DEFENCE MEDIA RELEASE
Issued by Ministerial Support and Public Affairs, Department of Defence, Canberra, ACT
Media contact: 02 6127 1999, Fax: 02 6265 1545
Media Releases are available via e-mail if you register at www.defence.gov.au/media
MSPA 497/10
Friday, 22 October 2010
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.
Media contacts:
Defence Media Liaison:
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