❓ A WA parliamentary question on notice regarding Western Power's contracts with Deloitte, specifically concerning the nature, cost, tendering process, and hourly rates for services related to the Access Arrangement submission to the Economic Regulation Authority. The answer clarifies the contract's purpose and procurement process.
AnsweredQoN 7979Legislative Assembly
QuestionView source ↗
With reference to the Minister's answer to Question on Notice No. 7211 and the $89,969 spent in 2010–2011 by Western Power's Corporate Affairs business area on consultancy and fees for service to accounting firm Deloitte's, I ask:
(a) what were the specific contracts or service arrangements;
(b) what was the amount of each contract;
(c) were the contracts advertised for tender, consistent with State tendering requirements; and
(d) what was the hourly rate for the contractor?
(a) what were the specific contracts or service arrangements;
(b) what was the amount of each contract;
(c) were the contracts advertised for tender, consistent with State tendering requirements; and
(d) what was the hourly rate for the contractor?
AnswerView source ↗
Answered
19 June 2012
Responded by
Minister representing the Minister for Energy
Response time
35 days
The response to Question on Notice No. 7211 incorrectly indicated the contract with Deloitte was with Western Power's Corporate Affairs Branch. The contract was for work within Western Power's Access Arrangement Branch. These two teams work closely within Western Power and the Corporate Affairs procurement officer was assisting the Access Arrangement team. This inadvertently resulted in Western Power incorrectly identifying this contract as a Corporate Affairs contract.
(a) Deloitte was engaged to assist with preparing Western Power's Access Arrangement submission to the Economic Regulation Authority, specifically to provide expertise on the regulatory framework and revenue model, which are legally required elements of the submission.
Deloitte's work consisted of two contracts:
1. Research, analysis and document assistance
Deloitte conducted research and analysis, comparing the regulatory framework in Western Australia with the eastern states. This enabled Western Power to ensure consistency of its Access Arrangement submission with good practice elsewhere in Australia. Deloitte also provided critical review of Western Power's access arrangement proposal.
2.
Developing governance framework for the regulatory revenue model
To accurately calculate the amount of revenue it can collect from customers during an access arrangement period, Western Power is required to produce a detailed 'revenue model'. This model captures all of the costs and revenue streams expected over the five year access arrangement period.
Deloitte was appointed as an independent expert to ensure inputs to the model are robust and that the model follows a best practice approach and can be audited.
(b) Research, analysis and document assistance = $30,748
Developing governance framework for the regulatory revenue model = $59,221
(c) The contracts were not publicly advertised. However, they were awarded consistent with Western Power's procurement policy, which is designed to ensure a competitive process and secure the best value for money. Deloitte is on Western Power's preferred vendor list. The preferred vendor list allows Western Power to make prudent contract and investment decisions in line with State Government procurement principles.
(d) This contract was priced as a fixed sum contract as opposed to a schedule of rates.
Notice: This document is created or edited using unregistered or evaluation copy of rtLib valid for testing or development purposes only. To use it for productive or any other purposes please register it. You may purchase the license on
http://www.rtlib.com
(a) Deloitte was engaged to assist with preparing Western Power's Access Arrangement submission to the Economic Regulation Authority, specifically to provide expertise on the regulatory framework and revenue model, which are legally required elements of the submission.
Deloitte's work consisted of two contracts:
1. Research, analysis and document assistance
Deloitte conducted research and analysis, comparing the regulatory framework in Western Australia with the eastern states. This enabled Western Power to ensure consistency of its Access Arrangement submission with good practice elsewhere in Australia. Deloitte also provided critical review of Western Power's access arrangement proposal.
2.
Developing governance framework for the regulatory revenue model
To accurately calculate the amount of revenue it can collect from customers during an access arrangement period, Western Power is required to produce a detailed 'revenue model'. This model captures all of the costs and revenue streams expected over the five year access arrangement period.
Deloitte was appointed as an independent expert to ensure inputs to the model are robust and that the model follows a best practice approach and can be audited.
(b) Research, analysis and document assistance = $30,748
Developing governance framework for the regulatory revenue model = $59,221
(c) The contracts were not publicly advertised. However, they were awarded consistent with Western Power's procurement policy, which is designed to ensure a competitive process and secure the best value for money. Deloitte is on Western Power's preferred vendor list. The preferred vendor list allows Western Power to make prudent contract and investment decisions in line with State Government procurement principles.
(d) This contract was priced as a fixed sum contract as opposed to a schedule of rates.
Notice: This document is created or edited using unregistered or evaluation copy of rtLib valid for testing or development purposes only. To use it for productive or any other purposes please register it. You may purchase the license on
http://www.rtlib.com
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