The SDA requires the concessionaire to meet 15 service standards and 60 associated KPIs for the management and operation of the station.
They are also required to provide the SCSA with a range of documentation demonstrating performance obligations against the KPIs. Figure 3F lists the required documentation.
Figure 3F Concessionaire documentation
| Required documentation |
| • Quarterly performance reports (QPRs) |
| • Operating manuals |
| • Quality assurance manuals |
| • Asset management plans |
| • Annual reports |
Source: Victorian Auditor-General's Office.
The concessionaire has subcontracted many of the key services, including the development of documents, to a number of key service providers (KSPs), however, the concessionaire retains overall operational responsibility for the service delivery.
The expected service standards and the provision of key documentation is clearly defined in the SDA, however, some of the KPIs have been difficult to measure. This presents a challenge for the SCSA in terms of its ability to monitor performance and assess the concessionaire's service delivery.
The SCSA has acknowledged these problems and has demonstrated its intent to rectify them in its most recent corporate plan.
The SCSA has commissioned a review of the Performance Management System (PMS) adopted by the concessionaire (as the primary management system for recording instances of KPI non-performance). In June 2007, the final PMS review report was provided to the SCSA. Figure 3G highlights the issues from the report.
Figure 3G Issues arising from PMS review
| Issue | Outcome |
| Asset Management Plan is incomplete | Only 800 of the approximately 3 000 assets are registered. This impacts the ability of the KSP responsible for maintenance to effectively schedule maintenance and ensure compliance. |
| Integrity of data reported by the KSPs is unverified | Documentation showed some instances of inaccurate data entered into the system by KSPs. Potential for undetected or unreported incidents, as well as intentional fraud. |
| KPI measurement is difficult | Many of the KPIs require physical attendance at the location and a manual survey. |
| Current reporting requirements do not allow for trend analysis | Hinders the SCSA's ability to assess overall performance and value-for-money. |
Source: Victorian Auditor-General's Office.
The SCSA has accepted these findings and plans to implement strategies to address them in 2007-08.
In relation to enhancing the measurement and assessment of KPIs, the SCSA has established clear and specific objectives to effectively manage contractual obligations, including:
• establishment of a monitoring and audit regime to ensure that the concessionaire meets its operational and asset management responsibilities
• proactive management of the KPI regime by measuring and assessing performance against KPIs, seeking evidence of compliance, and ensuring asset management plans are being developed and applying abatements for nonperformance.
Although the concessionaire's KPIs are clearly defined in the SDA, some have been difficult to measure. Inadequate measurement (and, therefore, assessment), presents a serious risk to the SCSA's ability to manage the concessionaire's performance.
The SCSA has acknowledged the KPI measurement issue and has committed to a number of actions and timelines in its corporate plan. We reviewed these plans and consider them to be reasonable and achievable. We also noted some evidence of early progress.