1. Syed Zaidi, P.Eng. PM (Stanford), PhD. Director, Strategic Partnerships Alberta Infrastructure. Government of Alberta Canada Richard. B. (Dick) Innes, C.A. Fairness Auditor Alberta Public Private Partnerships Projects Canada

2. OVERVIEW  Introduction to the Concept of “Fairness Auditor”  Overview of the PPP Procurement Process in Alberta  Role of Fairness Auditor and Required Services  Concluding Remarks 2

3. Fair Open Transparent ConfidentialitySchedule CertaintyProcess Integrity PPP PROCUREMENT PRINCIPLES PPP PROCUREMENT GUIDELINES CONTEXT 3

4. FAIRNESS IN THE CONTEXT OF PPP The Government followed the process set out in RFQ* and RFP*. The evaluation criteria and evaluation procedures were defined and applied by the Government The procurement process and outcomes were not influenced by any biases All private proponents were treated consistently throughout the procurement process * RFQ ~ Request for Qualification.*RFP~ Request for Proposal. 4

5. KEY CONSIDERATIONS  The role of the Fairness Auditor is defined and mandated by Alberta's Public- Private Partnership Framework and Guidelines.  Fairness Auditor is retained by the Government through competitive procurement and is appointed by and reports to the Project Oversight Committee. The Fairness Auditor must be independent of the GovernmentMust be retained in procurement process and before RFQThe Fairness Auditor must have a professional designation* * e.g. professional engineer, chartered accountant, lawyer, etc. 5 Project Oversight Committee Project Team PPP Proponents Fairness Auditor

6. OVERVIEW OF PROCUREMENT PROCESS 12-16 Weeks 32-40 Weeks2-8 Weeks  Announce Project.  Issue RFP.  Execute Project Agreement.  Hire Consultants / Advisors.  Open RFP Electronic Data Room.  Financial Close.  Hire Fairness Auditor.  Provide Site Access.  Prepare Draft Agreement Documents / Schedules.  Receive and Evaluate Staged Technical Submissions.  Hold Information Meetings.  Arrange Technical Meetings with Proponents  Open RFQ Electronic Data Room.  Receive Comments on Draft Agreement Documents.  Issue RFQ and Receive Submissions.  Receive and Evaluate Financial Submission.  Evaluate Submissions.  Select Preferred Proponent.  Shortlist 3 Proponents. RFQ STAGE RFP STAGE CLOSING 6

7. The Government adhered to the process set out in the RFQ or RFP The evaluation criteria and evaluation procedures were defined and applied in accordance with the RFQ and the RFP The procurement process and outcome were not influenced by any biases All respondents and proponents were treated consistently throughout the procurement Make recommendation to the Government to address any particular situation to maintain the fairness of the procurement process Provide formal signed reports and independent opinion at each phase of procurement ~ including final report ROLE OF FAIRNESS AUDITOR 7

8. Mandated by Alberta PPP Framework and Guidelines Common practice in Canadian PPP procurements including in Alberta Role is widely accepted and appreciated by public and private sectors in PPP procurement Started seeing its influx into complex non- PPP procurements FAIRNESS AUDITOR SERVICES Background 8

9. 9 Document and Respondent Evaluation forms Review Kick-Off meeting Instructions to Review Teams ~ Individual Conflicts / Biases Respondents Evaluation and Scoring Observation / Proponents Selection Report on RFQ Process FAIRNESS AUDITOR ROLE Request for Qualification (RFQ) Phase

10. 10 Document Review ~ RFP ~ Instruction to Proponents and Draft Contract Attend all Proponents' Technical and Agreement Meetings Actively Monitor Fairness on a Meeting by Meeting Basis Review all Request for Information (RFIs), Q&As, Addenda and any Correspondence with Proponents Observe the Technical Submissions Evaluation Process. Attend and Review Financial Submission and Proponents Ranking FAIRNESS AUDITOR ROLE Request for Proposal (RFP) Phase

11. 11 PROJECT TEAM INTERACTION General Requirements Participate in all internal Government project meetings ~ various levels Address any fairness issues as they occur Review pertinent minutes of meetings, notes and correspondence

12. 12 Attend Contract signing and Financial Close Ensure compliance with Proponent selection criteria Issue final report on the fairness of the process FAIRNESS AUDITOR ROLE Contract Close-Out Phase

13. 13 FAIRNESS AUDITOR REPORTING Principles Keep it simple. Parameters ~ Activity~ Opinion No surprises Clear opinion on process application and consistency, bias and overall fairness

14. CONCLUDING REMARKS Provides Integrity to the Procurement Process Third Party Review and Oversight Provides Comfort to the PPP Proponents Enhances Government's Credibility IMPORTANCE OF FAIRNESS AUDITOR IN PPP PROJECTS 14

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