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OUTPUT 4.2: Contract management

Reporting against effectiveness indicators

On this page: Overview :: Construction projects :: Contract with United Process Solutions Pty Ltd (UPS)


In discharging our responsibilities for managing the overseas owned estate through the Overseas Property Office (OPO), the department made extensive use of contracted service providers selected in accordance with our competitive tendering and contracting procedures.

Contract services provided included project management and delivery, design and documentation, construction and refurbishment, asset management, property disposal and audit. We maintained our contract with United Process Solutions (UPS) for the provision of property services for the overseas owned estate.

Both Australia-based services and local services overseas were contracted for major overseas projects. Construction services were also provided on a sub-contracted basis. In the owned overseas estate, our contract with UPS makes provision for project services to be supplied, where required, by the Australian project management company Multiplex.

Construction projects

The department efficiently managed the planning and implementation of a significant construction program in the overseas estate throughout 2002–03. Some projects encountered delays due mainly to local factors, but all were completed within acceptable timing and budget parameters. Some proposed leased estate projects had to be deferred because of an urgent funds requirement for the relocation on security grounds of the Manila chancery.

The largest project completed during the year was the new chancery for the embassy in Berlin, which involved the restoration and refurbishment of two adjacent heritage-listed buildings for use as chancery and apartments. The completed project attracted positive public attention in Germany for the sensitive way in which a state-of-the-art office and accommodation complex was created while preserving the heritage character of the original buildings. The new embassy is an exceptional representational facility for Australia and adds considerable value to the overseas estate.

We carried out preparatory work towards the construction of new chanceries in Colombo and New Delhi. The Colombo project was presented to the Parliamentary Joint Standing Committee on Public Works in June 2003 and the New Delhi proposal was tabled for Committee consideration in the same month. Other significant projects in development or construction stage include new consulate offices in Bali, new staff housing in Honiara, and refurbishment of staff apartments in Paris.

In addition to major projects in the owned estate, the department provided planning and project assistance for our leased estate projects, including the fitting out of new chanceries in Abuja, Amman and Moscow, and the urgent relocation on security grounds of the embassy in Manila. We also gave priority to project planning for the Australian Representative Office in Baghdad.

Contract with United Process Solutions Pty Ltd (UPS)

The department retained its outsourcing contract with UPS for the provision of property services in the overseas owned estate. The contract is designed to provide effective service delivery to posts, the department and other Australian Government agencies operating overseas. (UPS took over the contract from PricewaterhouseCoopers when, in consultation with the department, the latter sold the business to United Group Limited, effective from 30 September 2002.)

The contract incorporates key performance indicators under six headings: financial, business processes, tenant satisfaction, portfolio strategy, divestments and capital works. OPO maintained a dialogue with UPS throughout the year to ensure that services were effectively delivered under the contract (for information on contractual outcomes see quality information).

The contract with UPS remained important in providing facilities management in the owned overseas estate, including servicing of plant and equipment and preventive maintenance programs in posts. In some larger posts UPS provides on-site facilities managers who oversee locally employed UPS staff. Posts can also report faults or problems to UPS's 24-hour call service in Australia. Posts' satisfaction with services provided by UPS was surveyed through the year as a measure of the contract's effectiveness (see output 4.1 quality information and output 4.2 quality and quantity information).


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Department of Foreign Affairs and Trade Annual Report 2002–2003
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