Government Purchasing Schemes to Undergo Overhaul

Strategic Insights -

Government purchasing schemes for computer equipment are facing a significant overhaul in the wake of harsh criticism in a report tabled by the Industry Science and Technology committee. The report suggests that the Partnerships for Development, Fixed Term Arrangements, and Systems Integration Panel programs are to be subsumed within a wider-approved supplier scheme, allowing smaller Australian information technology companies to compete more evenly with multinationals. The chairman of the committee, Arch Bevis, has criticized the existing schemes for their failure to administer policy effectively, inadequate monitoring of expenditure, and attitudinal problems among government purchasers.

Key Takeaways:

  • The Partnerships for Development, Fixed Term Arrangements, and Systems Integration Panel programs will be subsumed within a wider-approved supplier scheme to allow smaller Australian IT companies to compete with multinationals.
  • The report criticizes government purchasing schemes for their "appalling failure of policy administration", "totally inadequate monitoring of expenditure", and "attitudinal problems among government purchasers".
  • Performance clauses will be written into contracts worth over $1 million to ensure suppliers meet industry development obligations.
  • The Government will establish a group of public, private sector, and union representatives to advise on changes to the purchasing system.
  • The Committee has called for the abolition of the Common Use Contract (CUC) Commission and renegotiation of approved supplier arrangements to reflect best value for government buyers.
  • The report recommends more training for government IT purchasing officers and implementation of electronic trading between suppliers and government departments.
  • Arch Bevis believes that electronic data interchange will bring significant savings to taxpayers.
  • Peter Upton, executive director of the Australian Information Industry Association, has expressed concerns that an advisory National Procurement Board will add to bureaucracy and cost.

Statistics:

  • Contracts worth over $1 million will require performance clauses to ensure industry development obligations are met.
  • 50% of the report rejects the government's purchasing scheme, according to Arch Bevis.
  • He was particularly scathing about the Department of Finance's submission on the multiplier effects of Commonwealth purchasing, highlighting "appalling failure of policy administration" and "totally inadequate monitoring of expenditure".

Sources:

  • David Ives and `Computer Daily News'
  • Industry Science and Technology committee report
  • Arch Bevis, Chairman of the committee
  • Peter Upton, Executive Director of the Australian Information Industry Association
  • Department of Finance
  • Department of Administration Services (DAS)
  • Australian Information Industry Association (AIIA)