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GROUP 8-IPEX ITG

Group 8 comprises the Department of Agriculture, Fisheries and Forestry, Department of Environment and Heritage, Public Service and Merit Protection Commission, Australian Broadcasting Authority, Australian Communications Authority, the Civil Aviation Safety Authority and the former Aboriginal and Torres Strait Islander Commission.

This is Ipex's fourth annual report. The company has recently merged with another Australian IT provider, Volante, and is now known by that name; however it is continuing to report on outcomes to this contract as Ipex. Ipex achieved all of its in-scope ID commitments but fell short in some out-of-scope targets. The Department has asked Ipex to address these shortfalls as part of next year's activities.

Ipex's audited industry development report was not submitted within the time agreed in the contract schedule. Corporate reorganisation and delays in obtaining data were the stated reasons for the delay. The Department agreed to several extensions of the deadline and the report was eventually submitted several months late, and without some data on strategic investment. This will be addressed in next year's report. An independent review of this annual report was conducted as required in accordance with Australian Auditing Standards applicable to review engagements-AUS902 Review of Financial Reports.

In-scope achievements, 2003-04

Ipex exceeded its in-scope AVA, payments to SMEs and employment targets. Ipex itself falls within the definition of an SME contained in the contract, but in practice it is treated in the same way as the other prime contractors and is not credited with 100 per cent SME performance.

Out-of-scope achievements, 2003-04

* Some spending on strategic investment will be included in next year's report.

Ipex has three out-of-scope initiatives (detailed below). Ipex has not achieved its commitment to Initiative 1 (the Graduate recruitment program) in Year 4, which is the primary reason for three of the four out-of-scope indicators being below target. Ipex stated that the merger with Volante made running a graduate program unviable this year. This will need to be addressed in Year 5's activities. However, the shortfall in out-of-scope total and regional employment of 9 and 11 FTE respectively was compensated for by overachievement in in-scope total and regional employment of 32 and 21 FTE respectively.

1. Graduate recruitment program

Objective: Ipex committed to undertake a new graduate training program based in Melbourne, employing at least 12 graduates per year and including an extensive three-month training course.

Status: As stated above, Ipex did not undertake a graduate recruitment program in Year 4, due to its merger with Volante. No results were achieved, although Ipex did note a high retention rate of 83.8 per cent for participants over the previous three years. The Department is discussing with Ipex corrective measures to be taken before the end of the contract period.

2. Technician education program

Objective: Ipex committed to implementing a new re-education program in Melbourne for 14 technicians over a four-month period (ie an FTE of 5) each year of the service agreement. The program will provide technicians with update training including the upskilling of network integration capabilities.

Status: Ipex continued to operate this program and successfully educated the FTE of 5.6 technicians in 2003-04 (3.2 in regional areas).

Ipex's technician education program was originally proposed as a result of an equivalent program conducted for 14 technicians in 1998. Since then, Ipex has remodelled its approach to both cross-skill and up-skill its technical resources to enable them to move into high value-add roles. Ipex did this by providing and fostering individual development according to specific opportunities, preferences and competencies rather than through its traditional 'blanket' approach to training.

3. Increased level of exports and import replacement program

Objective: Ipex committed to $50 million in net exports and import replacement over the five years of the service agreement.

Status: Ipex's original exports commitment was renegotiated during Year 3 to include revenue earned from domestic sales of Ipex computer equipment (import replacement) and overseas services (such as brokerage fees earned in contracts between foreign companies). Ipex achieved over $27 million in revenue under this revised Initiative in Year 4, for a total so far of $71 million, exceeding its sales target of $50 million.

 

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• Last modified: 6 February 2008, 11:10am