Productivity Packaging is part of our commitment to work with industry to explore new procurement models to deliver great projects for the people of NSW.
The two proposed models were designed to support the delivery of our future pipeline of work by providing an alternative approach that not only complements existing procurement and delivery models but also responds to changing market conditions.
Following an industry consultation process in late 2022, we are exploring opportunities to trial the three-phase procurement model on upcoming projects.
You can download the Productivity Packaging feedback report here.
In late 2022 we released a discussion paper called Productivity Packaging that outlined two proposed procurement models that sought to unlock greater capacity at a time of peak demand.
The two models were: three-phase procurement and portfolio procurement.
We consulted with industry and received written feedback from 22 organisations and held workshops with 16 organisations. Overall, industry welcomed the opportunity to be part of the discussion about alternative procurement models.
Based on feedback received, we committed to further developing the three-phase procurement model and exploring opportunities to trial this approach on projects. The portfolio procurement model received mixed feedback and due to the diverse nature of the current project pipeline, we did not pursue it further.
You can download the Productivity Packaging feedback report here.
Three-phase procurement
A model intended to streamline the design and procurement process and develop projects to a more advanced stage within a collaborative environment. Under this model a single designer would be sourced by Transport to assist developing a design.
Two construction tenderers would be engaged through a Registration of Interest (ROI) process to work individually with Transport and the designer in a collaborative environment.
This model would allow pricing and contract award based on a more developed design and with a better understanding of project risks.
We are exploring opportunities to trial three-phase procurement on upcoming projects.
Portfolio procurement
A model that would establish a series of contractor shortlists through a single ROI process. These shortlists would be used for the procurement of a portfolio of projects, creating greater flexibility to package works across Transport’s portfolio.
Projects could be added to the portfolio as they are funded for construction. The two models were proposed to apply to Tier 2 to Tier 4 road projects within our portfolio.
It was and is not proposed Tier 1 road projects, rail projects or other complex projects be procured via this model at this stage.
We are currently not exploring portfolio procurement at this stage.
Three-phase procurement
A model intended to streamline the design and procurement process and develop projects to a more advanced stage within a collaborative environment. Under this model a single designer would be sourced by Transport to assist developing a design.
Two construction tenderers would be engaged through a Registration of Interest (ROI) process to work individually with Transport and the designer in a collaborative environment.
This model would allow pricing and contract award based on a more developed design and with a better understanding of project risks.
We are exploring opportunities to trial three-phase procurement on upcoming projects.
Portfolio procurement
A model that would establish a series of contractor shortlists through a single ROI process. These shortlists would be used for the procurement of a portfolio of projects, creating greater flexibility to package works across Transport’s portfolio.
Projects could be added to the portfolio as they are funded for construction. The two models were proposed to apply to Tier 2 to Tier 4 road projects within our portfolio.
It was and is not proposed Tier 1 road projects, rail projects or other complex projects be procured via this model at this stage.
We are currently not exploring portfolio procurement at this stage.