State Highways M&O Journey March 2014 Update Mark Kinvig - NZ Transport Agency

NZTA Strategy Snap Shot ( ) Our Priorities for the next 3 years: Customers Making the most of Urban network capacity Moving more freight Safe speeds Efficient road maintenance investment delivery Engage Listen Adapt Transform

What did we learn in 2011/12 ? Asset Management Service Delivery and Procurement Collaboration with Others People and Capability

Looking for a New Way Old Model Focus on looking after the asset New Model Focus on the journey and optimising the asset investment

Consolidating Networks From 37 to 23 networks; 4 collaborative partnerships; professional services Annual rehabs Annual resurfacing Vegetation Line Marking

Changing Relationships NZTA Consultant Contractor NZTA Primary Supplier Including Professional Services and sub-suppliers

Network Outcomes Contract Principles Consistency – One Model plus Auckland Alliance Minimal renewals Better performance management and benchmarking Risk allocation and reward mechanisms Greater NZTA Ownership Collaborative relationships Healthy Market Focus

Key Result Areas Safety Customer Sustainability Assurance and Value Network Performance Health of the Relationship

Nationally Planned Regionally Delivered

Network Managers Regional Network Stewardship Journey Managers One Network, Moving People & Freight Maintenance Contract Managers Supplier Relationship and Contract Performance New M&O Roles in Regional Teams Asset Manager Asset Investment

? Our Healthy Market Approach Stage 1 & 2 tendering process increases certainty Healthy Market Statements Reducing barriers to entry – more focus on capability Default 20% sub-contractor component subject to regional analysis Flexibility – Either consultant or contractor can lead Joint ventures allowed

Progress on Implementation 3 year NOC programme has started 60% of recruitment for new positions complete 2 conversions to NOC form complete (savings of around 5%) South Canterbury Contract Awarded (savings up to 10%) Taranaki, Eastern Bay of Plenty and Wellington in progress More consultants now bidding with contractors Minimum 3 bidders for each area to date

? Questions?