Page 2456 - Week 08 - Thursday, 6 June 2013
(5) What advice did Procurement Solutions provide in relation to the Government’s decision to build the Skywhale and gift it to the operator.
(6) What advice did Procurement Solutions provide in relation to identifying the five companies approached for a tender.
Ms Gallagher: The answer to the member’s question is as follows:
(1) The procurement process for all stages of the balloon project followed the requirements of the relevant Act and Regulations. The balloon project was designed in three stages and given the highly specialised nature of this market, it wasn’t envisaged that one company would tender for, or provide, all three stages:
a) The first stage, Design, was well below the tender threshold of $25,000 and as such only one quote for services is required.
b) The second stage, Manufacture, was below the $200,000 threshold and as such only three quotes were required. Given that balloon manufacture is a complex and technical field, consultation and research was undertaken to determine the best balloon production companies across the world and the top five companies identified were approached to tender for this stage.
c) The third stage, Commission and Operation was also below the $200,000 threshold and as such only three quotes were required. Research on balloon operators in southeast Australia yielded three names and these were approached to tender for the work.
(2) Based on consultation and research, the five (5) companies were chosen for their capacity and experience as world leaders in the manufacture of hot air balloons.
(3) Legal advice from the ACT Government Solicitor’s Office was received in August 2011.
(4) After consideration of the various options for the ownership and management of a hot air balloon, and conducting a risk and value for money assessment it was agreed to use the methodology chosen to procure and assign the custodial/ownership rights for the hot air balloon.
(5) Up to three staff from Procurement Shared Services have been embedded in the Centenary of Canberra team to assist and manage its procurement activities, since November 2010. Informed by ACT Government Solicitor’s Office advice, Procurement staff assisted in the development of a procurement plan that was endorsed and approved by all relevant delegates.
(6) Procurement staff endorsed the rigour and criteria of the approach to the five (5) companies.