Competitive Tendering and Contra

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					Competitive Tendering and Contracting

Pursuant to the Financial Management and Accountability Act 1997 and the FMA Regulations, the Chief Executive Officer of the Department has given instructions to staff on the use of public money. These are known as the Chief Executive Instructions (CEI’s). Under the CEIs, when purchasing goods and services, the two key principles are ‘value for money’ and ‘open and effective competition’. During 2001-02, the Department of Health and Aged Care is undertaking a major competitive tendering and contracting exercise involving corporate service functions. Competitive Tendering and Contracting of Corporate Activities In response to the Government November 1999 decision to market-test Departmental activities ‘beginning with corporate services’ - the Department developed the Corporate Activities Review (or CAR) program. The CAR, a three-phase program of functional review and market-testing across eight broad functional areas, is well underway. Four of these functional areas are presently being reviewed, with decisions on the mixture of internal re-engineering and external market-testing expected shortly. A decision to accelerate the review of the remaining four functional areas (legal services, corporate policy and advisory services, human resource management services and financial management services) has been made, with reviews in these areas (and the subsequent decision making) expected to be finalised by August 2001. The outcome of decisions to market-test will be the release of Request for Tender documentation, tender evaluation, and decisions on outsourcing being made, having had regard for cost and risk factors. The CAR program is a component of the Department's overall response to the outcomes of the Output Pricing Review process (completed in 2000-01), and is expected to be completed in the 2002-03 financial year. Agency Activities An external review of the Australia New Zealand Food Authority information technology infrastructure and management arrangements and a risk assessment has commenced to enable consideration of the need for further outsourcing of information technology functions. During 2001-02 the Australian Radiation Protection and Nuclear Safety Agency (ARPANSA) is proposing to undergo two major competitive tendering and contracting exercises involving information technology infrastructure and financial management information systems.


Competitive Tendering and Contracting Information Technology It is anticipated that a Request for Tender for market testing of the information technology infrastructure services will be issued in July 2001. The contract is expected to be for a period of three to five years. Financial Management Information System ARPANSA is also expecting to undertake a tender process in relation to a replacement Financial Management Information System. Tenders are expected to be called for in August 2001.


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