Aussie boots maker Rossi bypassed for defence deal, Nick Xenophon says
Independent Senator Nick Xenophon has taken aim at the Federal Government for bypassing local firms to award contracts to overseas companies.
He says that under "value for money" criteria, the Defence Materiel Organisation (DMO) has gone with a foreign company rather than Adelaide company Rossi to make 100,000 pairs of boots for the Australian military.
The five-year deal is worth about $15 million.
Senator Xenophon says current rules preclude the DMO from considering the wider benefits for the local economy of awarding a deal to an Australian business.
"What rankles me is that with the $40 billion that the Commonwealth spends on procurement each year they don't take into account local employment factors, the local multiplier effect of having something made here in Australia," he said.
"Even if there is a small price differential, in terms of value for money you're getting value for money in terms of jobs being kept here."
Rossi 'not told' why it failed
Rossi Boots CEO Neville Hayward is upset the company was not given enough detail of why it failed with its tender.
"We don’t know what the price differential was as we were told that was commercial in-confidence," he said.
"We do know our boots' quality is world-class and, unlike imported boots, we employ Australians who pay their taxes, like our company, and spend their wages in the local community."
Mr Hayward has gone to Canberra to urge the tender process be reopened and procurement rules reviewed.
An inquiry into government procurement rules, established by Senator Xenophon and Senator John Madigan of the Democratic Labour Party, is due to report later in the week.
