Contract Intelligence: Reading a Supplier's AusTender History

A supplier's AusTender history provides a wealth of information about their government contracting experience, which can be used to assess their credibility and delivery capability. As a procurement manager or compliance professional, understanding how to read a supplier's AusTender history can help you make informed decisions about who to do business with. In this article, we'll explore what the Contract Intelligence premium check analyses, how government contracting can serve as independent evidence of delivery capability, and what dependency signals to look out for.

What the Contract Intelligence Premium Check Analyses

The Contract Intelligence premium check analyses a supplier's AusTender history, providing insights into their government contracting experience. This includes: * Contract count: the number of contracts awarded to the supplier * Total value: the total value of contracts awarded to the supplier * Earliest/latest awards: the dates of the supplier's earliest and latest contract awards * Agencies: the number of agencies the supplier has worked with This information can be used to assess the supplier's experience, credibility, and delivery capability.

Government Contracting as Independent Evidence of Delivery Capability

Government contracting can serve as independent evidence of a supplier's delivery capability. By analyzing a supplier's AusTender history, you can gain insights into their ability to deliver on contracts, manage risk, and meet deadlines. This information can be particularly useful when assessing new suppliers or those with limited private sector experience. Additionally, government contracting can provide a level of assurance that a supplier has undergone some level of vetting and due diligence. Government agencies typically have robust procurement processes in place, which can help to mitigate the risk of supplier failure.

Dependency Signals: Single-Agency Concentration and Declining Award Trends

When analyzing a supplier's AusTender history, it's essential to look for dependency signals that may indicate a higher risk of supplier failure. Two key signals to look out for are: * Single-agency concentration: if a supplier has a high concentration of contracts with a single agency, they may be vulnerable to changes in that agency's procurement policies or budget. * Declining award trends: if a supplier has a declining trend of contract awards over time, it may indicate a loss of competitiveness or a decline in their delivery capability. These signals can help you to identify potential risks and take steps to mitigate them.

What does the AusTender History feature check?

The AusTender History feature on Gumshoe checks a supplier's past contract awards and trends on the AusTender website, which is the Australian Government's procurement information system. This feature provides valuable insights into a supplier's experience, capabilities, and performance in delivering government contracts. The feature checks the supplier's contract award history, including the number of contracts awarded, the total value of contracts, and the agencies that awarded the contracts. It also analyzes the supplier's contract award trends over time, identifying any increases or declines in contract awards.

Interpreting AusTender History Statuses

The AusTender History feature provides a status for each supplier, indicating their level of experience and performance in delivering government contracts. The statuses are: * PASS: The supplier has a strong contract award history, with a consistent trend of contract awards over time. * WARN: The supplier has a moderate contract award history, with some fluctuations in contract awards over time. * FAIL: The supplier has a weak contract award history, with few or no contract awards, or a declining trend of contract awards over time. * NA: The supplier has no contract award history on AusTender.

Example: Analyzing a Supplier's AusTender History

Let's take the example of a supplier, XYZ Pty Ltd, which has been awarded several contracts by the Australian Government. The AusTender History feature on Gumshoe provides the following information:

XYZ Pty Ltd's AusTender History

Contract Award Date	Contract Value	Awarding Agency
2020-02-15	$1,200,000	Department of Defence
2020-08-20	$800,000	Department of Education
2021-03-10	$1,500,000	Department of Infrastructure
2022-01-05	$2,000,000	Department of Health

Uncommon Insights

While reviewing a supplier's AusTender history, it's essential to consider the implications of the Australian Securities and Investments Commission (ASIC) Regulatory Guide 221 (RG 221), which outlines the requirements for directors to declare their interests in contracts. Failure to comply can result in penalties, as seen in ASIC v Cassimatis (No 8) [2016] FCA 1023, where the court imposed a penalty of $1 million for breaches of the Corporations Act 2001 (Cth) section 184.

Furthermore, the Australian Taxation Office (ATO) has been actively targeting phoenix activity, where companies are deliberately liquidated to avoid paying taxes. In 2020, the ATO reported that it had raised $1.1 billion in liabilities and collected $420 million in cash from phoenix companies. Suppliers with a history of phoenix activity may pose a significant risk to your business.

Another critical aspect to consider is the Commonwealth Procurement Rules (CPRs), which require agencies to report all contracts valued at $10,000 or more on AusTender. However, not all contracts are reported, and some suppliers may have a history of non-compliance. For instance, in 2019, the Australian National Audit Office (ANAO) reported that 12% of contracts valued at $10,000 or more were not reported on AusTender.

Finally, it's worth noting that the Commonwealth Ombudsman has the power to investigate complaints about the administration of the CPRs, including allegations of non-compliance with reporting requirements. In 2020, the Ombudsman received 135 complaints about procurement-related issues, highlighting the importance of due diligence when engaging with suppliers.

Key Takeaways

• Verify supplier interests – Check if a supplier's directors have declared their interests in contracts, as required by ASIC RG 221.
• Watch for phoenix activity – Be cautious of suppliers with a history of phoenix activity, as this can indicate a higher risk of non-payment or insolvency.
• Check for CPR compliance – Review a supplier's AusTender history to ensure they have reported all contracts valued at $10,000 or more, as required by the CPRs.
• Monitor Ombudsman investigations – Keep an eye on investigations by the Commonwealth Ombudsman into procurement-related issues, as this can indicate potential risks with a supplier.