The ACT Integrity Commission has heard the Education Minister’s office allegedly held the view that the superior tenderer for a controversial Canberra school refurbishment was “not to get the job”.
Key points:
- A refurbishment tender at Campbell Primary School is the subject of scrutiny by the Integrity Commission
- The tender was given to Lendlease despite its bid being rated significantly worse than its competitor
- The commission heard there were rumours alleging a union approach to the Education Minister was the reason for the controversial tender
The commission is looking into whether ACT Education Directorate officials were honest and impartial in awarding the $18.8 million tender for the Campbell Primary School project.
The commission heard local firm Manteena’s bid was 8.5 per cent cheaper and received a significantly higher rating than its competitor Lendlease, but it was Lendlease that was ultimately successful.
An Education Directorate official — given the pseudonym John Green — addressed the commission and said he was told the Chief of Staff for Education Minister Yvette Berry said that “Manteena is not to get it”, citing amongst other things its “industrial relations performance”.
Mr Green alleged the Construction Forestry Maritime Mining Energy Union (CFMEU) did not like Manteena, as they negotiated with their workers directly and had no union agreement.
Counsel Assisting Callan O’Neil told the commission that at the time of the tender decision there were rumours circulating of an allegation that Ms Berry had been approached by unions and asked why Manteena was winning “all the jobs”.
He said it was rumoured that alleged approach was the reason Manteena lost the tender.
Ms Berry will be a witness at the Integrity Commission’s hearings, but was not scheduled to appear today or tomorrow.
The commission heard the Education Directorate’s Tender Evaluation Team (TET) gave Manteena’s bid a score of 79 out of 100 and a low risk rating, compared to Lendlease’s score of 52 and a medium risk rating.
The TET then recommended Manteena for the project.
However Mr Green said as both bids were over budget it was decided the tender process would go to a Best And Final Offer (BAFO) stage to try to reduce the cost.
Some members of the original TET were disappointed with the decision and didn’t want to return, so a second tender evaluation team was set up in April 2020 to do the same task as the first.
“Members of the TET maintain their view that the appropriate recommendation was for the project to be awarded to Manteena with descoping – that is, negotiation to reduce the scope of works and save cost,” Mr O’Neil said.
“Evidence before the commission indicates that such an approach was entirely conventional.”
Whereas the original team took three months to provide its report, the second team handed theirs over in just ten days, dropping Manteena’s rating to 69 out of 100 and increasing Lendlease’s to 68 out of 100.
The Manteena project was still $897,000 cheaper.
The hearing continues.