We looked to see whether DET appointed good quality external advisers after a competitive bid process. Good quality external advisers can be essential to the successful negotiation of a PFP. The best way to secure such advisers is after a proper competition since one can then choose from a range of good quality firms. The principle behind such competition is to obtain advisers who will provide the best value for money. We found that DET sought competitive offers and appointed qualified external advisors to assist it to evaluate the bids received and to negotiate a final contract.
Although the costs to DET of establishing the first contract reached $3.5 million, including the cost of DET's in-house resources, the costs associated with the second contract are expected to be considerably lower at $2 million.