Process for the two pass consideration of proposed capital works project

The Future Post Entry Quarantine Arrangements Project is following a Two-Pass process to advise government on options for future post entry quarantine arrangements.

Government requires two-pass consideration of all proposals for capital works (construction or modification of buildings, facilities or infrastructure) estimated to cost $30 million or more, undertaken in Australia and its external territories. This excludes capital works undertaken by Defence.

As any options for future post entry quarantine may cost more than $30 million, DAFF Biosecurity is required, by government, to provide advice on a range of options in this Two-Pass process. This includes options ranging from the continuation of current operations to the full privatisation of post entry quarantine arrangements.

At the First Pass, the proponent department seeks in-principle agreement to the business need for the proposed facility and funding to complete the Second Pass. This includes work to develop the functional design brief, undertake due diligence studies into land, services and environmental conditions, to complete related works to cost the project, and to analyse the project benefits and risks.

The Future Post Entry Quarantine Arrangements project has received First Pass approval and is now developing the proposal for Second Pass consideration.

The Second Pass Business Case seeks government approval of, and funding for, the proposed outcome. The submission takes into account the scope definition, risk assessment, stakeholder consultations and findings from the due diligence works. It will include:

• Program & cost estimate for overall project to within 80% certainty;
• Risk assessment;
• Options analysis;
• Environmental & heritage studies approvals;
• Functional design brief;
• Public consultation;
• Statutory approvals (planning approvals); and
• Site investigations & due diligence.

On a case-by-case basis at the First Pass, the Department of Finance and Deregulation may be requested to undertake on behalf of proponent departments and agencies the delivery of those capital works that involve:

• High risk and/or high cost - that is, $30 million or more;
• National symbolic or national heritage status;
• Highly specialised functional requirements; and/or
• High national security or significant strategic interests of the Government.

This project is being delivered in a partnership between DAFF Biosecurity and the Property and Construction Division of the Department of Finance and Deregulation.

Business Case

DAFF Biosecurity is required to submit two business cases as per the mandated Two-Pass process for public capital works with an estimated value of over $30 million.

The First Pass Outline Business Case is a proposal to establish the need for government action and to seek approval for funding to undertake a scoping study to identify a preferred option for achieving the agency's nominated outcome.

The submission includes the outcomes being sought, how the proposal meets government property guidelines, how the capital works might be funded, a risk assessment and an estimate of the resources required to undertake the scoping study.

Government approved the First Pass Business Case in May 2010, authorising DAFF Biosecurity to conduct a scoping study and develop a Second Pass Business Case for future post entry quarantine arrangements.

The Second Pass Detailed Business Case is a proposal seeking government approval for funding to deliver the preferred option. This submission builds on the work of the First Pass business case and includes a full explanation of the scope of works for the preferred option, a detailed risk assessment, stakeholder consultation, analysis of the options, cost estimates, site investigations, design brief and any necessary approvals.

Through the 2011-12 Budget, the government has funded further development of future arrangements, including detailed design work, site assessment and related procurement activities.

If government decides to proceed with new post entry quarantine infrastructure the proposal will be referred for Public Works Committee Review.

Confidentiality

These Business Cases are advice to government and the usual restrictions on release of such material apply.