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State Highways M&O Journey March 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.
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State Highways M&O Journey March 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 Model Focus on looking after the asset • New Model Focus 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 NZTA • Consultant • Primary Supplier • Including Professional Services and • sub-suppliers • Contractor
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 Managers Regional Network Stewardship • New M&O Roles in Regional Teams Journey Managers One Network, Moving People & Freight Asset Manager Asset Investment Maintenance Contract Managers Supplier Relationship and Contract Performance
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
Questions? • ?