So what is a “competitive evaluation process”?
There are various types of tender processes within the Commonwealth. There are “sole source” purchases, where there’s only one supplier ever involved. There are “select tenders”, where a limited number of suppliers are invited to participate. Then there are open tenders, which are advertised by the government and open to any supplier who wants to make a bid.
All pretty straightforward. But today, Defence Minister Kevin Andrews appears to have invented a new one — “competitive evaluation” — while explaining the government’s plans to contract and build the next generation of Royal Australian Navy submarines.
On the weekend, in order to secure the support of a single South Australian senator in yesterday’s leadership spill motion, the Abbott camp offered to backflip on its previous decision that the submarines would be acquired offshore rather than being built in South Australia by ASC, the government-owned ship builder. Now there’s been a partial backflip on that backflip: the government’s only commitment is that ASC could, vaguely, “participate” in the process.
There’s something for everyone in this mess. The original decision to go offshore was the sensible one — Australia has a wretched record of building submarines, and giving the job to ASC would have risked a repeat of the disastrous Collins Class procurement process. And yet the government insisted that the decision was made merely because it didn’t have time to carry out a proper tender process — all the while rumours swirled that the Prime Minister had given Japanese Prime Minister Shinzo Abe a secret nod about buying Japanese submarines. We’re only talking about $20 billion and one of the core components of Australia’s defence needs — nothing too important.
Thank heavens good government started yesterday. Not a moment too soon.
“Good government starts Toady …. where’s Ghoulie gone?”
[Down to Adelaide to unveil the new pork-barrel fuelled “Ashgrove Class Submarine” designed by Manuel Newman, the Spanish economist.]
Good government, bad government or ugly government?
Re “Australia has a wretched record of building submarines, and giving the job to ASC would have risked a repeat of the disastrous Collins Class procurement process”
First check how other nations who have 100 years experience go.. Not much better actually
Netx most of the Collins problems were as a result of using imported expertise. From the very nations you are so ready to send the whole project to.
Next if we have them built by Japan and that nation is in conflict with China how does that look to China. Do we really think the Chines won’t respond in ways we don’t like? Do we really believe that the Chinese won’t see it as an act of partisanship? Won’t the Chinese take the view that all the money they send us is now being used to fund a rival?
For a maritime nation to have its key strategic weapon at the behest of another nation is simply poor security. How do we know bugs won’t be built in
If the subs are built overseas and cost $25B then the economic benefit to Australia? NIL
If they cost $35B to build in Australia with a multiplier of only 1.5 the benefit is $52.5B So an extra $10B generates $17.5B. That’s a 75% return. Not too shabby and better than the 0.45 return Abbott likes on the East /West link
That $52.5B would generates say $10B in tax revenue which would pretty much cover the additional cost plus reduced dole payments and greater industrial capacity.
So there you have
Better overseas relations
Better security
Better economic outcome
Better technical capacity
Utilisation of past lessons
On what basis could anybody rationally argue that building off shore is a good idea other than the initial sticker price, which is a false economy anyway
What a relief for the nation, it’s Back To Work Tuesday.
The Pav – +100!!
Crikey should know better. ASC gets it in the neck, every time. Don’t hear you lot complaining about the disaster that is the Joint Strike Fighter out of the good ‘ol USA. That thing is going to cost squillions more than originally planned. If they ever get it off the ground, that is.
But that is okay, is it? Just the ASC, which wasn’t to blame for the balls up of the Collins Class Subs anyway, are so hopeless they can’t build a canoe!!!!! And after the navy, defence dept., yanks and original designers finally agreed on what they wanted (and what was possible) they were all fixed by GUESS WHO??? The ASC!!!!