Services Australia has been left sitting awkwardly after being found to have spent $180 million on furniture without demonstrating value for money in the procurement process.
Services Australia and the Department of Home Affairs were both put under the microscope by the Australian National Audit Office as two of the top five Australian Government entities with the highest estimated contract value on office furniture.
Services Australia accounted for over 50 per cent ($180 million) of the total estimated contract value of office furniture across the government between 2017 and 2022.($355 million)
In most contracts reviewed, Services Australia was found to have often engaged just one supplier and failed to benchmark prices when doing so – effectively ignoring the Commonwealth Procurement Rules (CPRs).
“These decisions limited opportunities for competitive pricing which made it difficult to demonstrate how value for money was achieved,” The ANAO report said.
Between 1 July 2017 and 30 June 2022, Services Australia recorded 990 contracts on AusTender under the categories of ‘office furniture’, ‘office and desk accessories’ and ‘workstations and office packages’.
The Auditor-General has issued three recommendations to Services Australia for the organisation to reinforce its procurement practices, adhere strictly to government guidelines, and prioritize the attainment of value for money.
Services Australia has accepted all three recommendations and has taken action to update and strengthen its existing guidelines and practices.
