Integrated Services
Arrangements
Providing the Best
Services for Road Users
in Western Australia
Main Roads
Western Australia
Main Roads Western Australia (Main Roads)
is responsible for the stewardship and asset
management of the State’s $36 billion road
network of highways and main roads, including
network expansion, traffic management and road
user management. With about 18 000 kilometres
of highways and main roads covering 2.5 million
square kilometres, and with a diverse range of
climate and road user needs, it is one of the
largest geographically spread road agencies in
the world.
Integrated Services
Arrangements – the
Next Generation in
Road Operational Asset
Management, Network
Operations and Maintenance
Services Delivery
The Drivers for Change
All dynamic organisations learn from experience with a
view to improving capability and performance. With the
current contract arrangements reaching the end of their
contract durations Main Roads undertook an extensive
review having regard to the learnings achieved from
the current arrangements and its corporate strategic
direction. The review considered:
Corporate strategic direction for Main Roads;
The limitations of traditional forms of contract for long
term services delivery;
The availability of an adequately skilled human
resource pool (in Main Roads, industry and Local
Government) to undertake asset management and
network operation functions;
The impact of the resources boom in an already
competitive industry in attracting suitable partners
at the right price;
The requirement to demonstrate the need for and
attract appropriate funding to deliver services that
meet community expectations and changing road
user needs;
Providing effective governance; and
Main Roads, as asset owner, regaining influence and
control over long term operational asset management
planning and decision-making.
Purpose of Brochure
The purpose of this brochure is to give an overview of
the Integrated Services Arrangements (ISAs).
so that the network remains safe and serviceable
with greatest return on the investment made.
What are Integrated Services
Arrangements?
Capital works delivery: up to $3 million in value
and often referred to as ‘Minor Capital Works’.
Ranges from the design and delivery of ‘low value’
works (e.g. safety improvement via installation of
traffic devices, road markings and signs) through to
more complex and higher value works (e.g. signalised
intersections, geometry improvements, installation of
overtaking lanes).
ISAs are more than simply road maintenance contracts.
They are arrangements founded on relationship-based
contracting principles and have been developed to
provide integrated operational asset management,
network operations and road maintenance services.
They are based on the successful aspects of the
current Main Roads Performance Specified Maintenance
Contracts, learning from international practices as well
as extensive consultation and collaboration with industry
and Local Government in Western Australia.
At their heart, the ISAs will ‘in-source’ private sector
partners (known as ‘Integrated Services Providers’ – or
‘ISPs’) to work collaboratively with Main Roads to deliver
a range of services that are core to our business.
Scope of Services
This collaborative arrangement will play a significant
role in ensuring the road network links communities,
facilitates industrial, commercial and business
development, enables access to other modes of
transport and contributes towards the economic
advancement of the State and Australia. To meet these
needs, challenges and requirements the ISA scope of
services will include the following:
Road network operations: this includes providing safe
and efficient access to the network including freight
and public transport, managing incidents, regulatory
matters (e.g. road signage) and identifying
deficiencies for the planning of capital works
(including safety improvement projects).
Project and contract management services:
for projects undertaken by Main Roads and
the supervision of works undertaken by Local
Government and developers. Includes quality,
safety and environmental and heritage
management/disciplines.
The selection process for ISAs has focussed on getting
the best value from private sector partners, and has
considered which prospective ISPs have the greatest
likelihood of forming an effective collaborative
relationship with Main Roads.
Strategic Framework
The intent of the ISAs, in line with Main Roads’ strategic
direction, is to place Main Roads at the leading edge
of innovative relationship contracting. Main Roads’
Strategic Plan (referred to as “2k12”) and the strategies
developed to underpin 2k12 informed and provided the
framework for the development of the ISAs. 2k12 has
five strategic areas of focus, all of which are addressed
in the ISAs. These areas of focus are:
Providing the right roads for Western Australia;
Operational asset management: the development
and implementation of processes and tools to achieve
an integrated approach to the management of
network assets so as to steadily improve the
satisfaction of road users and stakeholders.
Making roads work for the community;
Creating our workforce of the future;
Inspiring leadership; and
Enhancing relationships.
Maintenance delivery: network/asset inspection
and associated delivery of routine and periodic
maintenance services, including resurfacing/
rehabilitation/reconstruction, undertaken in a way to
ensure the right treatment is applied at the right time
1
‘2k12 Strategic Plan: Achieving excellence through inspiring leadership
and strong collaborative relationships’. Main Roads WA 2007
ISA Objectives
ISA Principles
Main Roads developed a set of objectives to guide the
development of the ISAs and will incorporate these in
each ISA Agreement to guide and direct the operation
of the ISAs. These objectives are:
In order to meet the ISA objectives and achieve the
intended purpose and intent of the ISAs, a series of
principles will be agreed by Main Roads and its ISA
partners to reflect the high level commitments of the
parties under each ISA Agreement. These principles
will reflect, amongst other things, the following:
As asset owner, Main Roads regaining influence and
control over asset management decisions;
Achieving ‘best practice’ in operational asset
management;
Achieving ’best practice’ in network operations;
Building and maintaining capability and capacity;
Achieving innovation, on-going improvement and
outstanding performance; and
Achieving value for money through appropriate
risk sharing.
A ‘best for network’ approach, combining the best
systems and people from both the public and
private sectors;
A non-adversarial approach based on a culture
of open communication and collaborative
decision-making;
An open-book approach with transparency in pricing;
Recognition of the opportunities for developing and
retaining core knowledge and skills in the ISAs;
Support for flexibility and investment in research and
innovation; and
Shared decision-making.
ISA Features and Benefits
These principles will support and reflect the key
features and benefits which Main Roads intends to
embed within the ISAs. Key features and benefits
include the following:
Shared objectives based on collectively driven
strategic leadership;
A needs-based approach to asset management
planning and decision-making;
An outcome-focused, performance specified
approach to maintenance;
Processes that drive the consistent pursuit of high
levels of performance;
The sustainable involvement of regionally based
suppliers and Local Government;
Combining the best systems and people from both
public and private sectors;
Flexibility to manage uncertainty and readily adjust
to change;
Value for money (not just lowest price) based on the
delivery of the right asset and service outcomes at the
right price;
Main Roads remaining an informed purchaser;
Tailored provisions that meet the specific
requirements of each ISA Network; and
Co-location in shared office accommodation to
enable an effective collaborative working environment
to deliver the services, and enable seamless
interaction with Main Roads’ customers.
Key Features of the ISA
Agreement Framework
Each ISA Agreement will be based on relationship-based
contracting principles. Some of the key features of the
ISA agreements are:
Term: there are considerable benefits by putting in
place arrangements that have the potential to be long
term (for example, to enable each ISA to plan for and
deliver integrated services consistent with the optimum
whole of life cycle cost decisions for its network), so
long as the arrangements continue to provide the
outcomes Main Roads is seeking. To allow for this,
each ISA agreement will have an initial term of 5 years
and will include provisions that will allow the term to
be extended on an on-going basis beyond the initial
5 year term, so long as the ISA continues to deliver
on-going high levels of performance.
Performance: because the performance of each
ISA will be critical in relation to any decision to extend
the term of an ISA, ISA performance will be assessed
by an independent performance body (known as
the ‘Performance Evaluation Group’ – or ‘PEG’).
The PEG will be constituted to assess and evaluate
the performance of each ISA against an established
and proven performance framework – the ‘Business
Excellence Framework’ - and provide reports on each
ISA to Main Roads, about the performance of each
ISA. In this way the PEG will provide demonstrable and
independent assurance and confidence to the State,
road users and the community on how the ISAs
are performing.
Remuneration/reward: the private sector partners
(ISPs) in the ISAs will be paid the direct costs they
incur in providing the integrated services and a
margin comprised of corporate overhead and profit.
In addition, and to drive continuous improvement,
a proportion of the ISPs margin will be subject to
a commercial incentivisation regime (known as a
‘fee modifier’ regime). It will be implemented in
each ISA to incentivise favourable outcomes for
Main Roads and the ISPs in ‘key result areas’ - those
areas where Main Roads highly values a consistent
and high level of performance. The regime will
achieve this through the payment of a fee modifier
amount by Main Roads to the ISP to reward
outstanding performance that is ‘best for network’
(in effect, a ‘win-win’ outcome), or payment of a fee
modifier amount by the ISP to Main Roads where
performance is less than agreed and desired.
Governance and management: Main Roads has a
corporate governance structure in place to ensure
that decision-making, accountability and control
are in accordance with Main Roads’ legal and
governance requirements. Main Roads is also guided
by a wider framework to help ensure it recognises
and meets ethical, environmental and sustainability
challenges in the conduct of its day-to-day business
with its customers and stakeholders. The ISAs will
have a governance structure that aligns with and
supports this framework by having two separate areas
of focus within each ISA arrangement. These areas of
focus will be:
• Governance: led by the Governance Team for
each ISA, their role will include consideration
of strategic issues and the setting of strategic
direction, performance accountability and reward,
transparency, risk management, and ensuring
stakeholder input; and
• Management: led by the Regional Manager (or
Managers) for each ISA and supported by their
ISA Management Team, their role being to carry
out the delegated operational and performance
management functions related to the day-to-day
delivery of the integrated services efficiently,
effectively and safely.
In essence the governance and management
arrangements for the ISAs will support the strategic
strengths of Main Roads’ corporate and regional
structure.
ISA Network Configuration
and Commencement
of Services
There will be seven ISA Networks encompassing Main
Roads’ ten Regions. The ISA Networks recognise and
take into account the importance of regional boundaries,
regional characteristics and the viability of each ISA.
The ISAs are being procured in a way that will
help ensure a seamless transition to the new road
management and delivery services at the expiry of the
existing Term Network Contracts (TNCs). TNC expiry
dates, regional construction seasons, transition,
mobilisation and ISA procurement project and resource
management issues were all factors in determining ISA
commencement dates.
ISA NETWORK
COMMENCEMENT
OF SERVICES
Metropolitan
November 2010
South West & Great
Southern
November 2010
Mid West & Gascoyne
March 2011
Wheatbelt
March 2011
Pilbara
June 2011
Kimberley
June 2011
Goldfields-Esperance
August 2011
The ISA Networks are shown on the map below. Their
expected commencement dates are set out in the table.
ISA Networks
Roads
Network
A
B
C
D
E
F
G
WYNDHAM-EAST
KIMBERLEY
Kimberley
Pilbara
WYNDHAM
!
(
KUNUNURRA
Mid West & Gascoyne
GIBB RIVER
DERBY-WEST
Goldfields - Esperance
KIMBERLEY
A
DERBY
Wheatbelt
BROOME
South West & Great Southern
!
(
!
(
Metropolitan
FITZROY
CROSSING
BROOME
HALLS
CREEK
!
(
HALLS CREEK
KARRATHA
!
(
!
(
MARBLE
BAR
B
ONSLOW !(
EAST PILBARA
EXMOUTH
ASHBURTON
TOM
PRICE
!
(
!
(
CORAL BAY
PARABURDOO
NEWMAN
CARNARVON
!
(
MEEKATHARRA
UPPER GASCOYNE
WILUNA
MONKEY MIA
DENHAM
C
MURCHISON
MEEKATHARRA
SHARK BAY
CUE
KALBARRI !(
D
LEINSTER
MT MAGNET
LAVERTON
YUNA
!
(
GERALDTON
LEONORA
YALGOO
!
(
LAVERTON
LEONORA
MENZIES
COOLIMBA !(
JURIEN
BAY !(
CERVANTES !(
E
KALGOORLIE
!
(
LANCELIN !(
G
YILGARN
BULLFINCH
NORTHAM
Perth
MARVEL
LOCH
HYDEN
!
(
NORSEMAN
BALLADONIA
ROADHOUSE
KONDININ
KULIN
QUINDANNING
!
(
BUNBURY
!
(
COLLIE
WALPOLE
EUCLA
LAKE
KING
ESPERANCE
!
(
!
(
ESPERANCE
NORTHCLIFFE
!
(
!
(
!
(
DUNDAS
!
(
MUNGLINUP
!
(
HOPETOUN
BREMER
!
(
BAY
F
!
(
AUGUSTA
LAKE GRACE
!
(
KALGOORLIE/BOULDER
KAMBALDA
COOLGARDIE
!
(
!
(
DENMARK
ASSET AND
NETWORK
INFORMATION
Project: Annual/ISA Maps
TRIM Doc: 201021-0223/00
Data Source: IRIS
Data Currency: July 2010
Date of Print: 7-July-10