Victorian Auditor-General's Office

Applying the High Value High Risk Process to Unsolicited Proposals

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The audit assessed whether the High Value High Risk (HVHR) process has been effectively applied to two unsolicited proposals—the $1.3 billion CityLink Tulla Widening project and the $2.5 billion Cranbourne Pakenham Rail Corridor project (Cranbourne-Pakenham).

Appendix B. Audit Act 1994 section 16—submissions and comments

Introduction

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:

Appendix A. Regional myki use

myki on the regional train and coach network

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

Map of myki on the regional train and coach network.

Source: V/Line Regional train and coach network map.

4 Ticketing services retender

At a glance

Background

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.

3 Performance monitoring and benefits realisation

At a glance

Background

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.

Conclusion

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.

1 Background

1.1 Introduction

Public transport ticketing systems

Modern public transport ticketing systems are much more than simply fare collection tools. They provide the key interface with customers and, with smartcard technology, can assist strategic planning for the public transport system, through the collection of valuable usage data. A well designed and implemented system should be easy for commuters to use, and benefit transport operators by streamlining fare collection and providing access to important data on travel behaviour.

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