Selected Agencies cont… The project is jointly coordinated by the following Departments: 1: Project responsibilities Department Responsibility in relation to the project Department of Health (DoH) Design input and ultimate operator of the hospital. Milestone reporting to the Commonwealth Government. Department of Infrastructure (DoI) Project manager for the construction of the hospital. Department of the Chief Minister – Office of Major Projects (DCM OMP) Communications and coordination. of the Project Steering Committee. Ministerial liaison as required. Monitoring of progress. Clarification of project expectations. Department of Treasury and Finance (DTF) Financial arrangements with Commonwealth Government. Department of Health (Commonwealth Government) Monitoring and assessing achievement against payment milestones for
Selected Agencies cont… 2: Hospital locations considered Site Location Size Ownership Status Land Capability 1. Lot 8408. Existing proposed site and Lot 9, next to Palmerston Super Clinic (on the corner of Roystonea Avenue and Temple Terrace) Approximately 20 hectares usable in the long term Freehold Crown Drainage line through the site. Some upgrading of existing water and sewerage infrastructure required pending investigation. 2. Section 4231 Hundred of Bagot, Stuart Highway Approximately 45 hectares Freehold Crown Large and relatively unconstrained site. No utilities or public infrastructure. 3. Part Lot 4250 Johnston/Zuccoli (corner Roystonea and Lambrick Avenues) Net 14 hectares Freehold Crown Site is constrained by Mitchell Creek to the east. Some upgrading of existing water and sewerage infrastructure required pending investigation. 4. Lot 4200, Town of Palmerston (Elrundie Drive) 7 hectares Freehold – privately Design constrained by the need to integrate with existing facilities. Development of hospital on site might
Selected Agencies cont… The Project Plan for the project to be agreed by senior Commonwealth and Northern Territory officials. The Project Plan is expected to be a flexible document that may be varied over time to accommodate changed circumstances. The table below summarises, at the time of the audit fieldwork, the Payment Milestones, reporting obligations and payments for the project documented within the agreement: Table 5: Summary of payment milestones, reporting obligations and payments of the HHF agreement Output Milestone Date due Relevant Report due Payment Construction of the Palmerston Hospital, Northern Territory (consistent with the requirements specified at clause 8). Project Plan developed in accordance with clauses 12-14 Apr-12 Apr-12 $1.0m* (Received 28/06/12) Site services commence Jul-14 Nov-14 $20.0m* # (Received 07/10/14) Commence construction May-15 May-15 $35.0m* (Received 07/10/15) Completion of base building Apr-16 May-16 $20.0m# Internal fit-out commenced May-16 $26.0m Completion of construction Mar-18 May-18 $5.0m Practical completion of the project and a bi-annual Report May-18 $3.0m Total $110.0m Source: Project Agreement for the Health and Hospitals Fund – 2010 Regional Priority Round Project in Palmerston; an agreement between the Commonwealth of Australia and the Northern Territory of Australia; Signed on 4 June 2014; page 5 Table 1: Payment milestones, reporting and payment summary. * Payments made # Additional funding not appropriated through the Health and Hospitals Fund. I was advised at the time of audit fieldwork that the Project Milestones are being renegotiated to better suit the project delivery process in accordance with the latest project plan.
Selected Agencies cont… The procurement models considered at Mark 3 (March 2015 to date) The Managing Contractor Design and Construct model was then selected based on advice provided by DoI. The Managing Contractor Design and Construct process was considered when it was identified that there was a lack of competitive responses to the EOI for the DBOM process. No evidence was provided to me to indicate any additional Procurement Option Analysis were considered beyond the detailed consideration already undertaken to support Mark 1 and Mark 2. The selected procurement for delivery of the project From the initial planning of a Palmerston Community Hospital to the current delivery of the PRH procurement models were selected during the process as detailed below: 9: Procurement models selected over the period. Procurement model selected and actioned Timing/Key Date Project reference Comments Design then Construct 2011 - 2012 Palmerston Community Hospital (Mark 1) Architectural consultancy and design development on the smaller site for the 60 bed hospital. Design, Build, Operate, Maintain November 2014 to January 2015 Palmerston Regional Hospital (Mark 2) PPP 79 bed hospital Managing Contractor Design and Construct 2015 Palmerston Regional Hospital (Mark 3) Adoption of a Managing Contractor model with DoH to provide the public hospital services. 116 bed hospital Risk Management Mark 1 (2009 to late 2012)
Appendix 1: Audit Opinion Reports Issued Since 31 December 2015 cont… Acquittals or other returns – for the year ended 31 December 2015 Deadline for submission of Audited Financial Statements Date of Audit Report Year ended 31 December 2015 Date of Audit Report Year ended 31 December 2014 Charles Darwin University Higher Education Research Data collection 30 June 16 10 June 16 17 June 15