The City of Sydney has given multiple contract extensions to the company that has run the world-famous New Year’s Eve fireworks for 27 years and allowed it to skip a public tender process, prompting concerns about the competitiveness of the arrangement.
Since 2006, the City of Sydney has opted to extend its year-long contracts with Foti Fireworks International, rather than put the work up for tender again, at least seven times. In 2022, it granted the company an exemption from tender due to pandemic uncertainty. Foti won the public tender in 2023.
Sydney’s renowned New Year’s Eve fireworks in 2019.Credit: Wolter Peeters
There is no allegation of wrongdoing by either the council or the fireworks company, which has run the event since 1997, but changes to the tenders – along with the length of time Foti has operated the event – make the tendering process more favourable to the incumbent.
Dr Andy Asquith, a scholar researching governance in local councils at UTS, said the process required explanation.
“It would raise eyebrows that over 27 years someone else wasn’t capable of matching and beating [the incumbent],” he said.
Foti has been responsible for the fireworks display since 1997 and has entered into at least seven contracts with the City of Sydney over that time. Before 2011, these contracts were issued on a three- or four-yearly cycle. But in 2011, and again in 2015 and 2016, 2019, 2020, 2021 and 2023, existing contracts were extended by the council.
Fortunato Foti loads Sydney’s 2023 fireworks onto barges at Glebe Island.Credit: Steven Siewert
Without factoring in the extended years, the council has spent at least $18.4 million on the contracts with Foti. The most recent contract, for 2024 and 2025, cost the city $7.8 million, according to the council’s contracts register, with the possibility of extending the deal for up to four years to 2029.
The council considered multiple criteria, including “innovation, creativity and strategic thinking”. But Asquith said that “fluffy, flowery language” was unclear and hard to follow.
“[It] means anyone can interpret it a thousand different ways. I think it’s a badly written tender document.”
For years, the main – and often only – competitor to Foti has been Sydney-based Howard & Sons Pyrotechnics, whose director Andrew Howard, while emphasising he was not upset with the City of Sydney’s processes, said the current method of tendering for fireworks favoured Foti as the incumbent.
“It’s sort of a process where the incumbent has a major advantage,” he said. “If you look at the tender requirements of what they’re seeking from a supplier, in my opinion, it’s obvious you’re competent and capable [if you’re already doing them] … It’s hard to put fireworks on paper.”
Previous tenders from the 102-year-old family business included the use of drones, integration of live performances and other elements “rather than just saying it’s a fireworks show”, Howard said.
A spokesperson for the City of Sydney said: “The City of Sydney has very robust procurement processes in place and we regularly tender for many New Year’s Eve services including pyrotechnics through an open tender process.”
Foti did not respond to requests for comment.
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