Page 2951 - Week 07 - Thursday, 7 June 2012
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Deed of Variation 17 March 2009, given that Part E of the Deed of Variation states that the parties confirm that on 29 November 2007 they varied the contract with respect to key performance criteria and indicators ... Section 1 (Effective Date) of the Deed of Variation states that the variations to the Contract described in clause 2 of this Deed, take effect on 5 December 2008, why did the Directorate not issue the Deed of Variation changing contract service levels from 29 November 2007, until March 2009 and did this cause any financial loss to the Territory, or service level issues with Spotless.
(2) If the Deed took effect on 5 December 2008, how could performance indicators be applied from 29 November 2007.
(3) Given that pages 6 to 20 of the Deed of Variation set out the Key Performance Criteria and Key Performance Indicators (effective 29 November 2007 to 4 December 2008), for each key performance indicator listed in the tables, what has been the results, scores and weighted scores (by relevant reporting timeframe, for example, monthly, three monthly, six monthly and yearly) for the period 29 November 2007 to 4 December 2008.
Ms Burch: The answer to the member’s question is as follows:
(1) The TFM contract includes provisions that allow the Key Performance Indicators (KPI’s) to be changed at any time subject to agreement of both parties. There is also provision to allow a deed of variation to be agreed outside of extension of the contract.
Following the first 12 months of the contract a number of changes were agreed on 29 November 2007 to align the KPI’s more closely to the core business of Housing and Community Services. These changes took effect from that date.
In January 2008 the ACT Auditor General commenced a performance audit into the “Maintenance of Public Housing”. The then Chief Executive wrote to Spotless Facility Management Pty Ltd in April 2008 agreeing to an extension of the existing contract for a further 2 years.
Understanding that some recommendations would be made by the Auditor General regarding the contract and the KPI’s, Housing and Community Services advised Spotless it was taking the opportunity to re-negotiate the existing KPI’s and service level provisions into the Deed of Variation extending the contract.
In July 2008 the Auditor General’s Office made 12 recommendations which were accepted by Housing and Community Services and would require the integration of changes into the contract and internal business practices. It was agreed that any changes to the KPI’s that resulted would be effective from the date the Deed became effective (5 December 2008).
Given the incorporation of the Auditor General’s recommendations, the contract extension and the revised KPI’s, Housing and Community Services took the opportunity to reflect all these changes into the one deed of variation.
The fact that the agreement to change the KPI’s in November 2007 was subsequently included in the Deed signed on 17 March 2009 did not cause any financial loss to the Territory as the scoring of the KPI’s and any resulting discount or bonus payments to Spotless had already commenced on 29 November 2007.
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