The $90 billion future submarine program may be dead in the water, but not without making a whole lot of management consultants rich first. A quick search through AusTender reveals advisory firms have reaped millions from the bungled scheme, as government after government desperately tried to turn the dud program around.
Some contracts are even paid up until the middle of next year.
Feeding frenzy
Since the program was announced under Malcolm Turnbull in 2016, the government has thrown every advisory group it can get its hands on to try to fix the scheme. And as the biggest ever defence project, there was no shortage of firms lining up to clip the ticket.
One of the biggest contracts appears to be a limited-tender deal with Frazer-Nash Consultancy for “professional engineering services” in April 2017. The contract was worth $8.5 million, and is set to run until April 2022. All we know about the work was that it was supporting the program’s “technical offices”.
The management advisory contracts continued in January 2019 when Silver Spirit Partners was given a $1.4 million deal to conduct “negotiation services” for the program. They ramped up in 2020 when the program was under serious scrutiny. In February 2020 the government turned to BMT Design for management advisory services of “modelling and analysis” of the program. This contract was worth $1.9 million.
In July 2020, consulting group Nova Defence was given a $805k contract for more “management advisory services” on the program. There are no further details of the deal on the public record. The same month, consulting group Gibbs & Cox were handed a two-year $3.3 million contract for more management advisory services, with that particular contract due to run until June 2022.
While it’s by no means a full list of the companies that have profited off the failed project, it shows the largesse of the scheme goes way beyond the deal with Naval Group itself.
Some contracts are even paid up until the middle of next year.
For services not yet rendered; yeah that sounds like sacked Scotty habit
As a taxpayer, I am thankful for these disclosures, Georgia Wilkins. Thank you for your hen’s teeth journalism. This is why I subscribe to Crikey.
Surely that’s a lying cow in the photo
And one of Morrison’s mates signed off on the deal. Another little bit of the corruption pie, sliced equally with this immoral, deceitful Government.
One of the biggest contracts appears to be a limited-tender deal with Frazer-Nash Consultancy for “professional engineering services” in April 2017. The contract was worth $8.5 million, and is set to run until April 2022.
Last month is was announced that the above company had been sold off to KBR (formerly Kellogg Brown & Root) Halliburton front and centre here, KBR engages 3rd party lobbyists to represent the company in jurisdiction where they have business interests. For example, in South Australia, KBR is represented by lobbying firm MCM Strategic Communication
Got the stench of it all yet?
In June 2008, Charles M. Smith, the senior civilian Defense Department official overseeing the government’s multibillion-dollar contract with KBR during the early stages of the war in Iraq said he was forced out of his job in 2004 for refusing to approve $1 billion in questionable charges by KBR. Smith refused to approve the payments because Army auditors determined that KBR lacked credible records to support more than $1 billion in spending. Smith stated, “They had a gigantic amount of costs they couldn’t justify.” He said that following this action he was suddenly dismissed and according to one New York Times source “his successors — after taking the unusual step of hiring an outside contractor to consider KBR’s claims — approved most of the payments he had tried to block.”