Revealed: Direct ICT procurement, by agency, 2010

 

Health, Climate Change, Customs and Medicare top the list.

Defence Materiel, the Department of Health and Ageing, Customs and Climate Change spent the greatest proportion of contracts directly with IT suppliers without going to open tender, iTnews can reveal.

Following up iTnews analysis’ of IT and Telecommunications expenditure during the ALP Government, today we offer an insight into procurement decisions by agency.

Whilst mandatory guidelines promote the use of open tenders or selection panels for individual contracts over $80,000, in practice there appears to be extensive use of approved exemptions that result in almost four out of ten IT contracts being undertaken through direct selection.

In 2010, some 37 percent of all Government contracts over $80,000 for information technology, broadcasting and telecommunications were determined by direct selection as opposed to open tender or by panel.

The top spender on direct IT procurement was the Defence Materiel Organisation – project manager for the Australian Defence Force. The DMO went direct for $257 million (34 percent) of the $763 million spent on contracts during the calendar, according to our analysis of all AusTender-listed contracts.

Of the top 25 agencies by expenditure, Climate Change & Energy Efficiency (100 percent of contract spend), Medicare Australia (90 percent), Customs and Border protection (85 percent), Health and Ageing (84 percent) spent over three-quarters of their total IT and telecommunications contracts using direct selection.

Direct contract spend of IT, Broadcasting and telecommunications amongst FMA agencies, 2010

Agency Total Procurement (AU$)

Direct Procurement
(AU$)

Percentage of contract spend direct
DEFENCE MATERIEL 763,227,493 257,604,633 34%
DEFENCE 656,032,631 236,423,592 36%
AUSTRALIAN TAXATION OFFICE 148,509,916 9,931,860 7%
CENTRELINK 125,090,041 62,214,320 50%
MEDICARE AUSTRALIA 85,274,945 76,596,103 90%
DEPT OF FINANCE 71,993,893 939,106 1%
HUMAN SERVICES 62,240,206 39,474,335 63%
BUREAU OF METEOROLOGY 27,758,530 4,637,492 17%
PARLIAMENTARY SERVICES 22,542,657 3,860,157 17%
CLIMATE CHANGE & ENERGY EFFICIENCY 22,241,193 22,241,193 100%
DBCDE (BROADBAND AND DIGITAL ECONOMY) 21,266,725 1,781,946 8%
CUSTOMS AND BORDER PROTECTION 20,338,563 17,282,806 85%
ATTORNEY-GENERAL'S DEPARTMENT 19,271,120 10,623,219 55%
DEPT OF VETERANS AFFAIRS 18,578,255 15,515,723 84%
DEPT OF FOREIGN AFFAIRS AND TRADE (DFAT)
18,287,711 4,048,768 22%
AUSTRALIAN BUREAU OF STATISTICS 16,376,360 2,940,191 18%
DOHA - DEPT OF HEALTH  AND AGEING 15,821,352 13,243,917 84%
DEEWR 15,560,509 9,813,163 63%
GEOSCIENCE AUSTRALIA 11,847,891 2,091,299 18%
IMMIGRATION & CITIZENSHIP 11,528,480 4,221,523 37%
INDUSTRY SCIENCE & RESEARCH 10,824,045 8,110,327 75%
FHCSIA (FAMILIES, HOUSING, COMMUNITY & INDIGENOUS AFFAIRS)
10,725,991 4,946,053 46%
OFFICE OF FAIR WORK OMBUDSMAN 10,361,335 9,474,300 91%
CRIMTRAC 9,929,021 485,544 5%
AUSAID 8,050,516 4,265,737 53%
DEPT OF TREASURY 6,879,368 4,215,545 61%
COMSUPER 6,323,429 0 0%
ASIC
3,875,969 1,226,852 32%
ACMA 3,623,501 1,208,547 33%
DAFF - AGRICULTURE, FISH AND FORESTRY
3,060,239 180,690 6%
IP AUSTRALIA 2,941,481 490,004 17%
PRIME MINISTER AND CABINET
2,688,657 0 0%
OFFICE OF DIRECTOR OF PUBLIC PROSECUTIONS 2,500,000 0 0%
RESOURCES ENERGY & TOURISM 2,251,972 2,170,187 96%
AUSTRALIAN FAMILY COURT 1,818,808 1,126,136 62%
AUSTRALIAN ELECTORAL COMMISSION 1,124,899 0 0%
AUSTRALIAN PRUDENTAL AUTHORITY 1,123,063 1,123,063 100%
FEDERAL COURT 1,119,361 562,918 50%
AUSTRALIAN CRIME COMMISSION 1,102,941 944,810 86%
AUSTRAC 982,222 0 0%
HOUSE OF REPRESENTATIVES 836,963 539,963 65%
NATIONAL ARCHIVES 812,617 87,200 11%
ANAO - AUDIT OFFICE 784,430 784,430 100%
NATIVE TITLE TRIBUNAL 730,000 0 0%
DEPT OF INFRASTRUCTURE AND TRANSPORT 673,000 0 0%
INSOLVENCY TRUSTEE 618,632 0 0%
AUSTRALIAN RESEARCH COUNCIL 610,898 263,120 43%
FAIR WORK AUSTRALIA 515,641 0 0%
RADIATION PROTECTION & NUCLEAR SAFETY 504,706 225,086 45%
ORGAN TRANSPLANT AUTHORITY 384,898 384,898 100%
COMMONWEALTH OMBUDSMAN 312,651 0 0%
BARRIER REEF MARINE PARK 275,000 275,000 100%
MAGISTRATES COURT 259,941 0 0%
SENATE 250,000 0 0%
FUTURE FUND 247,300 247,300 100%
PROFESSIONAL SERVICES REVIEW 211,050 0 0%
SUSTAINABILITY, ENVIRONMENT, WATER AND POPULATION
198,000 198,000 100%
FISHERIES MANAGEMENT AUTHORITY 137,500 137,500 100%
AUSTRALIAN COMMISSION FOR LAW ENFORCEMENT INTEGRITY 124,362 124,362 100%
NATIONAL WATER COMMISSION 105,464 105,464 100%
MIGRATION REVIEW TRIBUNAL 99,810 99,810 100%
NATIONAL BLOOD AUTHORITY 92,380 92,380 100%
SAFE WORK AUSTRALIA 91,520 91,520 100%
ADMINISTRATIVE APPEALS TRIBUNAL 91,300 91,300 100%
AUSTRALIAN PUBLIC SERVICE COMMISSION 89,782 0 0%




TOTAL 2,254,153,131 839,763,390 47%

 

Direct contract spend of IT, Broadcasting and telecommunications amongst FMA agencies, 2010

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Revealed: Direct ICT procurement, by agency, 2010
 
 
 
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