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Terms of reference: review of the implementation of the whole of Government Information Technology Outsourcing Initiative.



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Minister for Finance and Administration THE HON JOHN FAHEY MP

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Terms of Reference - Review of the Implementation of the Whole of Government Information Technology Outsourcing Initiative The Government today announced the Terms of Reference for the review of the Whole of Government Information Technology Outsourcing Initiative (Initiative), which will focus in particular on the implementation risks associated with transitioning from the provision of IT infrastructure from the in-house IT operations of Commonwealth agencies to an external service provider in contracts let under the Initiative to date.

In releasing the Terms of Reference the Minister for Finance and Administration, Mr John Fahey, emphasised that the report of the independent reviewer, Mr Richard Humphry, would be disclosed in full by the Government.

(Terms of Reference attached)

14 November 2000

Terms of Reference - Review of the Whole of Government Information Technology Outsourcing Initiative The independent reviewer shall conduct a review (Review) of the Whole of Government Information Technology Outsourcing Initiative (Initiative).

The independent reviewer shall inquire into matters relating to the initiative, with particular emphasis on the implementation risk associated with transitioning the provision of IT Infrastructure from the in-house IT operations of Commonwealth agencies to an external service provider (Implementation Risk) in contracts let under the Initiative to date.

In conducting the Review, the independent reviewer should:

report on the implementation of the Initiative to date; ● identify the sources of Implementation Risk; ● identify how Implementation Risks are addressed and managed in the context of Initiative tender processes; and ●

raise any other issues related to the scope of this inquiry. ●

In conducting the Review, the independent reviewer shall assess the experiences to date of contracts let under the Initiative having regard to the following materials:

the Auditor-General’s Report in relation to the implementation of the Initiative (ANAO Report Number 9 of 2000-2001); ●

the collective response to the recommendations of the ANAO Report agreed by all Commonwealth agencies affected by the contracts audited in the ANAO Report; ●

the views of Commonwealth agencies and the relevant contractors that have participated in contracts let under the Initiative to date as appropriate; and ●

any additional materials the independent reviewer considers necessary to conduct the Review. ●

As a priority, the independent reviewer shall conduct a review of the Group 1 and Group 11 tender processes currently at market. Specifically, the independent reviewer shall:

identify Implementation Risks associated with each of these tender processes; and ● provide an opinion that these Implementation Risks have been adequately addressed in each of the tender processes. ●

The independent reviewer is to report to the Minister for Finance and Administration by the end of December 2000. He will also have access to a steering committee comprised of the Secretary of the Department of Prime Minister and Cabinet; the Secretary of the Department of Finance and Administration; and the Chief Executive Officer of the Office of Asset Sales and IT Outsourcing.