Mr. Redman questions inconsistencies in Water Corporation's statements regarding the Perth Region Alliance (PRA) contract term and the reasons for its termination. The Minister clarifies the contract extension mechanism and cites an internal review and alignment with Water Corporation's operating model as the reason for insourcing.

AnsweredQoN 5874Legislative Assembly
Asked
10 December 2019
Portfolio
Water

QuestionView source ↗

I refer to the Freedom of Information (FOI) documents provided to me from Water Corporation in respect to the Perth Region Alliance (PRA) insourcing decision, and ask: (a) Can the Minister explain why page 11 of the PRA business case refers to
the alliance agreement being extended to 2022, which is described as the
current term of the agreement, yet comments attributable to the CEO Mr
Pat Donovan in document 18 of the FOI states the contract was for 5
years (From 2012) and thereafter renewable every year; and (b) What is the nature of the clause in the PRA agreement the Water Corporation is acting under to terminate the alliance agreement?

AnswerView source ↗

Answered
11 February 2020
Responded by
Minister for Water
Response time
1 days
(a) The Alliance Agreement between Water Corporation and Programmed Facilities Management commenced February 2012 with an initial 5 year term. The Agreement permits the term of the Agreement to be extended by one year for each year the Alliance meets specified performance criteria therefore the term of the Agreement was extended until 2022.
The decision to in-source by the end of June 2020 was made by Water Corporation’s Board following an internal review of the alliance delivery model, and will better align metropolitan services with Water Corporation’s new operating model.
Bringing these services back into public hands will give Water Corporation control over its maintenance and operations within the metropolitan area – consistent with how it operates in other parts of the State.
(b) The Water Corporation and Programmed Facilities Management have agreed to end the Alliance through an orderly transition approach.

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