Sydney region road maintenance contracts

Roads and Maritime Services (RMS) is responsible for the Sydney region State roads network This includes over 2,800 kilometres of roads and associated road corridor infrastructure such as bridges, tunnels and drainage structures. RMS divides the network into three geographical areas: south, west and north zones. In 1995, RMS first outsourced road corridor infrastructure maintenance for the north zone through a Performance Specified Maintenance Contract (PSMC). The current 10-year PSMC for the north zone will expire in October 2018. Prior to November 2013, RMS maintained roads in the south and west zones through its Road and Fleet Services unit. In November 2013, RMS outsourced road maintenance services for the south and west zones using Stewardship Maintenance Contracts (SMC). The contracts run for seven years with an option for a further three years at RMS’ discretion. RMS estimated that the annual cost of these contracts was around $240 million in total. In March 2018, the contract prices are due to be reset by negotiation to reflect the contractors’ experience with, and better information about, the road networks and routine maintenance requirements. This audit assessed whether RMS had effectively managed the outsourcing of road maintenance in the Sydney region south and west zones. In making this assessment, we answered the following questions: 1. Did RMS justify the decision to adopt the SMC model? 2. Do SMCs include key performance indicators (KPIs) and incentives which promote efficiency and effectiveness? 3. Does RMS collect high quality information on contractor performance and take action to correct performance deficiencies? 4. Are the expected benefits being achieved?


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Media Info

  • Pagination: 27p

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Filing Info

  • Accession Number: 01641695
  • Record Type: Publication
  • Source Agency: ARRB
  • Files: ATRI
  • Created Date: Jul 25 2017 9:44AM