Day Two – Procurement Stream

Using Procurement as an Opportunity for Improving Social and Environmental Outcomes
Chris Bennett

Like doctors, engineers often approach their projects from the perspective of ‘first do no harm’. But investment projects also provide opportunities to have positive outcomes by contributing to the wider social and environmental agenda that society is increasingly embracing. Often, these outcomes can be achieved at little or no additional cost to the client. This presentation will touch on how the World Bank is using its procurement practices as a vehicle for positive change in areas as diverse as managing the influx of workers to road safety to environmental management.

Chris Bennett is a Lead Transport Specialist for the World Bank and the Advisor for the transport sector on addressing environmental, social, health and safety (ESHS) issues. As ‘Cluster Leader’ for the Pacific Islands, Chris oversees a portfolio of over 25 aviation, land and maritime projects in nine countries. Addressing the challenges of climate change is a key consideration, and Chris has led key initiatives on integrating climate change into asset management decisions, as well as how to address climate change risk in performance based contracting.  As ESHS Advisor, he is helping to minimize the negative social and environmental consequences from projects.

What does a successful procurement model look like?
Rowan Kyle, Opus

Many Road Controlling Authorities (RCA’s), both here in New Zealand, and internationally, continue to seek improvement to their current procurement strategies. This desire is often a result of changing business environments, changes in demand, customer expectations, and/or disappointing outcomes from existing contract models. In some instances, it can be simply a perception that there must be a better way delivering the services required to maintain the assets within, and operation of, the road corridor in the future.
New Zealand is in the fortunate position of having trialled a variety of contract models over many years across a range of similar road networks. That this evolution is continuing suggests that a “one size fits all” solution does not actually exist. While the current version of Network Outcomes Contract (NOC) has been applied to nearly all the state highways, there is a much broader spectrum of contract model types in operation across local authority roads. Consequently, there is still considerable opportunity to learn from what has been generally accepted as successful, what has not worked so well previously, and how these lessons can be applied.
This presentation will briefly examine some of the reasons for this contract model variance, what common outcomes many RCA’s are seeking, the reasons why they remain disappointed by the outcomes being delivered, what they should aim to do differently next time, and ultimately how they might know if they have been successful.

Rowan Kyle graduated from Canterbury University with an Honours Degree in Civil Engineering in 1994. He is currently a Chartered Professional Engineer, and a Member of the Institution of Professional Engineers New Zealand. Rowan is presently a Principal Asset Manager based in the Napier Office of Opus International Consultants. Since 1995 he has held the positions of Engineer to Contract, Team Leader, Asset Manager, Engineers Representative, Project Manager, and Site Engineer across the full range of State Highway and local authority road maintenance contracts, as well as other asset management functions.
Over last 9 years Rowan has been involved with the development and implementation of Performance Based Contracts (PBC’s) for road maintenance in New Zealand, India, Mozambique, Sri Lanka, and Liberia. He has presented at an International Road Federation (IRF) PBC Workshops in Uganda in 2013, and 2016, at the Asian Development Bank Transport Forum in Manila in 2014, the First IRF Asian Congress in Bali in 2014, the second Asian Congress in Kuala Lumpur in 2016, and for the Ministry of Public Works in Sarawak in 2017.
Rowan is part of a combined Malaysian and New Zealand team that has prepared the pilot Performance Based Contract for the Federal Road Network for the Ministry of Public Works for Southern Region of peninsular Malaysia, and a PBC model for the North South Expressway.
Rowan won the Best Paper award at the 6th International Conference on Managing Pavements held in Brisbane in 2004 (represented at the Transport Research Board Annual Conference in Washington DC 2005), and jointly presented the winning Hynds paper at the 2006 Ingenium (now IPWEA) Conference in Auckland.

Topic tbc
Simon Gough, GHD

Performance review and benchmarking achieving more with less
Babak Bigdeli, Ventia

Ventia is one of the largest infrastructure companies in Australia and NZ ($2.5b+) providing asset management services to infrastructure assets such as road networks, motorways and tunnels, hospitals, schools, city councils, utilities and telecommunication businesses.
This presentation describes a methodology developed based on 9 elements of best practices in asset management to provide quantitative and objective performance analysis on infrastructure projects. It also describes a proprietary tool, its functionality and its application on several imminent Australian infrastructure road network and motorways/tunnels projects.
The result of the performance review on individual projects have also been used to benchmark projects against each other as well as against the best practice, whilst predicting locked value in terms of dollar value on each project.
The presentation also, shows how the findings of such study have been used to compile tailored improvement roadmaps (in terms of action list with full resources and costings) to realise identified locked value on each project.

The learning outcomes include:
– What do we mean by “best practice in asset management” as practiced in one of the largest asset management service providers businesses in the region
– Hint and clues on how audiences could develop their very own performance review tool as it was achieved at Ventia
– The concept of “Locked Value”, and how to quantify that in terms of dollar value
– How to use this methodology (and the tool) to selectively target improvement opportunities and to achieve more with less

Dr Babak Bigdeli is a PhD educated Mechanical Engineer (UNSW) with over 20 years working experience in Infrastructure, utilities, mining and resources sectors as a consultant as well as in operational asset management roles. A select list of his clients or companies he worked for includes Australian brand names such as Covaris, Mincom, KPMG, BHP, BMA, Sydney Ferries, Downer and Ventia.
Babak has registered and owned an Innovation Patent in asset management (2016) on the application of ISO 55001 to services companies, following which he had secured two formal ISO 55001 certificates for two major infrastructure assets in Australia.
Babak is recently leads asset management function in Ventia, and has presented his findings in forums such as AMPEAK 2016 (Adelaide) and IAM/IET 2016 (London).

How to do Procurement Collaboration?
Dave MacDonald
The four Local Authorities and NZ Transport Agency formed the Northland Transportation Alliance, a Collaborative arrangement in 2016 for their internal professional transport related services.
To meet the Agency requirements a combined procurement strategy for the Councils was required to be developed and adopted during 2017.  This presentation covers the challenges, successes, pitfalls, problems and learnings of that journey.

Dave commenced work with the MOW in 1971. He has held various technical and management roles within Government departments and Local Authorities including periods as a Borough and City Engineer.
He was the Northern Regional Manager for Transfund from 1996 to 2005. From 2005 he has run his own business serving both private and public sectors in strategy development, procurement and advisory services. Recently he has become associated with the Institute for Collaborative Working where collaboration is recognised as a professional discipline with a structured methodology that underpins successful business relationships.
His qualifications include BE, MBA and Diploma in Facilitation. He is a life member of IPWEA and an Associate Member of CCNZ

Tracking operational performance measures
Danny Fitzgerald, Fulton Hogan

The Operational Performance Measure auditing process for NOCs requires input from Maintenance Contract Managers (MCMs) from beginning to end, however providing transparency and ease of access to MCMs was a challenge for Fulton Hogan in the early days of the NOC maintenance model.
As a result, in 2016, we decided to invest in the development of a tool that would ease collaboration with our MCMs, in addition to strengthening our OPM data quality so we could improve our ability to analyse trends.  We also wanted to improve productivity within our contract teams by driving operational consistency over contract preference; use technology to reduce the time needed for auditors to prepare for and carry out audits; and ultimately free our teams to focus on improving operations, rather than being consumed by reporting on them.
In this presentation we will tell you about our journey, and the results, including these three points of learning:

  • Automating where possible
  • All Interpretation is misinterpretation
  • How to teach old dogs new tricks

Danny Fitzgerald is a Senior Business Analyst in Fulton Hogan’s National Asset Management Team.  His responsibilities include identifying and implementing opportunity’s to improve operations using technology, and he is the Product Owner for the OPM Tracker, which you’ll be hearing about today.  Danny is Irish and moved to New Zealand from London in 2016, where he spent the previous 7 years working as a consulting Business Analyst and getting to know a persuasive kiwi, who is now his wife! Together they have been enjoying raising their young son in New Zealand’s Garden City.

Looking ahead: How the one network classification performance measure reporting tool is showing the way!
Dawn Inglis, REG
The Road Efficiency Group (REG) recognised the need to support the sector in assessing the One Network Road Classification (ONRC) performance measures and developed the ONRC Performance Measures Reporting Tool, a user-friendly information management system which road controlling  authorities can have confidence in.  The Tool was the recipient of the 2016 RIMS innovation award.  The tool is continuing to be developed and this presentation will highlight the tool’s current functionality, and how this can be used to support investment decision making, and also show the road map for development through to December 2018.

Key learning points covered –
1. The current functionality in the that has been developed by the sector, guided by the REG Data Work Group
2. How the tool is meeting the needs of the sector in evaluating their data, and enabling assessment of outcomes compared with peers
3. The development road map that is planned for the tool to continue this journey together
4. How the sector can provide feedback and input into the tool’s future development

Dawn was the Manager Road Corridor at Waipa District Council until April 2014 when she moved via a secondment to a regional role as the Project Director for Waikato RATA (Road Asset Technical Accord). Waikato RATA was established to support increased capacity and capability in strategic asset management in the Waikato. Prior to these roles Dawn was the Roading Asset Manager at Franklin District Council. Dawn is the Chair of the Road Efficiency Group – Best Practice Asset Management Group.

NZ Transport Agency Procurement manual Amendment 4c
Bernie Cuttance, NZ Transport Agency

Information to come

Expert panel Q&A session – What is the best type of delivery model for Local Authorities
Panel:  Bernie Cuttance, Dave MacDonald, Shaun McKinley and Dave Proctor