Procurement Practices Review

Information Management and Technology (IMT) branch has responsibility over Department of State Development and Department of Infrastructure, Local Government and Planning for developing, delivering and maintaining technology solutions for its clients, as well as ensuring that information is appropriately managed. Based on concerns with how IMT branch operates to procure goods and services in the context of the department’s centre-led model, Charles Kendall Australia (CKA) was engaged to thoroughly review several aspects of IMT branch’s procurement practices.

The Challenge

Within a tight schedule, CKA was required to undertake a comprehensive review of IMT branch procurement practices, particularly with regard to best practice, as well as compliance with departmental policy and procedures. Throughout the engagement, it was necessary for investigations to recognise that IMT branch is comprised of five individual teams, each with unique characteristics and demands.

Our Approach

To undertake the review, CKA organised an array of interviews, conducted records audits, and reviewed policy and procedure documentation at branch, departmental, and whole-of-government levels. The review focused on several key areas of interest such as:

Given the context of a coordinated, whole-of-government approach to procurement of information and communications technologies, the review also reflected on applicable governance regimes relevant to the areas of interest listed.

Additionally, as part of the engagement, CKA also reviewed a nominated high value contract to highlight risks and issues and offer recommendations accordingly.

Outcome

Procurement Capability Review

Redland City Council (RCC), a local government authority in south-east Queensland, engaged Charles Kendall Australia (CKA) to assist them in moving from prescribed, spend-based procurement activities to a strategic model. CKA undertook a review of RCC's procurement functions and designed strategies to improve efficiency, capability and alignment with corporate objectives.

The Challenge

Our Approach

Outcomes

International Procurement Agent

The Government of Nauru engaged Charles Kendall (CK) as its international procurement agent in 2013 to aid in improving its supply chain and goods provision services over the course of five years. Since undertaking these duties, CK has transformed the government's procurement standards, saving around $4 million (12% of total spend) annually and significantly increasing reliability, mitigating risk and improving probity across the entire organisation.

The Challenge

Outcomes

CK established a Brisbane buying office to provide end-to-end strategic procurement support, with responsibilities including:

Outcomes

Procurement Value Management Project

The Department of Transport and Main Roads (TMR) engaged Charles Kendall Australia (CKA) to embed Procurement Value Management (PVM) into the organisation and deliver savings. CKA delivered the PVM project on time and within budget, providing a consistent plan and structure to achieve estimated procurement savings of $140 million.

The Challenge

Our Approach

The team faced a number of challenges including absence of consistent historical records, decentralised procurement activity, and a broad spectrum of stakeholders with conflicting priorities.

In order to fulfil TMRs requirements, CKA:

Outcomes

Framework Contracting Project

In 2011, the Millennium Challenge Corporation (MCC) agreed to provide funding to the Government of Indonesia (GoI) for various projects, including the Procurement Modernisation Project (PMP) that ran from 2012 to 2018; with the objective of reducing poverty through economic growth. This project was carried out through the Millennium Challenge Account Indonesia and the National Public Procurement agency (LKPP) with the intention to improve the procurement function in Indonesia through three key projects – one of which was the Framework Contracting Project. Charles Kendall Australia (CKA) was engaged to provide specialist advisory and project management services to achieve the objectives of PMP and sustain long term success.

The Challenge

Our Approach

Outcome

Contract Management Review

The Department of Transport and Main Roads (TMR) engaged Charles Kendall Australia to review existing contracts within the Passenger Transport (PT) Division to improve and build its procurement and contract management capabilities while minimising exposure to the risks involved in third-party transport service contracts.

The Challenge

Our Approach

Outcome

Procurement Policy Alignment

Queensland Treasury (QT) engaged Charles Kendall Australia (CKA) to update their procurement policy and procedure documentation in order to comply to the Queensland Procurement Policy 2017 (QPP 2017).

The Challenge

The Queensland Government established QPP 2017 and required all government agencies to comply to the policy by 1 March 2018.
A number of new requirements set out in QPP 2017, such as local benefits test, have a direct impact to how procurement has to be conducted by Government employees.
QT’s procurement policy and procedure documents were lengthy, difficult to understand and lacked practical guidance material to facilitate the delivery of procurement by QT employees.

Our Approach

Outcome

Procurement Process Review

At the time of engagement, the procurement function within Department of State Development (DSD) provided procurement services to within DSD, as well as to Department of Local Government, Infrastructure and Planning including subordinate groups and entities, such as Economic Development Queensland (EDQ). A machinery of government change, throughout 2012 to 2015, led to ambiguity of responsibilities and, therefore, concern with respect to the efficiency and effectiveness of EDQ’s procurement practices.

The Challenge

DSD engaged Charles Kendall Australia (CKA) to undertake a comprehensive review of procurement practices, within EDQ, to ascertain any extent of non-compliance and devise possible means for improvement to efficiency and effectiveness.

Our Approach

The review process was conducted in a way that showed sympathy for the historical approaches to procurement, whilst challenging the existing procurement practices in order to test where value could be added. It was also recognised as imperative that the review carefully consider competing interests and viewpoints so as to appropriately consider all factors prior to recommendations being provided.

CKA conducted various interviews and undertook an audit of procurement records in order to form a view of how current procurement processes compare to what would be considered best practice. The review focused on the following areas of interest:

Outcomes

The comprehensive review led to 21 recommendations across the interest areas. Recommendations were prioritised and prospective benefits for each were articulated. Fundamentally, the final report provided senior management with an objective, reliable basis for continuous improvement.

Human Resource Development Project

In 2011, the Millennium Challenge Corporation agreed to provide funding to the Government of Indonesia (GoI) for various projects, including the Procurement Modernisation Project (PMP) that ran from 2012 to 2018 with the objective of reducing poverty through economic growth. This project was carried out through Millennium Challenge Account Indonesia (MCA-I) and the National Public Procurement agency (LKPP) with the intention to improve the procurement function in Indonesia, through three key projects, one of which was the Human Resource Development (HRD) Project. Charles Kendall Australia was engaged to provide specialist advisory and project management services to achieve the objectives of PMP and sustain long term success.

The Challenge

The objective of the HRD project was to increase Indonesia’s procurement capacity and professionalisation across the GoI. The following challenges were identified:

Our Approach

Outcome