DHA Tender Oct 2010

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					                               REQUEST FOR TENDER

                                       FOR


 PROVISION OF SERVICES FOR THE AUDIT OF THE
         FINANCIAL STATEMENTS OF

                     DEFENCE HOUSING AUSTRALIA
                                AND
                        LYONS JOINT VENTURE

                                     FOR THE

            AUSTRALIAN NATIONAL AUDIT OFFICE




TENDER NO:           2010/1464

CLOSING TIME (LOCAL): 2 pm (AEST), 10 November 2010




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                    REQUEST FOR TENDER OUTLINE



Part 1               - Summary of Requirement

Part 2               - Conditions of Tender

Part 3               - Statement of Requirements

Part 4               - Draft Conditions of Contract

Part 5               - Tender Response

Part 6               - Background Information on the Client




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TABLE OF CONTENTS

PART 1 - SUMMARY OF THE REQUIREMENT

1.1       Scope of the Requirement
1.2       Background to the Requirement
1.3       Disclaimer

PART 2 - CONDITIONS OF TENDERING

2.1       Structure of the Request for Tender
2.2       Contract Authority
2.3       Inquiry by Prospective Tenderers
2.4       Place for Lodgement of Tenders
2.5       Closing Date and Time for Lodgement of Tenders
2.6       Extension of Deadline
2.7       Late Tender Policy
2.8       Packaging and Identification of Tenders
2.9       Copies of Tenders
2.10      Addenda to the Request for Tender
2.11      Requests for Additional Information by ANAO
2.12      Correction of Errors
2.13      Alterations, Erasures or Illegibility
2.14      Clarification
2.15      Supporting Material
2.16      Tender Validity Period
2.17      Proposed Contract Period
2.18      Acceptance and Proposed Contractual Arrangement
2.19      Evaluation Criteria
2.20      Evaluation Process
2.21      Tender Response
2.22      No Contract
2.23      Tenderer Profile
2.24      Insurance
2.25      Tender Interviews
2.26      Language
2.27      Public Statement by Tenderers
2.28      Freedom of Information
2.29      Tenderers to Inform Themselves
2.30      Tenderer‟s Obligations of Confidentiality
2.31      Inconsistency
2.32      Costs and Expenses
2.33      Termination of Request for Tender
2.34      Request for Tender Information Disclaimer
2.35      Applicable Law
2.36      Collusive Tendering and false and misleading claims
2.37      Conflict of Interest
2.38      Unlawful Inducements
2.39      Improper Assistance
2.40      Privacy
2.41      Equal Employment Opportunity for Women in the Workplace Act 1999
2.42      ANAO‟s Rights
2.43      Auditor-General Act
2.44      Security, financial and probity checks
2.45      Subcontractors
2.46      Expressions of price and measurement
2.47      Tenderer confidential information
2.48      Anti-terrorism measures
2.49      Fair Work Principles
2.50      Ombudsman Act 1976



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2.51      Accountability and Transparency
2.52      Compliance with laws and Commonwealth policies


PART 3 - STATEMENT OF REQUIREMENT

3.1       Introduction
3.2       Outcomes and Reporting
3.3       Background to the Requirement
3.4       Contract Authority and Project Manager
3.5       Required Standards of Performance
3.6       Conditions Applying to the Delivery of the Services
3.7       Conflict with Agreement


PART 4 - DRAFT CONDITIONS OF CONTRACT


PART 5 – TENDER RESPONSE


PART 6 - BACKGROUND INFORMATION ON THE CLIENT




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                                     PART 1




                            SUMMARY OF THE
                             REQUIREMENT




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                   PART 1 - SUMMARY OF THE REQUIREMENT
1.1       Scope of the Requirement

1.1.1     The Australian National Audit Office (ANAO) is seeking the services of organisations for
          provision of services for the audit of the financial statements of the Defence Housing
          Australia and Lyons Joint Venture.

1.1.2     A detailed statement of the services (Services) is contained in the Statement of Requirement
          (SOR) at Part 3 of this Request for Tender (RFT).

1.1.3     Tenderers are reminded of the requirements relating to auditor appointment, independence
          and rotation in Part 2M.4 of the Corporations Act 2001, where the audit is of a Corporations
          Act body.

1.2       Background to the Requirement

1.2.1     Roles and Responsibilities of the ANAO.

1.2.2     The Auditor-General and the staff of the ANAO play an important role in the process of public
          accountability by providing the Parliament, the Executive and Management with an independent
          assessment of the operations of public sector organisations. The ANAO‟s Executive and the
          majority of staff are located in Canberra.

1.2.3     The ANAO provides its principal client, the Parliament, with approximately 50 published
          operational audit reports annually. These reports cover the full range of audit services offered,
          ie performance audits, financial statement audits and information services. The ANAO also has
          a close working relationship with the Joint Committee of Public Accounts and Audit (JCPAA)
          which reviews the audit reports on a quarterly basis.

1.2.4     In addition, the ANAO provides audit services to about 260 audit client entities, including a
          number of commercially oriented entities. The majority of these clients prepare financial
          statements under either the Financial Management and Accountability Act 1997 (FMA Act) or
          the Commonwealth Authorities and Companies Act 1997 (CAC Act). The audit reports on the
          financial statements of these clients are published in the clients' annual reports, which are tabled
          in Parliament.

          Financial Statement Audits are generally undertaken under the provisions of the Auditor-
          General Act 1997 and the FMA Act or the CAC Act.

1.2.5     These audits are undertaken in accordance with the ANAO Auditing Standards set by the
          Auditor-General in accordance with section 24 of the Auditor-General Act 1997 (as amended
          from time to time).

1.2.6     The key outcome for each financial statement audit is to provide independent assurance on
          the financial statements adopted by Defence Housing Australia and Lyons Joint Venture.
          The achievement of this outcome requires the meeting of clients‟ needs (in particular
          Defence Housing Australia and Lyons Joint Venture, the Minister and Parliament) through
          the delivery of quality products (in particular, the opinion on the financial statements, the
          report to Ministers and Parliament) on time, within budget and at a contestable price.




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1.3       Disclaimer

1.3.1     The ANAO is not legally or in any other way obligated to those organisations that respond to
          this RFT. The issue of this RFT does not commit or otherwise oblige the ANAO to proceed
          with the proposed Services or functions. This RFT shall not be construed, interpreted or
          relied upon, whether expressly or implied, as an offer capable of acceptance by any person, or
          as creating any rights, liability or obligations, whether on contractual, quasi-contractual or
          restitutionary grounds. No binding contract or other understanding (including, without
          limitation, quasi-contractual rights, or rights based upon similar legal theories) will exist
          between the ANAO and a tenderer unless and until a formal written contract is signed by the
          ANAO and the successful tenderer.




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                                     PART 2




          CONDITIONS OF TENDERING




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                          PART 2 - CONDITIONS OF TENDERING
2.1       Structure of the Request for Tender

2.1.1     This Request for Tender (RFT) invites tenders for the provision of the requirement specified
          in the Statement of Requirement at Part 3, as part of an open tender. The specified
          requirements are to be provided in accordance with the terms and subject to the conditions
          contained in this RFT.

2.1.2     The RFT comprises the following documents:

          (a)        Part 1 - Summary of the Requirement;
          (b)        Part 2 - Conditions of Tendering;
          (c)        Part 3 - Statement of Requirement (SOR);
          (d)        Part 4 – Draft Conditions of Contract (Contract);
          (e)        Part 5 - Tender Response; and
          (f)        Part 6 - Background Information on the Client.

2.1.3     In this RFT, unless the context otherwise requires, reference to a Part is a reference to a Part
          of the RFT identified in clause 2.1.2.

2.2       Contract Authority

2.2.1     The Contract Authority for this RFT is:

                  Jocelyn Ashford
                  Australian National Audit Office
                  GPO Box 707
                  CANBERRA ACT 2601

2.3       Inquiry by Prospective Tenderers

2.3.1     Tenderers should direct any questions arising during the preparation of a tender response to this
          RFT to:

                  Jocelyn Ashford
                  Executive Director
                  Assurance Audit Services Group
                  Australian National Audit Office
                  Phone: 02 6203 7380
                  Fax: 02 6203 7491
                  Email jocelyn.ashford@anao.gov.au

2.3.2     If considered necessary, an interview may be arranged to discuss the inquiry and a written
          reply may be furnished to the inquirer at the discretion of the ANAO.

2.3.3     Where appropriate questions and requests from tenderers along with the ANAO's responses
          to those questions and requests will be provided to all prospective tenderers, without
          revealing the source of the original inquiry.

2.3.4     Without limitation, tenderers should expect that answers to queries that provide additional
          substantive information will be provided to all other tenderers.



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2.4       Place for Lodgement of Tenders

2.4.1     Tenders may be lodged by post or hand delivered to the specified place of lodgement at the
          address set out below:

                           Tender Box
                           RFT 2010/1464
                           Australian National Audit Office
                           19 National Circuit
                           BARTON ACT 2600

2.4.2     Tenders submitted orally or by fax or email will not be accepted.

2.5       Closing Date and Closing Time for Lodgement of Tenders

2.5.1     The deadline set for lodgement of tenders at the tender box is precisely 2.00 pm (AEST) on
          Wednesday 10 November 2010, unless extended in accordance with clause 2.6.1 (Closing
          Time). The Closing Time will be as determined by Telstra‟s recorded time service on the
          Closing Date.

2.6       Extension of Deadline

2.6.1     The Closing Date and/or Closing Time may be extended only by written notice from the
          Contract Authority. Any extension notice will be given the same distribution as the original
          RFT.

2.7       Late Tender Policy

2.7.1     Tenderers should be aware that, consistent with Commonwealth procurement policy, the
          Closing Time is a strict deadline. A tender received after the Closing Time will not be
          admitted to the evaluation process, unless the tender is late solely as a consequence of
          mishandling by the Commonwealth. Mishandling by a courier or mail service provider
          engaged by a Tenderer to deliver a tender will not constitute mishandling by the
          Commonwealth. Accordingly, it is the responsibility of the Tenderer to ensure that a tender
          is dispatched in sufficient time for it to be received by the Commonwealth by the Closing
          Time.

2.8       Packaging and Identification of Tenders

2.8.1     Tenders must be enclosed in a sealed envelope or other sealed container endorsed with the
          relevant RFT number and lodged in accordance with these Conditions.

2.9       Copies of Tenders

2.9.1     An original plus three (3) copies (one unbound) of tenders and supporting material must be
          submitted. The original should be marked as such and where there are discrepancies
          between the original and copies, the original version shall prevail.

2.9.2     The tender documents will become the property of the ANAO at the time of lodgement and
          the documents will be retained. The ANAO is not obliged to return any copies of the tender
          documents.

2.9.3     Such intellectual property rights as may exist in a tender will remain the property of the
          tenderer. The tenderer licences ANAO and the entities included in this tender, their officers,
          employees, agents and advisers to copy, adapt, modify, disclose or do anything else

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          necessary to all material (including that which contains intellectual property rights of the
          tenderer or any other person) contained in the tender for the purposes of:

          (a)     evaluating/clarifying the tender or any subsequent offer;

          (b)     negotiating any resultant contract with the tenderer;

          (c)     managing any resultant contract (if any); and

          (d)     anything else related to the above purposes, including audit and complying with
                  governmental and parliamentary reporting requirements.

2.9.4     The ANAO may make such copies of each tender, as it requires for these purposes.

2.9.5     The ANAO reserves the right, in its absolute discretion, and without the need to notify any
          tenderer, to disclose or to allow the disclosure of, at any time, any information contained in
          or relating to any tender, to any Commonwealth department, agency, authority, the Minister,
          the Parliament or any Parliamentary committee for the proper performance of their statutory
          or governmental responsibilities.

2.9.6     The intellectual property in this RFT is at all times owned by the ANAO or applicable third
          parties. It is provided to tenderers only for the purpose of preparing their tender response,
          may only be used for this purpose and should be treated as commercial information provided
          in confidence by the ANAO.

2.10      Addenda to the Request for Tender

2.10.1    The ANAO reserves the right to issue addenda to this RFT to all potential suppliers
          participating in the tender process (if known) and published in the same manner as this RFT
          at any time. Where appropriate, the ANAO will allow additional time for potential suppliers
          to address an addendum. Tenderers must submit their tenders in accordance with this RFT
          as amended by any such addenda.

2.11      Requests for Additional Information by ANAO

2.11.1    Should additional information to that contained in a tender be required by the ANAO, it will
          be requested in writing. Such additional information will not be accepted if it serves to
          materially alter the original tender.

2.12      Correction of Errors or Omissions

2.12.1    Amendments or correction of omissions to tender documents may be permitted by the
          ANAO, but only if it can be clearly shown to the satisfaction of the ANAO that the
          amendment or correction is proposed to rectify an unintentional error which is clerical or
          administrative, or an unintentional error of form.

2.13      Alterations, Erasures or Illegibility

2.13.1    Tenders which contain alterations or erasures and tenders which are illegible at the time of
          lodgement, may, at the discretion of the ANAO, be excluded from further consideration.




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2.14      Clarification

2.14.1    Where the intention of tender documents is unclear the ANAO may seek written clarification
          from the tenderer.

2.14.2    Tenderers must nominate in their tender a person to answer requests by the ANAO for
          further information or to provide clarification. The name, title, address, email address,
          telephone and facsimile numbers of that person must be set out in the tender.

2.15      Supporting Material

2.15.1    Supporting material is material additional to the tender which elaborates or clarifies the
          tender but which does not alter it in any material respect. Supporting material may be
          provided on the initiative of the tenderer or at the request of the ANAO. Supporting material
          should be dispatched on or before the Closing Time unless specifically requested by the
          ANAO after that time. The ANAO reserves the right to exclude from consideration any
          unsolicited supporting material received by the ANAO after the Closing Time.

2.15.2    Packages containing such information must be clearly labelled ‘Supplementary
          Information - RFT No 2010/1464’. The intention to submit information in this manner
          must be clearly stated in the tender.

2.15.3    Material presented as supporting material which, in the opinion of the ANAO, materially
          alters the tender, will not be considered.

2.16      Tender Validity Period

2.16.1    It is a condition of tender that the tendered offer remains valid for acceptance for a period of
          at least three (3) months from the Closing Time. The tenderer shall state any longer period
          for which its offer remains valid.

2.17      Proposed Contract Period

2.17.1    It is intended that the Contract will be for a period of 3 years with an option for renewal for a
          further 2 year period.

2.18      Acceptance and Proposed Contractual Arrangement

2.18.1    Tenderers are required to tender for the entire requirement as described in the SOR. Tenders
          for only part of the requirement will not be accepted.

2.18.2    The terms and conditions on which the ANAO intends to do business with the successful
          tenderer are set out in Part 4 (Conditions of Contract). If any tenderer wishes to propose a
          change to these terms, this must be specified in Item 12 of Section 2 of Part 5.

2.18.3    The lowest priced tender will not necessarily be accepted and no tender shall be deemed to
          have been accepted unless and until the fact of such acceptance has been notified to the
          tenderer in writing for and on behalf of the ANAO.

2.18.4    Unsuccessful Tenderers may request a statement of reasons why their tender was
          unsuccessful and an opportunity to be debriefed.




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2.19      Evaluation Criteria

2.19.1    Tenders will be assessed to identify the tendered offer that represents overall best value for
          money. For this purpose the tender evaluation process will consider the evaluation criteria
          specified in the approach to the market and requested documentation and each tenderer‟s
          relative ability to satisfy the overall project requirements while achieving a high standard of
          service at a competitive price and at an acceptable risk. Tenderers are required to provide
          access to any information ANAO considers reasonably necessary in order to evaluate the
          reasonableness of their tendered prices. This information will not be disclosed to other
          tenderers, or other persons with whom ANAO negotiates with a view to meeting ANAO‟s
          requirements.

2.19.2    In order to satisfy the general principles set out in clause 2.19.1, tenders will be assessed by
          reference to the evaluation criteria stated below. The evaluation criteria is divided into
          conditions for participation (ie mandatory criteria) and weighted criteria.

2.19.3    Tenderers will be assessed against the conditions for participation on a pass/fail basis. If a
          tender fails to meet any of the conditions for participation it will be rejected and will not be
          further assessed against the weighted criteria.

          Conditions for Participation (mandatory criteria)

          The conditions for participation are set out as follows:

          Condition 1: Identity and financial situation of tenderer

           The tenderer must be a registered company auditor (as defined in the Corporations Act) and
           must not be bankrupt or insolvent.

          Required Information: Complete Item 1.2, Section 2 of Part 5. Complete the
          Commonwealth of Australia Statutory Declaration contained in Section 5 of Part 5, executed
          by an authorised officer of the tenderer.

          Condition 2: Acceptable insurance coverage

          Required Information: Complete Item 9, Section 2 of Part 5.

          Condition 3: Compliance with equal opportunity policy

          Required Information: Complete Item 7 of Section 2 of Part 5.

          Condition 4: Compliance with Commonwealth requirements

          Required Information: Complete the Commonwealth of Australia Statutory Declaration
          contained in Section 5 of Part 5, executed by an authorised officer of the tenderer, declaring,
          amongst other things, that the tenderer and any proposed subcontractors:

                do not have any judicial decisions against it relating to employee entitlements (other than
                 decisions under appeal) that have not been met in full by the Tenderer; and

                are not currently named on the list of persons and entities designated as terrorists under
                 the Charter of United Nations (Terrorism and Dealing with Assets) Regulations 2008.

          Condition 5: Completed Compliance Statement


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          Required Information: Complete Item 12 of Section 2 of Part 5 of this RFT.

          Condition 6: Indication of confidential Contract Provisions

           Required Information: Complete Item 3 of Section 2 of Part 5 of this RFT.

          Condition 7: Provision of Fair Work Principles statutory declaration

          Required Information: Complete the Statutory Declaration substantially in the form set out in
          Section 7 of Part 5 executed by an authorised officer of the tenderer.

          Condition 8: Completed Deed of Confidentiality

          Required Information: Complete the Deed of Confidentiality in substantially the same form
          as set out at Section 6 of Part 5, executed by an authorised officer of the tenderer.

          Weighted criteria

          Weighted criteria will be weighted according to the relative percentages stated below:

          Criterion 1: The extent to which the audit methodology, approach and management
          processes proposed to be used to perform the Services meets the needs of the ANAO
          (30%)

          Minimum Required Information:

          -       an understanding of the Commonwealth Public Sector, its operating environment and
                  the Auditor-General‟s role;

          -       the measures proposed to establish and maintain an effective and professional
                  relationship with the ANAO and the audit client over the life of the Contract;

          -       an outline of the proposed audit approach, which must enable the tenderer to comply
                  with the requirements of the Contract, including, without limitation, the performance
                  standards listed in clause 2.4 of the Contract;

          -       an outline of the proposed reports to be delivered;

          -       advice as to whether or not the tenderer performs inter office reviews;

          -       the quality control policies and assurance procedures to be employed by the tenderer
                  throughout the audit assignment;

          -       the ability to provide an organisation and management structure consistent with
                  implementing and managing the Services to the required standard;

          -       the on-going availability of sufficient skilled personnel resources capable of
                  performing the Services to the required standards;

          -       details of the capacity if necessary to consult internally and/or internationally with
                  employees/affiliates in relation to technical issues relating to the operations of the
                  client or on accounting/audit matters affecting the operational aspects of the client;

          -       any other matters that the tenderer believes the ANAO should consider in assessing its
                  ability to perform the audit Services; and

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          -       complete the information security checklist set out in Attachment B to Section 2 of
                  Part 5.

           Details of the proposed audit methodology, approach and management processes should be
           provided in Item 14 of Section 2 of Part 5 to enable the ANAO to assess the tenderer against
           the above criteria.

          Criterion 2: Demonstrated qualifications and relative degree of experience of the
          tenderer's nominated professional staff in providing the Services (25%)

          Minimum Required Information:

          -       details of professional staff to be employed on the audit including:

                         number and names of partners, managers and senior auditors;

                         number of years experience;

                         citizenship and security clearance status;

                         details of relevant audit experience;

                         proposed hours of involvement across staff levels;

                         percentage of time partners and managers will devote to the tendered audit;

                         number of intermediate and junior staff, and

                         confirmation of being registered company auditors.

          Details should be summarised in Item 10 and Attachments A and B of Section 2 of Part 5.

          Criterion 3: The relative degree of client industry and audit experience possessed by the
          tenderer (25%)

          Minimum Required Information:
          A description of the tenderer‟s relevant industry audit experience including such experience of
          the senior members of the engagement team. Details should be provided in Item 14 and
          Attachment A of Section 2 of Part 5.

          Criterion 4: Price (20%)

          Minimum Required Information: Complete Section 4 (Price Schedule) of Part 5, providing the
          information required in that section.

2.20     Evaluation Process

2.20.1 The ANAO proposes to use the following evaluation methodology:
          (a)     each tender will be assessed against the conditions for participation - tenderers which
                  fail to meet all conditions for participation will be eliminated at this stage;




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          (b)     of the tenders that remain, each tenderer‟s claims will then be examined against the
                  weighted evaluation criteria - tenders which fail to meet a minimum acceptable level
                  of performance will be eliminated at this stage;

          (c)     the claims of the remaining tenders will then be examined in detail;

          (d)     tenderers may be offered an opportunity to make a presentation to address the Tender
                  Evaluation Team (TET) on the merits of their proposal. The TET may use this
                  opportunity to seek clarifications of the tenders;

          (e)     the TET may involve Defence Housing Australia and Lyons Joint Venture as part of
                  the evaluation process and the presentations referred to at clause 2.20.1(d) may
                  involve Defence Housing Australia and Lyons Joint Venture representatives; and

          (f)     taking into account all the above, the TET will rank each tender in a final order of
                  merit.
2.20.2    Where a tender does not contain a response to a question or a request for information
          contained in this RFT the tender shall be deemed, for evaluation purposes, to have not
          complied with such question or request.

2.21     Tender Response

2.21.1    Tenders should be structured as follows:
                Part 5 - Section 1       Summary of Tender
                Part 5 - Section 2       Response to Conditions of Tender and Draft contract
                         Attachment A:   Personnel
                         Attachment B:   Information Security Checklist
                Part 5 - Section 3       Compliance with Statement of Requirement
                Part 5 - Section 4       Price schedule
                Part 5 - Section 5      Commonwealth         of    Australia    Statutory    Declaration
                 (mandatory condition of participation)
                Part 5 - Section 6:      Deed of Confidentiality
                Part 5 - Section 7:       Fair Work Principles Statutory Declaration (mandatory
                 condition of participation)

2.21.2    Tenderers should provide sufficiently detailed information on any matters identified in Part
          5, Sections 1-4.

2.21.3    Information on how to respond to each part of Part 5 is set out in the introduction to that
           Part.


2.22     No contract

2.22.1    Nothing in this RFT should be construed to give rise to any contractual obligations or rights,
          express or implied, by the issue of this RFT or the submission of a tender in response to it.
          No contract will be created until a formal written Contract is executed between the
          Commonwealth and a successful tenderer, if any.

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2.22.2    In the event a court finds there to be a contract between the ANAO and a tenderer regarding
          the conduct of this RFT process, contrary to clause 2.22.1, the tenderer acknowledges that the
          ANAO‟s liability for any breach of the terms of such contract is limited to the tenderer‟s
          costs of participation in the RFT process, and does not include liability for any lost profit, lost
          opportunity or other losses of the tenderer.

2.23     Tenderer Profile

2.23.1 Tenderers are to provide sufficient information to enable the ANAO to clearly identify the
       entity with which the Contract may be entered.

2.24      Insurance

2.24.1    The successful tenderer will be required to have in place insurance arrangements appropriate
          to provision of the specified requirement, including professional indemnity insurance, public
          liability insurance and workers compensation insurance to at least at the minimum levels
          required by the Contract.

2.25     Tenderer Interviews

2.25.1 Tenderers may be interviewed by the ANAO as part of the evaluation process. The conditions
       under which the interviews would be conducted are:

          (a)     tenderers may be required to provide an oral presentation of their tender, and to
                  answer questions of clarification immediately following the presentation;

          (b)     tenderers are not to use the presentation to provide new information and
                  documentation additional to the contents of the tender that has the effect of materially
                  altering the tender;

          (c)     at the presentation, tenderers will be required to provide a copy of the written text of
                  their oral presentation, including copies of all presentation aids;

          (d)     tenderers will be required to provide, within two (2) business days, written
                  confirmation of answers given to questions put by the ANAO during the interview;

          (e)     the oral and written information and documents provided during the presentation and
                  interview will be considered by the ANAO as supporting material;

          (f)     details of the timing and location of any tenderer presentations will be provided by the
                  ANAO after the Closing Time; and

          (g)     Defence Housing Australia and Lyons Joint Venture representatives may be present
                  and participate at these interviews.

2.25.2 The ANAO is not obliged to conduct interviews or arrange for presentations with any or all
       tenderers.

2.25.3 The tenderer shall nominate a person to answer queries that may arise during the examination
       of tenders. The name, address and telephone number of that person should be included.




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2.26     Language

2.26.1 All tenders and supporting material shall be in the English language.

2.27     Public Statements by Tenderers

2.27.1 No tenderer shall furnish any information, make any statement or issue any document or other
       written or printed material concerning the acceptance of any tender in response to this RFT for
       publication in any media without the prior written approval of the ANAO. The ANAO will
       not withhold its approval to the extent the tenderer is required to disclose information by the
       rules of a stock exchange.

2.28     Freedom of Information

2.28.1 The attention of tenderers is drawn to the Freedom of Information Act 1982 (FOI Act) which
       gives members of the public rights of access to certain official documents of the
       Commonwealth Government and its agencies. The FOI Act extends as far as possible the right
       of the Australian community to access information (generally documents) in the possession of
       the Commonwealth Government limited only by exceptions and exemptions necessary for the
       protection of essential public interests and the private and business affairs of persons in
       respect of whom information is collected and held by departments and public authorities.

2.28.2 Tenderers are responsible for obtaining their own advice and assessing the application of the
       FOI Act to any information and documentation contained in their tenders.

2.28.3 While the Auditor-General is legally exempt from the FOI Act, the ANAO complies, to the
       maximum extent possible, with the intent of the Act.

2.28.4 Tenderers may indicate which information, if any, contained in their tender or supplementary
       material they consider should not be disclosed without their consent.

2.29     Tenderers to Inform Themselves

2.29.1 Tenderers shall be deemed to have:

         (a)      examined the RFT and any other information made available in writing by the ANAO
                  to tenderers for the purpose of tendering;

         (b)      examined all information necessary or convenient for the preparation of their tenders
                  including any information relevant to the risks, contingencies, and other circumstances
                  having an effect on their tender and which is obtainable by the making of reasonable
                  enquiries; and

         (c)      satisfied themselves as to the correctness and sufficiency of their tenders and that their
                  tendered prices cover the cost of complying with all the conditions of this RFT and of
                  all matters and things necessary for the due and proper performance and completion of
                  the specified requirement.

2.29.2 Should a tenderer find any discrepancy, error or omission in this RFT, the tenderer shall
       promptly notify the Contract Authority in writing on or before the Closing Time.




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2.30     Tenderer’s Obligation of Confidentiality

2.30.1 The tenderer covenants and agrees in consideration for the ANAO agreeing to consider the
       tenderer‟s tender:

         (a)      that the terms of this RFT, and all information relating to the specified requirement
                  provided to the tenderer by the ANAO (including without limitation the ANAO‟s
                  agents and servants) or obtained by the tenderer from any person:

                  i.         shall be kept strictly confidential;

                  ii.        shall not be copied or reproduced in any way;

                  iii.       shall not be disclosed or divulged to any person in any manner whatsoever;

                  iv.        shall be used to the extent necessary to enable the tenderer to submit a
                             tender pursuant to this RFT and for no other purpose;

                  v.         shall be safely and securely stored when not in use;

                  vi.        shall remain the absolute and exclusive property of the ANAO; and

                  vii.       shall be immediately returned to the ANAO upon demand by the ANAO.

         (b)      that the obligation referred to in clause 2.30.1(a) above:

                  i.         if the tenderer‟s tender is accepted by the ANAO, shall continue upon entry
                             into the Contract;

                  ii.        if the tenderer‟s tender is unsuccessful, shall continue notwithstanding entry
                             into an agreement with any third party as to the provision of the specified
                             requirement;

                  iii.       shall not apply to the extent that:

                             (a)     the prior written consent of the Contract Authority (obtained in each
                                     instance) is first obtained;

                             (b)     the information is required to be disclosed or divulged by law; or

                             (c)     the information forms or becomes part of the public domain other than
                                     due to a breach of an obligation of confidentiality.

2.31     Inconsistency

2.31.1 To the extent that there is any inconsistency between the Contract and this RFT, the provisions
       of the Contract shall prevail.

2.32     Costs and Expenses

2.32.1 A tenderer‟s participation in any stage of the tender process shall be at the tenderer‟s sole risk,
       cost and expense. In particular, all costs incurred by or on behalf of the tenderers in relation to
       this RFT, including preparing and lodging the tender and providing the ANAO with any
       further information, are wholly the responsibility of the tenderer. The ANAO accepts no


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         responsibility, liability, or obligation whatsoever for costs incurred by or on behalf of any
         tenderer in connection with any tender or any participation in the tender process.

2.32.2 Offers submitted by a government owned business, a local government, a State or
       Commonwealth agency or authority must be priced to comply with the applicable competitive
       neutrality policy of their jurisdiction.

2.33     Termination of RFT

2.33.1 The ANAO reserves to itself the right where it has determined that it is not in the public
       interest to award a Contract under this tender, to suspend, terminate or abandon this RFT at
       any time prior to the execution, by an authorised officer of the ANAO and by any successful
       tenderer, of a formal written agreement acceptable to the ANAO provided that the ANAO
       gives written notice of such a decision to each of the tenderers (if known) and publishes the
       decision in the same manner as this RFT.

2.34     RFT Information Disclaimer

2.34.1 The information contained in this RFT and the information upon which it is based has not been
       independently verified or audited.

2.34.2 The ANAO, its officers, employees, advisers and agents:

         (a) make no express or implied representation or warranty as to the currency, accuracy,
             reliability or completeness of the information contained in this RFT; and

         (b) make no express or implied representation or warranty that any estimate or forecast will
             be achieved or that any statement as to future matters will prove correct.

2.34.3 The ANAO, its officers, its employees advisers and agents:

         (a) to the extent permitted by law, expressly disclaim any and all liability arising from
             information (including with limitation, errors or omission) contained in this RFT;

         (b) (except so far as liability under any statute cannot be excluded) accept no responsibility
             arising in any way from errors in, or omissions from, this RFT, or in negligence;

         (c) do not represent that they apply any expertise on behalf of any tenderer of any interested
             party;

         (d) accept no liability for any loss or damage suffered by any person as a result of that person
             or any other person placing any reliance on the contents of the RFT or other information
             provided by or on behalf of the ANAO; and

         (e) assume no duty of disclosure or fiduciary duty to any interested party.

2.34.4 The provisions of this disclaimer apply in relation to this RFT and also in relation to any other
       oral or written communications or disclosures to a tenderer or to any other person by the
       ANAO, its officers, employees, advisers and agents.




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2.35     Applicable Law

2.35.1 The laws in the Australian Capital Territory apply to this RFT, the project and the tendering
       process. Each tender must comply with all relevant legislation.

2.36     Collusive Tendering and false and misleading claims

2.36.1 Tenderers and their officers, employees, agents and advisers must not engage in any collusive
       tendering, anti-competitive conduct or any other similar conduct with any other tenderer or
       any other person in relation to the preparation or lodgement of tenders or the RFT process. In
       addition to any other remedies available under any law or any contract, the ANAO reserves
       the right, in its sole and absolute discretion, immediately to reject any tender lodged by a
       tenderer which engaged in any collusive tendering, anti-competitive conduct or any other
       similar conduct with any other tenderer or any other person in relation to the preparation or
       lodgement of tenders.

2.36.2 If the tenderer is found to have made false or misleading claims or statements in or in relation
       to its tender then the ANAO may, in its absolute discretion, exclude the tenderer‟s tender from
       further consideration. Tenderers should note that it is a serious offence under the Criminal
       Code Act 1995 (Cth) to make false or misleading statements to the Commonwealth.

2.37     Conflict of Interest

2.37.1 Tenderers and their respective officers, employees, agents and advisers must not place
       themselves in a position which may, or does, give rise to a conflict of interest (or a potential
       conflict of interest) between the interests of the ANAO (on the one hand) or any other interests
       (on the other hand) during the tender process.

2.37.2 Tenderers should identify any existing or potential conflicts of interest and the manner in
       which they may be resolved in Item 4 of Section 2 of Part 5.

2.37.3 If any conflict of interest might arise for a tenderer before entering into a Contract, ANAO
       may, in its absolute discretion:

         (a)    enter into discussions to seek to resolve such conflict of interest; or

         (b)    disregard the tender submitted by such a tenderer; or

         (c)    take any other action, as it considers appropriate.

2.37.4 Once the Contract has been entered into, the Contractor must comply with the conflict of
       interest provisions and other independence requirements contained in the Contract.

2.37.9 While a response to accounting issues arising from financial statement audits to ensure
       compliance with accounting standards and report frameworks is appropriate, it is considered
       that provision of accounting policy advice could give rise to a commercial relationship and
       therefore may result in a conflict of interest.

2.38     Unlawful Inducements

2.38.1 Tenderers and their respective officers, employees, agents or advisers must not have violated
       any applicable laws or Commonwealth policies regarding the offering of unlawful



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         inducements in connection with the preparation or lodgment of their tender and the RFT
         process.

2.39     Improper Assistance and Lobbying Code of Conduct

2.39.1 Tenders which, in the opinion of the ANAO, have been compiled with by the improper
       assistance of employees of the ANAO or the Commonwealth, ex-employees of the ANAO or
       the Commonwealth, and/or contractors or ex-contractors of the ANAO or the Commonwealth,
       or with the utilisation of information unlawfully obtained from the ANAO or Commonwealth,
       will be excluded from further consideration. Tenderers must not seek in any way to obtain a
       special advantage from an ANAO or Commonwealth officer in connection with the
       preparation of their tenders.

2.39.2 Without limiting any other requirement under this RFT, tenderers must not engage in, or
       procure or encourage others to engage in, any activity that would result in a breach of the
       Lobbying Code of Conduct and/or the requirements of APSC Circular 2008/4 relating to the
       Lobbying Code of Conduct and post-separation contact with the Commonwealth.

2.40     Privacy

2.40.1 Tenderers are advised that it is Commonwealth policy to ensure that there is no loss of privacy
       protection when a Commonwealth body contracts for the delivery of Services. Hence, the
       preferred tenderer will need to agree in the Contract to comply with the Privacy Act 1988,
       including the Information Privacy Principles as if it were an agency for the purposes of that
       Act, although there may be no legislative requirement to do so.

2.40.2 Tenderers should note that section 95C of the Privacy Act 1988 requires parties to
       Commonwealth contracts to inform, in writing, any person who enquires whether the contract
       contains provisions that are inconsistent with the National Privacy Principles or an approved
       privacy code.

2.40.3 If the ANAO discloses any personal information to tenderers, they must also comply with the
       public-sector obligations under the Privacy Act 1988, to which the ANAO is subject, in
       relation to that information.

2.41     Equal Employment Opportunity for Women in the Workplace Act 1999

2.41.1 Tenderers attention is drawn to the obligations of certain employers under the Equal
       Opportunity for Women in the Workplace Act 1999 ("the Act"). Enquiries by prospective
       bidders for further information about the legislation should be directed to the Equal
       Opportunity for Women in the Workplace Agency on (02) 9448 8500.

2.41.2 The Commonwealth Government has directed its staff not to purchase goods or services from
       suppliers who do not comply with their obligations, if any, under the Act. It will be a term of
       the Contract with the successful tenderer that it complies with it's obligations, if any, under the
       Act.

2.41.3 A further term of the Contract will be that the contractor does not enter under a subcontract
       with a non-complying supplier.

2.41.4    If a tenderer is are currently named as non-compliant under the Act, the tenderer must submit
          a compliant report and will subsequently obtain a letter of compliance from the Director. This
          letter of compliance must either accompany any offer the tenderer makes to the


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          Commonwealth or be provided to the Commonwealth prior to the date by which offers are to
          be accepted.

2.41.5    Tenderers must state in Item 7 of Section 2 of Part 5 whether or not they are currently named
          as not complying with the Equal Employment Opportunity for Women in the Workplace Act
          1999. Where subcontractors are specified in the tender, the tenderer should note the
          subcontractors compliance or otherwise with the aforementioned Act.

2.42.    ANAO’s Rights

2.42.1 The ANAO reserves the right, in its absolute discretion, at any time:

         (a)      to alter, amend or vary this RFT and the process (including the proposed timetable)
                  outlined in these Conditions of Tendering in accordance with clause 2.10.1;

         (b)      if the ANAO considers that it is in the public interest to do so, suspend or terminate
                  this tender process at any time (including in the course of negotiations);

         (c)      to require clarification of a tender or seek additional information;

         (d)      to set priorities and broad weightings for evaluation criteria, or to vary those priorities
                  or weightings;

         (e)      to negotiate or not negotiate with one or more tenderers;

         (f)      to amend the Conditions of Contract during negotiations;

         (g)      to allow, or not to allow, the successful tenderer to enter into the proposed contract in
                  the name of a different legal entity from that which provided a response to this RFT;

         (h)      to enter into a contract outside this process, in circumstances where direct sourcing is
                  permitted by the Commonwealth Procurement Guidelines (clause 8.33); and

         (i)      to publish the name of the successful tenderer.

2.42.2 Any rights reserved in this RFT is for the sole convenience of the ANAO. The establishment
       of a right in this RFT does not create an obligation on the part of the ANAO to take any action
       or any right in any tenderer that any action be taken. The ANAO may notify affected
       tenderers if it does any of the above but shall not be obliged to provide any reasons for its
       actions.

2.42.3 In any contract negotiations, the ANAO may seek variations to an offer or may seek
       supplementary offers in respect of any changes to the originally stated requirements. The
       ANAO reserves the right to enter into any such discussions and negotiations at its absolute
       discretion (which includes dealing with any tenderer as it deems fit without the need to
       correspond with other tenderers during this period).

2.43     Auditor-General Act 1997
2.43.1 The attention of tenderers is drawn to the Auditor-General Act 1997, which provides the
       Auditor-General or an authorised person with a right to have, at all reasonable times, access to
       information, documents and records.

2.43.2 In addition to the Auditor-General's powers under the Auditor-General Act 1997, if the
       tenderer is chosen to enter into a Contract, the tenderer will be required to provide the


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         Auditor-General or an authorised person, access to information, documents, records and
         ANAO's assets, including those on the tenderer's premises. This will be required at reasonable
         times on giving reasonable notice for the purpose of carrying out the Auditor-General's
         functions and will be restricted to information and assets which are in the custody or control of
         the tenderer, its employees, agents or subcontractors, and which are related to the Contract.
         Such access will apply for the term of the Contract and for a period of ten (10) years from the
         date of expiration or termination. Additionally, the ANAO will require the contractor to give
         all the associated working papers to the ANAO at the completion of each year‟s financial
         statement audit and on the expiry or termination of the contract. Note however, that the
         contractor may keep a copy for its own records.

2.43.3 Each tenderer should obtain, and will be deemed to have obtained, its own advice on the
       impact of this legislation on its participation in the RFT process.

2.44     Security, financial and probity checks

2.44.1 The ANAO reserves the right to perform such security, probity and/or financial checks and
       procedures as the ANAO, at its absolute discretion, may determine are necessary in relation to
       the tenderer, its officers, employees, partners, associates or related entities including
       consortium members and their officers or employees. The tenderer agrees to provide, at its
       cost, all reasonable assistance to the ANAO in this regard.

2.45     Subcontractors

2.45.1 If a Tenderer proposes that any part of the requirement in this RFT is to be performed under
       subcontract, the names of the proposed subcontractors and details of the work proposed to be
       undertaken by them must be set out in Item 8 of Section 2 of Part 5.

2.45.2 This does not prevent the successful Tenderer subsequently changing its subcontracting
       arrangements, subject to the provisions of the Contract entered into by the successful
       Tenderer.

2.45.3 Tenderers should be aware that details of the successful Tenderer‟s subcontractors and their
       role may be publicly disclosed by the ANAO. Each Tenderer warrants that its proposed
       subcontractors have agreed to that disclosure.

2.46     Expressions of price and measurement

2.46.1 When providing pricing details, Tenderers should note that unless otherwise specified, prices
       tendered must:

         (a)      be expressed in Australian dollars, except for any component which the Tenderer
                  considers will involve foreign currency risk. It is Commonwealth policy not to impose
                  foreign currency risk on contractors. Accordingly, if a Tenderer considers any element
                  of their pricing will involve foreign currency risk, they should prepare an adjustment
                  mechanism for inclusion in the Contract rather than inflating their prices to cover this
                  risk;

         (b)      be inclusive of goods and services tax (GST) and any other taxes and duties, with the
                  GST and other tax and duty components separately identified;

         (c)      remain unalterable for the period of tender validity;

         (d)      not vary according to the mode of payment;

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         (e)      take into account the liability, indemnity and other relevant provisions regarding risk
                  in the Contract; and

         (f)      any measurements must be expressed in Australian legal units of measurement.

2.46.2 Tenderers must provide their proposed mechanism for price increases during the term and for
       any option.

2.46.3 The Tenderer must seek their own tax advice (including GST) in relation to this tender.

2.47     Tenderer confidential information

2.47.1 Subject to this clause, the ANAO will keep all Tenders confidential prior to the award of a
       Contract. Unsuccessful Tenders will be kept confidential after award of a Contract, subject to
       the exceptions outlined in clauses 2.47.6 to 2.47.8 below.

2.47.2 Once a Contract is awarded, the confidentiality of the successful Tenderer‟s information will
       be governed by the Contract.

2.47.3 Tenderers should identify any information that they regard as confidential in their Tenders in
       Item 3 of Section 2 of this RFT, with a view to that information being identified in the
       Contract as confidential if they are successful. Consistent with Commonwealth policy,
       information should not be classified as confidential unless there is a sound reason to maintain
       the confidentiality of the information. Tenderers should provide the reasons why the
       information is regarded as confidential.

2.47.4 Tenderers should have regard to the Commonwealth‟s “Guidance on Confidentiality in
       Procurement - July 2007”. This policy may be found at the website:
       http://www.finance.gov.au/publications/fmg-series/03-guidance-on-confidentiality-in-
       procurement.html.

2.47.5 The ANAO will make its own assessment of the confidentiality of information.

Exceptions to confidentiality

2.47.6 The obligation of confidentiality in clause 2.47.1 does not apply if the relevant information:

        (a)       is disclosed by the ANAO to its advisers or employees solely in order to consider the
                  tender responses;

        (b)       is disclosed by the ANAO to the responsible Minister;

        (c)       is disclosed by the ANAO, in response to a request by a House or a Committee of the
                  Parliament of the Commonwealth of Australia;

        (d)       is authorised or required by law to be disclosed; or

        (e)       is in the public domain otherwise than due to a breach of clause this clause 2.47.

2.47.7 Tenderers should also be aware that the Commonwealth is subject to a number of specific
       requirements, which support internal and external scrutiny of its tendering and contracting
       processes. These include:



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         (a)      the requirement to publish details of agreements, contracts and standing offers with an
                  estimated liability of $10,000 or more on AusTender;

         (b)      the requirement to report a list of contracts valued at $100,000 or more; and

         (c)      identifying confidentiality requirements in accordance with the Senate Order on
                  Department and Agency Contracts.

2.48     Anti-terrorism measures

2.48.1 The attention of Tenderers is drawn to Part 4 of the Charter of United Nations (Dealing with
       Assets) Regulations 2008. This Regulation may be found at the following website:
       http://www.dfat.gov.au/un/unsc_sanctions/index.html

2.48.2 This Regulation requires anyone who holds assets or funds belonging to a person or
       organisation designated as a terrorist to freeze immediately those assets or funds. It is an
       offence to make any assets available to a terrorist. The list of terrorists and more information
       is available at http://www.dfat.gov.au/icat/UNSC_financial_sanctions.html.

2.48.3 The ANAO will not enter into a Contract with anyone on the list referred to in 2.48.2.
       Tenderers should also note that the ANAO reserves the right to exclude any Tenderer which
       has been convicted of, or is being investigated for, a criminal offence (including under the
       Cybercrime Act 2001 (Cwlth).

2.49     Fair Work Principles

2.49.1 Tenderers should note that the Australian Government Fair Work Principles apply to this
       procurement. More information on the Fair Work Principles and their associated User Guide
       can be found at www.deewr.gov.au/fairworkprinciples.

2.49.2   In particular Tenderers should note that in accordance with the Fair Work Principles
         Commonwealth Entities will not enter into a Contract with a Tenderer who:

         (a)      fails, when required by the Commonwealth, to confirm it understands and complies
                  with all relevant workplace relations law, occupational health and safety law, or
                  workers‟ compensation law;

         (b)      is subject to an order from any Court or Tribunal decisions relating to a breach of
                  workplace relations law, occupational health and safety law, or workers‟
                  compensation law with which the Tenderer has not fully complied or is not fully
                  complying;

         (c)      has a Fair Work Act 2009 agreement that was made on or after 1 January 2010 that
                  does not include genuine dispute resolution procedures; and

         (d)      fails to provide information when requested by the ANAO relevant to their
                  compliance with the Fair Work Principles;

2.49.3 For the purposes of clause 2.49.2:

         (a)      a genuine dispute resolution procedure is one which provides each of the following
                  processes to resolve workplace disputes:

                  –         the ability for employees to appoint a representative in relation to the dispute;

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                  –         in the first instance procedures to resolve the dispute at the workplace level;
                  –         if a dispute is not resolved at the workplace level, the capacity for a party to
                            the dispute to refer the matter to an independent third party for mediation or
                            conciliation; and
                  -         if the dispute is still not resolved, the capacity for an independent third party
                            to settle the dispute via a decision binding on the parties.

         (b)      a decision or order with which the Tenderer has not fully complied or is not fully
                  complying includes any relevant penalty or order of a Court or Tribunal, but it does
                  not extend to infringement notices issued by workplace inspectors or a provisional
                  improvement notice issued by an occupational health and safety inspector, or those
                  instances where a penalty or a requirement has been imposed but the period for
                  payment/compliance has not expired.

2.49.4 To enable the ANAO to confirm the Tenderer‟s compliance with the relevant requirements of
       the Fair Work Principles the Tenderer must complete the Statutory Declaration contained in
       Section 7 to Part 5 of this RFT, in the form it is provided and include it as part of their tender
       response.

2.49.5 Clause 2.49.4 is a minimum content and format requirement for the purposes of the RFT.
       Failure to comply with these clauses will result in a tender response being excluded from
       further consideration.

2.50     Ombudsman Act 1976

2.50.1 The attention of tenderers is drawn to the Ombudsman Act 1976 which authorises the
       Ombudsman to investigate the administrative actions of Commonwealth departments and
       agencies and to investigate the actions of certain Commonwealth contractors.
2.51     Accountability and Transparency

2.51.1 Tenderers acknowledge that the ANAO is subject to the legislative and administrative
       accountability and transparency requirements of the Commonwealth, including disclosures to
       Ministers and other Government representatives, Parliament and its Committees and the
       publication of information in respect of this RFT process on the successful Tenderer and
       information on any resultant Contract in the AusTender website. Any Contract resulting from
       this RFT process will also be subject to these requirements, including contract terms (and
       related matters) which may be disclosed to Ministers, other Government representatives,
       Parliament and its Committees
2.52     Compliance with laws and Commonwealth policies

2.52.1 The successful tenderer will be required to comply, and must ensure that its personnel and
       subcontractors will comply, with any law applicable to its performance of the Contract,
       including:

        (a)      the Crimes Act 1914;

        (b)      the Racial Discrimination Act 1975;

        (c)      the Sex Discrimination Act 1984;

        (d)      the Disability Discrimination Act 1992;

        (e)      the Equal Opportunity for Women in the Workplace Act 1999;

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        (f)      the Charter of United Nations Act 1945 and the Charter of United Nations (Terrorism
                 and Dealing with Assets) Regulations 2002;

        (g)      the Trade Practices Act 1974;

        (h)      the Criminal Code Act 1995; and

        (i)      any occupational health and safety legislation applicable to the Contractor.

2.52.1 The successful tenderer will be required to comply, and must ensure that its personnel and
       subcontractors comply, with any Commonwealth policies notified by the ANAO from time to
       time, including, where applicable, the Charter of Public Service in a Culturally Diverse
       Society.




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                                     PART 3




     STATEMENT OF REQUIREMENT




                                              24
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                      PART 3 - STATEMENT OF REQUIREMENT
3.1      Introduction

3.1.1    The Services to be provided by the successful tenderer shall be the provision of audit services of
         the financial statements of Defence Housing Australia and Lyons Joint Venture for the financial
         years ending 30 June 2011, 2012 and 2013 and half year reviews ending 31 December 2010,
         2011 and 2012 for Lyons Joint Venture, with an option for a further two year period and shall
         include attest audit coverage and legal compliance as applicable.

3.1.2 In addition to the attest audit coverage the Services provided shall include reasonable services
         which a professional auditor would normally supply. These may include the provision of
         advice on the effectiveness and efficiency of internal control and accounting systems,
         reviewing investment and provisioning procedures, providing interpretation of relevant new or
         revised accounting standards, legislation, review of printer‟s proofs and annual report etc.

3.1.3    Should a tender response identify any additional services or arrangements that a tenderer may
         propose as part of its proposal, the tenderer should indicate whether it considers any aspects of
         these to be confidential in terms of disclosure in the contract.

3.2      Deliverables

         The deliverables to be provided as part of the Services include:

                an audit plan;
                a contractor‟s representation letter;
                a conflict of interest report;
                an independence declaration (if applicable);
                other material and working papers;
                a draft audit strategy;
                a draft auditor‟s report on the financial statements;
                a draft closing letter;
                an annual report review (unless otherwise notified by the ANAO);
                other draft letters required from time to time; and
                a draft Signing Officer Review Memorandum,

         as further described in Schedule 1 of the draft Contract contained in Part 4 of this RFT.

3.3      Specifications

         The specifications for the Services are set out in the draft Contract contained in Part 4.

3.4      Terms and Conditions Applying to the Delivery of the Services

         The terms and conditions on which it is proposed the Services will be supplied are set out in
         the draft Contract contained in Part 4.

3.5      Access to ANAO Auditing Policies

         The draft Contract requires the successful Tenderer to comply with the ANAO Auditing
         Policies, which are extracted from the ANAO‟s internal policy document (and represent the
         parts of the internal policies relevant for contractors). A copy of the ANAO Auditing Policies
         is available from the ANAO on request to:


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                  Julie McNamara
                  Assurance Audit Services Group
                  Telephone – (02) 6203 7554
                  Email – julie.mcnamara@anao.gov.au

         Please note you will need to complete and return the Deed of Confidentiality at Section 6 of
         Part 5 (Tender Response) to obtain a copy of the ANAO Auditing Policies.




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                                     PART 4




           CONDITIONS OF CONTRACT




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                                     PART 5




                           TENDER RESPONSE




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                              Tender Response - Overview


       Introduction         How to respond to this RFT

       Section 1            Summary of Tender

       Section 2             Response to Part 2 (Conditions of Tender) and Part 4 (Conditions
                             of Contract)

                             - Attachment A (Personnel)

                             - Attachment B (Information Security Checklist)

       Section 3            Compliance with Statement of Requirement

       Section 4            Price Schedule

       Section 5            Commonwealth of Australia Statutory Declaration

       Section 6            Deed of Confidentiality

       Section 7             Fair Work Principles Statutory Declaration




                                                                                     29
943381v1 DHA Tender Oct   2010.doc
                  Introduction: How to respond to this RFT


        1        Tenderers are required to respond to this RFT by submitting a Tender in the format
                 and including the information required by this Part 5 of the RFT. The key elements of
                 Part 5 are summarised in this introduction.

        2        In Section 1, the tenderer may set out a summary of its Tender.

        3        In Section 2, the tenderer is to provide the required information against each reference
                 to a clause of Part 2.

        4        The tenderer will be taken to agree or comply with the Conditions of Tender and
                 Contract set out in Part 2 and 4 respectively, unless the tenderer specifies in Section 2
                 each clause with which it does not agree or comply, giving reasons.

        5        In Section 3, the tenderer is required to provide information relevant to the Statement
                 of Requirement.

        6        If the tenderer states that it does not comply with a clause of this RFT, it is required to
                 give reasons.

        7        In Section 4, the tenderer is required to set out the Tender Prices and any discounts
                 offered.

        8        In Section 5, the tenderer is required to verify the particulars set out in Part 5 and
                 submit its Tender confirming that it is made on the terms and conditions of this RFT.

        9        In Section 6, the tenderer must complete the Deed of Confidentiality.

        10       In Section 7, the tender is required to complete a statutory declaration for compliance
                 with the Fair Work Principles

        11       Where space in Part 5 is not sufficient for the tenderer 's response, the tenderer may set
                 out additional information on an attachment. Provided that the tenderer identifies the
                 attachment in Part B, it will be considered to be part of the Tender.

        12       Supporting documentation such as illustrations, diagrams, brochures, pamphlets,
                 descriptive literature, manuals and handbooks lodged with a Tender are also to be
                 identified by the tenderer in Part 5.




                                                                                                 30
943381v1 DHA Tender Oct   2010.doc
                                       Section 1: Summary of Tender
        You are invited to summarise your Tender in this Section. Please highlight any
        special benefits to the ANAO or special features of your Tender.

         ................................................................................................................................................

         ................................................................................................................................................

         ................................................................................................................................................

         ................................................................................................................................................

         ................................................................................................................................................

         ................................................................................................................................................

         ................................................................................................................................................

         ................................................................................................................................................

         ................................................................................................................................................

         ................................................................................................................................................

         ................................................................................................................................................

         ................................................................................................................................................

         ................................................................................................................................................

         ................................................................................................................................................

         ................................................................................................................................................

         ................................................................................................................................................

         ................................................................................................................................................

         ................................................................................................................................................

         ................................................................................................................................................

         ................................................................................................................................................

         ................................................................................................................................................

         ................................................................................................................................................




                                                                                                                                                            31
943381v1 DHA Tender Oct        2010.doc
    Section 2: Response to Part 2, Conditions of Tender, and
                 Part 4, Conditions of Contract
Please note that you are taken to agree to or comply with each condition of Part 2 and Part 4
unless you expressly state otherwise at the end of this Section 2. Tenderers must provide
responses, however, to paragraphs 1 to 10 of this Section 2.
Please provide the information requested against each of the following listed clauses:
1        Profile of Tenderer
1.1      Please provide the following information:


         (a)               as applicable:

                  (i)                 your full name:

                                      ..............................................................................................................

                  (ii)                any trading or business name:

                                      ..............................................................................................................

                                      ..............................................................................................................

                  (iii)               if a company:

                                      the registered office:

                                      ..............................................................................................................

                                      the principal place of business:

                                      ..............................................................................................................

                                      the date and place of incorporation:

                                      ..............................................................................................................

                                      usual manner of execution of formal contracts and desired wording:

                                      ..............................................................................................................

                                      ..............................................................................................................

                                      ..............................................................................................................

                  (iv)                if an Australian company, the ACN or the ARBN:

                                      ..............................................................................................................

                  (v)                if available, the ABN:

                                      ..............................................................................................................




                                                                                                                                               32
943381v1 DHA Tender Oct   2010.doc
                       (vi)                         individual shareholders holding 20 percent or more of any issued share
                                                    capital:

                                                    ..............................................................................................................

                                                    ..............................................................................................................

                                                    ..............................................................................................................

                       (vii)                        related companies within the meaning of the Corporations Act 2001:

                                                    ..............................................................................................................

                                                    ..............................................................................................................

                                                    ..............................................................................................................

                       (viii)                      for a foreign firm or company, details of the place of business in Australia
                                                   and the name of any Australian representative:

                                                    ..............................................................................................................

                                                    ..............................................................................................................

                                                    ..............................................................................................................

         (b)                      identification of any trust or fiduciary capacity in which you propose to provide the
                                  Services:

                                  ..............................................................................................................

                                  ..............................................................................................................

         (c)                      particulars of any petition, claim, action, judgement or decision which is likely to
                                  adversely affect your capacity to provide the Services:

                                  ..............................................................................................................

                                  ..............................................................................................................


 1.2     Please provide evidence that your organisation is a registered company auditor.

2        Contact details (Part 2 - Clause 2.14.2)

        Provide the name, title, address, telephone and facsimile numbers of the person the ANAO
        may contact about this tender.

         ....................................................................................................................................................

         ....................................................................................................................................................

         ....................................................................................................................................................

         ....................................................................................................................................................



                                                                                                                                                                33
943381v1 DHA Tender Oct         2010.doc
         ....................................................................................................................................................

3        Confidentiality (Part 2 - Clauses 2.19.3 and 2.47.3)

         Tenderers are to identify any provisions of:

         (a)                      the Conditions of Contract (Part 4); and

         (b)                      any aspects of the tender response,

          that they consider should be kept confidential and the reasons why the information is considered
         confidential.

         ....................................................................................................................................................

         ....................................................................................................................................................

         ....................................................................................................................................................

         ....................................................................................................................................................

         ....................................................................................................................................................

         ....................................................................................................................................................

4        Conflict of Interest (Part 2 - Clause 2.37.2)

         Tenderers are requested to detail any potential conflicts of interest and the manner in which they may be
         resolved:

                                                    ..............................................................................................................

                                                    ..............................................................................................................

                                                    ..............................................................................................................

                                                    ..............................................................................................................

                                                    ..............................................................................................................




5        Freedom of information (Part 2 - Clause 2.28.4)

         Tenderers are to indicate any information contained in their tender they consider should not be disclosed
         without their consent.

         .....................................................................................................................................................

         .....................................................................................................................................................

         .....................................................................................................................................................

         ................................................................................................

         .....................................................................................................................................................

                                                                                                                                                                34
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6        Privacy (Part 2 - Clause 2.40)

         Tenderers are to detail how they intend to meet their privacy obligations under the Privacy Act 1988.

         .....................................................................................................................................................

         .................................................................................................................................... .................

         .....................................................................................................................................................

         .....................................................................................................................................................

         .....................................................................................................................................................

7        Affirmative Action (Part 2 - Clause 2.19.3 and 2.41.5)

        Is the Tenderer or any proposed subcontractor currently named as having failed to comply with the
        Equal Employment Opportunity for Women in the Workplace Act 1999?

         Tenderer:                                                YES/NO

         Proposed subcontractors:                                 YES/NO



8        Subcontracts (Part 2 - Clause 2.45)

         Provide details of proposed subcontracts:

         .....................................................................................................................................................

         .....................................................................................................................................................

         .....................................................................................................................................................

         .....................................................................................................................................................

         .....................................................................................................................................................

         .....................................................................................................................................................

9        Insurance (Part 2 - Clause 2.19.3)
        Provide confirmation by way of a certificate of currency provided by the tenderer's insurer that the tenderer
        holds professional indemnity insurance, public liability insurance and workers compensation insurance to at
        least the minimum level required by the Conditions of Contract.

         .....................................................................................................................................................

         .....................................................................................................................................................

         .....................................................................................................................................................

         .....................................................................................................................................................

         .....................................................................................................................................................

         .....................................................................................................................................................

                                                                                                                                                             35
943381v1 DHA Tender Oct        2010.doc
        Tenderers should:
              (i) indicate whether each insurance policy is a “claims occurring” or “claims made” policy;
              (ii) indicate the amount of deductible (excess) for each policy;
              (iii) confirm the tenderer‟s agreement to keep the policies in force for the minimum period specified
              in Part D of the Details in the Draft Contract; and
              (iv) detail any writs issued or lawsuits pending against the tenderer.

         .....................................................................................................................................................

         .....................................................................................................................................................

         .....................................................................................................................................................

         .....................................................................................................................................................

         .....................................................................................................................................................

         .....................................................................................................................................................


10       Specified Personnel (Part 2 - Clause 2.19.3)

         List the names and positions of the Specified Personnel nominated to provide the Services:

         .....................................................................................................................................................

         .....................................................................................................................................................

         .....................................................................................................................................................

         .....................................................................................................................................................

         ........................................................................................................................................... ..........

         Please also complete Attachment A to this Section 2 in respect of each member of the team working on
         the audit.



11       IT Security (Part 2 - Clause 2.19.3)

         Please complete the information security checklist contained in Attachment B to this Section 2.



12       Compliance Statement (Part 2 - Clause 2.19.3)

        Tenderers are to indicate their level of compliance with the Conditions of Contract at Part 4 of the RFT by
        completing a compliance statement in the form set out below and submitting it with their tender.



 Clause Number                        Complies, Partially Complies, Does Not                                    Reasons for non-compliance/partial
                                      Comply, Understand and Agree                                              compliance and proposed
                                                                                                                alternative drafting

 …………………...…                          ………………………..………………….                                                       …………….…………………..……

                                                                                                                                                             36
943381v1 DHA Tender Oct        2010.doc
 …………………...…                          ………………………..………………….                                                       …………….…………………..……

 …………………...…                          ………………………..………………….                                                       …………….…………………..……

        To complete the compliance statement, tenderers must identify the relevant provision of the Conditions of
        Contract in column one and indicate its degree of non-compliance in column two by stating either:

              (a)                  "complies", which means:

                                   (i)                 where a condition is imposed, that condition is agreed to;

                                   (ii)                where a clause specifies a characteristic or performance requirement, that
                                                       your Tender is to provide the requirement as specified;

              (b)                  "partially complies”, which means the condition or characteristic or performance
                                   requirement can be met by your Tender, subject to certain qualifications, which are
                                   stated in full;

              (c)                  "does not comply", which means that the complete condition or characteristic or
                                   performance requirement of the condition or requirement is not met by your Tender;

              (d)                  "understand and agree", which means in the case of a clause giving information only,
                                   that the condition has been read and understood.

              Non-committal terms such as "Noted" are not to be used.

        In column three, the tenderer should clearly specify the reasons for the non-compliance and proposed
        desired amendments to the relevant provisions.


13       Proposed audit methodology, approach and management
         processes (Part 2 - Clause 2.19.3)
        Please provide details of the tenderer‟s proposed audit methodology, approach and management
        processes

         ................................................................................................................................................ .....

         .....................................................................................................................................................

         .....................................................................................................................................................

         .....................................................................................................................................................

         .....................................................................................................................................................



14       Tenderer’s relevant industry audit experience (Part 2 - Clause
         2.19.3)
        Please provide details of the tenderer‟s relevant industry audit experience.

         .....................................................................................................................................................

         .....................................................................................................................................................

         .....................................................................................................................................................

                                                                                                                                                             37
943381v1 DHA Tender Oct        2010.doc
                      Section 2 - Attachment A (Personnel)

NAME OF CLIENT:

Name of auditor:


Role:


(To be completed for each member of the team working on the audit)


Qualifications and level of
Security Clearance:




Relevant audit experience:




Relevant client industry and
general experience:




                                                                     38
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  Section 2 - Attachment B (Information Security Checklist)

1. Introduction

The ANAO is a specialist public sector audit practice providing a full range of audit services to the
Parliament and Commonwealth public sector entities.

The ANAO‟s audit clients include some 300 Commonwealth government bodies. In the process of
performing the audit role the ANAO and its contractors collect a range of data and information
concerning government and commercial operations. The ANAO and its contractors have a legal and
professional responsibility for securely handling and managing this data and information as the
reputation and position of trust held by the ANAO and its contractors are, in part, dependent on the
ability to protect the information provided by clients.

Under clause 2.19.3 of the Request for Tender, the ANAO is therefore seeking additional information
from all tenderers in respect of their Security and Quality Assurance and Control Arrangements as
they relate to weighted Criterion 1 (the methodology proposed to be used to complete the audit
including the use of electronic data processing facilities).

The ANAO‟s activities comply, where relevant, with the requirements of the Commonwealth
Protective Security Manual (PSM), the Australian Communications Electronic Security Instructions
33 (ACSI-33) and relevant Australian standards. The compliance framework for the ANAO‟s IT
security is the Information Security Management ISO/IEC 17799:2001 against which the ANAO
undertakes regular Threat Risk Assessments (TRAs).

To assist the ANAO‟s assessment of tenderers‟ bids under weighted Criterion 1 the following
checklist should be completed to identify the tenderer‟s position with respect to their security control
arrangements. It should be noted that if any areas of compliance are unable to be met, this will not
necessarily result in exclusion from the Tender. It may require the ANAO to conduct a risk assessment
and suggest areas for mitigation.


2. Additional Information: Security, Quality Assurance and Control
    Arrangements

Tenderers must complete the checklist by circling the applicable indicator: “Yes” or “No” to each
question. If any response is “No”, please provide comment at the end of the section on how the risk(s)
will be addressed.

    1. Information Security Organisation

     Tenderer has an information security policy.                                                                                                      Y/N

     The information security policy clearly defines who is responsible for security                                                                   Y/N
     issues.

     Comments (if applicable).

         .....................................................................................................................................................

         ................................................................................................................................ .....................


                                                                                                                                                             39
943381v1 DHA Tender Oct        2010.doc
         .....................................................................................................................................................

         .....................................................................................................................................................

         .....................................................................................................................................................

         .....................................................................................................................................................

    2. Asset Classification and Control

     Tenderer applies the Commonwealth‟s security classification system when                                                                           Y/N
     dealing with classified material.

     Tenderer has a procedure to ensure all its staff who will work on this audit                                                                      Y/N
     understand the Commonwealth‟s security classification system.

     Tenderer uses labels according to the highest classification applied to                                                                           Y/N
     documents and data obtained and developed during this audit.

     Comments (if applicable).

         .....................................................................................................................................................

         .....................................................................................................................................................

         .....................................................................................................................................................

         .....................................................................................................................................................

         .....................................................................................................................................................

         .....................................................................................................................................................

    3. Personnel Security

     Tenderer has a security clearance process, that includes background checking,                                                                     Y/N
     applying to all its staff who will work on this audit.

     Tenderer conducts security awareness training for its staff.                                                                                      Y/N

     Tenderer has a formal disciplinary procedure to deal with its staff who commit                                                                    Y/N
     serious or persistent breaches of security.

     Tenderer has an incident detection and response policy or plan.                                                                                   Y/N

     Comments (if applicable).

         ....................................................................................................................................... ..............

         .....................................................................................................................................................

         .....................................................................................................................................................

         .....................................................................................................................................................

         .....................................................................................................................................................


                                                                                                                                                             40
943381v1 DHA Tender Oct        2010.doc
         .....................................................................................................................................................

    4. Physical security

     Tenderer has a secure area for the processing and handling of classified material.                                                                Y/N

     Tenderer uses physical and logical repositories that are at least „intruder resistant‟ Y/N
     to store classified material.

     Tenderer has security procedures to protect all equipment and media that contains Y/N
     audit information when it is off-premises.

     Comments (if applicable).

         ................................................................................................................................ .....................

         .....................................................................................................................................................

         .....................................................................................................................................................

         .....................................................................................................................................................

         .....................................................................................................................................................

         .................................................................................................................................................. ...

    5. Cryptography

     Tenderer uses encryption to protect classified material held on portable                                                                          Y/N
     computers.

     Tenderer uses encrypted USB drives for the transfer of classified material                                                                        Y/N
     between computers.

     Comments (if applicable).

         .....................................................................................................................................................

         ................................................................................................................................ .....................

         .....................................................................................................................................................

         .....................................................................................................................................................

         .....................................................................................................................................................

         .....................................................................................................................................................

    6. Remote Access

     Tenderer has a policy that prohibits the use of home computers for processing                                                                        Y/N
     and/or storing of audit material to be obtained or developed under this Contract.

     Tenderer has a policy that prohibits the transmission of classified material over                                                                    Y/N
     unprotected networks.



                                                                                                                                                             41
943381v1 DHA Tender Oct        2010.doc
     Comments (if applicable).

         .....................................................................................................................................................

         .....................................................................................................................................................

         .....................................................................................................................................................

         .................................................................................................................................................. ...

         .....................................................................................................................................................

         .....................................................................................................................................................

    7. Access to Systems

     Tenderer has policies and procedures governing access to its systems.                                                                             Y/N

     Firewall(s) are in place to protect audit material to be obtained and/or                                                                          Y/N
     developed under this Contract.

     Tenderer prohibits the use of unauthorised software on its systems.                                                                               Y/N

     Tenderer will NOT use wireless technology to transmit or receive audit material                                                                   Y/N
     obtained or developed as part of this audit.

     Comments (if applicable).

         .....................................................................................................................................................

         ........................................................................................................................................ .............

         .....................................................................................................................................................

         .....................................................................................................................................................

         .....................................................................................................................................................

    8. Business Continuity Management

     Tenderer maintains threat and risk assessments to identify events that can cause                                                                  Y/N
     interruptions to business processes.

     Tenderer has a business continuity management plan.                                                                                               Y/N

     Comments (if applicable).

         .....................................................................................................................................................

         .....................................................................................................................................................

         .....................................................................................................................................................

         ............................................................................................................................... ......................

         .....................................................................................................................................................


                                                                                                                                                             42
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     Section 3: Compliance with Statement of Requirement

     Tenderers are to provide their Tender responses against the evaluation criteria in the following
     format:

     Conditions for Participation

     In order to participate in the procurement, tenderers must demonstrate compliance with each of
     the following conditions for participation (including providing the required information
     specified), failing which a tenderer will be excluded from further consideration in the assessment
     process.


     1             Identity and financial situation of   Required information: n/a
                   tenderer
     2             Acceptable insurance coverage         Required information:      Complete Item 9,
                                                         Section 2 of Part 5.
     3             Compliance with equal                 Required information: Complete Item 7 of
                   opportunity policy                    Section 2 of Part 5 of this RFT
     4             Compliance with Commonwealth          Required information: Complete the
                   requirements                          Commonwealth of Australia Statutory
                                                         Declaration contained in Section 5 of Part 5
                                                         of this RFT, executed by an authorised
                                                         officer of the tenderer,.
     5             Completed Compliance Statement        Required information: Complete Item 12 of
                                                         Section 2 of Part 5 of this RFT.
     6             Indication of confidential Contract   Required information: Complete Item 3 of
                   Provisions                            Section 2 of Part 5 of this RFT.
     7             Provision of Fair Work Principles     Required information: Complete the
                   statutory declaration                 Statutory Declaration substantially in the
                                                         form set out in Section 7 of Part 5 of this
                                                         RFT executed by an authorised officer of the
                                                         tenderer.
     8             Completed Deed of Confidentiality     Required information: Complete the Deed
                                                         of Confidentiality in substantially the same
                                                         form as set out at Section 6 of Part 5 of this
                                                         RFT, executed by an authorised officer of
                                                         the tenderer.


     Weighted criteria

     The Commonwealth intends to assess Tenders which satisfy the conditions for participation
     against the following weighted criteria. Weighted criteria will be weighted according to the
     relative percentages stated below:




                                                                                             43
943381v1 DHA Tender Oct   2010.doc
 Criterion 1       The extent to which the audit          Minimum Required Information: Provide
                   methodology, approach and              details of the proposed audit methodology,
                   management processes proposed          approach and management processes should
                   to be used to perform the Services     be provided in Item 14 of Section 2 of Part 5
                   meets the needs of the ANAO            to enable the ANAO to assess the tenderer
                   (30%)                                  against the criteria set out at clause 2.19.3 of
                                                          Part 2.

 Criterion 2       Demonstrated qualifications and        Minimum Required Information: Provide
                   relative degree of experience of the   details of qualifications and experience
                   tenderer's nominated professional      referred to in clause 2.19.3 of Part 2 in Item
                   staff in providing the Services        10 and Attachments A and B of Section 2 of
                   (25%)                                  Part 5.
 Criterion 3       The relative degree of client          Minimum Required Information: Provide a
                   industry and audit experience          description of the tenderer‟s relevant
                   possessed by the tenderer (25%)        industry audit experience including such
                                                          experience of the senior members of the
                                                          engagement team in Item 14 and Attachment
                                                          A of Section 2 of Part 5.




 Criterion 4       Price (20%)                            Minimum Required Information: Complete
                                                          Section 4 (Price Schedule) of Part 5 of this
                                                          RFT in accordance with that section.




                                                                                               44
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                                              Section 4: Price Schedule
1        Tenderers are to provide details of their proposed pricing in the format required.

2        Tenderers should provide information on any other matters which they believe may be
         relevant in evaluating the level and types of fees, and consequently the contribution of the
         proposed fees to overall value for money.

3        All rates should be inclusive of all taxes, duties and charges, including GST, and should be in
         accordance with the provisions set out in clause 2.46 of Part 2.

4        Tendered prices shall include all charges necessary and incidental to the proper delivery of the
         specified requirement, less any discounts. Quoted rates should be exclusive of travel and
         accommodation, but inclusive of all other costs. Travel and accommodation costs should be
         clearly shown as “out of pocket expenses”.

5        Where variable prices are tendered and for the purpose of comparative evaluation of tenders,
         account will be taken of changes in the price tendered which are likely to accrue over the
         expected period of the Contract as a result of the tendered price variation provisions.

6        Tenderers must provide pricing comprising the hourly and daily rates for each level of
         seniority of professionals and support staff which will apply to all matters in these service
         areas and the estimated hours to complete the task.

7        Tenderers must also provide a fixed fee for the engagement.

8        While the ANAO is seeking a break down of costs from tenderers (for the purposes of
         assessing Tenders), the all inclusive tender price is a fixed fee which will include all
         incidentals and costs associated with the performance all of the Services (irrespective of the
         number of hours actually taken by the tenderer to perform the Services).

9        Each tenderer may set out any alternative proposals for financial incentives to be offered by it,
         including any discounts offered on the fees below.

10       Please provide your proposed mechanism for price increases during the term and for any option,
         in accordance with clause 2.46.2 of Part 2:

         .....................................................................................................................................................

         .....................................................................................................................................................

         .....................................................................................................................................................

         .....................................................................................................................................................

         .....................................................................................................................................................

         .....................................................................................................................................................




                                                                                                                                                             45
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11       Please complete the following table for all personnel involved in any or all parts of delivering
         the Services, (e.g. Senior partner, Partner, Senior, Junior, Administrative Support), and their
         relevant hourly/daily rates.

Hourly and Daily Rates for Provision of the Consultancy Services


NAME OF CLIENT:

                                                  Year 1              Year 2             Year 3
                                             for year ending     for year ending     For year ending
                                              30 June 2011        30 June 2012        30 June 2013
Hours to be delivered by:
- Audit Partner
- Audit Manager
- Audit Senior
- Auditors
- Specialist staff (eg IT)


Total hours to be delivered each year:



Hourly rate by:
- Audit Partner
- Audit Manager
- Audit Senior
- Auditors
- Specialist staff



Total staff costs


Any out of pocket expenses Yes/No:
If yes, please provide details:




Any other costs - Yes/No:
If yes, please provide details:




Total cost of audit for each year:




                                                                                              46
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              Section 5: Commonwealth of Australia Statutory
                              Declaration
I, (1) ......................................................................................................................... [Name]


of...................................................................................................................... [Address]


a director/partner of ........................................................(ACN.....................) (ABN.............) (the
"Tenderer").


do solemnly and sincerely declare as follows:-

1.          I am authorised by the Tenderer to make this declaration:

2.          The Tenderer offers to supply the certain audit services at the prices tendered and on the
            conditions set out in the Request for Tender dated 21 October 2010 (the "RFT"). This offer
            remains open for acceptance until…../…../2010 [insert date].

3.          The tender to which this statutory declaration is appended (the "Tender") has not been
            prepared with the benefit of:

            (a)         information obtained from a current or former officer or employee of the Australian
                        National Audit Office (ANAO) or Defence Housing Australia and Lyons Joint
                        Venture in circumstances that constitute a breach of confidentiality or fidelity on the
                        part of that person or a breach of legislation; or

            (b)         information otherwise improperly obtained from ANAO or Defence Housing
                        Australia and Lyons Joint Venture.

4.          The Tenderer through its officers, employees or agents, has not attempted and shall not
            attempt, to influence improperly any officer or employee of ANAO or Defence Housing
            Australia and Lyons Joint Venture in connection with the assessment of tenders and has not
            approached any Minister or Commonwealth officer in connection with the RFT process other
            than as permitted in the RFT.

5.          The Tenderer has not:

            (a)         made any false or misleading claims or statements in relation to its Tender or the RFT
                        process;

            (b)         engaged in collusive tendering, anti-competitive conduct, or any other unlawful or
                        unethical conduct with any other Tenderer, or any other person in connection with the
                        preparation of their Tender or the RFT process;

            (c)         violated any applicable laws or Commonwealth policies regarding the offering of
                        inducements in connection with the RFT process; or

            (d)         otherwise acted in an unethical or improper manner or contrary to law in relation to its
                        Tender or the RFT process.


                                                                                                                                          47
943381v1 DHA Tender Oct        2010.doc
6.       The Tenderer acknowledges and agrees to all RFT conditions including without limitation,
         obligations and acknowledgments included in the RFT documents.

7.       The Tenderer hereby authorises the ANAO and its officers, employees, agents or advisers to:

         (a)      undertake confidential reference, probity, financial and credit checks;

         (b)      seek any additional financial information required for the purpose of establishing the
                  financial viability of the Tenderer; and

         (c)      agree to provide, at no cost to ANAO, reasonable assistance to ANAO to assist it in
                  any checking it wishes to have undertaken under the RFT or otherwise.

8.       The Tenderer warrants that, at the time of submitting its Tender, the Tenderer (and each of its
         proposed subcontractors:

         (a)     does not have any judicial decisions against it, relating to employee entitlements, that
                 has not been paid in full by the Tenderer or the subcontractor (as applicable) (other
                 than judicial decisions that are under appeal);

         (b)     is not named as not complying with the Equal Opportunity for Women in the
                 Workplace Act 1999;

         (c)     is not named on the list of persons and entities designated as terrorists under the
                 Charter of United Nations (Terrorism and Dealing with Assets) Regulations 2008; and

         (d)     is not bankrupt or insolvent (as defined in the Corporations Act).

9.       The Tenderer warrants that, at the time of submitting its Tender, having made all reasonable
         enquiries, other than conflicts notified to the ANAO, no conflict of interest exists, or is likely
         to arise, which would affect the performance of its obligations, if the Tenderer were to enter
         into the draft Contract. The Tenderer undertakes to advise the ANAO immediately upon
         becoming aware of any actual or potential conflicts of interest in respect of the RFT, its
         Tender or the provision of the Services.

10.      The Contractor warrants that, other than as set out below, there are no:

         (a)      matters relating to the commercial, financial or legal capacity or status of the
                  Contractor which has or may adversely affect the ability of the Contractor to perform
                  its obligations under the draft Contract;

         (b)      litigation, proceedings, judicial or administrative enquiry, investigation, claim or
                  allegation, current, actual or threatened involving, or likely to involve, the Contractor
                  which has or may adversely affect the Contractor‟s reputation or its ability to perform
                  its obligations under the draft Contract;

         (c)      proven, admitted or alleged breach, default or non-compliance under any law,
                  regulation, agreement, order or award binding on the Contractor, which has or may
                  adversely affect the Contractor‟s reputation or its ability to perform its obligations
                  under the draft Contract; or

         (d)      criminal or other act, omission, behaviour, conduct or activity of the Contractor which
                  may materially and adversely affect the Contractor‟s creditworthiness, integrity,
                  character or reputation.



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11.      No express or implied contract has arisen between the Tenderer and the ANAO in relation to
         the RFT or the Tender.

AND I make this solemn declaration by virtue of the Statutory Declaration Act 1959 and subject to the
penalties provided by that Act for the making of false statements in statutory declarations,
conscientiously believing the statements contained in this declaration to be true in every particular.

(2)

Declared at:

The            day of                              [     ]

Before me (3)

(4)




Notes
(1)     Here insert name, address and occupation of person making the declaration and his or her
position in the subcontractor company.

(2)      Signature of person making declaration.

(3)      Signature of person before whom the declaration is made.

(4)       Here insert the title of person before whom the declaration is made.




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                                Section 6 - Deed Of Confidentiality
[Note to Tenderers: Tenderers will need to enter into this deed to obtain a copy of the ANAO
Auditing Policies. It also protects ANAO or Client information that is released to tenderers on a
confidential basis (if any).]


THIS DEED OF CONFIDENTIALITY made                                                                                [insert date]

PARTIES

COMMONWEALTH OF AUSTRALIA represented by the Australian National Audit Office (ANAO)

AND

.................................................................................................................... (the “Recipient”)

RECITALS

A.        The ANAO is conducting a Request for Tender process for the provision of specified audit
          services (Services).

B.        The Recipient may be granted access to Commonwealth Confidential Information through
          information disseminated at industry briefing sessions and by other means in connection with
          the RFT.

C.        The ANAO discloses Commonwealth Confidential Information to the Recipient on the
          condition that the Recipient keeps all such Confidential Information strictly confidential.

OPERATIVE PROVISIONS

1.          Interpretation

           In this Deed, unless the contrary intention appears:

           Client means the Commonwealth entities the subject of the Services.

           Commonwealth Confidential Information means the ANAO auditing policies, any Client
           information, and any information relating to the ANAO or any other Commonwealth agency
           obtained from any source that:

           a.            is by its nature confidential;

           b.            is designated by the ANAO as confidential; or

           c.            the Recipient knows or ought to know is confidential,

           and includes to the extent it is confidential:

           d.            information comprised in or relating to any Intellectual Property of the ANAO or
                         third parties; and



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          e.       information relating to the internal management and structure of the ANAO or any
                   other Commonwealth agency;

         but does not include information which:

          g.       is or becomes public knowledge other than by breach of this Deed or other obligation
                   of confidence; or

          h.       the Recipient can establish has been independently developed or acquired by it
                   without breach of any obligation of confidence.

          Contract means the proposed contract between the ANAO and a successful tenderer in
          respect of the provision of audit services the subject of the RFT.

          Deed means this deed of confidentiality.

          Document includes:

          a.       any paper or other material on which there is writing;

          b.       any paper or other material on which there are marks, figures, symbols or
                   perforations having a meaning to persons qualified to interpret them; and

          c.       any article, material or media from which sounds, images or writings are capable of
                   being reproduced with or without the aid of any other article or device.

          Intellectual Property means copyright, and all rights in relation to inventions, registered and
          unregistered trademarks (including service marks), registered and unregistered designs, and
          circuit layouts, and any other rights resulting from intellectual activity in the industrial,
          scientific, literary or artistic fields.

          Parties means the ANAO and the Recipient.

          Request for Tender or RFT means the Request for Tender in relation to the provision of
          services for the audit of the financial statements of Defence Housing Australia and Lyons
          Joint Venture for the ANAO, having the Tender No. reference: 2010/1464.

          Tender means any response or tender lodged in connection with the RFT.

2.       Commonwealth Confidential Information

2.1      In consideration of the ANAO disclosing certain Commonwealth Confidential Information to
         the Recipient, the Recipient acknowledges and agrees with the ANAO:

         a.      that all the Commonwealth Confidential Information is secret and confidential, is the
                 property of the ANAO, and is of value to it, and that any Commonwealth Confidential
                 Information disclosed to the Recipient is disclosed to the Recipient only pursuant to
                 the terms of this Deed;

         b.      to keep the Commonwealth Confidential Information secret and confidential at all
                 times;

         c.      that it must not, other than with the prior written approval of the ANAO use, disclose,
                 divulge or deal with any Commonwealth Confidential Information, nor allow any act,
                 matter or thing to be done or occur whereby any Commonwealth Confidential

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                 Information may be ascertained or used by, or disclosed or communicated to, any
                 other person, except in accordance with the terms of this Deed; and

         d.      that it must observe and be bound by the provisions of this Deed.

3.       Restriction On Use

3.1      The Recipient agrees to use the Commonwealth Confidential Information only for the purpose
         of:

         a.      preparing a Tender; or

         b.      negotiating a Contract with the ANAO in connection with the RFT process.

3.2      The Recipient must:

         a.      take all reasonable steps and do all reasonable things necessary, and do all things that
                 may be reasonably required by the ANAO to keep the Commonwealth Confidential
                 Information, and all Documents, and all other things recording, containing, setting out
                 or referring to any Commonwealth Confidential Information, under effective control
                 of the Recipient;

         b.      immediately notify the ANAO in the event that the Recipient becomes aware of any
                 unauthorised access to, or use or disclosure of, any Commonwealth Confidential
                 Information;

         c.      not use, copy or reproduce any Document or any other thing, nor allow any other
                 person to use or reproduce any such thing, recording, containing, setting out or
                 referring to any Commonwealth Confidential Information otherwise than for the
                 purposes specified in clause 3.1;

         d.      take all reasonable steps to ensure that the Commonwealth Confidential Information
                 and all Documents and all other things recording, containing, setting out or referring to
                 the Commonwealth Confidential Information are protected at all times from any
                 unauthorised use or access;

         e.      subject to clause 3.3, if required at any time by the ANAO to do so, deliver up to the
                 ANAO, or at the option of the ANAO destroy, all Commonwealth Confidential
                 Information in all forms and media, including without limitation all Documents
                 containing, setting out or referring to any Commonwealth Confidential Information in
                 the possession, custody or control of the Recipient; and

         f.      if required by the ANAO:

                 i.         permit the ANAO or a nominee or nominees of the ANAO reasonable access
                            to the premises of the Recipient to ensure or check compliance with this Deed;
                            and/or

                 ii.        provide to the ANAO a statutory declaration of an officer of the Recipient
                            stating that clause 3.2.e has been complied with.

3.3      The Recipient may retain a copy of any Commonwealth Confidential Information if, and only
         to the extent to which, the Recipient is required by law to do so.



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4.       Disclosure as Required by Law

4.1      The Recipient may disclose any Commonwealth Confidential Information which the Recipient
         is required to disclose by law, but only if:

         a.      the extent and manner of the disclosure is strictly limited to what is required by law;
                 and

         b.      the Recipient has:

                 i.         given the ANAO sufficient notice to enable the ANAO to seek a protective
                            order or other relief from disclosure; and

                 ii.        provided all assistance and co-operation which the ANAO reasonably
                            considers necessary for that purpose.

5.       Commencement

5.1      This Deed shall be taken to have commenced on the date on which the Recipient first received
         Commonwealth Confidential Information, whether or not that date was before the date of the
         execution of this Deed.

6.       Indemnity

6.1      The Recipient indemnifies the ANAO, its officers, employees, agents and advisers against any
         claim, loss, liability, damage or expense (including legal expenses on a solicitor and own
         client basis) incurred by them and which is caused or contributed to by the Recipient‟s failure
         to comply with this Deed.

7.       Applicable Law

7.1      This Deed will be governed by and construed in accordance with the laws of the Australian
         Capital Territory.

8.       Notices

8.1      A notice served on a Party under this Deed will be deemed to have been served if it is in
         writing, signed by the other Party, is either delivered by hand, posted or sent by facsimile or
         email to the Recipient at the address set out in this Deed or such other address as may be
         notified in writing to the ANAO from time to time.

8.2      A notice sent by post will be deemed to have been given at the time when, in due course of
         transmission, it would have been delivered to the address to which it is sent in accordance with
         this Deed.

8.3      A notice sent by facsimile or email transmission will be deemed to have been given when the
         machine on which the notice is sent reports in writing that the notice has been transmitted
         satisfactorily.

9.       No Exclusion

9.1      This Deed does not exclude the operation of any principle of law or equity intended to protect
         and preserve the confidentiality of the Commonwealth Confidential Information.



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9.2         The rights and remedies provided under this Deed are cumulative and not exclusive of any
            rights or remedies provided by law.

10.          Waiver

10.1        Failure by the ANAO to enforce a provision of the Deed will not be construed as in any way
            affecting the enforceability of that provision or of the Deed as a whole.

11.          Term

11.1        The obligations in this Deed expire when all of the Commonwealth Confidential Information
            is in or becomes part of the public domain, otherwise than through breach of this Deed or an
            obligation of confidence owed to the ANAO, and shall survive the termination or expiry of the
            RFT process.

12.          Governing Law

12.1         This Deed is governed by the law in force in the Australian Capital Territory.


EXECUTED as a deed.

SIGNED, SEALED AND DELIVERED for                                    )
and on behalf of the ANAO                                           )   ...................................................................


.................................................................
Witness

Name (printed):

SIGNED, SEALED AND DELIVERED by                                     )
the Recipient in the presence of:                                   )   ...................................................................


.................................................................
Witness

Name (printed):




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     Section 7 - Statutory Declaration for compliance with the
                        Fair Work Principles

THIS STATUTORY DECLARATION is made on the______day of __________________
20_________

Name of Tenderer, ABN and ACN:
______________________________________________________
__________________________________________________________________________________
(the Tenderer)

WHEREAS
A.   The Tenderer has submitted, or intends to submit, a Tender Response for
     the______________________________procurement (the Procurement)

B.       The Tenderer has read and understood the Fair Work Principles User Guide and understands
         that the Fair Work Principles will apply to the Procurement.

NOW THIS STATUTORY DECLARATION WITNESSES as follows:

1.       Compliance with Fair Work Principles
1.1      The Tenderer declares the following:
1.1.1    The Tenderer has had _______ [NIL OR SPECIFY NUMBER] adverse Court or Tribunal
         decision for a breach of workplace relations law, occupational health and safety law, or
         workers‟ compensation law in the two years preceding the date of this request for
         [tender/expression of interest].
         [If response is nil adverse decisions go to 1.1.3 below]
         Note to Tenderers: Strike through whichever option does not apply.

1.1.2    The Tenderer has fully complied or is fully complying with all penalties or orders arising from
         the Court or Tribunal decisions declared above.
         OR
         The Tenderer has not fully complied with, or is currently not fully complying with
         ____________ [NUMBER] of the penalties or orders arising from the Court or Tribunal
         decisions declared above and has provided as part of its [Submission] information about each
         of these penalties or orders in the form required in Appendix A to the Fair Work Principles
         User Guide.

         Tenderers must provide additional information about each decision declared above as
         specified in Appendix A to the Fair Work Principles User Guide. Tenderers should note that
         they will not be eligible for further consideration for this procurement if they have not fully
         complied with, or are not fully complying with, any Court or Tribunal decision, or have not
         appealed the decision prior to the end of the appeal period.

1.1.3    The Tenderer understands its obligations under all applicable workplace relations,
         occupational health and safety, and workers‟ compensation laws. The Tenderer undertakes
         that it complies, with all of these obligations.

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1.1.4    The Tenderer confirms that (except where it is an overseas based supplier to which these
         requirements do not apply in accordance with the Fair Work Principles User Guide) it:
         • has consultation arrangements which encourage cooperation and engagement of employees
         and management; and
         • understands and respects their employees‟ rights in relation to freedom of association and the
         right to representation at work, including that the Tenderer allows its employees to be able to
         make a free and informed choice about whether to join a union and be represented at work.
1.1.5    Where the Tenderer has a Fair Work Act 2009 enterprise agreement that was approved on or
         after 1 January 2010 that enterprise agreement includes a genuine dispute resolution procedure
         that includes the following:
         • the ability for employees to appoint a representative in relation to the dispute;
         • in the first instance procedures to resolve the dispute at the workplace level;
         • if a dispute is not resolved at the workplace level, the capacity for a party to the dispute to
         refer the matter to an independent third party for mediation or conciliation; and
         • if the dispute is still not resolved, the capacity for an independent third party to settle the
         dispute via a decision binding on the parties.
1.1.6    If at any time prior to entry into a Contract with the preferred Tenderer, any information
         provided in this declaration changes, the Tenderer agrees to advise the ANAO of that change
         within 7 calendar days.
1.1.9    the Tenderer agrees the ANAO may provide any information collected, or provided to it by
         the Tenderer during the course of this RFT process (including regarding breaches of the Fair
         Work Principles) to other Commonwealth agencies or regulatory bodies including the
         Department of Education, Employment and Workplace Relations, Australian National Audit
         Office, Fair Work Ombudsman and Fair Work Australia.


EXECUTED as a Statutory Declaration for and on behalf of:
________________________________________________ by:
(insert Tenderer legal name)
____________________________________ ______________________________
(Printed Name) (Signature)
____________________________________ ______________________________
(Title) (Date)
In the presence of:
____________________________________ ______________________________
(Printed Name) (Signature)
____________________________________
(Date)




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                                     PART 6




  BACKGROUND INFORMATION ON
          THE CLIENT




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DEFENCE HOUSING AUSTRALIA

Functions
Mandate: The Defence Housing Australia (DHA) was established in 1988 by the Defence
Housing Australia Act 1987. DHA commenced operation on 1 January 1988 and became a
Government Business Enterprise (GBE) in 1992.

Mission and Core Activity:

DHA’s Vision: “Excellence in Defence housing and relocation services”.

DHA’s Mission: “To deliver total housing and relocation services that meet Defence
operational and client needs through a strong customer and business focus”.

Operations: DHA‟s primary function is to provide housing and relocation services to
members of the Australian Defence Force (ADF) and their families in order to facilitate the
operational needs and other requirements of Defence. DHA has agreements with the
Department of Defence to provide housing and relocation services to ADF personnel.
Housing services are also provided to staff of the Australian Customs Service (Customs),
under a Heads of Agreement.

DHA manages around 18,000 residences in all states and territories of Australia, representing
around $8 billion worth of housing stock. Over 60 per cent of these residences are owned by
private investors and leased back to DHA through the Sale and Leaseback (SLB) Program.

Business Structure
Organisation and Staffing: DHA is within the Defence portfolio. The Minister for Defence
and the Minister for Finance and Deregulation are Joint Shareholder Ministers of DHA.

DHA is governed by a board of directors. The composition of the Board is governed by the
enabling legislation and comprises nine directors, including the Chairman of the DHA Board
and the Managing Director of DHA (also Chief Executive Officer). DHA‟s operations are
relatively decentralised. DHA employ over 680 staff across the country. The finance team is
located in the Head Office in Canberra.

The Head Office is located at 26 Brisbane Avenue, Barton, ACT 2601




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Financial Data1:

                                                         2008-09           2007-08
    Year Ended June 30                                    $000              $000


    Revenue                                                 863,152          824,794
    Expenses (including Income Tax Expense)                 784,246          750,996
    Surplus                                                   78906           73,798
    Total assets                                          1,745,424         1,683,589
    Total liabilities                                       644,419           614,146
    Total net assets/equity                               1,101,005         1,069,443

The 2009–10 annual report would be available on DHA‟s website around mid November
2010.

Information Technology Systems:

Defence Housing Australia has the following IT systems supporting the financial statements.

      General ledger package (SUN).
      Tenant Management System (TMS).
      Property Management System (PMS).
      Personnel System (AURION).
      Tenancy Property Management System (TPMS) – an integrated system combining both
         the PMS and TMS.
      HomeFind – DHA‟s online housing selection system.

Additional Background Information and annual reports and financial statements can be
obtained from DHA‟s web site www.dha.gov.au.

Audit Risk
Defence Housing Australia is a statutory body providing housing services to the Department
of Defence and the Australian Customs Service under different service agreements. DHA is a
major operator in the residential housing market (through property acquisition, disposal and
leasing). The residential housing market can experience major fluctuations in respect of
capital values and vacancy levels, due to both local and national factors.

The ANAO adopts a risk based audit approach as required the Australian Auditing Standards.
In 2009–10, DHA‟s audit is considered moderate risk.




1
    Source: 2008–09 Annual report

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Major Developments: Within the funding available, DHA executes a comprehensive
construction and acquisition program to meet Defence housing requirements, with capital
expenditure of approximately $1.6 billion planned over the next three years. Approximately
3,100 new properties will be provisioned through construction and acquisition over the next
three years, including the constructions funded under the Government‟s Nation Building -
Economic Stimulus Plan.

Significant Issues
The ANAO recently issued an unqualified audit opinion on the DHA‟s 2009–10 financial
statements. Strength of the internal control environment has an impact on the nature and
extent of audit testing to be undertaken. The results of recent reviews of the internal control
environment can be summarised as being effective. No moderate or significant findings were
reported by the ANAO audit team last year.

Audit Timetable
The audit time table for the processing of the 2009–10 financial statements was as follows:

 Activity                                          Date
 Draft financial statements received              Mid July
 Audit report issued                              First week of August

DHA has indicated that they plan to provide draft financials statements of the 2010–11
financial year to the ANAO audit team with a similar time frame.

Security Clearance
The security clearance required for DHA audit is Protected.




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LYONS JOINT VENTURE
(ALSO KNOWN AS THE LEE POINT JOINT VENTURE)

Functions
Mandate: DHA entered into a joint venture (50:50) with the Canberra Investment
Corporation (CIC) in March 2005 for the construction of a housing development at Lee Point,
in the new suburbs of Lyons, Darwin.

The Lyons Joint Venture (LJV) prepares Special Purpose Financial Statements to comply
with the Joint Venture Agreement.

LJV management has indicated that the LJV is expected to be wound up in 18 months.
However, they may enter into another joint venture of similar nature.

Operations: The development aims to deliver an innovative, high quality, ecologically
sustainable urban environment, suitable for Darwin‟s tropical climate. To meet the needs of
ADF members and their families, a mixture of lot sizes has been designed to provide choice,
enhanced liveability and community safety.


Business Structure
Organisation and Staffing: A Joint Venture Management Committee, which has
representatives from both DHA and CIC, oversee the operations of the LJV. The housing
development will result in 650 residential blocks, 300 of which will be used to build housing
for ADF members and their families. Lyons JV has no staff as all services are undertaken by
CIC staff.

The Head Office is located at 60 Marcus Clarke Street, Canberra, ACT 2601.

Financial Data2:
                                                    2008-09          2007-08
    Year Ended June 30                               $000             $000


    Revenue                                             52,295           46,224
    Expenses                                            39,920           35,815
    Surplus                                             12,375           10,409
    Total assets                                        20,377           41,644
    Total liabilities                                    4,125           10,767
    Total net assets/equity                             16,252           30,877




2
    Source: 2008-09 audited financial statements

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Audit Risk
The ANAO adopts a risk based audit approach as required the Australian Auditing Standards.
In 2009–10, LJV audit is considered low risk.


Significant Issues
The ANAO recently issued an unqualified audit opinion on the LJV‟s 2009–10 financial
statements. Strength of the internal control environment has an impact on the nature and
extent of audit testing to be undertaken. The results of recent reviews of the internal control
environment can be summarised as being effective. No moderate or significant findings were
reported by the ANAO audit team last year.


Audit Timetable
The audit time table for the processing of the 2009–10 financial statements was as follows:

 Activity                                          Date
 Draft financial statements received              Mid July
 Audit report issued                              First week of August

LJV has indicated that they plan to provide draft financials statements of the 2010–11
financial year to the ANAO audit team with a similar time frame.

Security Clearance
The security clearance required for LJV audit is Protected.




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