Page 1591 - Week 05 - Thursday, 5 May 2016
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Since the first MOU in 2005, government procurement has been centralised and it has matured so that the approach and contracts are now standardised. The current MOU recognises the single procurement agency, as evidenced by dedicated union contact officers, and changes to consolidate annual reporting.
The ethical suppliers declaration is a mandatory undertaking for relevant contracts that were developed as part of the MOU. Tenderers for contracts where labour is exerted are required to complete and sign an ethical suppliers declaration to confirm that they comply with the relevant workplace legislation, such as paying the correct wages and the correct workers compensation, and making provisions for leave and other such entitlements.
These contracts also allow for an updated ethical suppliers declaration to be sought during the term of a contract. Where they have a finding against them under relevant legislation in the previous two years, tenderers must advise the territory in the ethical suppliers declaration and describe the remedial actions taken to ensure compliance into the future.
The ACT government has operated a pre-qualification scheme for construction industry suppliers since 1993. Under the MOU, the territory has reviewed the pre-qualification arrangements to strengthen the operation of the scheme. Where a pre-qualification category exists for a given contract, tenderers must be pre-qualified with the ACT government in order to tender for work. Pre-qualification enables the territory to manage risks by ensuring tenderers meet minimum standards in relation to specified criteria.
Pre-qualification also provides for more efficient tender processes, as tenderers have already submitted some of the required documentation in their pre-qualification application. This allows tender evaluation teams to work more quickly and easily. It also saves industry time and money by giving business organisations a clear indication of which categories of tender they are able to apply for, knowing that they already meet a range of key government criteria.
The MOU includes a consultation provision for new applicants to the pre-qualification scheme. Whilst the MOU permits UnionsACT to advise government of its views as to whether or not an applicant for pre-qualification meets its employee and industrial relations obligations, each matter is considered by territory officials on a case-by-case basis, informed by the individual factual situation, with the ultimate decision resting with the government.
There is no doubt that the pre-qualification scheme has served the ACT well. While it is difficult to go into specifics because of the commercial and legal implications, it is worth noting that a number of companies that have gone into liquidation in recent years have fallen into financial difficulties after signing contracts with others for much larger volumes than the ACT would have been prepared to agree with with that company. So in this instance, our system of checks protects the territory.
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