Annual Report 2008-2009
 

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Appendix 12

Consultancy services

The department employs consultants for a range of purposes. The decision to use a consultant is based on whether there is a need for specialised or professional skills, independent research or assessment skills, or a set of skills that is currently unavailable in the department. This approach is consistent with the Government’s policy to focus available resources on core functions. It also recognises the valuable perspectives that consultants can often bring to policy and operational issues. All decisions to engage consultants are based on the principle of value for money and efficient, effective and ethical use of public funds.

All contracts (including consultancies) valued over $10 000 entered into in Australia, or entered into overseas with an Australian supplier, are published in the Government’s electronic gazettal system, AusTender (www.tenders.gov.au).

Selection processes

The process used for selecting consultants, both in Australia and at overseas posts, is consistent with the department’s broader procurement policies and the Commonwealth Procurement Guidelines (December 2008), and is based on the principle of value for money. Selection methods are as follows:

Open tender

This procurement procedure invites all businesses that satisfy the conditions for participation to submit tenders. Australian open tenders are advertised on AusTender, the Government’s electronic publishing service and on the department’s website (www.dfat.gov.au/tenders). Overseas, open tenders are advertised on the post’s website. Where deemed appropriate, open tenders, both in Australia and overseas, will also be advertised in the print media.

Select tender

A limited number of organisations or individuals are invited to submit tenders for particular consultancies in accordance with mandatory procurement procedures of the Commonwealth Procurement Guidelines (December 2008).

Direct sourcing

A direct sourcing arrangement is where we invite a potential supplier or suppliers, of our choice, to make a submission. This definition includes a competitive process such as through the obtaining of quotes. For covered procurements, as defined in the Commonwealth Procurement Guidelines (December 2008), direct sourcing is permitted only under certain conditions.

Panel

An arrangement under which a number of suppliers, initially selected through a single procurement process, may each supply property or services to an agency as specified in the panel arrangements. Quotes are sought from suppliers that have pre-qualified on our panels to supply to the department.

Consultancy services let

The following table lists consultancy services contracts let during the year with a value of $10 000 or more (inclusive of GST, where applicable), including the contract price for the consultancy, the selection process used and the reason for the decision to engage consultancy services.

TABLE 27. CONSULTANCY SERVICES CONTRACTS LET DURING 2008–09 OF $10 000 OR MORE

Consultant name Description Contract price ($A)   Selection process(1) Justification(2)
Abdoun Real Estate Property market review 25 712   Direct sourcing C
Alliance Consulting Group Review of CAIS 36 854 Direct sourcing C
Analytical Services Property suitability assessment 19 800   Panel B
Answerz Provision of threat risk assessment 14 784   Direct sourcing B
ARUP Property suitability assessment 32 047   Panel B
ARUP Property suitability assessment 13 866   Panel B
BearingPoint Australia (trading as KPMG) Performance audit services 23 958   Direct sourcing B
CB Richard Ellis (Vietnam) Co Ltd Overseas real estate services 12 805   Direct sourcing B
Colin Buchanan and Partners Hong Kong Pedestrian simulation modelling for the Australian pavilion at Shanghai World Expo 2010 31 562   Direct sourcing C
Energetics Provision of life cycle assessment services 16 500   Panel C
First Peak Provision of security assessment services 10 960   Direct sourcing C
Geoscience Australia Seismic monitoring services 637 846   Direct sourcing B
Glover, Rodney Trade policy development 33 000   Direct sourcing C
HSBC Actuaries Actuarial services 11 445   Direct sourcing C
International Trade Policy Consultants Report on Australia /Canada/NZ Mutual recognition—an examination of the scope for closer regulatory cooperation 33 670   Direct sourcing B
IPP Consulting Property suitability assessment 14 190   Panel B
IPP Consulting Property suitability assessment 14 190   Panel B
Jones Lang Lasalle (Vic) Real estate services 14 500   Direct sourcing B
Jones Lang Lasalle Meghraj Property evaluation services 20 507   Direct sourcing B
Maklarfirman Vincent Forssbeck KB Real estate services 18 176   Direct sourcing B
Oakton AA Services Development of a budgetary framework 79 159   Direct sourcing C
Oakton Service Provision of financial services 14 628   Direct sourcing C
PricewaterhouseCoopers Audit services 18 480   Panel C
PricewaterhouseCoopers Procedures review 20 640   Panel C
PricewaterhouseCoopers Business advice on project proposal 176 040   Panel C
Richardson O’Rourke Provision of benefits realisation plan 42 768   Direct sourcing B
Richardson O’Rourke Provision of risk assessment services 21 296   Direct sourcing B
Sinclair Knight Merz Property suitability assessment 26 950   Panel B
Sinclair Knight Merz Property suitability assessment 63 500   Panel B
Smec International Feasibility study for construction project 80 000   Direct sourcing B
SMS Consulting Group E-learning review 59 400   Panel B
Taylor Thomson Whitting (ACT) Property suitability assessment and design services 31 840   Panel B
Taylor Thompson Whitting (International) Property suitability assessment 11 710   Panel B
Tinney & Associates Consultancy services 30 930   Direct sourcing C
Unisys Australia Facial recognition report 82 500   Direct sourcing B
University of New South Wales Acoustic research consultancy 12 800   Direct sourcing B
UXC Limited Provision of FMIS upgrade strategy 239 475   Panel C
UXC Limited Port Moresby HRMIS proof of concept 87 912   Panel C
VSL Australia Property suitability assessment 13 944   Panel B
Wizard People Performance management review 14 810 * Direct sourcing A
Woolcott, Richard Arthur Asia Pacific community—Consultancy Services 152 174 ~ Direct sourcing B
Worley Parsons Services Property suitability assessment 17 612   Panel B
Worley Parsons Services Property suitability assessment 17 612   Panel B
Worley Parsons Services Property suitability assessment 16 930   Panel B
Worley Parsons Services Property suitability assessment 17 612   Panel B
TOTAL   2 387 094      

† Final value exceeded original contract price by $854 and reflects expenditure on reimbursable items.
* Final value exceeded original contract price by $690 and reflects additional time and expense required to complete the review.
~ Final value exceeded original contract price by $13 924 and reflects expenditure on reimbursable items.

(1) Explanation of selection process terms drawn from the Commonwealth Procurement Guidelines (December 2008):
Open Tender—A procurement procedure in which a request for tender is published inviting all businesses that satisfy the conditions for participation to submit tenders.
Select Tender—A procurement procedure in which the procuring agency selects which potential suppliers are invited to submit tenders. This procurement process may only be used under certain defined circumstances
Direct Sourcing—A procurement process in which the agency invites a potential supplier or suppliers of its choice to make submissions. Direct Sourcing may include a competitive process, for example obtaining quotes.
Panel—An arrangement under which a number of suppliers, initially selected through an open tender process, may each supply property or services to an agency as specified in the panel arrangements. Quotes are sought from suppliers that have pre-qualified on the agency panels to supply to the government. This category includes standing offers and supplier panels where the supply of goods and services may be provided for a pre-determined length of time, usually at a pre-arranged price.

(2) Justification for decision to use consultancy:
A—skills currently unavailable within agency
B—need for specialised or professional skills
C—need for independent research or assessment.

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