Senator Mackay asked the Minister for Communications, Information Technology and the Arts, upon notice, on 24 March 2003:

With respect to question no. 16 taken on notice by Telstra during the Environment, Communications, Information Technology and the Arts References Committee hearing, on 6 December 2002, into the Australian Telecommunications Network:

(1) Can details be provided of the categories of work which is outsourced to contractors, and the approximate amount of time at which Telstra benchmarks each task.

(2) How does Telstra ensure quality control over the network repair work done by: (a) contractors; and (b) sub-contractors.

(3) (a) How long after a job is completed is that work checked; and (b) what is the Telstra company practice for this.

(4) (a) Who in Telstra checks the work done by contractors on the network; and (b) can details of the process used for this checking be provided.

(5) (a) What percentage of contractor work is checked; and (b) can figures be provided for daily, weekly and monthly basis of the Telstra company practice for this process.

(6) (a) How is the quality control of contractor work reported on to Telstra management; and (b) what form does this reporting on quality control take.

Senator Alston (Minister for Communications, Information Technology and the Arts) —The answer to the honourable senator's question, based on information provided by Telstra, is as follows:

(1) Categories of Work within the Customer Access Network

· New Estates

· Network Extensions (Augmentation)

· Pre-provisioning and Reactive lead-ins

· Recoverable Works

· Network Maintenance (peak-load on occasions, as required)

· Telephony Installation & Maintenance

· Broadband Cable Services

Telstra periodically reviews benchmark rates. Typically these reviews occur prior to a `Request For Tender' being released to industry, when a process change occurs within a task or as part of the introduction of new technologies.

(2) (a) and (b) Telstra undertakes contract inspections of contracted work in accordance with Australian Standard 1199. The Australian Standard takes an approach based on sampling completed work. The standard sets out sample sizes based on the volume and type of activity that ensures high levels of statistical validity. A one in ten sampling rate is typical.

(3) (a) In most cases, quality inspections on completed work are performed between 1-6 weeks after the work is completed.

(b) The current Telstra practice is to use the sampling methods outlined in the response to part 2 above.

(4) (a) The inspections are carried out by a combination of Telstra employees (Quality Auditors and Field Contract Officers) and third party independent accredited auditor.

(b) A Summary of the Product Inspection Process for Capital Works completed by Contractors follows:

1. Contractor completes work in the field and submits an “As-Built Pack” containing updated plans and Bill of Quantities etc.

2. Quality Auditors collect As-Built Packs from the Data Management Centre after Telstra databases have been updated (approx 5 to 10 days after field completion).

3. Auditors combine projects completed in the same geographical area and similar timeframes into batches.

4. A sample is selected from each batch for inspection. Sample sizes are determined in accordance with AS 1199 - 1998 (eg If a batch contained 90 cable joints, 13 joints would be selected for inspection.)

5. Auditor inspects the completed activities (eg joints) using a standard checklist and the Technical Standards (Appendices to the ANCC (Access Network Commercial Contractors) contract).

6. Results are recorded on hard-copy field worksheets which are faxed to the quality office in Adelaide for database entry.

7. Audit results data are keyed into the Telstra Quality database.

8. Network Provider Feedback Reports are issued to Contractors, notifying them of any non-conformances.

9. Contractors respond to the non-conformance reports within 21 days.

10. Activities with defects identified during previous audits may be re-inspected.

(5) (a) Approximately 10% of contractor work is checked.

(b) On a national basis, some 294 activities are checked each day or some 1,470 per week, although this may vary depending on the amount of work completed.

(6) (a) and (b) Prime contractors provide Telstra with printed monthly operational reports detailing inter alia the results of quality audits, and the status of non-conformance and corrective action reports.