SOUTH REGIONAL TAFE —
ESPERANCE CAMPUS
577. Hon COLIN de GRUSSA to the Minister for Education and
Training:
I refer to request for tender
BMW03921/19 South Regional TAFE, Esperance, new replacement campus awarded to
EMCO Building.
(1) What is the projected direct
spend for the supply of goods and services by local suppliers?
(2) Was the level of direct spend
with local suppliers a determining factor in awarding the tender?
(3) What
contractual mechanisms are in place to ensure that the selected tenderer meets
the specified direct local spend, and what penalties apply if they do not meet
that spend?
(4) What
methodology is used to determine whether a supplier is local other than
stipulating a local registered address?
Hon SUE ELLERY replied:
I
thank the honourable member for some notice of the question. By way of
background, in this case I am the minister for the client, which is
TAFE. The Department of Finance has provided these answers.
(1) EMCO Building
nominated local content of approximately $2 million as part of its tender
submission. However, this amount is expected to be exceeded on the project, with
12 of the 13 contractors initially engaged being either local or regional
businesses.
(2) The contract award decision was based on a value-for-money
assessment, considering both cost and non-cost factors and having regard
to the available budget.
(3) The
Department of Finance regularly monitors local content commitments and has
broad powers to deal with contractual breaches, including the recovery of
shortfalls and termination. Failure to comply with contractual commitments may
also result in a sanction being applied under the department's supplier
demerit scheme, which may affect a company's future prospects of being
awarded government work.
(4) When there are concerns about the bona fides of a supplier's
address, the Department of Finance can request further information to
substantiate its claims and/or undertake its own inquiries.