I refer to your letter dated 15 February 2006, concerning the Performance Audit conducted on the New Schools Public Private Partnership Project.
The Department of Education and Training recognises the value of the audit in reviewing the management of the project and its processes.
A number of recommendations in the report that arise from the first new schools project have already been implemented in the second new schools project:
■ Improved planning processes that allow both certainty of requirements yet allowing flexibility to substitute projects in an efficient and cost effective manner to take into account changes in growth rates and patterns over the capital delivery period;
■ Clear review in business cases of the capacity of surrounding schools and demographic demand;
■ Ensuring that the bidders had a clear understanding of DET requirements during the bidding phase;
■ Simplified and improved abatement systems.
The Department proposes to implement and/or explore other issues raised by the report, including the finalisation of a contract administration manual for the two projects and the establishment of a Contract Steering Committee.
I am pleased that the review confirms our opinion on the success of the delivery model for new schools in terms of clearly defined business cases, capital cost savings, faster delivery of schools than under traditional procurement and simplified and effective services management. Please convey my appreciation for the conduct of the review to the relevant officers involved.
(signed)
Andrew Cappie-Wood
Director-General of Education and Training
Managing Director of TAFE NSW
Dated: 1 March 2006