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Market-led proposal frameworks acknowledge that some public needs can be solved as a result of proposals initiated by the private sector and non-for-profits. Market-led proposals are known as unsolicited proposals in some Australian states and territories.
Most Australian governments have market-led proposals (or unsolicited proposals) processes in place. They are supported by guidelines to ensure private sector proposals put to governments are assessed in a timely and consistent way.
Market-led proposals are not a “way around” open tenders, but rather, are a well-delineated pathway for progressing complex and unique proposals. Initial proposals are generally assessed by Treasury officials, before experts from other relevant Departments are brought in to assist with the evaluation as the proposal progresses.
Market-led proposals processes vary between Australian jurisdictions. They generally involve multiple steps, which may include:
  • Pre-submission discussions and review
  • Initial proposal (and initial assessment)
  • Strategic assessment
  • Submission of a detailed proposal (Business Case)
  • A phase of exclusive negotiation, and
  • A final binding offer.
In essence, market-led proposals regimes foster proactivity and reward innovation because they allow new ideas and solutions to be put to government; as opposed to traditional government procurement processes which can tend to seek the same solutions to the same problems, time after time.
Market-led proposals regimes also support the use of new technologies, innovations, modes of delivery and funding models, which would not normally comply with a Request for Proposals, due to the rigid nature of tendering processes.
Several Australian governments have formal frameworks for market-led proposals or unsolicited proposals. These are:
The Government of Western Australia has a specific framework for market-led proposals around the purchase or lease State-owned land to facilitate a specific development proposal:
Brisbane City Council, Australia’s largest local government, also has A Guide to Innovative Proposals to facilitate market-led proposals centered on unique ideas or new innovations.
Additionally, the Commonwealth Government runs an Unsolicited Innovative Proposals (UIP) scheme for proposals to enhance Australia’s Defence capabilities.