Queensland Cancer Centre Project

Queensland Health

Context

In 2022, Queensland Health changed the way capital infrastructure was to be planned and delivered. Several factors, including capacity constraints, population growth, and an increase in clinical activity, were placing pressure on the health system. In response, Queensland Health moved to a strategic, system wide view of service delivery and capital requirements.

As part of the 2022-23 Budget, the Queensland Government allocated $9.8 billion to fund the Capital Expansion Program (CEP), the purpose of which was to expand Queensland’s health infrastructure over a 6-year period. Projects funded under the CEP include upgrades and renewals to 13 sites across the state. The CEP Significant Procurement Plan (SPP) was approved in November 2022.

The Queensland Cancer Centre Project is a flagship within the CEP. The Project will deliver a 47,000 sqm comprehensive cancer facility on the Herston Health Precinct. Whilst part of the CEP, due to its clinical scope and new technologies, state-wide reach and complexities around design and buildability, a project specific SPP was developed for the project. The SPP was approved in August 2023 to engage in an alliance contract model to procure building contractor services for the new facility.

During the development of the QCC procurement strategy, the Department of Energy and Public Works shared the approach to the procurement strategy for the 2032 Olympic Games with Queensland Health. This approach included collaborative principles which presented synergies with which the QCC approach could align. This triggered a review of the QCC’s SPP, transaction procurement strategy and transaction management plan to allow for the genesis of a model to progressively incorporate collaborative contracting principles.

Solution

Metaphic was engaged to update the Queensland Cancer Centre SPP and establish a tailored transaction procurement strategy and management plan for the project. Our approach ensured that the project and program objectives were achievable whilst addressing the centre’s unique complexities, including:

Incorporation of Proton Beam Therapy, a highly advanced cancer treatment with complex technical requirements and limited Australian delivery experience
The project’s location within the Herston Health Precinct presented significant constraints, including challenging interfaces with the existing campus, major inground service diversions, and excavation of up to 30m in high strength rock adjacent to live operations
Uncertainty in the scope due to potential statwide cancer service expansions and the inclusion of meerging therapies such as Proton Beam Therapy.

In alignment with the Department of Energy and Public Works’ procurement strategy for the 2032 Olympic Games, the SPP was amended to incorporate a delivery model built on collaborative principles. This model introduced 3 distinct phases: an establishment phase, project development phase and project delivery phase.

The revised approach prioritised best for project and value for money outcomes by progressively embedding collaborative contracting principles throughout the RFP Stage 2 (project development) phase.

Metaphic developed a transaction procurement strategy and management plan to align with the SPP’s requirements during the project development phase. This phase involved directly engaging preferred tenderers (identified as non-principal parties) through a multi-party Project Development Agreement, utilising a cost reimbursable model. The aim was for these non-principal parties to collaboratively deliver a combined project proposal at the conclusion of the project development phase.

In developing the evaluation methodology, Metaphic collaborated closely with the project delivery teams and central procurement to define the key aims, objectives and principals underpinning both qualitative and quantitative evaluation measures. The methodology, outlined in the two-stage ECI procurement plan, included the ECI and RFO evaluation process, the assessment criteria, and the weightings applied to responses. This evaluation plan established a robust and formal method of evaluation for CEP projects.

Key objectives of the evaluation methodology

The transaction evaluation methodology was designed to help Health Infrastructure Queensland (HIQ) achieve the following key objectives:

Ensuring the project embodies HIQ’s core values and long-term goals
Identifying and leveraging opportunities for innovation
Meeting operational requirements for the full lifecycle of the project
Addressing site constraints, conditions and constructability issues
Ensuring the project meets budget, scope, quality and timeline requirements.

2023

Metaphic Project Start Date

2024

Metaphic Project Completion Date

1.7

Billion dollar project

47,000

Square metre comprehensive cancer facility

Two-stage ECI and RFO evaluation process

The two-stage evaluation process comprised:

Interactive ECI phase, focused on collaboration and engagement to assess initial proposals
Request for Offer (RFO) assessment:

Qualitative scoring – conducted by the evaluation panel
Project price assessment – evaluating financial submissions
Design and delivery approach – reviewing proposed design solutions and execution strategies.

The evaluation was conducted both during the ECI phase (interactive collaboration) and through formal scoring and review of the RFO submissions. This included a thorough assessment of teaming capability and partnership performance, independently evaluated by organisational psychologists.

By adopting Metaphic’s interactive, collaborative RFO Phase 2 Stage 1 ECI framework (delivered under the Project Development Agreement), Health Infrastructure Queensland (HIQ) implemented a staged price-quality matrix evaluation. This approach enabled HIQ to drive best for project outcomes whilst ensuring alignment with their strategic goals.