Rex Patrick (SA, Centre Alliance) Share this | Hansard source

Okay; I'll move on. Currently this bill deals with covered procurements, and those procurements are typically procurements above $80,000. At this point in time it is possible for someone to be given a contract by way of sole source under $80,000. It's not a covered procurement in the context of this bill. But then what happens is, if I get into contract for $79,999 with the Department of Defence—and they can do that quite lawfully just by way of sole source—they can then give me another $200,000 contract on the basis that I am already in contract with them. I'm just wondering how that is handled in the context of someone who perhaps wanted to provide those services and now sees a contract that's got a value of $279,000, which would normally give cause for invoking this legislation. Does it allow them to invoke the legislation or is that a loophole in the arrangements?