Annual Report 2007-2008
 

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Appendix 11

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 and effective 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 (January 2005), 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. Consultancies over $80 000 (GST inclusive) are advertised on 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 website (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 mandatory procurement procedures—the Commonwealth Procurement Guidelines (January 2005). 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

This is a form of restricted tendering, available only under certain defined circumstances as outlined in section 8 of the Commonwealth Procurement Guidelines (January 2005), which invites a single potential consultant or consultants 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 predetermined length of time, usually at a pre-arranged price.

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 2007–08 OF $10 000 OR MORE

Consultant name Description
Contract price
Selection process(1)
Justification(2)
Alamein Consulting ICT services review
34 800
Panel
B
Alamein Consulting Development of information technology infrastructure library
104 700
Panel
C
Analytical Service Property suitability assessment
25 110
Panel
B
Arup Specialist advice—physical security
251 187
Panel
B
Australia/Italy Cultural Promotions Services to further the promotion of Australia in Italy
61 600
Direct sourcing
B
Beasley Intercultural Development and design of APEC pilot twinning project
68 200
Select tender
B
Brian Sullivan Consulting Review of passport production benchmarks
15 153
Select tender
C
CB Richard Ellis (Thailand) Independent review of property market—Bangkok
12 838
Select tender
B
Gartner Australasia IT research and advisory services
35 420
Direct sourcing
B
Grosvenor Management Consulting Divisional structure review
27 500
Panel
C
HSBC Actuarial services
13 091
Direct sourcing
B
Integral Consulting Services Asynchronous transfer mode replacement
153 670
Panel
B
Integral Consulting Services Design ICT storage solution
89 250
Panel
B
Intelligence Dynamics Development of passport case management solutions
57 750
Select tender
C
International Economics Economic modelling study for Australia–India FTA
104 000
Open tender
C
International Economics Economic modelling study for Australia–Indonesia FTA
131 870†
Open tender
C
International Economics Economic modelling on the effects of trade liberalisation
72 600
Select tender
C
Iteco Cemat Geotech Services Geotechnical Investigations Kathmandu
16 897
Select tender
B
KPMG Market scan of companies engaged in secure document production
28 160
Select tender
B
Mallesons Stephens Jaques Development of project proposal (tender documentation)
60 830
Panel
B
Marine Resources Assessment Group Study on illegal foreign fisheries
150 000
Select tender
C
McGrathNicol Advisory Partnership Quality assurance review of DFAT’s internal audit function
38 500
Select tender
B
Minter Ellison Lawyers Provision of legal services in relation to contract management
22 000
Panel
B
Note Printing Australia Limited Review of passport production security arrangements
15 000
Select tender
C
Oakton Limited Development of a costing model for passport information management services
48 593
Direct sourcing
C
Pricewaterhouse coopers Property management services audit
17 402
Panel
B
PT Property Advisory Indonesia Advisory and representation services
31 250
Select tender
B
Rider Levett Bucknall Development of life cycle costing model
48 308
Panel
B
Rob Brennan Facilitation & Training Services Redevelop training program and associated materials
23 111
Select tender
B
Ryebuck Media Scoping study for educational kit Explore the Arab world
18 700
Select tender
B
S-3 Consulting Appraisal of CAIS project
50 600
Direct sourcing
C
Signet Group International Property suitability assessment
15 072
Panel
B
Sinclair Knight Merz Specialist advice—physical security
63 725
Panel
B
Sinclair Knight Merz Specialist advice—physical security
22 100
Panel
B
The Realise Group Review of passport client services
78 861
Select tender
B
Tim Noonan Consulting Review of the smartraveller telephone service and website
15 000
Direct sourcing
A
WalterTurnbull Business continuity planning projects
30 462
Direct sourcing
C
Watson Wyatt Locally engaged staff remuneration review—Paris
34 945
Select tender
B
TOTAL  
2 088 255
   

† Final value exceeded original contract price by $1870 to reflect expenditure on reimbursable items.
(1) 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 predetermined 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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