Defence Infrastructure Panel
2017 - 2022 Induction Training
Capital Facilities and Infrastructure Branch
February 2017
DIP Induction Training
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Welcome and Introductions
Training Objective
Panel Manager Role
Panel Performance Framework
Panel Other
Quality Obligations
Panel Agreement
Terms of Engagement
Engagement Process
RFP Documentation and Official Order
DEQMS Overview
DIP Induction Training
Welcome and Introductions
• Lisa Drummond - Deputy Director, Quality and Compliance,
Directorate of Program Assurance
• Caitlan Sutton - Executive Officer, Quality and Compliance,
Directorate of Program Assurance
• Kate McKenna - Senior Associate, Clayton Utz
DIP Induction Training
Training Objective
• Provide a high level overview of Defence
expectations of Panelists.
• Provide an overview of the Panel performance
obligations.
• Provide a high level overview of the Panel and
engagement level obligations.
DIP Induction Training
Panel Manager Role
• The Consultant's Panel Manager will act as the primary point of
contact between the Commonwealth and the Consultant for the
purposes of the Panel Agreement.
• In addition, the Consultant’s Panel Manager is responsible for a
range of other activities:
– ensuring that the Consultant complies with its quality
obligations;
– participating in and carrying out all activities required by the
Commonwealth in assessing the Consultant's performance;
and
– working with the Commonwealth Panel Manager to resolve
issues affecting the relationship between the
Commonwealth and the Consultant.
DIP Induction Training
Panel Performance Framework
• Performance management discussions between the
Commonwealths Panel Manager and the Consultants Panel
Manager will be held at no less than 12 monthly intervals.
• 4 weeks before the performance management discussion, the
Consultants Panel Manager must provide the Commonwealth
with a completed ‘Performance Assessment’ form.
• Defence Project Officers will also be asked by the
Commonwealth to provide feedback on the services that they
received.
• In the event of any significant performance issue regarding a
Defence Engagement, the Consultant Panel Manager is
required to notify the Commonwealth Panel Manager
immediately.
DIP Induction Training
Panel Other
• Obligation to maintain contact details
• Security Clearances
• Defence Common Access Cards
• Lessons Learnt
DIP Induction Training
Quality Obligations
• Panel Members are required to implement and
maintain the quality assurance systems and
processes that were identified at time of tender.
• Complying with the relevant quality assurance
systems and processes does not relieve the
Consultant from compliance with any other panel
obligations or from any liabilities.
DIP Induction Training
Panel Agreement
• Each Consultant has a standing offer with Defence - Panel
Agreement
• Term is 5 years, subject to Defence's right to extend (up to 7
years)
• Can be used by Other Commonwealth Agencies and
Nominated Contractors
• No guarantee of any volume of work
• Defence can contract outside the Panel
• Defence may add Consultants to the Panel at any time for any
reason
• Consultants may withdraw from the Panel by notice in writing
• No physical works are permitted under the DIP!
DIP Induction Training
Panel Agreement - Structure
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Section 1: Introduction
Section 2: Panel Conditions
Section 3: Engagement Process
Section 4: Terms of Engagement
Section 5: Scope of Services
DIP Induction Training
Panel Conditions
• Establishes the framework for the supervision and
administration of the Panel
• Sets out the basis of the relationship between Defence and the
Consultant
• Continuing obligations throughout the Term
DIP Induction Training
Panel Conditions - No Guarantee of Work
• Depends on:
– General performance (Panel and Engagement level)
– Pro-activity in building relationships and displaying
understanding of Defence's business and needs
– Demonstrated expertise and experience in the type of
services
– Consultant's response to evaluation criteria for RFP
DIP Induction Training
Panel Conditions - Performance
• Unsatisfactory Consultant's performance (Panel or Engagement
level):
– Option for meeting and discussing the performance
– Defence can discontinue seeking proposals from the
Consultant for future work
• Performance discussions:
– Consultant required to participate in performance
discussions and provide the information required under the
Panel Conditions
DIP Induction Training
Panel Conditions - Engagement by
Nominated Contractors
• Commonwealth may require the Consultant to be directly
engaged by other contractors engaged by the Commonwealth
("Nominated Contractors")
• Terms are to be substantially the same as the Panel Conditions
and Terms of Engagement
DIP Induction Training
Panel Conditions - Personnel
• Commonwealth's Panel Manager
– Consultant's Panel Manager
• Only replace with prior written approval (Commonwealth
may request a CV or interview to assess proposed
replacements)
• Various responsibilities under the Panel Conditions
including:
– Keeping Commonwealth informed of various matters
– Ensuring compliance with obligations under Panel
Agreement and Contracts
– Participation in performance reviews
– Communicating Commonwealth's requirements
throughout its organisation
– Working with Commonwealth's Panel Manager to
resolve issues
DIP Induction Training
Panel Conditions - Personnel
• Obligation to perform tender promises
• Commonwealth's Panel Manager assessed at time of tender for
the DIP
– If a proposed replacement has lesser experience and skills
the Commonwealth is likely to reject
• Must not seel approval for replacement retrospectively!
• Must ensure knowledge transfer to relevant personnel within
the Consultant's organisation
– Key contractual obligations under the Panel (e.g.
reimbursable costs and disbursements etc)
– Defence's requirements
– Outcomes of training
DIP Induction Training
Panel Conditions - Insurance
• Maintain insurances in the Panel Particulars for the Term
• If insurances cease to be available on the specified terms notify and take steps to mitigate risks
• Provide copies of certificates of currency on request
• Employers Liability Insurance - WA and International only
DIP Induction Training
Panel Conditions - Quality Assurance
• Must implement an assurance process, system or framework
– Must maintain for the duration of Panel membership
– Must actively leverage of this system during Engagements
under the DIP to ensure quality outcomes
• Must allow Commonwealth's Panel Manager or other
Commonwealth representative to access it for auditing or
monitoring
• Not relieved of obligations under the Panel Agreement as a
result of implementing the quality assurance systems, or any
quality auditing or monitoring
• Share any lessons learned regarding quality with the
Commonwealth
DIP Induction Training
Panel Conditions - Compliance With
Commonwealth Requirements
• General obligation to comply with Commonwealth
Requirements throughout Term
• Workplace Gender Equality
• Safe Base Alert System
• Entry Requirements
• Privacy
• Freedom of Information
• Long Service Leave
DIP Induction Training
Panel Particulars - Confidential Information
• Do not copy, reproduce or disclose etc (or allow others to do
so) other than for performing obligations under Panel
Agreement or the Services
• Secure and protect from unauthorised use, access or similar
• Notify of Confidential Information Incidents and take steps to
end, mitigate, avoid etc adverse effects
• Return, destroy or erase as required (or notify if not possible)
• Provide evidence of compliance as requested
• Ensure recipients comply with requirements
DIP Induction Training
Panel Conditions - Material Change or
Defence Strategic Issue
• Notify immediately if become aware of Material Change or
Defence Strategic Issue
• Include details of steps taken to end, avoid, mitigate risk of
adverse effects
• Meet with Commonwealth or provide further information,
documents or evidence as required
• Commonwealth may:
– impose such conditions as it sees fit
– terminate the Panel Agreement
DIP Induction Training
Panel Conditions - Other Consultant
Obligations
• Conflicts of Interest
– Avoid conflicts throughout Term
– Notify of any conflict or risk of conflict
– Take steps as required to remove or minimise conflicts or
risks of conflict
• Obligation to perform tender promises / representations
• Provide access to Panel Documents, facilities, personnel etc
(for 10 years from the end of Term)
DIP Induction Training
Schedule of Rates
• Set out in Appendix 2 to Panel Conditions
• Used for:
– Schedule of rates engagements
– Valuing Variations
– When a Consultant is engaged as a subconsultant to
another Panel Consultant
• Rise and Fall
– Consultant may advise of an adjustment to its rates and
prices calculated in accordance with the relevant formula
– Must advise within 30 days of anniversary date!
• Consultant's obligation to do this within required time
• The Commonwealth will not chase you!
DIP Induction Training
Schedule of Rates
• All disbursements included in Schedule of Rates except:
– Travel costs (to be reimbursed in accordance with non-SES rates with no
administrative on-costs)
– Car hire and taxi fares (reimbursed at cost only)
– Other disbursements specified in an Official Order
• Must get prior written consent before incurring these costs
• Only allowed reimbursable costs set out in the RFP/ Contract
• Items which are not reimbursable costs:
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Telephone calls
Document printing
Email and internet charges
Royalties, licence fees and any other amounts connected with any IP rights
Taxes (except GST)
Superannuation, long service leave and other employment-related levies,
charges and amounts
DIP Induction Training
Schedule of Rates
• Lump Sum Engagements:
– No entitlement to reimbursement of any disbursements
(including travel costs, car hire etc) unless otherwise
explicitly stated by the Commonwealth in the Official Order
• No entitlement to reimbursement of any disbursements in
connection with the appointment to the Panel
• No entitlement to reimbursement of any additional costs/
disbursements connected with:
– A change in the location of the Consultant's business
– A change in the location of the Consultant's personnel
DIP Induction Training
Terms of Engagement
• More detailed terms governing the specific legal relationship
between the parties for each engagement
• Apply when a Consultant is engaged from the Panel
• Form part of the "Contract" for each engagement
• Tailored through Contract Particulars
DIP Induction Training
Terms of Engagement - Clauses
1. Glossary of Terms
10. Payment
2. Role of Consultant
11. Termination
3. Role of Commonwealth
12. Dispute Resolution
4. Personnel
13. Notices
5. Documentation
14. Indigenous Procurement
Policy
6. Quality
15. Confidential Information
7. Time
16. Sensitive & Classified
Information
8. Phases - Planning Phase and
Delivery Phase
17. Material Change or Defence
Strategic Interest Issue
9. Variation
18. Financial Viability
DIP Induction Training
Engagement Process
• Optional:
– Market Assessment
– Panel Consultants confirm intention to submit proposal
• EOI process is optional to determine capability and
capacity
• Even if Commonwealth issues an EOI Letter, the
Commonwealth may still elect to change or
discontinue the procurement process
DIP Induction Training
Engagement Process
• Step 1: Commonwealth issues a Request for
Proposal
• Step 2: Panel Consultants provide proposals
• Step 3: Negotiations (as required)
• Step 4: Official Order issued to successful Panel
Consultant
• Step 5: Unsuccessful Panel Consultants notified and
debriefs offered
DIP Induction Training
Engagement Process
• Commonwealth and successful Consultant will be deemed to
have entered into a Contract for the Services, comprising:
• Official Order
• Contract Particulars
• Fee Schedule
• Terms of Engagement
• Brief
• Project DCAP
• Panel Agreement
• Any other documents listed in the Contract Particulars
DIP Induction Training
Engagement Process - Panel Assessment
• Defence will consider:
– performance
– capability
– capacity
– project-specific factors
• If proposing to seek a Consultant over a number of Scopes of
Services, proposals will be requested only from Consultants
who can provide all the Services
• Consultant's cannot undertake Panel services where they do
not have a signed Deed for those services
DIP Induction Training
Engagement Documentation
• Two Forms
– Request for Proposal (Simple Procurements)
– Request for Proposal (Complex Procurements)
• Available on DEQMS
• May be updated as required by Defence from time to time
DIP Induction Training
Engagement Documentation
• RFP Form
– Completed by Defence
– Sets out requirements for RFP
– Includes:
• Project Details
• Submission Requirements
• Evaluation Criteria
• Conformance Requirements
• RFP process terms (addenda, information documents,
industry briefing, preferred panel consultants,
acceptance, alternative proposals etc)
DIP Induction Training
Engagement Documentation
• Draft Official Order
• Annexure A - Brief
– Part 1 - The Project
– Part 2 - Scope of Services
– Part 3 - Project Specific Special Conditions (if any)
• Annexure B - Project DCAP
– To be completed by Consultant
– Includes: Approach to Services, Minimum Resource
Schedule, Key People, Sub-consultants, Commercial-inConfidence Information
– Just In Time Training (Complex procurements only)
• Commitment and approach to JITT (attendees, topics)
DIP Induction Training
Engagement Documentation
• Annexure C - Fee Schedule
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Tailored for Project
To be completed by Consultant
Lump Sum or Schedule of Rates
Phased Fee structure (Complex procurements only)
Milestone Fee Payment Schedule (if any)
Reimbursable Costs (if any)
Proposal for submission of payment claims (optional)
• Annexure D - Contract Particulars
• Annexure E - Alternative Proposals
– Must submit a conforming proposal before an alternative will be considered
– Commonwealth has absolute discretion whether to accept or not
• Fee Schedule and Alternative Proposals must be submitted
separately (conforming tender requirement!)
DIP Induction Training
Official Order
• To be completed by the Commonwealth following selection of
successful Panel Consultant
• When signed and delivered in accordance with the Panel
Agreement it constitutes acceptance of the Consultant's offer to
supply the Services
DIP Induction Training
DEQMS
• Defence Estate Quality Management System
– http://www.defence.gov.au/estatemanagement/
• Certified Quality Management System
• Panel Members are to comply with the content
• Continuous Improvement and non-conformance will be applied
to DIP Projects
DIP Induction Training
Questions?