Value for money? Queensland departments have no idea, says auditor
It’s unclear if the Queensland government is getting value for money from its supply contracts with the auditor-general saying departments aren’t working together on procurement.
Auditor-General Brendan Worrall has probed government procurement contracts to find where savings could be made and processes made more efficient.
His analysis comes after the government unveiled plans to find $3 billion in savings over four years back in October 2020.
Worrall says it is still unclear if the government is spending too much on its 466 general supply contracts.
“There is no monitoring or reporting on whether departments are using these arrangements and if they are achieving value for money,” said the report, released on Tuesday.
Part of the government plan involved departments sharing information about contracts and negotiating collectively, but that still isn’t happening.
The report said departments were often “hesitant” about working together because they wanted control over their own supplies.
In one case, one department spent $508 per mobile device while another was paying $196 per device even through they were using the same supplier in the 2021 financial year.
“Currently, there is limited monitoring and reporting on whether agencies are sharing their data and effectively collaborating,” MrWorrall wrote.
The report said the Treasury and the public works department, which oversees government procurement, should help other departments share data on contracts.
“[They] should enhance information and data sharing, between the two departments, to support strategic procurement decision-making,” the report said.
Worrall said Treasury and the department should also ensure departments work together when negotiating contracts.
He also recommended setting performance targets for whole-of-government and departmental supply contracts and monitoring them.
Departments should prioritise using existing whole-of-government contracts, the report said, or explain why they’re not doing so.
That would help the public works department understand why suppliers had been engaged outside existing contracts and why.
“[They] should then use this information when negotiating future whole-of-government arrangements to drive better supply and price,” Worrall wrote.
