Contract and franchise design

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Long term contract and franchise design

Effective contract and franchise design in long term contracts is essential to ensuring that the contract is effective across its life, providing for an on-going effective allocation of risk, appropriate operational performance and value for money for both parties.

NineSquared consultants have experience in leading and contributing to long term contract and franchise design, particularly in transport services and technology contracts. Our experience includes advising on the overall design, applying economic and commercial principles to identify appropriate long term funding mechanisms, performance management arrangements linked to incentive structures, the benchmarking of services and costs and the consideration of the likely impact of long term contracts on market outcomes.

We have assisted in translating contract design requirements into procurement and evaluation processes to support the achievement of organisation objectives. This has included undertaking a range of market engagement processes including providing advice and assistance in relation to market sounding and negotiation design.

Bid assistance

Our work with government in procurement of long term contracting arrangements over a long period of time also means we can bring a unique perspective to private sector organisations in their preparation, bid design and execution of their bid strategy in relation to long term government contracts.

Our experts

Please contact one of our experts in contract and franchise design for more information on our capabilities and experience.

Robin Barlow – Director. Robin has more than 20 years experience working in the transport sector and in government. He has worked for the Commonwealth government as an economist at the Industry Commission and for the Queensland Government where he held a number of senior positions within TransLink.

Tom Frost – Director. Tom is an economist who has been consulting to industry and government for almost 20 years. He has extensive experience in the provision of regulatory and economic advice to clients. He has provided advice to clients across Australia and internationally regarding investment in transport infrastructure.

Steve Richards – Director. Steve is an accomplished strategy, policy and infrastructure advisory leaders in the public and private sectors, with extensive and strong experience across both economic and social markets. Steve’s expertise includes team management and leadership, organisational reviews, project leadership and assurance (including Gateway Reviews), business case development, due-diligence, major and complex procurement including Public Private Partnership projects and international development assistance.

Selected projects

A selection of recent projects in contracting and franchise design is shown below:

Queensland Bus Contracting Reform

Development of new bus contracting models for services across the State

Goonyella Abbot Point Expansion (GAPE) Review

Review of Aurizon Network’s proposed pricing of the GAPE below rail services

Risk sharing model for new mining technology

Developed an innovative risk sharing model between Peabody and Yancoal to facilitate the introduction of top coal caving technology into a Queensland mine for the first time