
Digital Train Radio System Upgrade
Stage Four: negotiation and assessment of final offer
Proponent: Vodafone and Nokia Networks
The proposal to upgrade the existing Digital Train Radio System (DTRS) primarily used by Metro Trains was submitted in April 2015 and was approved to move to Stage Four in November 2016.
The proposal involves installation of a new Long-Term Evolution (LTE) 4G network on VicTrack assets, providing an option for the State to transition to an updated communications system.
The upgraded network will also improve Vodafone’s mobile phone coverage along metropolitan Melbourne’s train lines.
If the proposal is successful, the upgraded network will provide the core components for a future 4G Digital Train Radio System (DTRS), and has the potential to enable other rail network projects to be deployed onto a 4G network.
Both Nokia and Vodafone are uniquely positioned to deliver the proposed DTRS upgrade.
The market-led proposal will be considered in the context of planning for the end of the current DTRS contract which expires in 2018.
Media release: 7 December 2016
Probity Plan for Digital Train Radio System Upgrade (DOCX 371kb)
Victoria Police Centre
Stage Four: negotiation and assessment of final offer
Proponent: Australia Post and Cbus Property
The proposal was submitted in May 2015 and was approved to move to Stage Four in February 2016.
Australia Post and Cbus Property propose to fund and develop a new Victoria Police Centre on land owned by Australia Post at 311 Spencer Street, Melbourne. The proposed site would provide Victoria Police with a consolidated police precinct and connection to the City West Police Complex at 313 Spencer St. It would also provide appropriate security for police headquarters.
Victoria Police would enter a long term lease with the proponents for use of the office complex as police headquarters.
The market-led proposal will be considered in the context of planning for end of lease options as Victoria Police’s current lease at the World Trade Centre expires in 2020.
PC Project Overview Stage 4 (PDF 238kb)
Probity Plan for Victoria Police Centre proposal Stage Three (DOCX 329kb)
Stage Four: Negotiation and assessment of final offer
Proposal submitted in March 2015 to expand capacity on the West Gate Freeway and provide a new connection from the West Gate Freeway to CityLink. Government progressed the proposal to Stage Four in December 2015.
The $5.5 billion Western Distributor Project includes the Monash Freeway Upgrade and upgrades to Webb Dock.
Key features include:
A full business case was released for the Project in October 2015.
The Government will continue negotiations with Transurban at Stage Four, with a view to Transurban presenting a final offer for Government consideration, consistent with the requirements of the Market-led Proposals Guideline.
Stage Four involves negotiation of key commercial, technical and planning issues for the Project with Transurban, commencement of downstream procurement for the Project and ongoing assessment of the Transurban proposal under the Market-led Proposal Guideline.
Government's media release
Transurban's proposal overview
Probity Plan Stage 3 - Western Distributor (DOCX 277kb)
CityLink - Tulla Widening
Finalised: Contract awarded on 6 October 2014 and Financial Close was achieved on 30 April 2015
The CityLink-Tulla Widening project will widen the CityLink and Tullamarine Freeway and introduce a Freeway Management System. It will build capacity, boost performance and improve safety on one of Melbourne's busiest roads.
The CityLink-Tulla Widening project is proceeding under the Market-Led Proposals Interim Guideline and will be self-funded by Transurban. When combined with the widening of the Tullamarine Freeway to Melbourne Airport, which is partly funded by the State and Commonwealth Governments, the total cost of the project is around $1.3 billion. Construction on the project will commence in 2015 and be completed in 2018.
Transurban Project Overview
Cranbourne- Pakenham Rail Corridor project
Finalised – did not progress at Stage Four (March 15)
Proponents: Consortium sponsored by MTR, John Holland Construction and UGL Rail Services
Proposal submitted in October 2013 for an integrated package of infrastructure including trains, maintenance depot, high capacity signalling and level crossings to increase capacity on the Cranbourne- Pakenham rail corridor.
Moolap Saltworks Urban Renewal
Finalised – did not progress at Stage Three (June 15)
Proposal submitted in March 2014 to purchase Crown land and redevelop the former Moolap Saltworks site located in the City of Greater Geelong.
Anchorage on the Sea
Finalised – did not progress to Stage Three (May 2016)
Proponent: Fortan Holdings Pty Ltd
Proposal submitted in September 2015 to build and operate a marina tourist and convention development in Port Phillip Bay.
All questions relating to the Guideline or a potential proposal should be forwarded to:
Deputy Secretary, Commercial
Department of Treasury and Finance
Level 5 / 1 Treasury Place
Melbourne VIC 3002