More than $60m in Tasmanian labour hire contracts awarded without tender

Independent Tasmanian MP Bec Thomas has expressed concern over $61 million in labour hire contracts awarded by the government's health department without the usual tender process. The $61 million sum is part of the Bluegum Digital Transformation Project, a complex IT initiative aimed at overhauling health department record keeping and systems management. Thomas questioned whether anyone had been monitoring the total expenditure, demanding an explanation.

The contracts were awarded to 742 companies valued at $99,999 or less, a level at which contracts can be awarded directly without a tender process. These 742 contracts were given to only 65 companies, with 22 receiving 10 or more contracts. The largest single recipient was Ignite Project Services Pty Ltd, awarded 86 contracts worth $6.96 million. To date, $50.6 million of the contracts' combined value has been spent.

Thomas pointed out that the issue is not just individual contract compliance with the procurement threshold, but whether anyone was monitoring the overall picture and ensuring the approach adhered to good procurement practices and provided value for taxpayers. Auditor-General Martin Thompson echoed her concerns, identifying 80 instances where the department breached treasurer's instructions and found cases where contracts were issued after the successful company had already begun work.

In response to Thomas's questions, the government stated that revised procurement arrangements had been agreed upon for labour hire on this project. A structured quotation process is in place for projects under $250,000, while open tenders are used for projects above that amount. A procurement review committee is also in place for oversight.

The government explained that the Bluegum Digital Health Transformation Program is a uniquely large and complex undertaking in Tasmania, relying heavily on highly specialised ICT resources not readily available locally, requiring such a large-scale project.