2016-09-06 S&O Committee - Attachment 1 to Item 2 - Asset Management Roadmap

Develop Asset Management Delivery Platform
Capture of Asset Management Requirements in Contracts
Description of the Initiative:
Once the requirements of Council’s Asset Management System are understood, Council should
consider the staged revision of contracts that have an asset management component to address
these requirements. Specific considerations would include:
     •   Transferring responsibility for meeting Level of Service requirements;
     •   Clarifying asset specific roles related to the contracts (who maintains what);
     •   Defining requirements for asset condition or performance assessment (either carried-out by
         the contracted entity or the provision of access so others can);
     •   Formalising responsibilities for any asset reporting required by Council’s Asset Management
         System; and
     •   Ensuring transfer of any intellectual property rights to Council, where these may become an
         operational liability in the future.
CH2M does not currently have sufficient understanding of Council’s existing contracts and their
nature to form a view on the level of effort required by this initiative. Depending on the number and
level of standardisation of these contracts, any required changes may be dealt with on a contract-by-
contract basis of through the development of appropriate contract pro-forma/templates.
To ensure that future contracts related to asset management function achieve the best outcomes
for Council, Guidelines should be developed to assist Council staff to select the most appropriate
Form of Contract for the assets or services being sought. Specific considerations addressed in these
Guidelines would include:
     •   Balancing risk-transfer, quality of delivery and cost;
     •   The criticality of the assets/services covered in the contract scope;
     •   The level of prescription and/or compliance with Council Standards appropriate;
     •   The potential for economies of scale or other economic benefits; and
     •   The focus on performance or output.
Council Lead(s)
Procurement and Fleet Manager, Asset Planning Co-ordinator, Asset Management Steering Team
Interfaces with existing Council Initiatives:
         N/A
Dependencies with other Road-Map Initiatives:
         Asset Management Objectives: Defines the levels of service that may be transferred as
         performance objectives under the contract.
         Develop Asset Management Plans: The Asset Management Plans will define the asset-
         specific levels of service and reporting requirements that may be transferred under the
         contract.




32                                     ASSET MANAGEMENT ROAD-MAP REPORT