DFAT Annual Report 2008-2009 : Appendix 12 Consultancy services

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, effective and ethical 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 (December 2008), 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. Australian open tenders are advertised on AusTender, the Government’s electronic publishing service and on the department’s website (www.dfat.gov.au/tenders). Overseas, open tenders are advertised on the post’s website. Where deemed appropriate, open tenders, both in Australia and overseas, will also be advertised in the print media.

Select tender

A limited number of organisations or individuals are invited to submit tenders for particular consultancies in accordance with mandatory procurement procedures of the Commonwealth Procurement Guidelines (December 2008).

Direct sourcing

A direct sourcing arrangement is where we invite a potential supplier or suppliers, of our choice, to make a submission. This definition includes a competitive process such as through the obtaining of quotes. For covered procurements, as defined in the Commonwealth Procurement Guidelines (December 2008), direct sourcing is permitted only under certain conditions.

Panel

An arrangement under which a number of suppliers, initially selected through a single procurement 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 our panels to supply to the department.

Consultancy services let

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

TABLE 27. CONSULTANCY SERVICES CONTRACTS LET DURING 2008–09 OF $10 000 OR MORE

Consultant name	Description	Contract price ($A)		Selection process⁽¹⁾	Justification⁽²⁾
Abdoun Real Estate	Property market review	25 712		Direct sourcing	C
Alliance Consulting Group	Review of CAIS	36 854	†	Direct sourcing	C
Analytical Services	Property suitability assessment	19 800		Panel	B
Answerz	Provision of threat risk assessment	14 784		Direct sourcing	B
ARUP	Property suitability assessment	32 047		Panel	B
ARUP	Property suitability assessment	13 866		Panel	B
BearingPoint Australia (trading as KPMG)	Performance audit services	23 958		Direct sourcing	B
CB Richard Ellis (Vietnam) Co Ltd	Overseas real estate services	12 805		Direct sourcing	B
Colin Buchanan and Partners Hong Kong	Pedestrian simulation modelling for the Australian pavilion at Shanghai World Expo 2010	31 562		Direct sourcing	C
Energetics	Provision of life cycle assessment services	16 500		Panel	C
First Peak	Provision of security assessment services	10 960		Direct sourcing	C
Geoscience Australia	Seismic monitoring services	637 846		Direct sourcing	B
Glover, Rodney	Trade policy development	33 000		Direct sourcing	C
HSBC Actuaries	Actuarial services	11 445		Direct sourcing	C
International Trade Policy Consultants	Report on Australia /Canada/NZ Mutual recognition—an examination of the scope for closer regulatory cooperation	33 670		Direct sourcing	B
IPP Consulting	Property suitability assessment	14 190		Panel	B
IPP Consulting	Property suitability assessment	14 190		Panel	B
Jones Lang Lasalle (Vic)	Real estate services	14 500		Direct sourcing	B
Jones Lang Lasalle Meghraj	Property evaluation services	20 507		Direct sourcing	B
Maklarfirman Vincent Forssbeck KB	Real estate services	18 176		Direct sourcing	B
Oakton AA Services	Development of a budgetary framework	79 159		Direct sourcing	C
Oakton Service	Provision of financial services	14 628		Direct sourcing	C
PricewaterhouseCoopers	Audit services	18 480		Panel	C
PricewaterhouseCoopers	Procedures review	20 640		Panel	C
PricewaterhouseCoopers	Business advice on project proposal	176 040		Panel	C
Richardson O’Rourke	Provision of benefits realisation plan	42 768		Direct sourcing	B
Richardson O’Rourke	Provision of risk assessment services	21 296		Direct sourcing	B
Sinclair Knight Merz	Property suitability assessment	26 950		Panel	B
Sinclair Knight Merz	Property suitability assessment	63 500		Panel	B
Smec International	Feasibility study for construction project	80 000		Direct sourcing	B
SMS Consulting Group	E-learning review	59 400		Panel	B
Taylor Thomson Whitting (ACT)	Property suitability assessment and design services	31 840		Panel	B
Taylor Thompson Whitting (International)	Property suitability assessment	11 710		Panel	B
Tinney & Associates	Consultancy services	30 930		Direct sourcing	C
Unisys Australia	Facial recognition report	82 500		Direct sourcing	B
University of New South Wales	Acoustic research consultancy	12 800		Direct sourcing	B
UXC Limited	Provision of FMIS upgrade strategy	239 475		Panel	C
UXC Limited	Port Moresby HRMIS proof of concept	87 912		Panel	C
VSL Australia	Property suitability assessment	13 944		Panel	B
Wizard People	Performance management review	14 810	*	Direct sourcing	A
Woolcott, Richard Arthur	Asia Pacific community—Consultancy Services	152 174	~	Direct sourcing	B
Worley Parsons Services	Property suitability assessment	17 612		Panel	B
Worley Parsons Services	Property suitability assessment	17 612		Panel	B
Worley Parsons Services	Property suitability assessment	16 930		Panel	B
Worley Parsons Services	Property suitability assessment	17 612		Panel	B
TOTAL		2 387 094

† Final value exceeded original contract price by $854 and reflects expenditure on reimbursable items.
* Final value exceeded original contract price by $690 and reflects additional time and expense required to complete the review.
~ Final value exceeded original contract price by $13 924 and reflects expenditure on reimbursable items.

(1) 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.
Select Tender—A procurement procedure in which the procuring agency selects which potential suppliers are invited to submit tenders. This procurement process may only be used under certain defined circumstances
Direct Sourcing—A procurement process in which the agency invites a potential supplier or suppliers of its choice to make submissions. Direct Sourcing may include a competitive process, for example obtaining quotes.
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 pre-determined 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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