In 2018–19, PM&C undertook procurement and purchasing activities in accordance with the principles set out in the Commonwealth Procurement Rules (CPRs).
The CPRs are applied to PM&C’s procurement activities through the Secretary’s Instructions (now Accountable Authority Instructions) and Financial Rules and are supported by the provision of centralised advice on all procurement matters. This ensures that PM&C undertakes competitive, non-discriminatory procurement processes; uses resources efficiently, effectively, economically and ethically; and makes decisions in an accountable manner.
In 2018–19, PM&C awarded over 98 new contracts to Indigenous businesses. This represents around 11 per cent of the total 881 PM&C contracts with a value over $10,000 awarded in 2018–19. The total estimated contract value of contracts that PM&C awarded to Indigenous businesses in 2018–19 was $21.95 million, or around an estimated 17 per cent of total contract value. PM&C has refreshed its Indigenous Procurement Strategy in line with the 2019–20 PM&C Reconciliation Action Plan.
PM&C’s standard contract templates include provisions allowing the Auditor-General to have access to the relevant contractor’s premises. Contracts of $100,000 or greater (inclusive of GST) that were let during 2018–19 provided for the Auditor-General to have access to the relevant contractor’s premises where appropriate.
There were no contracts in 2018–19 in excess of $10,000 (inclusive of GST) that were exempt from being reported on AusTender on the basis that they would disclose exempt matters under the Freedom of Information Act 1982.
Information on procurements expected to be undertaken in 2019–20 through an open approach to market is published in PM&C’s annual procurement plan, available on the AusTender website (www.tenders.gov.au).
Consultants
PM&C engages consultants for specialist expertise or when independent research, review or assessment is required. Decisions to engage consultants during 2018–19 were made in accordance with the PGPA Act and related regulations, including the CPRs and relevant internal policies.
During 2018–19, 57 new consultancy contracts were entered into involving total actual expenditure of $5.74 million. In addition, 35 ongoing consultancy contracts were active during the period involving total actual expenditure of $4.68 million. Details of trends in consultancies are shown in Table 3.26. This annual report contains information about actual expenditure on contracts for consultancies. Information on the value of contracts and consultancies is available on the AusTender website (www.tenders.gov.au).
|
Consultancies |
2018–19 |
2017–18 |
2016–17 |
|---|---|---|---|
|
Number of existing consultancies |
35 |
24 |
13 |
|
Number of new consultancies |
57 |
101 |
91 |
| Total consultancies | 92 | 125 | 104 |
| Total expenditure | $10.42m | $7.05m | $3.29m |
Small and medium enterprises
PM&C recognises the importance of ensuring that small businesses are paid on time. The results of the Survey of Australian Government Payments to Small Business are available on the Treasury’s website.
PM&C supports small business participation in the Commonwealth Government procurement market. Small and medium enterprises (SMEs) and small enterprise participation statistics are available on the Department of Finance website (www.finance.gov.au/procurement/ statistics-on-commonwealth-purchasing-contracts). PM&C’s procurement practices support SMEs by adopting whole-of government solutions to simplify interactions with SMEs. This includes using the Commonwealth Contracting Suite for low-risk procurements valued under $200,000.
Advertising and market research
Under section 311A of the Commonwealth Electoral Act 1918, PM&C is required to disclose payments of $13,000 or more (inclusive of GST) for advertising and market research.
PM&C did not conduct advertising campaigns during 2018–19.
| Firm | Service provided | 2018–19 payments made in $ (not incl GST) | 2018–19 payments made in $ (incl GST) |
|---|---|---|---|
| Mediabrands Australia Pty Ltd Universal McCann |
Recruitment services. State funeral newspaper notices for the Hon Bob Hawke AC, the Hon Dr John Herron AO and the Hon Gordon Scholes AO. |
85,681 23,771 |
94,249 26,148 |
| Australian Public Service Commission | Recruitment services. | 39,090 | 42,999 |
| Newgate Communications Pty Ltd |
Community Sentiment Research Project, including analysis of public opinion on government data sharing and release of legislation. |
290,130 | 319,143 |
| Orima Research Pty Ltd | State of the Service Survey. | 66,873 | 75,560 |
| The Social Research Centre Pty Ltd | Citizen Survey: Research to reach a wider audience group through the use of mixed approaches (phone, internet) to ask about service delivery experience. | 54,581 | 60,039 |
| University of Canberra | Citizen Survey: Research to gain a richer understanding of service delivery in different geographical locations. | 206,620 | 227,281 |
Asset management
PM&C manages its assets in accordance with the Secretary’s Instructions, relevant accounting standards and Department of Finance requirements.
In 2018–19, PM&C administered significant strategic assets, in the form of investments, on behalf of the Australian Government for two special accounts: the Aboriginals Benefit Account (ABA) and the Aboriginal and Torres Strait Islander Land Account (ATSILA). Both the ABA and ATSILA investment strategies are focused on cash-flow requirements, preservation of the fund and management of risks. Moneys that are surplus to immediate requirements are invested under section 58 of the PGPA Act. For further detail, refer to the ABA annual report in the appendices.
Non-compliance with finance law
No significant instances of non-compliance requiring a report to the responsible Minister in accordance with the PGPA Act have been recorded in the Department for 2018–19.
Grant programs
Information on grants awarded by PM&C during the period 1 July 2018 to 30 June 2019 is available on the Department’s website at www.pmc.gov.au.