Government consultants have been asked to sign agreements saying they will not misuse the highly confidential billing rates of their competitors that was leaked to them last month.
Almost all have agreed, but others doubt how much protection the agreements offer in the wake of the PwC tax leak scandal.
It is understood the pricing details of up to 413 suppliers on the government’s Management Advisory Services Panel, which includes global giants like Deloitte and KPMG, as well as small local firms, were inadvertently leaked to 22 of the panel members last month.
The leak, first reported by the Australian Financial Review, is believed to have occurred through Health department approaches to market involving the 22 firms.
The 22 firms have effectively been handed a competitive advantage by now knowing where the line is to undercut competitors, while the commercially sensitive information could also help larger firms in acquiring smaller rivals.
Some of the affected firms that spoke with InnovationAus.com on the condition of anonymity said the government must now consider sharing the pricing information to all panel members to even the playing field, allow them to update their own prices or begin a new panel arrangement.
The Management Advisory Services Panel is already scheduled for a refresh to add more suppliers, but existing ones can’t change their rates in the process.
Independent ACT Senator David Pocock on Wednesday made an order for the production of documents about the breach and how it is being addressed, with the government given until the end of next week to provide them to the Senate.
The Department of Finance, which is responsible for the panel, declined to explain exactly how the leak occurred but said it was “inadvertent”. It also declined to reveal which companies are among the 22 to have been leaked the pricing information.
The department notified panel members of the breach on November 27, around two weeks after it had occurred.
“Finance has taken steps to ensure this does not occur again and has apologised to all suppliers,” a spokesperson told InnovationAus.com.
“Finance has required all 22 suppliers who received the information to sign deeds of confidentiality which covers the organisation, and statutory declarations for individuals.”
20 of the 22 firms have signed so far, with the remaining two “to be finalised shortly”, the spokesperson said, adding the department will “work closely” with the 22 firms to ensure compliance.
However, other suppliers are concerned about the strength of the commitment following the PwC tax leaks scandal.
“As we know, deeds don’t mean shit. PwC showed that,” one panel member told InnovationAus.com.
“You don’t un-see someone else’s rates. It’s like seeing your peer’s salary. You know what their salary is and you’re going to use it for your own negotiations.”
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