Australia's DFAT: Top 15 private contractors 2014-2015

When Foreign Minister Julie Bishop announced a new aid paradigm in June 2014, the intention was to help Australia’s international development cooperation become more “responsible, affordable and sustainable.” This drive for self-sufficiency was guided by additional budget cuts to Australian foreign aid, which was capped at 5 billion Australian dollars ($3.75 billion) per year. The release of the federal budget for fiscal year 2014-2015 confirmed predictions that a significant part of savings would be coming from Department of Foreign Affairs and Trade’s allotted official development assistance, which increased slightly to AU$4.53 billion compared to the previous year, but dropped to $4.46 billion in 2015-2016. This continues the trend of Australia’s deflating aid budget following the merging of the Australian Agency for International Development with DFAT in 2013. The government introduced performance benchmarks to strengthen the assessment of contractors, NGOs and multilateral organizations that deliver Australian aid. Under this scheme, projects that fail to meet expected outcomes are terminated if they are unable to improve within a year, placing additional pressure on contractors, who have long felt the squeeze brought on by former Prime Minister Tony Abbott's budget constraints. According to a Devex analysis of Australian government data, the percentage of Australian foreign aid spent on private contractors has declined from 41 percent in 2005-06 to 21 percent in 2013-14. During that same period, the percentage of Australian ODA channeled through multilateral organizations and NGOs increased significantly. In the latest in our series on top donor agency partners, Devex ranks DFAT’s leading private contractors by total contract value as of the financial year 2014-15. Only development contracts valued at AU$100,000 and above and signed in financial year 2014-15 are included. Contracts awarded to consortiums and joint ventures are excluded. Despite declines in the percentage of Australian ODA channeled to private sector partners, contract amounts were larger in 2014-2015 than in the previous year. Meanwhile, six foreign companies broke into the top 15 DFAT private contractors, up from four in FY 2013-2014, providing some evidence that Australia's untied aid policy might be slowly taking effect. 1. Cardno Headquarters: Brisbane, Australia DFAT contract funding: AU$915.69 million Number of contracts: 43 Largest contract: AU$116.24 million for a law and justice partnership program in Papua New Guinea 2. Coffey International Development Headquarters: Sydney, Australia DFAT contract funding: AU$839.49 million* Number of contracts: 43 Largest contract: AU$127.30 million for an economic and public sector program in Papua New Guinea 3. SMEC Headquarters: Melbourne, Australia DFAT contract funding: AU$576.16 million Number of contracts: 3 Largest contract: AU$231.47 million for an infrastructure initiative facility in Indonesia 4. Palladium Headquarters: London, United Kingdom DFAT contract funding: AU$441.29 million Number of contracts: 8 Largest contract: AU$134.50 million for a poverty reduction support facility in Indonesia 5. Abt JTA (now Abt Associates) Headquarters: Brisbane, Australia DFAT contract funding: AU$401.37 million Number of contracts: 2 Largest contract: AU$270. 91 million for health and HIV implementing services in Papua New Guinea 6. GRM International Headquarters: Brisbane, Australia DFAT contract funding: AU$399.83 million Number of contracts: 17 Largest contract: AU$109.95 million for the Australia Awards Program in Africa 7. HK Logistics Headquarters: Sydney, Australia DFAT contract funding: AU$324.64 million Number of contracts: 13 Largest contract: AU$297 million for the management and facilitation of a health and education procurement facility in Papua New Guinea 8. URS Australia (now part of AECOM) Headquarters: Multiple offices in Australia DFAT contract funding: AU$232.4 million Number of contracts: 17 Largest contract: AU$151.84 million for a civil society strengthening program in Papua New Guinea 9. Norton Rose Australia (formerly Deacons Australia) Headquarters: Multiple offices in Australia DFAT contract funding: AU$204.58 million Number of contracts: 2 Largest contract: AU$122.57 million for the Australia Indonesia Partnership for Economic Governance Facility 10. Research Triangle Institute Headquarters: Research Triangle Park, North Carolina, United States DFAT contract funding: AU$63.77 million Number of contracts: 2 Largest contract: AU$60.5 million for the Australia-Indonesia Partnership for Pro-Poor Policy: Knowledge Sector Initiative Program 11. Scope Global (formerly Austraining International) Headquarters: Adelaide, Australia DFAT contract funding: AU$59.53 million Number of contracts: 6 Largest contract: AU$26 million for the Kiribati Technical Vocational Education and Training Sector Strengthening Program 12. Cowater Headquarters: Ottawa, Canada DFAT contract funding: AU$57.28 million Number of contracts: 1 Largest contract: AU$57.3 million for the Empowering Indonesian Women for Poverty Reduction Program 13. Aurecon Headquarters: Melbourne, Australia DFAT contract funding: AU$49.2 million Number of contracts: 10 Largest contract: AU$43.9 million for the second phase of a rural water supply and sanitation program in East Timor 14. Charles Kendall and Partners Headquarters: London, United Kingdom DFAT contract funding: AU$47.1 million Number of contracts: 4 Largest contract: AU$45 million for procurement and logistics support in East Timor 15. Mott MacDonald Headquarters: Surrey, United Kingdom DFAT contract funding: AU$41 million Number of contracts: 1 Largest contract: AU$20 million for facility management and core activities *Update, September 12, 2016: This article has been updated to clarify DFAT contract funding for Coffey International Development is AU$839.49 million. Check out more insights and analysis for global development leaders like you, and sign up as an Executive Member to receive the information you need for your organization to thrive.