The former head of Major Projects Canberra told his staff to ignore rumours that the construction union was trying to influence the tender process for a school project, the ACT Integrity Commission has heard.
Major Projects Canberra chief projects officer at the time of the Campbell Primary School modernisation project procurement, Duncan Edghill, said he was aware of tensions between the Construction, Forestry, Maritime, Mining and Energy Union and construction firm Manteena in early 2020.
Mr Edghill had heard a rumour that the union had spoken with either the education delegate, given the pseudonym John Green, or the Education Minister's office about the Campbell Primary School tenders.
"When this scuttlebutt had been mentioned to me to the extent I had a concern, it was a concern to ensure that my staff in Major Projects Canberra ignore the scuttlebutt and just did their job as they're meant to do their job," Mr Edghill said.
Mr Edghill said he had a "feeling of frustration" that his recommendation in March 2020 to work with a preferred tenderer to reduce costs on the school project had not been followed.
Instead the Education Directorate proceeded with a best and final offer round which he viewed as a more conservative and lengthy approach.
'Nothing else would be accepted'
ACT Education Directorate senior director Dylan Blom said he heard the rumours of union interference from multiple sources before he became involved in the second tender evaluation team for the Campbell Primary School modernisation project.
Mr Blom was recruited to the evaluation team after members of the first team quit.
Mr Blom said Mr Green told him he was concerned that tenders submitted by Lendlease and Manteena were both over budget.
Mr Green was also concerned about the disparity between the scores given by first tender evaluation team and wanted the second team to arrive at the recommendation that the two tenderers should be asked to enter a best and final offer round, Mr Blom said.
"He as the delegate had some concerns with the fact that the first tender evaluation team had been swayed by a stronger design submission and that that had skewed their views in the scores of the other criteria," Mr Blom said.
"That was kind of presented to us as a concern. There was obviously also some industrial aspects that wanted to be looked at by the delegate again."
Mr Blom he agreed with Mr Green to an extent that the design from a top-tier construction company such as Lendlease should have scored better because they had received feedback from the directorate during the design process.
"There should be correction, or some guidance provided, so that you don't come out of a process with one ... tender miles in front on design and one tenderer miles below," Mr Blom said.
The second tender evaluation team was stood up on March 27, 2020, and provided recommendations on April 6, 2020.
Mr Blom said the second tender evaluation team was under pressure to reassess the tenders quickly because the project was significantly behind schedule and the COVID-19 pandemic had reached Canberra.
He said they were looking at the tenders from the perspective of reducing costs and entering a best and final offer process.
"The delegate had indicated that nothing else would be accepted. The process was going to either be cancelled and started again or who knows what?"
The tender was eventually awarded to Lendlease over Manteena, despite having a more expensive bid and a lower score for design.
Public servant 'uncomfortable' with tender outcome
Mr Blom said he was uncomfortable about being involved in a process where the recommendation of the tender evaluation team had been overturned. He said Major Projects Canberra had refused to be part of the debrief meeting with Manteena.
"I was of the mind to do the same thing, but again, [I'm a] sucker for punishment, so got a last minute invite, I think, to the session and agreed to agreed to attend and listen in, but I think when it started, Mr Green pretty much threw to me and said, you know, 'you go, you're on the [tender evaluation team] give them the debrief," he said.
Mr Blom later attended a meeting at the Bittersweet Cafe in Kingston on September 18, 2020 with Mr Green and Manteena executives Mark Bauer and Rod Mitton.
"I think it was the first time that Mr Green sat down and basically laid out a whole lot of information that I was not aware of, about unions, about opinions, about not wanting to give them work, a whole number of things," Mr Blom said.
The ACT Integrity Commission is investigating whether Education Directorate officials failed to exercise their official functions honestly and impartially while handling the procurement process for the Campbell Primary School modernisation project between 2019 and 2020.
Education director-general Katy Haire began giving evidence to a public examination on Thursday afternoon about commencing the role in December 2019. She is expected to continue to give evidence on Friday.
