Government procurement services

(Budget Output 1.5)

Procurement and contract management

Treasury made a significant contribution to the success of the Government's climate-change policies through its management of whole-of-government contracts and its responsibility for procurement policy. During 2007-08, we undertook a major tender process for the provision of motor vehicles to the Government. Vehicles tendered were assessed against the Government's minimum emissions ratings for passenger and commercial vehicles. Safety was also a major consideration and the new fleet will comply with the Government's newly established minimum safety standards. The new motor vehicle contract will assist the Government to significantly reduce its carbon footprint and provide a safer fleet of vehicles on Tasmanian roads. As Government vehicles are sold into private hands at the end of their lease terms, these benefits will filter out to the wider Tasmanian community.

The Treasurer's Instructions were also amended to strengthen the requirement for environmental impact to be considered throughout the procurement process. Climate change considerations must now be part of the evaluation process for all major procurements (purchases with a value of $100 000 and over, or $250 000 and over for roads and bridges), and included where appropriate in procurements under $100 000.

Next Year…

In 2008–09, we will finalise contracts for the provision of air-freight services and computer hardware and related services, and commence planning for the renewal of the petroleum products contract. All of these tender processes will take into consideration climate change issues during the preparation of specifications and the evaluation of tenderers and the products or services that they offer.

We will also put in place introductory procurement training courses for Government procurement staff, develop a good practice guide (in conjunction with the Tasmanian Climate Change Office) to assist agencies to incorporate climate change measures into major purchasing decisions, and commence stage one of redeveloping the 'Buying for Government' and 'Winning Government Business' websites to make them more user-friendly.

Administration of the Tasmanian Risk Management Fund

During 2007–08 we completed a major tender process for a Fund Administration Agent to provide the following services: the placement of insurance, as required; the administration of claims; and advice in relation to claims management. The previous Fund Administration Agent, Marsh, has been reappointed for three years from 1 July 2008, with options to extend up to a further four years.

We were also required to respond to matters arising from the management of the Bridgewater High School fire claim, and to provide advice to Government on funding issues.

Next Year…

In 2008–09 we will undertake a tender process for the provision of actuarial services to the Fund. The Fund's actuary provides estimates of outstanding liabilities and recommended contributions from agencies to cover the liabilities. The actuary also provides ad-hoc advice on the Fund as required by Treasury.

Members of the Procurement and Property Branch from left: Brian Mignot, Alison Steele, Tania Zotsch and Matthew Nesham.