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Gateway Review Process

The Australian Government has introduced the Gateway Review Process (Gateway) to improve the on-time and on-budget delivery of major projects undertaken by Financial Management and Accountability Act 1997 (FMA Act) agencies.

Gateway is a project assurance methodology that involves short, intensive reviews at critical points in the project's lifecycle by a team of reviewers not associated with the project. This provides an arm's length assessment of the project against its specified objectives, and an early identification of areas requiring corrective action.

Gateway Review Policy Improvements

The Government has introduced improvements to the Gateway Review Process to further assist in the effective delivery of high risk projects.

The improved process draws on the best practice guidance of the Gateway methodology from the United Kingdom and Victorian experience and also responds to issues raised in the Gershon Report.

The improvements comprise the following:

The Introduction of Gate 0

The Gate 0 Business Need Review is intended to better test policy and implementation options for major projects through strategic assessment of the business need.  The review will focus on the following elements:

Proposals that meet the Gateway financial and risk thresholds are required to complete the Gateway Risk Assessment Tool (GAT) and submit it to the Gateway Unit. Those proposals identified as High Risk will be subject to a Gate 0 Business Need Review, which will need to be completed prior to seeking Government approval. This includes proposals being brought forward in the 2009-10 Budget process.

Gateway and the Two Pass Review Process

The timing of the Gate 0 Business Need Review will align with the ICT Two Pass Process and the Two Stage Capital Works Approval Processes, which is demonstrated below.

Interface of Gateway and 2-Pass Proposal Review processes in the annual Budget cycle

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Projects subject to the Two Pass Proposal Review Process for capital works and/or ICT related initiatives must finalise a Gateway Risk Assessment prior to preparation of the first stage/first pass proposal.  If the project is assessed as High Risk for the purposes of Gateway, a Gate 0 Business Need Review must be completed at least six weeks prior to seeking Cabinet’s agreement to first stage/first pass approval.  The completion of the Gate 0 Business Need Review is to be advised to Cabinet as part of seeking first stage/first pass approval.  The Gate 1 Business Case Review must be completed at least six weeks prior to seeking second stage or second pass approval and the outcome is to be included in the NPP considered by ERC or Cabinet.

Projects that already have been considered and agreed by ERC or Cabinet outside of the 2009-10 Budget process will not be subject to a Gate 0 review.

All other proposals under consideration within the 2009-10 Budget process that are assessed by the Gateway Unit as being subject to a Gate 0 Business Need Review, will have a review undertaken in late January or early February 2009.

Agencies are required to provide a GAT to the Gateway Unit for all proposals being brought forward that meet the Gateway financial and risk thresholds.  If agencies are unclear of their responsibilities further information can be obtained from the Finance Gateway Unit website http:www.finance.gov.au/gateway/index.html or the Gateway Unit.

Provision of Gateway Review Reports to the Gateway Unit

At the conclusion of each Gateway Review, the Review Team Leader will provide a copy of the final Gateway Review report to the agency SRO and to the Gateway Unit.  This approach is intended to facilitate earlier understanding of project issues and their recommendations, and will enable earlier compilation and dissemination of lessons learned to agencies.

What Projects Does Gateway Apply To?

Gateway applies to new projects undertaken by Financial Management and Accountability Act 1997 (FMA Act) agencies, which require Government approval and which satisfy certain financial and risk thresholds.

For the purposes of Gateway, a project is defined as a unique process undertaken by a project team, which is guided by a project management framework, to achieve a new product or service within a finite period of time, in contrast to ongoing work.

The Gateway cost thresholds are:

These financial thresholds refer to the total value of a project, regardless of the timeframe taken to deliver the objectives and costs are not limited to the capital component of the project.

The current risk threshold for entry to the Gateway Review Process is High Risk. Risk for the purposes of Gateway is determined using the Gateway Assessment Tool (GAT). Projects that meet the financial thresholds are required to complete the GAT prior to the proposal's consideration by Government to determine whether it meets the risk threshold.

If a project is assessed as High Risk and it is approved by Government, it must undertake Gateway Reviews commencing with a Gate 0 Business Need Review and must then move sequentially through the full suite of Gateway reviews at times appropriate to the project's life cycle. (Please refer to the Gateway Guidance and Handbook for an explanation of the Gate reviews).

The Role of the Gateway Unit

Once selected for inclusion in Gateway, a project will be assigned a review team by the Gateway Unit. The review team comprises experienced, trained and accredited reviewers. The reviews consist of a half day planning meeting and the onsite review activity which will be completed in four to five days. On the last day of the review, the review team will provide a confidential report to the Senior Responsible Official (SRO) in the sponsoring agency.

The report will summarise the status of the project and make recommendations to improve the implementation of the project. The SRO is responsible for determining and implementing any required actions to address recommendations of a Gateway Review Report.

Lessons Learned

The Government's decision to adopt Gateway established the requirement for the Department of Finance and Deregulation to disseminate Lessons Learned arising from the conduct of Gateway reviews, on a non-attributable basis. The purpose of the Report is to present the Lessons Learned arising from Australian Government Gateway reviews to assist agencies in improving their project management practices.

Lessons Learned are defined as observations arising from Gateway reviews which highlight opportunities for improvements in project management practice in Financial Management and Accountability Act 1997 agencies. The 2007 Lessons Learned Report presents the Lessons Learned on project management since the implementation of the Australian Government's Gateway Review Process. Australian Government Gateway Reviews commenced in August 2006 and this report is based on the reviews completed during the 2006-07 financial year. The majority of these reviews were Gate 1 Business Case and Gate 2 Procurement Strategy reviews.

The 2007 Lessons Learned report focuses on seven areas in which issues were identified for a majority of projects:

  1. Business Case and Project Planning
  2. Stakeholder Management
  3. Project Staffing
  4. Governance
  5. Risk Management
  6. Sourcing Strategy, and
  7. Financial Management

The Lessons Learned Report also includes references to Australian Government better practice and other well established better practice guidance.

Gateway Reviewers

Gateway Unit Contact Details

Gateway Unit, Financial Management Group
Department of Finance and Deregulation
John Gorton Building
King Edward Terrace
PARKES ACT 2600
Email: gateway@finance.gov.au

Contact for information on this page: gateway@finance.gov.au

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Last Modified: 18 December, 2008