An interesting conundrum for Fairfax

Respected journalist Phil Kitchin from the Fairfax stable suggested that a contractor holding a non tendered contract with a government department was outrageous.  In fact the way the article was written it was clearly intended to suggest that there was some element of corruption involved.

From the same Fairfax stable, we have Michael Forbes in the business pages today giving the thumbs up to a Whanganui boat building company for negotiating a “syndicated procurement clause” that allows the police and other govt agencies to bypass the tender process and deal direct with said boat building company.

Mr Fothergill also had the good sense to negotiate a syndicated procurement clause in its contract with the police, which allowed other government agencies to bypass the public tender process and go straight to Q-West as a preferred service provider.

This then makes for an interesting conundrum for Fairfax. One well respected writer thinks untendered work is almost corruption and another writer lauds the person responsible for orchestrating non-tendered work as having “good sense”.

So make up your mind Fairfax – corruption or good business? One or the other please.

  • overthehill

    One key difference you choose to overlook is that in a syndicated procurement contract, the required tendering process and checking is carried out by the agency holding the agreement – in this case, the Police. In the Corrections case cited, there was no vetting or tendering at all – this is a flagrant breach of Governmental procurement rules. In other news, this is a common approach by Corrections, who consider themselves above the rules in many areas. I have documentation of another case where $123K of taxpayer money was spent with no tender, for a service that was never discussed with the prospective Correctioons users, and as a result the money may as well have been tipped down the toilet.

  • http://frontrower.gotcha.co.nz The Frontrower

    In my humble 15 years of working in procurement – Not tendering is a standard procurement practice when you only have one supplier who fits your requirements. You just skip to the negotiation with them over price and conditions as you get no benefit from having a full tender.

  • mediatart

    Whats the conumdrum?
    One story is a puff piece for ‘businessday.co.nz’, probably a ‘vanity’ item as well , ie they paid for it to be published.
    Fairfax just picked it up as a holiday filler.

  • gaskranken

    Plenty of boat builders in NZ, in fact that’s something we have in abundance right?

    Only 1 company in Whangas capable of building boats for the cops and customs? Yeah right.

    Corrections dept getting plumped invoices? No doubt.

    Conundrum.