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AEO Authorisation Governance Framework

T MU MD 00007 ST

Standard

Version 2.0

Issued Date: 01 December 2014

Effective Date: 05 January 2015

Important Warning This document is one of a set of standards developed solely and specifically for use on the rail network owned or managed by the NSW Government and its agencies. It is not suitable for any other purpose. You must not use or adapt it or rely upon it in any way unless you are authorised in writing to do so by a relevant NSW Government agency. If this document forms part of a contract with, or is a condition of approval by, a NSW Government agency, use of the document is subject to the terms of the contract or approval. This document may not be current. Current standards are available for download from the Asset Standards Authority website at www.asa.transport.nsw.gov.au. © State of NSW through Transport for NSW S

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T MU MD 00007 ST AEO Authorisation Governance Framework

Version 2.0 Effective Date: 05 January 2015

© State of NSW through Transport for NSW S

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Standard governance

Owner: Manager Authorisation, Asset Standards Authority

Authoriser: Principal Manager Authorisation and Audit, Asset Standards Authority

Approver: Director, Asset Standards Authority on behalf of ASA Configuration Control Board

Document history

Version Summary of change

1.0 Issued under standard number TS 1050 on 20 May 2013

2.0 Second issue, number change to T MU MD 00007 ST

For queries regarding this document, please email the ASA at

[email protected]

or visit www.asa.transport.nsw.gov.au



© State of NSW through Transport for NSW of 20

Preface

The Asset Standards Authority (ASA) is an independent unit within Transport for NSW (TfNSW)

and is the network design and standards authority for defined NSW transport assets.

The ASA is responsible for developing engineering governance frameworks to support industry

delivery in the assurance of design, safety, integrity, construction, and commissioning of

transport assets for the whole asset life cycle. In order to achieve this, the ASA effectively

discharges obligations as the authority for various technical, process, and planning matters

across the asset life cycle.

The ASA collaborates with industry using stakeholder engagement activities to assist in

achieving its mission. These activities help align the ASA to broader government expectations of

making it clearer, simpler, and more attractive to do business within the NSW transport industry,

allowing the supply chain to deliver safe, efficient, and competent transport services.

The ASA develops, maintains, controls, and publishes a suite of standards and other

documentation for transport assets of TfNSW. Further, the ASA ensures that these standards

are performance based to create opportunities for innovation and improve access to a broader

competitive supply chain.

The ASA maintains and administers the framework for assessment, authorisation, surveillance,

review and audit of organisations that provide engineering services in relation to the asset life

cycle of NSW transport assets.

This is the second issue of this standard. The changes to previous content include the following:

removal of 'range of engineering disciplines' section

removal of 'AEO framework document tree' diagram

addition of asset life cycle definition

addition of new references to TfNSW standards and International standards

update of authorisation process description

various editorial and referential updates

change of number from TS 10500

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Table of contents

1. Introduction............................................................................................................................................5

2. Purpose...................................................................................................................................................5 2.1. Scope ..................................................................................................................................................................... 5 2.2. Application............................................................................................................................................................. 5

3. Reference documents ...........................................................................................................................6

4. Terms and definitions ...........................................................................................................................6

5. Context and supporting documentation .............................................................................................8

6. Industry benefits of authorisation........................................................................................................8

7. Key AEO requirements..........................................................................................................................9

8. Legal and commercial implications.....................................................................................................9

9. Range of engineering disciplines ......................................................................................................10

10. Engineering service areas ..................................................................................................................10 10.1. Feasibility and concept....................................................................................................................................... 10 10.2. Design .................................................................................................................................................................. 11 10.3. Fabrication and manufacturing.......................................................................................................................... 12 10.4. Construction and installation............................................................................................................................. 12 10.5. Systems engineering and systems integration ................................................................................................ 13 10.6. Inspecting, testing and commissioning ............................................................................................................ 13 10.7. Maintenance ........................................................................................................................................................ 13 10.8. Decommissioning and disposal......................................................................................................................... 13 10.9. Engineering, procurement and construction management............................................................................. 13 10.10. Engineering consultancy services .................................................................................................................... 14

11. AEO authorisation requirements .......................................................................................................14

12. AEO authorisation process ................................................................................................................14 12.1. Submit an AEO application ................................................................................................................................ 15 12.2. Assess an AEO application................................................................................................................................ 15 12.3. Address AEO applicant gaps ............................................................................................................................. 15 12.4. Issue of authority to applicant AEOs................................................................................................................. 16 12.5. Monitoring and auditing of AEOs ...................................................................................................................... 16

13. AEO validity period..............................................................................................................................18

14. Organisational process context .........................................................................................................18 14.1. Procurement ........................................................................................................................................................ 18 14.2. Engineering assurance....................................................................................................................................... 18 14.3. Quality assurance ............................................................................................................................................... 19 14.4. Safety assurance................................................................................................................................................. 19 14.5. Competence management.................................................................................................................................. 19 14.6. Legislation ........................................................................................................................................................... 19 14.7. Regulatory bodies ............................................................................................................................................... 20

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1. Introduction

Transport for New South Wales (TfNSW) is collaborating with industry to reform the engineering

governance of transport projects and to utilise the skilled resources from both government and

industry organisations to the greatest effect. A key initiative is the authorisation of engineering

organisations to take responsibility, on behalf of TfNSW, for assuring engineering services or

products.

2. Purpose

The purpose of this standard is to set out a framework for the authorisation of engineering

organisations that are engaged to provide engineering services to TfNSW. The framework

allows organisations to self-perform assurance of engineering services or products under their

own engineering assurance system, and to manage the competence of their engineering staff

under their own competence management system.

2.1. Scope

This standard sets out the framework under which engineering organisations can apply for, and

be authorised to provide, specific engineering services to TfNSW.

This standard includes the following areas:

the expected benefits to both TfNSW and the Authorised Engineering Organisations

(AEOs) of the new governance framework

the context of this document with related documentation, including supporting guidance

the engineering disciplines covered

the engineering life cycle service areas applicable over the full asset life cycle

the requirements placed on AEOs to fulfil their authorisation requirements

the AEO authorisation process

the AEO authorisation system

the context of the AEO framework and process with other organisation processes

the AEO validity period

the legal and commercial implications

2.2. Application

The intended audience for this standard includes TfNSW, rail infrastructure managers, rail

transport operators, and suppliers of engineering services to the NSW rail network.

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The audience is expected to understand the requirements of this management standard and the

supporting guidance material, and to have the capability to ensure that the necessary

management arrangements are established that will ensure compliance with the authorisation

requirements under this governance framework.

3. Reference documents

The following documents have been referenced or referred to throughout this document.

International standards

ISO 9001: 2008 Quality management systems - Requirements

ISO 55001: 2014 Asset management - Management systems – Requirements

Australian standards, acts, regulations

AS/NZS 4801: 2001 Occupational health and safety management systems - Specification with

guidance for use

Work Health and Safety Act 2011 (NSW)

Rail Safety National Law (NSW) applied (with modifications) as a law of NSW by the NSW Rail

Safety (Adoption of National Law) Act 2012 .

TfNSW standards

T MU MD 00008 GU AEO Guide to Authorisation

T MU MD 00009 ST AEO Authorisation Requirements

T MU MD 00009 F1 AEO Engineering Services Scoping Matrix Template

TS 10504 AEO Guide to Engineering Management

TS 10503 AEO Guide to Engineering Competence Management

TSR T1 Technical Management (TfNSW Standard Requirements)

4. Terms and definitions

The following terms and definitions apply in this document:

acceptance the result of a competent person validating that a product (including a service)

satisfies a defined requirement. Acceptance means that a product is accepted for use and does

not detract from the accountability that the supplier has for the product or service

accountable the obligation of an individual or organisation to account for its activities, accept

responsibility for them, and to disclose the results in a transparent manner. The job role that is

ultimately responsible for the service or product. Accountability cannot be delegated

AEO Authorised Engineering Organisation

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http://www.austlii.edu.au/au/legis/nsw/consol_act/rsonla2012343/






area of concern a major weakness – in relation to the assessed maturity level; it is a condition

of the AEO status to have the issue addressed in a timely manner and in accordance with the

agreed action plan

ASA Asset Standards Authority

asset life cycle the stages involved in the management of the asset

assurance a positive declaration intended to give confidence

authorisation the conferring of authority, by means of an official instruction, and supported by

assessment and audit, to a supplier, to self perform assurance of the competence of its staff

and the outputs of engineering processes

Authorised Engineering Organisation a supplier of a defined engineering service or product

that has been assessed and granted AEO status by TfNSW.

BCA Building Code of Australia

compliance the state or fact of according with, or meeting, rules, requirements or standards

framework a basic structure underlying a system, concept, or text

governance the rules, processes, or laws by which a business is operated, regulated, and

controlled. The exercise of authority and control between accountable and responsible entities

such that planned outcomes are achieved

GSM Global System for Mobile communications

ISO International Organization for Standardization

ITSR Independent Transport Safety Regulator

review a method to provide assurance by a competent person that an engineering output

complies with relevant standards and specific requirements, is safe, and fit for purpose.

responsible (that is, assigned responsibility) a duty or obligation to satisfactorily perform or

complete a task (assigned by someone, or created by one's own promise or circumstances) that

one must fulfil. This may be the job role that is 'responsible' for producing the service or product

but not ultimately accountable. Responsibility can be delegated.

supplier a supplier of engineering services or products. Defined as an 'applicant' until such time

as it has been granted AEO status, after which it is referred to as an AEO

TfNSW Transport for New South Wales

verification the process carried out to ensure that the engineering output of each stage in the

system life cycle meets the stage input requirements

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5. Context and supporting documentation

A set of documents exists that support this authorisation governance framework:

T MU MD 00009 ST AEO Authorisation Requirements support this authorisation

governance framework, and will populate the authorisation system that is used to record

evidence of compliance

The T MU MD 00008 GU AEO Guide to Authorisation supports this authorisation

governance framework, and refers to the T MU MD 00009 ST AEO Authorisation

Requirements and TS 10504 AEO Guide to Engineering Management

TS 10504, which adopts a systems engineering approach, is supported by a suite of

guidance documents on elements of systems engineering

6. Industry benefits of authorisation

The authorisation framework is expected to achieve the following benefits to industry:

provide assurance of the technical integrity of the NSW transport network

remove dependence on limited review resources within transport agencies and TfNSW

improve project delivery efficiencies (reduced spent on authorising individuals)

reduce the adverse effects of technical review turnaround delays on project time and costs

facilitate effective and efficient decision making

reduce the overheads to the procurement process

reduce the supply chain risk (in particular delays to the overall review and acceptance)

reduce the risk of missing planned possessions due to design review acceptance delays

reduce the risk associated with preferential engineering or over engineering of solutions

assure consistent engineering service or product quality standards across the industry

adopt a commonly accepted objective view of competence and engineering assurance

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7. Key AEO requirements

A supplier of services is expected to meet the following requirements to become an AEO:

provides formally qualified and experienced personnel to provide the service

manages the competence of its staff

manages their own engineering assurance, supported by systems engineering,

configuration management, and technical data management

establishes and maintains a system of processes and procedures of how it conducts its

engineering activities including continuous process and product improvement

communicates and collaborates with the ASA to develop best practices

establishes and maintains a quality management system complying with ISO 9001: 2008

Quality management systems - Requirements

establishes and maintains a safety management system complying with

AS/NZS 4801: 2001 Occupational health and safety management systems - Specification

with guidance for use or OHSAS 18001, the Work Health and Safety Act 2011 (NSW), and

the Rail Safety (Adoption of National Law) Act 2012 (NSW)

demonstrates the 'safety in design' and 'sustainability in design' which are key components

of the activities for a design AEO

8. Legal and commercial implications

The AEO is expected to be responsible or accountable for the following activities:

responsible for assuring the competence of its own engineering staff

accountable for assuring the effectiveness and quality of its engineering services

accountable for delays in design delivery up to approved for construction

accountable for the safety and reliability of its engineering services

responsible for demonstrating compliance with engineering standards

accountable for all statutory and regulatory compliance of its engineering services

The former RailCorp competence and design assurance regime that previously managed the

legal and commercial implications associated with the liability for engineering competence and

design reviews is replaced by a regime that is self-managed by the AEO.

A need for corrective or improvement actions may be identified during AEO assessments and

audits. These corrective actions have to be managed with sensitivity, to balance a need to

manage risks presented to TfNSW and the NSW transport network, with the potential damage

to the AEO's reputation. Section 12.5.4 includes details of corrective actions.

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Arrangements will be established for early and efficient escalation and resolution of disputes,

including negotiation, mediation, arbitration, and finally litigation as the action of last resort.

9. Range of engineering disciplines

Engineering service areas that relate to asset life cycle stages are to be referenced from

T MU MD 00009 F1 AEO Engineering Services Scoping Matrix Template.

This matrix allows the AEO to accurately scope and agree the range of disciplines and services

to be provided over defined stages over the asset life cycle. It is accompanied with the user

guide and supporting guiding materials defining disciplines and services.

10. Engineering service areas

This governance framework covers the full range of engineering services over the full asset life

cycle from concept design to asset disposal as described in ISO 55001: 2014 Asset

Management Systems Requirements.

Authorisation can now be applied for and granted for engineering services in the following

areas:

feasibility and concept design

detailed design

fabrication and manufacturing

construction and installation

systems engineering and systems integration

inspecting, testing and commissioning

maintenance

decommissioning and disposal

general engineering consulting services (not asset life cycle stage specific)

10.1. Feasibility and concept The feasibility and concept stage (also referred to as the exploratory stage), requires specialist

consulting services. These services include transport modelling, operational and maintenance

concept development, business requirement development, system requirement development,

feasibility studies, optioneering, value for money studies, initial safety analysis, performance

modelling, and reliability, availability, and maintainability.

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10.2. Design The design and planning stages cover the activities that take place after the development of the

reference design during the concept stage. These services span the system definition review,

the preliminary design review, the critical design review, and the approved for construction

design. They also cover ongoing design support during the implementation stages, which are

construction, integration, test and commissioning.

10.2.1. Single-discipline design

Smaller single-discipline design consultancies often provide specialist design services in one of

the engineering disciplines. These may include designer, checker, verifier or independent

verifier roles.

10.2.2. Multi-discipline design

Multi-discipline design covers medium size, multi-discipline, design only companies that provide

design services in two or more of the engineering disciplines. These may include designer,

checker, verifier, or independent verifier roles and services.

10.2.3. Design assurance

Design assurance involves the technical checking and verification of designs by a subject

matter expert who has been assessed as competent in that particular discipline and who has

not produced the design.

The design checker should be assessed at a higher competence level than the designer, and

the verifier should be assessed at a higher competence level than the checker.

Design AEOs are expected to provide both design production and design assurance services.

However there may be specific contractual arrangements with TfNSW, whereby one AEO will

provide design production services, while another AEO provides design assurance service

(example, independent verifier)

Design production roles are described in Section 10.2.1 and Section 10.2.2.

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10.3. Fabrication and manufacturing

AEOs providing off-site fabrication, manufacturing, and assembly of configuration items at the

component, module, assembly, and subsystem or system level at original equipment

manufacturer premises prior to transport to site, include, but are not limited to:

rolling stock vehicle manufacturers; these vehicles include, locomotives, wagons, electrical

multiple units, diesel multiple units, or light rail vehicles

track component manufacturers; these are typically rail and rail fixing producers and

concrete sleeper manufacturers

point and crossing manufacturers; these could also be track component manufacturers

signalling equipment manufacturers; this equipment includes interlocking, control systems,

signals, point machines, train detection systems, and similar equipment

communications equipment manufacturers; this equipment includes optical fibre,

communications switching equipment, GSM, other radio systems, telephone systems, and

similar equipment

traction power equipment manufacturers; this equipment includes transformers, rectifiers,

protection and other switchgear, feeder equipment, and similar equipment

civil and structural component manufacturers; these components include overhead wiring

structures, precast concrete products, lattice and preformed structures, bridge

components, pipes, chambers, and similar components

In some cases, the fabrication and manufacturing services may be performed by the same

company providing on-site construction services.

Suppliers of these services will need to demonstrate an established capability to competently

assure these services.

10.4. Construction and installation

The construction and installation stages include on-site construction, fabrication, assembly,

installation and integration services. This may involve setting up a temporary construction site.

These stages are generally provided by large, multi-discipline construction companies. The

services of smaller, specialist construction companies that sub-contract to large engineering

construction companies are also included, but the focus remains firmly on construction only

services. Suppliers of these services will need to demonstrate an established capability to

competently assure these services.

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10.5. Systems engineering and systems integration

AEOs offering systems engineering or integration services for all of, or most of, the asset life

cycle from concept through to commissioning, need to demonstrate assurance of the following:

systems engineering and systems integration management capability across multiple asset

life cycles and multiple disciplines

a well developed knowledge of all of the relevant disciplines, asset groups and associated

sub-systems

a well developed knowledge of the way these disciplines, asset groups and sub-systems

function in an integrated fashion to achieve the emergent properties (functional and

performance) of the integrated railway system

10.6. Inspecting, testing and commissioning

Single or multi-discipline AEOs that provide factory and site inspection, equipment and sub

system or system testing and commissioning services, will need to demonstrate an established

capability to competently assure these services. Some manufacturing and construction AEOs

are also capable of providing these services.

10.7. Maintenance

AEOs offering dedicated asset management and maintenance services will need to

demonstrate an established capability to competently assure these services. These include

operating agencies but also include private sector maintenance engineering service contractors.

10.8. Decommissioning and disposal

Decommissioning and disposal will generally be performed by the same AEOs that perform

construction and installation services, but could include companies that specialise only in

decommissioning, demolition and disposal. They will need to demonstrate an established

capability to competently assure these engineering services. Decommissioning and disposal is

also referred to as retirement.

10.9. Engineering, procurement and construction management

Multi-service, multi-discipline engineering services AEOs are often able to provide most or all of

the whole-of-asset life cycle services covering both the full project delivery life cycle and

ongoing asset management through to decommissioning.

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10.10. Engineering consultancy services

Specialist engineering consultancy AEOs provide specialist services at specific asset life cycle

stages. These are often in the concept stage, for example, modelling, requirements analysis,

and BCA compliance. They may also provide whole-of-life cycle services, such as establishing

and managing systems for configuration management, asset management, safety management,

and quality management.

11. AEO authorisation requirements

Engineering organisations are expected to demonstrate that they have engineering specific and

engineering related management arrangements in place in order to achieve authorisation.

The associated document T MU MD 00009 ST AEO Authorisation Requirements details

engineering management requirements for all AEOs.

Note that not all the engineering management requirements are applicable to AEOs

that provide certain engineering services. AEOs should read the guidance associated

with each mandatory requirement to determine if it applies to the particular

engineering services they wish to provide.

12. AEO authorisation process

Authorisation involves an assessment by the ASA to determine if a supplier organisation can

demonstrate the capability and competency necessary to undertake engineering work on NSW

transport infrastructure and assets, and to provide assurance that it performs those services at

the necessary level of capability.

Authorisation is an assessment and ongoing surveillance process, which assesses a supplier's

engineering assurance arrangements with the objective of granting it AEO status. Initial granting

of AEO status is followed by periodic surveillance activities (including audits) of the engineering

outputs of an authorised organisation. The surveillance is based on any residual risk identified

in the original assessment (level of maturity rating), service delivery risks and issues of a

systemic nature identified through other sources.

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12.1. Submit an AEO application

Submitting an application includes registering the organisation name, type, business address,

ABN, primary contact details, details of sub-contractors and suppliers. The application also

includes the details of the scope of authority requested, that is, the services to be provided as

an AEO.

Applications can be for the following:

new applications, including the service areas and disciplines to be provided, or specific

project to be carried out

renewal applications, made just prior to the natural expiry of an existing AEO authority

upgrade applications, to add or remove service areas or disciplines to an existing AEO

status or to upgrade from 'project limited' to 'full' AEO status

The documents applicable to the AEO application include the following:

T MU MD 00008 GU AEO Guide to Authorisation

AEO application form

T MU MD 00009 F1 AEO Engineering Services Scoping Matrix Template

12.2. Assess an AEO application

The documents applicable to the assessment of an AEO application include the AEO

assessment checklist.

The assessment team will review the applicant's management framework (plans, procedures,

tools, records, and other supporting evidence) in accordance with the assessment checklist and

scope of engineering services as defined in the applicant's engineering scoping matrix as part of

an AEO assessment. Gaps will be communicated to the applicant, necessary actions and a

timescale to implement the necessary improvements will be agreed.

12.3. Address AEO applicant gaps

Agreed actions arising from assessments will form a condition of AEO authorisation and shall be

addressed by the applicant in a timely manner. Actions completion will be verified with

subsequent audit or audits as part of the ASA AEO surveillance program.

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12.4. Issue of authority to applicant AEOs

Upon successful completion of the audit, the assessor recommends the issue of a letter of

authorisation (normally signed by Director ASA) covering the engineering service areas and

disciplines for which the applicant is deemed competent to deliver. This confirms the relevance

and adequacy of the applicant's management plans and process documentation to comply with

T MU MD 00009 ST AEO Authorisation Requirements.

12.5. Monitoring and auditing of AEOs

After an engineering service provider is granted AEO status, a surveillance process is activated

in order to assure TfNSW that the AEO consistently delivers its services in conformance with its

authorisation. This surveillance commences with any identified action management required by

an AEO arising from the initial assessment findings, including monitoring and progressing any

caveats placed upon the granted authorisation.

Ongoing surveillance will cover periodic assessment of evidence generated by AEO technical

reviews, and scheduled or incident driven surveillance of AEO engineering activities against

declared plans.

12.5.1. Surveillance audits

Systems auditors or assessors will periodically perform surveillance audits of the artefacts of an

AEO's engineering assurance process over the service areas for which it has authorisation. This

ensures that both process and product are compliant with AEO authorisation requirements.

12.5.2. Regular and random audits

Audits may cover processes, products, or facilities, depending on the engineering service.

Audits will be carried out against predetermined criteria defined in standard audit checklists that

are developed from the AEO specific service areas.

Audits will also determine how an AEO assures its supply chain. An AEO supply chain includes

sub-contractors or suppliers, who may or may not be AEOs themselves.

The ASA will maintain records of all audits, including audits findings.

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12.5.3. Surveillance frequency and depth

The frequency and depth of surveillance audits will be risk based. An AEO that establishes and

continues to maintain a reputation for consistent and compliant delivery in the service areas for

which it is granted AEO status will be subject to a lower frequency and depth of surveillance.

In the event of an 'area of concern' being raised during a scheduled audit or as a result of an

incident outside the scheduled audit program, the frequency and depth of surveillance will

increase in proportion to the level of the risk.

12.5.4. Corrective actions

The purpose of the corrective action process is to identify assessment or audit findings, consult

and agree on action plans with the AEO, and set agreed timeframes.

It is ultimately the responsibility of the AEO with regard to what action is taken and whether it

can be completed in the proposed and agreed timeframe. In this regard the AEO must respond

to each identified 'opportunity for improvement' and 'area of concern' with details of proposed

actions and reasonable timeframes for completion.

The AEO may propose alternative solutions to any corrective actions proposed by the assessor

or systems auditor for consideration. These may be adopted if mutual agreement is reached on

the benefit gained.

12.5.5. Unacceptable performance of an AEO

In the event of consistently poor performance by an AEO in a service area for which it has been

authorised, the ASA may consider a range of actions, depending on the associated risk to

safety, environment or business. Actions can include the following:

recommending future improvements, where the general level of compliance is adequate

requiring corrective actions, with timescales for the implementation of the corrective action

withdrawing selected service areas or disciplines from the AEO status for a specific project

or engagement with TfNSW

withdrawing selected service areas or disciplines from the AEO status for all projects or

engagements with TfNSW

withdrawing the entire AEO status completely and define supplier corrective actions

needed to reapply for AEO status

withdrawing the entire AEO status completely on a permanent basis

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12.5.6. Escalation of grievances

The AEO will be provided with a means to escalate a justifiable grievance related to an adverse

audit or assessment outcome, to an external review board.

13. AEO validity period

The validity of the AEO authorisation status and renewal will be performance based, as verified

by means of the ongoing surveillance audit regime.

An AEO applying for future TfNSW projects can be granted AEO status with a maximum period

of three years before a surveillance audit is conducted, although this may be adjusted

depending upon the risk profile of any of the corrective actions or contracted scopes of work.

A project limited authorisation may also be granted to support the procurement program or in

response to different service delivery mechanisms, for example an alliance project or joint

venture. Any such authorisation is not transferrable and will be constrained by the services

scope and duration and will be subject to surveillance by the ASA.

14. Organisational process context

This AEO authorisation framework has a number of interfaces with other management

processes and stakeholders.

14.1. Procurement

The AEO authorisation process is a precursor to the TfNSW procurement process and

associated systems. A supplier must have AEO status prior to being considered eligible to

respond to invitations to tender relevant to the engineering services for which it has been

granted authority.

If a serious 'area of concern' is raised that relates to the criteria for AEO status during the

course of a contract awarded to an AEO by TfNSW, this will be reported by TfNSW to the ASA

for corrective action. Corrective actions are discussed in Section 12.5.4.

14.2. Engineering assurance

The AEO authorisation process is closely linked to the engineering assurance arrangements

and processes in TfNSW and in the AEO. The AEO is expected to demonstrate that it has an

established engineering assurance regime and is effectively applying it across all engineering

service areas and disciplines for which the AEO is seeking or has obtained AEO status.

For instance, the engineering assurance group within TfNSW Transport Projects Division has a

process that will rely on the AEO's internal engineering assurance, and will require evidence

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that all activities have been carried out under the AEO's conditions of authority. Refer to

TSR T1 Technical Management (TfNSW Standard Requirements).

14.3. Quality assurance

Two significant elements of AEO authorisation requirements, engineering assurance, and

competence management, are also key requirements of ISO 9001 and are required to be part of

both the TfNSW and the AEO quality management systems.

In addition to the other requirements for AEO status, these elements will be subject to audit and

assessment activities appropriate to the engineering service offered. Increased emphasis will be

placed on the AEO to demonstrate that it has established and maintains an effective quality

management system that meets all of the requirements of ISO 9001 relevant to the service or

products for which the AEO is authorised.

14.4. Safety assurance

Safety and its assurance remains the most significant element of the organisation management

process change associated with this AEO authorisation governance framework.

The safety risk, associated with 'safety in design' and the changes in responsibility for

competence assurance and engineering assurance, will be managed as part of the AEO safety

management system.

14.5. Competence management

A fundamental relationship exists between the concept of an AEO and the need to manage the

competency of its staff to ensure that staff members are competent to undertake the relevant

engineering tasks. The AEO will need to establish and maintain a competence framework and

plan that is sufficiently robust to support the engineering services for which it is authorised.

Despite this, the AEO are still obliged to comply with regulatory and legislative requirements

necessary to support any of the contracting entities regulatory accreditations.

Competence management requirements are defined in T MU MD 00009 ST AEO Authorisation

Requirements and guidance is provided in the TS 10503 AEO Guide to Engineering

Competence Management.

14.6. Legislation

The Work Health and Safety Act 2011 (NSW) and associated regulations affect the manner in

which TfNSW manages governance of safety responsibilities, including authorisation of AEOs.

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14.7. Regulatory bodies

In order for TfNSW and the ASA to discharge its safety responsibilities under the conditions of

accreditation with the Office of the National Rail Safety Regulator, all changes in governance,

including changes to engineering authority that affect the safety of the transport network need to

support the National Rail Safety Regulator accreditation requirements.

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