Wednesday, February 12, 2025

Transport for NSW slammed by Audit Office over bus contract failings

NSW Auditor-General, Bola Oyetunji.

A new report released by NSW Auditor-General, Bola Oyetunji, has outlined the failures of Transport for NSW’s (TfNSW) management of multi-million-dollar bus contracts across metropolitan Sydney.

The audit found the agency is not effectively managing bus contracts to ensure that operators are meeting contracted obligations and customer needs.

In its report, the NSW Audit Office says TfNSW has not responded strategically to major changes in commuter, work and travel patterns on metropolitan bus services.

Bus services in metropolitan Sydney are provided by private operators under contract to the NSW government. Transport for NSW (TfNSW) determines bus timetables, routes, stops, and frequency, while the operators deliver the specified bus services.

“TfNSW identified significant gaps in its strategic contract management capacity since 2022 but has not sufficiently addressed these. As a result, it has not undertaken essential medium to long term strategic activities required to effectively manage the GSBCs,” the Auditor-General’s report states.

“It has not conducted a holistic, systematic review of service levels across all regions to fully address the impacts of the post-COVID-19 period, and other changes such as new infrastructure and travel options like the Sydney Metro M1 line.”

The Office found that while first stop on-time running has stabilised since January 2023, operators are not consistently meeting their performance obligations for on-time running, cancelled trips and customer complaints.

“There are gaps in TfNSW’s contract management specific procedures and delegations. These gaps mean that the risks of inappropriate exercise of delegations, non compliance with contractual requirements and/or inappropriate use of public funds are not fully addressed.”

The Audit Office has recommended that TfNSW improve the capacity of its bus contracts management team and close the gaps in its contract management specific procedures and delegations, and start regularly auditing operator responses to customer complaints.

“TfNSW should implement strategic planning, including enhanced data analytics, aimed at improving bus operator performance,” the report states.

Read the full report here.

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