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 Appendix 5 - Consultancy services

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Consultancy services

Policy on selection and engagement of consultants

Contracting for a consultancy service is a prominent activity no different in principle from procuring other property and services. The requirements of the Commonwealth Procurement Guidelines and the Chief Executive Instructions are relevant. Additionally, departmental Chief Executive Instructions state that the Secretary’s agreement is required for all consultancies of $20,000 or more.

Consultancy services are assessed by determining whether the services meet the criteria of a consultancy as set out in the Department of Finance and Deregulation’s Financial Management Guidance No 15. The assessment process distinguishes between consultancy and non-consultancy contracts, taking into account their respective characteristics. These characteristics represent an amalgam of those commonly exhibited across the diverse range of consultancy and non-consultancy arrangements.

In considering these characteristics, the Department focuses on two questions to determine the nature of the agreement, namely:

  • do the services involve development of an intellectual output that assists with agency decision making, and
  • will the output reflect the independent views of the service provider?

Details of contractors—for example, those engaged through employment agencies for short-term relief or other purposes—are not included in this report.

Summary statement

During 2010–11, 35 new consultancy contracts were entered into, involving total actual expenditure of $1.942 million. In addition, five ongoing consultancy contracts were active during the year involving total actual expenditure of $0.529 million.

In accordance with the requirements for annual reports for departments, executive agencies and Financial Management and Accountability Act 1997 bodies, detailed information relating to new consultancy contracts to the value of $10,000 or more (including GST) is provided in Table 23.

Information on expenditure on contracts and consultancies is also available on the AusTender website at <http://www.tenders.gov.au>.

Table 23: Consultancy services let during 2010–11, to the value of $10,000 or more

Consultant name Description Contract price ($) Selection process1 Justification2
Access Economics Financial modelling and analysis for Disaster Recovery Taskforce 87,753 Panel C
Australian Healthcare Associates Review of prisoner through care projects (Indigenous Justice Program), Victoria and Tasmania 75,535 Open tender C
Australian Institute of Aboriginal and Torres Strait Islander Studies Federal Minimum Native Title Connection threshold research project 79,475 Direct C
Australian Institute of Criminology Evaluation of Indigenous Justice Program – diversion 499,164 Open tender B
Centre for International Economics Cost benefit analysis of licensing options for security guards working in the private industry 79,750 Direct C
Clement Consulting Services Pty Ltd Advise on Cyber Storm III pre-exercise planning 17,600 Direct C
Cultural Perspectives Pty Ltd Evaluation of Indigenous Justice Program – Aboriginal sentencing courts and conferences; offender support/ reintegration 704,990 Open tender B
Deloitte Touche Tohmatsu Regulation impact analysis – AML/CTF reforms to remittance sector 79,530 Panel B
Deloitte Touche Tohmatsu Cost allocations for lawful access to telecommunications 106,700 Select tender A
Deloitte Touche Tohmatsu Review financial health of Aboriginal and Torres Strait Islander Legal Services 127,527 Panel B
Edith Cowan University Evaluation of Indigenous Justice Program – night and community patrols 369,600 Open tender B
Elliott Street Consulting Pty ltd Contract for the review of the Legislative Drafting Support Program using AusAID’s criteria 15,884 Direct C
Gibson Quai –
AAS Pty Ltd
Identify better practice for the Triple Zero emergency service organisations 99,870 Direct C
Global Justice Solutions (Asia) Pty Ltd Review of prisoner through care projects (Indigenous Justice Program), South Australia and Western Australia 160,220 Open tender C
Global Justice Solutions (Asia) Pty Ltd Review of prisoner through care – out care 19,800 Direct C
Horizon Research Develop effective language for counter-terrorism related public messaging 75,752 Direct C
Information Integrity Solutions Pty Ltd Develop privacy impact assessment for reforms to the Telecommunications (Interception & Access) Act 1979 68,750 Direct C
Jakeman Business Solutions Pty Ltd Write the national exercise report for
Cyber Storm III
39,600 Panel C
KPMG Develop a risk-based methodology for prioritising CERT Australia’s engagement with business 79,500 Panel C
KPMG Review of the Northern Territory Legal Aid Commission 262,202 Panel B
Lateral Economics Report concerning the impact on the legal services market of proposed reforms to Commonwealth legal services procurement. 75,377 Direct source B
Major Training Services Pty Ltd NCTC training policy and framework review 16,500 Direct C
Managing Justice Prepare a report that designs the architecture necessary for the future collection of data about the federal civil justice system 25,850 Direct B
Market Attitude Research Services Pty Ltd Tsunami Community Education Strategy –
Stage 1
60,000 Direct B
Noetic Solutions Pty Ltd Review of prisoner through care projects (Indigenous Justice Program), Queensland and Northern Territory 184,327 Open C
Noetic Solutions Pty Ltd Development of an ICT ASNET Strategic Plan 2011–2013 66,000 Direct B
Noetic Solutions Pty Ltd Cost benefit analysis of SAP HR and Aurion 77,000 Panel B
Peter John Hamburger Review of the Australian Commission for Law Enforcement integrity capabilities, operating arrangements and resources 24,000 Direct B
Praxis Consultants Pty Ltd Independent review of the Pacific Law Library Twinning Program 17,000 Direct B
Price WaterhouseCoopers Benchmarking ICT & finance functions 175,000 Open tender B
Price WaterhouseCoopers Development of RIS on chemical security 293,551 Open tender B
SHL Australia Pty Ltd Design and conduct second development centre for AGD EL2/PLO development program 80,000 Panel B
Team HR Australia Pty Ltd Training needs analysis for the Australian Emergency Management Institute 75,915 Panel C
The Nous Group Facilitate the National Disaster Resilience Workshop 11,550 Direct B
Thinkplace Trust Develop an evaluation model for the Organised Crime Strategic Framework 79,488 Direct B
Yellow Edge Pty Ltd Evaluation specialist for Countering Violent Extremism Taskforce 79,860 Direct A

1 Explanation of selection process terms:

Open tender: A request for tender is published widely and all submissions received before the deadline are accepted from any potential suppliers who satisfy the conditions for participation.

Select tender: An invitation to tender is issued to potential suppliers from a short list.

Direct sourcing: A form of restricted tendering in which an agency may invite a potential supplier or suppliers of its choice to make a submission because of their expertise and/or their special ability to supply the goods and/or services sought.

Panel: An invitation to tender is issued to a panel of potential suppliers (who have pre-qualified) established by the agency to supply to the Government.

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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