Procurement is big business and commits the Australian Government and taxpayers to tens of billions of dollars every year. Procurement accounted for more than $80 billion in committed value in 2021-22, with the Government awarding more than 90,000 contracts to more than 12,000 businesses for a hugely diverse range of goods and services.

The five biggest consulting firms (Accenture, KPMG, Deloitte, PWC and Ernst & Young) secured nearly $2 billion in government contracts in the 2021-22 financial year, comprising more than $1.6 billion in new contracts as well as more than $300 million in contract variations or extensions.

In four of the five reports by the Australian National Audit Office (ANAO) considered in this inquiry, there was non-compliance with the Commonwealth Procurement Rules (CPRs). Especially significant were consistent failures to demonstrate value for money, conduct procurements in line with ethical requirements or keep adequate records, and substandard contract management.

Put plainly, the Commonwealth has serious commitment issues. AusTender is no AusTinder and it needs reform. Public servants need to get far more comfortable and skilled with playing the field and sharpening their pencils on suppliers, even if this leads to difficult conversations and rejection.

Key recommendations:

• The Committee recommends that the Department of Finance work to advance public sector procurement capability and professionalisation.
• The Committee recommends that the Department of Finance amend the Commonwealth Procurement Rules to reverse the onus such that they apply to corporate Commonwealth entities by default, with any exceptions to be made by the Finance Minister via legislative instrument.
• The Committee recommends that the Department of Finance write to the accountable authorities of Commonwealth entities with guidance on how to use probity advisers, and reminding them of their obligation to manage probity in a thorough and consistent manner when conducting procurements.