Roads and Maritime Services
Initiatives to improve the transport network
Roads and Maritime Services (RMS) is responsible for a $17 billion Capital Works Program over the period 2015-2020, driven by NSW Government initiatives to improve the transport network. This represents an increase of up to three times the previous capital investment levels and coincides with an unprecedented peak of infrastructure activity across the transport portfolio.
E3 Advisory was engaged to develop an overarching strategic procurement framework for the Capital Program 2015-2020 (excl. Pacific Highway), to address the infrastructure development and delivery challenges and support the achievement of Government infrastructure priorities. This role was extended to include the initial application of the procurement strategy, identification of priority projects and development of preliminary delivery strategies.
Providing a consistent approach and guidance
To address the Capital Program procurement challenge, E3 Advisory developed a strategic procurement framework based on the following key principles:
Engage in a ‘partnership’ approach with industry to achieve the necessary step-change in activity level, including:
- Engage in a ‘partnership’ approach with industry to achieve the necessary step-change in activity level, including:
- Early communication and certainty of project ‘pipeline’
- Actively balancing workload across available industry capacity, to maximise opportunities for participation
- Utilising industry capability to leverage RMS core expertise
- Expediting tendering processes and reducing the tendering burden on key industry resources.
- Expedite the timing of key project procurement to reduce the overall peak demand on industry, secure critical resource capacity and realise better value for money in the market ahead of the forecast peak of activity, including:
- Compressing traditional project development and procurement timeframes
- Adopting a portfolio approach by aggregating projects to achieve supply chain efficiencies across development, procurement, delivery and management functions (rather than a traditional project by project approach)
- Adopt project specific procurement and delivery models to optimise the risk profile and maximise performance outcomes at an overall program level, incuding:
- Providing alternate delivery paths to address emerging Government priorities, changing market conditions and maintain flexibility to refine and optimise procurement strategies progressively
- Utilising ongoing performance based competitive tension to maximise Capital Program output and retain high performing suppliers for the award of further work
- Using non-traditional project procurement and delivery models where approprite to balance risk allocation and risk premiums, expedite priority projects and achieve Capital Program objectives
The strategic procurement framework was applied to the overall Capital Program to identify priority projects for strategic procurement options. Initial delivery strategies were developed for the highest priority projects to ensure achievement of the Capital Program objectives.
The strategic procurement framework developed by E3 Advisory provides a consistent approach and guidance for RMS Program Offices to take account whole of portfolio considerations and external market influences, in the development of project specific delivery strategies and detailed procurement plans. The strategic procurement framework provides greater confidence that the overall development and delivery challenges of a substantially enhanced RMS Capital Program 2015-2020 can be managed on a consistent basis to achieve Government priorities.
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