Market-led proposals – what is the future?

Market-led proposals – what is the future?

The Queensland Government’s new framework for market-led proposals (MLPs) received from private sector proponents has already made a difference. But does it represent a move towards a new era of collaboration between government and the private sector?

Head of Infrastructure and Projects Group, Queensland

KPMG Australia

Contact

Related content

Underneath view of bridge with purple background

The new market-led proposals (MLP) framework, released in July 2015, permits the Queensland government to enter into direct negotiations with a proponent without the requirement for a competitive tender process. So far, the change has seen the Queensland Government reportedly receive over 40 MLPs. This has raised expectations about the potential of the new approach.

But will it deliver effective outcomes for both government and the private sector?

There are obvious challenges and opportunities for success and failure.

MLP frameworks have the potential to generate highly effective outcomes between government and the private sector – as long as the critical success factors are observed for government and private sector proponents, and all parties have realistic expectations.

Insights

  • What the new MLP framework means for the private sector.
  • Comparison of Queensland’s MLP framework to that adopted in New South Wales and Victoria.
  • Critical success factors for government and private sector proponents.

What areas can a MLP cover?

Not limited to infrastructure, in Queensland, a MLP can cover a broad range of areas including:

  • delivery of services to or on behalf of government
  • provision of infrastructure
  • access to government assets
  • access to government information, and
  • otherwise, seeking government support to undertake a specific commercial activity.

The process

The framework sets out a three stage process which proponents will need to navigate through.

    0.    Pre-submission

    1.    Initial proposal

    1A.  Preliminary assessment

    2.    Detailed proposal

    3.    Final binding offer

 

The assessment criteria

The new framework sets out a non-exhaustive list of nine evaluation criteria which government will consider in assessing a proposal. These principally concern:

  • Community need/government priority
  • Value for money
  • Uniqueness/intellectual property
  • Benefit of proponent’s preliminary investment
  • Risk/cost allocation
  • Capacity and capability of the proponent
  • Feasibility
  • Public interest and benefits to government
  • Competing proposals

Deal Advisory

Deal Advisory

KPMG’s integrated team of specialists works at deal speed to help you find and drive value throughout your deal and transformation lifecycle.

Infrastructure

Infrastructure

KPMG's team of infrastructure professionals advise on designing, executing and managing major infrastructure projects and transactions.

Connect with us

 

Request for proposal

 

Submit

KPMG's new digital platform

KPMG's new digital platform