Birdon Marine entered a $5.2 million tender for the scuttling of the HMAS Adelaide off the Central Coast but lost its bid to a South Australian company who entered at $5.8 million contract.
Independent MP for Lyne Robert Oakeshott has called for a tender review over the decision and said it looked like more than half a million taxpayers’ dollars were being wasted.
“The lower tenderer from my region was not new in the market, has always come in under budget with similar projects, and is held within high regard as a medium-sized regional enterprise,” Mr Oakeshott said.
“On the surface, there is no clear explanation for why this has occurred.
“I think a tender review is deserved in this circumstance so we can compare apples with apples across the board.”
Mr Oakeshott said the contract flew “directly in the face of the post-budget spin from the state government that we were entering an era of ‘NSW first’”.
“By contrast, this is a clear case of ‘NSW last’, and I cannot see how they can account for a more expensive South Australian bid picking up this NSW work over a NSW-based company.”
Mr Oakeshott also said the official tender period had lapsed when the contract was awarded, and that a re-validation of price was expected by competing tenderers.
Mr Oakeshott said he had asked the Minister for Defence John Faulkner to review the decision and had referred the matter to the National Audit Office.