Output 5.1 Procurement and Capital Works
Overview
The directorate undertook procurement activities on behalf of directorates and agencies for infrastructure, capital works, goods and services. It:
- advised the ACT Government on procurement and related construction industry policy;
- was responsible for the development and implementation of the Government’s procurement related policies;
- administered a range of pre-qualification schemes and online procurement support systems;
- established and managed whole of government contracts and panels; and
- coordinated the Work Health and Safety Active Certification Policy for ACT Government construction sites.
The directorate administered the Agreed Memorandum of Understanding on Procurement of Works and Services by the ACT Government (MOU), which the Chief Minister and UnionsACT signed in March 2015.
Implementation of the MOU was largely completed, with the principles embedded into procurement processes such as prequalification, the Work Health and Safety Active Certification Policy and the Compliance with Industrial Relations and Employment Obligations Strategy for ACT Government Capital Works Projects (IRE Strategy). Work is continuing to strengthen the safety and industrial relations aspects of the Territory’s procurement and contracting framework, and this will be done in consultation with relevant government, union and business/industry stakeholders over the coming year.
In 2015–16 the Territory received complaints from employee representative organisations about four contractors who were either working on government contracts or seeking prequalification. Two of the contractors were working as school cleaners, one was a plumber (subcontracted by a construction company) and one was seeking prequalification as a contractor. The cleaning issues were thoroughly investigated by the directorate concerned in consultation with the Government Solicitor’s Office. While the Territory is not a party to contracts with subcontracted entities, this issue was also examined by the Territory and subsequently resolved. The prequalification matter is still being investigated in consultation with the Government Solicitor’s Office.
Highlights
Against this output in 2015-16 the directorate:
- implemented the first phase of the Smart Modern Strategic (SMS) Procurement Reform Program to reform procurement and deliver savings across the ACT Government. The first phase included:
- stronger engagement with industry (through industry forums and workshops) on improving procurement practices and policies;
- establishing more whole of government contracts for goods and services and more mature arrangements for fleet, utilities, and stationery;
- better procurement and software licensing policies and practices; and
- identification, and agreement on the delivery, of the second phase of procurement initiatives under the SMS program;
- implemented improved systems for tendering and the management of procurements, with further systems for managing panel arrangements being progressed;
- continued to support The Capital Framework by assisting directorates to develop stronger business case submissions, enabling more thorough planning, appraisal and evaluation in the formative stages of the investment lifecycle;
- coordinated training for project officers in the GC21 form of contract to build capability in the use of a range of models for major capital works projects;
- continued a review of the Compliance with Industrial Relations and Employment Obligations Strategy for ACT Government Capital Works Projects;
- reviewed the Work Health and Safety Active Certification Policy (ACP), following its implementation in 2013, with changes introduced with effect from 1 July 2016, to better reflect current business practices and to allocate safety audit resources more efficiently by diverting resources from audits of inactive or low risk worksites to new or high risk worksites;
- continued to apply the ACP and work with WorkSafe to achieve a major improvement in safety on construction sites;
- began drafting an Indigenous Procurement Policy and, in the interim, established a dedicated page on the Procurement website, and a Simplified Procurement Tool on the ACT Government’s intranet, to assist directorates with including Aboriginal and Torres Strait Islander owned businesses in their procurement opportunities;
- collaborated with Innovate Canberra to establish the position of Local Industry Advocate and, following the appointment of Ms Kate Lundy to this position, to support the Advocate in her role which includes developing an Industry Participation Policy for the ACT with the aim of ensuring ACT Government procurement processes do not inadvertently disadvantage ACT businesses, and encouraging local industry participation into procurement activities for significant Territory projects including the University of Canberra Public Hospital, the new Courts Facility and Capital Metro; and
- continued the Loose Fill Asbestos Insulation Demolition Program, with 234 houses safely demolished in 2015–16 and the program ahead of schedule.
Procurement and Capital Works had four accountability targets in 2015–16, with two not met and two exceeded. The exceeded targets were:
- (b) proportion of tenders available to potential tenderers in electronic format, with a result of 100% obtained against a target of greater than 90% achieved due to the introduction of the new electronic tendering system on the Procurement and Capital Works website (TendersACT); and
- (d) Capital Works Projects (i) percentage of construction projects completed on budget, and (ii) percentage of construction projects completed on time, where all projects managed by Procurement and Capital Works were completed on time and budget due to improved project estimated processes and enhanced communication and early monitoring of issues.
The two targets not met were:
- (a) proportion of government funded annual capital works program supported with project procurement services where a result of 73 per cent was achieved against a target of 90% due to a larger than usual number of agencies making only partial use of Procurement and Capital Works support; and
- (c) proportion of relevant projects supported by Procurement and Capital Works that have had a WHS audit performed in accordance with the Active Certification Program, where a result of 89 per cent was achieved against a target of greater than 90 per cent, due to audits being programmed where they would deliver the most value, for example audits were not held where projects were nearly complete and most of the workforce demobilised.
Future Direction
In 2016-17, the directorate will:
- work to ensure procurement reforms achieve greater value for money on all major infrastructure projects and goods and services procurements;
- implement the second phase of procurement reform projects under the SMS Procurement Reform Program; and
- complete the procurement and implementation of a capital works Management and Reporting System to provide greater collaboration, project management and reporting capability for capital works projects.
For further information contact:
George Tomlins
Executive Director
Procurement and Capital Works
+61 2 6207 8944
George.Tomlins@act.gov.au
