5 Alternative proposals for a new police headquarters

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

1 Audit context

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.

Audit overview

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.

Acronyms

AFP Australian Federal Police
BCR benefit-cost ratio
CBA cost-benefit analysis
CBD central business district
DEDJTR Department of Economic Development, Jobs, Transport and Resources
DJPR Department of Jobs, Precincts and Regions
DoT Department of Transport
DPC

Appendix A. Submissions and comments

We have consulted with Cenitex and DTF, 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:

  • Cenitex
  • DTF

RESPONSE provided by the Chief Executive Officer, Cenitex