eoi assignment - bendigo hospital

Disclaimer: This document was adapted from the EOI calls for: RWH and PCCC This doc has been prepared purely for educational purposes by Dr Guillermo Aranda-Mena [02.05.11]

Expression of Interest [EOI] Message from the Minister for Health and the Minister for Innovation The Bendigo Hospital Project Bendigo Health welcomed the announcement and the commitment of $473 million in the 2010 state budget to build a new hospital. When completed, the half a billion dollar project will meet community needs and expectations, provide the right care in the right place at the right time and ensure a sustainable health service into the future. The funding will result in a stronger, healthier community enabling our hospital to remain an important part of this city and the region.Partnerships Victoria framework. We welcome your interest in working in partnership with us to deliver this exciting and unique new facility.

Vision When the new Bendigo hospital is commissioned in 2016, Bendigo Health will be a worldclass regional health service in an integrated academic precinct. It will be in the top three of comparable health services across Australia in terms of every key performance indicator including access, quality and efficiency. The community in Bendigo and beyond will have pride in their local regional health service and


confidence in the ability of Bendigo Health to meet their needs. Patients and staff will experience the new Bendigo hospital as a tranquil and caring environment. Staff will be attracted to work in the new Bendigo hospital by the commitment to ongoing learning and innovation in a 21st century environment. The new Bendigo hospital will welcome visitors with convenient parking and comfortable facilities. The new Bendigo hospital will be sustainable, energy-efficient and future-ready. Bendigo Health will partner effectively with other health services in the region and beyond to ensure continuity of care and local delivery of treatment where possible. Information on Bendigo Health services will be readily available to reassure patients and their families. Modern technologies will support treatment and recuperation at home where possible. Bendigo Health will achieve this vision through:

• Committing to the realisation of this vision through policy decisions, operational plans and planning for the new Bendigo hospital

• Effective engagement of staff and the community in developing and implementing the vision

• The Department of Health (“DH”), in consultation with the Department of Innovation, The Government’s investment in the new Bendigo hospital project

• Partnering with the Department of Health to deliver the benefits of the new Bendigo hospital project

• Changing policies and processes to make the most of the opportunity of the new Bendigo hospital project

• Working collaboratively with its academic partners to attract students, develop staff and grow research capability

• Engaging with other health services in the Loddon Mallee region to build links to support continuity of care and enhance local capability

• Working constructively with the City of Greater Bendigo on matters of mutual interest to ensure the best outcomes for the Bendigo community.

Important Notice Industry and Regional Development (DIIRD) and Project Partners, has prepared this Invitation for Expression of Interest (“Invitation for EOI”) to provide information on the Project to interested parties and prospective Respondents. Whilst DH (ie. read as GAM&VD) has taken care in the preparation of the information contained or referred to in this document and believes it to be accurate, none of the State (including DH) or any of their respective officers, employees, agents or advisers or where relevant, authorities or agencies (collectively "State Participants"), gives any warranty or makes any representations, expressed or implied, as to the truth, completeness or accuracy of the information contained or referred to in this document or any information which may be provided in connection with it. The State expressly disclaims any and all liability relating to or resulting from the use of such information by any Respondent Member or other third party in the preparation of a Proposal.


None of the information contained or referred to in this Invitation for EOI or any other information provided by any State Participant is intended to be exhaustive. Interested parties are required to make their own enquiries and Respondents will be required to confirm in writing that they have done so and that they do not rely at all upon the information in or referred to in this Invitation for EOI in submitting their Proposal. The information is provided on the basis that it is not binding upon any of the State Participants. The State reserves the right in its absolute discretion to: › not proceed with the Project or the Tender Process › alter the timetable reflected in this Invitation for EOI › change the process or procedures to be applied (including during the Tender Process) › not shortlist any Respondent › terminate further participation in the Tender Process by any party or decline to discuss the Project further with any party expressing interest, and › cancel, supplement, vary or supersede this Invitation for EOI or any matter set out in it. The State Participants will not, under any circumstances, be responsible for any costs or expenses incurred by any Respondent Member or any other third party (or any of their respective officers, employees, agents, affiliates or advisers) in the preparation and lodgement of a Proposal (June 02 – refer to 6.2 Lodgment Details).

Interested parties and prospective Respondents should review the General Terms and Conditions applicable to the EOI Phase as contained in Section 7 of this Invitation for EOI.


Contents Message from the Minister for Health and the Minister for Innovation Important Notice Contents Glossary 1. Introduction 1.1 The opportunity 1.2 Purpose of the Invitation for Expressions of Interest 1.3 Role of the Project SPV 1.4 Procurement process 2. Project background and objectives 2.1 The Project 2.2 Background 2.3 Project Vision, Objectives and Benefits 2.4 Policy context 2.5 The Victorian health system 2.6 A New hospital for Victoria 2.7 Bendigo Hospital a collaborative effort 2.8 Project Partners 2.9 Project governance 2.10 Philanthropic donations 2.11 Architectural and urban design outcome 2.12 Environmentally sustainable design 2.13 Building and site management 3. Project scope and commercial framework 3.1 Project overview and scope 3.2 Scope of Works – inc Construction and Logistics 3.3 Scope of services 3.4 Equipment 3.5 Commercial opportunities 3.6 Contractual framework 3.7 Commercial principles 3.8 Whole of life and partnering approach 3.9 Financing 4. Procurement approach 4.1 National PPP Guidelines and Partnerships Victoria 4.2 Tender Process 4.3 Public Sector Comparator


4.4 Discount Rate Methodology 4.5 Procurement resources and advisers 4.6 Victorian Industry Participation Policy 4.7 Terms and Conditions of Commonwealth funding 5. Evaluation of proposals 5.1 Evaluation methodology 5.2 Evaluation criteria 6. Requirements for submissions 6.1 Submission requirements 6.2 Lodgment Details 7. General terms and conditions 7.1 Communications 7.2 Clarification process 7.3 Discussions with key stakeholders 7.4 No Legal Relationship 7.5 Confidentiality and proprietary information 7.6 Variations to this Invitation for EOI 7.7 Collusive tendering 7.8 Related Parties 7.9 Probity 7.10 Probity Practitioner 7.11 Change in circumstance 7.12 Freedom of Information 7.13 Disclaimer 7.14 Costs of preparation of proposals 7.15 Evaluation process 7.16 Reliance on information 7.17 Conflict of interest 7.18 Probity checks 7.19 Addenda 7.20 Probity and Process Deed 7.21 Other rights Appendix A: Additional information Appendix B: Information to be provided by Respondents Appendix C: Related Party Probity Principles Appendix D: Confirmation letter


Glossary Term Description BP Building Partners CSSD Central Sterilising Supply Department ConfirmationLetter: The letter in the form of Appendix D Consortium: Those private sector persons who together intend to deliver a PPP Consortium Member: Those persons who make up a consortium DDO Design and Development Overlay DIIRD Department of Innovation, Industry and Regional Development DH or Department. The Department of Health DMU Day Medical Unit DPC The Department of Premier and Cabinet DSU Day Surgery Unit DTF The Department of Treasury and Finance DRM Discount Rate Methodology Discount Rate Methodology, as defined in the National PPP Guidelines Volume 5: Discount Rate Methodology Guidance ED Emergency Department EOI Expression of Interest EOI Phase The phase of the Project described in Section 1.4.2 ESD Ecologically Sustainable Development EC Evaluation Criteria: The criteria for evaluating Proposals as listed in Section 5 FOI Act The Freedom of Information Act 1982 (Vic) GTC General Terms and Conditions: General Terms and Conditions as described in Section 7 GBA Gross Building Area GDA Gross Departmental Area HDU High Dependency Unit Initiation for EOI: Invitations for Expressions of Interest ICS Integrated Health Service(s) ICU Intensive Care Unit MH Melbourne Health NCP Negotiation and Completion Phase. The phase of the Project described as such in Section 1.4.2 NHMRC National Health and Medical Research Council FM Facility Management Encompassing all physical elements of the Project i.e. Both the North and South Sides, and any linkages PV Partnerships Victoria SPV Special Purpose Vehicle Framework The Victorian Governments Partnerships Victoria Policy (2000) and the Partnerships Victoria framework that require compliance with both the National PPP Guidelines and the Partnerships Victoria Requirements


Term Description Partnerships Victoria Requirements: The set of specific guidance applicable to Victoria that is to read in conjunction with the National PPP Guidelines. Project or Bendigo Hospital Project: The design, build, commissioning and financing of the Bendigo Hospital Facility and the delivery of the required services at Bendigo Hospital. The Short Listed Respondent selected to negotiate the terms of the Project Agreement with a view to becoming the Project Special Purpose Vehicle [SPV] also referred as Operaing Company [Co]. Probity Practitioner: As described in Section 7.10 Project Agreement: The primary agreement between the State and Project SPV to implement the Project as outlined in section 3.7.2 Project SPV: The private sector counterparty to the Project Agreement and other relevant Project Documentation Project Director: The person with overall responsibility to the State for delivery of the Project and management of all members of the Project Team. Identified as the Project Director in Section 7.1 (and any person appointed by the State to replace that person) Project Vision and Objectives: The State’s Vision and Objectives for the Project as defined in Section 2.3 Project Partners: The partners in the Bendigo Hospital project are Peter Mac, Melbourne Health, Ludwig Institute for Health Research, the Walter and Eliza Hall Institute of Medical Research, the Royal Women’s Hospital and the University of Melbourne Project Period: The period from commercial acceptance to the end of the term as defined in Section 3.7.1 Project Scope: The scope of works and services outlined in Section 3.1 Proposal Responses to this Invitation for EOI submitted by a Respondent PSC The Public Sector Comparator for a project, defined in the National PPP Guidelines as the hypothetical risk adjusted whole of life cost of a public sector project if delivered by Government PPP Public Private Partnership Reference Project The basis for calculating the PSC, reflecting State Government delivery of the Project by traditional means. Related Party Has the meaning given to the expression ‘related entity’ by Section 9 of the Corporations Act 2001(Cth) and includes any ‘associate’ (as defined by Sections 10 to 17 of the Corporations Act 2001 (Cth) of a person Respondent: A person, other legal entity or body corporate who, either in their own right or on behalf of a proposed or established consortium submits a proposal in response to (and in accordance with) this Invitation for EOI Respondent Members: A person or other legal entity, their Related Parties and their respective officers, employees, agents, advisers and technical consultants, who, together with other persons or legal entities, makes up a Respondent which intends to form a Consortium to deliver the Project Responsible Entity. The Consortium that will ultimately accept the risk of Project delivery. This is expected to include the head contractor for design and construction and the facilities management provider and/or the head contractor and/or major sub-contractors for service delivery RFP Request for Proposal RFP Phase The phase of the Project described as such in Section 1.4.2 RFP Response Proposals submitted by Short Listed Respondents as part of the RFP Phase RMH the Royal Melbourne Hospital RWH the Royal Women’s Hospital Short Listed Respondent Any Respondent who is invited by DH to participate in the RFP Phase of the Tender Process


Site The proposed site for the new Bendigo Hospital as indicated in Figure 3 and Appendix E State The State Government of Victoria, its agencies and related parties State Participants The State and its representative officers, employees, agents, advisors and, where relevant, their appropriate authorities and agencies Tender Process The procurement process for the delivery of the Project comprising phases as dedicated in Section 4.2 VFM Value for Money VIPP Victorian Industry Participation Policy, including any policy or requirement developed pursuant to the Victorian Industry Participation Policy Act 2003 VCAP Victoria’s Health Action Plan (2008-2011) WCMICS Western and Central Melbourne Integrated Health Service WEHI The Walter and Eliza Hall Institute of Medical Research


1. Introduction 1.1 The opportunity The Bendigo Hospital Project provides the opportunity to develop Australia’s first patient centered health service. The outcomes of health care for patients in Australia are among the best in the world. However, much more can be done in improving services, detecting illness earlier, and providing better treatment options. Comprehensive health centres and hospitals bring together specialist clinical healthcare and research to drive new discoveries in health and translate these findings into better patient care. The Bendigo Hospital will be a world-class comprehensive healthcare facility that is patient-centric. The Bendigo Hospital Project provides the opportunity for the public and private sectors to collaborate in the development and delivery of this major facility of national and international importance. It will be one of the largest social infrastructure projects delivered under the Public Private Partnerships methodology in Australia and presents significant opportunities for design firms, construction companies, financiers and service providers. The State invites proposals from suitably qualified Respondents who have an interest in developing the Project in a manner that will assist the State to achieve the Project Vision and Objectives. The new New Bendigo Hospital facility will be located adjacent to the current Bendingo hospital thus dealing with the challenges of having an operating hospital adjacent to the one under tender and future construction. The exceptional “gateway” location of the Bendigo Hospital extends its potential to contribute to the positive identity of this important precinct, the local pedestrian environment and Victoria’s reputation for design excellence through a high quality architectural and urban design outcome. The Bendigo Hospital is a jointly funded State and Commonwealth Government initiative to drive the next generation of progress in the prevention, detection of illness and treatment of patients. Additional non-government funding will be contributed from other sources including by the sale of the existing Peter Mac sites, philanthropic fundraising and partner contributions. The State is committed to ensuring that this Tender Process proceeds in a manner that is efficient, fair and transparent by adopting the Partnerships Victoria framework and procurement methodology to provide a clear delivery framework for all parties. The project is also consistent with Growing Victoria Together; a statement about the government’s broad vision to 2010, which balances economic, social and environmental goals. The government’s vision includes: ‘all Victorians have access to the highest quality health and education services all through their lives.’ As part of its commitment to addressing this goal, the government has also developed a set of priority actions to guide work in these areas. DHS has identified the priority actions that are their primary responsibility, including: • build, improve and integrate hospitals and community health centres • link and invest in services for mothers and children through pregnancy to age eight. The new Bendigo Hospital project embodies both of these priority actions, by integrating supporting healthcare and research with other two facilities in the Melbourne metropolitan are


including the Royal Women and Royal Children Hospitals. › the provision of facilities maintenance, and a range of other soft facilities management services, for the Bendigo Hospital Facilities, and › the development of commercial opportunities, including retail development. The State has identified a range of value-adding opportunities in this Invitation for EOI that could be part of a separate commercial development near the Bendigo Hospital, and would welcome proposals that incorporate these opportunities. Peter Mac, Melbourne Health, the LICR and the University of Melbourne will retain responsibility for the provision of all core clinical, research and education services. The role of the Project SPV is further detailed in Sections 3.2.1 and 3.3.1.

1.4 Procurement process 1.4.1 National PPP Guidelines and Partnerships Victoria requirements The State intends to procure the Project as a Public Private Partnership (PPP) under the Partnerships Victoria framework. This overarching framework requires compliance with both: › the National PPP Guidelines, and › any Victorian-specific requirements outlined in the Partnerships Victoria Requirements. The National PPP Guidelines are consistent with current Victorian practice, with the exception of the Discount Rate Methodology as discussed further in Section 4.4. In developing the proposed commercial structure for the different elements of the Project, the State is seeking to optimise the role of the private sector, to allocate risk appropriately and to maximise the flexibility for Respondents to produce innovative design and commercial solutions. Consistent with Partnerships Victoria framework, the State reserves the right to revert to public sector delivery of the Project, including (without limitation) if the Request for Proposal (RFP) Responses do not satisfy the State’s objectives, including value for money (VFM).


1.4.2 Tender Process The Tender Process for the Project will involve the following phases: › EOI Phase: the phase used to select a short-list of Respondents capable of delivering the Project, commencing with the release of this Invitation for EOI. › RFP Phase: the phase used to select a preferred Proponent capable of entering into contractual arrangements with the State to deliver the Project, commencing with the release of the RFP to Short Listed Respondents for detailed, fully costed and binding RFP Responses. › Negotiation and Completion Phase: the phase used to negotiate with the Preferred Proponent and finalise and complete contractual agreements. 1.4.3 Timetable The Project procurement timetable is indicative only and may be subject to change: Table 1: Indicative Bendigo Hospital procurement timetable Tender Process Target date/period EOI Phase Release of Invitation for EOI May 2011 Closing date for submission of EOI Proposals 2 June 2011 EOI evaluation and short-listing of Respondents 30 June 2011 RFP Phase Release of RFP November 2011 Closing date for responses to RFP August/September 2011 Preferred Proponent selected To be confirmed at RFP Negotiation and Completion Phase Contractual close To be confirmed at RFP Financial close To be confirmed at RFP Construction Phase Construction commencement Mid 2012 Construction completion End 2016 Respondents are requested to provide their views on the timetable, in particular the period allowed for preparation of responses to the RFP. 1.4.4 Additional information Upon request by a Respondent, the Project Director may provide copies of the documents set out in Appendix A (that are not already publicly available), subject to the Respondent signing a disclaimer and confidentiality deed in a form satisfactory to the State. Requests should be made in the manner noted in Section 7.1. 1.4.5 Clarification questions Clarification questions in relation to this Invitation for EOI should be submitted in writing addressed to Project Directors The closing date for clarification questions is 2.00pm on Thursday May 14 2011. The closing time of 7:00pm is defined as Australian Eastern Standard Time. 1.4.6 Closing date The closing time for submissions is 2.00pm on Thursday 02 June 2011. The closing time of 2:00pm is defined as 2:00pm Australian Eastern Standard Time, or 2:00pm Australian Eastern Daylight Time. Lodgment requirements are set out in Section 6.2.


2. Project background and objectives 2.1 The Project This Invitation for EOI is concerned only with the latter component, i.e. the development of purpose-built facilities in Bendigo. A description of the former component is provided in Section 2.7. The new development is designed to make best use of the current facilities, including the expansion already underway. Heritage buildings will be maintained as an important link to Bendigo’s past. The existing hospital will remain operational throughout construction. Clearance works have already begun for the construction of the new hospital. This includes construction of four new ambulance stations in Bendigo and a new regional office and workshops site for Ambulance Victoria. The sites for the new ambulance facilities have been announced and construction is on track to commence by the end of 2010. The relocation of ambulance services will be completed before the major construction starts at the end of December 2012. The additional ambulance stations will facilitate improved response times, with an estimated 4,000 cases per year to benefit from a reduction in response times of 30 seconds or more. The City of Greater Bendigo will have five ambulance stations by 2012, including the existing station at Kangaroo Flat. The New Bendigo Hospital Project has been declared a strategic project under the Victorian Industry Participation Policy (VIPP). Short-listed bidders will be required to include a minimum 90 per cent local content in their proposals for design, construction and fit-out. This means more local jobs and approximately $40 million in work for local industry, including design and drafting services, mechanical equipment and services, electrical equipment and services, glass and façades, structural steel and floor coverings. Suppliers can register their interest in the project through the Industry Capability Network’s Regional Industry Link, an industry development program that matches Victorian businesses and contractors to relevant opportunities and projects.

2.2 Background Victoria is home to some of the world’s leading medical specialists in our hospitals and research facilities. To progress our health service to the community, Victoria has an opportunity to develop a purpose built facility and a new era of collaboration aimed at advancing treatments patient-centered. For patients it would mean a seamless treatment journey while accessing the best in care and latest treatments available, through the country. The Bendigo Hospital Project aims to reduce the impact of health in Victoria by bringing together many of our best minds and resources in healthcare, research and education. The Bendigo Hospital Facility will be a world class health centre that accelerates the translation of discoveries into new treatments, trains health specialists in all disciplines to work across Victoria, and provides a centre of excellence for people affected. The Project Partners are the Peter MacCallum, Melbourne Health, the University of Melbourne, Ludwig Institute for Health Research, the Royal Women’s Hospital and the Walter and Eliza Hall Institute of Medical Research. The Project Partners will retain their separate corporate identities. The Bendigo Hospital will be a health, research, training and knowledge resource for Victoria. Investment in the Bendigo Hospital will enable Victoria.


2.3 Project Vision, Objectives and Benefits The Project Vision, Objectives and Benefits are as follows: 2.3.1 Project Vision Vision for the Bendigo Hospital The vision for the Bendigo Hospital is to save lives through the integration of health patient care, education and healthcare. Through innovation and collaboration, the Bendigo Hospital will drive the next generation of improvements in the prevention, detection and treatment of injuries and diseases. The Bendigo Hospital will bring together Australia’s best health research and treatment institutions: the Peter MacCallum Health Centre, the Ludwig Institute for Health Research, Melbourne Health, the University of Melbourne, the Walter and Eliza Hall Institute of Medical Research and the Royal Women’s Hospital. This powerful alliance will provide a unique environment for the sharing of ideas and knowledge, which will in turn translate into improved patient outcomes through the application of advanced diagnostics, innovative therapies and individualised care. New discoveries translate to new treatments The Bendigo Hospital will be committed to translating results from basic and clinical research to a high quality, seamless patient journey. While medical researchers investigate most fundamental causes of sickness, biotechnologists and clinical researchers explore ways this knowledge can be applied, giving patients access to the latest experimental protocols. The collaborative work of researchers and clinicians from many disciplines will provide greater insight into risk factors, the best ways to treat the disease or prevent it all together. The comprehensive range of health services integrated with world class research and education programs will enable the Bendigo Hospital to accelerate the development of new health treatments that will benefit the entire Victorian health system and beyond. Regional health services will be improved even further through the education and training opportunities available through the Bendigo Hospital for research and health professionals. The Bendigo Hospital will have close ties to the community by serving as a focal point for new discoveries and treatments and integrating these outcomes with education and public awareness. The resources of the Bendigo Hospital will link with other health services across metropolitan and regional Victoria so many patients will receive treatment closer to home. Magnet for talent, collaboration and advancement The Bendigo Hospital will rival the world’s best and will be home to over 1,400 talented researchers and clinicians with access to state-of-the-art technologies. It will be a magnet for the best and brightest minds in health and for new collaborations. Armed with new insights, scientists will pursue some of the most promising, cutting-edge research in the world. Advances from this work will lead to earlier detection, improved drug therapies, and ultimately, to a dramatic increase in survival rates and quality of life. Greater progress in the struggle against health will also come from collaboration among scientists, clinicians and the health patients themselves. A world of difference Most importantly, the Bendigo Hospital will foster belief in a future where many healths can be survived and more cures are within reach. Excellence in health research and treatment will enable the Bendigo Hospital to make a very real difference to the lives of patients and their families.


2.3.2 Project Objectives The Project Objectives are: › Improve outcomes for patients across Victoria; › Improve health research capability in Victoria, particularly in translational research, to world class standards; and › Attract increased investment in Victoria in biosciences. 2.3.3 Project Benefits The Bendigo Hospital Project aims to deliver the following benefits over the long term: › Reduced burden of health by 2029: continuing the improvement of survival rates beyond that articulated in Victoria’s Health Action Plan aiming to increase the percentage of Victorians diagnosed with acute health issues such as cancer who survive beyond five years to 80 per cent by 2029, and improving the outcomes for recovering patients. › A world class centre of excellence in health: aiming to rank within the top ten medical research centres across the world by 2024, and to increase the percentage of patients on active clinical trials by 15 per cent by 2024 › Increased investment in biomedical research: aiming to increase the annual investment in biomedical research attributable to the Bendigo Hospital to $140 million by 2024, and to increase the Victorian share of biomedical research grants in Australia by five per cent. These benefits will be delivered through the collaboration of the partners, facilitated by collocation of new facilities. 2.3.4 Cost The government committed $473 million in capital funds for the New Bendigo Hospital. When completed, the half a billion dollar project will meet community needs and expectations, provide the right care in the right place at the right time and ensure a sustainable health service into the future. The funding will result in a stronger, healthier community enabling our hospital to remain an important part of this city and the region. 2.4 Policy context The Bendigo Hospital Project has been developed in line with the following major Victorian Government and departmental policies and strategic plans including: › Growing Victoria Together › Policies that relate to the health system and in particular the health services system, including Victoria’s Health Action Plan › Policies that relate to biotechnology and life sciences research, including Innovation: Victoria’s Future – Victorian Innovation Statement; Victorian Biotechnology Strategic Development Plan; Healthy Futures: Life Sciences Statement, and › The Bendigo Strategic Plan.

2.5 The Victorian health system Victoria has led the way in Australia in implementing major reforms to health policy and has built an international reputation in health research. Victoria’s health reform agenda seeks to improve the planning and delivery of treatment and support to patients so that the appropriate care is provided in a timely manner as close to the patient’s home as possible, and is informed by the latest technologies and research.


The agenda to improve the quality of health service delivery and patient care has been supported by: › the development of Patient Management Frameworks to guide the delivery of consistent health care for a range of tumour streams › the development of a model for safety and quality in health care (clinical excellence in health care: a model for safety and quality in Victorian health services), and › the identification of four priority service improvement areas for reform to be addressed at the local and statewide level: multidisciplinary care, care coordination, supportive care and reducing unwanted variation in practice (quality monitoring and support). Victoria’s Health Action Plan outlines a long-term vision for health reform that will ensure high quality health care to all Victorians, regardless of whether they live in metropolitan or rural Victoria through improving prevention, treatment and support. To drive change at the local level, health services have been reorganised and developed into Integrated Health Services (ICS) across metropolitan and regional Victoria. These structures link hospitals, community and primary care services to ensure that health can be detected and treated by groups of healthcare professionals who have committed to working together to plan and coordinate patient care across specified geographic areas. There are eight geographically based ICS and one statewide specialist Paediatric ICS (PICS). Peter Mac, MH and the RWH are members of the Western and Central Melbourne ICS (WCMICS). Other members include Western Health, Werribee Mercy Hospital and St Vincent's Hospital. Peter Mac is also a member of the PICS. As the major health centre in the WCMICS, Bendigo Hospital will be the key referral service in the region for specialist health services, including the treatment of rare and complex health. Health services will continue to be delivered at other WCMICS sites.

2.6 A Comprehensive health centre for Victoria The outcomes of health patient care in Australia are among the best in the world. A recent report1 has shown that Australia is ranked second in the world in terms of lowest ratio of health mortality to health incidence, following the USA. One of the key facilitators of new health treatment and research innovation internationally is the development of comprehensive health centres (CCCs). CCCs bring together specialist clinical health care and research to create synergies between research and clinical practice. Internationally this is exemplified by the development of comprehensive health centres in the USA. The key to the success of the CCC model overseas is how research, education and clinical care are brought together, linked and supported by new models of clinical care and research. This integration provides for much more than just the ‘sum of all parts’ through critical mass and collocation. It creates the necessary environment to drive new discoveries in health. Victoria is home to some of the world’s leading health specialists in our hospitals and research facilities. Victoria has the research strengths and collaborative will among key stakeholders to develop the first truly comprehensive health centre in Australia.

2.7 Bendigo Hospital collaborative To achieve the vision of a true healthcare facility, the Bendigo Hospital must generate greater benefits than is possible through the sum of all parts. A commitment to collaboration is required from all partners and a governance mechanism provided to support and focus effort. Recognising this commitment, the Project Partners have established the Bendigo Hospital collaborative entity as an incorporated joint venture (IJV). The collaborative entity will provide a mechanism for the Project Partners to work together to achieve the Project vision and


specifically to: › facilitate innovation and integration in health care, research and education to achieve a world leading health centre and workforce › facilitate the integration and sharing of information between Project Partners › provide a mechanism for brokering agreement between Project Partners and identify research, clinical, educational and promotion opportunities which are unable to be realised by individual Project Partners alone › promote the sharing of resources and maximise their efficient and effective use, and › the incorporated joint venture also provides a mechanism for the Project Partners to begin to develop and implement the Bendigo Hospital while the new Bendigo Hospital Facilities are being constructed, so that the collaboration is fully operational by the time the new Bendigo Hospital Facilities are commissioned. The incorporated joint venture will facilitate seamless patient care and develop protocols for research collaboration and the use of common facilities and technologies. The incorporated joint venture will leverage increased outcomes from investments through collaborative activities and more effective use of services and technologies to support better health care and research discovery. In June 2009, the six partners signed a relationship agreement representing the first step towards formally establishing the collaborative as an incorporated joint venture (IJV). The constitution and joint venture agreements have been endorsed by the governing bodies of the Project Partners. The Bendigo Hospital Limited was established as a company on 27 October 2009. While a separate component of the Bendigo Hospital Project, it is proposed the Bendigo Hospital incorporated joint venture will act as a key mechanism to drive the development of the Bendigo Hospital Project through innovation in ICT and change management both of which are key enablers for the Project. Further information detailing the object and functions of the incorporated joint venture can be found at Appendix A. 2.8 Project Partners: Linking Bendigo to Melbnourne 2.8.1 The Peter MacCallum Health Centre (Peter Mac) The Peter MacCallum Health Centre has been operating as a specialist health centre for patients from across Victoria for nearly 60 years. It provides a multi-disciplinary health service from its main East Melbourne site including comprehensive surgical services, world leading radiation therapy, same-day chemotherapy, specialist health imaging services (including molecular imaging) and broad ranging patient support and education services (patient library, supportive care services, accommodation assistance, and OnTrac@PeterMac - the award winning adolescent health care coordination service). The Peter Mac provides satellite radiation therapy services from sites at Bendigo, Box Hill and Moorabbin with a private patient service within the Epworth Hospital, Richmond. Peter Mac delivers care through a multi-disciplinary model across 11 tumour streams. The provision of care is closely integrated with the largest health research team in Australia. Peter Mac Research is home to over 440 researchers dedicated to developing a deep understanding of the processes that control health cells and translating this into better ways to manage health. In 2007 Peter Mac was ranked in the top three research institutions in Australia based on impact of scientific publications. Peter Mac currently has 520 Research


Projects underway. 2.8.2 Melbourne Health (MH) Melbourne Health is a major public health provider in Victoria and comprises: RMH City and Royal Park Campus, North-western Mental Health, North West Dialysis Service, Victorian Infectious Diseases Reference Laboratory and Facilities Management. Through these services, MH provides comprehensive acute, sub-acute and community-based healthcare programs to about one-third of metropolitan Melbourne's population, as well as general, specialist and statewide services to regional and rural Victorians. Provision of health services is a key focus for MH. MH through the RMH, has joined with the RWH to provide state-of-the-art, multi-disciplinary health care through ten tumor streams, in alignment with the Health Services Framework for Victoria. Within the field of surgical oncology, the RMH provides care to patients suffering with central nervous system, genito-urinary, breast, skin, lung, colorectal, head and neck and upper gastrointestinal health. The RMH also provides medical oncology, clinical hematology and bone marrow transplantation. MH is a health service underpinned by research, especially in the area of health. It has an international reputation for health clinical trials ranging from early phase studies of experimental therapies to participation in international Phase III studies. There are more than 150 active Projects at MH relating to malignancy, health clinical trials and research into the reduction of the burden of disease of health. The RMH is a major teaching hospital with an emphasis on education across the entire health sector. 2.8.3 The University of Melbourne (UoM) The University of Melbourne is among the top-performing universities for competitive research funding, PhD completions and referred research publications in Australia. Health research is carried out across 27 departments in the Faculty of Medicine, Dentistry and Health Sciences as well as in the Faculties of Arts and Science. The UoM through its Faculty of Medicine Dentistry and Health Sciences is in the top echelon for biomedicine, ranked in the top 30 in the world, and second in Australia, under the Times Higher Education Supplement (THES) world rankings (2007). The Shanghai Jiao Tong index, focusing on the sciences including bioscience, ranks Melbourne in the top 80 universities in the world, and in assessment of quality of scientific outputs by the Higher Education Evaluation and Accreditation Council of Taiwan, the University of Melbourne is also in the top 80. Its 330 researchers in oncology and carcinogenesis concentrate on: general mechanisms; breast; colon; brain; bone; bladder; cervix; paediatric; gastric; liver; lung; lymph; head/neck; oral; ovarian; penile; prostate; rectal and skin, illustrating the breadth of its health investigation areas. Over 1,500 researchers and more than 60 university departments across ten faculties are engaged in areas that feed into health research such as cell biology and bioinformatics. The researchers of the University’s departments were awarded an average $20 million per annum in health-focused research grants in the period from 2002 to 2006, reflecting the quality of the research being done within these entities. The UoM provides important infrastructure that facilitates health research, including high level computing resources, expertise in epidemiology and biostatistics, major platform technologies including the facilities of the Bio21 Institute and the Australian Genome Research Facility, as well as through its teaching role in training researchers in research study design and libraries. Many of the research higher degree students although enrolled through the UoM are already based in the facilities of the Bendigo Hospital. This close interaction provides the opportunity for coordinated training of basic and clinical scientists in health research.


2.8.4 Ludwig Institute for Health Research (the LICR) Ludwig Institute for Health Research is the largest international non-profit organisation in the world dedicated to understanding and controlling health. It conducts long-term basic and clinical research programs with approximately 800 scientists, clinicians and support staff in ten countries. The LICR Melbourne Branch has been operating in Melbourne for 27 years offering high-level, long-term support to clinical and scientific staff to progress innovative discoveries from the laboratory to the clinic. Its current major research programs are in breast, colon, prostate, brain and skin health. The LICR has forged strong links with biotechnology and pharmaceutical partners to develop new approaches to health therapy. It has excellent working relationships with scientists at the WEHI, Peter Mac, MH and UoM, sharing several technologies andcollaborating on Projects. Much of the LICR Melbourne Branch’s work is aimed at identifying genes associated with DNA repair and tumour suppression. It is also developing drugs that will interfere with the biochemical signals that make health cells and allow them to survive. The LICR also has a long-standing commitment to discovering ways of using the immune system to fight health. The LICR believes strongly in supporting the translation of research discoveries into new treatments and diagnostics. Once the laboratory research has indicated the potential for developing a new therapeutic approach, the LICR supports the research needed to test the efficacy of the new drugs for people affected. 2.8.5 The Walter and Eliza Hall Institute (WEHI) The Walter and Eliza Hall Institute of Medical Research (WEHI) is one of Australia's foremost medical research establishments, its mission being "mastery of disease through discovery". Over many decades, advances and discoveries at WEHI have led to significant benefits for patients throughout the world. WEHI scientists are attempting to understand the underlying causes of many diseases, in order to develop better treatments. Prime targets include cancer (leukaemia, lymphoma and breast cancer), autoimmune diseases (juvenile diabetes and rheumatoid arthritis), infectious diseases and multiple sclerosis. 2.9 Project governance The Bendigo Hospital Project is a joint Department of Health (DH) and Department of Innovation, Industry and Regional Development (DIIRD) Project, led by the Department of Health. The DH Project team has been established and will manage the Tender Process and the Project, led by the Project Director. The DH Project Team is located at 50 Lonsdale Street, Melbourne. The Project structure is detailed below. Figure 2: Bendigo Hospital Project Governance Government Make decisions as required on the Bendigo Hospital project including approval of shortlist, approval to release project brief, approval of preferred bidder and approval of contract Steering Committee Chaired by Executive Director, Metropolitan Health and Aged Care Services, DH Representation from Building Partners, government and Bendigo Hospital Oversight of the Bendigo Hospital project in the implementation phase (from funding announcement to commissioning) Project Director Provide advice and recommendations to the Steering Committee and action directives from the Steering Committee. Reports to the Project Board through the Steering Committee Project Board Chaired by Secretary, DH Made up of government departments Provide advice and recommendations to Government on the Bendigo Hospital Project Secretary and Board Chairs Group Role: Promote mutual understanding on key project issues


2.10 Philanthropic donations The Project Partners all attract considerable financial support from the community, which is used to enhance research and upgrade equipment and facilities. The approved funding arrangements for the Project include a contribution from non-government sources, including philanthropic fundraising and donations. Respondents need to be conscious of the importance of this financial support and ensure their financial and operating structure. Project does not adversely impact in any way on the fundraising opportunities of the New Bendigo Hospital and Project Partners or the manner in which the philanthropic contributions are expended throughout the precinct. Peter Mac is leading the philanthropic fundraising campaign on behalf of the Building Partners.

2.11 Architectural and urban design outcome 2.11.1 The opportunity The Bendigo Hospital Project represents an opportunity to provide exceptional architectural and urban design outcomes which will assist in the delivery of these services. The design will ensure an excellent contribution to the local precinct and urban environment, and to the State’s reputation as a leader in design innovation and quality. 2.11.2 Design principles developed during masterplanning The following architectural design principles were developed for the Bendigo Hospital during the masterplanning stage for the Reference Project: › Urban context: The FDH site is a key Melbourne gateway site, and the building form and expression needs to be carefully considered and highly responsive to both the local and greater physical contexts. The three corners of the triangular site require special consideration as they are key boulevard focus points. The architectural, landscape and urban design response must succeed at this large urban scale and also at the finer pedestrian scale. The Bendigo Hospital offers the opportunity to significantly enhance the pedestrian environment within the health and research precinct through high quality design, and to thereby improve public safety and amenity. › Links: Links are essential to connect the Bendigo Hospital Facilities on the FDH site with the surrounding health, research, education and training facilities, and will be key elements in the street environment they traverse. Minimising the visual impact of and overshadowing by bridges at street level is a key objective, so the bridges should be well considered positive architectural contributions to the street environment. › Entry points: The entry points address each street surrounding the building. They need to be legible, accessible and welcoming, and should be considered in the context of improving the pedestrian environment and public spaces around the Bendigo Hospital Facility. Entries will offer a fluid and coherent transition through excellent integration of architecture and interior design. › Communal spaces: High legibility through the design of public and private spaces and travel routes within and around the Bendigo Hospital is essential. Centrally positioned atrium space will be the most important orientation device within the building. Both vertical and horizontal circulation routes will be clearly legible upon entering the main space. Communal spaces will also assist in promoting the integration of clinical and research areas throughout the Bendigo Hospital Facility. This will be achieved through internal stairs, providing direct links between areas, the sharing and location of meeting rooms, as well as the incorporation of staff break-out spaces. Communal spaces will offer a range of areas for meeting and social engagement, and will offer high amenity through excellent interior design which is fully integrated with the Project architecture.


› Address points: There are axial sight lines to the site from adjacent roads. The main site address point is from the southern boundary. Views both to and from the Bendigo Hospital are important, and will be well considered in developing the design as both an excellent urban gateway, and as an exceptional interior environment for all users. › Orientation: The building mass embraces passive solar gain. The building maximises sun from the northern exposure. The access to direct natural sunlight will be optimised to maximise access to controlled sunlight for staff, patients and visitors to both inside and outside spaces, and to reduce the impacts of glare and excessive heat gain. › Sustainability: The Bendigo Hospital will aim for a high level of environmental sustainability through a comprehensive range of initiatives. Sustainability principles will be integrated throughout the design, construction and operation of the Bendigo Hospital Facility. It is intended that the Project will be certified under the GreenStar Healthcare rating tool. 2.11.3 Qualities of good design The Bendigo Hospital will provide the following through the delivery of a well considered, high quality architectural, landscape and urban design response: Site responsive Respond to the specific local landscape (built and natural) and context, the greater physical context, the topography, prevailing weather conditions and orientation. Sustainable Promote positive environmental, social, cultural and economic values; optimise energy and water efficiencies; be adaptable and deliver recurrent cost savings. Values heritage Respond to built and social history, memory, understanding of and continuity with the past. Functional Fit for purpose, well planned and constructed; appropriate materials, high quality detailing, services and technology. Safe, legible Understandable, feels safe and secure, includes good visual links and strong passive surveillance. Signage is carefully considered as an integrated design element. Universally inclusive: Access routes are obvious and accessible to all relevant users and members of the community, whether able bodied or mobility impaired Engaging Offer diversity, animation and balance these with order; reflect and respond to community values and encourage positive interaction. Enduring Relevant across life-spans of many generations; flexible and adaptable; representative of its time and of a high quality. Durable Well resolved with high quality materials and detail resolution; easy to maintain well, and will age gracefully. Delightful Authentic, sensitive and intelligent in design of form, space, expression, materials, craft and detail. 2.11.4 Planning constraints In addition, Respondents will be required to consider the following planning constraints: › Helipad: The primary flight path alignment for the helipad is in the East-West. However, the frequency and strength of northerly winds at the site requires a supplementary flight path on the southern side of the helipad. The southern flight path for the existing RMH helipad overlays the Western side of the


FDH site and is an essential element of the RMH helipad facility. The need to protect the southern flight path to use the helipad against obstacle intrusion has been identified as a potential development constraint. › Built form context and surrounding land: The surroundings to the Bendigo Hospital is subject to a Design and Development Overlay (DDO) specifying height and setback controls. The DDO however does not extend to the FDH site. DDOs on surrounding land seek to reinforce the boulevard entrance to Bendigo, maintain the landscape character of the place, and promote the new built form consistent with these qualities. Refer to the Bendigo Arboricultural Assessment from: http://www.newbendigohospital.org.au/media/documentDownloads/Arboricultural%20Assessment.pdf Given the prominent location of the site, a well conceived conceptual response and highly resolved building design will be required. This will include appropriate treatment to all frontages and opportunities for links with the surrounding medical land uses. Given the constraints posed by the helicopter flight path the principle of concentrating taller built form elements. › Transport Planning: In December 2008, the Victorian Government announced its plan to construct road and transportation infrastructure in the area with an estimated of more than $4.5 billion in Victoria. Consider the impact of this on the project and surroundings. At this stage it is expected that there will need to be ongoing coordination between the Bendigo Hospital Project and roads, train projects and air traffic. Proponent attendance at workshops, meetings. 2.11.5 Desired facility response to the Project Vision The Bendigo Hospital Facility will offer an excellent architectural outcome which will enhance patient, staff and visitor amenity through spaces which are not only fit for purpose, efficient and accessible, but are also sustainable, legible, engaging and positive. The new Bendigo Hospital Facility will be highly functional and support the delivery of worldclass health care, research and education services. In addition, the new Bendigo Hospital Facilities will enhance the design quality and identity of the existing health and research precinct as a whole, and the public places within it, and contribute to an excellent built environment outcome for users and communities within the precinct. In this context, the State encourages Respondents to: › Consider the formation of architectural associations for this Project such that the design:

- will be led by an architectural practice with demonstrated capability and capacity in the delivery of excellent architectural, landscape and urban design outcomes, and

- is fully informed by and will work in collaboration with a practice which is expert in both health planning and the delivery of facilities of this size and complexity. › Consider seeking architectural services from the exceptional pool of Australian practices, as well as international firms, in establishment of their consortium.

2.12 Environmentally sustainable design The vision for the Bendigo Hospital Facility is to: › create a leading example of a sustainable healthcare facility befitting the status as a world class hospital facility › create a building that actively facilitates healing and patient well being through sustainable design


› provide an internal environment quality that encourages an effective and collaborative research environment, and › provide significant reductions in energy and water consumption over current usage. The Reference Project has been benchmarked against and implemented in accordance with the Department of Health Capital Development Guidelines (CDG) 6.5 Sustainability. Any minor deviations from the guidelines are mainly due to site limitations. An analysis of the potential for the Reference Project to achieve 5 or 6 Star Green Star Healthcare rating and related cost impacts has been undertaken. This analysis showed that a 5 star rating is achievable within the budget for the Reference Project.

2.13 Building and site management Further planning on the new Bendigo hospital has been completed since the project was announced in May 2010. The updated concept design consolidates acute outpatients and day surgery with the new acute hospital. This means that there is no need to bridge Arnold St. The existing acute hospital will become an ambulatory care centre with radiotherapy, chemotherapy and renal dialysis, as well as administration offices. The new concept design provides a better outcome for patients, staff and visitors.

2.14 Summary of Design Principles • Connectivity and flexibility across the precinct including integration of work processes and flows. • Generic layouts including standardised room design. • Legible and highly inclusive (attractive and functional) landscape and public spaces. • Design solutions will enable collaborative and interdisciplinary care. • Implement smart technologies to integrate and streamline work processes. • A tranquil hospital to maximise patient, staff and visitor well-being. • High quality indoor environment. • The new facilities should be designed to be low-energy and future-ready to accommodate changes in energy supply. • Support flexibility for conversion with occupancy changes. • Maximise adaptability to support work practice changes. • Allow for service expansion to meet future demand. • Support safe and efficient work practices. • Separation of ambulatory and inpatient traffic. • Patient facilities will reflect a patient centred approach to care. • Informed by evidence based design and other relevant evidence. • Functional layout to support care co-ordination and efficient care delivery. • Interior design will be uplifting, calming and promote healing. • Patients, families and carers have access to retreat areas – areas that enable reflection and are separate from treatment areas. • Facilities will be welcoming. • Facilities will be elder-friendly. • Family-friendly environment for patients, families and carers. • Patients will have access to information from home. • Families and carers will have appropriate access to inpatients at any time of the day. • Patients, families and carers will be consulted on key design issues. • Patient movement will be minimised. • All inpatients will have access to natural light and views. • Inpatients will have control over their environment. • Maximise patient dignity, privacy and confidentiality. • The location of staff workstations will enable appropriate visual and/or aural contact to be maintained with inpatients at all times. • Support formal and informal opportunities to learn.


• All clinical settings will accommodate practice-based research. • All clinical areas will have access to appropriate staff-only spaces. • Promote staff wellbeing and health. • Promote staff connectedness through ad hoc professional and social interaction. • Minimise specific purpose patient waiting areas. • Natural light will be maximised in public and staff spaces. • Intuitive and clear way giving. • Ease of travel to and from the facility is integral to access. • The facility must respect the history of Bendigo Health and the local community. • Facilitate ongoing community engagement. • Separation of public, patient and staff traffic. • Goods and supply functions will be separate from clinical functions. • Respect and welcome diverse cultures and beliefs.

3. Project scope and commercial framework 3.1 Project overview and scope The private sector’s role in the Project is expected to include: › the design, construction, commissioning and financing of the New Bendigo Hospital links across to current Bendigo Hospital. › the design, construction and commissioning and possibly financing of the New Bendigo Hospital Facilities for the complete Bendigo Hospital site to be located adjacent to the current Bendigo Hospital site, including refurbishment and extension works as defined (Design & Construct delivery). › the provision of facilities maintenance and a range of soft facilities management services for the Bendigo Hospital Facilities, and › the development of commercial opportunities, including retail development.

3.2 Scope of Works 3.2.1 Project Principles Patients as active partners • Patient empowerment is a high priority. By increasing the role of patients, families and carers, the new Bendigo hospital will be more responsive to patients' needs and preferences, delivering better quality care. Patients, families, carers and the community will have the opportunity to contribute in developing the new Bendigo hospital, through avenues such as community consultation and the community reference group. • The ability for a co-ordinated and integrated patient journey to start and end at home. This means patient information management systems need to be accessible across the care continuum. • Patients, families and carers will be given the tools to co-ordinate and manage their own care, with access to timely assistance and support from Bendigo Health as needed. • Communication with patients, families and carers is always two-way. • All aspects of the project will treat staff, patients, families, carers and the community with dignity and respect. Systems and processes will be developed on a wellness and holistic model where practical. Continuity of care • Patient journeys will be well connected and integrated across different streams of care and service locations in line with Bendigo Health’s philosophy of ‘working as one’. • Interdisciplinary care will be supported and encouraged in all aspects of service development and design. Staff from a variety of disciplines will work together with the patient, family


and/or carer in a combined, co-ordinated approach • Patient movement will be minimised consistent with achieving timely, safe and effective interventions and clinical management. Where practical, treatment and assessment will go to the patient. • Bendigo Health’s roles as a regional and as a local hospital will be clearly defined in healthcare and in clinical education. Where it is safe, effective and within Bendigo Health’s scope of practice, people will be treated as close to home as possible. Functional flexibility • As service models will change over time, there must be the ability to adapt the use of spaces easily and cost effectively. ‘Future proofing’ will be incorporated to support future service expansion and the need for changes in service delivery • Expansion capacity ill be scalable to allow for the staged commissioning of increased capacity as required Comfortable and safe for patients • The environment and service systems will be designed to create a tranquil hospital for patients, families and carers. • Privacy and confidentiality will be respected for all patients, families and carers within the boundaries of patent safety and effective clinical management. • All patient beds will have natural light and access to views into outdoor, green areas. • Patients will feel connected to staff at all times. Nursing staff can see and hear patients at all times. • Patients will control their environment as much as is practical. Comfortable and safe for staff • Staff facilities will be comfortable and enable informal staff gatherings and celebrations • The facility will support staff recruitment and retention by providing an attractive and comfortable place to work and by supporting an organisational culture that enables and supports innovation and high care standards • The facility will promote the connection between staff, patients and co-workers in ways that support timely high quality care eg generic layout including standardised room design and inpatient unit layout to support this concept. Enabling our people • Learning and education will be integrated into clinical settings • Tertiary training will be supported ‘on the job’ as well as in formal educational settings • Staff will have access to learning and innovation tools such as online learning simulation • Clinical research (approved trials) will be supported in all clinical settings • Leadership in regional health education will be supported through avenues such as the education precinct • Systems will support active learning at work through online learning and teaching at bedside • The project will contribute to learning and research (knowledge development, discovery, dissemination and transfer) by taking what we have learnt throughout the project and share with others • The New Bendigo Hospital will be connected with and be an integral part of the surrounding academic precinct, offering a co-ordinated approach to education and training through joint appointments, offer education and training that sits with university partners and across the organisation. Sustainability and efficiency • The project will be as environmentally sustainable as possible in both design and implementation • Business sustainability will be supported to improve operating efficiency, providing care within our means by working within our budget • The project will support the workforce mix, recruitment and retention needed to deliver project outcomes by providing a mix of skills and number of people to match those skills


• Sustainability will be supported by the use of standardisation where possible in all aspects of the project, eg generic inpatient units • Systems and practices will support the concept of ‘do it once’, minimising unnecessary repetition. Information and Communication Technology enabled • The New Bendigo Hospital will be information and communication technology enabled to facilitate effective care delivery and efficient work practices. • The information and communication technology component of the project will contribute to delivering the project outcomes (new advancements will help deliver what we want to achieve) and will be consistent with state and national ICT policy (HealthSMART and National Broadband Network). Priorities for investment are:

• Clinical informatics capability • Well defined, robust infrastructure • Electronic medical record • Unified communications systems • Real time location systems • Fully integrated ’information management‘ – including data management, data

security and integrity, resource management systems. • The project will provide the foundations required to support further development. Connecting with Bendigo and the wider Loddon Mallee region • The project will demonstrate connections to the community and the history of Bendigo making the project for everyone by promoting cultural ties and links with our history. • Bendigo Health is part of a health service system in and beyond Bendigo and is the regional hospital for the Loddon Mallee region. Working in partnership with other providers are and will increasingly be, a vital aspect of effective care delivery. • The New Bendigo Hospital will be welcoming for the community; it will not be ’a fortress’. • The New Bendigo Hospital will welcome and celebrate the diverse cultures that are part of Bendigo and surrounding communities. An important community to be recognised is the local Aboriginal community and their connection to the land on which the hospital will be built.


Figure 3: The site for the Bendigo [http://www.newbendigohospital.org.au/new_bendigo_hospital.asp]

The following services will be relocated into the Bendigo Hospital: › Peter Mac East Melbourne Medical campus for learning and research › RMH City Catering Services It is intended that the State will retain maintenance and lifecycle responsibility in respect of the new and refurbished facilities developed on the North Side. The State is yet to finalise the proposed commercial and financial model for procurement of the North Side works and is seeking feedback from Respondents in Appendix B. SCOPE OF WORKS and SERVICE PROFILE The table below summarises the proposed services profile and provides an indication of the functional areas required for the Bendigo Hospital. Please note this information is indicative only and will be confirmed in the RFP. The project will build a new acute hospital, a new mental health facility, additional inpatient beds and a refurbished ambulatory care centre. Features of the new hospital will include:

• 376 treatment spaces including • 308 acute beds, • an increase of 105 beds • 18 same day surgery beds • doubling the renal chairs to 24 • more than tripling the chemotherapy chairs to 26 • additional emergency department capacity, with 34 cubicles • eight operating theatres • a new helipad to provide faster transports for critically ill patients • three radiotherapy bunkers including an additional linear accelerator • a new purpose-built 75 bed mental health facility, which consolidates the current

mental health services split across three sites and provides an additional 33 beds • a new integrated women’s and children’s facility with six delivery suites, 25 maternity


beds, 15 special care nursery cots, 16 child and adolescent beds and six consulting rooms.

Construction Economics and Site Logistics Creating more jobs The new Bendigo hospital project will create 735 direct construction jobs. Enabling works on the site for new hospital are already well underway, ensuring that the site will be ready to commence major construction by the end of 2012. The development will have an environmentally sustainable design, providing a safe and healthy environment for patients, staff and visitors. Houses in Mercy Street demolished to make way for a new hospital - January 2010 The demolition of five houses in Mercy Street has taken place to make way for Bendigo’s new hospital. Local demolition firm Accurate Demolition was appointed to complete the works and will recycle many of the reusable products such as bricks and window frames from the demolition site.

Community consultation Bendigo residents were given the opportunity to view plans and provide input at consultation sessions held in May and October 2009. A number of interested parties attended the sessions including local residents, contractors, stakeholders, auxiliaries, support groups, clubs, peak industry bodies, primary health care providers, councillors and Bendigo Health staff. Positive support for the redevelopment was overwhelming. The key area of interest that came up consistently across the sessions was how traffic movements and parking will be handled in the new health precinct. Other issues raised include: transport, amenity, design and features, navigation, environmental sustainability, ambulance station, heritage, services, current site, construction, staffing, communication and consultation. In addition, grade six pupils from Kennington Primary School and St Peter’s Primary School participated in the consultation in October through an art play exercise to design areas of the hospital that they were most likely to experience as a patient or visitor. In June, Bendigo Health met with many neighbours to talk to them about the new Bendigo hospital. The session was very well attended with car-parking again on the top of the list. Preparing for the new hospital: Current Ambulance Relocation and Emergency Sites The five ambulance sites were identified in September 2010 which will see four new


ambulance stations located at Eaglehawk, Strathdale, Epsom and Bendigo CBD, plus a regional office and vehicle workshop at North Bendigo. Confirmed sites for new ambulance facilities include:

• An ambulance station in Epsom at 199 Midland Highway • An ambulance station in Eaglehawk on 2/2A Market Street (former RSL Hall) • A new regional office and workshops in 107-125 Holdsworth Road, North Bendgo. • Preferred sites for new ambulance facilities include: • An ambulance station in Strathdale • An ambulance station in Central Bendigo

Builders are on site at North Bendigo, Epsom and Eaglehawk. At the North Bendigo site, the lower retaining wall has been completed and back filling is currently underway. The sub-base for the workshop slab has been rolled and detailed excavation and in-ground services have commenced in preparation for the slab to be poured. The majority of rock excavation is now complete with the area that houses the water tanks the last area requiring rock excavation. The precast panels for the warehouse are being poured and will be erected after Easter. Wall framing and structural steel framing has been completed at the Epsom site. Services rough, wall cladding and roof framing in have commenced. Shop drawings are currently being produced for the windows and garage doors. The site clearance and demolition at the Eaglehawk site has been completed. Soil on this site was stockpiled for testing and subsequently removed. A large soft spot was identified at the south end of the building which could not be adequately compacted and was required to be removed from site and replaced with fill. The sub-base has been completed and in ground services commenced. The ground slab is scheduled to be poured prior to Easter. Heritage A heritage report commissioned by Bendigo Health has highlighted buildings of no heritage value that could be demolished to make way for a new hospital.

The report focuses on building on the Anne Caudle Centre campus, that are not on the state heritage register and provides expert advice on which non-heritage buildings should be retained. Most of the buildings that will be demolished to make way for a new hospital were built over the last few decades; this includes buildings such as the current laundry and kitchen facilities. The next step is to prepare a conservation report for the listed buildings. Some significant heritage areas include the white Anne Caudle building, the superintendent and gate houses, they lying-in and west wings and some fencing. The conservation report will provide valuable advice on how Bendigo Health will preserve and protect our heritage features into the future.


3.2.2 Non-core assets Relocation of a number of services to the Bendigo Hospital such as catering facilities, accommodation for visitors and other commercially viable venues provides the opportunity to redevelop or dispose of a number of properties owned by the parties. The treatment of these assets is not expected to form part of the Project. 3.3 Scope of services 3.3.1 Services to be provided by Project SPV Services to be provided by Project SPV are expected to include: › Accommodation: the design, construction and commissioning of the new Bendigo Hospital and the provision of furniture, fittings and certain equipment › Building Management: the provision of ongoing maintenance and hard facilities management services together with, where relevant, lifecycle/whole of life › Soft Facilities Services: the provision of certain soft facilities management and other services. While further work is required to determine the range of soft facilities management services, these may include help desk, security, cleaning etc › Car Parking Services: the provision of car parking management services (further information regarding the ownership of car park revenues will be provided with the release of the RFP), and › Sundry Commercial Services: undertaking revenue generating services e.g. retail developments and conference facilities. These indicative services only apply to the South Side with final details to be set out in the RFP.

3.4 Equipment The Project SPV will be required to procure various items of equipment, furniture and fixtures for the Bendigo Hospital. A detailed equipment list will be provided at the RFP Phase. Items of equipment will be grouped into categories that dictate the extent to which Project SPV will be required to take risk for the equipment including responsibility for procurement and ongoing maintenance/replacement. Items such as non-medical equipment, furniture and fixtures, will be required to be procured, financed, installed, maintained and when appropriate, replaced by Project SPV over the duration of the concession period. Such equipment will continue to be owned by Project SPV throughout the Project Period and transferred to the State at hand back. Other items of equipment (specialist medical, ICT equipment and research equipment) may be procured, financed and installed by Project SPV. However, ownership may vest in the State upon commencement of the operating phase and thereafter the State will assume responsibility for maintenance and replacement.

3.5 Commercial opportunities The State encourages Respondents to use this Invitation for EOI process to explore and comment on the attractiveness of commercial opportunities that will provide value for money and assist in the achievement of the Project Vision, Objectives and Benefits. However, any considerations need to contribute to the high quality architectural and urban design outcome of the Bendigo Hospital and take into account the site constraints and the State’s desire to allow future flexibility for expansion. Commercial opportunities may include retail development, off-site ancillary accommodation


facilities, consulting suites, child care or other facilities or services that are complementary to the operations of the new Bendigo Hospital. The State’s treatment of car park revenue ownership will be confirmed in the RFP. However it should be noted that as a minimum, it is assumed that the management of car parking services will be by the Project SPV. The principles underpinning these opportunities have been set out in Section 3.7. The RFP will contain details of the State’s requirements in respect of both on-site and off-site commercial opportunities. 3.5.1 On-site

Car parking › It is expected that an underground car park in excess of 700 spaces will be constructed. Retail services › It is expected that a range of retail services and related amenities will be made available via commercial development. While revenues for retail service may not be significant, the services represent an important element of the overall services offered to staff, patients and visitors of the Bendigo Hospital, therefore viewed as value adding by the State.


› A review of three major public hospitals in the metropolitan Melbourne indicated the most common retail facilities provided include food and beverage, hairdressers, coffee shops, florists, juice bars, newsagencies, gift shops and chemists. This precedence could be appropriate for the Bendigo Hospital but a thorough market research would be expected. Other › Other commercial opportunities may be considered on the South Side subject to protecting the required future expansion allowance (to be detailed in the RFP), enhancing the Bendigo Hospital and meeting any other State requirements to be detailed in the RFP. 3.5.2 Off-site The Bendigo Hospital and other Bendigo precinct organisations may provide demand for off-site commercial opportunities. The State will provide further guidance within the RFP on how offsite opportunities should be developed and will be assessed (if at all). Off-site opportunities could include: › Additional car parking: The provision of additional car parking facilities represents a potential commercial opportunity for the Bendigo precinct that may be linked to the Bendigo Hospital Project. › Patient and family accommodation: Accommodation for people undergoing non-inpatient treatment in the Bendigo Hospital precinct (patient and family accommodation). › Child care centre › Private consulting suites › Private day treatment/hospital services › Co-generation. 3.6 Contractual framework 3.6.1 Proposed contractual structure The Project represents one of the most significant undertaken under Partnerships Victoria in terms of capital investment and will be jointly funded by the Commonwealth and State Governments. The funding arrangements between the two Governments will have no direct impact on the State’s contractual structure and payment mechanism for the Project. That is, it is intended that the State will be the party that contracts with the successful Project SPV to deliver the Project (including in respect to all funding and payment mechanisms). Figure 4 below summarises the anticipated contractual structure and principal agreements required to deliver the Project. The actual contractual structure and principal agreements will be confirmed as part of the RFP Phase. In the following contractual structure indicated “Project Co” as the “SPV” mechanism [also know as Operating Company].


The State is yet to finalise the proposed commercial and financial structure with respect to the North Side works. It is envisaged that these works could be delivered through the Project Agreement structure as outlined in Figure 3 above, or through an embedded State Works contract with milestone and/or completion payments. The State is seeking feedback from Respondents with respect to the contractual and financial arrangements with respect to these works in Appendix A. 3.6.2 Principal agreements The key agreements between the State and the Project SPV are likely to include the: › Project Agreement › Site Occupancy Agreement › Financier Direct Agreement › Builder Direct Agreement › Service Provider Direct Agreement › Independent Reviewer Agreement, and › State Deed of Charge. Project Agreement The Project Agreement between Project SPV. and the State is the primary legal document that sets out the rights and obligations of the parties for the delivery of the Project. The Project Agreement will reflect the key commercial terms and risk allocation for the Project broadly consistent with the principles of Partnerships Victoria Framework and will cover the following major issues: › term of the Project › design, construction and financing of the new Bendigo Hospital › process for the commissioning of the new Bendigo Hospital › provision of furniture, fittings and equipment › asset maintenance and various Facilities Management services to the new Bendigo Hospital › whole-of-life obligations and end of term hand-over obligations › modification and change processes › designated access and occupancy rights for the State, the Project Partners and others › security arrangements including all appropriate performance guarantees and bonds


› appropriate default, step in rights and termination rights of the State › performance standards and service fee payment and abatement, and › construction licence under which Project SPV will be provided with access for the purpose of delivering the Project. The State will pay Project SPV for the services via a service payment that will commence upon final commissioning of the Bendigo Hospital. The service payment will be fully ‘at risk’ or abatable, consistent with the Partnerships Victoria policy. Details of the services and the payment/abatement mechanism will be set out in the RFP. Site Occupancy Agreement The Site Occupancy Agreement will govern the terms and conditions under which the land upon which the new Bendigo Hospital is to be constructed is provided to Project SPV for the Project Period. At all times during the Project Period, the State will retain the rights necessary to facilitate the Bendigo Hospital’s security of tenure, control over the Site and the discharge of its clinical and related service responsibilities. Financier Direct Agreement This agreement will govern the relationship between the State, Project SPV and Project SPV’s financiers. The agreement will also govern the security arrangements between the parties and will ensure that the delivery of the services and the State’s step-in rights are protected at all times. Builder Direct Agreement This agreement will govern the relationship between the State, Project SPV and the builder and give the State various step-in rights should Project SPV default under its contract with the builder. Services Provider Direct Agreement This agreement will govern the relationship between the State, Project SPV and the relevant provider of services and give the State various step-in rights should Project SPV default under its contract with that provider of services. Independent Reviewer Agreement This agreement governs the relationship between the State, Project SPV and the Independent Reviewer. The Independent Reviewer will be engaged as an independent expert experienced in the design and construction of works, and in carrying out other ancillary services in relation to this Project. State Deed of Charge Under the State Deed of Charge, the Project SPV grants a fixed and floating charge over all of its assets and undertakings for the benefit of the State. This ensures that any liabilities, financial or other, owed by the Project SPV to the State in connection with the Project rank as secured liabilities. The State is protected against all subsequent charges (relationships with the Project SPV financiers are regulated by the Financier Direct Agreement) and facilitates step-in rights.

3.7 Commercial principles In developing the proposed commercial principles for the different elements of the Project, the State will seek to maximise VFM and optimise the role of the private sector, to allocate risk appropriately and to maximise the flexibility for Respondents to produce innovative design and construction techniques, maintenance practices and commercial solutions. The commercial principles to be adopted for the Project will (subject to Section 1.4.1) be broadly consistent with the National PPP Guidelines Volumes 3: Commercial Principles for Social Infrastructure and the Partnerships Victoria Requirements – Annexure Commercial Principles.


3.7.1 Key commercial terms The key commercial terms that will be applicable to the Project structure are set out in the table below: Issue Principle and approach State Project SPV [Co] General issues

Reinstatement and repair Project SPV is responsible for repairing and reinstating any loss or damage to the site, the works or the facility. Project SPV must obtain and maintain appropriate insurance cover for a building such as the Bendigo Hospital. The State may specify minimum insurance types and amounts. Construction phase insurance cost risk will be borne by Project SPV.

Insurance The State will share, within agreed thresholds, any insurance cost increases for certain categories of operational insurance.

End of Term issues At the end of the contract term, Project SPV will be required to hand back the infrastructure to the State in not less than the specified condition for nil consideration. Project SPV's performance obligations will be suspended for the duration of a Force Majeure Event.

Force Majeure Project SPV will bear the financial risk of a Force Majeure Event (including delay costs). However, payments will not be reduced below that required to service minimum debt obligations. The State will bear the time and cost risks associated with a Project-specific change in law.

Change in Law The State and Project SPV will share the time and cost risk associated with a general change in law. Project Period Has yet to be finalised by the State and will be advised in the RFP

Performance Security Project SPV will be required to procure appropriate performance security during both the construction and operating phases Taxation Project SPV will take all taxation risks with respect to its participation in the Project Site

Site Conditions Project SPV will accept overall responsibility for Site conditions. The risk of any identified pre-existing contamination within the Site will be the responsibility of Project SPV.

Environmental The State will share in the costs of action required to be undertaken by Project SPV in relation to any pre-existing contaminant that was not identified in the Site conditions reports or through the Respondent’s.

Native, Title/Cultural, Heritage The State will assume responsibility for native title and provide relief in relation to discovery of artefacts. Table 4: In summary Key commercial terms


Design, Construction and Commissioning The State will secure the planning scheme framework approval to enable the use of the Site for the purposes of the Project. Planning and other approvals Project SPV is responsible for developing appropriate submissions, obtaining and complying with all other approvals and any conditions on the planning approval as it relates to the Project. Design Project SPV is responsible for designing the facility to achieve the output specifications. Construction and Commissioning Project SPV is responsible for construction and commissioning of the facility within the required time period to deliver the output specifications. Delay in completion will result in a reduced payment period and potentially liquidated damages. Relief for construction delays No relief will be given to Project SPV for delays, the occurrence or effects of which are within Project SPV’s control. Delays caused by the actions of the State will result in relief being provided to Project SPV. Payments, Operations and Maintenance Payment and performance Payments will be made upon the delivery of the required services. Sub-standard performance or non-availability will result in reduced (or nil) payments (via deductions). Maintenance and refurbishment Project SPV must maintain and refurbish the facility as necessary to ensure it delivers the required services to specification. Performance monitoring and review Project SPV will be required to monitor its performance against the specifications. Fit for the intended purpose Project SPV must ensure that the facilities remain fit for the intended purpose from commissioning through to the expiry of the term. Intervening events during the operational Phase Project SPV will receive relief for failure to deliver the required services in certain circumstances where caused by the State. Flexibility to change The facilities will be designed in such a way as to allow for future expansion.


Cont. Table 4

The Project period has yet to be finalised by the State and will be advised in the RFP.


3.7.2 Modifications It is expected that there will be a number of State initiated modifications to the new Bendigo Hospital during the Project. It is therefore important to have appropriate relationships, principles and mechanisms in place to deal with these modifications. In particular, the State requires an approach for dealing with State initiated modifications that: › provides a clear process and is practical and simple to apply › ensures transparency as to composition and costing of modifications › produces competitive/value for money pricing › gives the State flexibility as to how modifications are procured and paid for › deals with minor modifications efficiently, and › facilitates timely outcomes and minimises the potential for disputes between the parties. Respondents are required to set out their proposed approach to modifications as part of their Proposals. 3.7.3 Future Expansion The State requires the facilities to be scalable to allow for future expansion. This is expected to be a key feature of designs and it will be necessary that future expansion can be accommodated in such a way as to minimise the impact on the facilities and services and which represents value for money to the State. It is likely that any future expansion will be instructed as a Modification.

3.8 Whole of life and partnering approach The State wishes to encourage extensive involvement by the service provider (the provider of the facilities management and ongoing maintenance services) in the design and construction of the new Bendigo Hospital, with a view to minimising whole of life costs as well as driving operational and service efficiencies. Respondents are required to demonstrate in their Proposal how they will foster this approach within their Consortium, in the knowledge that demonstration of the benefits from this collaboration will be required as part of the RFP Responses. In addition, the State places importance on the proposed management and structure of Project SPV and its approach to active involvement in the management of the Project, including its interaction with the State and the Project Partners throughout the Project, as well as its long-term commitment. 3.9 Financing The State is keen to ensure that the financing delivered as part of the Project is efficient and represents value for money. Respondents are required to indicate their proposed approach to procuring finance and how they will respond to financial market conditions and achieve financing which provides the State with both short term and long term certainty and value for money. As outlined in Section 3.1, the State is yet to finalise the proposed commercial and financial structure with respect to the North Side works and is seeking feedback from Respondents with respect to the financial arrangements and most suitable payment mechanism.


4. Procurement approach 4.1 National PPP Guidelines and Partnerships Victoria The State intends to procure the Project as a Public Private Partnership (PPP) and will do under the Partnerships Victoria framework. This overarching framework requires compliance with both: › the National PPP Guidelines, and › any Victorian-specific requirements outlined in the Partnerships Victoria requirements. The National PPP Guidelines are consistent with current Victorian practice, with the exception of the Discount Rate Methodology as discussed further in Section 4.4. Details of the National PPP Guidelines and the Partnerships Victoria requirements are available at: http://www.infrastructureaustralia.gov.au and www.partnerships.vic.gov.au respectively. The State reserves the right to revert to public sector delivery of the Project if the responses received through this Tender Process do not offer value for money when compared with various policy benchmarks, including the Public Sector Comparator (PSC), and any other necessary considerations. Subject to the ‘Important Notice’ and RFP Responses satisfying policy benchmarks, and demonstration by Respondents of an ability to effectively facilitate the achievement of the Project Vision and Objectives, the State is committed to progressing the Project pursuant the Partnerships Victoria framework.

4.2 Tender Process Key features of the Partnerships Victoria framework in the context of the Project include: › Core services are retained by the State: in the context of this Project, this means that delivery of clinical services will continue to be the responsibility of the State. › Value for money: demonstration of private sector delivery of services on a value for money basis. › Satisfaction of the public interest test: the State needs to be satisfied that Proposals demonstrate an ability to meet the public interest test. › Output focused service standards: the State will make payments to the Project SPV on basis of a set of service standards, with full payment being subject to satisfactory achievement of those service standards, and › Optimal risk allocation. The Tender Process for the Project will involve the following phases: 4.2.1 Phase 1: EOI Phase The issue of this Invitation for EOI represents the first stage of the Tender Process for the Project. Respondents will be assessed on the Evaluation Criteria contained in Section 5 for the purpose of short-listing Respondents to participate in the RFP Phase of the Tender Process. The State does not require Proposals to incorporate designs or costings for the Project at EOI Phase. 4.2.2 Phase 2: RFP Phase The second stage of the Tender Process will involve the release of a RFP to the Short Listed Respondents. The RFP will require Short Listed Respondents to submit fully costed binding offers based the requirements outlined in the RFP. To ensure that Short Listed Respondents have the opportunity to clarify the requirements the RFP, the RFP Phase will include an interactive process. Shortlisted Respondents will have opportunities to meet with the State to discuss the development of their concepts and designs


and seek clarification and feedback to better understand the requirements of the Project. These sessions will be coordinated in accordance with the National PPP Guidelines Volume 2: Practitioners’ Guide. Based upon the responses received from the RFP Phase and following detailed evaluation of RFP Responses, a Preferred Proponent(s) may be selected to negotiate with the State for the provision of the Project. 4.2.3 Phase 3: Negotiation and Completion Phase While the State may select more than one Preferred Proponent with whom to commence negotiations, it is the State’s preference to shortlist only one Proponent for negotiations provided that to do so would not compromise VFM or probity principles. Further, it is the State’s preference, where possible, not to employ a Best and Final Offer (BAFO) or other extended procurement phase. In any event, only one Preferred Proponent will become the Project SPV upon the successful conclusion of negotiations and execution of a set of contracts, including the Project Agreement. If negotiations between the State and the Preferred Proponent do not result in the execution of the Project Agreement in accordance with the State’s expectations, the State reserves the right to proceed with an alternative Short Listed Respondent, or withdraw from the Project. The State reserves the right, in its absolute discretion, to vary the above phases of the Tender Process. Determination of any such right shall include consultation with the Probity Practitioner. Note on the impact of the Global Financial Crisis As a result of the impact of the deterioration in global financial conditions and its sustained impact on the debt and capital markets, the State will carefully consider whether any amendment to the procurement process is required in order to maximise competition for all aspects of the Project. The State’s strategy will be set out in the RFP.

4.3. Public Sector Comparator The State has developed and will further refine the PSC for the Reference Project. The PSC will be developed and utilised in accordance with the National PPP Guidelines and will be used to assist the State in determining whether the PPP procurement approach achieves VFM. The State intends to release a description of the Reference Project and financial information in respect of the “raw” PSC (i.e. the estimated cost of the Reference Project unadjusted for risk and underlying assumptions, e.g. the discount rate) to Short Listed Respondents. 4.4 Discount Rate Methodology The National PPP Guidelines Volume 5: Discount Rate Methodology Guidance will be used to develop a discount rate for the assessment of the PSC and bids. This approach requires the State to take account of the level of systematic risk. The National Discount Rate Methodology Guidance supersedes the Partnerships Victoria Discount Rate guidance. It is available at www.infrastructureaustralia.gov.au


4.5 Procurement resources and advisers The Department of Health has appointed the following advisers: Table 5: Department of Health Advisers [Note: this is NOT the SPV (Co) – but advisers to the Gov. eg. they will be sitting EOI presentations May 26 and June 2]

4.6 Victorian Industry Participation Policy The Victorian Industry Participation Policy (VIPP) will apply to the Project with respect to local content issues. The policy requires a VIPP Plan to be submitted at the RFP Phase of the Tender Process. In accordance with the VIPP, all Short Listed Respondents must have their VIPP Plans certified by the Industry Capability Network as part of their RFP Responses. The VIPP Plan will be assessed as part of the primary selection criteria of the tender. Further details on the VIPP are available on DIIRD website www.diird.vic.gov.au/vipp

4.7 Terms and Conditions of Commonwealth funding The Commonwealth Department of Health and Ageing and the Victorian Department of Health have reached agreement on an Implementation Plan for the Bendigo Hospital Project to form one of the schedules to the National Partnership Agreement on Health Infrastructure. It is intended that the Implementation Plan will be signed prior to the end of 2009. The draft Implementation Plan assigns full responsibility for the management and delivery of the Project to the State.


5. Evaluation of proposals 5.1 Evaluation methodology The State will evaluate all Proposals using the Evaluation criteria described below. The Evaluation criteria are not listed in any specific order and may not be accorded equal weight. Weightings (if any) to be allocated to each of the Evaluation criteria will be determined by the State and used as part of the evaluation methodology.

5.2 Evaluation criteria Respondents are required to demonstrate their capabilities and understanding in respect of each of the Evaluation criteria set out below. In addition to the criteria specified below, the State may apply other criteria and have regard to such other matters as, in the State’s absolute discretion, it considers relevant to the evaluation of Proposals and the delivery of the Project. Table 6: Evaluation criteria


6. Requirements for submissions 6.1 Submission requirements Respondents are to provide the information outlined in Appendix B as well as any additional information required by Appendix C and provide the relevant signed versions of Appendix D. Respondents should note that the State does not require Proposals to incorporate designs or costing for the Project at the EOI Phase.

6.2 Lodgment Details via RMIT University DLS Learning Hub for BUIL1154 [Note only one submission per SPV team]. The closing time for submission of Proposals is 2.00pm on Thursday 02 June 2011. The closing time of 2:00pm is defined as 2:00pm Australian Eastern Standard Time, or 2:00pm Australian Eastern Daylight Time, as determined by Telstra’s Recorded Time Service (Tel: 1194). NOTE: The State reserves its right, in its absolute discretion, to accept or reject any Proposal lodged after this time.

7. General terms and conditions 7.1 Communications All communications to the Project Directors [GAM/VD] are to be submitted via email to the following address: [email protected] Responses to any clarification questions in relation to the EOI may be provided to all persons who have registered their interest via the http://ppp-club.ning.com website. Where a Respondent is of the view that a clarification question is not of a general nature, but relates to proprietary aspects of a Respondent’s Proposal, the Respondent may identify that question as such. If the Project Director agrees that a question relates to proprietary aspects of the Respondent’s Proposal, the response will not be circulated to other Respondents. If however the Project Director is of the view that the question is not proprietary, the Project Director will advise the relevant Respondent, who will then have the option to withdraw the question. If the Respondent continues to request a response to that question, the question and the response will be circulated to all interested parties.

7.2 Clarification process The State may request written clarifications or conduct clarification meetings during Thursdays’ PPP Workshops with Respondents as part of the EOI evaluation process. Respondents will be notified if they are required for clarification discussions and the nature of the clarifications being sought. The State reserves its right, in its absolute discretion, to enter into any discussions, or written communications with any Respondent to seek clarifications and obtain additional information to enable evaluation of a Proposal without undertaking similar discussion or written communications with any other Respondent.

7.3 Discussions with key stakeholders Potential Respondents must not contact State Participants and Project Partners to discuss any aspect of the Tender Process except as provided for in Section 7.1.


7.4 No Legal Relationship This Invitation for EOI is not an offer. No legal or other obligation, other than as specified in the Confirmation Letter, will arise between the Respondent and DH, or any other of the State Participants until formal legal contracts have been entered into.

7.5 Confidentiality and proprietary information This Invitation for EOI is subject to copyright vested in the State. A Respondent may only copy, save electronically, or otherwise reproduce this Invitation for EOI for the purposes of preparing and submitting its Proposal. A Proposal becomes the property of the State upon submission, and will not be returned to the Respondent. The State will hold all Proposals in confidence so far as the law permits, although responses by Respondents on commercial principles, risk management issues and the additional information sought in Appendix B may be taken into consideration by the State in the development of the Project Agreement for release with the RFP. Without limitation, each Respondent authorises the State to use and reproduce the whole or any portion of the Respondent’s Proposal for the purposes of evaluation. Any personal information collected as part of the Tender Process will be handled in accordance with the Information Privacy Act 2000 (Vic). Any intellectual property rights that may exist in a Proposal will remain the property of the Respondent. Any element of a Proposal considered to carry any intellectual property rights should be clearly identified by Respondents. Where the State, in its absolute discretion, determines that such elements are subject to such a right, then the State will treat that element as protected. Lodged Proposals will, to the extent that they contain information that is not in the public domain, be held as Commercial-in-Confidence. By lodging a Proposal, the Respondent licenses the State Participants to copy, adapt, modify, disclose or do anything else necessary in the State’s sole discretion, to all material (including that material which contains any intellectual property rights of the Respondent or any other person), contained in the Proposal, for the purposes of the Tender Process, evaluating and clarifying the Proposal and in relation to commercial principles, risk management issues and additional information provided under Appendix B, for the development of the Project Agreement.

7.6 Variations to this Invitation for EOI The State reserves the right, in its absolute discretion and at any stage, to cancel, add to, or amend the information, terms, procedures, evaluation process or protocols set out in this Invitation for EOI, without giving any reasons to any Respondent and without any liability to any Respondent Member of any third party (or any of their respective officers, employees, agents, affiliates or advisers). The State will however advise Respondents of any such action within a reasonable time.

7.7 Collusive tendering Respondent Members must not engage in any collusive tendering, anti-competitive conduct or any other similar conduct with any other Respondent or any other person in relation to the preparation or lodgement of a Proposal.

7.8 Related Parties The State requires Respondents to identify any Respondent Member that is a Related Party of


a Respondent Member within another Consortium. Failure to do so may result in a Short Listed Respondent being disqualified as a Short Listed Respondent.

7.9 Probity A Respondent Member must not offer any incentive to, or otherwise attempt to, influence any of the persons who are either directly or indirectly involved in the evaluation of Proposals, or in the awarding of any subsequent contract. If the State determines that a Respondent Member has violated this condition, the Respondent may be disqualified from further consideration.

7.10 Probity Practitioner Pitcher Partners has been appointed as Probity Practitioner for the Tender Process including this Invitation for EOI Phase. The Probity Practitioner is directly accountable to DH. The role of the Probity Practitioner is to advise on and monitor the procedural integrity throughout all phases of the Project. Respondents must immediately advise the Probity Practitioner (his contact details are set out below) of any concerns about the probity or integrity of the Tender Process, including the process of this EOI Phase, so that the matter may be considered and remedied where appropriate. Respondents must set out the issue in question and how it impacts on the Respondent's interest, any relevant background information and the outcome they desire. Because any delay in notifying the Probity Practitioner may prejudice the rights of other Respondents, each Respondent agrees that unreasonable delay in notification of any concerns precludes the Respondent taking action, legal or otherwise, based on those concerns. Probity Practitioner Pitcher Partners Level 19, 15 William Street Melbourne Vic 3000

7.11 Change in circumstance Each Respondent must inform the State promptly in writing of any material change to any of the information contained in the Respondent’s Proposal, and of any material change in circumstance that may affect the truth, completeness or accuracy of any information provided in, or in connection with, the Proposal. Once the State has selected Short Listed Respondents, any change to or addition to the Respondent Members (of a Short Listed Respondent) will require the written approval of the State if the Respondent is to remain as a Short Listed Respondent which may be given or withheld in the State’s absolute discretion.

7.12 Freedom of Information The Freedom of Information (FOI) Act applies to the information provided by Respondents in their Proposals. Respondents should note that the FOI Act allows members of the public rights of access to documents of the State and its agencies. All or part of the information provided by Respondents may be disclosed to third parties if there is a requirement to do so under the provisions of the FOI Act. Any information that is commercially sensitive or confidential must be marked “commercial and confidential”. This special notation must not be used unless the information is genuinely confidential. Marking information as “commercial and confidential” will not necessarily prevent disclosure of the information in accordance with the FOI Act. Any decision to release information will be


determined by the requirements of the FOI Act. Respondents will not be entitled to make any claim in relation to any actions taken in relation to, or under, the FOI Act.

7.13 Disclaimer The State has prepared this Invitation for EOI to give potential Respondents background information on the Project. The State Participants do not give any warranty, or make any representations, express or implied, as to the truth, completeness or accuracy of the information contained or referred to in this Invitation for EOI or any information which may be provided in connection with it. The State expressly disclaims any and all liability relating to or resulting from the use of such information by any Respondent Member or other third party in the preparation of a Proposal.

7.14 Costs of preparation of proposals The State Participants will not, under any circumstances, be responsible for any costs or expenses incurred by any Respondent Member or any other third party (or any of their respective officers, employees, agents, affiliates or advisers) in the preparation and lodgement of a Proposal.

7.15 Evaluation process The State is not required, and does not intend, to release any details regarding the evaluation process. Respondents who are not short-listed to proceed to the RFP Phase of the Tender Process may make a formal request to the Project Director for a debrief.

7.16 Reliance on information By submitting a Proposal, the Respondent: › warrants to the State Participants that the information contained in its Proposal is true, accurate and complete as at the date on which it is lodged, and may be relied upon by the State in its selection of Short Listed Respondents, and › acknowledges that the State will rely on the above warranty and undertaking when evaluating the Proposal. 7.17 Conflict of interest Any Respondent with any actual or potential conflict of interest in relation to its potential involvement in the Project must declare that interest to the State as soon as it is identified, and whether it has been identified before or after its submission of its EOI response. Please refer to the National PPP Guidelines Volume 2: Practitioners’ Guide for guidance on conflict of interest matters. Where such potential or actual conflicts of interest arise after EOI submission, such notification shall be made in writing to the Project Director.

7.18 Probity checks By providing a Proposal, the Respondent, including its directors and key personnel, consent to probity checks being conducted prior to any evaluation being finalised. Such probity checks may include investigations into commercial structure, business and credit history, prior contract compliance and any criminal records or pending charges. They may also include interviews with any professional referees nominated and research into any relevant activity that is or might reasonably be expected to be the subject of criminal investigation. The Respondent agrees if requested by the State to obtain such consents from individuals as are required by law to be obtained to such probity checks and criminal investigations.

7.19 Addenda The State may issue addenda to this Invitation for EOI to modify or clarify the Invitation for


EOI in any manner and all such addenda shall become part of this Invitation for EOI.

7.20 Probity and Process Deed Short Listed Respondents will be required to enter into a probity and process deed. This deed will regulate the terms and conditions under which confidential information is disclosed to Short Listed Respondents, then to Respondent’s Member or Related Party Respondent Member depending on what term is used (if applicable), and will outline the probity requirements and process which will apply in respect of RFP Responses.

7.21 Other rights The State reserves the right, in its absolute discretion, at any time during the EOI Phase of the Tender Process to: › require additional information from a Respondent › perform security, probity and/or financial checks and procedures in relation to the Respondent, each Respondent Member and each party with an interest in the Respondent or a participation in the Proposal › terminate further participation in the Tender Process by any Respondent › change its requirements, including, at any stage, cancelling, adding to or amending the information, terms, procedures, evaluation process and protocols set out in the Invitation for EOI › change the structure or timing of the selection process or the basis on which Proposals are required, evaluated or accepted › change the basis on which Respondents may, or are required to, participate in the Tender Process › reject any or all Proposals at any time for any reason › reject or accept late Proposals › reject or accept non-conforming Proposals › record and transcribe the proceedings of any individual or industry briefing session with one or more Respondents and circulate that material as it thinks fit › publish the names of Respondents, Short Listed Respondents or the Preferred Proponent(s) › change the identity of the State entity which will enter into the Project Agreement or be responsible for management and administration of the Invitation for EOI and evaluation of the Proposals › change the Project Scope › not proceed with the Project, and › revert to public sector delivery of the Project.


Appendix A: Additional information The following information is available in the public domain and may assist Respondents. › National Public Private Partnership Policy and Guidelines; www.infrastructureaustralia.gov.au › Metropolitan Health Strategy (2003); www.health.vic.gov.au/metrohealthstrategy/strategy.pdf › Partnerships Victoria; www.partnerships.vic.gov.au › Growing Victoria Together (March 2005); www.growingvictoria.vic.gov.au › A Fairer Victoria; www.dpc.vic.gov.au/ › Victoria: A Better state of health; http://www.health.vic.gov.au/archive/archive2008/betterstate/better-state-health.pdf › Victoria’s Health Action Plan; http://www.health.vic.gov.au/cancer/vcap.htm › Health Services Framework; http://www.health.vic.gov.au/cancer/framework.htm › Innovation: Victoria’s Future; http://www.business.vic.gov.au/busvicwr/_assets/main/lib60027/5039%20vis_web.pdf › Victorian Biotechnology Strategic Development Plan; http://www.business.vic.gov.au/busvicwr/_assets/main/lib60041/final%202007%20bsdp. pdf › Healthy Futures; http://www.business.vic.gov.au/busvicwr/_assets/main/lib60149/lifesci_web.pdf › Melbourne 2030: Planning for sustainable growth; http://www.dse.vic.gov.au/melbourne2030online/ › Victorian Transport Plan; http://www4.transport.vic.gov.au/vtp/ As noted in Section 1.4.4, the following confidential information is available to Respondents to assist in understanding the Project, subject to signing a disclaimer and confidentiality deed in a form satisfactory to the State for the documents that are not public New Bendigo Hospital: http://www.newbendigohospital.org.au/new_bendigo_hospital.asp Design principles: http://www.newbendigohospital.org.au/media/documentDownloads/Project%20and%20Design%20Principles_consultation%20draft.pdf Vision: http://www.newbendigohospital.org.au/media/documentDownloads/Vision%20Draft%207%2009%2003%202011.pdf


Appendix B: Information to be provided by Respondents The following information is to be provided by each Respondent as part of its response to this Invitation for EOI. This information will be evaluated against the Evaluation Criteria set out in Section 5. Respondents are requested to clearly associate their responses with the information requirements listed below. Please note that all information requirements, unless otherwise specified, are targeted at the Respondent as a whole, rather than separately at Respondent Members. Respondents are requested not to provide overly elaborate or lengthy proposals. Where specified below, Respondents should follow the maximum prescribed page limits. Where the Respondents wish to provide additional material in support of their Proposals, these materials should be provided as appendices to the Proposal.

Part A: Details of the Respondent The following information should be provided [no page limit]: a. Details of the Respondent, and each Respondent Member, including - Registered and trading names of entity - Address - Brief overview of entity’s scope of operations and structure, and - Proposed role and function of entity. b. Contact details (i.e. name, title, telephone, fax and email address) for the key representative of the Respondent that the State may consult with throughout the Tender Process. c. Disclosure of all Related Parties of a Respondent Member that may be a Respondent Member of another Respondent. d. Details of any areas in which the Respondent and its Respondent is currently incomplete and proposed approach and timing of obtaining the relevant expertise (including the identity of parties that will be considered for inclusion within the Respondent and its Respondent and the status of any current discussions with these parties).


Part B: Information required against evaluation criteria 1 Delivery of project vision, objectives and understanding of key issues a. The Respondent’s understanding of, and proposed approach to supporting the State to deliver, the Project Vision and Objectives [20 pages]. › Outline your proposed approach to delivering, or assisting the State to deliver, the Project Vision and Objectives. › Identify what you believe each of the Project Partners is aiming to achieve within the Project. b. The extent to which the Respondent understands the key issues, risks and opportunities for the Project and can propose (or demonstrate the capacity to propose) solutions [20 pages]. › Identify what you consider are the six most significant issues for the Project, why you consider these to be the significant issues and where appropriate provide details of the approach/solution you are likely to adopt for dealing with these issues. The Respondent is asked to focus on issues relevant to the Project SPV. and for which it can impact on and support the State to achieve the Project Objectives (Note: For the avoidance of doubt, these issues are not expected to be ranked in any order of priority). 2 Experience and capability a. Relevant recent experience of the Respondent Members as applicable in relation to: Design [10 pages] › the design of tertiary hospital facilities, biomedical research institutions and/or learning spaces › projects of a similar size and complexity › projects of acclaimed architectural and urban design quality as demonstrated through peer recognition › experience in design of leading edge ESD outcomes, and › projects utilising a PPP delivery model. Construction [10 pages] › the construction and commissioning of tertiary hospital facilities, biomedical research institutions and/or learning spaces › projects of a similar size and complexity › experience in delivering leading edge ESD outcomes › construction of hospital facilities on an operating hospital site, and › projects utilising a PPP delivery model. Facilities Management [10 pages] › the commissioning and facilities management of tertiary hospital facilities, biomedical research institutions and/or learning spaces › projects of a similar size and complexity › experience in delivering and sustaining ESD objectives, and › projects utilising a PPP delivery model. › Provide details of relevant projects that demonstrate the experience and capability of each of the Respondent Members as applicable in the areas listed above. The State is seeking evidence of experience and capability in relevant and recent projects. › Details of projects should include: - a brief description of the project, its size, location and the entities involved - contact details for a current client reference source for the project - scope of the role performed by the relevant Respondent Members involved in the project, and


- a brief description of how the project performed/is performing during design and construction and operational phases (including identification of any key issues/problems encountered) and lessons learned. b. Relevant recent experience and capability of the Respondent and/or Respondent Members in working together as an integrated team on significant projects [5 pages]. › Provide details of previous experience of the Respondent Members working together as an integrated team. c. Relevant recent experience of the project sponsor in the delivery of PPP projects [10 pages]: - of a similar size and complexity, and - incorporating tertiary hospital facilities, biomedical research institutions and/or learning spaces. › Provide a summary of the project sponsor’s experience with PPP-style projects, noting the stage of development of each project. › Provide a description of the sponsor’s proposed degree of participation in the bid development process, design development process, and their proposed approach to participating in managing the construction and commissioning of new facilities. › Provide a description of the sponsor’s approach to building and maintaining relationships with the State and the service(s) providers during the operating phase. › Provide a description of the sponsor’s approach to managing the participation of any third party shareholders. 3 Project approach a. Respondent’s capacity to deliver innovative approaches and to achieve value for money for each phase of the Project, focussing on the bid preparation, design development, construction and facilities management phases [10 pages]. › Provide a description of the Respondent Members’ capability and experience of achieving innovation in design, construction, financing and facilities management from previous projects that are considered to have resulted in value for money. › Outline the opportunities in the Project that the Respondent has identified for innovation targeted at improving value for money and the Respondent’s strategy for realising them. › Outline the opportunities that the Respondent has identified for innovation targeted at improving the extent to which the State can achieve the Project Objectives, and the Respondent’s strategy for realising them. Where relevant, provide examples of innovative approaches used in the past that resulted in supporting achievement of project objectives. › Describe the proposed approach to modifications, in particular approaches which would facilitate the efficient handling of modifications during the design development process and approaches to ensuring that value for money outcomes are achieved. b. Appropriateness to the Project of the proposed interaction amongst the design team, the builder and the service provider during the bid development and design development process to ensure that a whole of life approach is taken to designing and constructing the new facilities [10 pages]. › Describe the proposed role of the service provider in the bid development and design development processes. › Describe as applicable, the proposed contractual relationship or approach to managing interfaces, between the service provider and the builder, through the construction, commissioning and operation phases.


c. Appropriateness to the Project of the proposed role, scope and extent of the services sought from the design team throughout project delivery through to commissioning of facilities, to ensure that design outcomes are fully realised [10 pages]. › Describe the proposed role, scope and extent of services that the design team will provide during the design, construction and commissioning phases. › Identify proposed strategies or processes to be applied to this Project, other than the design team’s involvement addressed immediately above, to ensure that design outcomes are fully realised. d. Demonstrated availability of the Respondent, and each Respondent Member, to successfully deliver the design, construction and service delivery roles within the required timeframe [5 pages]. › Provide details, including project name, client details, proposed delivery timeframe, current status and project value, of the Respondent’s and each Respondent Member’s: - current workload, and - anticipated workload at the proposed time for delivery of this Project. › Confirm the capacity and commitment of the Respondent and each Respondent Member to deliver this Project, including that of their respective nominated key personnel. 4 Commercial issues and risk management a. Appropriateness to the Project of the contractual and commercial structure proposed by the Respondent [10 pages, plus appendix for equity commitments]. › Outline the contractual and service delivery structures proposed by the Respondent for the Project. › Provide details and diagrams of the proposed ownership of the Respondent entity (both intermediate and ultimate) and the (proposed) equity contributions. The information required includes: - a statement of intent from the proposed provider(s) of equity outlining their commitment to their investment - a statement of the principles on which the equity is invested, including consideration of the expected term of the proposed investment in the Respondent. - a description of the approach to managing the investment over its expected term - the role of the investor in the day to day management of the Project. › Outline (including providing diagrams) the commercial, contractual and service delivery structures proposed by the Respondent for this Project. b. Appropriateness to the Project of the proposed risk allocation among Respondent Members [10 pages]. › Outline the proposed risk allocation of Project risks among the Respondent Members and a description of the approach proposed by each Respondent Member to manage the risks allocated to them. › Provide information on the performance support proposed by Respondent Members to mitigate the Respondent’s exposure to Project risks, including the form of support, the provider of it, the key terms on which it would level and type of any guarantees of parent support to be provided including any limitations on size or duration of support, and the remaining due diligence required by the provider.


5 Financial capacity and capability a. Financial capacity of the Respondent and each Respondent Member in the context of the obligations and risks allocated to them [no page limit]. › Provide, for each Respondent Member the audited financial statements (or other equivalent financial information where financial statements are not available) which contains details of their detailing the financial performance over the past three reporting financial years. For the avoidance of doubt, this information requirement applies to the Respondent if it is currently a going concern, the sponsor(s), builder(s), and services providers. Where an entity is providing parent support be provided, the parent entity’s financial statements for the past three reporting years must be provided. › Financial statements may be provided in electronic format only. › In addition, provide details of any of the following: - material regulatory or law enforcement agency investigations of the Respondent, any Respondent Member or any of their Related Parties - material instances of contract termination for cause against the Respondent or any Respondent Member - material current or pending litigation against the Respondent, any Respondent Member or their Related Parties or principals - liquidation or deregistration proceedings against the Respondent or any Respondent Member since the date of the last audited financial statements - material contingent liabilities of the Respondent or any Respondent Member - recent or imminent mergers/acquisitions (as can be notified) - any other event or factor that could have a material impact on the financial, and - changes in the capacity and standing of the Respondent or any Respondent Member since the date of the most recent financial statements, including any recent or imminent mergers/acquisitions. b. Capability and experience of the Respondent and Respondent Members in raising funding (debt and equity) for projects of a similar size and complexity [10 pages]. › Outline the capability of the Respondent and Respondent Members to raise funding for PPP-style projects. › Provide examples of experience in raising funding on projects of similar size and complexity. c. Appropriateness to the Project of the proposed strategies to achieve competitive funding outcomes and deliver certainty of funding [10 pages]. › Outline the proposed approach to sourcing debt and equity finance for the Respondent on the most favourable terms for the State including: - summary of the state of financial markets as it is relevant to procuring financing for this Project - summary of the financing structures considered achievable and efficient for the Project - consideration of the need for any support from the State and to the extent it is applicable, the proposed approach to seeking support and integrating it into the approach to sourcing financing - description of the proposed approach to engaging with debt providers, obtaining commitments to invest in the Respondent, including progress to date with obtaining such commitments, and - description of the proposed approach to engaging with equity providers, obtaining commitments to invest in the Respondent, including progress to date with obtaining such commitments.


Part C: Additional information [no page limit] The information requested below will not form part of the evaluation of Proposals. However, Respondents are requested to provide feedback on the following: › Provide feedback on the proposed timetable, in particular the period the Respondent requires to develop a response to the RFP. › Previous State hospital projects have had a 25 year operating period. Provide any comments in relation to the merit of considering a different term. › Comment whether the State would achieve better value for money if the State funds the North Side component of the project via (a) progress payments during the construction phase, (b) completion payment at the end of construction or (c) the payment mechanism during the operating phase. › Provide views on what interface you would like to have with the State during the tender process, including frequency, timing, level of interaction and content of workshops during the RFP Phase. Detail any improvements (or areas for improvement) that you consider might be made from processes adopted in previous State projects.


Appendix C: Related Party Probity Principles Please refer to the National PPP Conflict of Interest guidance material available at www.infrastructureaustralia.gov.au Related Party Respondent Members › Respondents are to identify in their Proposal any Respondent Member that is a Related Party of any Respondent Member of any other Respondent. › All Respondent Members of each Respondent who may be a Related Party are also to be identified in the Proposal. › No person can be a Respondent Member of more than one Respondent. › All Respondent Members, executive managers and board members of the Related Party Respondent Member may be required to sign process and confidentiality agreements prior to issue of the RFP. › No confidential information about a Proposal is to be disclosed to a person unless the person is a Respondent Member or a member of the relevant holding company board subcommittee (see below for requirements for the board sub-committees) and has complied with these principles. › Each Related Party is to have all required measures in place to prevent access to confidential information by any person who is not a Respondent Member or a member of the relevant holding company board sub-committee. › Each Related Party will be required to enter into a process agreement satisfactory to the State. The process agreement will include detailed commitments from the Respondent to ensure compliance with these principles. › Participation in the Tender Process is conditional on receiving signed process and confidentiality agreements prior to the commencement of the RFP Phase. These agreements will be provided to Respondents when short-listed. › The State has the right to disqualify Respondents if a breach of the process or the agreements occurs at any time during the process and may result in the calling in of some or all of any bid bond (or other security). No compensation will be payable. Holding Company of Related Respondent Members › If the Related Party's group policy requires approval of the Proposal at a holding company level (or other board level, eg. ultimate parent level), the holding company (or parent company as the case may be) must establish a board sub-committee for each Respondent, with authority to make final decisions. › Where a board sub-committee is required to be established, then the full Board cannot be shown any information of any individual Proposals. › No person can be a member of more than one board sub-committee. › All holding company board members (whether members of a board sub-committee or not) and executive managers may be required to sign process and confidentiality agreements. › Immediately prior to, and as a condition precedent to, contract execution, all holding company board members and executive managers must sign statutory declarations confirming compliance with obligations under any relevant process and confidentiality agreements. › The holding company is to have all required measures in place to prevent access to confidential information relating to one Proposal by any person who is not a Respondent Member or a member of the board sub-committee for the relevant Respondent. › The holding company is also subject to oversight by an additional independent probity practitioner appointed by the State. These probity practitioner costs will be met by the holding company. › The holding company will be required to enter into a process agreement satisfactory to the State. The process agreement will include detailed commitments from the holding company to ensure compliance with these principles.


› Participation in the Tender Process is conditional on receiving signed process agreements and confidentiality agreements from the holding company prior to the commencement of the RFP Phase. › The State has the right to disqualify a Respondent if a breach of the process or the agreements by the holding company occurs at any time during the process and may result in the calling in of some or all of any bid bond (or other security). No compensation will be payable. › If the highest ranked Respondents include Related Parties, DH reserves the right to shortlist the highest ranked independent Respondent ahead of higher ranked Related Party Respondents.


Appendix D: Confirmation letter [Respondent’s letterhead] [Date] Project Directors [GAM/VD] New Bendigo Hospital Department of Health 50 Lonsdale Street Melbourne Vic 3000 Dear New Bendigo Hospital We refer to the Invitation for EOI for the New Bendigo Hospital Project dated May 2011 and attach a Proposal in response to the Invitation for EOI. We acknowledge that we have read and understood the Invitation for EOI and, in particular, the Important Notice and all the terms and conditions as set out in Section 7 of the Invitation for EOI. In consideration of DH agreeing to evaluate this Proposal: a. we agree to be bound by the terms and conditions and give the warranties and acknowledgements set out in Section 7 of the Invitation for EOI b. we agree to accept and be bound by the Related Party Probity Principles (as set out in Appendix C of the Invitation for EOI) and understand that as a condition of shortlisting we will be required to enter into a Probity and Process Deed c. we agree that, if requested by the State, we will provide confirmation of commitment to the Proposal from each nominated participant or sub-contractor d. we agree that, in order to continue to participate in the Tender Process, we may need to provide a security in accordance with the State’s requirements as to amount and terms should one be required by the State e. we confirm for the purposes of the Important Notice, the State’s discretions (and disclaimer) set out in the notice, the basis on which costs will be borne and that we have not relied at all upon the information contained or referred to in the Important Notice included in the Invitation for EOI, and f. we severally indemnify (and keep indemnified) each State Participant against any loss, liability or claim incurred in connection with the Important Notice in the Invitation for EOI. Words and expressions defined in the Invitation for EOI have the same meaning when used in this letter. Yours faithfully [To be executed as a deed poll for and on behalf of each Respondent Member, as applicable]

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