The federal government is forking our more money for consultants, with expenditure more than doubling over the last ten years.

Expenditure on consultancy services hit almost $900 million in the last financial year, an analysis of AusTender data from the national audit office shows.

A report by Auditor General Grant Hehir shows the figure has grown steadily from $352 million in 2012-13 to $888 million in the last financial year, with almost $330 million worth of contracts awarded to KPMG alone.

The ANAO’s latest report on commonwealth government procurement contract reporting shows contracts worth $565 billion have been reported to Austender since July 2012.

Around $107 billion was spent on management, business professionals and administrative services, with this category making up the highest number of contracts (270,500) over the last ten years.

It was also the category that saw the biggest increase, going from 21,300 contracts in 2013 to 37,700 last year.

Most of the contracts, 408,710, were procured via limited tender, with 372,784 going to open tender.

‘Big Four’ dominate consultancy contracts

While the number of consultancy-related contracts has remained consistent at around 4,000 a year, the government is outlaying more for them, the report shows.

The top suppliers of consultancy-related contracts were the Big Four of KPMG (1,360 contracts), Ernst & Young (1017), Deloitte Touche Tohmatsu (860) and Pricewaterhouse Coopers (786).

KPMG received the most money for its services, with the government forking out $329.4 million over ten years for 1,360 contracts.

PwC appears twice under two ABNs, as Pricewaterhouse Coopers and Pricewaterhouse Coopers Consulting (Australia). Together, the two listings were awarded 1,205 contracts worth $423.7 million.

$300m contract blowout

The cost of amendments, or ‘add-ons’ to contracts is also increasing.

Amendments made up a third of total contract values across the last ten years. In 2022 the government spent $28 billion on amendments  compared to $4 billion in 2013.

A contract for outsourced IT services from the Department of Agriculture, Fisheries and Forestry had 235 amendments since 2009, including 78 over the last decade which saw the value of the contract blow out by $300 million.

There have been almost 209,500 contract amendments, with a value of $182 billion, in the last ten years.

The report does not present any conclusions or opinions.

The ANAO spent $155,500 to prepare the report.