TENDER AND EVALUATION PROCESS FOR CONTESTABLE AUGMENTATIONS
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1 TENDER AND EVALUATION PROCESS FOR CONTESTABLE AUGMENTATIONS PREPARED BY: Transmission Services Department VERSION: 1 RELEASE DATE: 1 July 2010 Au1hol,an Enargy Marla! ap.rotr:w lkl A~N o, NEW SOUTH WAlES QUEENSIANO SOU1H AUSTRAUA VICTORIA AUSTRALIAN CAPl1Al IU RITORY TASMANIA
2 Disclaimer (a) Purpose This document has been prepared by the Australian Energy Market Operator Limited (AEMO) for the purpose of complying with clause (a)(1) of the National Electricity Rules (NER). (b) Supplementary Information This document might also contain information the publication of which is not required by the Rules. Such information is included for information purposes only, does not constitute legal or business advice, and should not be relied on as a substitute for obtaining detailed advice about the National Electricity Law, the Rules, or any other relevant laws, codes, rules, procedures or policies or any aspect of the national electricity market, or the electricity industry. While AEMO has used due care and skill in the production of this document, neither AEMO, nor any of its employees, agents and consultants make any representation or warranty as to the accuracy, reliability, completeness, currency or suitability for particular purposes of the information in this document. (c) Limitation of Liability To the extent permitted by law, AEMO and its advisers, consultants and other contributors to this document (and their respective associated companies, businesses, partners, directors, officers and employees) shall not be liable for any errors, omissions, defects or misrepresentations in the information contained in this document or for any loss or damage suffered by persons who use or rely on this information (including by reason of negligence, negligent misstatement or otherwise). If any law prohibits the exclusion of such liability, AEMO s liability is limited, at AEMO s option, to the re-supply of the information, provided that this limitation is permitted by law and is fair and reasonable. Australian Energy Market Operator Limited All rights reserved. Version 1 1 July 2010 Page 2 of 10
3 Version Release History Version Date By Approved By Changes 1 1 July 2010 Evy Papadopoulos John Howarth This document has been created by the Transmission Services Department and will be reviewed from time to time. Any queries or suggestions for improvement should be addressed to Margarida Pimentel, Senior Manager, Connections & Procurement. Version 1 1 July 2010 Page 3 of 10
4 Contents 1 Introduction Purpose and application Process and typical timeframes Expressions of Interest Register of Interested Persons Invitation to Tender Typical Evaluation Criteria Debriefing Declaration and Management of Conflicts of Interest AEMO Declared Transmission Network Operator Definitions and interpretation Glossary... 9 Version 1 1 July 2010 Page 4 of 10
5 1 Introduction (a) (b) (c) This document is published in accordance with Rule (a)(1). The process outlined in this document may change from time to time in accordance with Rule This document should be read with, and subject to, the National Electricity Law and NER. 2 Purpose and application This document outlines the tender and evaluation process that AEMO will generally follow when procuring the construction and operation of a contestable augmentation. 3 Process and typical timeframes When proposing to procure a contestable augmentation, AEMO will follow the process depicted in the flowchart below, noting that the timeframes depicted in the flowchart are indicative only: Version 1 1 July 2010 Page 5 of 10
6 Flowchart of Process: Issue Request for EOI Timeframe for responses to Request for Expressions of Interest expected to be around 5-10 business days Update register of interested persons Tender period expected to be around 20 business days Issue ITT ITT Closes Evaluate Tenders Period within which tenders expected to be evaluated and terms of Agreements finalised is around 60 business days Is Tender acceptable? No Reject Tender Yes Finalise terms of Agreements with Preferred Tenderer Are Agreements finalised on time? No Finalise terms of Agreements with alternative Tenderer Yes Execute Agreements Notify unsuccessful Tenderers Version 1 1 July 2010 Page 6 of 10
7 3.1 Expressions of Interest From time to time, but usually close to when AEMO is proposing to procure a contestable augmentation, AEMO will issue a Request for Expressions of Interest from persons who may be interested in constructing and operating a proposed contestable augmentation as required by Rule (b)(1). The Request for Expressions of Interest will be substantially in the form shown in Schedule Register of Interested Persons As required by Rule (a)(2), AEMO will maintain a register of persons interested in being contestable providers. The register will be updated with the details of persons expressing interest each time AEMO issues a Request for Expressions of Interest. Interested persons will not be deleted from the register unless they request to be deleted in writing. 3.3 Invitation to Tender AEMO will conduct an open invitation to tender seeking tenders from persons who have the capability to construct and operate a contestable augmentation. This process will be conducted in accordance with an Invitation to Tender document issued by AEMO. The ITT document will cover the following matters: ITT conditions; Details of the contestable augmentation, including where it is to be situated and relevant information about site conditions, details of current usage of the site and, if available, a geotechnical and environmental report on the site, and proposed tenure arrangements; Details of any approvals already obtained and those still required; The functional and other requirements to be met by the contestable augmentation, the services to be provided using the contestable augmentation, and the terms and conditions on which they will be provided; The requirements to be met by any interface arrangements between the contestable augmentation and the shared transmission network; Proposed payment structure for the project and the services; Details of the information to be provided by tenderers in their tenders, such as their background, approach to the delivery of the project, plans, drawings and scope of works, health, safety and environmental record, proposals for fire protection, industrial relations and other site issues, and charges; Evaluation criteria and indicative weightings; and Other issues that are relevant on a case-by-case basis. 3.4 Typical Evaluation Criteria Details of typical evaluation criteria and an indication of the way in which those criteria might be weighed for evaluation purposes are set out below: Version 1 1 July 2010 Page 7 of 10
8 Typical Evaluation Criteria Tenderers capability to provide the contestable augmentation during its construction and operation including details of personnel, resources, maintenance plans, facilities and future serviceability capability Indicative Weighting Tenderers ability to meet milestones and proposed date for practical completion 20% Best value for money, including an evaluation of the total cost of the contestable augmentation plus the cost of any interface works, and the commercial conditions on which the services are to be delivered Working methods and Tenderers track record in the delivery of similar projects, including health and safety, environmental and industrial relations records Tenderers financial stability 10% Any other factors AEMO considers to be relevant 5% 30% 20% 15% 3.5 Debriefing Consistent with the requirement in Rule (a)(1)(v), AEMO will debrief unsuccessful tenderers on request after the tender process has been concluded, and all Agreements have been entered into. Debriefs will be in writing, sent to the person nominated by an unsuccessful tenderer in its request for a debrief and will cover the following issues: Name of successful tenderer; Summary of the evaluation process; In general terms, and without breaching confidentiality, how the unsuccessful tenderer s tender measured up against other tenders; and Assessment of the unsuccessful tenderer s tender against the stated evaluation criteria, including the strengths and weakness of tenderer s tender. AEMO will not enter into any further discussion about the tender process with unsuccessful tenderers and, in particular, will not discuss the details of any other tenderer s tender. 4 Declaration and Management of Conflicts of Interest 4.1 AEMO AEMO staff and contractors engaged in the evaluation of tenders will be required to declare any conflicts of interest prior to commencing the evaluation. 4.2 Declared Transmission Network Operator The nature of the procurement of contestable augmentations is such that AEMO must consult with the incumbent declared transmission system operator on a number of technical and logistical issues. The incumbent declared transmission system operator, however, is also a potential tenderer for the provision of contestable augmentations and AEMO is conscious of the need for probity in the tender process. It is for this reason that AEMO will require assurances from incumbent declared transmission system operators that appropriate ring fencing arrangements will apply to each procurement on a case-by-case basis. Version 1 1 July 2010 Page 8 of 10
9 5 Definitions and interpretation (a) In this document, a word or phrase in this style has the meaning set out opposite that word or phrase in the Glossary. If a word or phrase in this style is not defined in the Glossary, the term has the same meaning as given to that term in the NER. (b) (c) (d) In this document, references to Rule followed by a number refer to provisions in the NER. In this document, unless the context otherwise requires, this document shall be interpreted in accordance with Schedule 2 of the National Electricity Law. If there is any inconsistency between this document and the NER, the NER will prevail to the extent of that inconsistency 6 Glossary Term Request for Expression of Interest or Request for EOI Definition A document substantially in the form contained in Schedule 1. ITT or Invitation to Tender The collection of documents contemplated under clause 3.3. NER National Electricity Rules Version 1 1 July 2010 Page 9 of 10
10 SCHEDULE 1 REQUEST FOR EXPRESSIONS OF INTEREST Procurement of Contestable Augmentation Request for Expressions of Interest AEMO is preparing to release an Invitation to Tender (ITT) for the construction and operation of a new [insert details]. This augmentation has been classified as a contestable augmentation and, therefore, AEMO will run a competitive tender process in accordance with the National Electricity Rules to select the contestable provider for these services. AEMO expects that this ITT will be issued in early [insert date]. AEMO invites persons interested in constructing and operating the proposed augmentation to express their interest by sending an to tenderbox@aemo.com.au. Please note that, under the National Electricity Rules, AEMO is required to publish a register of parties who have expressed an interest in being a contestable provider. In keeping with tender protocols, any queries about this ITT will be addressed once it is issued. Version 1 1 July 2010 Page 10 of 10
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