National Alliance Contracting Guidelines - Guide To .
National AllianceContracting GuidelinesGuide to Alliance ContractingSeptember 2015
National AllianceContracting GuidelinesGuide to Alliance ContractingSeptember 2015
Document UpdatesThis Guide will be updated from time to time to reflect evolving best practices and lessons learned.Document changeDateExposure Draft published by the Department of Treasury and Finance (Victoria) for comment16 July 2010Final version published by the Department of Treasury and Finance (Victoria)25 October 2010National Guide published (with a refresh and update of the 25 October 2010 publication)July 2011Updated in response to the Productivity Commission Report No 71 of May 2014September 2015 Commonwealth of Australia 2015ISBN 978-1-925216-66-0September 2015/INFRA2602Ownership of intellectual property rights in this publicationUnless otherwise noted, copyright (and any other intellectual property rights, if any) in this publication is owned by the Commonwealth of Australia(referred to below as the Commonwealth).DisclaimerThe material contained in this publication is made available on the understanding that the Commonwealth is not providing professional advice, and thatusers exercise their own skill and care with respect to its use, and seek independent advice if necessary.The Commonwealth makes no representations or warranties as to the contents or accuracy of the information contained in this publication. To the extentpermitted by law, the Commonwealth disclaims liability to any person or organisation in respect of anything done, or omitted to be done, in reliance uponinformation contained in this publication.Creative Commons licenceWith the exception of (a) the Coat of Arms; (b) the Department of Infrastructure and Regional Development’s photos and graphics, copyright in thispublication is licensed under a Creative Commons Attribution 3.0 Australia Licence.Creative Commons Attribution 3.0 Australia Licence is a standard form licence agreement that allows you to copy, communicate and adapt thispublication provided that you attribute the work to the Commonwealth and abide by the other licence terms.A summary of the licence terms is available from .en.The full licence terms are available from lcode.This publication should be attributed in the following way: Commonwealth of Australia 2015, National Alliance Contracting Guidelines – Guide toAlliance ContractingUse of the Coat of ArmsThe Department of the Prime Minister and Cabinet sets the terms under which the Coat of Arms is used. Please refer to the Department’s CommonwealthCoat of Arms and Government Branding web page es/guidelines-and-procedures-other-agenciesand in particular, the Commonwealth Coat of Arms Information and Guidelines publication.Contact usThis publication is available in PDF format. All other rights are reserved, including in relation to any Departmental logos or trade marks which may exist.For enquiries regarding the licence and any use of this publication, please contact:Director - Publishing and Communications, Communications BranchDepartment of Infrastructure and Regional DevelopmentGPO Box 594, Canberra ACT 2601 AustraliaEmail: publishing@infrastructure.gov.auWebsite: www.infrastructure.gov.auNoteGovernments in each jurisdiction will have their own individual approval processes for capital investment projects, as well as policies (e.g. probity) andlegislation that will impact on all capital works delivery. These over-arching jurisdictional requirements are precedent to the alliance practices covered inthis document.AcknowledgementThis Guidance Note is based on the guidance note of the same name prepared under the sponsorship of the Inter-Jurisdictional Alliancing SteeringCommittee with membership from: Department of Treasury and Finance, Victoria (Chair) Treasury, New South Wales Treasury, Queensland Department of Treasury and Finance, Western Australia Department of Infrastructure and Regional Development, Australian GovernmentThe production of the Guide was led by the Department of Treasury and Finance Victoria, with the assistance of Evans and Peck Pty Ltd, Level 2, 555Coronation Drive Toowong, Queensland 4066
CONTENTSChapter 1: Introduction to the Guide . 11.1Purpose of the Guide . 11.2Who should use this Guide . 21.3Structure of the Guide . 31.4How and when to use the Guide . 41.5Relationship with the Policy Principles for Alliance Contracting andGuidance Notes . 51.6Updates to the Guide . 6PART ONE: Overview of alliance contracting . 7Chapter 2: Introduction to alliancing . 92.1What is an alliance? . 92.2Differences between alliance contracting and traditional contracting . 242.3Evolution of alliancing. 252.4Key roles in an alliance . 292.5The value proposition: key benefits, risks and trade-offs of alliancecontracting . 312.6Project alliancing and program alliancing . 352.7The fundamentals of Government Procurement . 36Chapter 3: Choosing alliancing as a delivery method . 393.1Projects most suited to alliancing . 39PART TWO: Overview of the development andimplementation of alliance contracts . 45Chapter 4: Developing an alliance project . 474.1Understand the commercial environment . 484.2Develop the Commercial Framework . 494.3The generic Commercial Framework . 504.4Changes to the Commercial Framework . 614.5Caps on Risk or Reward . 614.6Tailor a Commercial Framework to the Owner’s project . 634.7Develop the PAA . 654.8Define and plan the Owner’s resources . 664.9Specialist advisers . 704.10 Delivery phase resources . 744.11 Prepare resources for their roles . 774.12 Best use of specialist advisers’ professional services . 77i
Chapter 5: Selecting the Non-Owner Participants . 815.1Alliance success dynamics . 815.2Tailoring the selection process . 835.3The tender selection criteria. 845.4Comparison of selection options . 895.5Other considerations. 94Chapter 6: The Project Delivery Phase . 996.1Effective governance – external and internal to the alliance. 1006.2Good project management and project controls . 1026.3Expenditure of public funds . 1026.4Adjustment Events . 1036.5Rewarding outstanding outcomes . 1046.6No blame, no dispute. 1046.7Progressive Status Reports. 1056.8Project close-out. 105Chapter 7: Learnings . 1077.1Business Case – Insights . 1077.2Procurement Strategy – Insights . 1087.3Selecting the NOPs – Insights. 1087.4Agreeing the commercial arrangements – Insights . 1097.5Project delivery – Insights . 110Chapter 8: Glossary and Acronyms . 1118.1Glossary . 1118.2Acronyms . 113Chapter 9: Bibliography . 115AppendicesA.Developing a Governance PlanB.Developing a Governance Plan external to allianceC.NOP selection processesD.Commercial Framework—Indicative Risk or Reward RegimesE.Risk or Reward for cost and non-cost performance: workedexamples.iiGuide to Alliance Contracting
1Chapter 1:Introduction to theGuideThis Chapter outlines the purpose and structure of the Guide and describesthe relationship of this document to other relevant government policydocuments and guidelines.1.1Purpose of the GuideThis Guide to Alliance Contracting (‘the Guide’) has been prepared to provideconsistent and leading practice guidance on alliance contracting to public sectoragencies that develop and own infrastructure projects (‘Owners’).This Guide reflects insights from government1 and industry which have beengained from significant experience over recent years, including 30 billion worthof public sector alliances that have either been completed or are currently beingplanned or implemented across Australia. The Guide draws upon learning fromthe many projects, which are now complete, and were procured using alliancecontracting, and upon the findings and recommendations set out in the report InPursuit of Additional Value.2Benefits of alliancingAlliancing has evolved to become a broadly accepted procurement and deliverymethod, which has been used to successfully deliver many risky and complexprojects. Under an alliance contract, the Owner and the Non Owner Participants(NOPs) work together to collaboratively determine the best project solution anddeliver the project.Unless otherwise stated, the expression ‘government’ is used to denote all the government entities ofAustralia, which include the Commonwealth of Australia and all Australian state governments andterritories.2 Released by the Department of Treasury and Finance, Victoria, Australia in October 2009.1Chapter 1 Introduction to the Guide1
The Guide has been prepared to: provide the minimum conditions for Owners in order to comply with theNational Alliance Contracting: Policy Principles (‘Policy’)3 when deliveringalliance projects; provide guidance to public officials undertaking the planning and delivery ofalliance projects to enhance Value-for-Money (VfM) outcomes forgovernments; and improve the quality, consistency and commercial outcomes of governmentalliance projects.This Guide has been developed recognising that alliance contracting: should comply with all relevant overarching jurisdictional policies andprinciples that generally regulate public sector procurement; is a complex commercial transaction and, accordingly, Owners should applygood commercial practices to the selection, development, procurement andimplementation of alliance contracts; and is now a mature procurement and delivery method for Owners, and hasbecome a ‘business-as-usual’ option for delivering infrastructure projects, i.e.,alliancing is no longer a pioneering, unique or novel approach to projectdelivery.The Guide does not address issues related to the jurisdictional processes thatapply to an approval of a project, or the process for the Owner’s assessment ofalternative procurement strategy options as part of the Business Case. There areother (overarching and general) government policies and guidelines that coverthese matters.1.2Who should use this GuideThis Guide is intended to provide guidance to public officials who are involvedin delivering projects through alliance contracting.Other parties who may find it useful include: firms that supply professional advisory services to Owners and public sectoralliances; and contractors or other suppliers that tender for alliance contracts in theinfrastructure sector.The Guide should be used as a road map to navigate the practical realities ofalliance contracting; it outlines successful and proven practices in alliancecontracting, and incorporates insights from recent research4 and experienced34The National Alliance Contracting: Policy Principles, published by the Commonwealth Department ofInfrastructure and Regional Development, April 2011.In Pursuit of Additional Value – A benchmarking study into alliancing in the Australian Public Sector, DTF Victoria,October 2009.2Guide to Alliance Contracting
Participants. The Guide will assist Owners with the practical application ofalliancing theory and policy, and to successfully select, develop, procure anddeliver their alliance project in accordance with Government policies andprinciples.1.3Structure of the GuideThe remainder of the Guide is structured as follows: Part One—Chapters 2 and 3—provides an overview of alliance contracting. Itoutlines the theories and key features of alliancing, and identifies thecharacteristics that will make a project suitable for delivery as an alliance. Part Two—Chapters 4, 5, 6 and 7—provides detailed information andpractical guidance on the development, procurement and implementation ofalliance contracting from the point following the government’s investmentdecision to deliver the project as an alliance, through to the end of the alliancecontract term. It identifies a range of specific issues, risks and opportunitiesthat are likely to arise during the lifecycle of the project and providesguidance on how to address these. Appendices: A—E: Developing a Governance Plan; Developing aGovernance Plan external to alliance; NOP selection processes; CommercialFramework—Indicative Risk or Reward Regimes; Risk or Reward for costand non-cost performance: worked examples. These Appendices providefurther detail on each of these topics. Models and examples have beenincluded; however, agencies should use these as examples only and tailor thecontent to suit their particular project.Key points are highlighted by five types of text boxes:Deep blueOverview of chapterLight blueAlliancing essentialsLight greenA key alliancing featureYellowCommercial realitiesOrangeWorking with the commercial realitiesChapter 1 Introduction to the Guide3
1.4How and when to use the GuideThis Guide has been written on the basis that Owners refer to other general (nonalliance specific) government policies and guidelines applying to procurementplanning, infrastructure delivery and government decision making. In relation toalliance specific documentation, Owners should refer to the alliancing Policy,Guidance Notes and Templates5 in addition to the Guide. Figure 1.1 illustratesthe wider context of documentation and indicates when to use the Guide in thehierarchy of planning and delivery steps in a project alliance.ALL MAJOR INVESTMENTPROPOSALS (& PROJECTS)The Business CaseALLIANCE CONTRACTINGPre-tender PlanningTheTenderProcessPROJECT PLANNING ANDDELIVERY STAGES(best way to structure the Alliance)The InvestmentProposalProcurementStrategy The proposedservice benefit tothe community The cost ofrealising theservice benefit D then C D&C Cost plus Alliancing Managing Contractor PPP ECI DCM etc(ie the BusinessCase analyses anddocuments theVfM proposition)(ie the Business Caseanalyses andrecommends the bestway to realise thecapital assets requiredto enable the servicebenefits)Plan and prepare:ProjectDeliveryTheProjectOutcome1. The Owner’s VfM Statement1.1 From the Business Case? Government policy context? Policy objectives? Functional/Performance/otherrequirements & specifications? identified risks? base cost estimates1.2 Corporate Requirements? Governance framework? applicable regulations and corporateproject standards etc2. Commercial framework3. Legal framework (ADA and PAA)4. etcPolicy Principles for alliance contractingAPPROVALSPOLICIES &GUIDELINESOver-arching jurisdictionalpolicies and guidelines onBusiness case developmentand documentationGuidanceNoteNo 4Guide to Alliance ContractingOtherGuidanceNotesNoTemplates 1 to 4(PAA, ADA, EOI, RFP)Guidance Note No 5Approvals by Owner andgovernment to releasetenderdocumentationApprovals by Ownersand governments ofbusiness case andresource supportNoApprovals by Ownerandgovernment toaccepttender proposalsProgressreportsto OwnerFigure 1.1: Hierarchy of planning and delivery steps in a project allianceAs shown above, the Guide (and the Guidance Notes and Templates) appliesonce an Owner has approval to deliver a project as an alliance (however, Chapter3 of this Guide provides additional advice, which supplements general BusinessCase policies/guidelines, on the selection of alliancing as the preferredprocurement strategy).In some circumstances, it may be appropriate to depart from the processes set outin this Guide. Each Owner always has the flexibility to determine and54Published on the Departmentwww.infrastructure.gov.auofGuide to Alliance site:Report backbyOwner togovernmentonoutcomes
recommend processes which are efficient, ‘fit-for-purpose’ and best suited toachieving VfM outcomes for their specific project.6The Guide has been prepared on the basis that when Owners undertake alliancecontracting, they: are familiar with all relevant Acts and their jurisdictional policies andguidelines (whether alliance specific or otherwise); understand the practical challenges of prevailing market conditions thatimpact public sector infrastructure projects; and will call on specialist professional service providers (such as cost estimators,legal and commercial advisers), sourced
2 Guide to Alliance Contracting The Guide has been prepared to: provide the minimum conditions for Owners in order to comply with the National Alliance Contracting: Policy Principles (‘Policy’)3 when delivering alliance projects; provide guidance to public officials undertaking the planning and delivery of alliance projects to enhance Value-for-Money (VfM) outcomes for
B- La Bible est l'alliance de Dieu avec les humains, composée d'une Ancienne Alliance et d'une Nouvelle Alliance. C- L'Ancienne Alliance est dévoilée dans le Nouveau Testament. Le Nouveau Testament est caché dans l'Ancienne Alliance. L'Ancienne Alliance contient des types et des ombres du Nouveau Testament.
Chapter 3 Flawless Consulting 37 Being Authentic 37 Completing the Requirements of Each Phase 41 Results 47 Chapter 4 Contracting Overview 53 Contracting—The Concept and the Skill 54 Contracting Skills 58 Elements of a Contract 59 Checklist #2. Analyzing One of Your Contracts 67 Ground Rules for Contracting 67
Figure 8.1 Organization of Chapter 8 Concept of efficient contracting Sources of demand for efficient contracting Accounting policies for efficient contracting Contract rigidity Employee stock options Contract efficiency versus opportunism Implicit contracts, non-cooperative games M08_SCOT4669_07_SE_C08.indd 293 10/12/13 4:58 PM
Q: Is Direct Contracting an Advanced Alternative Payment Model (APM)? Direct Contracting will be an Advanced APM starting in performance year (PY) 1 (April 1 –December 31, 2021). 5 . 10. Q: How does Direct Contracting differ from Medicare Advantage?
Office of Contracting and Procurement Office of Contracting and Procurement Washington, DC 20003 55 M Street, SE, 7th Floor Office of Contracting and Procurement Bid Room 10. For Information Contact X PART I - THE SCHEDULE 1 X 5 Packaging and Marking Contract Administration Data X 10 Cale
Army Contracting Command UNCLASSIFIED Expeditionary · Responsive · Innovative . 8 . Partnering Credit Cards E-Commerce/Paperless Contracting ALPHA Contracting Alternative Disputes Resolution Use of Ordering Officers Long Term IDIQ Contracts Best Value .
_ Copy of 2016 AHIP ***An agent certification test is required. Arrangements will be made through Insurance Company for the test after initial review of contracting. Please email completed paperwork to: contracting@gatewaystrategies.org or Fax to: 412 921-6950 . If you have any questions, please call 412 921-6900 and ask for contracting .
Design Standards for Accessible Railway Stations Version 04 – Valid from 20 March 2015 A joint Code of Practice by the Department for Transport and Transport Scotland March 2015 . OGI. Although this report was commissioned by the Department for Transport (DfT), the fndings and recommendations are those of the authors and do not necessarily represent the views of the DfT. The information or .
