FOI 24/25-1795 DOCUMENT 3
Delivered by the National Disability Insurance Agency
SCHEDULE 3 OFFICIAL ORDER
Official Order number redacted: s47E(d) - certain operations of agencies
1. Context
This Official Order is issued and agreed pursuant to and subject to the terms and conditions of the Deed between Finance and McKinsey and Co dated 21 December 2016.
2. Ordered Services
The Supplier must provide expert strategic advice and guidance to the NDIA in preparing a response to the Disability Reform Council (DRC) on the topic of Specialist Disability Accommodation (SDA).
The Supplier must, without limitation, deliver three main deliverables for the project. The first two deliverables will be provided to DRC in response to actions from the November 2017 meeting and the first document will be published to address wider investor concerns that may be in the market. The third deliverable will be provided to the internal audit and risk committee.
The three deliverables are:
- Further information to the market to enable clearer evaluation of the merits of investing in the SDA, including: a. the long-term commitment to SDA as part of the NDIS; b. the principles of SDA funding for NDIS participants and the future direction of price regulation for SDA; c. the capacity of SDA providers to charge rents to non-SDA residents; d. the commitment to the development of standards for the certification process and other measures to streamline the property enrolment process; e. confirmation that there are no caps on the number of eligible participants who may be found to require SDA, or on compliant dwellings that can be enrolled; and f. confirmation that participants will have choice and control in relation to their SDA tenancy, with no preference for legacy stock (previously favoured under in-kind arrangements); and g. advice to the DRC on mechanisms that may provide signals of longer-term certainty, such as demand data for release to the market.
- A summary of management responses to the internal audit of SDA conducted by EY in 2017 and identification of further opportunities to strengthen plans and processes, where appropriate.
2. APPROACH AND WORK PLAN
- The work will be carried out in three phases with an initial delivery of outputs for the February Board meeting, with the option of further support up to the April Board meeting and DRC meeting, based on any additional requests from the Board (Phase Two).
2.1. Phase One - (~3.5 weeks): Consultation and preparation of response paper for DRC and publication
2.1.1. The objective of Phase One is to prepare a response document for DRC addressing items 1 and 2 above. In order to produce this response, the Supplier must validate key stakeholder concerns relating to SDA pricing, including testing draft responses. NDIA already has work underway and Phase One will involve reviewing, validating and synthesising existing work.
2.1.2. Phase one (~ 3.5 weeks) includes without limitation:
a. project set-up to: i. agree on the project framing, including the problem statement and project plan, and establish our working model with the NDIA team; ii. identify key stakeholders, develop a consultation plan and set up meetings; iii. identify adjacent sectors that may provide useful benchmarks or learnings from investors (e.g. aged care); and iv. engage with the NDIA team to understand and review work underway on the merits of investing in SDA (for item 1), and the Scheme Actuary and Chief Economist to understand current supply/demand modelling (for item 2).
b. a working session with NDIA’s housing team to identify options to improve investment attractiveness; c. prepare draft of market communications document, based on review of existing NDIA work; d. test content of market communications document with key stakeholders (as agreed with NDIA), which may include States and Territories, DSS, Assistant Minister Prentice, NDIA Board members, SDA providers and banks to assess if advice will provide required certainty to the market; e. work with the Scheme Actuary and NDIA team to develop a draft ‘roadmap’ for how updates to the market will be made in the future including timing, data sources, and topic areas, aligning this with existing processes (e.g. local market questionnaire, market intervention strategy); f. Finalise and deliver: i. consultation summary, including commentary on content testing;
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ii. full draft market communications document for SDA designed to provide greater surety to the market (content only, NDIA to provide templates for design); iii. draft ‘roadmap’ for how updates to the market will be made in the future, aligned with existing processes; and
g. Prepare a cover paper for the NDIA Board meeting on 22 February (for submission on 16 February), describing the background and context and introducing, discussing and attaching the documents listed above (i-iii).
2.2. Phase Two - Preparation of summary document of management responses to internal SDA audit
2.2.1. The objective of Phase 2 of the project is to review the findings of the internal audit and assess and document current management responses.
2.2.2. The Supplier must without limitation:
a. review risks highlighted in EY’s audit of SDA systems and processes; b. engage with the NDIA team to understand current management responses and, where appropriate, identify further opportunities to strengthen current plans and processes; and c. prepare a short (5-10 page) summary document for the internal audit and risk committee.
2.3. Phase Three - Refinement of deliverables and preparation of final response document for DRC
2.3.1. Following the February Board meeting, further work may be required to refine deliverables and prepare the final response document for DRC. At the end of Phase Two the Supplier and NDIA will agree the nature and extent of support required.
3. Policies, Standards and Guidelines
None specified
4. Required Contract Material
As specified above in 2. Ordered Services.
5. Commencement and Time frame
Contract Commencement Date:
Upon execution of this Contract.
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Time frame:
Until completion date – 30 June 2018.
6. Specified Personnel
- Charlie
redacted: s47F - personal privacy(days per week) - Jules
redacted: s47F - personal privacy - Meaghan
redacted: s47F - personal privacy - Sahil
redacted: s47F - personal privacy -
- one additional full-time consultant TBA
7. Fees, allowances and costs
An invoice must be submitted within 20 Business Days of completing the Ordered Services.
Invoice Address:
and a copy to be emailed to:
redacted: s47F - personal privacy@ndis.gov.au
Project set-up – no costs
Phase One $142,000.00 excluding GST
Phase Two $426,000.00 excluding GST
Total amount not to exceed $568,000 (GST exc), $624,800 (GST Inc)
8. Commonwealth Material
Non specified
9. Security and privacy
None specified
10. Service Provider’s Confidential Information
(a) Contract Provisions/Schedules/Attachments
| Item | Period of Confidentiality |
|---|---|
| Not specified | Not specified* |
(b) Contract-related material
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| Item | Period of Confidentiality |
|---|---|
| Not specified^ |
11. Special Conditions
| Condition | Clause of Deed Affected (if any) |
|---|---|
| Not Specified |
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Signed for and on behalf of the
NATIONAL DISABILITY INSURANCE AGENCY
ABN 25 617 475 104:
Vicki redacted: s47F - personal privacy
^Name^
Agency’s Representative
redacted: s47F - personal privacy
Signature
9/03/18
Date
Signed for and on behalf of McKinsey Pacific Rim Inc (ABN 66 055 131 443)
by:
redacted: s47F - personal privacy
JULDAN
^Name^
redacted: s47F - personal privacy
Signature
27/03/18
Date
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