The NBA adheres to the Commonwealth Procurement Guidelines and Best Practice Guidance when undertaking procurements. The guidelines are applied to the NBA's activities through chief executive and management instructions and key business processes.
The NBA has developed business processes to ensure that the knowledge and best practices developed within the agency for our key purchasing activities are captured and made available to new staff and that relevant procedures and processes are documented and followed.
Over recent years several internal audit programs have tested these processes to ensure that they meet government policy and better practice. The audit findings have been consistently favourable in relation to complying with mandatory processes, but have also recommended opportunities to improve processes; these have been implemented.
The key business processes will be constantly reviewed and refined as part of the NBA's own requirement for continual improvement in the management of its core business functions.
The NBA used extension provisions to several current contracts, following a value for money assessment, and completed several small open source procurements, including:
The NBA has outsourced all air travel bookings. Government policy requires the NBA to obtain the 'lowest practical fare' for domestic travel and the 'best fare of the day' for international travel for NBA employees. From 1 July 2010, the NBA has been included in Australian Government whole-of-government air travel arrangements.
The NBA did not administer any discretionary grants during 2011-12.
Two funding agreements entered into with jurisdictions, using interest monies from administered funds approved by the JBC, continued in 2011-12. Information on these is available on the NBA website, www.nba.gov.au.
The General Manager did not issue any exemptions from the required publication if any contract or standing offer in the purchasing and disposal gazette.
There were no contracts of $100,000 or more (inclusive of GST) let in 2011-12 that did not provide for the Auditor-General's access to the contractor's premises.
Section 311A of the Commonwealth Electoral Act 1918 requires particulars of all amounts greater than $10,300 paid during a financial year to advertising agencies, market research organisations, polling organisations, direct mail organisations and media advertising organisations. The NBA made no payments of this kind in 2011-12.
In 2011-12, fifteen new consultancy contracts were entered into, involving total actual expenditure of $630,277 (GST inclusive). In addition, five ongoing consultancy contracts were active during the year, involving actual expenditure of $1,393,674 (GST inclusive). Total expenditure on consultancies in 2011-12 was $2,023,951 (GST inclusive).
Annual reports contain information about actual expenditure on contracts for consultancies. Information on the value of contracts and consultancies is available on the AusTender website, www.tenders.gov.au.
The NBA engages consultants where it lacks specialist expertise or when independent research, review or assessment is required. Consultants are typically engaged to investigate or diagnose a defined issue or problem; carry out defined reviews or evaluations; or provide independent advice, information or creative solutions to assist in the NBA's decision-making.
Prior to engaging consultants, the NBA takes into account the skills and resources required for the task, the skills available internally, and the cost-effectiveness of engaging external expertise. The decision to engage a consultant is made in accordance with the Financial Management and Accountability Act 1997 and related regulations including the Commonwealth Procurement Guidelines and relevant internal policies such as chief executive and management instructions and key business processes.
Standard form contracts are used. Where necessary, these documents are adapted to suit individual circumstances.
Table 7.5 shows total expenditure on all consultancy services from 2008-09 to 2011-12, covering both new contracts let in the applicable year and ongoing contracts let in previous years.
| No. let | Total expenditure on new and existing consultancies ($) |
|
|---|---|---|
| 2011-12 | 15 | 2,023,951 |
| 2010-11 | 9 | 1,399,091 |
| 2009-10 | 3 | 492,033 |
| 2008-09 | 14 | 997,076 |