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Final report on government procurement

THE Joint Select Committee on Government Procurement today released its final report into the Australian Government’s procurement rules, including a range of recommendations for improving the rules on how the Government spends its money.

The Committee’s recommendations include:

  • amending the rules to require all goods purchased by the Australian Government to comply with national standards;
  • the introduction of policies to promote environmentally sustainable procurement and best practice terms and conditions for subcontractors;
  • the appointment of an independent Industry Advocate to provide support for businesses to access Commonwealth contracts, to provide advice to government agencies, and to evaluate and monitor the economic benefit associated with government procurement; and
  • the publication of comprehensive guidelines to inform officials’ application of the rules in a consistent, transparent and equitable manner.

Committee Chair Senator Nick Xenophon believes the new procurement rules, introduced in March, have the potential to deliver significant benefit to the Australian economy by providing important support to Australian industry.

“Implemented effectively, the new rules will enable a broader, more accurate consideration of value-for-money in procurement decision making,” Senator Xenophon said.

“However, their impact will be dampened unless the Australian Government act swiftly to address the implementation concerns identified in this report.

“A national Industry Advocate, cast on the highly successfully South Australian model, is urgently needed to overcome a current procurement culture focused on lowest cost rather than value for money, lacking in transparency and unaware of the benefits of engaging Australian businesses.”

Last financial year, more than $56.9 billion was spent by the Australian Government on the goods and services required to deliver its policy objectives. More than 10,000 businesses were contracted to deliver these items, including 9,595 small to medium businesses.

The Joint Select Committee on Government Procurement was formed to investigate the implementation of the new Commonwealth Procurement Rules, which came into effect on 1 March 2017. The Committee considered how the implementation of the new rules could be strengthened to increase the economic benefit procurement delivers to the Australian economy.

For further information about the Committee, or to view its final report, visit the Committee’s website.

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Committee launches inquiry into Australia’s Antarctic Territory

A PARLIAMENTARY committee today launched an inquiry examining the infrastructure assets and capability in Australia’s Antarctic Territory.

The Joint Standing Committee on the National Capital and External Territories’ inquiry considers the adequacy of Australia’s infrastructure assets and capability in Antarctica with regard to:

  • maintaining national interests;
  • serving the scientific program into the future;
  • international engagement, including collaboration and resource sharing with other countries;
  • fostering economic opportunities consistent with the Antarctic Treaty System obligations; and
  • environmental considerations.

Chair of the Committee, Ben Morton MP, said “The Committee’s inquiry is timely, with 2017 marking the 60th anniversary of Australia’s the Davis Research Station in Antarctica”.

Mr Morton noted that “The last time the Committee considered Australia’s role in Antarctica was in 2005. Significant advancement in scientific capability and technology since the Committee’s previous inquiry provides an opportunity for renewed focus on Australia’s Antarctic assets and capabilities into the future”.

The Committee is seeking submissions from individuals, organisations and government stakeholders addressing one or more of the inquiry’s terms of reference, until 11 August 2017.

Information about how to make a submission to an inquiry can be obtained from the Parliament of Australia webpage.

Interested members of the public may wish to track the committee via the website

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Top 20 retailers shortlisted for Australian Retail Awards

JUDGING of the 2017 eftpos ARA Australian Retail Awards is now underway, with a list of Top 20 Retailers already announced ahead of the Awards breakfast on Thursday August 3, at the National Gallery of Victoria.

With the coveted 2017 Retailer of the Year Award one of the hardest awards to judge, the Australian Retailers Association (ARA) has re-imagined the selection process and worked with industry experts to determine what constitutes the ‘best in retail’ in the evolving sector.

This year, the ARA commissioned the Australian Consumer, Retail, and Services (ACRS) research unit within the Monash Business School to undertake the ARA’s Top 20 Retailers research project.

The ACRS research provided ARA with an overview of the Top 20 Retailers in Australia from a variety of secondary resources, including IBISWorld reports, annual reports, news articles, and company websites.

Russell Zimmerman, ARA Executive Director, said this revised methodology, coupled with mystery shopping initiatives and field agency surveys, ensures the highest-standard of credibility and integrity in awarding this prestigious award.

“This robust Retailer of the Year adjudication process is vital in deciding the winner of what we consider the greatest honour in the Australian retail industry,” Mr Zimmerman said.

“With the extraordinary calibre of leading Australian retailers in the field, this new meticulous awards process ensures that the impartial panel of judges are well-equipped to decide who is the most deserving of the 2017 Retailer of the Yearcrown.”

While a record number of entries were received by the ARA this year, the ARA’s Top 20 Retailers were determined by several essential factors including; company culture, fiscal performance, corporate responsibility, marketing initiatives and customer engagement strategies.

The 2017 eftpos ARA Australian Retail Awards: Top 20 Retailers

  • Aldi
  • Big W
  • Bunnings Warehouse
  • Chemist Warehouse
  • Cotton On
  • Dan Murphy’s
  • David Jones
  • EB Games
  • Harvey Norman
  • IKEA
  • JB Hi Fi
  • Kmart Australia
  • Myer
  • Officeworks
  • Spotlight
  • Supercheap Auto
  • Target
  • The Good Guys
  • Toys ‘R’ Us
  • Woolworths

Tickets to the 2017 Awards Breakfast can be purchased at http://australianretailawards.com.au.

About the eftpos ARA Australian Retail Awards:

First held in the 1970s, the eftpos ARA Australian Retail Awards are the nation’s longest running and most prestigious retail event, recognising and rewarding outstanding retail businesses, innovations, and individuals across all sectors of retail. Relaunched in 2008, the annual 2017 eftpos ARA Australian Retail Awards breakfast will commence on Thursday 3 August at Melbourne’s National Gallery of Victoria.

About the Australian Retailers Association:

Founded in 1903, the Australian Retailers Association (ARA) is the retail industry’s peak representative body representing Australia’s $310 billion sector, which employs more than 1.2 million people. The ARA works to ensure retail success by informing, protecting, advocating, educating and saving money for its 7,500 independent and national retail members throughout Australia. For more information, visit www.retail.org.au or call 1300 368 041.

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TechnologyOne update on the Brisbane City Council LGS contract dispute

TECHNOLOGYONE Ltd (ASX: TNE) has provided an update regarding its dispute with Brisbane City Council (BCC) in relation to the LGS Project Contract (Contract).

As disclosed in TechnologyOne’s ASX statement of 3 May 2017, BCC issued TechnologyOne with a Notice to Show Cause on 2 May 2017 (May Notice to Show Cause).

TechnologyOne provided BCC with its detailed response to this notice on 29 May 2017. On 20 June 2017, BCC informed TechnologyOne that they would not be terminating the Contract on the basis of the May Notice to Show Cause.

On 30 May 2017, TechnologyOne issued BCC with a Notice to Show Cause for failure to pay invoices for Milestones 7 and 8, which is a material breach of the Contract. Payment of $750,000 was received from BCC for these Milestones on 23 June 2017 which has remedied this breach.

On 26 June 2017, BCC issued TechnologyOne with a second Notice to Show Cause (June Notice to Show Cause). The June Notice to Show Cause covers many of the same issues in the May Notice to Show Cause that BCC did not act upon. This Notice also ignores TechnologyOne’s bona fide requests for extensions of time under the Contract due to BCC’s conduct.

TechnologyOne will again vigorously defend its position in its response to this notice.

TechnologyOne has recommended expedited arbitration to resolve issues. BCC has not accepted expedited arbitration which would allow these issues to be resolved and the project put back on track.

TechnologyOne Executive Chairman, Adrian Di Marco said: “Our attempts to resolve this dispute and reach a pragmatic and mutually beneficial arrangement with BCC continue. However, BCC appears to be committed to resolution by way of legal proceedings rather than commercial negotiation.

“As a legal tactic, BCC is now insisting that TechnologyOne configure a system for BCC strictly in accordance with the 2015 Contract that does not meet BCC’s current business requirements. BCC’s business processes have changed since 2015. In October 2016, BCC provided updated business process requirements that expanded the scope of the project. BCC have refused to issue a contract amendment and TechnologyOne is being asked to now configure a system for BCC that does not reflect BCC’s current business processes.

“This demonstrates that BCC is no longer genuinely committed to working with TechnologyOne to deliver this project. BCC is engineering a situation where TechnologyOne is unable to perform against the contract.

“Given these facts, attempted termination of the contract by BCC continues to be the most probable outcome.”

TechnologyOne remains confident of its legal and commercial position under the Contract.

TechnologyOne (ASX:TNE) is Australia’s largest enterprise software company and one of Australia’s top 200 ASX-listed companies, with offices across six countries. 

www.TechnologyOneCorp.com 

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New international day recognises importance of small business

THE Australian Small Business and Family Enterprise Ombudsman, Kate Carnell, has welcomed United Nations recognition of small business as a driver of employment and economic development.

Ms Carnell said June 27 has been designated Micro, Small and Medium-sized Enterprises Day.

A resolution was adopted unanimously at the UN General Assembly in April.

The assembly noted that more than 95 per cent of enterprises in the world are micro, small and medium-sized and they account for about 60 per cent of international private sector employment.

In Australia, Ms Carnell said small businesses employ almost half of all workers and create a substantial proportion of new jobs.

“Small business contribution to the Australian economy is higher than the OECD average,” she said.

“According to the OECD, small businesses account for 44 percent of employment in Australia and we rank eighth out of 32 OECD countries on this measure.

“The number of small businesses which are exporting continues to increase.

“The tax contribution of small and medium enterprises is also significant and growing faster than big business.”

Ms Carnell has urged everyone to reflect on the importance of small business and make a gesture to show their support for the sector.

“If you’re buying goods or services on Tuesday, June 27, think about small business and if you can support one with your purchase, please do,” she said.

“Just about everybody knows somebody in small business. A word of thanks or acknowledgement to your local hairdresser, coffee shop or pharmacist would be warmly welcomed.”

Ms Carnell said she hopes the international day will become more widely recognised.

“It’s the first year, and I sincerely hope that governments, business organisations and communities will get behind it,” she said.

 

AT A GLANCE:

  •  2,116,708 small businesses at June 2016*
  • employing more than 4.7 million people (44 per cent of total employment at June 2016)
  • small business accounts for 35 per cent of Australia’s industry contribution to economic activity (as at 2015–16)
  • in 2013-14 there were 19,965 small business exporters, representing 44% of all business exporters, up from 38% in 2008-09
  •  in 2012-13, small and medium enterprises accounted for 35% of company tax revenue, up from 32% in 2010-11.

* (based on ABS definition of 0-19 employees).

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