Undreading unsolicited proposals in PPPs
DO Philippine laws and regulations allow unsolicited proposals (UPs) in public-private partnerships (PPPs)? What are the advantages of UPs? Are there competition, accountability and transparency in UPs? What are the basic differences between solicited and UP procedures?
To distinguish, solicited or open-bidding procedures originate from the government, while in UPs, the project studies are prepared by the private-sector proponent (PSP). Once a UP is accepted, the PSP becomes an original proponent (OP) and no other proposal for the same project will be entertained by the government.
In open bidding, all bids are measured against the parameter set by the implementing agency (IA). In a UP, the proposal of the challengers must be better than the negotiated terms between the OP and IA. Depending on the modality, the OP has the right to match or the opportunity to outbid superior offers. If there is no challenger, the project is awarded to the OP. A premium is given the OP for taking initiative and spending for the preparation of the study with no assurance of getting the PPP contract.