FAQs
Q: How will the state ensure value for money with only one offeror?
A: NASED is being procured via a "progressive" procurement approach. This means that the state will select a single preferred offeror based on the best proposal and then, over the following nine (9) months’ diligence and discussion phase, resolve a range of technical and other matters and negotiate and sign the relevant agreements.
A progressive procurement was selected given the complexity of NASED and the broad range of issues that the state is only able to resolve with a prospective developer. This approach allows the state to transfer more risk to the developer than if we required fixed prices in the proposals submitted in July.
In addition, proposals (due in July) are required to include commitments to certain elements of the NASED project (e.g., stadium quality and scope). These commitments will need to be maintained by the preferred offeror through the diligence and discussion phase. If a commitment is broken, the state can open negotiation on other commercial terms or cancel the process.
The RFP and the diligence and discussion phase clearly define the standards to be met (i) before a preferred offeror is selected, and (ii) before agreements are awarded and signed. These standards reflect value for money for the state. The withdrawal of one priority-listed offeror does not alter these standards. If anything, it drives that the state be even more vigilant to ensure these standards are met.
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