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Administration of the Digital Television Switchover Household ...

Administration of the Digital Television Switchover Household ...

two‐contractor model,

two‐contractor model, as it considered that the use of two service contractors would provide an alternative, should a provider fail to deliver services as required under the service agreement. The committee agreed that the awarding of deeds for the provision of services and equipment under HAS would be allocated on the basis of a percentage split (for example, Mildura/Sunraysia 75 per cent for the first‐ranked tenderer and 25 per cent for second‐ranked tenderer). 3.52 Two tenderers were recommended for the Mildura/Sunraysia pilot by the evaluation committee. The delegate, however, decided to approve the commencement of negotiations with the highest ranked tenderer. The department informed the ANAO that, although the delegate agreed with the evaluation committee in relation to the two preferred tenderers, the delegate selected the highest ranked tenderer in order to ensure that service delivery was simplified through the use of one service contractor. 3.53 In relation to Regional South Australia and Broken Hill and Regional Victoria, two preferred tenderers were recommended to the delegate, based on the preferred two‐contractor model. However, for Regional Queensland, the evaluation committee had recommended a multiple‐contractor model for delivery of HAS across all six areas. This approach was designed to deliver economies of scale and to minimise risks. The committee proposed to allocate work in recognition of the tenderers’ comparative ranking. However, the committee ultimately recommended the two highest ranked tenderers, as it had concerns with the third ranked tenderers ability to source the required equipment and additional, qualified staff. Notification and debriefing 3.54 As required by the RFT and the Tender Evaluation and Probity Plan, all unsuccessful tenderers for Mildura/Sunraysia, and Regional South Australia and Broken Hill, Regional Victoria and Regional Queensland were notified in writing of the outcome of the tender. The letters also provided unsuccessful tenderers an opportunity to seek written feedback as to why they were unsuccessful. All six unsuccessful tenderers for Mildura/Sunraysia requested, and were provided with, written feedback from DBCDE, including information on their performance against each evaluation criterion. Conclusion 3.55 The tender assessment and evaluation process involved four stages— initial screening, detailed technical evaluation, value for money assessment, ANAO Audit Report No.55 2011–12 Administration of the Digital Television Switchover Household Assistance Scheme 80

Tender Selection and Deed Negotiation and negotiations and debriefing. All tenders were assessed and evaluated as outlined in the RFTs and the Tender Evaluation and Probity Plans and in accordance with the CPGs. Deed negotiation 3.56 The fourth stage of the evaluation process is the negotiation of deeds of agreement. This stage is central to concluding the procurement process and awarding a deed to successful tenderer(s). The ANAO reviewed DBCDE’s arrangements for conducting the negotiation process, the timeliness of this process, and the deeds put in place for providing HAS services. Conducting the negotiation process 3.57 As part of the Tender Evaluation Report, the evaluation committee sought approval from the delegate (a Deputy Secretary) to enter into negotiations with the preferred tenderer(s). The outcomes sought by DBCDE from the negotiation processes centred on ameliorating issues or risks identified by the evaluation committee in the preferred tenderer(s)’ original tender. The preferred tenderer(s) generally sought clarification on requirements contained within the draft deed. 3.58 DBCDE prepared pre‐meeting briefs to highlight areas in the draft deed to be discussed during negotiations. The briefs identified DBCDE’s preferred and minimum negotiation position and were based upon recommendations identified by the evaluation committee in its final report(s). 62 3.59 As part of the negotiation process, DBCDE provided a briefing package to the preferred tenderer(s) that included: � a tailored copy of the draft deed; � a detailed list of the issues identified for negotiation with each tenderer; � areas in the draft deed where DBCDE proposed changes following the release of the RFT; � areas where tenderer(s) had made offers above the requirements in the RFT; and � other general points to note in the negotiation process. 62 Staff involved in contract negotiations differed from those involved in the tender evaluation process. ANAO Audit Report No.55 2011–12 Administration of the Digital Television Switchover Household Assistance Scheme 81

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