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Northern Territory Auditor-General's Office, February 2023 Report to the Legislative Assembly



Northern Territory Auditor-General's Office, February 2023 Report to the Legislative Assembly

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Tabled Paper 772


Tabled Papers for 14th Assembly 2020 -; Tabled Papers; ParliamentNT




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Legislative Assembly of the Northern Territory

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Legislative Assembly of the Northern Territory



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Auditor-General for the Northern Territory February 2023 Report Page 76 of 131 Modular Housing cont In addition to the JSC, there is also an operational committee which meets fortnightly and a departmental head/ executives group which meets monthly, both of whom have an oversight role and can influence program delivery. Risk management A risk register directly associated with the delivery of remote housing was developed to facilitate strategic oversight by the JSC. There is also a comprehensive operational risk register associated with the Our Community Our Future Our Homes program and a related operational risk report. The operational risk report addresses project risks at a high level but does not allocate responsibility for managing the risks to specific individuals or establish timeframes for implementation of specific strategies intended to mitigate identified risks. DIPL has a risk appetite statement that was updated in 2022 and all areas of the agency had involvement in the update. There is guidance on the intranet to assist employees in identifying risks, controls and mitigating strategies. DIPLs risk management framework is yet to be updated to ensure it appropriately encompasses the activities of the Housing Program Office following machinery of government changes. DIPL representatives advised there is currently a project underway to establish an overarching risk management framework for the Housing Program Office which is intended to form part of the broader Agency risk management framework. A risk register specific to the Housing Program Office is being developed. Procurement of panel to deliver modular housing products Monitoring of the progress of the program identified that delays both at the commencement of the remote housing program and as a result of the travel restrictions imposed through the governments response to COVID-19 presented significant risks to achievement of the programs targets within the timelines specified by the funding agreements. In order to accelerate the delivery of housing, the NTG proceeded to market to seek proponents willing to offer alternate construction solutions to deliver the remote housing program. Observations related to the procurement process are listed below. The Procurement Activity Plan was not signed to demonstrate formal approval. The Future Tender Opportunity notification was released to the market on 25 March 2020. Request for Tender All Regions Homebuild NT Panel Contract for Prefabricated Dwellings for a Period of 12 Months [T20-1257] was released 15 June 2020 There was an addendum to the RFT issued providing an extension to RFT closure date to 27 July 2020 (originally scheduled to close on 13 July 2020) The estimated value of the period panel contract was $47 million and was premised on a projected program of works of 100 dwellings in the initial contract period (12 months). The cost estimate assumed an allocation of $470,000 per dwelling which allowed for the design, construction, transportation and installation of a single asset. The allocation of $470,000 was consistent with the average tenderer cost of 3 bed dwellings in the previously existing Panel Contract [T18-2514]. Nine entities responded to the Request for Tender.