DTF and Victoria Police assessed the Cbus/Australia Post VPC proposal through the five stages of the MLP process between May 2015 and December 2016 with input from the SSP, the Valuer-General and external commercial and legal advisers. The:

Figure B1 on the following page provides a chronology for the assessment of the WGT MLP.

Figure B1
Chronological outline of WGT MLP process

We have consulted with DPC, DTF, DoT, Victoria Police and DJPR, and we considered their views when reaching our audit conclusions. As required by the Audit Act 1994, we gave a draft copy of this report, or relevant extracts, to those agencies and asked for their submissions and comments.

Responsibility for the accuracy, fairness and balance of those comments rests solely with the agency head.

Responses were received as follows:

Since the MLP interim guideline was issued in early 2015, it has included the government objective of ensuring a transparent and fair process, with the highest level of probity and public accountability maintained throughout.

While the state was considering the VPC proposal from Cbus/Australia Post, it received two alternative MLPs for a Victoria Police headquarters, one of which was from the owners of the WTC, which currently houses the Victoria Police headquarters.

Figure 5A
Two alternate MLPs

In May 2015, Cbus and Australia Post submitted an MLP to the state. They proposed to build a new Victoria Police headquarters, the VPC, on a vacant site at 311 Spencer Street in Melbourne's CBD. This site is next to the existing City West Police Complex.

The 2015 interim MLP guideline required VFM assessments for MLPs to include:

Source: http://westgatetunnelproject.vic.gov.au.

In an MLP, the private sector makes an unsolicited approach to government for support to deliver infrastructure or services through direct negotiation rather than a competitive procurement process. The private sector usually asks the government for financial support but may also ask for regulatory or other forms of assistance.

The government issued a new guideline and established a five-stage process for considering MLPs in early 2015 and declared that MLPs would only succeed if found to be unique, VFM and in the public interest.

Context

What is a market-led proposal?

In a market-led proposal (MLP), the private sector makes an unsolicited approach to government for support to deliver infrastructure or services through direct negotiation rather than a competitive procurement process. The private sector usually asks the government for financial support, but may also ask for regulatory or other forms of assistance.