FOI 25/26-1368 DOCUMENT 6
OFFICIAL
APPROVAL TO ENTER INTO AN AGREEMENT
PROC-4807–FOR THE PROVISION OF NEEDS ASSESSSMENT TOOLS TO SUPPORT NDIS REFORM INITIATIVES
1. Purpose
1.1. Your approval is required to adopt the recommendations in the Negotiation Report (Attachment A) relating to the Approach to Market (ATM) PROC-4807–for the provision of Support Needs Assessment Tool(s) to support NDIS reform initiatives.
1.2. In accordance with the NDIA Accountable Authority Instructions and Financial Authorisations, your approval, as the Financial Delegate, is required to award a contract to:
Table 1: Proposed Agreement Overview
| Supplier: | University of Melbourne (ESSentials Vendor number: 1009702) |
|---|---|
| Services: | The provision of support needs assessment tool(s) related operational services and a system integration solution |
| Decision Reference: | EC25-000320 – Proposal to undertake a Procurement EC25-002555 – Approval to Enter into Negotiations |
| Record location: | PROC-4807 |
| Procurement category: | General goods and services |
| Value (initial term): | Total agreement value for the initial term: $28,855,537 (GST inclusive) |
| Total value (if all contract extensions are exercised): | Maximum value of the arrangement: redacted: s47G - business information (GST inclusive).Additional funding will be required if the parties agree to contract extensions in 2030. Approval will be sought from the Financial Delegate before any extension options are exercised. |
| Applicable panel: | N/A |
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| Commencement date: | 20 August 2025 or on execution by the NDIA Financial Delegate |
|---|---|
| Expiry date: | 5 years from the Commencement date. |
| Initial term: | 5 years |
| Extensions: | Up to 5 years |
| Contract Manager’s details: | redacted: s47F - personal privacy |
2. Procurement process overview
2.1. The CEO approved the Proposal to undertake a Procurement on 04 February 2025 in PDMS (EC25-000320).
2.2. The Request for Tender was released through AusTender on 05 February 2025 with a Closing Time of 1400 on 28 March 2025.
2.3. redacted: s47G - business information
Details are included in the Evaluation Report included in Attachment A in PDMS – EC25-002555.
2.4. The evaluation process was completed on 17 June 2025, which recommended that the NDIA enter into negotiations with the University of Melbourne to improve value for money outcomes and reduce risk.
2.5. You signed the Negotiation Directive to support this activity on 30 June 2025 (EC25-002555).
2.6. Negotiations were undertaken over the period early July to early August 2025, with all matters in the Negotiation Directive satisfactorily resolved.
2.7. The Negotiation Report which provides the final value for money assessment, risk rating and the recommended outcomes for this procurement process is at Attachment A.
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Risk rating
2.8. Following negotiations, the overall risk rating for entering into an agreement with Melbourne University is medium. The full risk assessment, together with the proposed mitigations, is included in the Negotiation Report in Attachment A.
2.9. redacted: s42 - legal professional privilege, s47G - business information
2.10. redacted
Value for Money
2.11. As detailed in the Negotiation Report, this procurement outcome is considered to represent value for money to the Commonwealth as:
- a)
redacted: s47G - business information - b) The Tenderer’s support needs assessment tool is the best solution available of those Tenderers that passed initial screening to the technical evaluation to meet the NDIA’s reform objectives;
- c) Through negotiations, the NDIA and the Tenderer resolved the NDIA’s issues with the Tenderer’s submission, relating to the services to be delivered. The services are detailed in the refined Statement of Requirements;
- d)
redacted: s47G - business informationthe tool is far more suitable to the NDIS context than other tools offered, and the proposed personnel have significantly more relevant experience related to assessing support needs than other Tenderers, which contributed to value for money; - e)
redacted: s47G - business information - f) While the final agreed pricing is approximately 5% ($1.5m) higher than that proposed by the University of Melbourne in its tender submission, this
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differential is due to offer clarification and the increased scope of workforce training and support required by the Agency ($2.9m more than originally tendered for). Other proposed services (relating to stakeholder engagement and operationalisation support) were reduced in scope, with associated pricing for those services also reduced as a result ($1.4m less than originally tendered for).
- g) The procurement will use public resources in an efficient, effective, economical and ethical manner that is consistent with the policies of the Commonwealth and Agency;
- h) the proposed solution will facilitate accountable and transparent decision making, including through the delivery of Workstream 3, outlined in the Statement of Requirements
- i) the proposed solution / proposed approach encourages appropriate engagement with risk;
- j) the price is commensurate with the scale and scope of the business requirement, and;
- k) The Evaluation Committee and Negotiation Team used the Evaluation Plan to determine how value for money could be achieved through an assessment of the demonstrated technical capabilities, financial costs, and risks associated with each of the submissions.
2.12. This Approval to enter into an Agreement does not involve payment in advance of goods or services being received (prepayment) under the Finance Policies.
3. AAI Exemption
3.1. This procurement was compliant with the AAIs, and therefore no exemption was required.
4. Financial Management Compliance System (FMCS) Breach
4.1. Not applicable.
5. Budget
Initial term of the arrangement
5.1. The value of the initial term of the proposed arrangement is $28,855,537 (GST inclusive), inclusive of travel expenses and other contingencies, as identified in Table 2: Fixed price amount for the initial term.
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Table 2: Fixed price amount for the initial term
redacted: s47G - business information
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| Description of Services | Total Price (GST exclusive) | GST Component | Total Price (GST inclusive) | ESSentials code |
|---|---|---|---|---|
redacted: s47G - business information |
5.2. The Supplier is not entitled to be reimbursed for any expenses, unless prior approval is obtained in writing from the buyer.
Maximum value of the arrangement
5.3. The maximum value of the proposed arrangement is redacted: s47G - business information (GST inclusive), unless the NDIA requests the Supplier to quote for additional services and these are agreed by the NDIA via a variation to the arrangement.
5.4. Spending authority has only been provided for the initial term of the contract. The New Framework Policy Branch will seek additional spending approval from 2030 if any contract extension options are exercised.
Forward year commitment
5.5. A forward-year commitment is required for this arrangement. The current and forward year committed funds required are detailed below.
5.6. By signing this Approval to enter into an Agreement, the Financial Delegate is declaring that they have sufficient unallocated funds available in the financial years specified.
Table 3: Forward Year Cost Projections – initial term (by Financial Year)
redacted: s47G - business information
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Table 5: Forward Year Cost Projections – contract extensions (by Financial Year)
redacted: s47G - business information
5.7. Total including all possible extensions: redacted: s47G - business information
Account details including Cost Centre
5.8. The below account details apply to this procurement:
Table 6: Account Details
| Cost Centre | GL Account | Product Category |
|---|---|---|
| 90714 | 42530 – Contractors – Non IT | Business Admin Services |
Admin fee for the Panel
5.9. Not applicable.
6. Approving commitments of Agency money
6.1. Not applicable.
7. Advice relating to the procurement process
7.1. The Procurement Manager has consulted with Procurement Branch during the completion of this document. The Procurement Advisor was redacted: s47F - personal privacy.
7.2. Clayton Utz were engaged as the probity adviser as part of this procurement activity, and their written sign off on the evaluation process and conduct at negotiations is at Attachment C.
7.3. Maddocks provided legal advice as part of this procurement activity, and its legal sign off is at Attachment D. Agency Legal Services Branch was also consulted during the procurement process.
7.4. The Procurement Manager has consulted with redacted: s47F - personal privacy, Budget Management, Strategy and Support Branch to confirm that, following CEO support provided on 13 August 2025, and pending Resourcing Committee approval, there will be sufficient funds available within the cost centre for the payment milestones outlined in Schedule F of the contract (Attachment B), including the initial payment of redacted: s47G - business information for the tool.
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7.5. Additionally, the Policy and Practice Leadership Division consulted the following individuals and select members of their teams to develop the Statement of Requirements for the contract:
redacted: s47F - personal privacy
8. Deviations from the probity and legal advice given
8.1. The evaluation process and this Approval to Enter into an Agreement comply with the probity and legal advice provided, subject to any exceptions stated in the relevant sign-offs from those advisors.
9. Parties external to the procurement process seeking to influence the outcome
9.1. No stakeholders have sought to direct aspects or outcomes of this procurement activity.
10. Compliance with relevant NDIA policies and directives
10.1. As required under the NDIA Procurement Policy, redacted: s47F - personal privacy has consulted with Procurement Branch during the completion of this document. The Procurement Adviser was redacted: s47F - personal privacy and redacted: s47F - personal privacy.
10.2. As required under the NDIA Procurement Policy, I confirm that I have undertaken the Procurement Fundamentals LEAP module.
10.3. This Approval to enter into an Agreement has been prepared in accordance with the NDIA Procurement Policy, NDIA Accountable Authority Instructions and Financial Authorisations, and the NDIA Probity Protocol that requires all Officers to declare conflicts of interest.
10.4. One conflict of interest was identified through this procurement process that required recusal from the procurement process:
- a)
redacted: s47F - personal privacyrecusedredacted: s47F - personal privacyfrom any involvement in the procurement due to a declared personal friendship with a person who works at the University of Melbourne. This recusal took place as soon asredacted: s47F - personal privacybecame aware that the University of Melbourne was likely to
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submit a tender, and redacted: s47F - personal privacy had no involvement in the evaluation process once the procurement was closed. The Evaluation Committee determined that the declared conflict of interest did not affect the procurement process, and no further action was required.
10.5. All other declared conflicts of interest were deemed to be insignificant with no impact on the procurement process, and no further action was required. These were managed in accordance with advice from the Probity Adviser and are formally documented in the COI Declarations and Probity Issues Raised Register.
10.6. No other conflicts of interest were identified in the preparation of this Approval to enter into an Agreement, the Evaluation Report or the Negotiation Report.
| Name | redacted: s47F - personal privacy |
|---|---|
| Position Title | |
| Signature | |
| Date | 14 August 2025 |
11. Further consultations and endorsements
Evaluation Chair/ Negotiation Chair/ Procurement Owner Endorsement
11.1. I have read this Approval to enter into an Agreement and Evaluation Report:
- a) I endorse the procurement process undertaken and the recommendations in the Negotiation Report,
- b) I confirm that there are sufficient unallocated funds available within the cost centre,
- c) As required under the NDIA Procurement Policy, I confirm that I have undertaken the Procurement Fundamentals LEAP module, and
- d) I confirm that I have no known conflicts of interest in providing this endorsement, and I understand my confidentiality obligations.
| Name | redacted: s47F - personal privacy |
|---|---|
| Position Title |
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| Decision | Endorsed |
|---|---|
| Decision comment | Endorsed |
| Signature | redacted: s47F - personal privacy |
| Date | 14 August 2025 |
redacted: s47F - personal privacy
11.2. I have read this Approval to enter into an Agreement and I:
- a) am satisfied that the procurement methodology is in accordance with the policies of the Commonwealth and the Agency.
- b) confirm that I have no known conflicts of interest in providing this approval, and I understand my confidentiality obligations.
| Name | redacted: s47F - personal privacy |
|---|---|
| Position Title | |
| Decision | Approved |
| Comment | Nil |
| Signature | redacted: s47F - personal privacy |
| Date | 14 August 2025 |
12. Financial Delegate Approval
12.1. I have read this Approval to enter into an Agreement and the Negotiation Report and I:
- a) approve the recommendations in the Negotiation Report and this Approval to enter into an Agreement,
- b) approve entering into an agreement with Melbourne University in accordance with the terms in Section 1 of this document, and
- c) approve the risk assessment undertaken together with the proposed mitigations detailed in the Negotiation Report.
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12.2. In making this decision, I confirm:
- d) I note the Legal advice on the limited liability cap and provide approval to enter into an agreement in accordance with section 3.8 of the NDIA Accountable Authority Instructions (AAIs) and Financial Authorisations,
- a) confirm this procurement will make efficient, effective, ethical, and economical use of public money,
- b) this decision is within my financial delegations in accordance with the NDIA Accountable Authority Instructions and Financial Authorisations,
- c) this decision is in accordance with the policies of the Commonwealth and the NDIA including the CPRs, NDIA Procurement Policy and the NDIA Probity Protocol, and
- d) I have no known conflicts of interest in providing this decision, and I understand my confidentiality obligations.
| Name | redacted: s47F - personal privacy |
|---|---|
| Position Title | |
| Decision | Approved |
| Decision comment | I support and endorse the recommendations made by the panel and negotiating team. Contract value and associated terms, including in the schedules, are all approved. Well done to all involved in this complex process. |
| Signature | redacted: s47F - personal privacy |
| Date | 14 August 2025 |
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Attachment A – Negotiation Report
File name: FOR INFORMATION – PROC-4807 – NEGOTIATION REPORT
Attachment B – Contract (Marked Up)
File name: FOR INFORMATION - PROC-4807 - Attachment B - Contract (Marked Up Version) File name: FOR INFORMATION - PROC-4807 - Attachment B - Contract (Marked Up Version) – Schedule C – Statement of Requirements
Attachment C – Probity Adviser Sign Off
File name: FOR INFORMATION – PROC-4807- Attachment C – Probity Sign Off Letter
Attachment D – Commercial Law Adviser Sign Off
File name: FOR INFORMATION – PROC-4807- Attachment D – Commercial Law Advisor Final Legal Sign-Off
Attachment E – Liability Risk Assessment
File name: FOR INFORMATION – PROC-4807- Attachment E – Liability Risk Assessment
Attachment F – Summary of Contract Departures
File name: FOR INFORMATION – PROC-4807- Attachment F - Contract Departures
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