Service Contracts

Corporate and Customer Services Contracts

Icon Water has two contracts with ActewAGL in relation to corporate and customer services, named the Corporate Services Agreement (CSA) and Customer Services and Community Support Agreement (CSCSA).

The current services contracts between Icon Water and ActewAGL are the most recent in a long history of arrangements for sharing the delivery of services in the context of utility services. This recognises the natural synergies that exist between the utilities.

As Icon Water is a publicly owned company providing essential utility services to the community, there are a number of mechanisms in place for oversight of Icon Water’s business and operations. The independent bodies with different review and oversight powers include:

The corporate and customer services include unique support activities and services required for running a utility. There are a range of services within the corporate and customer services contracts, including those listed below.

Corporate Services Customer Services and Community Support Services
  • Information communications technology (ICT) physical hardware, computer
    software systems and supporting technical services
  • Emergency contact centre
  • Economic regulatory services
  • Human resource services
  • Tax
  • Treasury
  • Accounts payable
  • Procurement
  • Warehouse management
  • Fleet management
  • Property and security
  • Accounting

  • Meter reading
  • Customer billing
  • Customer account management
  • Customer contact centre
  • Accounts receivable and credit management
  • Customer data storage and protection
  • Community communications
  • Corporate communications
  • Sponsorships

Audits related to the contract services

The contracts permit audits to be conducted in relation to the delivery of the services.

Icon Water undertakes an internal audit program as part of its internal audit strategy to help Icon Water learn from the past respond to the present and prepare for the future.

Where the scope of any audit relates to services or activities under the services contracts, the performance of those services or activities are included in the audit. In mid-2018 Icon Water undertook a review of the services contracts. The internal audit was undertaken by a member of our internal audit panel of service providers. A summary of the key audit findings can be found here.

Future of corporate and customer services provision after 2023

The current services contracts expire in 2023. In preparation for and well in advance of this date, Icon Water is assessing its ongoing service requirements and options.

A key focus for Icon Water will be to ensure that we can maintain access to the services required to operate our business efficiently and effectively, so that we can continue to provide high quality affordable water and sewerage services to our customers.

A project was initiated in March 2019 to define a sourcing strategy for the required services. The project is broken up into four phases to facilitate a structured approach to the important decisions to be made. Implementation of the sourcing strategy will follow from completion of this project.

Phase 1 Phase 2 Phase 3 Phase 4 Post project

Project Initiation

 

Identify the desired future requirements and develop sourcing decision framework


Preliminary assessment of sourcing options 


Detailed assessment of sourcing options 


Implementation of sourcing strategy
 
 COMPLETED COMPLETED   COMPLETED 
 

Completion by mid-2020

 
Completion by mid-2023
 
                                                                                                                                  

Since June 2019, Icon Water has been working with a strategic sourcing advisor with demonstrated experience and expertise in the definition and implementation of sourcing strategies to assist with the delivery of phases two to four. 

Market approaches

As part of deciding on how to source future services and understand what options are available, Icon Water is approaching the market to gather intelligence.

In addition to gathering sufficient information to support the decision making process and develop our future sourcing strategy, these approaches will help gauge the level of interest from the market in specific services.

Note: By approaching the market for these services, Icon Water is not committing itself to using third party service providers nor is it indicating that these are the only services for which further information will be gathered.

While our current service delivery provider (ActewAGL) will not be involved in these market approaches, separate discussions are underway with ActewAGL in parallel.

All market approaches will be released via Icon Water’s TenderLink portal.

  • Expression of Interest (EOI): ICT Operations and Service Delivery services
    • For ICT infrastructure management, operations and migration services
      • Release date: Week starting 20th January 2020
  • Request for Information (RFI): Payroll managed services
    • For the delivery of employee payroll services
      • Release date: Week starting 20th January 2020
  • Request for Information (RFI): Billing and Account Management Services
    • For the delivery of customer billing and account management services, including customer contact centre
      • Release date: Week starting 20th January 2020

This webpage will be updated as this project progresses.