Professional Services

Introduction

This section defines professional services Technical inputs to an activity undertaken by persons skilled in fields relevant to that activity. activities for purposes of procurement and financial support.

The information in this section applies to the 2012-15 NLTP A National Land Transport Programme Interrelated and complementary combination of activities that, when delivered in a coordinated manner, produce synergies – can span more than one work category and more than one activity class, e.g. a programme could include a road improvement and public transport improvement activities. adopted by the NZTA under section 19 of the LTMA, as from time to time amended or varied and before.

Activity

Examples

Professional
services

Investigation
and evaluation

• preparing contracts and evaluating tenders for works and services, except professional services Technical inputs to an activity undertaken by persons skilled in fields relevant to that activity.
• investigating and resolving public enquiries related to activity planning, investigation, design and delivery
• activity evaluation (data collection, outcome evaluation, submission of activity-specific information to the NZTA)
• gathering information for activity management systems
• risk identification

Consulting

• activities for inclusion in regional land transport plans (RLTPs Regional land transport plans, prepared under Part 2 of the LTMA, as from time to time amended or varied. )
• road condition information
• contract dispute resolution services
• property management services
• consulting landowners and affected parties
• legalising existing transport corridors

Management

• activity delivery
• Total Mobility services and Total Mobility users
• activities with community groups
• building and resource consents

Planning and
strategies

• safety management strategies
• environmental management strategies
• asset/activity management plans
• project management plans
• education activities

Reporting

• project feasibility reports
• project development reports
• contracts reports (eg activity-based contracts and physical works contracts)
• report on the physical condition and performance of the land transport system and its components, including assets

Costing in -house professional services Technical inputs to an activity undertaken by persons skilled in fields relevant to that activity.

Where the cost of an activity includes the cost of professional services Technical inputs to an activity undertaken by persons skilled in fields relevant to that activity. obtained in-house, the full cost must be determined in accordance with generally accepted accounting practice (GAAP).

Specific guidance which may assist with the determination of the cost of services (by public bodies) is available from The Office of the Auditor General (the OAG) and from the Society of Local Government Managers (SOLGM).

The NZTA’s expectations are that for in-house professional services Technical inputs to an activity undertaken by persons skilled in fields relevant to that activity. , territorial authorities will attempt to reach break-even point, or an excess of income over operating costs of not more than 10 percent of the total operating costs, for each financial year.

For NZTA and Regional Authorities the full cost of in-house services is not to include profit.

NZTA approval of in-house services

Approved organisations are required to develop and document a strategic approach to procurement (refer NZTA Procurement Manual chapter 4) and seek NZTA endorsement of that strategy. The Procurement The purchase of works, goods or services. strategy must, amongst other things, address how professional services Technical inputs to an activity undertaken by persons skilled in fields relevant to that activity. are to be procured including which professional services (if any) are to be obtained in-house and the rationale for that decision. There is no requirement to address how the approved organisation will obtain the administration The components of activities that are reasonably provided in administering the delivery of land transport-related activities. it requires.

Approval for in house professional services Technical inputs to an activity undertaken by persons skilled in fields relevant to that activity. will usually be achieved through the procurement strategy A document required by the NZTA that sets out each approved organisation's strategy for procuring services and infrastructure using funds from the National Land Transport Fund. endorsement process but can be applied for separately.

An application for NZTA approval must address the following:

• Procurement The purchase of works, goods or services. strategy – reference to an endorsed procurement strategy A document required by the NZTA that sets out each approved organisation's strategy for procuring services and infrastructure using funds from the National Land Transport Fund. or an undertaking from the approved organisation that it will, over the period 2012 to 2015, amend its procurement strategy to incorporate that component. If an approved organisation does not have an endorsed procurement strategy which includes in-house professional services Technical inputs to an activity undertaken by persons skilled in fields relevant to that activity. then it must seek the NZTA’s approval by setting out, as part of its “undertaking” the scope of those services and the rationale for the decision to provide them in-house.

• Cost allocation methodology - provide a brief description of how costs (both professional services Technical inputs to an activity undertaken by persons skilled in fields relevant to that activity. and administration The components of activities that are reasonably provided in administering the delivery of land transport-related activities. ) are to be determined and how these costs will be allocated to activities.

• Management of in-house services – provide a brief description of how the approved organisation intends to manage its in-house professional services Technical inputs to an activity undertaken by persons skilled in fields relevant to that activity. operation(s).

The NZTA requires approved organisations to manage its in-house services delivery in a way that ensures both efficient and effective delivery. However, the NZTA does not specify how an approved organisation should structure or organise itself to do that, but expects approved organisations to be guided by the Standards NZ publication, Guide to Local Government Service Delivery Options (SNZ HB 9213:2003).

Full documentation of the process for determining in-house services costs is to be made available to the NZTA on request for audit purposes, including:

• total revenues;
• operating costs (including all overhead costs and depreciation) associated with the resources used;
• net surplus or deficit;
• the basis for reallocations of a net surplus or the funding of a net deficit.

Applications for approval to obtain services in-house are to be made to the NZTA’s Regional Manager, Planning and Investment, who may approve the application under delegations. The NZTA’s regional program advisors will assist approved organisations to develop an application for in-house services approval. They will also assist in ensuring that the costs are charged or allocated to the correct activities.