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Government procurement
 
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Contracts with a value of $50 000 and over (ex GST)

Awarded contracts
2008–09
Total number of contracts
17
Total number of contracts awarded to Tasmanian businesses
10
Total value of contracts awarded
$7 284 835
(including extensions)
$8 260 335
Total value of contracts awarded to Tasmanian businesses (excluding extensions)
$4 573 860
Number of tenders
17
Total bids made
85
Total Tasmanian bids
38

Name of contractorLocation of contractorDescription of contract
Start date
Value of contract
Value of contract extension
Bids

No.
Tas bids

No
Aurora Energy Pty LtdHobart, TasmaniaSupply of Retail Electricity Services
22/06/2009
$1 758 908
2
1
Morris-Nunn and AssociatesHobart, TasmaniaDesign Team - Princes Wharf Renewal
2/06/2009
$500 000
18
8
Alphawest Services Pty LtdHobart, TasmaniaConsultancy Service for IT Infrastructure Design
2/06/2009
$73 200
5
5
Cordiner King and Co Pty LtdMelbourne, VictoriaTasmanian Government Businesses Executive Search Advisory Services
27/05/2009
$432 000
18
2
20th Century PlumbingDerwent Park, TasmaniaTrade Waste Upgrade - Elizabeth Street Pier, Hobart
20/05/2009
$183 396
1
1
Tascon Constructions Pty LtdMoonah, TasmaniaSomerset Apartments Building Repairs and Painting
9/04/2009
$208 000
6
6
Unique FloorsNew Town, TasmaniaSomerset Apartments Carpet Replacement
9/04/2009
$144 356
2
2
FUELtrac Pty LtdToowong, QueenslandFuel Consultancy Services
23/03/2009
$51 075
2
1
Flooring Tasmania Pty LtdRichmond, TasmaniaConcrete Corrosion Inspection - 10 Murray Street, Hobart
27/02/2009
$74 600
1
1
Major Training ServicesQueenscliff, New South WalesDevelopment and Delivery of Procurement Training
25/02/2009
$63 900
$31 500
7
1
Australian Air ExpressMelbourne, VictoriaCartage and Interstate Air Freight Contract
1/02/2009
$644 000
$644 000
3
3
Impact Solutions International Pty LtdNew Town, TasmaniaAdditional Delivery of Leadership Extensions Program
16/01/2009
$56 100
1
1
Mercer (Australia) Pty LtdMelbourne, VictoriaAppointment as Actuary for the Purposes of the Retirement Benefits Act 1993, and to provide other actuarial services to the Tasmanian Government.
15/12/2008
$300 000
$200 000
4
1
Deloitte Corporate Finance Pty LtdSydney, New South WalesFinancial Adviser - TOTE Restructure
11/12/2008
$1 100 000
$100 000
6
1
Hobart Carpet ChoiceHobart, TasmaniaPartial Recarpeting, Franklin Square Complex, 21 Murray Street Hobart
1/12/2008
$129 300
3
3
Saha International LimitedMelbourne, VictoriaRegulatory Advisor
22/09/2008
$120 000
1
0
KPMGHobart, TasmaniaTasmanian Water and Sewerage Due Diligence
9/09/2008
$1 446 000
5
1

Common-use contracts

A common-use contract is a contract established by the Department of Treasury and Finance for the supply of goods and services to all inner-Budget agencies. Common-use contracts can also be used by Government business enterprises, State-owned companies, statutory authorities, local government and other authorised organisations approved by Treasury.

Common-use contracts 2008–09

Number of tenders
3
Total number of bids received
38
Total number of bids received from Tasmanian businesses
18
Total number of contracts awarded
26
Total number of contracts awarded to Tasmanian businesses
13
Total value of contracts awarded (including possible extensions)
$114.7 million
Total value of contracts awarded to Tasmanian businesses (including possible extensions)
Unable to estimate*

* As some Common-use Contracts are panel arrangements, the contractors are not guaranteed any level of supply.

Information, Communication and Technology Hardware Contract

The tender for the Information Communication and Technology Hardware contract attracted submissions from 33 businesses. Of the 33 interested businesses, 24 contracts were awarded. Of the 14 Tasmanian businesses that submitted bids, 12 were successful.

The contracts arising from this tender were awarded for a two-year period from 1 May 2009, with a total value of $38 million. Each contract has the option of two two-year extensions, at a total value of $114 million.

Cartage and Interstate Freight Contract

Three businesses submitted a bid for Cartage and Interstate Freight contract, all of which had a Tasmanian presence. Australian air Express Pty Ltd was the successful tenderer, and was awarded the contract for an initial two-year period from 1 November 2008, with an option to extend for a further two-year period. The contract has a total value of $644 000, with the extension option also valued at $644 000.

Fuel Consultancy Services Contract

In preparation for the renewal of the Petroleum Products contract in November 2009, Treasury requested quotations for Fuel Consultancy Services to assist with the tender process. Two businesses submitted a quotation, with the contract awarded to FUELtrac Pty Ltd. Of the two bids, one business was Tasmanian based. The Fuel Consultancy Services contract runs from 23 March 2009 to 31 October 2014 with a total value of $51 075.

Exemptions

All Government agencies undertake procurement activity in accordance with the Treasurer’s Instructions. These Instructions can be accessed by following the link on the Purchasing website at www.purchasing.tas.gov.au.

The Treasurer’s Instructions relating to procurement provide the policy and procedural framework that guide agencies in undertaking their procurement activities. All procurement activity is based on the following four principles:
  • value for money;
  • open and effective competition;
  • purchasing ethics and code of conduct; and
  • enhancing opportunities for local business.

There are certain circumstances in which our Secretary, or a delegate, can grant an exemption to an agency from:
  • undertaking an open tender;
  • undertaking a quotation process; or
  • using only pre-qualified consultants or contractors.

These circumstances include, but are not limited to, matters of urgency; situations where there is only one supplier; exceptional circumstances; protection of essential security interests; and where the cost to the agency and suppliers outweighs the value for money of conducting an open tender process.

Treasurer’s Instructions: exemptions granted in 2008–09

In 2008–09, we approved 44 requests for exemption from the Treasurer’s Instructions in relation to the above matters. Details of the exemptions granted are provided below.

Additionally, the Crown Contracts Confidentiality Policy contained in the Treasurer’s Instruction 1401 provides that in any contract between the Crown and any other party, confidentiality requirements in relation to the provisions of the contract are not to be included unless an exemption has been approved as being in the public interest.

Details of contracts containing confidentiality provisions, as a result of receiving exemptions, are also provided below.

The value of the contracts are, in many instances, estimates only as the actual purchase figure may not be known at the time of the request. Therefore, the figures below may vary from those that are available through the Tenders website at www.tenders.tas.gov.au/ and/or published in the annual reports of the relevant agencies.


Exemptions – purchases valued at more than $10 000 but less than $100 000: goods and services

The Treasurer’s Instruction 1106 requires agencies to seek three written quotations, including at least one from a local supplier, for the purchase of goods and services where the value of the procurement is more than $10 000 but less than $100 000. The following table provides details of 11 exemptions approved during 2008–09.

DepartmentDescriptionReason
Contract value
Department of Economic Development and TourismEngagement of a provider to undertake public relations services in the United Kingdom, for a period of 11 months.Exceptional circumstances in that the unavoidable and sudden termination of the previous contract had left services exposed and the market vulnerable, that the contractor was best placed to undertake the work based on prior work for the provision of the services and that the period would provide sufficient time for the agency to review its international strategy and conduct an open tender process.
$80 000
Department of Environment, Parks, Heritage and the ArtsPurchase of Launceston Air Quality Data.The goods and services can be supplied only by a particular supplier and no reasonable alternative or substitute goods or services exist due to an absence of competition for technical reasons.
$60 000
Department of Health and Human ServicesPurchase of an additional module for a Light Cycler 480 system.The procurement was for the additional delivery of goods or services by the original supplier and was intended either as replacement parts, extensions, or continuing services for existing equipment, software, services, or installations, where a change of supplier would have compelled the agency to procure goods or services that did not meet requirements of inter-changeability with existing equipment.
$25 000
Department of Health and Human ServicesEngagement of a consultant to undertake an evaluation and update a
2005–06 report on the outcomes of the re-engineering work in the Peri-operative Service of the Royal Hobart Hospital.
Exceptional circumstances in that the consultant was best placed to undertake the evaluation based on prior re-engineering work performed for the Peri-operative Services Unit.
$42 500
Department of Health and Human ServicesPurchase of a Maintenance and Servicing Agreement for BreastScreen Tasmania’s Mammography X-ray units, for a period of 12 months.The goods or services could be supplied only by the particular supplier and no reasonable alternative or substitute goods or services existed due to the protection of patents, copyrights or other exclusive rights, or proprietary information.
$68 662
Department of Infrastructure, Energy and ResourcesParticipation in a national Community and Stakeholder Attitudinal Research Project.As a result of exceptionally advantageous conditions that only arose in the very short term.
$35 000
Department of JusticeProvision of the Tasmanian component of a national survey, "Return to Work 2009–10".Exceptional circumstances in that the consultant was best placed to undertake the work based on prior work on the survey and that the contract would ensure that the need for comparable and consistent results would be achieved.
$33 000
Department of Premier and CabinetHire of exhibit space at the Hobart and Launceston agricultural shows for the 2008 and 2009 show seasons.The goods or services could be supplied only by the particular supplier and no reasonable alternative or substitute goods or services existed due to an absence of competition for technical reasons.
$64 000
Department of Treasury and FinanceEngagement of a provider to deliver the Certificate IV in Government (Revenue Administration) qualification.In the specific circumstances of the procurement, the cost to the agency and to suppliers of seeking written quotations outweighed the value for money benefits.
$24 000
Department of Treasury and FinanceEngagement of a contractor to develop an automated electronic payment transaction processing environment within the Government Receipting and Licensing System.The goods or services could be supplied only by the particular supplier and no reasonable alternative or substitute goods or services existed due to the protection of patents, copyrights or other exclusive rights, or proprietary information.
$30 000 – $40 000
Department of Treasury and FinanceEngagement of a provider for additional delivery of a leadership extensions program.Exceptional circumstances in that the provider was best placed to undertake the work based on the distinct and detailed knowledge developed during prior work on the previous leadership program and other related projects.
$56 100


Exemptions – purchases valued at $100 000 and over: goods and services

The Treasurer’s Instruction 1107 requires agencies to call open tenders for the purchase of goods and services where the value of the procurement is $100 000 or more.
The following table provides details of the 29 exemptions approved during 2008–09.

DepartmentDescriptionReason
Contract Value
Department of Environment, Parks, Heritage and the ArtsEngagement of a provider to undertake the coordination, entry and judging processes for the Tasmanian Awards for Environmental Excellence, for a contract period of one year with two options to extend for one year each.The goods or services could be supplied only by the particular supplier and no reasonable alternative or substitute goods or services existed due to an absence of competition for technical reasons.
$ 90 000 – $100 000
Department of Environment, Parks, Heritage and the ArtsPurchase of multiple aerosol particle counters.Exceptional circumstances due to the lack of value for money benefits of calling a public tender and the additional costs that would have been incurred by purchasing the only comparable equipment produced by another manufacturer.
$200 000 – $300 000
Department of Environment, Parks, Heritage and the ArtsPurchase of pesticide to eradicate rodents from Macquarie Island.The goods or services could be supplied only by the particular supplier and no reasonable alternative or substitute goods or services existed due to an absence of competition for technical reasons.
$910 000
Department of Health and Human ServicesPurchase of a QIAsymphony SP machine, including accessories.Exceptional circumstances given a global influenza outbreak, the requirement for the equipment to be in place as soon as possible and the market research undertaken by the agency which identified that the machine was the only system available that met the agency’s requirements of flexibility, ease of use, speed and capacity.
$125 000
Department of Health and Human ServicesPurchase of two-year maintenance service agreement for a HDR Brachytherapy treatment unit.The goods or services could be supplied only by the particular supplier and no reasonable alternative or substitute goods or services existed due to an absence of competition for technical reasons.
$148 120
Department of Health and Human ServicesUpgrade of hardware/software, including one-year post warranty maintenance service agreement, for a HDR Brachytherapy treatment planning system.The procurement was for the additional delivery of goods or services by the original supplier and was intended either as replacement parts, extensions, or continuing services for existing equipment, software, services, or installations, where a change of supplier would have compelled the agency to procure goods or services that did not meet requirements of inter-changeability with existing equipment.
$154 350
Department of Health and Human ServicesPurchase of disaster recovery software for the state-wide Varian Aria Electronic Record for cancer services and ongoing service requirements for a contract period of approximately 10 years.The procurement was for the additional delivery of goods or services by the original supplier and was intended either as replacement parts, extensions, or continuing services for existing equipment, software, services, or installations, where a change of supplier would have compelled the agency to procure goods or services that did not meet requirements of inter-changeability with existing equipment.
$187 500
Department of Health and Human ServicesPurchase of a HD MRI Breast Coil package including two-year post warranty routine maintenance and service.The goods or services could be supplied only by the particular supplier and no reasonable alternative or substitute goods or services existed due to an absence of competition for technical reasons.
$212 000
Department of Health and Human ServicesEngagement of a consultant to undertake further analysis of a review of social and affordable housing.Exceptional circumstances, given that the consultant was best placed to undertake the work based on prior work for the project and the tight timeframe in which the work was required to be completed.
$223 098
Department of Health and Human ServicesEngagement of a provider to modify the Grants Tracker software, provide one-off training and ongoing maintenance and development for a period of three years.The goods or services could be supplied only by the particular supplier and no reasonable alternative or substitute goods or services existed due to the protection of patents, copyrights or other exclusive rights, or proprietary information.
$240 000
Department of Health and Human ServicesUpgrade of fire detection and alarm systems operating in Blocks C and D of the Royal Hobart Hospital.Exceptional circumstances given that the particular supplier owned intellectual property rights for the hardware devices and was best placed to undertake the work based on prior work on the fire detection system, and the expediency with which the work was required to be completed.
$320 000
Department of Health and Human ServicesUpgrade and extend the Central Monitoring System at the North West Regional Hospital.The procurement was for the additional delivery of goods or services by the original supplier and was intended either as replacement parts, extensions, or continuing services for existing equipment, software, services, or installations, where a change of supplier would have compelled the agency to procure goods or services that did not meet requirements of inter-changeability with existing equipment.
$390 378
Department of Health and Human ServicesEngagement of a consultant to undertake a core business analysis process for application to the Royal Hobart Hospital.Exceptional circumstances given the urgency driven by external timeframes beyond the agency’s control, the unique product known to be effective and that the agency had carefully and significantly considered the market to prove that no reasonable alternative or substitute product existed.
$530 000
Department of Health and Human ServicesPurchase of a digital mammography x-ray unit and a seven year post-warranty maintenance service agreement.Exceptionally advantageous conditions that only arose in the very short term (x-ray unit) and that the goods or services could be supplied only by the particular supplier and no reasonable alternative or substitute goods or services existed due to the protection of patents, copyrights or other exclusive rights, or proprietary information (service agreement).
$560 000
Department of Health and Human ServicesProvision of vaccine storage and distribution services, for a contract period of three years with an option to extend for a further year.The goods or services could be supplied only by the particular supplier and no reasonable alternative or substitute goods or services existed due to an absence of competition for technical reasons.
$600 000
Department of Health and Human ServicesEngagement of a consultant to provide additional core business reviews at Launceston General Hospital, North West Regional Hospital and the Mental Health Services area.The goods or services could be supplied only by the particular supplier and no reasonable alternative or substitute goods or services existed due to an absence of competition for technical reasons.
$636 000
Department of Infrastructure, Energy and ResourcesPurchase of 30 000 steel railway sleepers with associated fastenings, and 1 713 lengths of 41 kg rail for the Tasmanian Rail Network.For reasons of extreme urgency brought about by events unforeseen by the procuring entity, the goods or services could not be obtained in time utilising an open or selective tender.
$4 900 000
Department of Infrastructure, Energy and ResourcesPurchase of 300 rail steel sleepers, 50 000 7.5mm NG sleepers with clips and lock in shoulders and 510 lengths of rail for the Tasmanian Rail Network.For reasons of extreme urgency brought about by events unforeseen by the procuring entity, the goods or services could not be obtained in time utilising an open or selective tender.
$6 000 000
Department of JusticeEngagement of a provider (in partnership with the Northern Territory) for the continued provision of services required for the administration of business names in Tasmania, for a contract period of 24 months.In the specific circumstances of the procurement, the cost to the agency and to suppliers of calling public tenders would have outweighed the value for money benefits.
$184 000
Department of JusticeEngagement of services (in partnership with Consumer Affairs Victoria) relating to the management, staffing, application software and IT infrastructure for the provision of a Bond Management Service, for a contract period of four years.As a result of exceptionally advantageous conditions that only arose in the very short term.
$2 430 000
Department of Police and Emergency ManagementUpgrades of an internal software platform and ongoing maintenance for three ‘Sagem’ Livescan automated fingerprint units, for a contract period of four years.The goods or services could be supplied only by the particular supplier and no reasonable alternative or substitute goods or services existed due to the protection of patents, copyrights or other exclusive rights, or proprietary information.
$300 000
Department of Police and Emergency ManagementPurchase of 17 new motorcycles for Tasmania Police.The goods or services could be supplied only by the particular supplier and no reasonable alternative or substitute goods or services existed due to an absence of competition for technical reasons.
$473 238
Department of Premier and CabinetUpgrade of the EnAct Legislative Drafting and Automatic Consolidation System.Exceptional circumstances in that the particular supplier was the only supplier authorised to provide maintenance and support for the software system, and had the specialist knowledge and expertise required to interrelate the software system with other systems.
$99 000
Department of Premier and CabinetEngagement of a consultant, through an expression of interest process rather than an open tender, to provide financial modelling to assist with the preparation for the Tasmanian Government’s response to the Australian Government’s Request for Proposals to roll-out and operate a National Broadband Network for Australia.As a result of urgency.
$100 000 – $340 000
Department of Premier and CabinetExtension of an existing contract in relation to relationship management services in Canberra, for a period of nine months.Exceptional circumstances, due to the imminent closure of the Tasmanian Government Office (in Canberra) and the inability of any other service provider to be able to quickly develop the requisite knowledge, expertise and relationships to progress the current issues in such a short period of time.
$110 000
Department of Primary Industries and WaterEngagement of a consultant to act as interim CEO of the Tasmanian Irrigation Development Board for a period of six months.Exceptional circumstances due to the specific requirement to contract the service provider identified through an extensive exercise, using a contract for service.
$168 000
Department of Treasury and FinanceProvision of expert financial advice in relation to issues surrounding the Tamar Valley Power Station.As a result of urgency.
$100 000
Department of Treasury and FinanceProvision of expert legal advice in relation to the Tamar Valley Power Station.Exceptional circumstances in that the advice was required urgently and the highly specialised nature of the advice required.
$600 000
Department of Treasury and FinanceEngagement of a Financial Adviser, through a selective tender process rather than an open tender, for the provision of financial advice in relation to the possible sale of a Government entity.On the basis of urgency in that there was insufficient time to conduct an open tender process, based on the short period of time that was available to provide advice to the Government that is required to inform discussions with stakeholders and fit within the related legislative framework.
Up to $3 000 000


Exemptions – procurement: building and construction; roads and bridges

The Treasurer’s Instruction 1206 requires agencies to seek three written quotes for the procurement of minor works valued at more than $10 000 but less than $100 000 (excluding GST) for building and construction or less than $250 000 (excluding GST) for roads and bridges works.

The Treasurer’s Instruction 1207 requires agencies to call open tenders for the procurement of major works valued at $100 000 or more (excluding GST) for building and construction or at $250 000 or more (excluding GST) for roads and bridges works. In addition, only pre-qualified contractors, where available categories of pre-qualification exist, may be engaged unless otherwise approved.

In relation to the engagement of consultants, in accordance with the Treasurer’s Instruction 1216, only pre-qualified consultants may be engaged without approval from the Secretary, Department of Treasury and Finance.

The following table provides details of the three exemptions approved during 2008–09.

DepartmentDescriptionReasonContract Value
Department of Environment, Parks, Heritage and the ArtsProvision to allow suitable contractors to tender for remediation works on the breakwater panels at Darlington Jetty, Maria Island National Park, without the requirement for them to be pre-qualified.Due to the remote location of the required works, it was deemed appropriate that tenders were sought from suitable non pre-qualified contractors (as well as pre-qualified contractors) in an open tender process. The Department advised that the tender would include criteria that would satisfy the objectives of the pre-qualification scheme, so that contractors who were pre-qualified and not pre-qualified could be assessed.
$197 000
Department of Infrastructure, Energy and ResourcesEngagement of a local council to undertake minor road works for the Porky Creek Bridge replacement on King Island.The circumstances justified limiting the number of contractors in that there were no other suitable local contractors on King Island and the ability of contractors not established on the Island to competitively deliver the required service was extremely limited, due to the isolated nature of the Island.
$126 000
Department of Infrastructure, Energy and ResourcesEngagement of a contractor to undertake construction of a replacement rail bridge across the East Tamar Highway near Bell Bay.As a result of urgency.
$300 000

Exemptions in relation to confidentiality provisions

The Treasurer’s Instruction 1401 provides that in any contract between the Crown and any other party, confidentiality requirements in relation to the provisions of the contract are not to be included unless an exemption has been approved as being in the public interest.

The following table provides details of the one exemption from this requirement approved during 2008–09. (Note: Only contracts that have been executed are reported below).

DepartmentPartiesDate of Exemption
Treasury and Finance*Deloittes25 November 2008

* Note: The exemption to this contract was time limited and the contract is now fully available.

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