Mr Birney questions the Treasurer regarding the Common Use Arrangement (CUA) with Telstra, focusing on expenditure, contract slippage, and sponsorship benefits. The Treasurer defends the new CUA, citing cost savings and improved service quality.

AnsweredQoN 771Legislative Assembly
Asked
28 March 2006
Portfolio
Treasurer

QuestionView source ↗

I refer the Treasurer to the response given to Questions on Notice No. 414, question (11), advising that no businesses had been removed from the Common Use Arrangements (WA), and ask -
(1) Can the Treasurer please advise the annual government expenditure under the CUA with Telstra, compared with annual government expenditure under previous arrangements with Telstra?
(2) Can the Treasurer please advise why it was necessary for the State Supply Commission to issue a circular to all government agencies complaining of slippage under the new arrangements, bearing in mind that slippage only occurs if the contract in place is not working?
(3) Can the Treasurer confirm the substantial benefits of sponsorship to the State were included as an evaluation criterion under value for money assessment?
(4) Given the previous arrangements relating to sponsorship of major events and the difficulties involved in attracting major events and sponsorship, if sponsorship was not included as an evaluation criterion, why not?
(5) Will the Minister please table the tender evaluations for this CUA?

AnswerView source ↗

Answered
11 April 2006
Response time
14 days
(1) The annual government expenditure with Telstra under the CUA is estimated to be $2.1 million in the first year of the contract. The annual government expenditure with Telstra in the last year of the previous CUA was approximately $16.5 million.
(2) The State Supply Commission (SSC) issued the Buyer Alert to remind public authorities that where a mandatory CUA has been established, they must use these arrangements as their exclusive source of supply. The SSC referred to leakage from the mobile telecommunication contract because some agencies have been slow in transitioning from the previous contractor to one of the new contractors. The new mobile telecommunications services CUA has delivered an excellent outcome for government, including a number of improvements to service quality and savings of approximately 30% on the previous CUA.
(3) Yes. The tender request included an evaluation criterion (Infrastructure and Local Industry Participation), which included sponsorship as one of the aspects considered.
(4) Not applicable.
(5) No.

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