2010 Contract for Air Sustainment Services

2010 Contract for Air Sustainment Services to the Middle East Area of Operations

Defence has entered into a two year contract with Adagold Aviation Pty Ltd for the provision of air sustainment services to the Middle East Area of Operations (MEAO). The contract was signed on 22 October 2010 and will commence on 23 November 2010.

The contract represents a substantial improvement in value for money to the Commonwealth, with significant savings over the two year term of the contract.

Following a complaint about aspects of the tender, the Secretary of Defence commissioned a probity review on 15 July 2010 into the 2010 tender for the provision of MEAO air sustainment services. This review was undertaken by Defence’s Chief Audit Executive. Concurrently, Defence’s probity review process was independently validated by PricewaterhouseCoopers.

Deloitte Touche Tohmatsu and the Australian Government Solicitor were subsequently engaged in 02 September 2010 to conduct an additional independent assessment regarding the financial viability of the preferred tenderer and the overall selection process. Those aspects were beyond the scope of the Chief Audit Executive’s probity review.

That assessment did not identify any evidence of bias in the process, any outside influence that could have compromised the overall selection process or any reason that would suggest that the tenderer was not a fit and proper organisation. These findings were consistent with the outcome of the Defence probity review.

ENDS

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