Significant Procurement Plan Review

Queensland Health

Context

In 2022, Queensland Health adopted a new approach to planning and delivering health capital infrastructure in response to system pressures, including capacity constraints, population growth, and increased clinical activity. This shift introduced a strategic, system-wide perspective on service delivery and capital requirements.

As part of the 2022-23 Budget, the Queensland Government allocated $9.8 billion for the Capital Expansion Program (CEP) to expand health infrastructure over six years, covering upgrades and renewals across 13 sites statewide.

The CEP Significant Procurement Plan (SPP) was approved in November 2022. However, resource and labour shortages, declining productivity, and supply chain disruptions led to significant cost escalation and project delays. Contractors began pricing in these risks and uncertainties, further driving up costs.

In August 2024, Metaphic was engaged to revise the CEP SPP and develop an enhanced procurement strategy. This incorporated collaborative contracting principles, two-stage variant contracts, and alternative sourcing options to better manage market challenges and achieve program objectives.

However, Health Infrastructure Queensland (HIQ) lacked established processes to assess and implement these alternative sourcing options. Metaphic worked to bridge this gap, ensuring the CEP’s effective delivery despite challenging market conditions.

Solution

Metaphic was engaged to develop a program-wide, two-stage Early Contractor Involvement (ECI) evaluation plan. Collaborating with procurement, legal, and program management teams, Metaphic led the design of processes and actions for Health Infrastructure Queensland’s (HIQ) tender evaluation panel to assess Request for Offer (RFO) submissions for Stage One of the ECI contracts.

To establish a robust evaluation methodology, Metaphic worked closely with project delivery teams and central procurement to define the key aims, objectives, and principles underpinning both qualitative and quantitative evaluation measures. The methodology outlined the ECI and RFO evaluation processes, including assessment criteria and response weightings, providing a structured approach for evaluating CEP projects.

At its core, the transaction evaluation methodology aimed to help HIQ achieve the following objectives:

Embodying the HIQ vision and philosophy
Identifying and capitalising on innovation opportunities
Meeting operational whole-of-life requirements
Addressing site constraints, site conditions, and constructability challenges
Delivering projects within budget, scope, quality, and time parameters.

2023

Metaphic Start Date

2024

Metaphic Completion Date

9.8

Billion dollar capital expansion program

Sites across Queensland

The two-stage ECI and RFO evaluation had two elements:

Interactive ECI
Assessment of a RFO submitted at the end of the ECI:

Qualitative scoring by the evaluation panel
Assessment of project price submitted
Assessment of design solution and delivery approach.

The transaction evaluation was designed to be undertaken throughout the ECI as well as formal scoring and review of the RFO. By adopting Metaphic’s interactive collaborative RFO Phase 2 Stage One ECI, performed under the 2 Stage ECI Design and Construct Contract, HIQ is able to undertake a staged price-quality matrix evaluation driving best for project and HIQ outcomes.