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:

• administration;
• tools and templates;
• probity considerations;
• roles and responsibilities; and
• forward planning.

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

• The review of procurement practices led to 24 recommended improvements addressing all the various aspects of procurement operations. The final report logically prioritised recommendations and provided guidance for implementation.
• The engagement was completed ahead of schedule and to the satisfaction of the client.

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

• Determine RCC’s procurement capability and maturity level.
• Design strategies to move towards a strategic procurement model.
• Identify opportunities to reduce costs and increase efficiency.
• Mitigate supply risks within RCC’s procurement and contract management function.

Our Approach

• Spend analysis to identify RCC’s management of expenditure and highlight cost-saving opportunities.
• Capability analysis to determine procurement structure, people and processes.
• Governance analysis to establish the appropriateness of existing structure and controls.

Outcomes

• Identified costs savings of approximately AUD$1M through better aggregation of spend and increasing the level of spend under management.
• Developed a sustainable procurement model including corporate social responsibility (e.g. quadruple bottom line, social procurement, etc.).
• Delivered an improvement plan detailing costs/benefits, associated actions and timeframes for recommendations including procurement structure, strategy, policies and procedures, roles and responsibilities, leadership and performance management, and systems and monitoring.

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

• The initial activity was to conduct a gap analysis of the current policy and procedure against QPP 2017.
• The gap analysis identified areas of partial and/or non-compliance which were broken down into three categories as follows: - areas requiring significant updates or development; - areas required to be partly updated; and - areas requiring minor updates.
• The gap analysis provided a detailed list of the proposed amendments which, following acceptance from Treasury, were implemented by CKA within a short timeframe.
  As part of the review of existing procurement documentation, CKA made recommendations for improvements which included the alignment and improvement of existing guidance materials as well as addition of new guidance materials to support Treasury employees in conducting procurement activities in line with the new QPP 2017 requirements.
• As a result, CKA developed the following suite of sourcing guideline documents in alignment QPP2017 and the updated policy and procedure: - Procurement process workflow (plan, source and manage). - Procurement process visual infographic. - ICT procurement visual infographic. - Checklist for conducting a tender. - Procurement plan and significant procurement plan template redesign. - Guidance for local benefits test application in procurement. - Procurement performance management and reporting framework guideline.

Outcome

• The updated policy and procedure were reviewed by Treasury’s external auditor who advised that the updated documentation was compliant with the QPP 2017 and can be implemented within Treasury.
• The sourcing guideline documents were delivered to a high-quality standard with highly visual web-ready documents to improve readability and allow employees to conduct procurement as per the Treasury policy, procedures and overarching QPP 2017.

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:

• forms and templates
• procedures and administration
• training
• systems
• procurement delivery model.

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.

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:

• Increase the capacity and professionalisation of the procurement function through the training and mentoring of 500 full time Procurement Service Units (PSU), 450 non-PSU staff (other actors who play a role in the procurement process), with the inclusion of 50 auditors from within the audit agency in GoI.
• Coordinate effective delivery of training and mentoring across the vast geography of Indonesia.

Our Approach

• Undertake a needs assessment to determine level of procurement competency through the use of surveys, meetings and stakeholder engagement.
• Based on the needs assessment, support the development and selection of suitable basic, intermediate and advanced training courses, tailored to the needs of the staff.
• Strategically choose PSUs and non-PSUs, through criteria which includes geographic location.
• Coordinate research to identify best methods of training and mentoring.
• Recruit qualified trainers and mentors using MCA-I approved recruitment policies and processes to effectively deliver training and mentoring.
• Identify sustainability strengthening activities to provide a way to continuously promote the value of the HRD project and build on to, and expand the network of procurement professionals.

Outcome

• Completed an extensive needs assessment of procurement professionals across Indonesia.
• Managed the development of a full training curriculum containing syllabi, manuals and facilitator’s manuals (based on globally benchmarked competencies).
• Effectively delivered training and mentoring using a competency-based training and assessment approach, and an engaging mentoring plan.
• Successfully trained and mentored staff above project targets.
• Identified and managed the development of sustainability strengthening activities such as materials for a knowledge centre and a procurement industry internet forum.