The real price corrina tierney executive director financial investigation service
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The Real Price? Corrina Tierney Executive Director Financial Investigation Service. FIS Role Overview. FIS provides analysis, investigation and advice on the financial aspects of Strategic, Complex and Simple Procurements based on professional commercial cost accountancy expertise

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The real price corrina tierney executive director financial investigation service

The Real Price?Corrina TierneyExecutive Director Financial Investigation Service


Fis role overview

FIS Role Overview

  • FIS provides analysis, investigation and advice on the financial aspects of Strategic, Complex and Simple Procurements based on professional commercial cost accountancy expertise

  • The service provided by FIS is a part of DMO's risk mitigation strategy, ensuring that financial due diligence is applied consistently with the overarching policy requirements

  • FIS actively maintains the Commercial-in-Confidence nature of each Company’s financial data, maintaining Industry’s trust in FIS’ semi- independent role in considering their sensitive financial information

  • Industry can expect FIS contact for:

    • sole source cost investigations

    • strategic, complex, high risk, or high value competitive tenders

    • Annual review of labour rates (large Primes)

    • financial queries during a tender evaluation process


The real price corrina tierney executive director financial investigation service

FIS

Advice on financial aspects

High Value

Complex

RFTs

  • Labour Rate Reviews

Strategic Procurements

Benchmarking

Financial Due Diligence

Cost Principles

Viabilities

“Shared” Service

Defence clients

  • DMO clients

Tender Evaluation

Commercial

Consistency

  • Sole/Direct Source

Gate Reviews

True Ups

Simple Procurements

Competitive Tenders

Overarching Policy

High Risk

Cost Data Models

Tiger Teams

FMS

Financial Statement Analysis


The real price corrina tierney executive director financial investigation service

WHAT PRICE??

Focus is on the costs associated with the

Cost of Capability and Whole of Life Cycle

Costing including

  • Capability

  • Acquisition

  • Operation

  • Support

  • Disposal

  • Contract

  • Facility

  • Staffing/Resources

  • Intangibles

APPROVALS

(Government/Delegate)

COST ANALYSIS BRANCH

CDG

(COST ESTIMATION)

  • Including

  • Engineering

  • Commercial

  • Logistic

  • Pricing

  • Statement of Work

PROJECT

$ X

Capability and Value for Money Considerations

$ Z

$ Y

NEGOTIATIONS

FINANCIAL INVESTIGATION SERVICE (CONTRACTS)

INDUSTRY

(TENDERS)

  • Focus is on the tendered/contract costs and pricing (acquisition and sustainment) including

    • INDUSTRY COSTS

    • Assessing reasonableness of costs

    • ‘What If’ analysis of options

    • Financial comparisons of tenders

    • Reconciliation to original estimates

Focus is on the contract/tender costs including

  • Materials - Profit

  • Insurance/Warranties/LDs - Risk

  • Escalation/Hedging - Staffing

  • Exchange Rates/Price Risk - Facilities

  • Contract Type (Fixed/Cost-plus) - Schedule


The real price corrina tierney executive director financial investigation service

Now…

Gaps…

  • Ambiguity

  • Duplicated Effort

  • Different Focus

  • Sourcing information multiple times

  • Information Overlaps / Gaps

  • Rework- both Industry & Govt

APPROVALS

(Government/Delegate)

COST ANALYSIS BRANCH

CDG

(COST ESTIMATION)

Capability and Value for Money Considerations

NEGOTIATIONS

FINANCIAL INVESTIGATION SERVICE (CONTRACTS)

INDUSTRY

(TENDERS)


Same project

Same Project

Different Focus

Cost Capability Actuals Contract Price

Capability Net Present Scope (+ growth) Acquisition + Sustainment

Operating Costs

Budget Cost Government Approval Estimated Costs plus profit Contract cost plus escalation

Escalation Non-Farm GDP Forecasting Contract Indices

Profit Only look at cost Shareholder Return Risk vs. Reward

vs. Return

Risk - Schedule - Government Process Costed Risk

- Budget - Schedule (Risk Mitigation)

- Capability - Technical

Also:

  • Financing charges

  • Intellectual Property

  • KPIs/KERs

  • Insurance

  • Securities

  • Warranties

  • Payment Schedule

  • LDs/EDs


One thing we could do better

APPROVALS

(Government/Delegate)

COST ANALYSIS BRANCH

CDG

(COST ESTIMATION)

Capability and Value for Money Considerations

NEGOTIATIONS

FINANCIAL INVESTIGATION SERVICE (CONTRACTS)

INDUSTRY

(TENDERS)

One thing we could do better…

  • capture the same data once

  • data consistency

  • less duplication

  • improved evaluations and analysis

  • more timely decisions

  • reduced tender cost to industry

  • more effective and efficient use of Commonwealth and Industry resources

  • Use a uniform “Cost Model”

COST MODEL


Future

APPROVALS

(Government/Delegate)

COST ANALYSIS BRANCH

CDG

(COST ESTIMATION)

Capability and Value for Money Considerations

NEGOTIATIONS

FINANCIAL INVESTIGATION SERVICE (CONTRACTS)

INDUSTRY

(TENDERS)

Future…..

Bridge the Gap

  • Single source of information

  • Better Pricing Process

  • More Uniform Approach

  • Reduced Effort by all

  • Reduced Tender Costs

  • Better Quicker Result

  • One Cost Model

COST MODEL


Which price is the real price

Which Price is the Real Price…

A combination of :

XYZ


The real price corrina tierney executive director financial investigation service

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