Negotiations will start soon between the Department of Finance and Administration (DOFA) and preferred tenderers for a range of corporate services. Discussions will include human resources, financial, office and facilities management.
The new negotiations see DOFA leading the way for the commonwealth in outsourcing corporate operational activities, following an extensive period of market testing.
DOFA says it will now enter into contract negotiations with preferred tenderers for a range of corporate services.
Andersen Consulting has won the right to negotiate a contract for human resource and financial processing services, including payroll, personnel administration, accounts payable, and OH&S management.
Meanwhile, Knight Frank Price Waterhouse will enter into negotiations to provide property and facilities management services while Outsource Australia will negotiate to provide office services. According to Finance Minister John Fahey, the deals should lead to taxpayer savings.
The department successfully outsourced its information technology infrastructure requirements in September 1997. Fahey claims as well as ongoing cost savings and improvements in service quality, it is obtaining the benefit of the worldwide experience and knowledge of its private sector business partners from that arrangement.
Andersen Consulting managing partner Carney Sodaberg said the new contract, for provision of financial and human resources support services, should be worth more than $25 million to his company over the next three to five years. It could lead to up to 75 additional jobs in Canberra and other Australian cities.
Andersen said the contract would include an industry development program under which small to medium-sized enterprises would provide a range of services.
He said the negotiations would incorporate the financial management and HR functions including payroll, personnel, administration, accounts payable, OH&S, and both the back-office and some of the front-office processes for finance and administration. It would not include the whole-of-government finance functions such as budgeting.