11 OPERATIONAL PERFORMANCE REGIME (OPR)
11.1
Balanced Scorecard: A balanced scorecard approach will be used for all Contracts (other than
Commercial Operating Units)]. The balanced scorecard is detailed in Table 1 (below) (the Balanced
Scorecard). Balanced Scorecard is an incentive/ payment system established to ensure that
through partnership with the Service Provider the Council receives excellent service delivery on its
public transport service contracts. An incentive will apply where the Service Provider excels, and a
payment will be deducted where the Service Provider fails to meet the required standards. The
Balanced Scorecard will be operated on a quarterly basis. The system design assumptions include:
11.1.1 For each indicator, achievement of the 'Standard' scores 50 points, 'Worst' case scores 0
points and Best case scores 100 points.
11.1.2 The points awarded on each Indicator are on the 0-100 scale in proportion to the Service
Provider's score relative to the 'Worst' to 'Best' range.
11.1.3 It is possible for the Service Provider to score more than 100 points or negative points on a
given indicator if the performance is outside the 'Best' or 'Worst' range.
11.1.4 The Weighted Points' for each indicator are the 'Points' multiplied by the % Weighting.
11.1.5 The 'Weighted Points' are summed over all the indicators to give a 'Total Points' score.
11.1.6 The 'Total Payment' (on an annual basis) is calculated on a scale where 100 Total Points
results in a payment by the Council to the Service Provider of 3.0% of the Contract Price. Zero
Total Points results in a payment by the Service Provider to the Council of 3.0% of the
[Contract Price] (and 50 Total Points results in zero payment by either party).
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11.1.7 The Balanced Scorecard provides patronage incentive to the Service Provider against a
standard of 3%annual patronage growth. For patronage, an increase of 3% patronage
system-wide above the standard (i.e. 6% in total) would result in 20 weighted points.
This 3% patronage gain represents 0.50 million passengers in Christchurch (2007/08 total patronage
= 16.65 million). Hence the incentive payment rate for changes in patronage (relative to the
standard) represents $0.60/passenger, on average across the whole public transport network in the
Region (this rate may differ somewhat between the Service Providers).
11.2
Service Level Changes: If an agreement is made between the Council and the Service Provider to
change Service Levels or if the Council uses its final discretion to change service levels, then it is
intended, that the patronage growth standard within the Balanced Scorecard model should be
adjusted in collaboration with the Service Provider. The Council will have final discretion with regard
any change to the Balanced Scorecard model. For service levels changes, the proposed base
patronage % adjustment would be (% change in bus kms) * 0.3. These 0.3 factors reflect the
demand elasticity with respect to changes in bus service kilometres.
11.3
Existing Services Patronage: As an example, if Council increases the amount of Services (bus
kms) to be provided by the Service Provider by say 10% in one year, the adjustment in base
patronage for that year for that service would be 10% * 0.3 = 3%. Thus the patronage standard for
that year would become 3% + 3% = 6% and the performance incentive payments would then apply
for performance relative to this 6% level. For subsequent years, the standard would revert back to
3%.
Note: that if Services are restructured without any change in bus kilometres, there would be no
adjustment to the standard patronage growth rate: Service Providers would thus benefit to the extent
that the restructuring results in additional patronage.
Should service levels be adjusted part-way through a contract year, any adjustments of the base
patronage for that year would be on an appropriate proportional basis.
11.4
New Contracts Patronage: If:
(a) vehicle kilometres for a particular Route changes by more than 10% from one contract to the
next; or
(b) a Route which was formerly a standalone Route becomes a through-routed Service; or
(C)
the Service is a new Service, then for the first year of the Contract, patronage will be
compared against the network (which will become the 'standard') and a patronage incentive
or payment will apply each quarter consistent with the balanced scorecard approach below.
The patronage achieved in the first year of service will be used as the base for the second
year and each successive year of the Contract will be compared to the previous
corresponding year.
11.5
Late Running: If the vehicle kilometres for a particular Route change by less than 10% from one
contract to the next and if the route is not changed from a standalone route to a through route then
late running ex the terminus will be based on the statistic from the previous year even if there has
been a change in Service Provider.
11.6 I f:
(a)
a routes vehicle kilometres change by 10% or greater from one contract to the next; or
(b)
a route which was formerly a standalone route becomes a through routed service; or
Canterbury Regional Council Partnering Agreement October 2011
(c) the service is a new service, then for the first year of the contract late running ex the
terminus will be compared against the network (Council contracts only) and an incentive or
penalty will apply each quarter consistent with the balanced scorecard approach below. The
late running ex the terminus statistic achieved in the first year of service will be used as the
base for the second and successive years of the contract.
11.6.1 The Council will determine the Balanced Scorecard values as set out in Table 1 (below) in
collaboration with the Service Provider taking into account external data and evidence where
possible. The Council will have final discretion with regard the Balanced Scorecard values.
Before any change is made the Council will give one month's prior written notice to the
Service Providers.
11.6.2 The Balanced Scorecard rating for each Service Provider will be determined by the Council
based on external data and evidence.
11.6.3 Service Providers will be advised of Balanced Scorecard results at the completion of each
quarter. Incentives and payments relating to any quarter will be calculated during the month
following the end of the quarter and will be spread evenly over the following quarter by
addition to or subtraction from a Contract Price (as made monthly by the Council).
11.6.4 The Balanced Scorecard will be calculated quarterly by summing the performance for each
Contract held by the Service Provider.
Canterbury Regional Council Partnering Agreement October 2011
Table 1: ECan Balanced scorecard System
Plausible Range
Monitoring
ILLUSTRATIVE EXAMPLE ONLY
Attribute
Indicator
Measure
Standard
Worst
Best
Weighting
Frequency
Notes
Service
Points
Weighted
Provider
Points
Score
A. Reliability &
Al. Late Running--ex
Propn trips running >5:00 mins
By route
+10%
-10%
11
M/Q
Sourced
from
10%
0.0
0.00
Punctuality
Terminus
late departing from terminus (%
(a)
Connexionz data (all
trips, by route)
trips). By route.
A2. Late Running-
Propn trips running >5:00 mins
By route
+10%
-10%
0
M/Q
As above.
10%
0.0
0.00
Intermediate Points
late at any intermediate timing
(a)
point (% trips, by route)
A3. Breakdown Rate
Propn trips not completed due
200
350 50
3
Q
Based
on
KPI
140
70.0
2.10
to vehicle breakdown in service
Indicators Report from
(trips/million)
analysis over 21 weeks
07/08 (average rate
209).
Also
sourced
from
Connexionz
data.
Breakdown is classified
as any time when a
vehicle is stationary on
a route for in excess of
15 minutes or any time
reported by the Service
Provider.
B. Complaints &
Bl. Complaint Rate
Substantiated complaint rate
60 100
20
16
Q
Based on analysis of all
52
60.0
9.60
Compliments
(within contractor responsibility)
complaints Jan 07-May
per mill pax
08. By Service
Provider.
82.
Complaint
% of all complaints for which
90%
80%
100%
4
Q
July 08 stats give
86%
30.0
1.20
Responsiveness
contractor
provides
full
average 81%.
response to complainant within
5 working days and to Council
within 7 working days.
83. Compliment Rate
No. of compliments (within
0 0 10
5
Q
Analysis Of
5 75.0
3.75
contractor responsibility) per
compliments
(within
mill pax
contractor influence) for
period July 07-June 08
gives rates by Service
Provider in range 5.2 to
8.6.
Canterbury Regional Council Partnering Agreement October 2011
C. Bus Service
Cl. Mystery Shopper
% scores on Council MS
M/Q
By Service Provider.
ratings
survey--by
each
feature
Surveyed
monthly--
assessed:
score
monthly
or
quarterly.
(A) Initial Impression
5
95%
70.0
3.50
93%
88%
98%
(B) Friendly and Helpful
7
84%
63.3
4.43
80%
65%
95%
(D) Smoothness of Ride
4
87%
55.0
2.20
86%
76%
96%
(E) Quality and Comfort
4
92%
70.0
2.80
88%
78%
98%
(F) Driver's Presentation
4
88%
65.0
2.60
85%
75%
95%
Dl. Internal Condition
Council survey average rating
7.5
5.5
9.5
5
M/Q
Standard
and
range
7.2
42.5
2.13
rating
value--bus interior
based
on
review of
D. Bus Appearance
monthly averages 2007-
& Condition
08.
D2. External Condition
Council survey average rating
7.5
5.5
9.5
6
M/Q
Standard
and
range
7.7
55.0
3.30
rating
value--bus exterior
based
on
review of
monthly averages 2007-
08.
E. Revenue
E. Fares Evasion
% pax without valid ticket for
0.5%
1.0%
0.0%
6
M/Q
Range
based
on
0.3%
70.0
4.20
Protection
journey
Adelaide data (2001-08)
- mostly in range 0.1%-
0.4%. Monitoring to be
based
on
Council
random inspections. By
Service Provider.
F. Patronage
F. Total Passenger
% increase in passenger
3%
0%
6%
20
M/Q
From Council patronage
5.0%
83.3
16.67
Boardings
boardings over previous year
records
(aggregated
from routes to Service
Providers)
(a). Standard adopted for each route to be based on previous 12 months' performance on that route: if late proportion was <10%, standard =10%; if greater than
30%, standard =30%; otherwise standard =actual late proportion.
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11.7
Calculation of Incentive/Payment: Assuming the Service Provider has a Contract
Price of $10 million per year. This equates to $2.5 million on a quarterly basis. 3% of
this amount is $75,000. Hence the Service Provider would be paid $75,000 if they
scored 100 points.
In the illustrative example contained in Table 1 the Total Points Score is 58.48. The
payment received by the Service Provider would be 58.48 - 50 = 8.48.
(58.48-50*50 multiplied by $75,000 = $12,720 to Service Provider for the quarter. This
would be paid in 3 equal monthly instalments of $4,240.
The same methodology will also apply for scores of less than 50 points. For example: A
Service Provider may score 36 points. The penalty to be deducted would be 36 - 50 = -
14.
(36-50)/50 multiplied by $75,000 = -$21,000 from the Service Provider for the quarter.
This would be deducted in 3 equal monthly instalments of -$7,000.
Table 1 is available in electronic form on request. The Balanced Scorecard (Table 1)
will apply to all future contracts operated by the Council.
11.8
Indiscretion: The Council may issue to the Service Provider a Notice of Indiscretion
where the Council considers the Service Provider has committed an Indiscretion. A
Notice of Indiscretion will incur no penalty payment to the Service Provider.
An Indiscretion is defined as any non-compliance with the Minimum Standards (as
detailed in Table 3) or Vehicle Quality Standards (as detailed in Table 4) which the
Council decides is minor and unjustified.
A tolerable range of allowable Indiscretions per calendar month relative to the total fleet
of the Service Provider is detailed in Table 2.
For example: A Service Provider has 3 existing Contracts with the Council and is
awarded 2 further Contracts after February 2009. The total fleet size of the Service
Provider across all Contracts is 50 vehicles. The total number of allowable Indiscretions
for this Service Provider per calendar month is 5 (as detailed in Table 2),
Table 2: Indiscretions
Indiscretions per
Fleet size
calendar month
1 - 10
1
11 - 20
2
21 - 30
3
31 - 40
4
41 - 50
5
51 - 60
6
61 - 70
7
71 - 80
8
81 - 90
9
91 - 100
10
101 -
110
11
111 -
120
12
121 -
130
13
131 -
140
14
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| 141 -
150
15
151 -
160
16
161 -
170
17
171 -
180
18
181 -
190
19
191 -
200
20
Note:
For fleet sizes greater than 200 the incremental rise will be identical to that shown in
Table 3, i.e. 10 fleet vehicles per indiscretion. Fleet sizes are to be advised to the Council
by the Service Provider immediately following the result of any Tender and are to include
all Vehicles used in providing the Services including backup Vehicles.
11.9
Minor Breach of Contract: A Minor Breach of Contract, which may involve the
imposition of a notice (Minor Breach of Contract Notice) and applicable payment by the
Service Provider, includes but shall not be limited to the following:
11.9.1
Missed Trip - any trip where a Vehicle does not complete any portion of that trip,
or where a departure from a terminus is late 70% or more of the scheduled
frequency (for example: 70% of a 30 minute frequency is 21 minutes late), with
scheduled frequency defined as the time between the scheduled start time of
the trip being measured and the scheduled start time of the next trip on the
same route at the same start point. A missed trip is also where a vehicle that is
on service for a trip is displaying "not on service" (or similar) on the destination
screen/s and does not pick up or drop off passengers for that trip.
11.9.2
Partial Missed Trip - any trip where a Vehicle completes a portion of the trip only
missing one or more stops along the route. The Vehicle must be on service for
the portion of the trip, picking up and dropping off passengers. A partial missed
trip includes any trip where a vehicle runs out of fuel on route.
11.9.3 Missed Connection - any incidence where a guaranteed connection is not met.
11.9.4
Insufficient back-up Vehicles - where at any time there is less than the required
number of backup Vehicles at the Service Provider's depot in the designated
Vehicle parking area (to be identified by the Service Provider). The minimum
requirement is that an additional 10% of Vehicles over that required for all of the
Services are parked and available for immediate use. For example If a Service
Provider requires 50 peak Vehicles to provide contracted services, then the
minimum number of additional Vehicles required to be in the yard available for
immediate use is 5 Vehicles.
At least 50% of the required 10% backup Vehicle capacity must be serviceable
and able to be used immediately. The remaining 50% may be in the Service
Provider's workshops or the workshops of a third party for minor maintenance
providing they are available for use at short notice (same day).
11.9.5
Real Time Passenger Information (RTPI) System: The Council can at its
discretion use RTPI System to assess available backup Vehicles in a Service
Provider's depot. Service Providers must ensure that unserviceable Vehicles
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have the ignition switched on at least once each day to ensure that the Vehicle
location can be identified. Where this is not possible the Service Provider must
report this to the Council. Council monitoring staff may also be used to verify
Vehicle serviceability at any time.
11.9.6
Unserviceable Electronic Ticket Machine (ETM) - Data not made available prior
to weekly Council settlement - any instance where a vehicle travels for more
than 1 trip without a serviceable ETM or any instance where Council does not
receive the required data in order to carry out the weekly settlement process.
11.9.7 Early running - any incidence of Vehicles running ahead of the scheduled time.
11.9.8
Unblocked Vehicle in Real Time Information System - any Vehicle identified
within the Real Time Information System as not being assigned to the trip it is
undertaking, or any trip that is not assigned a Vehicle during the scheduled
duration of that trip.
11.9.9 Late Assignment - Any trip having a Vehicle assigned after the scheduled
departure time.
11.9.10 Vehicle not tracking in Real Time Information System - any Vehicle identified as
not tracking in the Real Time Information System. This applies to all Vehicles not
able to be polled while undertaking any contracted trip.
11.9.11 Not Stopping - any incidence of a Vehicle not stopping to pick up or drop off
intending passengers as observed by the Council's monitoring staff.
11.9.12 Non Compliant Vehicle - any Vehicle that is found to have a Vehicle Quality
Score of 6 or less in either internal or external categories and failed on recheck.
If a non compliant Vehicle has an internal or external attribute score of 5 or 6 the
Service Provider will have 3 working days to repair the fault, after which time the
Council will recheck the fault causing the Vehicle to be non compliant. The
Service Provider may only incur a payment liability if the fault is not repaired at
the time of recheck.
If a non-compliant Vehicle has an internal or external attribute score of 4 or less
the Vehicle is required to be removed from service for repair. As the Vehicle will
not be in service on the network the 3 working days to repair requirement is no
longer applicable. A back up Vehicle must replace the removed Vehicle and this
Vehicle must be fully compliant with the Vehicle Quality Standards and External /
Internal Scoring Schedules. Prior to the non-compliant Vehicle being reintroduced
to service the Service Provider must advise the Council monitoring staff. The
Vehicle will then be rechecked to ensure compliance prior to entering service.
Upon recheck, if the Service Provider is informed by the Council that the fault has
not been repaired within the required timeframe this will result in a Minor Breach
of Contract. The Service Provider will then have another 3 working days to repair
the fault and if the Service Provider fails to repair the fault in the required time
period again it will result in an additional Minor Breach of Contract.
The Council may issue a Notice of Indiscretion (if the Service Provider has not
exhausted its allowable Indiscretions per calendar month) or Minor Breach of
Canterbury Regional Council Partnering Agreement October 2011
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Contract Notice (with the applicable payment liability) for any non-compliant
Vehicle. This process can continue repeatedly with a Notice of Indiscretion or
Minor Breach of Contract Notice every time the Service Provider fails to repair the
fault within the required timeframe until the fault has been repaired.
All Vehicles will be given a score each month. One extension of time to repair a
fault (at the Council's complete discretion) of up to a maximum of 6 weeks may
be allowable, but only where it can be proven that it is difficult to source spares,
etc.
11.9.13 Incorrect Road User Charge Licence - any instance where a Vehicle does not
have a current and correct Road User Charge licence in accordance with the
requirements of the Road User Charges Act 1977.
11.9.14 Size of Vehicle Incorrect - any incidence where the Service Provider uses a
Vehicle that contravenes any vehicle size or capacity contract requirement.
11.9.15 Unauthorised vehicle in service - where any Vehicle that has an internal or
external fault with a score of 1 to 4 (therefore removed from service for repair)
and has been reintroduced to service without the Service Provider informing
Council monitoring staff that the fault has been repaired and has not been
signed off as repaired on recheck by Council monitoring staff.
11.9.16 Incorrect Destination - any incidence of a Vehicle travelling along a route
displaying an incorrect destination or number as observed by Council monitoring
staff.
11.9.17 Other - any deviation from the requirements of the relevant Contract [or RFT],
for example:
(a) a Vehicle parked at the terminus of a route with engine running
continuously.
(b) the Service Provider being unable to be contacted when required during
hours of service operation.
(c) the Service Provider using uniquely branded vehicles on routes other
than those for which intended.
11.9.18 Any other matter which the Council at its complete discretion determines is a
Minor Breach of Contract.
11.10 Minor Breach of Contract Notice: The Council may issue to the Service Provider a
Minor Breach of Contract Notice where:
(a) The Service Provider commits a Minor Breach under clause 12.8;
(b) The Service Provider has exceeded the total number of allowable Indiscretions
for a calendar month relating to Minimum Standards or Vehicle Quality
Standards [in Table 3 and Table 41; and
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(c) The Service Provider has committed any other Minor Breach of Contract which
the Council considers is unjustified.
A Minor Breach of Contract Notice and/or the applicable payment may be given where,
in the reasonable opinion of the Council, the nature or quantity of non-compliance does
not constitute a sufficiently serious breach but still warrants the issue of a formal default
notice. Any issue of a Minor Breach of Contract Notice will be taken into consideration
when assessing future tenderer's attributes. A Minor Breach of Contract Notice may
result in a payment liability being imposed on the Service Provider as set out in Table 3
and Table 4. The Council shall be entitled to deduct any payment liability from any
payments due to the Service Provider.
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Table 3: Minimum Standards Schedule for contracts let post February 2009
Non Compliance Type
*Reported by
Not Reported by
Service Provider
Service Provider
Penalty
Penalty
Missed Trip
$300
$3000
Partial Missed Trip
$300
$3000
Missed Connection
$300
$3000
Insufficient Back-up vehicles
$300
$3000
Unserviceable Ticket Machine/ Data
not made available prior to
$200
$2000
settlement.
Early Running
$200
$2000
Not Stopping
$200
$2000
Unblocked bus in RTI System
$200
$2000
Vehicle not tracking in RTI system
$200
$2000
Incorrect Road User Charges
$200
$2000
Displayed
Size of vehicle incorrect
$200
$2000
Unauthorised vehicle in service
$200
$2000
Late Assignment
$100
$1000
Incorrect Destination
$100
$1000
Other
$100
$1000
Table 4. Vehicle Quality Minimum Standard Schedule
Internal or External Attribute
Non Compliant Vehicle on
Score
Recheck Penalty
Attribute Score 1-4
$800
Attribute Score 5
$400
Attribute Score of 6
$200
Canterbury Regional Council Partnering Agreement October 2011
