Procurement & Contracts

Running head: Procurement & Contracts
Procurement & Contracts

Procurement & Contracts 1
Contents
Introduction.................................................................................................................................................2
Methods of Procurement.............................................................................................................................2
Public Private Partnerships for Procurement...............................................................................................3
Conclusion...................................................................................................................................................4
Referencing.................................................................................................................................................5

Procurement & Contracts 2
Introduction
Public-Private Partnerships have been used for public infrastructure for ten years in the
Australian market. It has proven to be an alternative funding arrangement with regards to the
transportation projects with the help of user pays arrangement (KPMG, 2018).
So, in this project, different ideas of procurement methods would be discussed along with
an intense review of the procurement method of the Public Private Partnership (PPP).
Methods of Procurement
PF2 model of PPP includes the governments acting as a minority equity co-investor in
future projects thereby empowering the partnership between private and public sectors along
increasing transparency. It comprises of a minimum of 18 months of tendering phase of projects
which is measured from the invitation sent for tendering the appointment of the chosen bidder so
that delivery can be accelerated.
The soft services are being removed from the project thereby improving flexibility, the
efficiency of services and transparency. Thus key changes have been made in the PF1 model
which is introduced by PF2. The key features of PF2 are equity structure and enhancement of
credit.
The PF2 mode of PPP helps in accelerating the delivery of project and efficiency of
service provision. It has a more appropriate transfer of risk with greater transparency.
Another mode of procurement model can be a Non-Profit Distributing model (NPD). It is
an alternative funding option for PPP which was earlier been executed as per Private Finance