Introduction
EPAP Categories
Formal Agreements
Conditions
of Panel Agreement
Engagement Process
Letter of Acceptance
Engagement
by Defence Contractors
The Terms of Engagement
Performance
Reporting
1. The Department of Defence has developed a suite of standard
form General Conditions of Contract for use by the Department
when contracting for the construction and maintenance of Defence
Facilities.
2. This Instruction has been prepared to assist in the use and
proper completion of contract documentation for the Estate Planning
and Acquisition Panel (EPAP) and also to give some assistance
in establishing effective administrative and supervisory procedures
in respect of this form of contract.
3.
The Instruction consists of the following components:
(a)
Section 1 - this introduction;
(b) Section 2 - the
terms of the panel agreement;
(c) Section 3 - the
process for engagement of consultants for projects, including
letters;
(d) Section 4 - the
terms of engagement; and
(e) Section 5 - the
project management services that may be required from the Consultant.
4. The Instruction is not intended to act as a substitute for a
detailed understanding of the EPAP, but rather has been prepared
to assist in understanding how the contract is to be completed
and used.
5. If this Instruction is supplied to or used by persons not employed
by the Department, they should obtain their own advice in relation
to any matters dealt with in it. The Department will accept
no responsibility towards such persons for the views expressed
in this Instruction, it being provided solely to assist in understanding
the Estate Planning and Acquisition Panel.
6. The EPAP consists of pre-qualified consultants
appointed to undertake specific tasks in, one or more, of four
discrete sub-panels which provide the following services:
NB Membership of
one sub-panel does not necessarily mean that a Consultant is
prequalified to undertake tasks in another discipline.
7.
The Formal Agreement is the document which was executed by the
contracting parties and formally constitutes the contract between
them. This has been negotiated between the Panel Members and
the Infrastructure Division and is not subject to change unless
agreed to by the Panel Manager (currently Director Business
Processes).
8.
Two copies of the Agreement were executed at the time of acceptance
of the tender. Upon execution by the Department, one copy was
forwarded to the Consultant and the other retained by the Department.
9.
The contract documents comprise a series of documents, which
describe in detail the work to be performed under the contract,
define the rights and obligations of the contracting parties
and together constitute the panel agreement between the Department
and the Consultant.
10. The Conditions of the Panel Agreement provide the broad contractual
framework for the supervision and administration of the contract
and define the general legal relationship between the contracting
parties, including the rights and obligations of each party.
11.
The Annexures to the Conditions of Panel Agreement are:
- Schedule of Rates – for
Commercial-in Confidence purposes these are not promulgated
in the Infrastructure Manual but are available on request
from the Business Processes Directorate.
- Price Revision Formula
- Performance Monitoring Guidelines
– these Guidelines are currently under review.
- Undertaking of Compliance
With Government Industrial Relations Policy – the original
compliance certificate for each company is held by the Business
Processes Directorate.
12.
The Conditions of the Panel Agreement are not to be amended,
except with the authority of the Head of the Infrastructure
Division.
13.
As and when the services to be performed by a Consultant are
required, the engagement process set out in Section 3 is to
be invoked. Depending upon the value of the services proposed,
this may be by way of competitive bid or there may be sole source
arrangements. For tasks estimated to cost in excess of $50,000,
an abbreviated shortlisting process should normally be used
to determine which members of the panel should be asked to provide
proposals.
14.
However, if it is considered that special circumstances exist,
which would enable Defence to obtain value for money without
using a shortlisting process, a proposal from one member of
the panel only may be sought notwithstanding that the task is
estimated to cost in excess of $50,000. Ordinarily, such special
circumstances will only exist where the relevant member of the
panel has specific experience or expertise relevant to the task
(whether as a result of having performed services on an earlier
stage of the relevant project or otherwise).
15.
The engagement process involves sending a letter, requesting
a proposal, to the Consultant. The Consultant will then provide
a proposal, which will then be evaluated. The Consultant may
then be informed (without Defence accepting, or being taken
to have accepted, the proposal) that Defence will negotiate
certain or all aspects of the Consultant’s proposal. If
the original or revised proposal is accepted, then a letter
of acceptance is issued.
16.
The Letter of Acceptance is the letter from the Department to
the Consultant giving notice of acceptance of tender. The letter,
together with the other documents comprising the contract, evidences
the contract. On issue of the letter of acceptance a contract
will then be deemed to be formed between the Department of Defence
and Consultant on the terms of the letters and the terms of
engagement set out in Section 4.
17.
Clause 2.6 of the Conditions of Panel Agreement, provide for
Defence, from time to time requiring the Panel Members to be
engaged directly by Defence Contractors rather than by Defence.
In that event, the Consultant is required to enter into a standing
offer arrangement with the relevant Defence Contractor on terms
similar to the Panel Agreement. This is subject only to such
amendments as may be required to take account of the fact that
it will be a Defence Contractor, and not Defence, who will be
the party engaging the Consultant.
18.
The Terms of Engagement are detailed at Section 4 and address:
- the Role of the Consultant,
- Variations,
- Payment for Services,
- Intellectual Property/Documents,
- General Aspects, and
- a Glossary of Terms.
Performance
Reporting
19.
Whether a Consultant continues to receive requests for proposals
and engagements will substantially depend upon its performance.
For this reason, there are significant provisions relating to
performance measures and reporting processes. Components of
the performance framework are as follows:
(a) Performance
Indicators. The performance indicators provide an insight
into Defence expectations of panel members and a basis from
which to measure whether that expected level of service
is delivered (taking into account matters beyond the panel
member’s control). A panel member’s ability to
perform, or to adjust the level of its performance to meet
expectations will significantly influence future work placements;
(b) Reporting.
As part of the communication process, reporting by firms
to the EPAP Manager on the tasks which they undertake as
panel members, and to the project area on specific task
issues provides visibility of the firm’s progress as
a panel member; and
(c) Feedback.
Project areas and the EPAP Manager have a role in developing
and maintaining the relationship with members of the panel.
Among the mechanisms which can be employed, feedback on
performance is an integral part of the management and development
of the panel.
11.
At the conclusion of each engagement, the project area which
engaged the panel member is to measure the consultant’s
performance against the specific performance criteria for each
task. Where issues on performance arise during the course of
an engagement, the EPAP Manager and the Consultant’s Representative
will work together to address the concerns.
12.
Currently a reporting tool (Defence
Company Scorecard) is being trialled for possible use to
assist in this process.
13.
The Consultant will be required to provide progress reports
to the EPAP Manager on a quarterly basis. These reports will
be used to monitor the overall balance of work within the panel,
the level of competition and the kind of task each panel member
is being engaged to perform.
