Finance and Systems
Purchasing
The Mint has developed its internal policies and procedure for the procurement of goods and services, consistent with the Mint's Chief Executive Instructions and the Commonwealth Procurement Guidelines.
During the 2005-06 year the Mint also updated its suite of documents ensuring all tender documents and contracts were consistent and that they were written in plain English. Responsibility for procurement is devolved to managers, with the contracts manager providing assistance.
Internal audit conducted a follow-up review of contract management procedures following a previous audit in 2003. The review found that there had been significant improvement in the management of contractual arrangements, however there was still room to improve practices.
Involvement in government forums on purchasing ensures that officers keep up-to-date with the latest changes to government policy therefore maintaining procurement expertise to comply with the latest policies and guidelines.
Consultancies
Consistent with the Commonwealth Procurement Guidelines and the Chief Executive Instructions the Mint engages consultants on the basis of:
- value for money;
- open and effective competition;
- ethics and fair dealing;
- accountability and reporting;
- national competitiveness and industry development; and
- support for other Australian Government policies.
Typically, consultants are engaged to investigate or diagnose a defined issue or problem; carry out defined research, reviews or evaluations; provide independent advice; and provide information or creative solutions to assist the Mint manage their decision making. The most common reasons for engagement of consultancy services are:
- unavailability of specialist in-house resources in the short timeframe allowed;
- the need for an independent study or review; and
- specialist skills and knowledge not available in-house.
The selection methods used for consultancies are categorised in column five of the table on the following page.
The Mint will continue to assist staff through attendance at procurement seminars in addition to holding in-house seminars. These initiatives will improve the management of the Mint's contracts and consultancies throughout the year.
During 2005-06, four new consultancy contracts valued at $10,000 and over were entered into involving total expenditure of $109,315. In addition, two ongoing consultancy contracts valued at $10,000 and over were active during the year involving total actual expenditure of $219,491.
| Consultant Name | Description | Contract Price $ | Selection Process (1) | Justification (2) |
|---|---|---|---|---|
| Ernst & Young | Provide Internal Audit Services |
125,355 | Open Tender | b |
| Consulting Safety International Pty Ltd | Provide OH&S Audit Services |
16,500 | Open Tender | b |
| Inside Story | Market Research | 90,000 | Open Tender | b |
| GHD Pty Ltd | Architectural Design for Mint Refurbishment |
246,286 | Open Tender | b |
| Clark Management and Engineering Pty Ltd | Provision of Process Engineering Services |
25,000 | Direct Sourcing | b |
| Robert Thorne Architect Pty Ltd | Conservation and Heritage Architectural Design Services |
11,000 | Direct Sourcing | b |
| Total consultancies over $10,000 | 514,141 | b | ||
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