Page 2955 - Week 07 - Thursday, 7 June 2012
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(7) How has the Directorate assessed whether Spotless has achieved World’s Best Practice for maintenance expenditure, optimal asset performance, reliability and availability, extended asset life and predictable maintenance budgeting.
(8) Where Spotless has not met the commitments that it made in Volumes 1 and 3 of their contract with Government how has the Directorate performance managed Spotless to achieve agreed performance levels or imposed financial penalties upon Spotless for failing to meet contractual requirements.
Ms Burch: The answer to the member’s question is as follows:
(1) Spotless publicly advertised Expressions of Interest on an annual basis to attract new contractors and to market test the schedule of rates encouraging competitive pricing. Spotless annually undertake tender request and evaluation processes. In addition to public advertising, over the course of the contract, Spotless have held three “whole of industry” briefings to provide all suppliers advice on the contract and upcoming procurement opportunities.
In 2010, Spotless developed a Schedule of Rates which included a base rate as agreed by Housing and Community Services and Spotless for the purchase of goods and services provided under the Total Facilities Management Services contract. Spotless conducted a public tender inviting sub-contractors to submit proposals outlining whether they would provide a discount or charge a premium on the base rate. This system has been in operation since 2010.
In a 2012 analysis of the discount and premium system, reports indicate an average 4% reduction in the base costs of maintenance and improved value for money.
Under the contract, the Joint Consultative Committee (JCC) is responsible for overseeing the strategic management of the contract and the delivery of the services. The JCC sets the budget ratio of responsive repairs versus planned maintenance. Over the term of the contract the ratio has improved from 40% responsive- 60% planned to 30% responsive - 70% planned.
Over the course of the contract (7 years) the total number of Non Conformance Notices (NCN) issued is seventy. The number of NCN’s issued has fluctuated annually, although the trend line for NCR’s shows them reducing.
|
Year |
No of NCN’s |
|
2005 |
2 |
|
2006 |
24 |
|
2007 |
10 |
|
2008 |
13 |
|
2009 |
4 |
|
2010 |
7 |
|
2011 |
10 |
|
Total |
70 |
Spotless established a Quality Management System (QMS) which meets ISO 9001:2008. Spotless has maintained and managed the QMS throughout the Term of this Contract. Spotless employ staff that are qualified and experienced in QMS and Quality Assurance (QA). Housing and Community Services has the unreserved right to audit any aspect of this Contract and/or the Total Facilities Manager’s performance at any time and continue to undertake these audits on a weekly, monthly and quarterly
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