Hon Norman Moore questions the awarding of a tender to Evans and Peck for assessing Argyle's underground project financial analysis, focusing on the tender process, selection rationale, value for money, and impact on royalty reduction decisions. The Minister's answer confirms an open tender process and justifies the selection based on the quality and breadth of Evans and Peck's proposal.

AnsweredQoN 2051Legislative Council
Asked
19 May 2005
Portfolio
State Development

QuestionView source ↗

I refer the Minister to the awarding of tender to Evans and Peck for the assessment of Argyle’s financial analysis of its proposed underground project, and ask -
(1) Was this contract offered through an open tender process?
(2) If not, why not?
(3) Why was Evans and Peck chosen?
(4) On what basis did they represent value for money?
(5) Will the Evans and Peck work determine the Government’s position on royalty reduction for Argyle’s proposed underground project?
(6) If not, what is the purpose of this work?

AnswerView source ↗

Answered
21 June 2005
Responded by
Leader of the House representing the Minister for State Development
Response time
33 days
1. Yes. 2. See (1) above. 3. Evans and Peck demonstrated that it would be able to satisfactorily complete the requirements covered by the scope of work to a higher standard than the other tenderers. 4. The Evans and Peck proposal provided a more wide spread method to achieve a satisfactory report for the Government; and because of this and the reason stated in (3) above, the Evaluation Panel decided that, on a Value for Money basis, it was best suited to meet the tender requirements. 5. Evans and Peck will undertake an independent review to determine the reasonableness of the financial projections presented to Government by Argyle by verifying the project costs, revenue estimates and projected IRR. The Government will then be in a position to make a final decision on whether, and to what extent assistance is warranted and what form it might take. 6. See (5) above.

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