WA Parliament question regarding Western Power's engagement of McKinsey for a business review, focusing on procurement processes, board approval, and ministerial awareness.

AnsweredQoN 4695Legislative Assembly
Asked
10 November 2015
Portfolio
Energy

QuestionView source ↗

I
refer to Legislative Council Question C1203 regarding the engagement of McKinsey
for Western Power’s “business review”, and ask: (a) was
the request for services ultimately contracted to McKinsey advertised on
Western Power’s Ariba procurement system and: (i) If
yes, on what date did it appear; and (ii) If no, why not; (b) were
any other companies approached or requested to submit a tender for the required
services either through the Ariba system or any other method; (c) if
any company other than McKinsey was approached or requested to submit a tender
for the required services through a method other than the Ariba system, what
was that method; (d) on
what date was contact made between Western Power and McKinsey in relation to
the services for which a contract was ultimately executed on 11 August 2015; (e) did the engagement of McKinsey meet Western Power’s procurement policy and if yes, how did this contract meet the policy; (f) how
did Western Power determine the contract price was “best value for money”; (g) on
what exact date did the Board approve the contract; (h) which
members of the Board approved the contract; (i) on
what date was the Minster informed or made aware of McKinsey’s engagement; and (j) did
Cabinet play any part in the engagement, and if yes, what part did it play?

AnswerView source ↗

Answered
16 February 2016
Responded by
Minister for Energy
Response time
98 days
(a) No.
(i) Not applicable.
(ii) Alternate procurement arrangements were used because an Expression of Interest and a more thorough Request for Tender process is better suited to procure services of this nature.
(b) Yes.
(c) An Expression of Interest process followed by a Request for Tender process.
(d) 22 May 2015.
(e) Yes. The engagement of McKinsey met Western Power’s procurement requirements of:
(f) The evaluation panel recommended McKinsey on the basis that they were the tenderer best able to demonstrate experience and success in the design of organisation wide transformation programmes against the evaluation criteria. The evaluation methodology included experience, capability, methodology and price components.
(g) 21 July 2015
(h) The decision was unanimous. All directors were present with the exception of Mr P Underwood.
(i) 12 August 2015
(j) No.

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