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Thursday, 13 August 2009
Page: 4958


Senator Ronaldson asked the Minister representing the Minister for Finance and Deregulation, upon notice, on 10 June 2009:

Can a list be provided of contracts awarded to: (a) the Boston Consulting Group; and (b) the Allen Consulting Group, by the department and/or any of its agencies, of any value, between 1 January 2008 and 31 May 2009, including the value and primary deliverable of the contract.


Senator Conroy (Minister for Broadband, Communications and the Digital Economy) —The Minister for Finance and Deregulation has supplied the following answer to the honourable senator’s question:

The Department of Finance and Deregulation issued a select tender on 26 September 2008 to six companies on Finance’s ICT Multi-Use List. Following this tender process, the Department of Finance and Deregulation engaged the Boston Consulting Group to deliver Sir Peter Gershon’s recommendation to create ICT Review Teams to assist agencies that spend more than $20m per annum on ICT to reduce their ICT business as usual (BAU) budgets by 15 % from 2007-08 actuals over 2009-10 and 2010-11. The budget reductions were to be phased with Phase One targeting one-third of the proposed level of ICT BAU budget reductions in the 2009-10 Budget with the remaining two-thirds to be achieved in Phase Two in the 2010-11 Budget. The contract period is from 26 October 2008 to 26 October 2009 at a cost of $11,196,180.

The work being undertaken by the Boston Consulting Group relates to:

- Development of the methodology that the ICT Review Teams and agencies are using to find savings in their ICT business as usual expenditure.

- The Boston Consulting Group personnel have worked with the ICT Review Teams and agencies to find the Phase One ICT BAU savings that were included as part of the 2009-10 Budget process. Phase Two of the work will focus on finding additional savings in the 2010-11 Budget to achieve the target levels of ICT BAU budget reductions.

The Department of Finance and Deregulation has not awarded any contracts to Allen Consulting Group during the period in question.

The Department of Finance and Deregulation’s portfolio agencies have not awarded any contracts to the Boston Consulting Group or the Allen Consulting Group during the period in question.