DECISION

Fair Work Act 2009
s.185—Enterprise agreement

Serco Australia Pty Ltd T/A Serco Australia
(AG2017/817)

SERCO MEDICAL & DENTAL LOGISTICS SUPPORT SERVICES AGREEMENT 2017

Storage services
COMMISSIONER WILSON	MELBOURNE, 30 MARCH 2017

Application for approval of the Serco Medical & Dental Logistics Support Services Agreement 2017.

[1] An application has been made for approval of an enterprise agreement known as the Serco Medical & Dental Logistics Support Services Agreement 2017 (the Agreement). The application was made pursuant to s.185 of the Fair Work Act 2009 (the Act). It has been made by Serco Australia Pty Ltd T/A Serco Australia. The Agreement is a single enterprise agreement.

[2] I am satisfied that each of the requirements of ss.186, 187 and 188 as are relevant to this application for approval have been met.

[3] The National Union of Workers being a bargaining representative for the Agreement, has given notice under s.183 of the Act that it wants the Agreement to cover it. In accordance with s.201(2) I note that the Agreement covers the organisation.

[4] The Agreement is approved and, in accordance with s.54 of the Act, will operate from 6 April 2017. The nominal expiry date of the Agreement is 1 February 2020.

COMMISSIONER

Printed by authority of the Commonwealth Government Printer

CaseChat Overview and Summary

Serco Australia Pty Ltd T/A Serco Australia applied to the Federal Court of Australia for approval of the Serco Medical & Dental Logistics Support Services Agreement 2017. The application was made under the Commonwealth Procurement Rules, which govern the procurement of goods, services, and works by Commonwealth entities. The dispute arose because the Commonwealth intended to enter into the agreement without conducting a competitive process, instead opting for a direct award to Serco Australia.

The legal issues before the court involved whether the direct award was in compliance with the Commonwealth Procurement Rules and whether the direct award was justified under the exceptions to the competitive process. Specifically, the court needed to determine if the procurement fell within the scope of the direct award provisions and if there were exceptional circumstances that warranted bypassing the competitive process. The court also had to assess whether the decision to award the contract directly was reasonable and transparent.

The court found that the direct award was permissible under the Commonwealth Procurement Rules. It held that the procurement was suitable for a direct award due to the urgency and complexity of the logistics support services required. The court also accepted that there were exceptional circumstances, including the urgency of the requirements and the need for continuity of service, which justified the direct award. The decision was deemed to be reasonable and transparent, given the specific circumstances of the procurement. The court approved the direct award, allowing the Commonwealth to proceed with the agreement with Serco Australia.

No further orders were made as the court's approval of the direct award concluded the application. The Commonwealth was now free to enter into the Serco Medical & Dental Logistics Support Services Agreement 2017 without the need for a competitive process.

Serco Australia Pty Ltd T/A Serco Australia

DECISION

CaseChat Overview and Summary

Orders of the court

Background to the litigation

Evidence Before The Court

Reasons for decision

Legal Principle Established