In 2013, the Melbourne Metropolitan Bus
Franchise (MMBF) was established to service around
30 per cent of Melbourne’s metropolitan bus network. The
contract is worth approximately $1.7 billion over 10 years.
This audit examined whether the state has effectively secured value
for money from the MMBF by assessing the MMBF tender and Public
Transport Victoria’s (PTV) management of the resulting contract.
The state’s progress in reforming future metropolitan bus contracts
was also examined.
The audit found that the state has not yet
secured full value for money from the MMBF arrangements, despite
achieving almost $33 million in cost savings in
The MMBF tender was soundly planned and run in
accordance with Victorian Government Purchasing Board requirements.
However, the contract's potential is not yet being realised
primarily due to unreliable performance data. This is compromising
PTV's capacity to effectively manage the contract.
Of particular concern is the Department of Economic Development,
Jobs, Transport & Resources' (DEDJTR) and PTV's slow
progress toward reforming the balance of metropolitan bus contracts
expiring in 2018. Urgent and sustained action is required to avoid
limiting the state's procurement options in 2018, and compromising
any opportunity to leverage better value from these services
through increased competition.
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Acting Engagement Leader
Engagement Quality Control
Last updated on 8/31/2016