Annual Report 2006-2007
 

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Appendix 11

Consultancy services

Consistent with the Government’s policy to focus available resources on core functions, and recognising the value of the different perspectives that consultants can bring to policy and operational issues, the department engages consultants where skills are currently unavailable in the department, there is a need for specialised or professional skills, or there is a need for independent research or assessment. 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—January 2005, and is based on the principle of ‘value for money’. Selection methods are as follows:

Open tender

Consultancies over $80 000 (GST inclusive) are advertised in AusTender, the Government’s electronic publishing service, and where deemed appropriate, in the print media, inviting all businesses that satisfy the conditions for participation to submit tenders. In Australia, open tenders are also advertised on the department’s internet site (www.dfat.gov.au/tenders). Overseas, open tenders are advertised on the post’s website.

Select tender

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

In Australia, select sourcing tenders are also advertised on the department’s internet site for the information of any other supplier that believes it would be competitive in meeting the tender requirements.

Direct sourcing

A consultant is permitted to be sourced directly under certain special conditions as outlined in section 8 of the Commonwealth Procurement Guidelines.

Panel

An arrangement under which a number of suppliers, usually selected through a single procurement process, may each supply property or services to an agency as specified in the panel arrangements.

Consultancy services let

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

TABLE 30. CONSULTANCY SERVICES CONTRACTS LET DURING THE YEAR
Consultant name Description
Contract
price*
Selection process
  Justification
Applied Economics Construction of a new passport demand forecast model
47 520
Select tender
B
CB Richard Ellis Independent review of the property market—Seoul
12 723
Select tender
B
DTZ Zadelhoff Tie Leung International Property Advisors Independent review of the property market—Budapest
13 383
Select tender
B
Gartner Asia Pacific Specialist advice—IT research and advisory services
33 440
   Direct sourcing
B
Grosvenor Management Consulting Development of a capital works procedures manual
79 352
Select tender
A
Grosvenor Management Consulting Procurement support services—overseas property services tender
195 810
Open tender
B
Grosvenor Management Consulting Specialist advice—property services market and contract review
47 187
   Direct sourcing
B
Hay Group Specialist advice—locally engaged staff salaries, Singapore
20 529
Select tender
C
Hendry Group (VIC) Property compliance audits—
Pacific and South America
665 478
Open tender
B
iCognition Independent advice—records management services
27 155
Select tender
A
International Trade Strategies Economic research into a potential Australia–Korea FTA
115 500
Open tender
C
JJ McDonald & Sons Site investigation and land survey—Dili
46 500
Select tender
B
Jones Lang LaSalle (Korea) Independent review of the property market—Seoul
13 890
Select tender
B
Knight Frank (Kenya) Independent review of the property market—Nairobi
15 063
Select tender
B
KPMG Independent review of ICT governance structures and systems
70 840
Select tender
B
National Farmers’ Federation Promotion of Australia’s trade interests
25 000
Direct sourcing
B
Odysseia Turizm Ve Danismanlik Independent review of the property market—Canakkale
10 253
Select tender
B
PT Dayamandiri Dharmakonsilindo Specialist advice—locally engaged staff conditions of service, Jakarta
22 765
Direct sourcing
B
Queensland Consulting Project Partners (QCPP) Project management services—Dhaka
384 644
Select tender
A
Sinclair Knight Merz Specialist advice—seismic evaluation, Kathmandu
79 803
Open tender
B
Sparke Helmore Probity advisor—overseas property services tender
14 133
Panel
B
The Adelaide Research & Innovation Investment Trust Represent Australia in the Comprehensive Economic Partnership in East Asia Study Group
59 400
Select tender
C
The Treasury Review of the current passport demand forecast model
20 000
Direct sourcing
B
The Trustee for PCM Unit Trust (Historic name: Property Concept & Management) Property management and strategic planning
92 000
Direct sourcing
B
Unisys Australia Project management and consultancy services for DFAT FMIS system
55 495
Direct sourcing
C
Unisys Australia Provision of specialist consultants to develop DFAT’s business intelligence framework
79 500
Direct sourcing
C
United Group Process Solutions Property compliance audits—Asia
693 784
Open tender
B
University of
New South Wales
Specialist advice—physical security
70 000
Direct sourcing
B
WalterTurnbull Consultancy services—development of a pandemic influenza contingency plan
12 705
Select tender
B
Woods Bagot (Thailand) Specialist advice—residential site inspection and evaluation
60 381
Select tender
B
Total  
3 084
234
 
 

* Figures may not add due to rounding.

Explanation of selection process terms drawn from the Commonwealth Procurement Guidelines (January 2005):
Open tender—A procurement procedure in which a request for tender is published inviting all business that satisfy the conditions for participation to submit tenders. Public tenders are sought from the marketplace using national and major metropolitan newspaper advertising and 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. Tenders are invited from a short list of competent suppliers.
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, usually selected through a single procurement process, may each supply property or services to an agency as specified in the panel arrangements. Tenders 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 consultant offers to supply goods and services for a pre-determined length of time, usually at a pre-arranged price.

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

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