Austal awarded $390 million deal after thorough evaluation

Asked in the Senate today about three contracts valued at $390.76 million awarded to Austal Ships PTY Limited, National Security Minister Martin Joseph explained that the Australian shipmaker underwent thorough evaluation before being selected. The Minister informed Senators that Austal was asked "to construct, commission and deliver six fast patrol craft, provide planned maintenance services for a period of five years and provide training to the personnel of the Trinidad and Tobago Coast Guard. Of that sum, $312.66 Mn. is allocated to the construction, commissioning and delivery of the six patrol craft."

Senator Joseph told the Senate, "the process began with the issuing of a Request for Proposal (RFP) on March 09, 2007 to eight manufacturers who indicated an interest in submitting Proposals. These eight manufacturers were given a deadline date of April 20, 2007 for the submission of initial proposals and June 11, 2007, for the submission of final proposals. Final Proposals were submitted by seven manufacturers."

He informed the Upper House, "The seven Proposals were evaluated by an Evaluation Committee, comprising competent and experienced senior officials from the Trinidad and Tobago Coast Guard, the Ministry of Finance, the Ministry of the Attorney General, the Ministry of National Security and an Independent Procurement Consultant, and using four general criteria stipulated for the award of the contract:

1. Quality of Product and Services Offered

2. Price, Cost and Government Resources Required

3. Timeliness of Delivery of Products and Services

4. Qualifications and Capabilities of the Respondent"Senators heard that after a comprehensive review of proposals, the Evaluation Committee identified Austal Ships PTY Limited’s proposal as the most attractive and the one from which the country would get the best value for its money. The recommendations of the Evaluation Committee were then submitted to the Ministerial Committee responsible for the procurement of military assets, the Minister said.

The Ministerial Committee accepted the recommendations and forwarded them for the consideration and approval of Cabinet. Cabinet accepted the recommendations, he said.

"Honourable Members may wish to note further, that Austal Ships PTY has a 17-year track record of designing, building and delivering high-performance ships and has, as clients, a number of other reputable international agencies including the Bermuda Police, the Ministry of Defence in Yemen, the Ministry of Interior in Kuwait and the Royal Australian Navy," Minister Joseph added. "With respect to financing arrangements, the vessels and associated services will be financed by the Australian and New Zealand Bank (ANZ) as well as by the Export Finance and Insurance Corporation (EFIC) – the Australian Government Export Credit Agency.”