Annual Report 2015–2016

NHMRC employs the following initiatives or practices to support SME’s as per paragraph 5.4 of the
Commonwealth Procurement Rules:
• Using the Commonwealth Contracting Suite for low risk procurements valued under $200,000
• Following the Small Business Engagement Principles, such as communicating in clear, simple language
and presenting information in an accessible format
• Using electronic systems or other processes that facilitate on-time payment performance, including the
use of payment cards.
NHMRC supports the Indigenous Procurement Policy (IPP) and if there is an Indigenous business that can
deliver any new domestic contract between $80,000 and $200,000, on a value for money basis, NHMRC
must offer it to them first.
PART 3 operating environment
CONSULTANCY SERVICES
NHMRC uses guidance published by the Department of Finance on Procurement Policy to distinguish
between consultancy and non-consultancy contracts for annual reporting purposes.
NHMRC engages consultants where it lacks specialist expertise or when independent research, review
or assessment is required. Consultants are typically engaged to investigate or diagnose a defined issue or
problem; carry out defined reviews or evaluations; or provide independent advice, information or creative
solutions to assist in the agency’s decision-making.
Prior to engaging consultants, NHMRC takes into account the skills and resources required for the task, the
skills available internally, and the cost-effectiveness of engaging external expertise. The decision to engage
a consultant is made in accordance with the PGPA Act and related regulations, including the CPRs and
relevant internal policies.
During 2015–16, nine new consultancy contracts were entered into involving total actual expenditure of
$319,277.60. In addition, 12 ongoing consultancy contracts were active during 2015–16 year, involving total
actual expenditure of $255,743.73. The total expenditure during 2015–16 was $575,021.33.
Table 20 Consultancy contract expenditure from 2011–12 to 2015–16
2011–12 2012–13 2013–14 2014–15 2015–16
Expenditure against
contracts awarded in
previous years
$607,286.20 $774,778.61 $660,946.15 $1,375,018.70 $575,021.33
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Annual Report of the National Health and Medical Research Council 2015–2016