Procurement Practices and Outcomes

Our procurement policies and practices reflect the principles set out in the Commonwealth Procurement Guidelines. We focus on:

  • value for money
  • encouraging competition
  • efficient, effective and ethical use of government resources
  • accountability and transparency, and
  • compliance with other Australian Government policies.

Our Chief executive Instructions (CEIs) on procurement reflect these principles and the need for compliance by all staff when choosing procurement methods, sourcing potential supplies or entering into contracts. As part of these arrangements, in 2005–06 we published details of:

  • publicly available business opportunities with a value of $10 000 or more* on AusTender www.tenders.gov.au
  • actual contracts or standing offers awarded with a value of $10 000 or more* in the Purchasing and Disposals Gazette www.contracts.gov.au—no contracts were exempted from gazettal
  • actual contracts or standing offers with a value of $100 000 or more* on our website www.pmc.gov.au as required by Senate Order 192.

All major contracts for activities previously performed in-house included a requirement for contractors to allow access to their premises by the Australian National Audit Office (ANAO).

More information on the procurement we expect to undertake in 2006–07 is published in our annual procurement plan, as available at www.tenders.gov.au.

Our compliance with gazettal and reporting requirements was reviewed in several cross-portfolio audit reports tabled by the ANAO in 2005–06.

In order to address the findings of the audit report and to strengthen our compliance with these requirements, we have:

  • reviewed our CEIs and associated procurement procedures
  • issued standard tendering and contract templates for use by staff
  • instituted processes to ensure that confidentiality provisions are correctly identified before a contract is signed, and
  • strengthened our processes for coordinating and compiling reports against Senate Order 192.

We are also working with the Department of Finance and Administration and other stakeholders to examine options for improving reporting of procurement across the Australian Government. This may involve, among other things, rationalising the number of reporting regimes.

* All values shown include the goods and services tax (GST) unless indicated otherwise.

Consultants are engaged to provide professional, independent and expert advice or services. We select consultants in the same way that we procure other services and goods.

In 2005–06 we spent a total of $3.5 million on consultancies. This comprised $0.231 million on four existing consultancies, and $3.240 million on 69 new consultancy contracts entered into in 2005–06.

Details of new consultancy contracts valued at $10 000 or more MS Word 393KB | PDF 71KB

Market research and advertising. Table 8.2 covers payments of $1500 and above to external consultants engaged by PM&C to provide advertising and market research services and for the placement of advertising by hma Blaze and Universal McCann, the Central Advertising System (CAS) master media placement agencies.

In 2005–06 PM&C spent a total of $0.7 million on the placement of advertising through the CAS master media placement agencies and on payments to external consultants engaged to provide advertising and market research services.

Table 8.1—Trends in consultancies*
  2001–02 actual 2002–03 actual 2003–04 actual 2004–05 actual 2005–06 actual
CONSULTANCIES
All consultancies including consultancies let in previous years
Total expenditure not reported $9.6m $13.0m $0.5m $3.5m
New consultancies valued at $10 000 or more
Number let 73 38 58 9 32
Total value over the life of these contracts $9.1m $8.8m $19.9m $0.4m $5.6m

* historical data is taken from previous year's annual reports and may understate consultancy expenditures and values to some extent due to definitional changes. it also includes activity by the office of the Status of Women before its transfer to the department of family and Community Services in 2004–05.

 

Table 8.2 – Details of market research and advertising payments of $1500 or more
Firm Service provided Payment made in 2005–06
CREATIVE ADVERTISING AGENCIES
Principals Pty Ltd Branding strategy – APECa $159 676
All creative advertising agencies   $159 676
MARKET RESEARCH/POLLING ORGANISATIONS
Corporate Diagnostics Customer satisfaction surveys of campaign and non campaign media placement agencies $45 035
HRM Consulting Pty Ltd Staff surveya $92 188
All market research/polling organisations $137 223
DIRECT MAIL ORGANISATIONS
NIL  
MEDIA ADVERTISING ORGANISATIONSb
hma Blaze Pty Ltd Recruitment and other non-campaign advertising $376 732
All media advertising organisations $376 732

 

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Last Updated: 8 January, 2007