List of recommendations

Recommendation 1

7.12The committee recommends that PwC be open and honest with the Australian Parliament and people, and with the international community, by promptly publishing accurate and detailed information about the involvement of PwC partners and personnel (including names and positions) in the breach of confidential government information.

Recommendation 2

7.19The committee recommends that the Department of Finance update the Contract Management Guide to require that Australian Government contracts include a clause that states service providers have a duty to act in the public interest when delivering work for the Australian Government.

Recommendation 3

7.28The committee recommends that the Department of Finance improve the training of officials undertaking procurement to ensure that the Australian Public Service is adequately equipped to ensure that value for money is obtained in circumstances where it is deemed necessary to engage consultants.

Recommendation 4

7.33The committee recommends that the transfer of knowledge from the consultant to the Australian Public Service be factored into the design, management and evaluation of contracts.

Recommendation 5

7.38The committee recommends that the Department of Finance amend the Supplier Code of Conduct to include a requirement for service providers to:

act in the public interest; and

incorporate elements from the professional standard APES 110 that align with public sector values.

The Department of Finance should also publish guidance to illustrate examples of conduct that are consistent with these values.

Recommendation 6

7.42The committee recommends that the Department of Finance review its guidance on conflicts of interest and provide a clear and consistent definition of what constitutes a conflict of interest, a conflict-of-interest breach, and expectations around the management of conflicts of interest. The guidance should also emphasise that active management of conflicts of interest must be an element of APS project management of the contract.

Recommendation 7

7.44The committee recommends that the Department of Finance develop a central register for conflicts of interest breaches for use by government entities.

Recommendation 8

7.46The committee recommends that the Department of Finance improve the useability of AusTender by including:

detailed, consistent and meaningful descriptions of contracts;

clarity on the nature of contract extensions including links to the original contract notification; and

information on any concerns raised in relation to the service provider.

Recommendation 9

7.60The committee recommends that the government commissions the Australian Law Reform Commission, or other appropriate body, to undertake a review of the legislative frameworks and structures of partnerships in Australia with particular focus on partnerships in excess of 100 partners. The review should make recommendations to provide for appropriate regulatory governance and oversight of structures of this scale.

Recommendation 10

7.64The committee recommends that the Australian government:

require those organisations that operate professional standards as self-regulatory regimes, to report annually on the operation of those standards to the Joint Standing Committee on Corporations and Financial Services; and

require these same organisations to appear before that committee to provide oversight on the operation of the relevant standard.

The committee recognises that the Commonwealth government may need to work with state and territory governments to implement this recommendation.

Recommendation 11

7.71The committee recommends that the Parliament legislate to establish a Joint Standing Committee to review and approve consultancy and services contracts with provisions and thresholds similar to those in the Public Works Act 1969 but appropriately adjusted to suit the requirements of providing oversight for this significant element of government spending.

Recommendation 12

7.72The committee recommends that the Senate pass the following order:

That:

there be laid on the table, by the Minster for Finance, biannual statements on expenditure on consultancy contracts which provide for consideration to the value of $2million or more, by all Australian Public Service departments and agencies;

the statements are due not later than the tenth day after the end of the preceding six-month period commencing 1 January and 1 July;

each report is to include, in relation to each contract, details of the:

-dollar value;

-subject matter;

-duration;

-contracting government agency;

-firm or entity providing the work;

-an explanation of what the contract is expected to deliver/purpose of the contract;

-any changes or extensions; and

-any matters of probity or conflict of interest that have arisen in the conduct of the work.

each report is to include the total amount of all current consultancy contracts in each agency or department.

The order is of continuing effect until the Senate Finance and Public Administration References Committee has reported to the Senate that Recommendation 8 and 11 of this report have been implemented.