An audit of Government Agencies’ establishment and use of ICT-related procurement panels has found that not all could demonstrate the process achieved value for money.
In his report Establishment and Use of ICT Related Procurement Panels and Arrangements, Auditor-General, Grant Hehir said that while the use of procurement panels was intended to achieve efficiency and reduce risk, previous audits had identified shortcomings with some entities’ application of the Commonwealth Procurement Rules (CPRs).
Mr Hehir said that in this audit three procurement arrangements were examined — the IT Services Panel, the Digital Marketplace Panel and the IBM Whole of Australian Government Arrangement.
“In establishing the three selected ICT-related procurement panels and arrangements, the Department of Infrastructure, Transport, Regional Development and Communications (Infrastructure) and the Digital Transformation Agency (DTA) could not fully demonstrate that the arrangements supported the achievement of value for money outcomes,” Mr Hehir said.
“DTA did not comply with the all of the CPRs but did adopt a number of sound practices outlined in Finance guidance when establishing the Digital Marketplace Panel.”
He said Infrastructure did not conduct systematic monitoring to assess whether its panel arrangement was meeting its objectives. The panel ceased operation in February.
Mr Hehir said that in three cases it was difficult for entities to demonstrate value for money due to the absence of competition.
“When using such arrangements, entities need to adopt processes that are not just technically compliant with the CPRs but are also consistent with their intent, which is to drive value for money through competition,” Mr Hehir said.
The Auditor-General made four recommendations aimed at improving compliance with the CPRs and ensuring officials had sufficient understanding of procurement requirements.
The Auditor-General’s online report can be accessed at this PS News link and his 121-page printed report at this link.
The audit team was Grace Guilfoyle, Elizabeth Wedgwood, James Sheeran, Ashton Barrington-Knight and Michelle Page.
