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Tara Cosoleto

Company director tried to rig National Gallery tender

A company director tried to rig a tender for the National Gallery's building management system. (Lukas Coch/AAP PHOTOS)

A company and its sole director tried to rig a National Gallery of Australia tender bid, the Federal Court has found. 

Timothy Davis, the director of Delta Building Automation, in December 2019 organised a meeting at a Canberra cafe with a competitor's general manager.

During the meeting, Mr Davis offered to pay the competitor in exchange for an agreement that would have rigged the bid in Delta's favour. 

The competitor rejected his offer. 

The tender was for the National Gallery's computer-based building management system, which powers and monitors equipment like air-conditioning, ventilation, lighting and power. 

The Australian Competition and Consumer Commission launched legal action against Mr Davis and Delta in May 2021, describing the offending as attempted cartel conduct. 

Commission chair Gina Cass-Gottlieb said the actions had the potential to increase the cost of the National Gallery project to taxpayers.

"Bid-rigging damages markets by driving up prices to the detriment of consumers, other businesses or taxpayers," she said in a statement.

"Businesses must be vigilant when they are dealing with competitors to ensure that any discussions do not propose or lead to anti-competitive arrangements, including cartel conduct."

The commission did not allege the National Gallery was involved in any of the offending conduct. 

Federal Court judge James Bromwich will decide on penalties and other orders at a later date.

The commission is seeking declarations, pecuniary penalties, injunctions and costs, as well as an order to disqualify Mr Davis from managing a company.

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