3.15 Defence provided the Committee with a confidential cost document for each of the 10 direct procurement projects reviewed. The documents were not uniform in style or content, nor was it mentioned consistently if the estimated cost included Goods and Services Tax or not. The Committee's Manual lists the requirements for confidential cost documents, and where Defence has provided the information as noted in the Committee's Manual is listed in Table 3.2. Again, in no case reviewed was there evidence that the Committee requested more information be included in the confidential cost reports once they had been submitted to the Committee, although Defence witnesses can be asked questions on any matter relating to costs at the confidential hearings, or be included as recommendations in the Committee's report.
Table 3.2
Defence direct procurement cost submissions
Requirement | Defence Submissions | Comment |
Cost of building(s) | 10 |
|
Land costs | nil | None of 10 projects required a land purchase |
Cost of external works and services | 10 |
|
Miscellaneous - demolition, decontamination | 10 |
|
Relocation costs | 6 | Not always required, and not always reported on |
Cost provisions for phasing | 2 | Noted as escalation costs where reported |
Fees for project management, consultancies etc | 10 |
|
1 | 1 case indicated the cost excluded GST(a) | |
Contingency and escalation allowances | 10 |
|
Out turned costs at current prices | 10 |
|
Note: | (a) Defence advised that cost submissions do not generally include GST although this is not specifically noted on the cost submissions. |