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Thursday, 22 August 1996
Page: 3003

(Question No. 165)


Senator Bob Collins asked the Minister for Foreign Affairs, upon notice, on 30 July 1996:

(1) Does AusAID retain the Snowy Mountains Engineering Corporation as its procurement consultant for goods and services purchased as aid to countries such as Papua New Guinea (PNG).

(2) Is a stated aim of the aid program to assist recipient countries through the provision of goods and services manufactured in Australia or New Zealand.

(3) Was a recent tender let under this program for the provision of large fire vehicles for the PNG Office of Civil Aviation.

(4) Was a minimum local content requirement one of the conditions of the tender, if so, what level of local content was specified.

(5) Has the contract been awarded; if so: (a) to whom; and (b) did the successful bidder have ISO 9001 accreditation for quality systems.


Senator Hill —The Minister for Foreign Affairs has provided the following answer to the honourable senator's question:

(1) Yes, the Snowy Mountains Engineering Corporation (SMEC) is currently under contract to AusAID to procure goods and related services under the Commodities Assistance Program (CASP). CASP is a form of aid delivery whereby manufactured equipment and commodities, including related training, commissioning and after sales requirements, are purchased for aid recipient countries such as Papua New Guinea.

(2) No, goods procured under CASP do not have to be manufactured in Australia or New Zealand. Procurement follows Commonwealth purchasing guidelines. These guidelines require SMEC to arrange for an open and fair competitive selection process and to obtain value for money. Factors taken into account include price, technical merit and conformity, delivery time, after sales service and maintenance and warranty cover. Australian suppliers should not however be disadvantaged in the selection process.

(3) Yes, a tender was let under CASP arrangements for the provision of 4 large fire vehicles for the PNG Office of Civil Aviation.

(4) No, a minimum of local content requirement was not one of the conditions of tender.

(5) Yes.

(a) The contract has been awarded to an Australian company, CI and D Industries, the Australian agent for the vehicle component supplier.

(b) CI and D Industries have ASO 9002 accreditation. The vehicle component supplier has ISO 9001 accreditation and the 4 fire vehicles will be assembled in Australia under the supervision of the vehicle component supplier.