A scathing federal audit has uncovered systemic integrity failures and rampant non-compliance with spending rules at the agency responsible for drafting Australia's laws. The Australian National Audit Office (ANAO) found the Office of Parliamentary Counsel's (OPC) management of a major project was marred by a culture of bypassing proper procurement processes, leading to massive cost blowouts and undeclared conflicts of interest.
Project Blowouts and Contract Chaos
The audit focused on the development of the new Federal Register of Legislation, a project launched in January 2024. What was originally estimated to cost $4.2 million ballooned to a final price tag of $11.8 million, a near-tripling of the budget, accompanied by a four-year delay. The ANAO report pinpointed the agency's heavy reliance on contract variations as a primary cause.
Instead of going back to the open market for expanded work, the OPC repeatedly amended existing contracts. Nine out of 13 procurements were varied, increasing their total value by 125 per cent, from $6 million to $13.5 million. The ANAO warned this practice risked undermining the Commonwealth Procurement Rules designed to ensure value for taxpayer money.
The $480,000 'Scrum Master' and a 1900% Increase
Two contract examples starkly illustrate the failures. A labour-hire contract with HiTech Group for an experienced "scrum master" – a role that helps teams manage complex projects – began as a two-month, $65,250 arrangement. Despite having no option for extension, the OPC varied it six times. It ultimately ran for 18 months at a cost of $479,694, a staggering 635 per cent increase.
Even more extreme was a contract with 101 Web Technology. Originally valued at $101,640, it was varied an astonishing 20 times. The final value rocketed to $2.1 million, representing an increase of more than 1900 per cent, all without testing the market for the vastly expanded scope of work.
Systemic Lack of Transparency and Integrity
The audit painted a picture of an agency with deeply flawed processes. In 92 per cent of procurements examined, request documentation lacked evaluation criteria, meaning suppliers had no idea how they would be judged. In one case, the contract was awarded to the candidate ranked lowest against the evaluation criteria.
Integrity management was deemed wholly insufficient. None of the 13 procurements contained a single conflict of interest declaration. The auditors found one instance where an evaluation panel member failed to declare they were "related to or socially engaged with" a candidate. The agency also frequently failed to justify why it bypassed open tender processes, even for contracts well above the $80,000 threshold.
When attempting to use a small business exemption for a sole-source contract, the OPC skipped the mandatory step of checking if an Indigenous business could perform the work. An analysis of Austender data identified 51 other instances where the agency used limited tender for contracts over $80,000 without clear justification.
Political Reaction and Agency Response
ACT independent senator David Pocock, a vocal advocate for procurement transparency, said the findings on value for money were alarming. "Cost blowouts, contracts without clear performance requirements, and serious shortcomings in managing conflicts of interest point to failures in the procurement process," Senator Pocock stated. He called on the government to consider reforms to prevent a repeat.
A spokesperson for the OPC acknowledged the mistakes, stating that while the project was complex and staff attempted to follow rules, the agency had already begun implementing the audit's recommendations. The blistering report, dated January 5 2026, serves as a stark reminder of the consequences when basic governance and transparency safeguards are ignored in the management of public funds.
