Canadian Lawyer InHouse

Apr/May 2011

Legal news and trends for Canadian in-house counsel and c-suite executives

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ANSWERS ALL THREE An RFEI is a request for expressions of interest. The public sector sometimes issues an RFEI to see which companies might be interested in the proposed project. An RFQ is a request for qualifications. The public sector requests companies wishing to participate in the project to submit a description of similar projects they have completed and their qualifications. The public sector then chooses which responding parties should receive the subsequent RFP. A BAFO is a best and final offer. After the RFP evaluation pro- cess, the municipality might ask two or three leading proponents to submit a "best and final offer." FALSE In a privatization, the private-sector company or consor- tium will own the infrastructure asset. In a typical public- private partnership, a P3 transaction, the private-sector party or consortium will design and build the infrastructure and operate and maintain it, but the public sector will own it. In certain types of P3 transactions, ownership of the infrastructure asset could be trans- ferred by the public sector to the private sector at the inception of the contract and then revert back to the public sector at the expiry or earlier termination of the P3 contract. In this project, the munici- pality is looking to the private sector to design and build the rapid transit system and then operate, maintain, and repair it. Since the municipality will continue to own the system and the vehicles, this is a P3 and not a privatization. YES A DBFOM is a design-build-finance-operate-maintain arrangement. Here, the municipality is looking to a private- sector company or consortium to design and build the project, finance the project, and then operate and maintain it. Where there is not a finance component to the P3 arrangement, the appropri- ate acronym would be a DBOM. Where there is no operation and maintenance component, the appropriate acronym would be DBF. YOUR RANKING? One or less correct: might be time to brush up Two or Three correct: not bad, but some further work needed Four correct: impressive NO The municipality is subject to the Ontario Municipal Free- dom of Information and Protection of Privacy Act. Although the design-build contract might very well contain a provision that both parties will not disclose confidential information, such as hourly rates, the provision will say that this is subject to the provi- sions of MFIPPA. If there is a request for disclosure of some or all of the contract under the act, there is no guarantee that the requested information or the full contract will not have to be dis- closed. The process to be followed and the issues that will need to be addressed when such a request is made are governed by MFIPPA. This is much different from a case in which a contract is entered into between two private-sector parties. A daily blog of FEEDS LEGAL 14 • APRIL 2011 LegalFeeds_IH_Apr_11.indd 1 INHOUSE visit 3/11/11 11:36:16 AM Canadian Legal News 1 2 3 4 canadianlaw yermag.com/ legalfeeds

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