Managing the Performance of Rail Franchisees

Tabled: 7 December 2016

Appendix B. Past VAGO audits

Figure B1 summarises past audits with similar themes and findings.

Figure B1 Past VAGO audits and findings


Audit objective

Findings relevant to this audit

Operational Effectiveness of myki Ticketing June 2015

Examine myki's operational effectiveness, and whether the outcomes and benefits expected from its introduction were being achieved, and how well Public Transport Victoria (PTV) was preparing for re-tendering.

  • PTV does not adequately assure the reliability of results reported by the contractor underpinning incentive payments.
  • PTV needs to strengthen its monitoring of myki prior to awarding the new contract.
  • There was no assessment of whether myki had achieved its proposed benefits and objectives.

Tendering of Metropolitan Bus Contracts May 2015

Assess the planning and conduct of the bus tender process and PTV's management of the contracts.

  • The contracts did not achieve value for money due to PTV's failure to properly implement the performance regime and long-standing issues with data reliability.
  • We identified gaps in PTV's contract management system and processes, including the transactional focus and lack of clear accountabilities.

Coordinating Public Transport August 2014

Assess PTV's effectiveness in coordinating public transport services.

  • Performance monitoring is limited by an over-reliance on self-reporting by operators, inefficient manual systems and minimal quality assurance.

Using ICT to Improve Traffic Management June 2014

Assess the effectiveness of the use of ICT systems to manage traffic flow.

  • There is no statewide approach to managing traffic congestion, which affects tram performance.
  • The tram tracking system is obsolete and is unable to interact with traffic signals, causing ineffective traffic flow.

Public Transport Performance February 2012

Examine effectiveness of the state's public transport services by assessing whether agencies had delivered effective public transport services and were adequately prepared to improve and sustain performance in the future

  • The Department of Transport (the department) was not prepared to effectively manage the increase in public transport patronage that occurred between 2004 and 2009.
  • There were weaknesses in performance measurement and reporting, and some aspects of performance were not being measured at all.
  • The department managed public transport as a collection of separate modes of transport rather than as an integrated system.

Maintaining Victoria's Rail Infrastructure Assets May 2007


Assess how effectively the state's rail infrastructure was being maintained and renewed.

  • Overall maintenance arrangements for metropolitan rail infrastructure were satisfactory, and the condition and performance of metropolitan infrastructure was 'fit for purpose' at the current level of operation.
  • Improvements could be made by the development of a long-term asset management strategy detailing the rationale for maintenance and renewal of assets, clear documentation of the methodology for prioritising maintenance and renewal, and review of key performance indicators so that they better describe infrastructure condition, performance and the effectiveness of maintenance and renewal works.

Franchising Melbourne's Train and Tram System September 2005

Determine whether 2004 franchise agreements for the metropolitan train and tram system represented value for money.

  • The renegotiated contract arrangements did represent value for money, assuming that the service providers met contractual requirements.
  • The government did not adequately consider risk allocation.

Source: VAGO.

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