Generally, our analysis showed that the SCSA is fulfilling its contract management role, however, improvements must be made to address certain identified issues. In its most recent corporate plan, the SCSA has acknowledged that these issues affect its ability to efficiently and effectively perform its contract management and oversight role and sets a timetable to rectify the problems.
We consider that the SCSA is effectively monitoring and assessing concessionaire performance against the standards by conducting a regular review of KPI achievement. Although the SCSA has been in a position to apply abatements against the concessionaire - in accordance with the sanctions available in the SDA - it has instead reasonably used these potential sanctions to assist negotiations with the concessionaire to improve the long-term KPI monitoring, measurement and assessment regime.
Notwithstanding the above, we consider that due to the recognised inadequacies within the KPI regime, the SCSA may not be able to adequately enforce the performance based penalty system until KPIs are enhanced and made more transparent and measurable.