An audit of the contract management capabilities of the entity delegated by NSW Health to procure goods and services worth more than $250,000, HealthShare NSW, has found that it has not managed contracts satisfactorily.
In her report Ensuring contract management capability in government – HealthShare NSW, Auditor-General Margaret Crawford found that HealthShare had a procurement framework that should support effective contract management, “but it is not applying it consistently”.
Ms Crawford said the audit found HealthShare was not applying key contract management elements to over 80 per cent of the high-value contracts it managed.
“The audit also found that HealthShare’s contract management practices were limited by inadequate performance monitoring,” Ms Crawford said.
“Effective contract management is essential to ensure the contracts HealthShare enters into are delivering as expected and ensuring value for money,” she said.
“Without this, the value for money or savings HealthShare achieves when it negotiates these contracts is at risk of being eroded over the life of the contract.”
The Auditor-General’s report recommended NSW Health develop a performance improvement plan to ensure HealthShare was fully compliant with procurement policies, and that NSW Health meets its obligations under the Government’s Accreditation Program for Goods and Services Procurement.
The Auditor-General’s 36-page report can be accessed at this PS News link.
