Defence: Integrated Distribution System

Senator Chris Evans asked the Minister for Defence, upon notice, on 21 March 2002:

With reference to the Defence Integrated Distribution System (DIDS):

1. (a) When was the original tender for DIDS put out; and
   (b) when did it close.
2. Can a copy of the original tender specifications be provided.
3. (a) How many tenders were submitted in the original round; and
   (b) which organisations submitted tenders.
4. When was the decision made to stop the original tender round.
5. Who made the decision to stop the original round and on what grounds.
6. (a) At what stage was the tender process when it was stopped; and
   (b) had a decision been made; and
   (c) had tenders been short-listed.
7. When did the second tender round begin.
8. (a) What changes, if any, were made to the original tender specifications; and
   (b) can a copy of the specifications for the second tender round be provided.
9. Which organisations were involved in the second tender round.
10. (a) Where is the second tender round up to;
    and (b) have any tenders been eliminated from the bidding process.
11. When is the second tender round due to be completed.
12. How much of the compensation offered to bidders has been allocated.
13. What is the estimated or approximate value of the project.

Senator Hill - The answer to the honourable senator's question is as follows:

1. 1. The original tender for DIDS was released on 30 November 1999.
   2. The closing date for the original tender was 1 March 2000.
2. A copy of the original tender specifications can be provided but it is contained in six A4 binders.
3. 1. The original tender had a total of six responses.
   2. The following organisations submitted tenders:
      1. NexGen Logistics Pty Ltd (a joint venture company between BAE Systems, Honeywell and Caterpillar Logistic Services);
      2. Integrated Defence Logistics Pty Ltd (a joint venture company between Transfield Pty Ltd and TNT Australia Pty Ltd);
      3. Defence In House Option;
      4. ADI-Fox (a joint venture company between ADI Limited and Linfox Transport Pty Ltd);
      5. Force Logistics (a joint venture between Mayne Nickless Ltd (MPG Logistics) and Serco Australia Pty Ltd); and
      6. TenixToll Defence Logistics (a joint venture company between Tenix Pty Ltd and Toll Holdings Ltd).
4. The original tender round was stopped on or about the 9th July 2001.
5. The original round was stopped by the Government due to the Request For Tender (RFT) not providing sufficient opportunity to allow tenderers to offer innovative solutions in accordance with commercial best practice, nor did it sufficiently recognise the importance of maintaining jobs in regional and rural Australia.
6. 1. Defence evaluation of the tender was complete.
   2. A recommendation on the tender evaluation had been made to the Government. The Government had not made a decision.
   3. An order of merit had been provided as part of the tender evaluation report.
7. The second tender round began on 9 July 2001.
8. 1. The revised tender specifications required tenderers to meet specified employment levels in designated regional Australian sites; changes had been made to the tender document to reduce the number of Defence sites required to be used by the DIDS operator. Further changes had been made to the RFT to simplify it and reduce prescription.
   2. A copy of the revised tender specifications can be provided but like the original it is contained in six A4 binders.
9. The same organisations are involved in the second tender round as in the first tender.
10. 1. The second tender closes on 15 April 2002.
    2. No tenderers have been eliminated from the process.
11. An announcement of a preferred tenderer is expected to be made by the end of August 2002.
12. Compensation has not been offered to tenderers. The Commonwealth has made an offer to pay costs associated with the second tender up to a limit of $1 million per consortium.
13. The original DIDS baseline cost is approximately $1.059 billion.

close