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?