Prestatiegericht Onderhoud (PGO)

Performance based maintenance

Peter Booij 18th November 2011Manager Contracting

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Subjects

Historical perspective

Program PGO• Targets and means

Contract model PGO• Contract Structure• Requirements & Scope of Works• Tender principles & award criteria• Incentives en payment• Performance en costs

1994 2000 2007 20111998 2002 2005

OPC+

Outsoursing: contracts based on input:

workplans and maintenance specs

Increase in more business like attitude

OPC/PGOAlliance:

contracts based on KPI’s and maintenance units

Management focus Management focus more on RAMS than on more on RAMS than on

cost cost

Procurement: Performance based contracts

OPC

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Internal distiction Management - Operation

contracts based on activities and workplans

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1. Historical perspective

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BAMBAM Contract distribution in

OPC

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2. Program PGO

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Targets and means

Strong reduction of costs (25%+)

Reduction of Out of Service Periods

Improve on failure performance

Stabilize the overall quality of the infrastructure

>>>

Mobilize the ‘know how’ of contractors

Compete on smart maintenance not on man hour costst

Manage on infra performance in stead of realized work

Contract distribution in

PGO - november 2011

Gelre

Veluwe

De Peel

Drenthe

Rijn & Gouwe

Zeeland

Asset Rail

Strukton

Volker Rail

BAM Rail

Spitzke

In tendering

Betuwe

Dordrecht

Eemland

Twente

In preparation

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3. Contract model PGO

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Contract Structure

Requirements OPC to PGO

A change in style of requirements:

We used to prescribe the frequency and nature of inspections.

We made agreements on the quantity and nature of maintenance.

We did NOT make an explicit agreement on the performance of the infrastructure

>>> New requirements10

Reliability & Availability requirements

/ 11

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Waarborgen veiligheid

Waarborgen veiligheid

Waarborgen installatie-veiligheid

Waarborgen installatie-veiligheid

Waarborgen spoorweg-veiligheid

Waarborgen spoorweg-veiligheid

Voorkomen ontsporen

Voorkomen ontsporen Voorkomen

botsenVoorkomen

botsen Voorkomen ongelukken in

treinVoorkomen

ongelukken in trein

Handhaven veilige werking

systeemHandhaven

veilige werking systeem

Handhaven veiligheidsvoor

zieningenHandhaven

veiligheidsvoorzieningen

Handhaven vluchtwegenHandhaven

vluchtwegen

Ontsporingsvrij geleiden

Ontsporingsvrij geleiden

Ontsporingsvrij wisselen

Ontsporingsvrij wisselen

Ontsporingsvrij dragen

Ontsporingsvrij dragen

Voorkomen oplopen

Voorkomen oplopen Voorkomen

botsen trein - omgeving

Voorkomen botsen trein -

omgeving

Voorkomen botsen trein -

treinVoorkomen

botsen trein - trein

Voorkomen botsen trein –

kruisend wegverkeer

Voorkomen botsen trein –

kruisend wegverkeer

Voorkomen botsen trein -

obstakelsVoorkomen

botsen trein - obstakels

Voorkomen botsen trein –

mens/dierVoorkomen

botsen trein – mens/dier

Voorkomen ongelukken bij

berijdenVoorkomen

ongelukken bij berijden

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wisselenVoorkomen

ongelukken bij wisselen

Handhaven veilige EV

Handhaven veilige EV

Handhaven veilige

energievoorziening diesel

Handhaven veilige

energievoorziening diesel

Safety System Requirements

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Safety System Requirements

Keep the track within a alignment for x km/h

Prevent defects and electrocution on installations for power supply

Keep switches within safety tolerances

Keep railway crossings fail safe

Etc etc

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Durability requirements

Durability: condition in which the Life Cycle Cost are minimal (presumed)

Keep the position overhead wires within certain tolerances

Keep the switches within certain tolerances to prevent ‘wear and tear’

Keep the overall geometry of the track within certain tolerances

Repair all defects on the infrastructure within 3 months.

Etc etc

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Statement of Work

Use FMECA to define all possible (underlying) failmechanisms causing possible deviations to the requirements.

Use FMECA to define all MTBF of infrastructure objects

Maintain accordingly to the FMECA results

Use an inspection regime to validate FMECA results

Proof to ProRail that the infrastructure is OK!

Bottom line: PREVENT DEVIATIONS FROM HAPPENING!

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Scope of Works

All track and switches, power supply, signalling, overhead wire, civil structures, telecom

All ‘small’ renewals

All renewals caused by RCF

Contractor is responsible for the quality of all objects until ProRail executes her major renewal plans (5 year forecast is given to contractor)

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Payment & Incentives (simplified)

In principal: Monthly fixed price payments

no deviations? 105% payment of fixed price

>0 deviations? 75% payment of fixed price, 25% after deviations have been restored in time. Too late? 15% penalty

Small (large) number of deviations throughout the year? Up to 5% bonus (or 10% reduction)

Rather serious safety deviation: 30% penalty

Bonus (or reduction) up to 5% if Urgent Failure performance is going well (bad) throughout the year

Duration of the contract

In principal: 5 or 6 years

However: In case of a serious safety incident the contract will end. Contract will be re tendered, contractor is liable for damage

Too much Urgent Failures over a period of years? Contract may end.

/ 18

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Tender: Award Criteria for bidding

Fixed Monthly Price (85%)

Number of required ‘Out of service periods’ (15%), at least 99,37% availability

Urgent failures (Euro 100/minute reduction on price)

Savings on LCC by postponement of renewals by ProRail. (reduction on price)

And..

A few price agreements for settlement of future changes in the contract

Results so far

Financial targets have been well achieved

Urgent Failure minutes reduced. For example PGO 2: The contractor offers a reduction from 70.000 minutes to 43.000 minutes a year.

Out of service periods: Down by 50 – 75% and no more conflicts with the time table

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Questions?

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