Figure 47: Identifying strategic, core and outstanding potential

only in light of the existing competitive environment, but also in anticipation of how the environment may develop in the future. If the construction activity doesn’t have much future competitive advantage or potential oncoming technologies, Sydney Metro will not invest much manpower, resources and capital into the work package. In addition to this, if its core criticality ranking is low, the procurement procedure will commence to employ the most suitable subcontractor.

Figure 47: Identifying strategic, core and outstanding potential

When a product or a service is vital to a Sydney Metro’s performance or is regarded as a core activity, it's usually preferable to adopt in-house skills. For example, the Metro Control, Communication, Radio and Signalling Systems will be installed by the team members. Thirdparty manufacture, for example, would be a mistake if a product is time-sensitive or subject to frequent design modifications. Conversely, outsourcing isa good choice for companies looking to:

• Reduce costs

• Gain flexibility to adjust output in response to changing demand • Phase out management of paperwork or training • Supervise fewer workers • Gain access to a new process or network technologies • Leverage external expertise

9.5 Contract Type Selection

9.5.1 Project Delivery Method

9.5.1.1 Basic Contract Packages and Scope of Sydney Metro Project

When it comes to selecting a project delivery method for Sydney Metro Project (Sydenham to Bankstown Southwest Line), this procurement management plan will conduct it based on the purpose of satisfying project scope and requirements.

This project is divided into and delivered in several major contract packages in line with Sydney Metro Project Delivery Strategy and meeting the Australian and NSW Government’s strategic planning and policy goals. Therefore, it indicates that the SSC (Southwest Station and Corridor works) contract would be delivered in a series of contracts instead of a single design and construct contract.

These contract package associated with their scope can be identified as:

● Trains, Systems and Operations and Maintenance (TSOM package)

This comprises the operation and maintenance of the rest part of 66km metro lines and 11 stations from Sydenham to Bankstown and delivery of core rail and communication systems.

● Line-wide package

This involves track services, station control systems, overhead line, and electrical sub-stations.

● Sydenham Station and Junction (SSJ) package

This contract package involves major upgrade work to the existing rail system and reconfiguration of existing track and rail system to segregate the T3 Bankstown Line and goods line.

● Southwest Metro Packages (Station upgrade packages and main works contract for corridor works)

The works include bridge and non-station civil works, station works, services buildings and facilities, electrical works, cable and services routing and track with other rail infrastructure.

● Platform Screen Doors and Mechanical Gap Fillers

The team will procure the platform screen doors (PSDs) and mechanical gap fillers (MGFs) for Sydney Metro Southwest.

● Lifts and Escalators