Government tender to restrict print management companies

Print managers cannot bid for print production work as Centrelink tender seeks to level the playing field between large and small players in the industry.

A multi-million dollar Federal Government printing tender from Centrelink and 11 other Australian Government agencies has caused consternation among print managers and integrated printing companies. The four-part ‘fragmented’ tender for print management services, creative and design services, printing and production services and warehousing and distribution services, which closed 9th June, excludes applicants from bidding on all services.

The move is designed to limit the potential conflict of interest from having print management and print production under the same roof. It will restrict the influence of print management companies as the tender has confined them to bidding only on the print management and warehousing and logistics sectors. Printers and other applicants are allowed to bid on all tenders apart from the print management sector.

The reasons behind the separation drew comment from some of the larger printing groups that offer both printing and print management services. “The approach will create somewhat of a level playing field for small, medium and large printers,” said Chris Mitchell, group managing director of Blue Star Print Group. “Whilst we don't understand the requirement for separation between the printer and print manager, we do understand the government’s desire to have complete visibility throughout all aspects of the supply chain.

“This process will alleviate concerns the industry has previously had with print brokers working in government business and [the] industry will have a much closer and direct relationship with government agencies.”

Mitchell questioned whether the new rules would deliver cost efficiencies, as they will reduce the potential synergies of an end-to-end supply solution.

According to Hank Jongen, Centrelink general manager, the service delivery model was established to ensure transparency and accountability in the procurement of print production services. “A print manager who was also a provider of print production services would have an inherent conflict of interest in undertaking this role. Avoiding potential conflict of interest is the reason for the ‘fragmented’ tender,” he said.

“Centrelink has been keen to maximise participation by companies, including small to medium enterprises and has received positive feedback from the Printing Industries of Australia in relation to the proposed arrangement.”

Philip Andersen, CEO Printing Industries, said he was pleased that the Commonwealth Government had decided to pursue the panel approach as opposed to other models that are exclusively based on print management.

“We believe that the retention of close and ongoing relationships with printing suppliers will help deliver value for money to the government,” he said. “We are also convinced that such relationships will also deliver other benefits to the Commonwealth Government such as greater responsiveness, opportunity for increased innovation, and overall improvements to service and quality.”