In 1994, management of Canberra’s 5,000 hectares of urban open space, including parks, playgrounds and verges, was identified as an area which could deliver new efficiencies in service delivery under market testing.
The following year, a comprehensive review recommended a purchaser/provider split and the introduction of market testing. The result was the separation of management between the purchaser, Canberra Urban Parks and Places (CUPP), and the provider (CityScape).
Agreements between the two have defined the services to be provided, the standards of those services and the costs of provision. With a clear definition of services, market testing could then commence.
The new system has achieved marked advantages including a clearer agreement on the services to be delivered, documentation of services and assets, and a basis for restructuring of both organisations to achieve ‘right sizing’ and more efficient service delivery.
In spite of short term disruption during the initial period of change, the restructuring initiatives have delivered overall savings of 10 percent in the cost of park maintenance.
The first of six regional contracts for urban park maintenance has been awarded with a saving of over 20 percent on the previous year.
Specific training to equip staff to prepare their bids and other workplace reforms have enabled CityScape, the inhouse provider, to be commercially competitive.
It has recently won external work with the Commonwealth Government, and a three year contract for the maintenance of sportsgrounds.
