A performance audit into the National Blood Authority’s (NBA) management of the manufacture and supply of blood plasma products around Australia has found NBA’s management to be largely effective.
In his report, Management of the Manufacture and Supply of Domestic Fractionated Blood Plasma Products, Auditor-General Grant Hehir said the NBA conducted largely appropriate planning that supported the strategic procurement for the manufacture and supply of domestic fractionated blood plasma products through the National Fractionation Agreement for Australia (NaFAA).
“Contract management arrangements including performance monitoring and risk management were largely effective,” Mr Hehir said.
“The processes undertaken for the procurement of the NaFAA largely supported the achievement of value for money,” he said.
“The NBA conducted benchmarking activities, modelling, and forecasting to assess CSL Behring’s (CSL) proposal for the NaFAA, and negotiated rates and conditions to support the achievement of value for money.”
Mr Hehir found the NBA didn’t comply with all mandatory requirements of the Commonwealth Procurement Rules (CPRs), including not fully implementing internal policies throughout the procurement and contract management processes.
“The NBA established contract management arrangements for the NaFAA that have been largely effective; however, they were not always implemented fully in accordance with the requirements of NBA internal policy,” the Auditor-General said.
He said a key challenge for the NBA was achieving value for money in a market with a sole provider, in accordance with the Australian Government procurement framework and in line with the policy objectives of the National Blood Agreement.
The Auditor-General made three recommendations to the NBA, in relation to performance reporting; contract risk management; and updating internal policies.
His Report can be accessed online at this PS News link and his 67-page printed Report at this link.
The Audit team was Freya Mathie, Hayley Pennock, Jennifer Zierk, Samuel Painting, and Peta Martyn.
