Recommendations for corruption prevention

The Commission has made 11 corruption prevention recommendations to help NSW government agencies address weaknesses in the procurement and management of security services as follows:

Recommendation 1

That NSW government agencies ensure that overall responsibility for identified tasks associated with the selection of security integrators is maintained in-house, including:

  • determining project budgets
  • determining the scope of projects
  • selecting tenderers to bid for contracts (in the case of limited and select tenders)
  • communicating with tenderers
  • coordinating tender evaluation panels and making recommendations
  • evaluating tender submissions and writing selection reports.

Recommendation 2

That NSW government agencies embarking on new large-scale security projects adopt a rigorous product selection approach. The selection process could include:

  • obtaining feedback regarding product specifications from a variety of sources, including end-users
  • extensive product testing and the evaluation of test results by a panel either to inform the development of tender specifications or as part of a tender evaluation process.

Recommendation 3

That NSW government agencies explore alternatives to relying exclusively on the advice of specialist consultants when selecting security integrators through a competitive process. Options for diluting the influence of specialist consultants include:

  • identifying in-house security experts from other public sector agencies for tender evaluation panel participation
  • ensuring that when consultants sit on tender evaluation panels, it is only in a technical advisory capacity
  • identifying and seeking advice from agencies that have undertaken similar projects.

Recommendation 4

That NSW government agencies consider the feasibility of separating tasks between security consultants for large-scale and complex projects, in cases where specialist advice is required.

Recommendation 5

That NSW government agencies adopt a broad approach to the due diligence enquiries that are conducted as part of a security procurement process, including:

  • the scrutiny of low bids
  • consideration of previous performance
  • seeking referee reports beyond those nominated by the tenderer
  • the verification of case studies provided by tenderers
  • conducting criminal record checks on successful applicants
  • seeking information from established information networks.

Recommendation 6

That NSW government agencies adopt a preference for open tender methodologies (including staged processes that involve open expressions of interest) for new security installation projects above $250,000 in value. For contracts up to $250,000 in value, a minimum of three written quotes should be obtained, unless exceptional circumstances exist and are documented or the contract is worth $30,000 or less.

This recommendation does not apply where whole-of-government or multi-agency arrangements are in place. It also does not apply where the agency has a pre-qualification scheme in place or where existing warranty or integration issues preclude open competition.

Recommendation 7

That NSW Health adopts a range of audit activities to ensure compliance with the requirements of its Purchasing and Supply Manual, including the formalisation of pre-qualification arrangements for contractors and obtaining the requisite number of quotations.

Recommendation 8

That NSW government agencies improve their project management systems by:

  • clarifying project roles and responsibilities
  • developing in-depth project scopes and plans, as appropriate, to the size and complexity of a project
  • specifying and ensuring compliance with contract terms and conditions
  • introducing tight inventory controls
  • close monitoring of project budgets and project expenditure
  • establishing processes to verify and approve variations, including the use of quantity surveyors.

Recommendation 9

That NSW government agencies ban employees directly involved in procurement activities from accepting any gifts, benefits and hospitality from potential contractors and consultants and existing contractors and consultants.

Recommendation 10

That NSW government agencies be proactive in explaining the obligations on contractors and consultants to declare conflicts of interest, including those arising from either a pecuniary or non-pecuniary relationship.

Recommendation 11

That NSW government agencies ensure compliance with the Department of Premier and Cabinet's Guidelines for the Engagement and Use of Consultants (C2004-17) when engaging and using consultants.

These recommendations are made pursuant to s 13(3)(b) of the Independent Commission Against Corruption Act 1988 ("the ICAC Act") and, as required by s 111E of the ICAC Act, will be furnished to the relevant public authorities and the ministers responsible for those authorities. As required by s 111E(2) of the ICAC Act, the relevant public authorities must inform the Commission in writing within three months (or such longer period as the Commission may agree to in writing) after receiving the recommendations whether they propose to implement any plan of action in response to the recommendations affecting them and, if so, the plan of action.

In the event a plan of action is prepared, the relevant public authorities are required to provide a written report to the Commission of their progress in implementing the plan 12 months after informing the Commission of the plan. If the plan has not been fully implemented by then, a further written report must be provided 12 months after the first report.

Implementation plans

The implementation plans posted below have been provided in response to the ICAC's corruption prevention recommendations. Their appearance here is for information only and does not constitute the approval or endorsement of the plans by the Commission.

Art Gallery NSW - Implementation Plan (PDF)

NSW Businesslink - Implementation Plan (PDF)

NSW Health - Implementation Plan (PDF)

Sydney Ports Corporation - Implementation Plan (PDF)

University of Western Sydney - Implementation Plan (PDF)

Woollahra Municipal Council - Implementation Plan (PDF)*

*Other reports will not be requested from Woollahra Municipal Council as it has completed its implementation of the recommendations.

12 month progress reports

The 12 month progress reports posted below have been provided in response to the ICAC's corruption prevention recommendations. Their appearance here is for information only and does not constitute the approval or endorsement of the reports by the Commission.

NSW Health - 12 Month Progress Report

University of Western Sydney - 12 Month Progress Report

Port Authority of New South Wales - 12 month progress report


Final reports

The final reports posted below have been provided in response to the ICAC's corruption prevention recommendations. Their appearance here is for information only and does not constitute the approval or endorsement of the reports by the Commission.

Art Gallery of NSW - Final Report

Department of Family and Community Services - Business Services - Final Report

NSW Health - Final Report (PDF)

Port Authority of New South Wales - Final Report (PDF)

Western Sydney University - Final Report (PDF)