An audit of procurement procedures at the new Western Sydney Airport project has found the construction company, Western Sydney Airport Co (WSA Co) to be largely achieving value for money.
In his report audit, Western Sydney Airport Procurement Activities, Auditor-general, Grant Hehir assessed whether WSA Co’s procurement framework and activities were achieving value for money.
“WSA Co’s procurement framework and procurement activities are largely achieving value for money,” Mr Hehir said.
“WSA Co now has in place an appropriate procurement framework with procedures and systems that support compliance with its procurement framework, having identified and addressed some early poor practices.”
However, he said the company had been slow to develop its procurement framework, with significant procurement activity undertaken before a framework was in place.
“In the early procurements, non-competitive processes were often used to engage and re-engage advisory firms due, to some extent, to the deadlines imposed on WSA Co during its establishment phase,” Mr Hehir said.
“Public disclosure of procurement outcomes has been limited.”
He said value for money outcomes were now, in large part, demonstrated.
“Key to this was the adoption of selection processes that considered financial and non-financial costs and benefits, and WSA Co choosing candidates that had been assessed as best meeting the relevant evaluation criteria,” Mr Hehir said.
“Where value for money outcomes had not been demonstrated, for the highest value contract this was primarily the result of insufficient analysis being presented and for the remainder this was the result of poor record keeping practices.”
The audit team was Tracey Bremner, John Cusbert and Brian Boyd.
The Auditor-General’s online report can be accessed at this PS News link and his 69-page printed report can be accessed at this PS News link.
