Last updated 8 January 2015
Expressions of Interest are now open on AusTender for the provision of AFMA’s Observer Program.
AFMA’s in-house Observer Program places observers (independent of the fishing industry) on fishing vessels to provide reliable and verified information on fishing catch, effort, and practices onboard fishing vessels operating in Commonwealth waters. The program also monitors the impact of fishing on the broader marine environment including Threatened, Endangered and Protected species.
AFMA reviews the program from time to time to ensure it pursues its legislative objective of sustainable fishing in a cost effective way. While widely recognised for the quality of its service, the cost of the program has risen over the years for a number of reasons including broader coverage levels, general increases in costs and changes to the way costs are shared between government and industry. The program now makes up approximately 25 per cent of AFMA’s cost recovered budget, recouped through levies on the fishing industry.
Consistent with pursuing cost-effective fishery management AFMA has decided to test the market. The purpose of testing the market is to see whether an external provider could operate the Observer Program more cost effectively, whilst still ensuring that the quality of the program is not compromised and AFMA’s ability to meet its legislative requirements continues. Ensuring the sustainability of Australian fisheries is, and will continue to be, a priority for AFMA.
Market testing does not mean AFMA will be outsourcing the Observer Program but will be conducting an Expression of Interest to assess what the market could provide in terms of capability, quality and cost effectiveness. At the completion of market testing, AFMA will decide whether or not it is worthwhile conducting a tender process with the aim of outsourcing the Observer Program.
An Evaluation Panel, aided by a reference group and probity advisor, will be responsible for ensuring that market testing is carried out in accordance with government procurement policy. Market testing will occur during the first half of this year with a view to concluding the process by the end of June 2015.
Download a PDF copy of the Observer Program: consideration of market testing report (PDF, 560 KB)
For further information please contact Mandy Goodspeed, Manager, Projects by phone on
02 6225 5341 or email mandy.goodspeed@afma.gov.au.
Q&A: Market testing AFMA’s Observer Program
What is the AFMA Observer Program?
The program places observers (independent of the fishing industry) on fishing vessels to provide reliable and verified information on fishing catch, effort, and practices of fishing vessels operating in Commonwealth waters. The program also monitors the impact of fishing on the broader marine environment including Threatened, Endangered and Protected species.
What is market testing, and why is AFMA market testing the Observer Program?
Market testing means that we are asking potential external providers to show us what they could offer in terms of capability, quality and cost-effectiveness in running the Observer Program. While widely recognised for the quality of its service, the cost of the program has risen over the years. AFMA reviews the program from time to time to ensure it pursues its legislative objectives, including sustainable fishing, in a cost effective way.
Does this mean AFMA is going to outsource the Observer Program?
Market testing does not mean AFMA will be outsourcing the program but will be conducting an Expression of Interest to assess what the market could provide in terms of capability, quality and cost effectiveness. At the completion of market testing, AFMA will decide whether outsourcing is a viable option.
What is the cost of the Observer Program and how much does AFMA expect to save?
The Observer Program currently costs $3.32 million per year. The cost is fully recouped from levies on the fishing industry. Market testing will help determine whether or not there is a provider that can deliver the service AFMA requires, if outsourcing would result in real cost savings and whether those cost savings would reduce industry levies.
Will market testing affect levies in 2014-2015?
Market testing will not affect levies in 2014/2015. The market testing process will allow AFMA to identify whether the Observer Program can be run by an external provider. If outsourcing to an external provider is a viable option, AFMA will put out a request for tender later in 2015.
How are Observer Programs run in other countries?
Canada and the United States outsource some components of their observer programs. Governments in other countries can select which responsibilities are retained in-house and which are contracted to external companies. In some fisheries such as the North Pacific Groundfish Program in Alaska (USA) and the Groundfish Fishery in British Colombia (Canada) observer services are delivered by several companies. Also, New Zealand’s observer program closely resembles AFMA’s Program.