Project Overview

TAG Advisory was engaged by the Public Transport Authority of Western Australia (PTA) as the Independent Estimator for the Rail Maintenance Services procurement, a critical tender process for ensuring the ongoing safety and reliability of Perth's metropolitan rail network. This engagement required TAG Advisory to provide independent, objective cost assessment of tender submissions for comprehensive rail maintenance services across PTA's extensive rail infrastructure. The role demanded rigorous analysis of complex pricing structures, maintenance methodologies and long-term service delivery models to ensure value for money in this essential service contract.

Key Challenges

The Rail Maintenance Services tender presented unique complexities in assessing pricing for ongoing maintenance activities across diverse asset types and operational environments. The scope encompassed routine maintenance, reactive repairs, capital renewals and emergency response capabilities across track, signalling, structures and associated infrastructure. Evaluating tender pricing required deep understanding of maintenance productivity rates, equipment costs, labour requirements and the operational constraints of maintaining an active railway whilst minimising service disruptions.

Market conditions added complexity with limited suppliers capable of delivering the comprehensive scope, creating potential pricing tensions. The long-term nature of the contract required assessment of escalation provisions, risk allocations and pricing mechanisms that would remain equitable over the contract term. Ensuring pricing transparency whilst protecting commercial confidentiality demanded careful management throughout the evaluation process.

Methodology and Approach

TAG Advisory implemented a structured independent estimation framework specifically tailored to rail maintenance services evaluation. Initial activities involved comprehensive review of the pricing documents to understand the scope of planned work and basis of cost estimates, including detailed discussions with appropriate PTA personnel to ensure complete understanding of maintenance requirements and service standards.

The analysis methodology encompassed detailed assessment of tender pricing including:

• Analysis of risk pricing and contingency provisions
• Assessment of labour, plant and material components
• Benchmarking against current market pricing for specialist rail maintenance
• Comparison of methodologies and productivity assumptions
• Evaluation of rate build-ups for validity and completeness
• Verification of overhead and margin allocations

The team produced a Draft Evaluation Report containing detailed commentary on analysis methodology for consensus meetings with PTA. Following PTA review and feedback a Final Report was prepared incorporating relevant comments and finalising the independent cost assessment. Throughout the evaluation, ad hoc advice was provided during pricing evaluation as requested by PTA.

Outcomes and Value

TAG Advisory's independent estimation provided PTA with confidence in the tender evaluation process and supported successful contract award for these critical maintenance services. The comprehensive analysis identified key pricing drivers, validated value for money propositions and highlighted areas requiring negotiation or clarification. Clear documentation of assessment methodology and findings supported transparent decision-making and satisfied probity requirements.

The independent assessment enabled PTA to negotiate optimal commercial terms based on objective cost analysis. Risk identification within pricing structures informed contract provisions and performance frameworks. The robust evaluation process withstood scrutiny and provided defensible foundations for this significant procurement decision affecting the reliability of Perth's rail network.

Conclusion

The Rail Maintenance Services engagement demonstrated TAG Advisory's capability to provide independent, objective cost assessment for complex service contracts critical to public infrastructure operations. By delivering rigorous analysis that balanced technical understanding with commercial assessment, TAG Advisory enabled PTA to secure essential maintenance services with confidence in value for money and pricing sustainability. This engagement reinforced TAG Advisory's role as a trusted independent advisor capable of supporting critical procurement decisions for Western Australia's essential transport infrastructure.