Government Contracts

In reply to Mr COWDREY (Colton) ((17 June 2022).). (Estimates Committee B)

The Hon. S.C. MULLIGHAN (Lee—Treasurer): I have been advised:

The three current highest value across-government contracts are the:

Across Government Facilities Management Agreement (AGFMA) contract managed by the Department for Infrastructure and Transport. The AGFMA contract was awarded to Ventia Australia Pty Ltd for the provision of facilities management services to SA Government agencies and commenced on 1 December 2021 for an initial term of five years and seven months, expiring on 30 June 2027. The contract includes a further three two-year extension options. The approved total contract value is $2.08 billion (for the initial term), with an estimated annual contract value of $372.54 million.

Temporary Staff Services Panel contract managed by the Department of Treasury and Finance (DTF), which provides SA government agencies access to temporary staff to undertake short to medium term assignments in order to manage peak and seasonal workloads, cover periods of absence by permanent staff or obtain specialist skills. The contract commenced on 1 December 2016 and is due to expire on 30 November 2022. The approved total contract value is $562 million and annual contract expenditure in 2021 was $189 million. A retendering exercise to replace the current contract is underway.

Across Government Electricity Retail Agreement (AGERA) managed by DTF provides electricity supply to SA Government agencies. The AGERA was awarded to ZEN Energy for an initial term of 10 years and two months and commenced on 1 November 2020. The contract includes an option to extend for a further five years. The approved total contract value is $1.53 billion, with an estimated annual contract value of $106 million. This contract is currently subject to negotiations aimed at remedying ZEN Energy's inability to deliver the committed energy generation and storage projects.