A member of parliament questions the Treasurer about the procurement process for government telecommunications services, focusing on potential bias and value for money. The Treasurer defends the process, citing cost-saving strategies and industry consultation.

AnsweredQoN 2157Legislative Council
Asked
29 June 2004
Portfolio
Treasurer

QuestionView source ↗

Referring to the procurement of telecommunications services for the Western Australian Government -
(1) What is the experience and qualifications of the officers designing the tender process used for buying telecommunications services?
(2) Is a consultant or consultants providing advice to the Government in respect of the procurement process?
(3) If yes to (2), have the consultant or consultants previously been employed by the any company providing telecommunication services?
(4) If yes to (3), what are the details for each consultant and who were they previously employed by?
(5) Is the Treasurer aware that a request for a tender has been structured in such a way as to include provision of fixed to mobile calls within the tender for mobile telephone services?
(6) Is the Treasurer aware that the structuring of the tender in this way will advantage a particular company, and will not result in the best possible outcome for taxpayers?
(7) Will the Treasurer agree to review the tender process in this instance to ensure competitive neutrality between competing service providers, and the best possible use of taxpayer funds?

AnswerView source ↗

Answered
25 August 2004
Responded by
Minister for Housing and Works representing the Treasurer
Response time
57 days
(2) Yes. (3) Yes. (4) David Taylor, AOT Consulting, not previous employee of a telecommunications company. Jeffrey Beale, Beale Telecommunications, previously a Telstra employee some 8 years ago. Jim Dillon, Fastlane Software, previously employed by Optus 2 years ago. (5) Yes - this is a deliberate strategy to achieve substantial savings through procurement reform, after having consulted in-depth with government telecommunications procurement specialists with regards to the proposed contract categories and structure. The development of the request for tender was undertaken by a group of agencies whose prime purpose is to obtain competitive prices. This decision ensures that competition was not stifled and to allow the most competitive supplier to provide services to Government. Industry consultation occurred as a formal part of the development of the request for tender and the draft request for tender was made available to industry on 12 May 2004. There were no objections received in the written comments from suppliers on the inclusion of fixed to mobile services category. (6) Structuring the request for tender in this way will not advantage a particular company and will result in the best possible outcome for taxpayers. There is an equal opportunity to tender. Competitive supplier(s) that provide value for money will have a good chance of being selected for the respective category. The request for tender was developed after consulting both industry and government agency telecommunications specialists with substantial experience in procuring telecommunication services. (7) No.
(3) Yes. (4) David Taylor, AOT Consulting, not previous employee of a telecommunications company. Jeffrey Beale, Beale Telecommunications, previously a Telstra employee some 8 years ago. Jim Dillon, Fastlane Software, previously employed by Optus 2 years ago. (5) Yes - this is a deliberate strategy to achieve substantial savings through procurement reform, after having consulted in-depth with government telecommunications procurement specialists with regards to the proposed contract categories and structure. The development of the request for tender was undertaken by a group of agencies whose prime purpose is to obtain competitive prices. This decision ensures that competition was not stifled and to allow the most competitive supplier to provide services to Government. Industry consultation occurred as a formal part of the development of the request for tender and the draft request for tender was made available to industry on 12 May 2004. There were no objections received in the written comments from suppliers on the inclusion of fixed to mobile services category. (6) Structuring the request for tender in this way will not advantage a particular company and will result in the best possible outcome for taxpayers. There is an equal opportunity to tender. Competitive supplier(s) that provide value for money will have a good chance of being selected for the respective category. The request for tender was developed after consulting both industry and government agency telecommunications specialists with substantial experience in procuring telecommunication services. (7) No.
(4) David Taylor, AOT Consulting, not previous employee of a telecommunications company. Jeffrey Beale, Beale Telecommunications, previously a Telstra employee some 8 years ago. Jim Dillon, Fastlane Software, previously employed by Optus 2 years ago. (5) Yes - this is a deliberate strategy to achieve substantial savings through procurement reform, after having consulted in-depth with government telecommunications procurement specialists with regards to the proposed contract categories and structure. The development of the request for tender was undertaken by a group of agencies whose prime purpose is to obtain competitive prices. This decision ensures that competition was not stifled and to allow the most competitive supplier to provide services to Government. Industry consultation occurred as a formal part of the development of the request for tender and the draft request for tender was made available to industry on 12 May 2004. There were no objections received in the written comments from suppliers on the inclusion of fixed to mobile services category. (6) Structuring the request for tender in this way will not advantage a particular company and will result in the best possible outcome for taxpayers. There is an equal opportunity to tender. Competitive supplier(s) that provide value for money will have a good chance of being selected for the respective category. The request for tender was developed after consulting both industry and government agency telecommunications specialists with substantial experience in procuring telecommunication services. (7) No.
(5) Yes - this is a deliberate strategy to achieve substantial savings through procurement reform, after having consulted in-depth with government telecommunications procurement specialists with regards to the proposed contract categories and structure. The development of the request for tender was undertaken by a group of agencies whose prime purpose is to obtain competitive prices. This decision ensures that competition was not stifled and to allow the most competitive supplier to provide services to Government. Industry consultation occurred as a formal part of the development of the request for tender and the draft request for tender was made available to industry on 12 May 2004. There were no objections received in the written comments from suppliers on the inclusion of fixed to mobile services category. (6) Structuring the request for tender in this way will not advantage a particular company and will result in the best possible outcome for taxpayers. There is an equal opportunity to tender. Competitive supplier(s) that provide value for money will have a good chance of being selected for the respective category. The request for tender was developed after consulting both industry and government agency telecommunications specialists with substantial experience in procuring telecommunication services. (7) No.
(6) Structuring the request for tender in this way will not advantage a particular company and will result in the best possible outcome for taxpayers. There is an equal opportunity to tender. Competitive supplier(s) that provide value for money will have a good chance of being selected for the respective category. The request for tender was developed after consulting both industry and government agency telecommunications specialists with substantial experience in procuring telecommunication services. (7) No.
(7) No.

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