PDA

View Full Version : Secret Memo Exposes OneSKY Sensitivities


Dick Smith
19th Feb 2016, 00:06
In an article in The Australian this morning under the above headline, the story covers the “OneSKY Tender” particularly note the paragraph,
“Mr Harfield declined to answer questions, ¬including whether his motive for writing the memo was he thought there was a risk of a breach of probity, and whether, to his knowledge, any breaches of his instructions occurred.”Just how it’s possible to get a proper tender on equipment that has not only to be an air traffic control system for civilian traffic, which is basically flight data processing and flight plan based, as well as a system that will work with the military – which is sometimes the opposite, is beyond me.

I and others have said continuously that this could head to be another Super Seasprite debacle where $1.4 billion (not $1.2 billion) of tax payer’s money (that’s our money) was lost.

Of course by combining it with the military, that gives an excuse to make the whole thing secret – and covers up incompetence – if indeed there is incompetence involved!

If there is anyone who has any “legal” information about OneSKY they can assist me with please get in touch. If everything is going to go off track, it’s important we uncover this urgently before vast amounts of the industry’s money is lost.

Here’s the article from page 28 in The Australian today written by Ean Higgins;

Airservices: secret memo exposes OneSKY sensitivities

A confidential memo from ¬aspiring Airservices Australia chief executive Jason Harfield to key lieutenants within the regulator has exposed the sensitivity of probity issues surrounding the $1.5 billion OneSKY program at the time he was responsible for the program’s delivery.

The memo, written by Mr Harfield in 2013 in his then role as head of future service delivery to “all executive general managers” at Airservices, instructs them on dealing with prospective or actual tenderers for OneSKY.

The move comes as the Australian National Audit Office will in coming months table a report on its investigation into what members of a Senate committee have in hearings have alleged were possible conflicts of interests in the contracting of work on OneSKY.

It also comes as the search continues for a new Airservices CEO, with Mr Harfield acting in that position and making clear he wants the job. Liberal senator Bill Heffernan and Labor senator Glenn Sterle have urged the government, which owns Airservices, to not make an appointment before the ANAO tables its report.

In the internal memo, leaked to The Australian, Mr Harfield tells top Airservices executives “the -following considerations and ¬responsibilities are to be read and understood by affected personnel” regarding OneSKY, which will ¬integrate the nation’s civilian and military air traffic control and navigation systems.

The edicts include not discussing the OneSKY program with “any of your business as usual -contacts unless prior approval has been sought”, and that “all invitations to corporate events and the provision of gifts, from the prospective tenderers provided at Attachment A, should be politely refused.” The attachment lists more than 100 aerospace and other consulting groups and suppliers internationally, including the group which eventually won the prime initial contract, Thales.

The memo also says: “If you are asked questions about the program or receive any unsolicited contact in relation to the program in addition to not answering the question you should let the One-SKY Program — Manager Acquisition know about the contact.”

“These decisions have been taken to protect both the individual and Airservices from any real or apparent conflicts of interest and the perceptions that may be created within the wider industry.”

Mr Harfield declined to answer questions, including whether his motive for writing the memo was he thought there was a risk of a breach of probity, and whether, to his knowledge, any breaches of his instructions occurred.

An Airservices spokesman said: “Airservices, consistent with the approach for handling of tenders for the supply of equipment and/or services to the commonwealth, adopted comprehensive probity measures for the OneSKY project.”

“The memo you refer to was part of the proactive communication.”

Mr Harfield’s LinkedIn page says he was executive general manager for future service delivery from July 2013 to August 2015 and that “in this role I have the ¬accountability for the leadership, acquisition and delivery of Airservices’ next-generation services and harmonised Australian Air Traffic Management system with the Department of Defence”, and that he also held the role of senior responsible owner for OneSKY.

Despite the LinkedIn post and the leaked memo, the Airservices spokesman said it would be wrong to describe Mr Harfield as having principal carriage in Airservices of OneSKY because it would “not reflect how complex projects are managed within the governance structure of large organisations.”

As revealed by The Australian, the ANAO late last year launched an inquiry into contracts awarded by Airservices to consultants associated with an obscure Canberra-based organisation with international military links called the International Centre for Complex Project Management.

At a hearing in August, members of the Senate rural and regional affairs and transport legislation heard ICCPM managing director Deborah Hein is the wife of Steve Hein, who worked for ICCPM until hired by Airservices in a senior role.

One contract Airservices struck with ICCPM was processed by Mr Hein.

le Pingouin
19th Feb 2016, 06:48
So Dick, this was from 2013 so well before any contracts were signed in 2015. Seems to me that it wouldn't be a good look to have Airservices managers talking unofficially to people in the industry about a project that is up for tender - wouldn't be hard to let something slip that got passed along to one tenderer or the other. Thales in particular given we're already a customer?

Or would you prefer a tenderer for a hugely expensive project obtain information that might prove beneficial to their tender?

I suspect you'd need to ask a former Minister why they thought it was a good idea to run a combined system. Obviously the purported cost savings in the glossy brochure would tempt any politician and the "simplicity" of killing two birds with one stone is inviting.

Lead Balloon
19th Feb 2016, 07:32
The memo seems to me to be a perfectly normal and valid risk mitigation action in a high-value, high-risk government procurement process that starts well before the approach to market hits the streets.

The loosest cannons in most government departments, and therefore the people who pose the greatest probity threat to government procurements, are the senior people. Easily duchessed by suppliers who are good at pretending that someone with a big office and long title is actually important. And after all, those execs in AA got the job because they were the smartest guys in the room and have all those networks.

This is not to say they are generally corrupt. It is merely to say they are generally arrogant but naive. They genuinely believe there is such a thing as an "off the record" conversation and "Chatham House Rules" in a knife fight for a cool billion or so. The circumstances of the engagement of the "complex procurement" consultant demonstrates how naive AA were.

It's like hospitals and washing hands: Studies show that the people most likely not to wash hands are the doctors. They are more likely to consider themselves 'above' all those pesky rules and free from all those plebeian germs.

CaptainMidnight
19th Feb 2016, 08:10
The memo seems to me to be a perfectly normal and valid risk mitigation action in a high-value, high-risk government procurement process that starts well before the approach to market hits the streets.Exactly. My impression is that the memo was an entirely correct and appropriate reminder to staff re their actions and responsibilities regarding probity measures.

And I understand that it wasn't a "secret" memo. It was widely distributed to staff within Airservices.

As usual, someone is pulling Ean Higgins's strings.

within the regulatorThe regulator is of course, CASA, not Airservices, who is the ATSP and ANSP.

Just to balance matters:

http://www.airservicesaustralia.com/projects/onesky-australia/

http://minister.infrastructure.gov.au/wt/releases/2015/February/wt053_2015.aspx

4Greens
19th Feb 2016, 08:24
Having the same system for Air Services and Defense makes a lot of sense.

Lead Balloon
19th Feb 2016, 08:53
Some would say it's a 'no brainer'.

Unfortunately, there are probably going to be too many brains involved in this one, and not one brain in charge.

Just imagine how much time and money will be wasted as one government agency - Airservices - argues with another government agency - Defence. Months and months and millions and millions arguing about technical specifications and liability and indemnity and intellectual property and insurance and price and payment and system security. All for no value for the taxpayer of course.

This is a procurement that should've been run by PM&C. Its importance transcends Airservices and Defence, and needs to be run by ruthless pr*cks who know what they are doing.

My tip is that double Seasprite will go down the gurgler on this one, Dick. The entities involved play for keeps and have revenues in excess of Australia's annual defence budget.

Sunfish
19th Feb 2016, 21:57
Lead Balloon:

Unfortunately, there are probably going to be too many brains involved in this one, and not one brain in charge.

Just imagine how much time and money will be wasted as one government agency - Airservices - argues with another government agency - Defence. Months and months and millions and millions arguing about technical specifications and liability and indemnity and intellectual property and insurance and price and payment and system security. All for no value for the taxpayer of course.

This is a procurement that should've been run by PM&C. Its importance transcends Airservices and Defence, and needs to be run by ruthless pr*cks who know what they are doing.

My tip is that double Seasprite will go down the gurgler on this one, Dick. The entities involved play for keeps and have revenues in excess of Australia's annual defence budget

Too true. This system is going to cost billions and billions of dollars and make Thales and its contractors very, very rich before the project is abandoned.

In a former life, I had the pleasure of being the meat in the sandwich between a Government Business and a professional IT consulting firm that practiced vicious multi level marketing. I still have the scars and to this day I get the jitters when I hear a private school accent coming from an expensively manicured and impeccably dressed suit.

Thales will target the Minister and every decision maker in the Military and airservices right down to the lowest levels of sub projects. They will target the Ministers and Departmental advisors as well. There will be a matrix at Thales HQ detailing the project organisation and there will be a Thales staffer targeted to each decision maker

They will shower them with gifts, junkets, lunches and compliments. They will attempt to get the dirt on each and everyone involved which will al be collated - who hates who, etc. etc.

They will also do their level best to destroy the credibility and careers of anyone who gets in their way as they proceed to make oodles of money out of variations to the original tender documents - which are always out of date due to changing technology and business requirements. They are masters of character assassination and deception.

You have never known real fear as a project manager until you have heard the honeyed words: "I met your Minister at our box at the tennis/opera/cricket/football last night and I told him how well our project was going."

CaptainMidnight
20th Feb 2016, 01:07
You have made serious allegations against Thales there.

Did the same happen within Airservices with TAAATS?

Dick Smith
20th Feb 2016, 01:53
4 Greeens. You state that one Civilian/Defence radar system makes a lot of sense.

Problem is that AsA is supposed to be a profit making business enterprise while the RAAF is supposed to defend our country.

Two very different organisations.

How will they work out who pays for what?

And imagine what happens when a contract dispute occurs?

I am told that some of the people who were involved in the Super Seasprite disaster are now working on the Onesky contract. Remember not one Minister or Bureaucrat were held accountable in any way for the $1.4 billion loss. Some probably were given Orders of Australia awards.

topdrop
27th Feb 2016, 11:07
Some probably were given Orders of Australia awards Can you name any in relation to their work on Seasprite acquisition, or is it just hyperbole?

gerry111
27th Feb 2016, 11:38
"Some probably were given Orders of Australia awards."


When you go to the next of your 'gong' garden parties, simply ask around. I'm sure that you'll find them if they exist.


Please enjoy the fresh bread and cucumber sandwiches.

Sunfish
27th Feb 2016, 20:08
If Thales is a good marketer, as I believe from my sources they are, they will drive a wedge between Air Services and RAAF and then exploit the confusion to at least double and perhaps triple the budgeted cost of this alleged system.

This is all perfectly legal if you do it correctly. The method is to generate variations to the contract specification as well as continuously on-sell a range of services to the customer while expanding the size and scope of the project. There is a counter to this strategy but no one in Australian Government knows how to do it.

Contract variations generate themselves thanks to government purchasing practices.

This starts with a request for tender (RFT) - the document specifies the deliverables and takes at lead 12 - 18 months to write if not more.

The tenderers get about a year to respond.

Then there is the tender evaluation and negotiation - another year.

Then the tender is awarded.

….so our dear contractor is working to deliver what you thought you needed two and a half years ago! Meanwhile your business has changed and of course the technology has advanced, so what you now want is different to what was tendered for - time for a variation and at horrendous costs!

Good multi level marketing guarantees you will accept the variation won't you? Otherwise nasty little leaks start appearing in Parliament about how you are building a system that is "obsolete before it is even completed" and suchlike.

Then of course there is expansion - would you like fries with that? Maybe an App or TIS?

Then there are the support services business process re-engineering experts, staff training course design and delivery, etc. etc., etc. These are sold on the basis that they are needed to capture the alleged cost savings the project was going to generate. Again, don't buy them and another embarrassing leak occurs to Parliament about not generating cost savings, etc.

Rinse, repeat.

The cure? Manage the project yourself. Chop up the project into discrete small deliverables and contract them out one after the other in sequence (not in one go).

Dick Smith
27th Feb 2016, 21:33
Captain. No TAAATs did not get into these problems.

This is because Baldwin and Edwards changed the process so instead of a complex specification being written a concise " operational requirement" was given for the total supply of a turnkey system.

Substantial penalties applied for delays and there was little room for the suppliers to continually increase the contract price.

After they got rid of Baldwin and Edwards to board got into further difficulties and Hughs- who had never completed a civilian radar system - got a substantial payout for missing out.

topdrop
28th Feb 2016, 09:30
When you go to the next of your 'gong' garden parties
Gerry, Never been to one, never likely to be invited to one - let alone attend.

gerry111
28th Feb 2016, 09:53
My apology Topdrop. My comment was to Mr R. Smith AC.