Unsolicited Proposals for Commercial Use of DTP Controlled Land and Infrastructure - Assessment Guidelines (December 2024)

The Department of Transport and Planning (DTP) has land and infrastructure vested in it for public purposes under various transport related legislation, such as the Road Management Act 2004 (Vic) and Transport Integration Act 2010 (Vic). DTP-controlled land and infrastructure plays a crucial role in the development and maintenance of the State’s transport network, contributing to public mobility, connectivity and safety.

Recognising the State’s policies aimed at promoting economic growth, job creation and environmental sustainability, DTP supports the responsible commercial use of DTP-controlled land and infrastructure that align with those objectives. As such, DTP may consider proposals from private proponents for the commercial use of DTP-controlled land and infrastructure that align with DTP’s core responsibility and broader State goals.

These guidelines provide the framework for the submission, assessment, and approval of proposals. The aim is to ensure that such projects align with government policy, deliver value-for-money, and meet community needs while upholding transparency, probity, and fairness throughout the process.

The objectives of these guidelines are as follows:

• Ensuring alignment with DTP public transport and infrastructure priorities – to ensure the proposals support DTP’s core objective of managing land and infrastructure for transport-related purposes, ensuring the land and infrastructure continue to serve public needs effectively.
• Promoting commercial use – to encourage proposals that align with the State’s economic growth and job creation goals, while ensuring the sustainable and responsible use of land and infrastructure.
• Maximising Value-for-Money: To ensure that the proposals represent value-for-money for the government, the community, and other stakeholders through sustainable business models, innovative technologies, and efficient delivery.
• Protecting public access and integrity – to safeguard the public’s right to access and use of the land and infrastructure, ensuring that commercial activities do not impede their primary function or degrade their environmental and social value.
• Compliance with legislative and policy frameworks: To ensure that all proposals meet the requirements of relevant legislation and State policies, particularly those related to environmental sustainability, climate action, public safety, and accessibility.

These guidelines apply to all unsolicited commercial proposals seeking the use of DTP-controlled land and infrastructure. Proposals may be submitted by private proponents who seek to partner with DTP in support of the State’s transport, infrastructure, economic and climate goals.

For the purposes of this document:

• the term land and infrastructure will have the same meaning as defined in the Road Management Act 2004 (Vic).
• the term DTP-controlled land and infrastructure refers to any land and infrastructure vested in DTP under State legislation, granting DTP management and decision-making authority over the land and infrastructure.

These guidelines complement the Victorian Government Land Transactions Policy which take precedence in the event of any conflict.

3.1. Scope requirements

The scope requirements for the proposals are:

• Tenure: DTP may provide tenure via licences issued for a term of up to 10 years. Licence renewal may be considered based on performance and the ongoing business need.
• No financial support from DTP: Proponents must ensure that their projects are financially viable and do not require direct budgetary contributions from the State. Proposals must be self-funded or funded through external sources, such as private investments, grants, or commercial partnerships.
• Public focus: The proposed commercial activities must be accessible to the public and aim to serve a wide range of users, with a strong focus on inclusivity and accessibility.

3.2. Trial project consideration

To ensure these guidelines are effective and aligned with industry practice and community needs, a trial project may be implemented at selected sites for a set period determined by project goals and relevant industry standards. This trial will provide an opportunity to gather valuable data and insights on operational efficiency, user behaviour, site suitability, and financial performance. The outcomes of the trial will be critical in identifying any gaps or areas for improvement in these guidelines.

By applying the lessons learned from real-world application, DTP can refine and optimise these guidelines before rolling them out more broadly, ensuring that future projects are both practical and aligned with government policy objectives.

4.1. Legislative and Policy Alignment

Proponents must clearly articulate how the proposal:

• supports DTP’s transport and land and infrastructure management objectives.
• aligns with broader Government transport, infrastructure, economic and environmental policies.
• demonstrates compliance with relevant legislation governing public and transport-related land and infrastructure use.

4.2. Value-for-Money

The proposal must demonstrate a strong business case with clear financial and non-financial benefits to the State and the community. It must:

• show how the business model ensures financial sustainability without requiring government funding.
• include a detailed analysis of whole-of-life-cycle costs, such as installation, operations, maintenance, and eventual decommissioning, as well as responsible parties for the costs.
• ensure that any revenue streams comply with relevant government regulations and guidelines.
• provide a clear explanation of the direct and indirect benefits to local communities, such as the promotion of sustainable transport, reducing emissions, attracting customers to local businesses, boosting economic activity.

Revenue considerations

In consideration of DTP’s fiscal responsibilities as the owner or manager of land and infrastructure, proponents are encouraged to include mechanisms for contributing financially to the public benefit. This may include the payment of a licence fee for land and infrastructure use, which reflects the value of the site and its community significance. Additionally, proponents should consider incorporating revenue-sharing arrangements into the proposal (e.g., revenue streams derived from user charges). Such arrangements should be structured to ensure a sustainable financial model while providing contribution to the use of land and infrastructure. Proposals that demonstrate strong financial responsibility and potential for mutual benefit will be viewed favourably in the assessment process.

4.3. Deliverability

The proponent must demonstrate that the project is deliverable within the proposed timelines and budgets, with clear evidence of:

• financial capacity and funding arrangements.
• experience and capacity to deliver similar projects.
• key risks including mitigation strategies associated with project implementation.
• realistic and achievable project timeline.

4.4. Exclusive Negotiation Justification

As the proposal seeks exclusive negotiation with DTP, it must justify:

• why the proposed use of land and infrastructure cannot be replicated through a competitive tender process.
• whether the proponent holds unique characteristics (e.g., patents, copyrights) that would prevent other market participants from delivering the same or similar DTP controlled land and infrastructure.
• any additional factors that would justify the need for exclusive negotiations for consideration at the sole discretion of DTP.

4.5. Site Suitability

Proponents must identify suitable locations on DTP-controlled land and infrastructure that meet the following criteria:

• Existing and future land and infrastructure use compatibility: The proposed site must not interfere with any existing and potential future land and infrastructure use, and it must be confirmed that the development will not hinder other government projects or plans. The proposal should demonstrate how disruptions to existing infrastructure, parking availability, or use will be minimised.
• Sufficient user demand: A site must be assessed for adequate user demand to justify the proposed land and infrastructure use. The proposal must include an analysis of current and projected user demand for the commercial activities in the selected area, supported by evidence.
• Accessibility and inclusivity: the proposed commercial activities must be easily accessible to all user groups, including people with disabilities. This includes ensuring compliance with relevant accessibility standards which are designed to accommodate a variety of user groups, ensuring equitable access for all users.
• Traffic conditions: the site’s accessibility and traffic flow will be carefully evaluated to ensure easy access without causing congestion or hazards. Proper signage, entry and exist points, and proximity to major roads or highways will also be considered to provide a smooth and safe experience for users.
• Safety-related risks and liabilities: The proposal should include a risk assessment including mitigation strategies for potential safety concerns such as electrical hazards, fire risks or vehicle accidents.
• Existing and planned similar activities in proximity: An evaluation of nearby existing and planned similar commercial activities will be included to avoid oversaturation and to identify gaps in the current and future activities.

Proponents should be aware that the final determination of site suitability is at the discretion of DTP.

To enquire about the proposal submission process, please contact:

Budget Strategy and Portfolio Assurance
Investment & Technology Group
Department of Transport and Planning
1 Spring Street
Melbourne Vic 3000
Email: commercial.revenue@transport.vic.gov.au

5.1. Pre-Submission Meeting

Before submitting a formal proposal, proponents are required to schedule a pre-submission meeting with DTP. This meeting will provide an opportunity for proponents to present their concepts, seek feedback on their alignment with government policy objectives, and gain clarity on the submission requirements and probity obligations.

5.2. Formal Submission

Once the pre-submission meeting has taken place, proponents may submit a formal proposal. Proposals must be comprehensive and address all the requirements and criteria outlined in this document. The submission must include detailed documentation on the project’s technical, financial, and operational aspects, supported by relevant evidence.

6.1. Stage One: Proposal Filtering

In this stage, DTP will conduct an initial review of the proposal to determine if it aligns with the government’s policy objectives and meets the basic requirements outlined in this framework. Proposals that do not meet the criteria will be rejected or referred to other processes.
Should the Proposal fail to meet one of the Assessment Citeria, DTP is not obliged to assess the Proposal against the remaining Assessment Criteria.

6.2. Stage Two: Due Diligence

For proposals that pass the filtering stage, a detailed due diligence assessment will be conducted. This will include an in-depth analysis of the financial, technical, and legal aspects of the proposal, as well as an evaluation of the proponent’s capability to deliver the project.

6.3. Stage Three: Negotiation

In this stage, the proponent and DTP will negotiate the terms of the project, including license agreements, operational responsibilities, and risk-sharing arrangements. If the proposal offers unique benefits, DTP may enter into exclusive negotiations with the proponent.

The assessment panel will be supported by a project manager to ensure that the assessment process aligns with government policy objectives and that key stakeholders are kept informed throughout the process.

The assessment panel will be responsible for:

• monitoring the progress of the assessment process.
• providing recommendations for the approval or rejection of proposals to the Secretary.
• ensuring that probity and transparency are maintained at all times.

• signing a confidentiality agreement.
• declaring any potential or actual conflicts of interest.\
• complying with all communication protocols established by DTP.

Failure to adhere to these probity requirements may result in the disqualification of the proposal from further consideration.

Any contract award resulting from the unsolicited proposal process is subject to Victorian Government’s contract disclosure requirements. Further details can be found on Buying for Victoria website.

The submission of a proposal under these guidelines does not create a contractual obligation between the proponent and DTP. DTP reserves the right to:

• reject or accept any proposal at its sole discretion.
• terminate the proposal process at any stage.
• modify the guidelines or assessment process without prior notice.