24 September 2015

The Hon Warren Truss MP
Deputy Prime Minister
Minister for Infrastructure and Regional Development
Parliament House
CANBERRA ACT 2600

Dear Minister

Request regarding audit of OneSKY Australia programme

Thank you for your letter of 31 August 2015 in which you requested that the Australian National Audit Office (ANAO) examine the probity and conflict of interest arrangements in place for the OneSKY Australia programme being led by Airservices Australia (Airservices).

As you noted in your letter, the OneSKY programme is of significant importance to Australian civil and military aviation. The ANAO is also aware of matters of relating to the OneSKY tender process that have been raised in the course of the inquiry into the performance of Airservices currently being undertaken by the Senate Rural and Regional Affairs and Transport Legislation Committee.

In that context, I have decided that the ANAO will undertake two performance audits in relation to the OneSKY programme.

The first audit will examine whether Airservices has effective procurement arrangements in place, with a particular emphasis on whether consultancy contracts entered into with the International Centre for Complex Project Management (ICCPM) in association with the OneSKY tender process were effectively administered. That audit will include consideration of the management of probity and conflict of interest matters. We will be commencing this first audit shortly and expect it to be completed by April 2016.

Following completion of the first audit, ANAO will move to a second performance audit involving a comprehensive examination of the OneSKY programme to assess whether it has been effectively administered so as to provide value with public resources. The scope of this second audit will involve the conduct of the OneSKY project from initiation to finalisation of the source selection and contracting process for the delivery of the project.

Yours sincerely

Rona Mellor PSM
Acting Auditor-General