FAQs
Q: What are the benefits of a progressive procurement process?
A: 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. While a progressive procurement process requires slightly more time to yield a development contract, the approach is significantly more collaborative between the state and prospective developer and allows for a much more thorough investigation and resolution of issues.
One of the key benefits is that this approach allows the state to transfer more risk to the developer than if we required fixed prices in the proposals submitted in July 2024.
In addition, 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.
While a shorter, traditional procurement process may seem appealing from an initial schedule perspective, this can result in rushed proposals that are ill-conceived or underdeveloped. This is undesirable for all parties and may lead to challenging issues in contract delivery and ongoing operations.
Some of the objectives the state is seeking with the progressive procurement process for the NASED project are ensuring that AHDP has sufficient time to:
- Demonstrate that its proposed stadium and district design supports the state’s vision of a live-work-play-thrive district for NASED.
- Develop, and then rationalize, optimize, and price the best design, construction, operation, and maintenance methodologies.
- Optimize the use of the available state funding.
All of this is designed to get the best combination of price, additional scope for the new Aloha Stadium, and future flexibility of uses within the district for the state in a manner that transfers a sensible amount of risk to the developer. We are looking for a 30+ year contract. Experience tells us that spending extra time in planning at the onset saves us exponentially more time and money in execution.
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