Information is provided on the Early Contractor Involvement Head Contract (ECI-HC) as a delivery method for the Defence Infrastructure Panel – Major Construction.
The ECI-HC can be used for construct only or design and construct. This ECI-HC approach includes the following core elements:
- Early involvement of 2 Head Contractors in the planning phase during which the Head Contractors will separately provide their comments on the design documents prepared by Defence’s Design Consultant.
- The development of high quality design solutions, which are fully consulted, coordinated, properly documented and progressively reviewed at each milestone.
- A targeted focus on securing improved outcomes for the works.
- Flexibility to accommodate digital engineering solutions where appropriate.
- A prioritised commitment to a culture of integrated and interpersonal collaboration, communication and coordination.
Under this delivery model, Defence enters into separate contractual arrangements during the planning phase with 2 Head Contractors.
The planning phase ECI-HC is the first of a possible 2 phase contract engagement on the project with the 2 Head Contractors.
At the end of the planning phase, Defence will make a value for money assessment of certain information submitted by one or both of the Head Contractors. Following assessment, Defence will enter into negotiation with the preferred Head Contractor to seek to agree all outstanding details required for the delivery phase ECI-HC. This includes the delivery phase price and the date(s) for completion of the works (assuming that Defence, in its discretion, wishes to move to the delivery phase).
The successful Head Contractor (if any) will be engaged for the delivery phase under a delivery phase lump sum ECI-HC. This is subject to the terms of the planning phase ECI-HC.
Endorsement to proceed
The Project Officer must obtain endorsement to proceed from an authorised delegate, as required by the relevant Commonwealth agency, before sourcing panel works.
The Project Officer must consider the procurement value, market capacity, Commonwealth procurement rules, procurement policies, evaluation criteria and exercise of delegations requirements.
A Procurement and Evaluation Plan should be used to describe and justify the proposed procurement approach.
For procurements delivered within the Capital Facilities and Infrastructure Branch, it is essential to utilise the Project Development and Delivery Plan (PDDP) Part 2.
Expression of interest letters
The Project Officer may develop expression of interest letters and issue to Panel Contractors to determine if they have the capacity to respond to a request for tender (RFT). This may reduce the amount of documentation required, as a RFT only needs to be developed for interested Panel Contractors.
This letter is particularly suited for more complex or risky projects where Defence wishes to determine which Panel Contractors will have the capacity to undertake large scale or long term work.
The Panel Contractor’s response is not evaluated nor does it constitute a binding agreement.
Expression of interest letter template (DOCX, 48.19 KB)
Disclaimer and confidentiality agreement
The Project Officer prepares and issues a Disclaimer and Confidentiality Agreement to the Panel Contractor(s) who have either responded to the expression of interest letter or have been selected to participate. This must be done before issuing the Tender documents.
Disclaimer and Confidentiality Agreement (DOCX, 84.2 KB)
Prepare Tender documents
Upon receiving a duly executed Disclaimer and Confidentiality Agreement from the Panel Contractor(s), the Project Officer is required to prepare the Tender documents using the provided template.
Note: Part 4 of the Tender documents require the Project Officer to attach the relevant Conditions of Contract that are tailored for the project. Conditions of Contracts for ECI-HC are available on Early Contractor Involvement Head Contract – Two Contractor Planning Phase Approach templates.
Legal Advisors should undertake this task as part of their engagement.
Issue Tender documents
The Project Officer issues the Tender documents to the Panel Contractor, via the emails and/or AusTender provided on the Who to engage and Scope of works page and following this guidance.
Tendering guidance (PDF, 545.22 KB)
Issue addendums or information documents
The Contact Officer may receive questions from tenderers that need to be answered by issuing an addendum or information document. Answers must be shared with all tenderers. The tenderer must be given the opportunity to withdraw their question if they do not want the answer to be shared with all tenderers.
Addendum template (DOCX, 88.24 KB)
Information document example (DOCX, 92.81 KB)
Receiving tender response
The invited Panel Contractors will provide a tender for evaluation or provide notification declining the opportunity to submit a tender. Receipt should be confirmed via return email following this guidance.
Tendering guidance (PDF, 545.22 KB)
Tender evaluation
The evaluation board evaluates all received tenders in accordance with the approved Evaluation Plan and must use these templates.
Tender evaluation and probity protocol (PDF, 1.21 MB)
Conflict of interest declaration template (DOCX, 56.55 KB)
Confidentiality deed template (DOCX, 56.26 KB)
Tender evaluation board report
When the tender evaluation is complete, the evaluation board develops the tender evaluation board report (TEBR) using these templates.
Registration evaluation board report template (DOCX, 100.36 KB)
Tender evaluation board report template (DOCX, 88.43 KB)
Probity report template (DOCX, 40.42 KB)
Negotiations
Following approval of the evaluation through an approved TEBR, these templates should be used as required for negotiations.
The Panel Contractor may be informed (without the Commonwealth accepting, or being taken to have accepted, the tender) that the Commonwealth will negotiate certain or all aspects of their tender.
Negotiation plan template (DOCX, 80.88 KB)
Negotiation outcome report template (DOCX, 70.38 KB)
Section 23 approval
The Project Officer will produce Public Governance, Performance and Accountability (PGPA) section 23 approval in accordance with approved TEBR and contract negotiation outcomes.
PGPA section 23 commitment approval template (DOCX, 65.86 KB)
Issue conditions of contract
The Project Officer, through their Legal Advisor, will prepare the Conditions of Contract.
The Project Officer must issue an unsuccessful tenderer letter to all unsuccessful panellists and provide an opportunity to debrief on the outcome.