Northern Australia Defence Summit 2013

Defence Infrastructure Development in the NT

Brigadier Darren Naumann Acting Head Infrastructure

Rachel Rees-Scott Manager Estate and Facilities Services - NT

Defence Support and Reform Group

• The role of Defence Support & Reform Group

(DSRG), is to support the Australian Defence Force

(ADF) and other Defence Groups in meeting their

capability and corporate objectives.

• DSRG is a consolidated service delivery organisation

for Defence.

Defence Support and Reform Group

The Varied Businesses of DSRG

Infrastructure Division

• Construction

• Property leasing

• Land management

• Property sales

• Environmental management

Defence Reform & Corporate Services

• Financial Management

• Non-equipment procurement

• Contracting

• Strategic planning

• Performance Management

• Personnel admin support

Defence Support Operations

• Catering

• Accommodation

• Cleaning

• Grounds maintenance

• Security

• Facility repairs and maintenance

• Procurement and contracting services

• OHS services

• Asset management

• Land management

Ministerial and Executive Coordination

and Communication

• Corporate Communication

• Ministerial and Parliamentary Support

• FOI

• Records and Information Management

Infrastructure Division

Managing, developing and sustaining the Defence estate.

• Strategic planning for the estate

• Managing community issues related to the Defence estate

• Developing and project managing facilities-related Public Private Partnership projects

• Managing Defence’s property leases

• Managing non-Defence use of Defence facilities

• Developing & managing the facilities repairs and maintenance program

• Environmental, heritage and climate change issues

• Disposal of surplus Defence properties

• Management of Defence’s Capital Works Program

The Major Capital Facilities Program

• Development Process

– Strategic and Detailed Business Cases

– Approvals

• Department (< $8m)

• Government ($8m +)

• Major Works ($15m +)

– Developed and delivered centrally through Capital Facilities

and Infrastructure (CFI) Branch.

– Subject to full PWC referral and Parliamentary approval

before commencement.

• Medium Works (< $15m)

– Developed and delivered primarily through CFI Branch,

although some are delivered regionally through DSRG

regional offices.

– Subject to PWC notification before commencement.

The Major Capital Facilities Program

Recent works in NT

• Mount Bundey Training Area Medical Facility ($4.5 m)

• Robertson Barracks Program of Works ($65.4m)

• Robertson Barracks HV Reticulation Upgrade ($43.4m)

• RAAF Base Tindal Redevelopment Stage 5 ($58.7m)

• RAAF Tindal AEW&C Facilities ($64.2m)

• Shoal Bay Receiving Station Upgrade ($12.8m)

NT MCF Project Examples

In Construction:

• Single LEAP Phase 2 (Larrakeyah and

Robertson Barracks)

• Defence Logistics Transformation Project

• LAND 17 Phase 1A Infrastructure Project

The Major Capital Facilities Program

In planning but not yet approved:

• RAAF Base Darwin Flood

Mitigation Project

• Larrakeyah Barracks

Redevelopment Project

• Naval Facilities in the North

Improving Project Outcomes

• Improved certainty of outcomes

– Time

– Cost

– Quality (Fitness for purpose)

• Improved efficiency in design and build

• Improved Whole of Life decision making

Defence Support and Reform Group Regions

Defence Support Operations

• Three key roles DSO performs for Defence are:

– Whole-of-base support functions, through management support

and a governance framework on behalf of Defence Groups and

Services to assist effective command, control and administration

of base-wide issues and base support functions.

– Contribution to stewardship of the Defence estate, through

estate upkeep, estate appraisal and estate program services

and projects, and facilitating the management of estate risk and

compliance.

– Delivering DSO’s share of products and services to Defence as

a shared services provider in support of Defence’s living,

working and training environment, either through external or

internal delivery.

• Current contracted Garrison Support Services include:

– Management of the Services

– Cleaning

– Grounds maintenance

– Pest and vermin

– Training Area and Range Management

– Laundry and dry cleaning

– Sports and recreation

– Accommodation Management

– Hospitality & Catering

– Canteen/Cafeteria

– Access control

– Waste management

– Airfield support

– Fire Fighting and rescue

– Petrol, oils and lubricants

– Stores management

– Transport

– Workshop

• Current contracted Comprehensive Maintenance Services include:

– Management of the Services

– Call Centre

– Fixed Plant & Equipment Maintenance

– Engineering Operations

– General Estate Works

– Special Training Facilities

21 contracts over original 12 DSO regions

Defence Support Operations

Current Base Services

DSO Infrastructure Projects FY 13/14

Approved Projects / Works to be delivered through CMS in FY 13/14

• Planned Maintenance $11.4M

• Reactive Maintenance $9.0M

• Larrakeyah Wharf Remediation $1.9M

• RAAF Darwin HV Power maintenance $1.2M

• Coonawarra Basin Dredging $2.1M

• RAAF Darwin Air Traffic Control Works $700K

• Coonawarra ship sliprail refurbishment $300K

• Unsealed road maintenance at NT training areas $900K

• Identifies and articulates key business functions and processes of

DSO to deliver its outcomes to support Defence capability

• Documents key roles, responsibilities, functions, and processes

required to define DSO activities

• Delivers on DSO business outcomes through:

– Increased consistency and reduced duplication

– Improved planning processes

– Improved capacity to manage risk

– Increased internal product and service management capacity

– Key governance processes

– Changed contract management arrangements

What is the DSO Operating Model?

DSO Operating Model

Base Services Contract - Strategy

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By implementing contract options that leverage volume, standardise requirements, reduce excess capacity and decrease demand management, there is opportunity to restructure and redesign service delivery.

This will optimise value for money whilst sustaining ADF capability and meeting increased legislative compliance activities.

Maximise the opportunity provided by BSR to optimise value for money for Defence by:

~ Allowing modernisation of the providers’ service delivery models,

~ Better leveraging volume (national tender) and standardisation (consistency of activities across Australia), and

~ Outcome focused statements of work.

~ Enhanced consistency through national product management

~ Improve accountability for both Defence and Contractors – a strong relationship of mutual respect and trust between those involved.

~ Improve Planning

~ Enhance the role of Contractors and leverage industry expertise

~ Separate estate planning/ programming from program execution

~ Manage the whole of estate

Current Contract Challenges

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Funding available for Base Services contracts has been reduced as a result of SRP targets ($1.1bn over 10 years).

Increased compliance and legislative requirements as well as increased scope of services.

Different arrangements, processes, procedures and experience depending on where you are.

Ability to access innovation or industry expertise.

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CHALLENGES

Inconsistent product support and service delivery arrangements.

Inefficient models exist and Defence is paying to have capacity on hand.

The quality of the supporting data and estate information.

Base Services Timeframe

2013

The Journey

2014

Request for Tender – Closed on 28 February 2013.

Evaluations – Evaluation team established

Transition Preparation – Transition preparations underway including alignment with the implementation of DSO Operating Model and transition to the new corporate system GEMS.

Negotiations – Subject to successful negotiations contracts will be

signed.

Transition In – Progressive transition of the eight service packages.

Transition Out – Progressive transition out of the existing 21 contracts.

Mapping from Current to New

Bundling of

Services

Estate Maintenance & Operations Services

(EMOS) Bundle

Management, Integration & Co-ordination

(MIC) Including Estate Appraisal

Base Services Call Centre

Cleaning & Housekeeping

Commercial Operations (Central West only)

Estate Upkeep

Land Management

Laundry & Dry Cleaning

Reprographics

Pest & Vermin

Sports & Recreation

Training Area and Range Management

Transport and Airfield Support Operations

GSS

Mgt of Services

Accommodation Mgt

Airfield Support

Cleaning

Commercial Ops

Grounds Maint

Laundry & Dry

Pest & Vermin

Reprographics

Sport & Recreation

Range & Training

Transport

CMS

Mgt of Services

Property Services

Centre

Infrastructure Appraisal

Engineering Operations

Routine & Reactive Works

Fixed Plant & Equip

Special Forces

Training Facilities

Estate Maintenance & Operations Bundle

Mapping from Current to New

Bundling of

Services

GSS

Access Control

Hospitality and

Catering

Aircraft Refuelling

Fire fighting Services

Stores Mgt Services

POL

Waste

CMS

Regional Program

Dev & Mgt

Risk Managed

Works

National Program

Services

Retail Stores & POL

Aircraft Refuelling and

Rescue & Fire Fighting Bundle

Access Control

Hospitality and Catering

Waste

Project Delivery Services

Miscellaneous Service Packages

Defence Industry Brief

The varied Businesses of DSRG cont…

Any Questions?