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?
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.
Not limited to infrastructure, in Queensland, a MLP can cover a broad range of areas including:
The framework sets out a three stage process which proponents will need to navigate through.
1. Initial proposal
1A. Preliminary assessment
2. Detailed proposal
3. Final binding offer
The new framework sets out a non-exhaustive list of nine evaluation criteria which government will consider in assessing a proposal. These principally concern: