Australian Competition and Consumer Commission and the Australian Energy Regulator
Annual Report 2010–11

Part six: Appendixes

Appendix 7:
Consultancies

The ACCC engages external consultants where specialised expertise is not available in house or where independent evaluation is needed.

The guiding principles applied to all purchasing are:

Table: Listing all consultancy contracts begun in 2010-11 to the value of $10 000 or more (including GST)
Supplier name Contract description Value Selection process* Consultancy reason
Economic Insights Variation

Developing Indicators for the Evaluation of Infrastructure Regulation.

$13 012

Direct

Need for independent research or assessment

Regulatory Economics Ltd

Developing Indicators for the Evaluation of Infrastructure Regulation’

$70 000

Direct

Need for independent research or assessment

WaccDorc Pty Ltd—Variation

Economic advice as requested particularly in the area of Finance theory

$75 000

Direct

Need for independent research or assessment

McGrathNicol

Research into the presence of certain specified terms in standard-form consumer contracts

$66 374

Panel

Need for independent research or assessment

Berkeley Research—Variation

BHP Billiton and Rio Tinto Ltd—joint venture in Western Australia iron ore production

$25 000

Direct

Need for independent research or assessment

University of Melbourne—Variation

Finance Theory—Professor Kevin Davis

$50 000

Direct

Need for independent research or assessment

CBDKM

Development of corporate division client service charter

$45 000

Direct

Skills currently unavailable

ACIL Tasman—Variation

Market Analysis Investment Signals and General Equilibrium

$17 250

Panel

Need for independent research or assessment

Tylogen Pty Ltd

Authorisation A91227 & A91228 lodged by Virgin Blue Airlines Pty Ltd and others.

$30 000

Direct

Need for independent research or assessment

Frontier Economics—Variation

Swift Australia Pty Ltd’s proposed acquisition of Rockdale Beef Pty Ltd

$40 000

Panel

Need for independent research or assessment

Cordelta—Variation

ACCC Information Technology Security Advisory (ITSA)

$29 040

Direct

Skills currently unavailable

Nuttall—Variation

Victorian electricity distribution businesses 1/1/ 2011 to 31/12/2015 regulatory control period

$242 177

Panel

Need for independent research or assessment

Motorbis—Variation

Modelling services VIC electricity distribution network determinations

$140 400

Panel

Need for independent research or assessment

Resolve Advisors—Variation

Dispute resolution adviser under Part 15C of the National Gas Rules

$20 000

Direct

Need for independent research or assessment

ACIL Tasman—Variation

Forecast max demand, energy and customer numbers VIC electricity distribution businesses

$15 000

Panel

Need for independent research or assessment

West Economics Consultants

Authorisation A91227 & A91228 lodged by Virgin Blue Airlines Pty Ltd and others

$70 000

Direct

Need for independent research or assessment

Risk Management Partners

Risk management and governance advice

$24 500

Direct

Skills currently unavailable

UoM Commercial Ltd

The AER electricity distribution determinations for Victoria for 2011–15

$66 000

Direct

Need for independent research or assessment

Tylogen Pty Ltd

Air New Zealand Ltd—proposed acquisition of 14.9 per cent interest in Virgin Blue Holdings Ltd

$10 000

Direct

Need for independent research or assessment

Impaq Consulting—Variation

AER’s Victorian electricity distribution determinations for the Victorian Network Distribution Service Providers

$40 095

Panel

Need for independent research or assessment

ABARE

Survey of Irrigators in relation to Water Market Intermediaries

$45 000

Direct

Skills currently unavailable

Wilson Cook & Co—Variation

AER’s Queensland and South Australian gas distribution determinations (2011–16)

$264 186

Panel

Need for independent research or assessment

Investment Trends

Report on the Wealth Management Industry

$27 500

Direct

Skills currently unavailable

ACIL Tasman—Variation

Market Analysis Investment Signals and General Equilibrium

$63 789

Panel

Need for independent research or assessment

Motorbis

Assistance in assessing the Victorian distribution network provider (DNSPs) revised budget and charges applications under the Advanced Metering Infrastructure (AMI) order in council (OIC).

$26 400

Panel

Need for independent research or assessment

Parsons Brinckerhoff Australia Pty Ltd

Technical and commercial advice in relation to Ergon Energy’s application to the Australian Competition Tribunal for a review of the AER’s Queensland electricity distribution determination for 2010–15.

$30 000

Panel

Need for independent research or assessment

ACIL Tasman Pty Ltd

Review of the access arrangement proposal for gas distribution networks in Qld and SA for the period 1/7/11 to 30/6/16

$83 210

Panel

Need for independent research or assessment

David Mackrell

Scoping inquiry

$15 000

Direct

Need for independent research or assessment

Energy & Management Services

Reviewing the AER’s service target performance incentive scheme model

$20 000

Direct

Need for independent research or assessment

Wilson Cook & Co

Review of the AER’s access arrangement decision for the JGN NSW Gas Distribution

$34 463

Panel

Need for independent research or assessment

Parsons Brinckerhoff Australia Pty Ltd

Advice on the level of assurance to be provided on the NSW/ACT DNSPs service standards reporting scheme (STPIS) audit requirements for 2009–10

$15 000

Panel

Need for independent research or assessment

Access Economics Pty Ltd—Variation

Labour Cost Growth Consultancy Services

$117 040

Panel

Need for independent research or assessment

SKM

Murray Darling Basin Mapping

$36 328

Panel

Need for independent research or assessment

ACIL Tasman

NSW Electricity modelling

$35 750

Panel

Need for independent research or assessment

SIRCA

Engagement of consultants on the RDB dividend drop-off

$19 964

Direct

Need for independent research or assessment

Monash University—Variation

The provision of scientific advice relating to the basis of claims made by a corporation regarding oxo-degradable plastics

$21 862

Direct

Need for independent research or assessment

Allegany Consulting

Individual development planning

$16 885

Direct

Need for independent research or assessment

NERA Australia Pty Ltd

Advice and peer review relating to the economic rationale for backhaul transmission bottlenecks and the number and location of initial points of interconnect to the National Broadband Network

$65 208

Panel

Need for independent research or assessment

ACIL Tasman

Review of the Amadeus Pipeline

$19 889

Panel

Need for independent research or assessment

Wilson Cook & Co

Review of the Amadeus Pipeline

$20 000

Panel

Need for independent research or assessment

Motorbis Pty Ltd

Review of the compliance work undertaken by AER staff, and advise staff of relevant issues pertaining to the DNSPs tariff submissions that require, if necessary, further investigation

$35 200

Panel

Need for independent research or assessment

Motorbis Pty Ltd

Aurora Energy Electricity Distribution Determination

$158 400

Panel

Need for independent research or assessment

McGrath Nicol

Technical advice in relation to the Jemena Gas Networks

$10 000

Panel

Need for independent research or assessment

Nuttall Consulting

Determinations to be applied to direct control services provided by Aurora Energy in Tasmania 2012–17 regulatory control period

$411 400

Panel

Need for independent research or assessment

Frontier Economics—Variation

Review and report on Diversified Specifics response to Frontier Economics comments on its demand forecasting model for Australia Posts mail volumes.

$20 450

Panel

Need for independent research or assessment

Motorbis Pty Ltd

Development of financial templates and models for use by the Victorian DNSPs for their AMI budget and charges applications for the subsequent AMI budget period (2012–15)

$17 600

Panel

Need for independent research or assessment

NERA Australia Pty Ltd—Variation

Preparation and completion of expert evidence and preparation for appearance at trial

$193 168

Panel

Need for independent research or assessment

Ernst & Young

Review of AER’s transmission roll forward model and post-tax revenue model

$22 000

Panel

Need for independent research or assessment

University of Melbourne

The AER gas distribution access arrangement reviews for Queensland and South Australia for 2011–16

$19 800

Direct

Need for independent research or assessment

Deloitte

Provision of water trading data analysis

$10 000

Panel

Need for independent research or assessment

Oakvale Capital Limited

Review of DRP report by CEG in respect of JGN merits review

$83 000

Direct

Need for independent research or assessment

UoM Commercial Ltd

Review of DRP report by CEG in respect of JGN merits review

$33 000

Direct

Need for independent research or assessment

SIRCA

The appeal of the AER’s electricity distribution determinations for Queensland and South Australia for 2010−2015.

$30 000

Direct

Need for independent research or assessment

Energy & Management Services

Advice on Energy Australia’s NSW Solar Bonus Scheme (SBS) cost pass through application

$15 400

Direct

Need for independent research or assessment

Tanner James Management Consulting

Deliver a P3M3 maturity assessment and capability plan

$32 670

Direct

Need for independent research or assessment

Nuttall Consulting

Assist the AER’s assessment of the Electra Munno-Para contingent project

$16 400

Panel

Need for independent research or assessment

Leadership Management Australia—Variation

Mentoring Program

$19 800

Direct

Skills currently unavailable

Frontier Economics

Review of the 2009–10 Water Monitoring Report

$24 750

Panel

Need for independent research or assessment

Synergy Group Australia Limited

Analysis of options in providing outsourced IT Helpdesk and BAU IT infrastructure support

$60 192

Direct

Need for independent research or assessment

Motorbis

Modelling Services—review related matters for the Victorian Distribution Network Services Providers

$26 400

Panel

Need for independent research or assessment

CECG Pty Ltd

Advice in relation to Consolidated Press Holdings Limited and Illyria Nominees Television Pty Limited—acquisition of shares in Ten Network Holdings Limited

$23 100

Panel

Need for independent research or assessment

Marsden Jacob Associates

Fixed Line Services Model (FLSM)

$23 320

Panel

Need for independent research or assessment

Motorbis

Provide assistance to AER staff in reviewing AMI budget and charges template for the 2012–15 AMI budget period

$35 200

Panel

Need for independent research or assessment

Impaq Consulting—Variation

Assist AER staff in determining if the proposed AMI expenditure for 2012–15 is inside scope

$160 754

Panel

Need for independent research or assessment

Leadership Management Australia—Variation

Mentoring program for executive level staff

$19 998

Direct

Need for independent research or assessment

Ernst & Young

Drafting of elements of the Australian Energy Regulator’s (AER’s) response to the revised access arrangement proposals submitted by the Queensland and South Australian gas Distribution Network Service Providers (DNSPs)

$118 395

Panel

Need for independent research or assessment

McGrathNicol

Assessment of the appropriateness of forecast corporate income tax and amendments to cost allocation methodology for Aurora

$35 000

Panel

Need for independent research or assessment

Cadency Consulting

Technical assistance to review Powercor’s pass through application

$45 980

Direct

Need for independent research or assessment

Buchan Consulting Pty Ltd

The provision of a stakeholder survey consultancy 2011

$36 795

Direct

Need for independent research or assessment

University of Melbourne

AER gas distribution access arrangement reviews (final decision) for QLD and SA for 2011–16

$33 000

Direct

Need for independent research or assessment

NICNAS

Expert opinion regarding the Keratin Hair Smoothing treatment

$10 000

Direct

Skills currently unavailable

Energy Market Consulting Associates

Powerlink transmission determination 2012–17

$669 280

Panel

Need for independent research or assessment

SKM

Aurora distribution determination 2012–17

$86 900

Panel

Need for independent research or assessment

Frontier Economics

RIT-T Issues

$30 000

Panel

Need for independent research or assessment

Data Analysis Australia (DAA)

Advice and Peer review relating to modelling of prices for Domestic Transmission Capacity Service (DTCS)

$10 120

Panel

Need for independent research or assessment

Clarus Consulting Pty Ltd

CRM and IVR tool selection project

$38 475

Direct

Need for specialised or independent skills

John V Savage

Assisting the AER on wholesale gas market issues

$20 000

Direct

Need for independent research or assessment

EcoAssist Pty Ltd

Expert economic advice in relation to the Air Cargo proceedings

$20 000

Direct

Need for independent research or assessment

Fujitsu Australia Limited

The development of a technology roadmap for the ACCC

$72 589

Direct

Need for independent research or assessment

Total Decision Support Pty Ltd

Review of Compliance with the Financial Management and Accountability Act 1997

$11 088

Direct

Need for independent research or assessment

Deloitte

Powerlink and Aurora labour cost escalation services

$111 320

Panel

Need for independent research or assessment

Frontier Economics

Advice in relation to price equivalence measures proposed by Telstra regarding its SSU

$19 250

Panel

Need for independent research or assessment

EMCa

Demand forecasting services for the 2012–17 Powerlink transmission determination

$128 938

Panel

Need for independent research or assessment

Bruce Farquhar

Expert report on current practices in warning Labels in Product Safety Standards

$15 000

Direct

Skills currently unavailable

Resolve Advisors

The role of Dispute Resolution Advisor under the National Electricity and Gas Rule

$242 125

Open

Need specialised or professional skills

Informed Sources—Variation

The provision of retail fuel price data

$228 012

Open

Need for specialised or independent skills

WaccDorc Pty Ltd

Economic advice as requested particularly in the area of Finance theory

$37 000

Direct

Need for independent research or assessment

* Explanation of selection process terms drawn from the Commonwealth Procurement Guidelines (December 2008):

Open Tender:

A procurement procedure in which a request for tender is published inviting all businesses that satisfy the conditions for participation to submit tenders. Public tenders are generally sought from the Australian Government AusTender internet site.

Select tender:

A procurement procedure in which the procuring agency selects which potential suppliers are invited to submit tenders (this includes tenders submitted through Multi Use Lists). This procurement process may only be used under certain defined circumstances.

Direct sourcing:

A form of restricted tendering, available only under certain defined circumstances, with a single potential supplier or suppliers being invited to bid because of their unique expertise and/or their special ability to supply the goods and/or services sought.

Panel:

An arrangement under which a number of suppliers, initially selected through an open tender process, may each supply property or services to an agency as specified in the panel arrangements. Quotes are sought from suppliers that have pre-qualified on the agency panels to supply to the government. This category includes standing offers and supplier panels where the supply of goods and services may be provided for a pre-determined length of time, usually at a pre-arranged price.