Comments from defence industry members are presently being sought on the Defence Materiel Organisation (DMO) Procurement Improvement Program (PIP) tendering and contracting templates that have been released for stakeholder consultation.
With a deadline of Monday, 11 December 2006 for industry feedback, the release of the tendering and contracting templates follows extensive internal review by DMO’s Corporate Review Group, led by DMO Deputy Chief Executive Officer Kim Gillis.
DMO General Counsel, Ms Gillian Marks, said the tendering and contracting templates retain a focus on a commercial customer-supplier arrangement.
She said the procurement policy guidance will be finalised and released once templates are completed, following stakeholder consultation.
‘The PIP process has been extensive and has been conducted with the knowledge that an increasing procurement tempo requires more sophisticated support with enabling documents and processes,’ Ms Marks said.
‘A primary focus of the PIP has been the effect delay can have in procurement, and subsequent impacts detrimental to DMO and industry, Defence readiness and damage to DMO and industry reputations,’ she said.
The PIP aims to implement a more commercially focussed procurement model for DMO, reflecting global sourcing practices and providing flexibility and durability in a more controlled framework.
‘The objective is to significantly enhance the effectiveness of DMO procurement and contracts for both Defence and industry,’ Ms Marks said.
‘The contemporary commercial forms that we are seeking industry comment on incorporate best global commercial practices and reflect the global nature of Defence business,’ she said.
Industry stakeholders have been asked to comment on a single Request for Tender document and associated attachments and annexes, as well as acquisition and sustainment contracts.
The exposure draft documents for industry comment also have been keyed to the recently released DMO Acquisition Categorisation Framework (ACAT). The framework provides a consistent methodology for categorising procurement projects. For example, projects carrying high risk and complexity will be categorised at ACAT I and II levels, while medium risk/complexity projects sit at ACAT III, and low risk/complexity projects are categorised ACAT IV.
Ms Marks advised that the documents released for industry consultation have been shortened and streamlined since her presentations at the Defence + Industry Conference 2006 in June. She said industry comment is sought on strategic agreements with contractors that are involved in repeat-business. The emphasis here is on streamlining the tendering process to reduce time and increase efficiency.
To obtain thhe PIP templates and associated information visit http://www.defence.gov.au/dmo/gc/pip/index.cfm.
Comments can be provided on an associated exposure draft comments form, and forwarded by email to dmo.pip@defence.gov.au by Monday, 11 December 2006.
As part of the industry consultation process, DMO is presently conducting a series of detailed presentations in Canberra, Sydney, Melbourne, Brisbane, Adelaide, Perth, Hobart and Darwin.
