I noticed this last week:
Contract Notice View - CN3628683-A2
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Professional Consulting Services
Agency Details
Contact Name: Australian Digital Health Agency
Email Address: contracts@digitalhealth.gov.au
Office Postcode: 2606
CN ID: CN3628683-A2
Agency: Australian Digital Health Agency
Amendment Publish Date: 22-Jun-2020
Category: Management advisory services
Contract Period: 30-Aug-2019 to 30-Oct-2020
Contract Value (AUD): $1,220,000.00
Amendment Value (AUD): $470,000.00
Amendment Start Date: 14-Apr-2020
Description: Professional Consulting Services
Parent CN: CN3628683
Procurement Method: Open tender
ATM ID: DH2233
SON ID: SON1700081
Agency Reference ID: KPMG Australia
Supplier Details
Name: KPMG Australia
Postal Address:
Town/City: Sydney
Postcode: 2000
State/Territory: NSW
Country: AUSTRALIA
ABN: 51 194 660 183
Here is the link:
https://www.tenders.gov.au/Cn/Show/?Id=d775697f-9fb9-4a81-b667-ff79fba45aec
What struck me about this announcement was that an engagement that was to run for about 18 months for $1.22M could about ½ way through suddenly expand by an additional almost ½ million dollars.
This rather makes a mockery of the idea of contracting for a fixed price to a deliverable or outcome.
I can imagine there are many commercial organizations who would love this degree of flexibility!
I wonder was the adjustment made because of COVID-19 or was it just needed as the project had rather run over its initial budget for other reasons?
Of course the adjustment may be a decrease in cost from $1.2M down to ½ a million but I somehow doubt it.
I rather suspect it reflects the fact that once you are on a panel to provide services to Government the sky is the limit on the depth of your reach into the public purse and explains why partners in these consulting firms are so fantastically well paid!
War stories on how the public is being fleeced welcome!
David.
3 comments:
David,
To clarify the history:
The original contract CN3628683 was published 19-Sep-2019
https://www.tenders.gov.au/Cn/Show/f6231017-6b2e-4af5-a535-b2096ae68e90
was for $500,000
starting 30 August 2019
There have been two variations
CN3628683-A1 - Published 21-May-2020,
https://www.tenders.gov.au/Cn/Show/0b3c89b7-2272-4d0e-b6fb-01b793f90090
Amendment of $250,000 for a total of $750,000
starting 27-Feb-2020
CN3628683-A2 - Published 22-Jun-2020
https://www.tenders.gov.au/Cn/Show/d775697f-9fb9-4a81-b667-ff79fba45aec
Amendment of $470,000 for a total of $1,200,00
starting 14-Apr-2020
In summary, there was a $500,00 contract that has been amended twice and is now for $1.2million
Contribute a story (any story) to our blogposts and you are in. There are also all these task forces and think tanks, they need filling and naturally we don’t want our internal folks. Asses are best kissed and ego’s are best stroked by external people. Makes you feel important.
We have plenty of on-premise storage thanks to Neanderthal Era IT thinking so plenty of room to shelve consultancy reports, recommendations, frameworks and maturity assessments.
That would equate to 3-4 people and oversight by a partner.
Partner 3-4K per day
Director -2-2.5K
Specilist 1900 per day
Analyst 16-1700 per day
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