Australian Goverament

Department of DefenceEstate and Infrasttucture Qmup

Procedure

ESTATE & INFRASTRUCTURE GROUP PROCEDURE

SPONSORED WORKS

BACKGROUND

L Th^ secretaryand chiefof the Defence Force Advisory Committee (SCAC) decision(Outcomes for Agendum Item 165/2012 dated 22 October 2012) directed that^all discretionarymaintenance funding be directed to priorities based on a risk managed approach.

. ^ The Defence Estate represents an important Fundamental Input to Capability. It is asignificant national asset which includes areas of land, air and sea with environmental andcultural values, including Indigenous heritage. Most properties contain Resident Unit (RU)facilities and infrastructure, Common Area facilities and infrastructure (utilised by more thanone RU), and training areas.

3. All Groups and Services, as Capability Managers and users of the Defence Estate arestakeholders in the Sponsored Works framework and have an obligation to ensure theintegrity of the Defence Estate is maintained.

4" This Procedure details the processes to ensure that Sponsored Works are funded.managed, delivered and supported in a manner that complies with applicable statutes andlegislation, procurement rulesi standards and codes and the Defence Estate QualityManagement System (DEQMS)1 This is essential to prevent unauthorised and non-compliantworks becoming a liability to Defence.

5. Generally sponsor funding should not be used for Estate Upkeep. Groups andServices should use the existing maintenance framework.

6. The reasons Sponsored Works may be required include:

Services or Groups require estate changes in response to changing prioritiesDefence projects introducing new or changing capability in accordance with Groupand Service initiatives not included in the Defence Integrated Investment PlanDefence units requiring minor works within Unit areas that will not be deliveredthrough the Estate Works Program (EWP) due to insufficient priority as assessed on

a.

b.

c.

a national basis

d. Defence units undertaking training activities.

7".., ?1?. SPOnsorcd works processes are intended to provide senior Defence personnelwith the ability to appropriately manage/oversee the prioritisation of available funds againstcritical delivery areas such as Work Health & Safety (WHS) and delivery of Capability.8. This Procedure supersedes all previous devolved works business mles and localised/self managed works agreements and procedures.

PURPOSE

http ://intranet. defence, eov.au/estatemanaeement

SL The PurPoseofthi^procedure is to direct all Groups and Services in the processesfor proposing, managing and delivering Sponsored Works on the Defence Estate.

DEFINITIONS

10. Defence Estate. The Defence Estate is the properties within Australia and itsTemtories that are owned or leased by the Commonwealth and managed by Defence."TheDefence_Estate also includes overseas facilities where Defence has a maintenance obligationsuch as RMAF Base Butterworth and Cocos Island.

1 L Defence Estate Quality Management System. DEQMS is the Estate &Infrastructure Group (E&IG) documented quality system formanagement of the Estate.

i2\ Estate works program-, The Estate Works Program (EWP) is a program of works

that are predonunately developed from the Estate Appraisal (EA) process to maintainthe"c^rrcnlestate',The Ewpls managed by the Directorate of Estate Works Program Office(DEWPO) and is generally comprised of lower risk projects than the Major Capital FacilitiesPrograin(MCFP)^ The program includes, but is not limited to, estate maintenance, minornew work proposals, sponsored works and EA identified works.

13. ^ Input into the Program from the EA, minor capability enhancements and actions fromreviews and audits are prioritised against the allocated EWP budget. This prioritisation"process is informed by regular consultation with Bases, Regions and National representativesfrom Groups and Services.

•^ . SPOnsored Works. Sponsored Works can be delivered under three categories, eachwith their own management arrangements and processes as detailed below:

a. SPOnsor Funded Works. Works with a value greater than $5,000 (GST Inclusive)that are funded by the Sponsor Group or Service and delivered by E&IG under thesuite of Base Services Contracts. Detail for this category of work is provided inAnnex A.

b. Sponsor Managed Works. Works that are funded and managed by the SponsorGroup or Service and delivered either by using a third party contractor engaged fromthe Defence Infrastructure Panel or a Defence Unit capable of managing anddelivering infrastructure projects. Detail for this category of work is provided inAnnex B.

c. Self Help Works. Works of low risk that are funded and delivered by the Group orService. These works must not create an additional maintenance liability. Theseworks are not to be used to replace existing Estate Upkeep and EWP processes."Detail for this category of work is provided in Annex C.

Tl-5:i-___^dmmw, orks;Ll^ediunl works are projects valued between $2m and $15m (GST?clu,s.ive;Lprojects classmed as.Medium_works rcquire Notification to the Parliamentary'Standmg_Committee on Public Works (PWC). Guidance on the PWC process is availablethrough DEQMS.

x ?:'^. ^ro?c? appr?y^LJ^ects arc required to be approved by a Defence delegate or theMinister for Defence (MINDEF) depending on the value3^. Guidance on the approval"thresholds is available on DEQMS.

LThe MCT^is the Defence twenty year Pla" for the delivery of medium and major capital works projects.:to^ the MCFP is via the Estate Investment Requirement process on DEQMS. At May 2016-thedefimti'onofMai^Works is projects valued above $15m (GST Inclusive)."' At May 201 6 the Minister for Defence is the approval delegate for all projects valued at $8m and above.

EXCLUSIONS

17.

a.

b.

c.

d.

e.

f.

g.

This Procedure excludes:

Discretionary Estate Works. (RefFAS ES Directive No. 272 of 24 November 2015)Emergency Event Response Works. (RefFASES/OUT/2015/273)^[^w^rkplaceAdJustments (MWA) with a value up to and including $5,000£SLI^lusive): MWA arc aPPlicable when requiring minor modificat^ns to adaptthe working environment to better suit their business needs and address mino7capability deficiencies. MWA are arranged under the Estate Maintenance'andOperation Service (EMOS)

The construction of expedient temporary facilities constructed by Services toreplicate operational infrastructure^in support of training such as shelters, defensivepositions, and fortifications or similar structures. All such works must however be'£nn!d. _Td^xecuted by u^its inconsultation with relevant authorities includingDirectorate Operations and Training Area Management (DOTAM)7environmental

1 etc. Units are responsible for whole of life management including WHS'requirements

Works undertaken on operations or on overseas Defence programsContractual, leasing or Hcensing conditions regarding the management and use ofGovemment Furnished Facilities (OFF). The Civil Use of the DtefenceEstate"Manual(CUDEM) provides guidelines on Sponsored Works under these conditions.sponsored works may be utilised as a delivery mechanism once the'conditions of theCUDEM have been completed

Major Works4 requiring Referral to the PWC. These projects must be progressedthrough the MCFP using the Estate Investment Requirement (EIR) procesTas"described on DEQMS.

EXEMPTIONS

IS. ^ The following organisations are provided an exemption from following thisProcedure:

b.Special Forces Training Facilities (RefDEPSEC DSR/OUT/2013/118).?ief^f^my fundm^allocated to SOCOMD for initiatives under the Support toWounded, Injured and 111 Program (SWIIP) (Ref AM 1559707)Non-SFTF SOCOMD training initiatives and capability related initiatives thatsupport the introduction into services of new equipment directly funded from withinSOCOMD allocated resources (Ref AMI 559707)^

Air Force Cadets for_the delivery of projects of a low safety, compliance and technicalrisk and less than $250,000. Any projects above this value or ofahigherriskTeveT'are to be delivered through the EWP as Sponsor Funded works

Communications Information Systems (CIS) works managedDirective 08,13)

l9'^^ wori" for Navy and Army Cadets are bid for and managed through the EWP or viaWorks described in Annexes B and C.

LAtMa.y-2016worksestimated to cost$J5m (including GST) or more are known as -major works'. All Defence

^oZfaoZSLbeereferred to the pwc and approvaf8ranted ^ Pariiament'before co"ntractecTnbe"a^de7

d.

e.

^o ̂_Groyps and services ,areable to aPP}y for exemptions on a case by case basis via anStar minute to Assistant Secretary Estate Support.

ROLES AND RESPONSIBILITIES

2L^:-.EState & Infrastructure Group. Estate & Infrastructure Group (E&IG) as thecustodianofth_e. Estate has an obligation to ensure that works are techn^aliy'appropriate and

: term needs and uses are not compromised by short term or transitory ne"eds"E&iG staff

[ assist sponsors in the preparation of the required documentation to initiate the;process.

?• . DEWPaDEWPO is the product & servi^ Manager for the National:i^T^psiand.the.project Delivery services <PDS) Pro<viders. DEWP'oSsrcspSle for

of the EWP.

2L. ̂ Groups and services-Jhe Groups and Services (Navy, Army, Air Force) initiatir1 procedure as a Sponsor are required to secure funding'and follow the"

applicable Sponsored Works process including appropriate Departmental or Governmentapproval.

FINANCIAL MANAGEMENT

24'..___-Groups and services undertaking Sponsored Works are required to provide fundirassurance for all aspects of the project including development, construction and sustaimnent

MANAGING IMPACTS ON THE ESTATE

2.5"^- .Groupf or services seeking to initiate a sponsored work are to engage with E&IGstaff to ensure that the proposed works are not already included in another°pro~eramforexample the EWP or the MCFP.

26^. ̂ Proposed ̂works must not adversely affect capability, operation of estate assets.existing or planned Estate Works, MCFP projects or WHS obligations. '' ~~~" """""'27. ^ ^ Works initiated through this Procedure must comply with all relevant legislaticstandards-andpolicy requirements- Ifthe works trigger any new or changed~com?mnST'requirements or the need to update estate drawings or records, this workmust bemidertaken

; associated costs included in the total cost of the works.

PROCESS

28. Processes specific to the categories of work are outlined in Annexes A to C.29:, „ units deliveringestate works for training purposes are to be delivered in accordance

detailed in Annexes B and C.

REPORTING

30. Reporting requirements are outlined in Annexes A to C.

POINT OF CONTACT

31 • , . comment! and_enquiries on the content of this Procedure and the annexes should be1 to DEWPO in Estate Support Branch, email E&IG-ESD. DEWPO^efence"eo"v"au.'

REVIEW

32. This Procedure will be reviewed 12 months after publication and biennially afterthat.

RELATED POLICY

33. Refer to DEQMS for a wide range of related Defence policies and plans such as theDefence Estate Strategy, the Defence White Paper and guidance on Departmental,Government and Parliamentary Approvals.

RELATED PUBLICATIONS

34. Service Level Partnering Agreements between E&IG and individual Groups andServices.

AUTHORITY

35. The Authority granted by this Procedure is valid until withdrawn by DEPSEC E&I.Groups and Services are expected to issue complementary directives in support of thisProcedure.

Steve Grzeskowiak

Deputy Secretary Estate and Infrastructure

\ff June 2016

Annexes:

A. Sponsor Funded Works InstructionB. Sponsor Managed Works InstructionC. Self Help Works Instruction