[Peetwo]

Update: JCPAA OneSKY (H&H) Inquiry -
Reference JCPAA webpage:

Commonwealth Procurement—Inquiry based on Auditor-General’s reports 1, 13 and 16 (2016-17)

The Joint Committee of Public Accounts and Audit is conducting an inquiry based on any items, matters or circumstances connected with the following Auditor-General reports:    
 

• No. 1 (2016-17) Procurement of the International Centre for Complex Project Management to Assist on the OneSKY Australia Program
  
• No. 13 (2016-17) Delivery of Health Services in Onshore Immigration Detention
  
• No. 16 (2016-17) Offshore Processing Centres in Nauru and Papua New Guinea: Procurement of Garrison Support and Welfare Services
  

Please note that the ANAO is conducting a 'two-stage audit' (refer Auditor Report No. 1, p.7) regarding OneSKY:

• Stage 1: Procurement of the International Centre for Complex Project Management to Assist on the OneSKY Australia Program, Audit Report No. 1 (2016-17)
  
• Stage 2: Audit currently in progress on 'Conduct of the OneSKY Tender' (due to report May 2017).
  

Hearing 25 November 2016:

& link for Harfwit's bollocks submission:

1 Airservices Australia (PDF 239 KB)

Update 16/11/16: The following is a list of ANAO audit QON, from the RRAT Senate Supplementary Estimates QON index released yesterday.
ASA - QON 155 to 159:

Senator STERLE: And you may be able to refer to it in answer to some of my questions. So, Mr Logan, I will come back to you: how often is very often, or quite often?

Mr Logan: Sorry, if I said, 'very often', that was not my answer. We review them from time to time. I have only been in the role for the last 12 to 18 months. In that time I have taken on the ANAO recommendations and have sought—as Mr Harfield is handing it through—to bolster the practices and procedures.

Senator STERLE: Mr Logan, it is not assisting me, so, if you do not know, say you do not know—that is quite all right.

Mr Logan: So I do not know how often in prior times.

Senator STERLE: Okay, so we have changed from 'quite often' or 'often' to 'do not know'—that is fine. Thank you. If you do not know, maybe someone else might—or Mr Harfield, who has been around a long time too. Can you tell us the last time you reviewed your procedures and procurement policies prior to this committee writing to the ANAO to seek an audit of Airservices?

Mr Logan: I do not know; I can find out.

Senator STERLE: Mr Harfield?

Mr Harfield: I do not know.

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Senator STERLE: Did Thales meet all 3,000 requirements under the tender evaluation process?

Mr Harfield: As I said just previously, no tenderer was fully compliant. Part of the negotiation period is to make sure that we establish all of those requirements.

Senator STERLE: Of the 3,000, how many short were Thales?

Mr Harfield: I cannot tell you off the top of my head. I can take that on notice.

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CHAIR: We will get to the Allens report, because there was a less than favourable reference made to it in terms of whether those involved were provided with all of the relevant information needed to allow them to properly make recommendations and findings. Thank you for all that, but it did not address the burden of my question. Door to door, house by house, what current members of the board were there when this was allowed to happen—by name?

Mr Harfield: The engagement of these two individuals in their capacity contracting through ICCPM first occurred in 2012, so I would have to have a look at who the board was at that particular stage in 2012.

CHAIR: You have no independent—

Mr Harfield: I am just trying to work through it. The chair of the board depends on the timing. The chair changed from David Forsyth to Angus Houston. Angus Houston was a member of the board. Dr Warren Mundy was the deputy chair. Ms Annette Kimmitt at some stage during 2012 came on board with Mr Paul Lucas, Ms Sam Betzien and Mr Tony Mathews. I would have to recollect to see who was there in 2012. There were some changes on the board during 2012.

CHAIR: I am loath to have you take things on notice.

Mr Harfield: We can look up annual reports—

CHAIR: Would you take that on notice? I am interested in the identity of board members at the time that these appointments were ratified by the board, acknowledged by the board and when the board was briefed about them and those who remain on the board today. So you understand the clarification of my question?

Mr Harfield: Yes, I do.

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Senator STERLE: Sure. So in 2013, without any approach to the market to identify other possible strategic partners, Airservices and ICCPM entered into a strategic partnership for the duration of the OneSKY program—correct?

Mr Harfield: That is correct.

Senator STERLE: For which there was no business case prepared—is that correct?

Mr Harfield: Correct.

Senator STERLE: No performance indicators were established to enable monitoring and evaluation?

Mr Harfield: That is my understanding.

Senator STERLE: No documentation of the nature of services Airservices intended to obtain from or through ICCPM?

Mr Harfield: There was an intent. Whether it is documented I am unaware.

Senator STERLE: So you will take that on notice?

Mr Harfield: Yes, I will take that one on notice.

ASA - QON 162 to 165:

Senator STERLE: You cannot be any more honest than that. The extensive use of ICCPM to assist with the delivery of OneSKY by Airservices was highlighted by the ANAO, and I will quote them:

Since 2012, there have been 42 engagements of ICCPM employees and sub-contractors through 18 procurement processes. The engagements were given effect through six contracts, 10 contract variations and four uses of an on-call services schedule under one of the contracts. Under the various contractual arrangements, Airservices agreed to pay ICCPM total fees of more than $9 million.

Is that figure correct?

Mr Harfield: Yes.

Senator STERLE: Who were the subcontractors?

Mr Harfield: I would have to take that on notice to give you the full list, but there were a range of services used from a variety of different people: Harry Bradford and Keyholder Services. It included Andrew Pike, Deborah Hein, Stephen Hein and a range of other employees to do other services. We could reply to that on notice.

Senator STERLE: Yes, sure. Take that on notice. Off the top of your head, would you know how many contractors we are talking about?

Mr Harfield: Off the top of my head, no.

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Senator STERLE: Okay, that is fine. Can you elaborate for the committee on what an on-call services schedule is.

Mr Harfield: I am not sure what was written down in the on-call schedule of service, but it was that, if we needed a particular capability, we would go to ICCPM and they would provide it. It is sort of like a labour hire company. You go and say, 'Can I have this particular capability,' and you would bring that—

Senator STERLE: Sorry, I get an echo.

Mr Harfield: It is like a temp hire company or an engineering hiring company. You would go along and say, 'We need a capability for a scheduler', or, 'We need a capability for a planner,' and then they would provide that particular capability.

Senator STERLE: So ICCPM would go off and find it.

Mr Harfield: That is correct.

Senator STERLE: Okay, and you will be able to provide who they are.

Mr Harfield: Correct.

Senator STERLE: And the cost.

Mr Harfield: Yes.

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Senator STERLE: You cannot add any more to that. Furthermore, has Airservices ever attempted to negotiate rates of services charged by ICCPM?

Mr Harfield: Yes. There have been a couple of occasions where that has occurred.

Senator STERLE: How did you go?

Mr Harfield: We had some reductions because of the longer term nature.

Senator STERLE: When you say 'some'—you might want to take this on record, Mr Harfield—can you give us examples of what they were, how much for and how many times?

Mr Harfield: I can give you the whole thing on notice. Rather than just speculating on getting a figure right, we can provide that on notice. That is no problem.

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Senator STERLE: It was between 2012-13 and December 2015. Airservices paid ICCPM a total of $5.8 million in consultancy fees and expenses. Between 2012-13 and 2014-15, the payments from Airservices amounted to 75 per cent of the revenue reported by ICCPM, as derived from consulting work. What consultancy work was completed and what expenses were made using the $5.8 million?

Mr Harfield: That was the contract capability we just discussed beforehand. So it is the Harry Bradfords doing lead negotiation, and the Andrew Pykes and those sorts of people. So it is not extra consultancies on top of that; it is those fees that paid for all those people that we just mentioned previously. I am going to provide, on notice, the work and their costs.

Senator STERLE: Of the contractors and employees?

Mr Harfield: Yes, contracted—brought in—for that. But they will be put in a consultancy bucket.

Senator STERLE: So the $5.8 million is part of the work being done by the contractors?

Mr Harfield: Yes. That is that amount.

Senator STERLE:And you are going to give us some examples and break it down. That is fine. If 75 per cent of the revenue of ICCPM in those years mentioned came from Airservices, where did the remaining 25 per cent come from?

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