State Highways M&O Journey March 2014 Update Mark Kinvig - NZ Transport Agency

State Highways M&O JourneyMarch 2014 Update

Mark Kinvig - NZ Transport Agency

NZTA Strategy Snap Shot (2013-16)

Our Priorities for the next 3 years:

• Customers• Making the most of Urban network capacity• Moving more freight• Safe speeds• Efficient road maintenance investment delivery

Engage

Listen

Adapt

Transform

What did we learn in 2011/12 ?

• Asset Management

• Service Delivery and Procurement

• Collaboration with Others

• People and Capability

Looking for a New Way

Old ModelFocus on

looking after the asset

•New ModelFocus on the journey and

optimising the asset

investment

Consolidating Networks

From 37 to 23 networks;

4 collaborative

partnerships;

professional services

Annual rehabs

Annual resurfacing

Vegetation

Line Marking

Changing Relationships

NZTA

Consultant

Contractor

NZTA

Primary Supplier

Including Professional Services and sub-suppliers

Network Outcomes Contract Principles

Consistency – One Model plus Auckland Alliance

Minimal renewals

Better performance management and benchmarking

Risk allocation and reward mechanisms

Greater NZTA Ownership

Collaborative relationships

Healthy Market Focus

Key Result Areas

• Safety

• Customer

• Sustainability

• Assurance and Value

• Network Performance

• Health of the Relationship

Nationally Planned Regionally Delivered

Network ManagersRegional Network Stewardship

Journey ManagersOne Network, Moving People & Freight

Maintenance Contract ManagersSupplier Relationship and Contract Performance

New M&O Roles in Regional Teams

Asset ManagerAsset Investment

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Our Healthy Market Approach

• Stage 1 & 2 tendering process increases certainty

• Healthy Market Statements

• Reducing barriers to entry – more focus on capability

• Default 20% sub-contractor component subject to regional analysis

• Flexibility – Either consultant or contractor can lead

• Joint ventures allowed

Progress on Implementation

• 3 year NOC programme has started

• 60% of recruitment for new positions complete

• 2 conversions to NOC form complete (savings of around

5%)

• South Canterbury Contract Awarded (savings up to 10%)

• Taranaki, Eastern Bay of Plenty and Wellington in progress

• More consultants now bidding with contractors

• Minimum 3 bidders for each area to date

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Questions?