This Part examines whether the Department of Treasury and Finance (DTF) has adequately responded to VAGO's June 2014 recommendation to advise government on including unsolicited proposals in the High Value High Risk (HVHR) process.
Effective infrastructure planning and delivery are critical to the state's future prosperity and liveability. Government introduced the High Value High Risk process (HVHR) to address systemic weaknesses undermining agencies' performance in developing and investing in major projects.
This Part of the report:
 John Doyle Auditor-General |
Audit team Ray Winn—Engagement Leader Kate Kuring—Team Leader Sid Nair—Analyst Engagement Quality Control Reviewer Tony Brown |
Ordered to be published
VICTORIAN GOVERNMENT PRINTER August 2015
PP No 75, Session 2014–15
In accordance with section 16(3) of the Audit Act 1994, a copy of this report was provided to the Public Transport Victoria, the Department of Treasury and Finance, and the Department of Economic Development, Jobs, Transport & Resources.
The submissions and comments provided are not subject to audit nor the evidentiary standards required to reach an audit conclusion. Responsibility for the accuracy, fairness and balance of those comments rests solely with the agency head.
Responses were received as follows:
myki is in use on selected V/Line commuter train lines to and from Melbourne. Figure A1 shows the extent of myki use on the regional rail and coach network with myki use highlighted in purple.
Figure A1
Regional
train and coach network
Source: V/Line Regional train and coach network map.
The current myki contract expires in June 2016 with an option to extend it for a further six months at the state's discretion. Public Transport Victoria (PTV) has commenced planning the myki retender to ensure the system continues to operate beyond the current contract. Effective procurement planning is important to ensure that previous issues impacting on myki's implementation and performance do not recur.
Public Transport Victoria (PTV) needs an effective performance measurement and reporting framework in order to ensure that myki operates effectively, and delivers the intended benefits.
PTV has enhanced the quality of performance measures and incentives in the myki contract. However, the effectiveness and integrity of the new performance regime is compromised by critical shortcomings in PTV's approach to verifying the accuracy of related results reported by the contractor.
The myki project has been complex and large-scale from its conception and through its development and procurement. For such projects sound governance and contract management arrangements are essential for assuring key risks to delivery are effectively managed, and that intended benefits are achieved.