Defence engages consultants where it lacks specialist expertise or when independent research and assessment are required. The process for selecting consultants is consistent with Defence procurement policies and the Commonwealth Procurement Rules.
In 2013–14, Defence (including the Defence Materiel Organisation) entered into 487 new consultancy contracts (359 with a value greater than $10,000) involving total actual expenditure of $33.3 million (including GST). In addition, 271 consultancy contracts remained active, involving total actual expenditure of $10.6 million (including GST).
This annual report contains information about actual expenditure on contracts for consultancies. Information on the value of individual contracts and consultancies is available on the AusTender website. Table B.1 records total expenditure in-year for consulting contracts rather than the full value of the contract.
|
2011–12 |
2012–13 |
2013–14 |
---|---|---|---|
Defence |
61.5 |
37.8 |
38.3 |
DMO |
5.1 |
2.9 |
5.6 |
Group |
Number of contracts let |
Total contract value ($) |
---|---|---|
Office of the Secretary and CDF |
0 |
0 |
Vice Chief of the Defence Force Group |
1 |
34,640 |
Joint Operations Command |
2 |
94,244 |
Navy |
1 |
142,808 |
Army |
5 |
1,186,798 |
Air Force |
1 |
528,730 |
Capability Development Group |
0 |
0 |
Chief Finance Officer Group |
3 |
595,500 |
Chief Information Officer Group |
15 |
2,161,215 |
Defence Science and Technology Organisation |
2 |
126,170 |
Defence Support and Reform Group |
270 |
33,412,798 |
Intelligence and Security Group |
15 |
2,592,375 |
People Strategies and Policy Group |
17 |
1,770,974 |
Defence Materiel Organisation |
27 |
9,226,424 |
Total |
359 |
51,872,676 |
In 2013–14, Defence (including the DMO) reported a total of 173 contracts, standing offers or variations, with a total value of $273.7 million, which were subject to an exemption under the Freedom of Information Act 1982. These exemptions were generally applied under the national security provisions of the Act.
The Defence contracting templates include standard clauses providing for Auditor-General access to contractors’ and major subcontractors’ premises, records and accounts. Defence has identified the following contracts that were exempt from the requirement to provide Auditor-General access, totalling just over $1.9 billion.
Defence utilises the United States Department of Defense’s Foreign Military Sales program, which facilitates sales of US arms, defence equipment, defence services and military training to foreign governments. The standard terms and conditions for Foreign Military Sales do not contain ANAO access provisions.
Group and company |
2013–14 ($) |
Purpose |
---|---|---|
Navy |
||
Egeria Pty Ltd |
201,200 |
Program and project management services in support of Navy information management[1] |
Egeria Pty Ltd |
111,273 |
Information management objective and Navy management diary training[1] |
Egeria Pty Ltd |
116,800 |
Information Management Services Group drive management[1] |
Institution of Engineers Australia |
200,088 |
Memberships[1] |
United Kingdom Hydrographic Office |
295,694 |
Navigation charts[2] |
Randstad Pty Limited |
108,180 |
Business process analyst[1] |
Aquila Marine |
164,455 |
Inflatable sailing boats[1] |
Mr Paul Rizzo |
156,141 |
Chair, Rizzo Reform Implementation Committee[1] |
Total for the Navy |
1,353,831 |
|
Army |
||
Abco Water Systems |
182,985 |
Hire—wastewater treatment plant[3,4] |
United States Department of Defense |
13,386,840 |
Provision of training by the US Army[5] |
Myriad Technologies Pty Ltd |
603,493 |
Specialist engineering support[3,4] |
BAE Systems Australia Limited |
169,403 |
Provision of services to deliver gateway[3,4] |
Cistech Solutions |
824,800 |
Core networking[3,4] |
G.H. Varley Pty Ltd |
3,224,685 |
Mounted SATCOM terminal[3,4] |
M5 Networks Australia Pty Ltd |
3,248,896 |
Research and development[3,4] |
MRB Communications Pty Ltd |
281,728 |
Radios and equipment[3,4] |
Myriad Technologies Pty Ltd |
406,588 |
Specialist engineering support[3,4] |
Myriad Technologies Pty Ltd |
840,864 |
Specialist engineering[3,4] |
Saab Systems Pty Ltd |
471,167 |
Software support services[3,4] |
Elbit Systems of Australia Pty Ltd |
9,250,000 |
Training[3,4] |
Calytrix Technologies Pty Ltd |
990,000 |
Radio desk-top training system[3,4] |
Georgiou Group Pty Ltd |
452,985 |
Construction services[3,4] |
Adelaide Metal Fabrication Pty LTd |
122,452 |
Construction of metal cubes[3,4] |
Rentokil Pest Control (Qld) Pty Ltd |
200,741 |
Bird-proofing[3,4] |
Weymouth Sporting Solutions |
125,300 |
Anti-gravity running machine warranty[3,4] |
Madang Resort and Kalibobo Village |
318,690 |
Accommodation[3,4] |
Boeing Information Space and Defence |
395,975 |
Specialist maintenance training[3,4] |
GATR Technologies Inc. |
299,746 |
Equipment[3,4] |
Total for the Army |
35,797,338 |
|
Vice Chief of the Defence Force Group |
||
Georgiou Group Pty Ltd |
1,483,250 |
Construction of health facilities[1] |
Georgiou Group Pty Ltd |
347,336 |
Construction of health facilities[1] |
Australian Centre for Posttraumatic Mental Health |
262,735 |
Mental health screening[6] |
Oakton Services Pty Ltd |
714,428 |
Project support and reporting[7] |
Total for the Vice Chief of the Defence Force Group |
2,807,749 |
|
Defence Materiel Organisation |
||
Foreign Military Sale |
112,803 |
Technical support services |
Foreign Military Sale |
154,939 |
Component improvement program |
Foreign Military Sale |
205,600 |
Supply and support of climate prediction software |
Foreign Military Sale |
219,356 |
Cryptographic computers |
Foreign Military Sale |
264,158 |
Foreign Liaison Office USAF office administration |
Foreign Military Sale |
441,669 |
Foreign Liaison Officer support |
Foreign Military Sale |
518,617 |
Explosive ordnance |
Foreign Military Sale |
607,054 |
Torpedo repairs |
Foreign Military Sale |
685,635 |
Explosive ordnance |
Foreign Military Sale |
802,292 |
MOVER software |
Foreign Military Sale |
910,885 |
Testing radar warning receiver |
Foreign Military Sale |
949,490 |
Procurement of various munitions for MH-60R Seahawk |
Foreign Military Sale |
993,778 |
Explosive ordnance |
Foreign Military Sale |
1,071,175 |
Specialist system training |
Foreign Military Sale |
1,400,094 |
Training missiles |
Foreign Military Sale |
1,899,413 |
Procurement of high-grade crypto equipment |
Foreign Military Sale |
2,019,515 |
Explosive ordnance |
Foreign Military Sale |
2,190,951 |
Follow-on support for AIM-9M Sidewinder |
Foreign Military Sale |
2,233,640 |
Aircraft support equipment |
Foreign Military Sale |
2,688,095 |
Electronic equipment |
Foreign Military Sale |
3,479,626 |
Repairable items and ground support equipment |
Foreign Military Sale |
3,993,022 |
Aircraft components, parts and accessories |
Foreign Military Sale |
4,331,018 |
Procurement of cryptographic equipment |
Foreign Military Sale |
10,162,257 |
Follow-on support case |
Foreign Military Sale |
10,442,267 |
In-service support services |
Foreign Military Sale |
14,671,796 |
Equipment and support for Standard Missile-2 for Guided Missile Test Set modifications |
Foreign Military Sale |
15,635,480 |
Aircraft spares and components |
Foreign Military Sale |
16,752,300 |
Missile support |
Foreign Military Sale |
16,778,784 |
Spares and support equipment |
Foreign Military Sale |
20,149,920 |
RAN fleet sustainment |
Foreign Military Sale |
22,358,800 |
Technical support services |
Foreign Military Sale |
26,120,125 |
Aircraft software system configuration set |
Foreign Military Sale |
27,342,290 |
Inventory |
Foreign Military Sale |
29,349,438 |
Explosive ordnance |
Foreign Military Sale |
53,221,133 |
Large aircraft infrared countermeasure system |
Foreign Military Sale |
64,130,598 |
Torpedoes |
Foreign Military Sale |
1,519,162,839 |
Aircraft and support |
Total for Defence Materiel Organisation |
1,878,450,852 |
|
Total for Defence |
1,918,409,770 |
|
Notes
During 2013–14, Universal McCann Australia conducted the following advertising campaigns: Planning and placement of campaign advertising for Defence Force recruiting including dissemination and other fees; International Fleet Review; and Naval Heritage Collection. Further information on the advertising campaigns is available at www.defence.gov.au/Publications and in the reports on Australian Government advertising prepared by the Department of Finance. Those reports are available at www.finance.gov.au/advertising/index.html.
Type |
2011–12 ($) |
2012–13 ($) |
2013–14 ($) |
---|---|---|---|
Advertising |
15,471,366 |
11,229,656 |
12,436,522 |
Market research |
1,196,990 |
1,260,844 |
2,189,402 |
Polling |
– |
– |
– |
Direct mail |
– |
11,754 |
22,633 |
Media advertising |
26,491,700 |
21,907,228 |
46,929,604 |
Total |
43,160,056 |
34,409,482 |
61,578,161 |
Group |
2011–12 ($) |
2012–13 ($) |
2013–14 ($) |
---|---|---|---|
Office of the Secretary and CDF |
39,011 |
40,334 |
33,443 |
Navy |
78,372 |
81,836 |
738,163[1] |
Army |
65,411 |
40,969 |
70,044 |
Air Force |
174,617 |
147,617 |
265,158 |
Intelligence and Security Group |
778,748 |
92,640 |
39,185 |
Chief Operating Officer |
80,626 |
– |
108,806 |
Defence Support and Reform Group |
1,222,359 |
458,333 |
128,467 |
Chief Information Officer Group |
373,904 |
315,766 |
323,995 |
Defence People Group |
38,827,678 |
32,933,303 |
59,606,036[2] |
Defence Science and Technology Organisation |
62,618 |
25,985 |
23,068 |
Vice Chief of the Defence Force Group |
917,068 |
228,675 |
204,036 |
Joint Operations Command |
– |
– |
– |
Capability Development Group |
22,251 |
– |
– |
Chief Finance Officer Group |
40,444 |
728[3] |
– |
Defence Materiel Organisation |
476,949 |
44,024 |
37,759 |
Total |
43,160,056 |
34,409,482 |
61,578,161 |
Notes
Details of the organisations paid are provided only for payments of more than $12,400 (including GST).
Group, type and company |
2013–14 ($) |
Purpose |
---|---|---|
Navy |
||
Advertising |
||
Spatchurst Design Associates |
13,710 |
Advertising on banners and panels—Naval Heritage Collection |
Media advertising |
||
Universal McCann Australia |
663,901 |
Media advertising for International Fleet Review campaign and Naval Heritage Collection |
George Patterson Y&R |
33,869 |
Media advertising for International Fleet Review campaign |
Air Force |
||
Advertising |
||
Adcorp Australia Pty Ltd |
103,841 |
Centenary of Military Aviation advertising |
Adcorp Australia Pty Ltd |
45,968 |
Recruitment advertising |
Media advertising |
||
Last Minute Multimedia Pty Ltd |
17,394 |
Royal Australian Air Force Museum advertising |
Intelligence and Security |
||
Advertising |
||
Adcorp Australia Pty Ltd |
18,861 |
Recruitment advertising |
Chief Operating Officer |
||
Advertising |
||
Adcorp Australia Pty Ltd |
108,806 |
Support to the operation of the Honours and Awards Tribunal through advertisement of matters to be considered and recruitment of the Chair and Tribunal members |
Defence Support and Reform Group |
||
Media advertising |
||
Adcorp Australia Pty Ltd |
12,737 |
Range safety warning public notices |
Chief Information Officer |
||
Advertising |
||
Sensis Pty Ltd |
322,081 |
Defence directory listing in White Pages |
Defence People |
||
Advertising |
||
George Patterson Y&R |
4,576,916 |
ADF recruitment advertising |
Young & Rubicom Brands |
2,999,709 |
ADF recruitment advertising |
Havas Worldwide Australia Pty Ltd |
1,765,519 |
ADF recruitment advertising |
Australian Public Service Commission |
89,063 |
APS recruitment |
Market research |
||
GfK Australia Pty Ltd |
665,353 |
Qualitative and quantitative research to maximise ADF recruitment targets |
Open Mind/Hall & Partners |
773,305 |
Qualitative and quantitative research to maximise ADF recruitment targets |
Horizon Research |
582,569 |
Qualitative and quantitative research to maximise ADF recruitment targets |
Media advertising |
||
Universal McCann Australia |
38,444,900 |
Planning and placement of campaign advertising including dissemination and other fees |
Adcorp Australia Pty Ltd |
7,522,105 |
Planning and placement of non-campaign advertising |
Defence Science and Technology Organisation |
||
Advertising |
||
Adcorp Australia Pty Ltd |
14,141 |
Capability and Technology Demonstrator Program |
Vice Chief of the Defence Force Group |
||
Advertising |
||
Adcorp Australia Pty Ltd |
20,518 |
Non-campaign ad placement (Live Firing Range Notices) |
Adcorp Australia Pty Ltd |
15,344 |
Recruitment advertising (civilian) |
Market research |
||
Newspoll |
54,225 |
Employer research to measure the level of awareness among employers of Reserves and Reserve Service |
Newspoll |
99,100 |
Reserve research on attitude of Reservists and their employers |
University of Melbourne |
14,850 |
Market research for the development of the Australian Defence Force Cadets Youth Development Framework |
Defence Materiel Organisation |
||
Advertising |
||
Adcorp Australia Pty Ltd |
16,132 |
Promote conferences |
Adcorp Australia Pty Ltd |
14,224 |
Recruitment advertising |
Expenditure on internal and external legal services in 2013–14 is shown in tables B.7 to B.9. Internal expenses include salaries for military and civilian staff, divisional operating costs and military justice reimbursements. External expenses are professional fees, disbursements and legal assistance at Commonwealth expense. All figures are GST inclusive.
Type of legal expenditure |
2012–13 $m |
2013–14 $m |
---|---|---|
Internal |
41.3 |
41.8 |
External |
22.2 |
21.3 |
Total |
63.5 |
63.1 |
Items |
2012–13 $m |
2013–14 $m |
---|---|---|
Salaries for military lawyers |
16.3 |
18.5 |
Salaries for APS staff |
13.8 |
13.3 |
ADF Reserve legal officers |
7.6 |
6.8 |
Operating costs of the division |
3.3 |
2.9 |
Military justice disbursements |
0.3 |
0.3 |
Total |
41.3 |
41.8 |
Items |
2012–13 $m |
2013–14 $m |
---|---|---|
Professional fees—Defence legal panel |
20.3 |
19.7 |
Disbursements |
1.6 |
1.6 |
Legal assistance at Commonwealth expense |
0.3 |
0.0 |
Total |
22.2 |
21.3 |
DMO expenditure on internal and external legal services is shown in tables B.10 to B.12. Internal expenditure includes salaries for civilian staff and operating costs that are directly related to the provision of legal services by DMO. External expenditure includes professional fees, disbursements and other legal expenditure incurred principally through the Strategic Commercial Legal Panel.
Type of legal expenditure |
2012–13 $m |
2013–14 $m |
---|---|---|
Internal |
3.5 |
3.1 |
External |
11.7 |
11.0 |
Total |
15.2 |
14.1 |
Items |
2012–13 $m |
2013–14 $m |
---|---|---|
Salaried legal staff costs |
3.2 |
3.0 |
Operating costs attributable to legal services |
0.3 |
0.2 |
Total |
3.5 |
3.2 |
Items |
2012–13 $m |
2013–14 $m |
---|---|---|
Professional fees—Defence legal panel |
12.9 |
11.0 |
Professional fees—Attorney-General’s Department |
– |
– |
Legal expenditure—other |
1.0 |
– |
Payments pursuant to licence arrangements with collecting societies |
– |
– |
Total |
13.9 |
11.0 |