The Auditor-General Annual Report 2010-2011

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APPENDIX 6—PROCUREMENT

The Commonwealth purchasing policy framework is outlined in the Commonwealth Procurement Guidelines (December 2008).

Performance against core purchasing policies

The ANAO’s purchasing activities in 2010–11 adhered to the requirements set out in the guidelines and in the Auditor-General’s Instructions and associated procedural rules on procurement. The ANAO seeks high-quality services that provide value-for-money solutions for the ANAO in all its procurement activities.

To ensure that we meet the objectives and mandatory requirements set out in the guidelines, we periodically update the Auditor-General’s Instructions and the procedural rules. In some areas, we have established panels of contractors and consultants with particular capabilities to meet ongoing needs. The performance of these outsourced arrangements is outlined in Part 4 of the annual report (Management and accountability).

We published our annual procurement plan for 2011–12 on AusTender on 27 June 2011.

We have mechanisms in place to ensure that our processes are fair and equitable and that all potential suppliers have opportunities to compete for our business.

Policy on the selection and engagement of consultants

We use consultants on a needs basis for a variety of tasks. The most common uses of contracted consultants include the application of expert professional skills to:

  • investigate or diagnose a defined issue or problem
  • carry out defined research reviews or evaluations
  • provide independent advice, information or creative solutions
  • provide specialised services, including assistance with the development and/or implementation of purpose-built IT systems, and legal advice.

The ANAO participates in a number of collaborative procurement arrangements with other agencies, such as the Design, Production and Distribution Tender program led by Centrelink.

After an initial open tender process, we selected and maintained a panel of consultants for audit-related work. In addition, consultancies for larger activities (audit or non-audit related) are put out to tender when required.

Standard form contracts were developed for staff use in setting up consultancies. Where necessary, our staff can readily adapt those documents to suit individual circumstances.

Consultants contracted to provide services under the Auditor-General Act 1997 are contractually bound not to use any Confidential Information of the ANAO for any purpose other than the provision of the Services, or disclose any Confidential Information of the ANAO additionally, individuals may sign a deed of confidentiality to ensure that they are aware of their legal commitment to the relevant confidentiality and secrecy provisions under the Act. Consultants may exercise those powers only in respect of the services for which they are contracted.

Exempt contracts

No contract in excess of $10,000 (inclusive of GST) or standing offer was exempted by the Auditor-General from being published in AusTender on the basis that it would disclose exempt matters under the Freedom of Information Act 1982.

Summary of consultancy information

Table A6.1 lists the consultancies valued at $10,000 or more that were let by the ANAO in 2010–11. The total figure refers to total value of the contracts let, irrespective of the period of the contract; some contracts are let for periods of more than one year.

Table A6.1 Consultancy services of $10,000 or more let during 2010–11

Table A6.1 Consultancy services of $10,000 or more let during 2010–11
Consultant name Description Contract price ($) Selection processa Justificationb
Allanson Consulting Pty Ltd Audit services on the procurement use of panels, 2010–11 and 2011–12 20,000 Panel B
Axiom Associates Pty Ltd Actuarial services for 2010–11 Department of Immigration and Citizenship audit 18,000 Panel C
Brooklands ACT Pty Ltd Expert advice for Performance Audit: Australian Defence Force’s Mechanisms for Capturing Lessons from Peacekeeping Operations 13,750 Direct B
Compuware Asia-Pacific Pty Ltd Project management coaching sessions for EL2s 55,440 Direct A
Datacom Technical Security Services OSCAR system and penetration test for the National Greenhouse and Energy Reporting Framework 45,000 Direct B
Deloitte Touche Tohmatsu—ACT Actuarial services for the Department of Environment, Water, Heritage and the Arts 15,000 Panel B
Deloitte Touche Tohmatsu—ACT Review and update of the Quality Control Review Program 123,600 Panel B
Deloitte Touche Tohmatsu—ACT 2009–10 Performance Audit Service Group Quality Assurance Program 11,000 Panel C
Deloitte Touche Tohmatsu—ACT Assistance with the development of policy and guidance for assurance reviews 35,000 Panel B
Ernst & Young Actuarial services for 2009–10 Financial Statement Audits of the Department of Defence and Department of Finance and Deregulation 96,000 Panel B
Gartner Australasia Pty Limited Gartner Services Renewal 35,640 Direct C
KPMG Actuaries Pty Limited Actuarial services for the 2009–10 Financial Statement Audit of the Department of Health 22,000 Panel B
Mallesons Stephen Jaques Policy Audit and Administration Manual 25,000 Panel B
Mallesons Stephen Jaques Legal Advice Matter 06-5503-9346 25,000 Panel B
Martin Salkild Expert professional opinion regarding government advertising 15,000 Direct B
ORIMA Research Survey of the Department of Families, Housing, Community Services and Indigenous Affairs and search results for the Department of Education, Employment and Workplace Relations and Department of Health and Ageing for the Capacity Development Performance Audit 22,300 Panel C
ORIMA Research Conduct the 2010–11 Agency Surveys 45,925 Panel C
ORIMA Research Conduct the AASG Annual Survey and Audit Chair Interviews 56,430 Panel C
ORIMA Research Conduct the 2011 ANAO Parliamentary Survey in 2010–11 and 2011–12 101,860 Panel C
ORIMA Research Services for conducting surveys for the Therapeutic Goods Regulation Performance Audit 21,910 Open C
PricewaterhouseCoopers Actuarial Pty Limited Actuarial review services for the Australian Taxation Office audit 12,000 Panel B
PricewaterhouseCoopers Actuarial Pty Limited Actuarial services for the Department of Veterans’ Affairs 44,000 Panel C
Reading Room Australia Pty Ltd Website development and maintenance 161,500 Panel B
Resolution Consulting Services Services to improve the use of the ANAO’s Project Management Systems 16,800 Panel B
Resolution Consulting Services Engagement of consultant to assist with AASG Strategic Planning 14,300 Panel C
Robert Kerr Performance Audit Methodology 2010–11 and 2011–12 34,030 Direct C
Stratsec.net Pty Ltd Independent Review of IT Security in the ANAO 25,000 Select C
Stratsec.net Pty Ltd System Security Plan 24,200 Direct B
Successfactors Inc Supply of external labour market report 31,460 Direct C
Synergy Group Australia as Trustee for Synergy Group Unit Trust Engagement of consultant to assist with Learning and Development refresh project 46,500 Panel C
Tanner James Management Consultant P3M3 Assessment 41,920 Panel C
Technology One Ltd Technology One—FMIS User Training and Configuration Document 18,061 Direct B
The Consulting Space Review of the AASG’s internal training materials 21,725 Select C
Think Place Pty Ltd Design service for Business Plan 2011–12 23,969 Direct B

a 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. Public tenders are generally sought from the Australian Government AusTender internet site.

Select Tender: A procurement procedure in which the procuring agency selects which potential suppliers are invited to submit tenders (this includes tenders submitted through Multi Use Lists). This procurement process may only be used under certain defined circumstances.

Direct Sourcing: A form of restricted tendering, available only under certain defined circumstances, with a single potential supplier or suppliers being invited to bid because of their unique expertise and/or their special ability to supply the goods and/or services sought.

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 predetermined length of time, usually at a prearranged price.

b 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.