This document discusses the challenges and benefits of procuring services in the public sector from both an agency and supplier perspective. It provides an overview of Sydney Trains' strategy and spend profile. It then discusses the challenges agencies face in meeting NSW government accreditation requirements and the benefits this provides suppliers such as standardized processes and timely payments. Suppliers note challenges around cost containment and project timelines but benefits like future business opportunities and responsive agency personnel. The presentation concludes with an invitation for questions.

1. 1 Commercial in Confidence
An Agency and A Supplier perspective
The Challenges & Benefits of Procuring
Services in the Public Sector –

2. 2
Agenda
• Sydney Trains- video
• Agency Challenges & Benefits
• Supplier Challenges & Benefits
• Questions

3. 3
Sydney Trains Video

4. 4
Sydney Trains’ Strategy
Our
Objectives
Our
Objectives
Improve
customer
experience
with rail
transport
services
Trains on time
Implement
efficiencies
across the
business
Grow
patronage on
public
transport
Create and
foster an
environment
that improves
safety
Reform
delivery of
rail services
Improve Asset
Reliability
Create an
effective and
accountable
culture
Drive
productivity
and efficient
Create change
and resilience
OUR
Vision
OUR
Vision
Our vision is to keep Sydney moving by delivering safe, customer-focused, reliable and clean rail services.
We contribute to the success of transport in NSW by running effective and efficient rail services
which exceed our customers’ expectations, support growth and contribute to the broader community
and the economy.
OUR
Themes
OUR
Themes
Customer &
Accessibility
Travel Business Environment Safety Asset People

5. 5
Spend Profile
+ Indirect’s FY 12/13 = $500m
$1.2BN

6. 6
Category Positioning Assessment

7. 7
Strategic Procurement Structure -
Snapshot
Mike Blanchard
GM Strategic
Procurement (CPO)
Chris Adam
Manager Plant Hire
Services
Janine Meylan
Manager Supplier
Performance
Barbara Potter
Manager
Governance &
Procurement
systems
Gavin Hicks
Manager
Procurement Project
Office
Mark Jones
Manager Strategic
Category
Management
Michelle Day
Executive Assistant

8. 8
• One Steel
• Engineering
Design Panel
• Siemens
• UGL Unipart
• Downer EDI
• Pacific National
• SAP / ARIBA
• TCS
• Transfield
• SNP , ADT
• Swetha
• SPENO
• Metro Busses
• TSA (JH)
• Transfield
• Multi Civil & Rail • Ad shell
• AP Outdoor
• Caltex
• Red Energy
Assets &
Materials
Rail
Engineering
General Hardware
Cables
Signals
Inventory
Rolling Stock Comms &
Enterprise
Services
Revenue &
Productivity
Construction &
Building
Architecture
Surveying
Engineering Services
Planning Survey
Fencing
Landscaping
Concrete
Customer Info
Communications
Lifts & Escalators
Catering
Security
Track Services &
Operations
Vegetation Control
Graffiti
Busses
Rail Operations
Services
Disposal
Media /Marketing
Media
Advertisement
Chemicals
Fuel
Plant
Waste Management
Maintenance
Systems & Services
Acquisitions
Rotables
Hire Environment
Services
Electricity
Safety & Environment
Services
SEQR
Vending
Productivity
Cleaning
By 2019 Sydney Trains will be a safe, customer-focused, modern, efficient and competitive business. We will be
recognised as a commercially astute business, and regarded as Australia’s best operator..

9. 9
NSW Government Accreditation
• Transport Act
• All Agencies need NSW Gov Accreditation
• Accreditation Level Important
• Criteria Tested
1.Strategy
2.Governance, Controls and Policy
3.Procurement Process
4.Procurement Tools & Systems
5.Information Management
6.Organisation & Capability

10. 10
NSW Government Accreditation
• KPMG
• Results
Our Final Scores
Key Criteria
Actual
weighted
score %
Maximum
weighted
score %
Strategy 15.0% 15.0%
Governance, Control& Policy 10.0% 10.0%
Procurement Projects 25.0% 25.0%
Procurement Tools & Systems 15.0% 15.0%
Information Management & Reporting 10.0% 10.0%
Organisation & Capability 21.3% 25.0%
Total 96.3% 100.0%

11. 11
Challenges and Benefits for Suppliers
from an agency perspective
Challenges for Suppliers
• Procure under NSW Government Guidelines and
Accreditation
• Sydney Trains Safety Focus
• Sydney Trains Insurance requirements
• Specialised Knowledge
• Complex Stakeholder Engagement
• Long Term Published Plans v Changing Plans
• Time it takes to engage through a process

12. 12
Benefits for Suppliers
• 87 % on contract through Panel Supply
• Panel Supply through Quotations
• Payment on Time
• Additional Work if Delivery is above expectations
• Strategic Supplier –Supplier development
Program (SRM)
• Dedicated Contract Management resources
• Not seen as litigious – Fair and Transparent
Challenges and Benefits for Suppliers
from an agency perspective

13. 13
What our Suppliers Say about Sydney Trains
• 2nd Year of Voice of the Supplier Survey
conducted by CEB
66% Doing Business with SYDT
> 5 years

14. 14
What our Suppliers Say about Sydney Trains

15. 15
Supplier Stated Challenges and Benefits
Challenges
• Cost Containment
• Project Management Cycle Time
• Intent / Vision
• Execution
• Requirements or specifications
• Contracting

16. 16
Supplier Stated Challenges and Benefits
Benefits
• Future Business
• Responsiveness
• Payment timeliness
• Personnel
• Purchase Orders
• Cost Expectations

17. 17
QUESTIONS

18. 18