David Johnston (WA, Liberal Party, Shadow Minister for Defence) Share this | Link to this | Hansard source

asked the Minister representing the Minister for Defence, upon notice, on 27 June 2012:

With reference to procurement procedures undertaken by the department to implement the following initiatives:

(1) Which of the above initiatives have been fully implemented and on what dates.

(2) Have any of the above initiatives not yet been fully implemented; if so, which initiatives and why.

Bob Carr (NSW, Australian Labor Party, Minister for Foreign Affairs) Share this | Link to this | Hansard source

The Minister for Defence has provided the following answer to the honourable senator’s question:

(1) The following initiatives have been implemented:

Probity advisors are engaged on a case by case basis dependent on the risk, complexity and value of the procurement. This is an ongoing requirement. Defence refers to probity guidance that is included in the Defence Procurement Policy Manual; Australian National Audit Office Better Practice Guide Fairness and Transparency in Purchasing Decisions; and the Department of Finance and Deregulation’s Buying for the Australian Government, Ethics and Probity in Procurement.

The NEP Centre of Excellence (COE) was established in Defence Support Group (DSG) on 1 July 2010 and offers procurement support and advice for procurement activities conducted across Defence. The COE (recently renamed to the Defence Procurement and Contracting Branch (DPCB)) provides support to ensure more robust and consistent commercial approaches within the procurement activity it supports across the Department.

The Non-Equipment Chief Procurement Officer (NECPO) position was established on 1 July 2010. For the period March – June 2012, 40 requests for endorsement of spending proposals valued over $1million were received. From 2 July 2012, as a result of the implementation of Non Materiel Procurement Shared Services, NECPO has been renamed Defence Chief Procurement Officer (DCPO) and the Non Equipment Procurement and Contracting Branch (NEPCB) has been renamed the Defence Procurement and Contracting Branch (DPCB). In addition to the endorsement of spending proposals over $1 million, all requests to establish Non Materiel Procurement (NMP) standing offer panels will also require endorsement.

Defence participates in Whole of Government procurement activities such as stationery and travel. In addition, Defence standing offer panels have also been created for office furniture; accommodation furniture and appliances; physical and recreational equipment; MRO hardware and tools; and OH&S.

The Working Group was established and the first meeting held on 1 September 2010 with invited stakeholders from Defence Groups and Services. The last meeting to date was held on 10 May 2012.

The website is established and has, to 2 July 2012, had 47235 hits.

On 26 September 2011, the Chief of the Defence Force and the Secretary of Defence issued Joint Directive 26/2011 advising the establishment of the Defence Procurement Assurance Review (PAR) process. Defence Support Group has since conducted PAR Gate Reviews for Defence Force Recruiting, Health, Childcare, Logistics and Major Capital Facilities (MH60R) procurements. A review is currently being conducted for the Base Services Re-tender.

DSG has provided procurement practitioners for major procurement activities such as Defence Force Recruiting, Health and Logistics. Staff are currently working with Defence Legal to implement Defence arrangements under the Attorney- General’s Whole of Australian Government legal multi user list.

The Defence Support Group Procurement and Contracting Branch maintains internal status reporting for all major non-equipment procurement activity over $1m that it has endorsed or supported.

DSG compiles and publishes the Defence Annual Procurement Plan on AusTender and also conduct a mid year review and update. DSG staff provide ongoing support to Defence procurements, assisting and advising on the drafting of Tender documentation and the publication of these on AusTender. DSG also provide support with the development of tender documentation, evaluation of tenders and contract negotiations.

The strategy for recruitment and retention of suitably skilled procurement professionals engaged by DSG is to recruit personnel with some procurement skills and provide access to appropriate professional training, on the job training and coaching to increase skill levels to a suitable level. Retention of fully qualified procurement staff is an ongoing issue due to the competitive remuneration available in the private sector. The further introduction of Shared Service Reform allows DPCB the opportunity to fully develop staff skill levels and to provide better career structures for procurement staff wishing to seek advancement in their field of expertise without needing to leave the Group or Defence.

(2)   The following initiatives not yet been fully implemented:

The business centre was established on 1 February 2011 and is on track to complete the majority of transition by end of December 2012. Under the new shared services arrangements, the centre has transferred to Chief Finance Officer Group. Defence Support Group is continuing to develop and implement an interim electronic forms solution to streamline purchase order processing and to eliminate data entry duplication.

The category management model that defines roles, responsibilities and processes has been developed. Following a pilot in the office supplies category which has resulted in significant savings, the model has been refined and will be implemented across specific NMP categories.