DTA “partly effective” in ICT procurement reforms

The Digital Transformation Agency (DTA) has been “partly effective” in implementing procurement reforms around ICT related-services, according to a report from the Australian National Audit Office (ANAO).

The reforms were recommended after an Auditor-General Report released in 2022 found that procurement of ICT-related services by the DTA had been ineffective for nine procurements examined by the ANAO.

The ANAO found that the improvements expected through the implementation of the 2022 recommendations have not yet been embedded and do not yet ensure that the DTA’s procurement processes fully comply with the Commonwealth Procurement Rules (CPRs) and their intent of achieving value for money.

The ANAO did, however, observe improvements in the DTA’s internal procurement activities when compared to the 2022 report, but noted that areas for improvement remain.

Shortcomings in processes around risk

As part of the 2025 audit, the ANAO made five recommendations - all of which were accepted by the DTA - seeking to alleviate issues in four procurements that were analysed by the ANAO.

Analysing those procurements, which were undertaken by the DTA with dates ranging from March to July 2024, the ANAO found that there were shortcomings in the DTA’s processes to identify, analyse, allocate and treat risk during the procurements.

The audit found that DTA’s Probity Guidelines were not adhered to and the conduct of one procurement fell short of ethical standards as established in the CPRs where suppliers undergoing evaluation were not treated equitably.

For two of the four procurements, documentation in evaluation reports fell short of the expectations established in the CPRs in terms of the consideration of value for money.

AusTender reporting for all four procurements contained incorrect information. For one contract, two of four payments were not paid within the agreed payment terms and one payment was made to an incorrect bank account of the supplier.

One contract was extended when there was no provision for extension, while one amendment did not have the appropriate documented delegate approval before being executed and one amendment was executed after the contract expired.

DTA welcomes conclusions, but disagrees with "partly effective" label

“The DTA welcomes the ANAO’s conclusion that for the procurements examined, planning and approaches to market were largely appropriate, and our practice of seeking quotations from multiple suppliers to promote competition was sound,” the DTA said in a statement included in the report.

“However, the DTA considers the overall conclusion of “partly effective” does not reasonably reflect the significant efforts applied to improve procurement practices nor the reflection of substantially implementing the original recommendations.

“The DTA accepts all five ANAO recommendations and has already initiated the corresponding improvements. This approach will facilitate the effective integration of enhanced processes and controls, ensuring their proper operation as intended.”

Former implementation and oversight of procurement framework “weak”

The 2022 report concluded that the implementation and oversight of its procurement framework had been weak; conduct of procurements had not been effective and its approach fell short of ethical requirements; and the DTA’s management of contracts for the procurements examined was not effective.

The report included nine recommendations; eight were directed to the DTA and were agreed to. These recommendations were aimed at improving compliance with the CPRs and ensuring officials have a sufficient understanding of procurement requirements.

In September 2022, the Joint Committee of Public Accounts and Audit (JCPAA) commenced an inquiry into Commonwealth procurement to ‘with a view to improving the culture of how procurement rules and guidelines are implemented across the Australian Public Service’.

In August 2023, the JCPAA tabled a report that included 19 recommendations, two of which were in scope for this 2025 audit - the DTA updating the JPCAA on the progress of improvements to its procurement processes and its audit committee reviewing procurement risk and controls; and the DTA ensuring that procurement is subject to the agency’s internal audit program.

The DTA agreed to these recommendations in January 2024.

Of the two selected JCPAA recommendations, the 2025 audit found that DTA implemented one and largely implemented the other. Of the eight selected Auditor-General recommendations, six were largely implemented and two were partly implemented.