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ASDEFCON (SUPPORT)

STATEMENT OF WORK (SOW) TAILORING GUIDE

Guidance on draft clauses in the ASDEFCON (SUPPORT) SOW

ASDEFCON (Support) V3.1 SOW Tailoring Guide

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TABLE OF CONTENTS

Purpose and Scope......................................................................................................................... vi Referenced Documents................................................................................................................... vi Acronyms and Abbreviations ........................................................................................................ viii Application of ASDEFCON (Support)...............................................................................................x Advice to Tenderers .........................................................................................................................x About the SOW ............................................................................................................................... xi Detailed Service Descriptions ....................................................................................................... xiii Data Item Descriptions .................................................................................................................. xiv Performance Measurement, Assessment and Management........................................................ xvi ASDEFCON Linkages Module ..................................................................................................... xvii Offer Definition Activities ..............................................................................................................xviii Operative Date .............................................................................................................................xviii Tailoring the Draft Statement of Work........................................................................................... xix Recommended Approach to Tailoring............................................................................................ xx Template and SOW Tailoring Guide User Tips............................................................................ xxv Word Processing Tips ................................................................................................................. xxvi

1. SCOPE.............................................................................................................................................1

1.1 Purpose................................................................................................................................1 1.2 Background..........................................................................................................................1

2. GENERAL REQUIREMENTS..........................................................................................................3

2.1 Scope of Work......................................................................................................................3 2.2 Rate of Effort ........................................................................................................................4 2.3 Data Management System ..................................................................................................6 2.4 Deliverable Data Items.......................................................................................................10 2.5 Draft Data Items Included as Contract Annexes................................................................14 2.6 Phase In .............................................................................................................................15 2.7 Ramp Up............................................................................................................................21 2.8 Phase Out ..........................................................................................................................25

3. SUPPORT SERVICES MANAGEMENT .......................................................................................28

3.1 Support Services Program Objectives...............................................................................29 3.2 Support Services Planning.................................................................................................29 3.3 Quoting for Survey and Quote Services ............................................................................36 3.4 Support Services Communication Strategy .......................................................................39 3.5 Subcontractor Management...............................................................................................48 3.6 Coordination and Cooperation...........................................................................................49 3.7 Risk Management ..............................................................................................................50 3.8 Issue Management ............................................................................................................51 3.9 Maintenance of Contractual Documents............................................................................52 3.10 Independent Verification and Validation ............................................................................53 3.11 Contractor Managed Commonwealth Assets ....................................................................54 3.12 Australian Industry Capability Management ......................................................................58 3.13 Intellectual Property Management .....................................................................................59 3.14 Defence Security Compliance............................................................................................62 3.15 Maintenance of Support Agreements ................................................................................64

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3.16 Commonwealth Personnel at Contractor or Approved Subcontractor Premises ..............65 3.17 Training in Defence Information Systems..........................................................................67 3.18 Access to Foreign Military Sales........................................................................................68

4. OPERATING SUPPORT................................................................................................................69

4.1 Operating Support Management Planning ........................................................................70 4.2 Operating Support Reporting .............................................................................................71 4.3 Operating Support Reviews ...............................................................................................71 4.4 Operating Support Services...............................................................................................72

5. ENGINEERING SUPPORT............................................................................................................77

5.1 Engineering Support Management Planning .....................................................................78 5.2 Engineering Support Reporting..........................................................................................80 5.3 Engineering Support Reviews............................................................................................81 5.4 Technical Regulation of Engineering Support ...................................................................82 5.5 Engineering Services .........................................................................................................85

6. MAINTENANCE SUPPORT ..........................................................................................................88

6.1 Maintenance Support Management Planning....................................................................89 6.2 Maintenance Support Reporting ........................................................................................90 6.3 Maintenance Support Reviews ..........................................................................................91 6.4 Technical Regulation of Maintenance Support ..................................................................93 6.5 Maintenance Services........................................................................................................96

7. SUPPLY SUPPORT.......................................................................................................................99

7.1 Supply Support Management Planning .......................................................................... 100 7.2 Supply Support Reporting............................................................................................... 101 7.3 Supply Support Reviews................................................................................................. 101 7.4 Supply Services .............................................................................................................. 102

8. TRAINING SUPPORT................................................................................................................. 104

8.1 Training Support Management Planning ........................................................................ 105 8.2 Training Support Reporting............................................................................................. 105 8.3 Training Support Reviews............................................................................................... 106 8.4 Training Services ............................................................................................................ 106

9. SUPPORT RESOURCES ........................................................................................................... 108

9.1 Personnel ........................................................................................................................ 109 9.2 Technical Data ................................................................................................................ 110 9.3 Support and Test Equipment .......................................................................................... 117 9.4 Training Equipment......................................................................................................... 118 9.5 Packaging ....................................................................................................................... 119 9.6 Facilities .......................................................................................................................... 120 9.7 Computer Support........................................................................................................... 122

10. VERIFICATION AND VALIDATION ........................................................................................... 124

10.1 Verification and Validation Objectives ............................................................................ 126 10.2 Verification and Validation Planning ............................................................................... 126 10.3 Support Services Verification and Validation Activities .................................................. 127 10.4 Performance Implementation Period .............................................................................. 128

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11. QUALITY MANAGEMENT ......................................................................................................... 129

11.1 Contractor Quality Responsibilities................................................................................. 129 11.2 Quality Management Planning........................................................................................ 129 11.3 Quality Systems, Process and Product Non-Conformances .......................................... 130 11.4 Non-Conforming Services............................................................................................... 130

12. HEALTH, SAFETY AND ENVIRONMENT................................................................................. 132

12.1 Problematic Substances and Problematic Sources........................................................ 134 12.2 Environmental Management ........................................................................................... 139 12.3 Work Health and Safety .................................................................................................. 143 12.4 Incident Reporting and Remediation .............................................................................. 149

13. CONTINUOUS IMPROVEMENT AND EFFICIENCIES ............................................................. 151

13.1 Acknowledgement........................................................................................................... 151 13.2 Management of the Continuous Improvement and Efficiency Program ......................... 152 13.3 Identifying, Analysing and Implementing Efficiencies..................................................... 152 13.4 Cost Modelling ................................................................................................................ 155 13.5 TCO IV&V Agent............................................................................................................. 157

Annexes:

A. Support Concepts and Contract Requirements

B. Use of ASDEFCON (Support) standalone or linked to preceding contract


USING THE SOW AND SOW TAILORING GUIDE

Purpose and Scope

The Australian Standard for Defence Contracting (ASDEFCON) template for the support of Defence materiel systems (ASDEFCON (Support)) is a flexible template, which allows for a broad scope of applications. This flexibility and broad application means that drafters need to adapt the various template documents to each individual contract. Accordingly, the purpose of this Statement of Work (SOW) Tailoring Guide is to provide drafters with guidance when selecting optional components and amending clauses within the ASDEFCON (Support) SOW to suit each individual program’s needs.

The scope of the SOW Tailoring Guide covers the main body of the SOW, with reference to other elements of the template (eg, the modular parts of the SOW, known as Detailed Service Descriptions (DSDs)) where necessary. Annexes and DSD have additional guidance embedded within them, and drafters should refer to this additional guidance when considering and using those other elements. The ASDEFCON (Support) SOW and the SOW Tailoring Guide should be read and used together.

Capitalised terms, acronyms, abbreviations and referenced documents used throughout the SOW Tailoring Guide take on the meanings specified in Attachment M to the ASDEFCON (Support) template. References, acronyms and abbreviations that are used frequently in the SOW Tailoring Guide are listed below.

Referenced Documents

The following table lists the documents referenced in this SOW Tailoring Guide:

Reference Description

ASDEFCON (Support) template Conditions of Contract (COC) Attachment M, Glossary.

ASDEFCON Handbook – Supplementary Information – Philosophy behind the ASDEFCON Templates (herein referred to as the ‘ASDEFCON Handbook Philosophy Volume’).

ASDEFCON (Complex Materiel) Volume 2

ASDEFCON Linkages Module

ASDEFCON (Standing Offer for Goods and Maintenance Services)

ASDEFCON (Strategic Materiel)

ASDEFCON (Support Short)

Contract Template Selection and Tailoring Guide

Australian Government Information Security Manual

AAP 5030.001CD Defence Aviation and Australian Air Publication Systems and Specifications Manual

AAP 7001.048(AM1) ADF Airworthiness Manual

AAP 7001.053(AM1) electronic Technical Airworthiness Management Manual (eTAMM)

AAP 7001.054(AM1) Airworthiness Design Requirements Manual

AAP 7001.055(AM1) Support and Test Equipment Through Life Support Manual

AAP 7001.059(AM1)B1 to B2 ADF Aviation Maintenance Management Manual

AAP 8000.010(AM1) ADF Operational Airworthiness Manual

ABR 6492 Navy Technical Regulations Manual

ADFP 7.0.2 The Defence Training Model

AS/NZS 4801:2001 Occupational health and safety management systems—Specification with guidance for use

AS/NZS ISO 9000:2006 Quality Management Systems – Fundamentals and Vocabulary

AS/NZS ISO 9001:2008 Quality Management Systems – Requirements

AS/NZS ISO 14001:2004 Environmental Management Systems – Requirements with Guidance for Use

AS/NZS ISO 14031:2000 Environmental Management – Environment Performance Evaluation –

ASDEFCON (Support) V3.1 vi



Guidelines

DEF(AUST) 1000C ADF Packaging

DEF(AUST) 5085B Engineering Drawings

DEF(AUST) 5664A Work Breakdown Structures for Defence Materiel Projects

DEFLOGMAN Defence Logistics Manual

DEFLOGMAN, Part 2, Volume 5, Chapter 3 Australian Defence Force Requirements Determination and Management of Reserve Stocks

DEFLOGMAN Part 2, Volume 5, Chapter 4 Defence Procurement Routing Rules in support of the MILIS

DEFLOGMAN, Part 2, Volume 5, Chapter 5 Item Identification and Recording of Defence Logistics Assets in support of the MILIS

DEFLOGMAN, Part 2, Volume 5, Chapter 6 Defence Materiel Entitlements

DEFLOGMAN, Part 2, Volume 5, Chapter 7 Defence Policy on Obsolescence Management

DEFLOGMAN, Part 2, Volume 5, Chapter 8 Disposal of Defence Assets

DEFLOGMAN Part 2, Volume 5, Chapter 17 Stocktaking Defence Assets held by Contractors

DEFLOGMAN Part 2, Volume 5, Chapter 20 Defence Stock Location Policy to support the JLC Storage and Distribution Network

DEFLOGMAN, Part 2, Volume 5, Chapter 24 Defence Volumetric Data Policy

DEFLOGMAN, Part 2, Volume 7 Defence Supplier Quality Assurance Manual

DEFLOGMAN Part 2, Volume 10, Chapter 3 Defence Policy on Integrated Logistic Support

DEFLOGMAN Part 2, Volume 10, Chapter 4 Configuration Management

DEFLOGMAN Part 2, Volume 10, Chapter 10 Materiel Maintenance Policy

DEFLOGMAN Part 2, Volume 10, Chapter 16 Defence Policy on Life Cycle Costing Analysis

DEFLOGMAN Part 2, Volume 10, Chapter 17 Contingency Maintenance

DEFLOGMAN Part 2, Volume 10, Chapter 19 Calibration Policy for Support and Test Equipment

DEIs Departmental Environment Instructions

DI(G) ADMIN 35-1 Procedures for the Use of Defence Estate Assets by Non Defence Organisations or Individuals including Commercial Contractors

DI(G) ADMIN 40-2 Environment and Heritage Management In Defence

DI(G) ADMIN 40-3 Assessment and approval of Defene actions under the Environment Protection and Biodiversity Conservation Act 1999

DI(G) LOG 4-1-003 Defence Inventory and Assets Manual

DI(G) LOG 4-3-017 Supply Aspects of Contractor Owned Spares

DI(G) LOG 4-5-003 Defence policy on acquisition and management of Technical Data

DI(G) LOG 4-5-012 Regulation of technical integrity of Australian Defence Force materiel

DI(G) OPS 02-2 Defence Aviation Safety Program

DI(G) OPS 05-3 Civilians in Support of Australian Defence Force Operations

DI(G) OPS 16-2 The Management of Electromagnetic Environmental Effects

Defence Learning Manual, Part 1, Chapter 8 Provision of Defence-Specific Training to External Service Providers

DI(N) ADMIN 37-15 Assuring the Safety, Fitness for Service and Environmental Compliance of Naval Capability

DI(N) ADMIN 37-16 Navy Regulatory System

DI(N) ADMIN 37-17 Regulation of Safety Management Systems through the Navy Regulatory System

DI(N) LOG 47-3 Technical Regulation of Navy Materiel

Defence Intellectual Property Policy 2008

DMO Productivity and Performance Based Contracting Handbook

ASDEFCON (Support) V3.1 vii


ASDEFCON (Support) V3.1 viii


(Managing Contractor Performance under Productivity and Performance Based Contracts)

DPPM Defence Procurement Policy Manual

DSM Defence Security Manual

ESCM DEFLOGMAN Part 3, Electronic Supply Chain Manual

Environment Protection and Biodiversity Conservation Act 1999

GHS Globally Harmonized System of Classification and Labelling of Chemicals (GHS) (United Nations) (http://www.unece.org/trans/danger/publi/ghs/ghs_welcome_e.html)

Hazardous Wastes Act

MIL-STD-974 Contractor Integrated Technical Information Service (CITIS)

Ozone Protection and Synthetic Greenhouse Gas Management Act 1989

PPBC Guide for ASDEFCON (Support) V3.1

Radiation protection and nuclear safety legislation, codes and standards

Australian Radiation Protection and Nuclear Safety Act 1998

Australian Radiation Protection and Nuclear Safety Regulations 1999

ARPANSA Radiation Protection Series (http://www.arpansa.gov.au/Publications/codes/rps.cfm)

TRAMM-L Technical Regulation of ADF Materiel Manual – Land

WHS Legislation and approved codes of practice

Work Health and Safety Act 2011

Work Health and Safety Regulations 2011

Codes of Practice approved under section 274 of the Work Health and Safety Act 2011 (http://www.safeworkaustralia.gov.au/Legislation/model-COP/Pages/Model-COP.aspx#3)

Defence WHS Manual Defence Work Health and Safety Manual

Acronyms and Abbreviations

The following table lists the common acronyms and abbreviations used in this SOW Tailoring Guide. For further acronyms and abbreviations refer to the ASDEFCON (Support) Glossary:

Abbr. / Acr. Description

ADO Australian Defence Organisation

AEO Accredited Engineering Organisation (Land TRF) or Authorised Engineering Organisation (Aerospace and Maritime TRFs)

AIC Australian Industry Capability

AMO Approved Maintenance Organisation (Aerospace TRF) or Accredited Maintenance Organisation (Land TRF)

APS Adjusted Performance Score

ASD Aerospace Systems Division

ASDEFCON Australian Standard for Defence Contracting

CASG Capability Acquisition and Sustainment Group

CCP Contract Change Proposal

CDG Capability Development Group

CDRL Contract Data Requirements List


CEMP Contractor Engineering Management Plan

CFE Contractor Furnished Equipment

CIE Continuous Improvement and Efficiencies

CM Configuration Management

CMP Configuration Management Plan

COC Conditions Of Contract

COT Conditions Of Tender

CPRs Commonwealth Procurement Rules

CSC Contractor Standing Capability

CSMS Contractor Supply Management System

CSR Contract Status Report

CSRL Contract Services Requirements List

CSSR Combined Services Summary Report

CSWBS Contract Summary Work Breakdown Structure

CTXP Contractor Transition Plan

http://www.safeworkaustralia.gov.au/Legislation/model-COP/Pages/Model-COP.aspx#3

http://www.safeworkaustralia.gov.au/Legislation/model-COP/Pages/Model-COP.aspx#3



CWBS Contract Work Breakdown Structure

DCDH Defence Capability Development Handbook

DID Data Item Description

DMO Defence Materiel Organisation (now part of CASG)

DMS Data Management System

DPPI Departmental Procurement Policy Instruction

DPPM Defence Procurement Policy Manual

DSCM Defence Supply Chain Manual

DSD Detailed Service Description

DSRG Defence Support and Reform Group

ECP Engineering Change Proposal

ED Effective Date

FEG Force Element Group

FMECA Failure Mode, Effects and Criticality Analysis

FMS Foreign Military Sales

FPS Function and Performance Specification

GFD Government Furnished Data

GFE Government Furnished Equipment

GFF Government Furnished Facilities

GFI Government Furnished Information

GFM Government Furnished Material

GFS Government Furnished Services

ILS Integrated Logistics Support

IP Intellectual Property

IPB Illustrated Parts Breakdown

ISP Integrated Support Plan

IV&V Independent Verification and Validation

KPI Key Performance Indicator

LCC Life Cycle Cost

LCCA Life Cycle Costing Analysis

LOT Life Of Type

LSA Logistic Support Analysis

MILIS Military Integrated Logistics Information System

MMP Maintenance Management Plan

MSA Materiel Sustainment Agreement

OCD Operational Concept Document

OD Operative Date

ODIA Offer Definition and Improvement Activities

OPM Other Performance Measure

OSP Operating Support Plan

PAR Performance Assessment Review


PBC Performance Based Contract

PHIP Phase In Plan

PHOP Phase Out Plan

PIP Performance Implementation Period

PPBC Productivity and Performance Based Contract

PWD Planned Withdrawal Date

QEMS Quality and Environmental Management System

RCM Reliability Centred Maintenance

RFT Request For Tender

RMP Risk Management Plan

ROE Rate Of Effort

RUMP Ramp Up Management Plan

S&Q Survey and Quote

S&TE Support and Test Equipment

SE Systems Engineering

SEMP Systems Engineering Management Plan

SOE Standard Operating Environment

SOW Statement Of Work

SPO Systems Program Office

SSCC Support System Constituent Capability

SSMP Support Services Management Plan

SSMS Support Services Master Schedule

SSP Supply Support Plan

SSSPEC Support System Specification

SSVM Support System Verification Matrix

SWMP Software Management Plan

SWSP Software Support Plan

TCO Total Cost of Ownership

TDL Technical Data List

TDMP Technical Data Management Plan

TDR Tender Data Requirement

TRA Technical Regulatory Authority

TRF Technical Regulatory Framework

TSP Training Support Plan

V&V Verification and Validation

V&VP Verification and Validation Plan

WBS Work Breakdown Structure

WHS Work Health and Safety

ASDEFCON (Support) V3.1 ix


Application of ASDEFCON (Support)

The ASDEFCON (Support) SOW template is designed to help drafters produce a draft SOW, for inclusion in a Request For Tender (RFT), and a final SOW for inclusion in a Contract (Support), in order to obtain Services for the support of Defence materiel.

Use of the ASDEFCON (Support) SOW assumes that the drafter has already used the Contract Template Selection and Tailoring Guide and selected ASDEFCON (Support) as the most appropriate template to suit their needs. ASDEFCON (Support) is most suited for medium and large scale support contracts as described by scenarios #1 to #3 at Annex A. ASDEFCON (Support Short) and ASDEFCON (Standing Offer for Goods and Maintenance Services) may be used for a Contract (Support) that is less complex than those requiring the use of ASDEFCON (Support). Drafters should refer to Annex A, for a range of support scenarios and template application, and the Contract Template Selection and Tailoring Guide for further information regarding initial template selection.

The ASDEFCON (Support) template is intended for Performance Based Contracts (PBCs) with additional mechanisms for seeking Efficiencies, making the template one for Productivity and Performance Based Contracts (PPBCs). In PPBCs, the contract is primarily managed by the performance of Services as a whole, rather than individual transactions, and emphasis is placed on the implementation of measures to harvest savings created by Efficiencies in improved productivity. For further information on PPBCs refer to:

a. guidance for clause 10, Verification and Validation (V&V)

b. guidance for clause 13, Continuous Improvements and Efficiencies (CIE) program;

c. the PPBC Guide for ASDEFCON (Support) V3.1; and

d. the PPBC Handbook (available on the Defence Restricted Network (DRN)).

A Contract (Support) can arise under a number of different circumstances, including if:

a. the acquisition and support RFTs are issued to the same tenderer(s) (ie. the successful tenderer would become both the acquisition and support contractor), which would use the ASDEFCON (Strategic Materiel) or the ASDEFCON (Complex Materiel) Volume 2 template;

b. subsequent to the Contract (Acquisition) being signed, the support requirement is sole sourced to the contractor that provided the capability;

c. the Commonwealth decides to seek tenders for a new Contract (Support) following an existing Contract (Support) period, or where Defence was providing support in-house and subsequently decided to test the market for the provision of support; and

d. the Commonwealth decides to seek tenders for a new support contract, having acquired equipment through a separate contract or other arrangement (eg, US Foreign Military Sales (FMS)) that did not include support or only included limited follow-on support.

As an extension to sub-paragraph a. above, ASDEFCON (Support) may also be used in conjunction with an Evolutionary Acquisition (EA) contracting framework. This specific application, which requires the coordination of acquisition phases and the staged increase in Contractor (Support) capability, goes beyond the general advice provided in this SOW Tailoring Guide and specialist advice should be sought.

Further information on the use of the template under each of these situations is provided at Annex B.

Advice to Tenderers

Drafters should provide information that will assist tenderers to lodge viable and competitive bids. Insufficient information will most likely result in misunderstandings as to the nature and exact scope of the work to be undertaken, increased risk, and likely changes to the defined scope of the Contract (Support), and associated cost increases, after contract award. Inadequate definition of scope can also lead to an uncompetitive tendering situation (ie. only an incumbent contractor would have sufficient knowledge of the scope in order to respond with accuracy).

ASDEFCON (Support) V3.1 x


Drafters should include relevant information on the objectives of the proposed Contract (Support), the status of the Mission System and/or other “Products Being Supported” (as per Annex A to the SOW), and information that will give tenderers a comprehensive understanding of the Services required. Drafters should also describe the elements of the existing Support System that are to be covered by the Contract (Support) or where the Contractor (Support) needs to interact with the Commonwealth and other Commonwealth contractors. This information is of prime importance to tenderers who will often not be able to gather this information themselves from sources outside of Defence.

The support philosophy should be based on higher level documents such as the Operational Concept Document (OCD), a Support Concept (if an OCD including the Support Concept is not provided), Use Study Report (also if not included as an OCD Annex), Function and Performance Specification (FPS), Support System Specification (SSSPEC), and/or in-service planning documents. If these documents do not exist or are not suitable, drafters should consider developing a Use Study Report. Guidance on this activity can be found in the Australian Defence Organisation (ADO) Logistic Support Analysis (LSA) Manual.

Information may be included in both notes to tenderers or background documents made available to the tenderers. Importantly, drafters should be aware that all notes to tenderers are deleted from the Contract (Support) when preparing the final version for signature; thus, any notes that give context to the required Services will be lost.

About the SOW

In the ASDEFCON guiding principles1, the SOW is the part of a contract that defines the scope of work that a contractor is required to undertake, and may include one or more specifications that the products-to-be-delivered are required to meet (but this is unlikely for a Contract (Support)). In ASDEFCON (Support), the SOW has been modularised to provide the degree of flexibility in tailoring that is necessary to suit the different scope and needs of the various support contracting requirements. The SOW has been divided into a main body (clauses 1 – 13, for which the guidance is provided in this SOW Tailoring Guide) and a number of standard SOW modules, which are known as Detailed Service Descriptions (DSDs). These DSDs are referenced from the main body of the SOW, listed in Annex B to the SOW, and form a part of the SOW. Accordingly, under ASDEFCON (Support), work may be defined through:

a. clauses in the main body of the SOW;

b. DSDs; and

c. Approved2 plans that are required by the SOW, and are then required to be followed.

When drafting ASDEFCON (Support) contracts, drafters must consider the most appropriate document for defining work requirements. Additionally, if a Service function appears to be ‘missing’ from the main body of the SOW, the drafter needs to check if the requirement has actually been captured through a DSD or a plan that is required to be followed by the SOW.

Any of the three options above may also refer to recognised standards, technical manuals, or quality management systems to define detailed process and procedural level instructions.

ASDEFCON (Support) SOW clauses task the Contractor (Support) to do something and/or to do something in a particular way (eg, 'The Contractor shall develop, deliver and update a Support Services Management Plan (SSMP) in accordance with CDRL Line Number MGT-100’). Details of the main Services required (eg, Engineering and Maintenance) are contained in the DSDs, which are discussed in detail in the next section. Approved plans are developed in accordance with their respective Data Item Descriptions (DIDs), which specify the content and, if applicable, the format of the required data items, and do not specify work per se. In Approved plans, for example, the Contractor (Support) details the processes to be followed and the high-level strategy and associated work (eg, risk management strategies and activities are described in the Approved Risk Management Plan (RMP)).

1 Refer to guiding principles in the ASDEFCON Handbook Philosophy Volume.

2 The term ‘Approved’ is defined in the Glossary at Attachment M.

ASDEFCON (Support) V3.1 xi


If possible, the SOW and DSD clauses should define the Service outcomes required and allow the Contractor (Support) to achieve those outcomes with as much flexibility as possible using its own established processes and standards. This approach accords with ASDEFCON guiding principles 5 and 63, and allows the Contractor (Support) to tailor its processes and adopt standards best suited to the Contract (Support). In some circumstances, however, it may be necessary for the SOW or DSD clauses to task the Contractor (Support) to do something in a particular way (eg, as defined by a particular Technical Regulatory Authority (TRA)). Drafters should ensure that these processes are mandatory before including them in the SOW or DSDs.

There could be significant interaction between the Contractor (Support), the support agency (ie. the CASG SPO), and the Force Element Group (FEG) / end-user, and the SOW needs to recognise and accommodate this interaction. However, the contractual relationship between the Contractor and the Commonwealth Representative (or Authorised Persons), who is usually from the support agency, must be preserved.

In accordance with ASDEFCON guiding principles4, all work to be performed by those in the Contractor's organisation directly involved in providing the Services should be defined in the SOW; however, some of the work that the Contractor is required to undertake will also be for compliance with the provisions of the Contract, as detailed in the COC. Activities that are more in the nature of overhead functions are defined by the COC. For example, the Contractor might be required to take out insurance and provide evidence of this to the Commonwealth. This type of activity would not normally be included in the SOW.

In accordance with good contract drafting practices, each separate requirement in the SOW should be specified in its own clause or subclause for clarity and both ease and traceability of costing. The draft SOW is used at the tendering stage to define the work to be undertaken by the Contractor (Support), under the resultant Contract (Support), and used by the tenderers as a basis for developing their tender responses. Following successful negotiation, the agreed SOW becomes part of the Contract.

The drafter should appreciate how the SOW fits into the RFT package as a whole, and understand the full scope of requirements. The drafter should discuss the Contract requirements with relevant personnel, such as the following, at the outset:

a. Integrated Logistic Support (ILS) Manager or acquisition logistics manager (and should preferably attend a number of ILS team meetings);

b. contracting advisers from Procurement and Contracting Support Branch (PCSB), CASG;

c. personnel from the lead and related support agencies, such as the Contracts Manager, Engineering Manager and Finance Officer for the Contract and related contracts; and

d. FEG Coordinator and/or Capability Development Group (CDG) officer.

Drafters should identify who the most relevant personnel would be.

Drafters may wish to use the following questions as a guide to the completion of the draft SOW and DSD clauses:

a. what has already been done (may be acquisition or in-service action);

b. what remains to be done;

c. why does it have to be done (either the reason or to comply with an instruction, such as a Defence policy);

d. where are the details specified (eg, DIDs, DSDs, payment schedules, references);

3 Refer to Principles 5 and 6 in section 1.5 of the ASDEFCON Handbook Philosophy Volume. Principle 5 is ‘Focus on Outcomes (not Process)’, while Principle 6 is ‘Work in Contractor Process Domain where Suitable’.

4 Refer to Principle 3 in section 1.5 of the ASDEFCON Handbook Philosophy Volume, which is ‘Essential Supply Terms should be Certain and Reflect the Entire Scope of the Agreement’.

ASDEFCON (Support) V3.1 xii


e. where does it have to be done;

f. when does it have to be done;

g. who will do it (include an organisational chart if appropriate);

h. how will it be done (eg, in accordance with technical manuals, etc); and

i. who will fund it?

Detailed Service Descriptions

DSDs and Services

DSDs appear as separate documents in the ASDEFCON (Support) templates but they are integral components of the SOW. They describe selected Services, required from the Contractor (Support), by grouping together clauses related to the provision of particular Services. DSDs have been developed primarily to simplify the tailoring of the draft SOW, enabling many clauses for whole sections of work description to be added or removed from the SOW, but requiring only a small number of changes by the drafter to do so.

Some DSDs will be Core to sets of Services covered by a number of DSDs. These DSDs are said to be ‘head’ DSDs as they head up a group of Services. For example, DSD-ENG-SERV establishes general requirements for Engineering Support (such as engineering information management systems and the responsibilities of various engineering personnel), which provide a framework for more specific work to be conducted, such as software support in DSD-ENG-SW. DSD-ENG-SW can be tailored in and out of an Engineering Support SOW as required; however, if any Engineering Support is required, then the head DSD, DSD-ENG-SERV, must be included. Similarly, DSD-MNT-MGT is a head DSD that defines the management requirements for the Maintenance of military and non-commercial IT type systems. Other DSDs, such as DSD-MNT-SERV, or new DSDs created by the drafter for more specific requirements, may be added or deleted from the SOW as required, but all must work within the framework set by DSD-MNT-MGT (except for commercial-grade IT systems). This concept is illustrated in the SOW structure diagrams in later parts of this SOW Tailoring Guide.

DSDs required by the SOW are listed in the Contract Services Requirements List (CSRL). The CSRL appears as a table similar to the Contract Data Requirements List (CDRL). If a Service needs to be defined in detail, the draft SOW clause should state the requirement for the Service in broad terms and that the Service is to be provided in accordance with a particular line item in the CSRL (eg, ‘The Contractor shall provide routine Operating Support Services in accordance with CSRL Line Number OPS-100’). The CSRL line item should then refer to the relevant DSD.

Use of DSDs also assists in tender evaluation by making it easier to divide up the responses in accordance with the groups of Services that each DSD represents, and to allocate evaluation to members of the respective Tender Evaluation Working Group(s).

A DSD should be used when the amount of detail to define a particular Service requirement would be excessive, such that its inclusion in the main body of the draft SOW would result in the main body becoming unbalanced. In general, the main body of the SOW contains contract-management work (eg, planning, reporting and reviews), while the DSDs describe the technical work effort required. Further details for individual tasks, which are too detailed even for the DSDs, will be listed in the referenced documents contained in either SOW Annex A, ‘List of Products Being Supported’ or SOW Annex D, ‘List of Referenced Manuals’ (as referenced against the applicable Products in SOW Annex A).

Not all Services require a separate DSD. For example, if the Contractor is required to deliver a plan for the performance of work, then it may be sufficient to rely on the applicable clause in the body of the SOW that requires the Contractor to perform the work in accordance with the Approved plan. For example, if the Approved RMP describes detailed risk management activities then only activities that involve the Commonwealth, such as providing access to the Risk Register, need to be included in the SOW.

The DSD should refer to other documents, as applicable. For example, the Contractor might be required to perform a Maintenance servicing in accordance with service manuals and other documents. The DSD might also refer to a plan or report, if the provision of the Service requires the

ASDEFCON (Support) V3.1 xiii


production of such a data item. Like the body of the SOW, DSDs may refer to plans to further define the Services to be provided (eg, the Configuration Management Plan (CMP) which is required by DSD-ENG-CM). In this instance, the clauses are ‘paired’, with the first clause requiring delivery of the plan and a following clause that requiring the work to be implemented in accordance with the Approved plan (refer to the SOW or existing draft DSDs). Drafters should continue to use this pattern of paired clauses when developing new DSDs or adding plans to the example DSDs. All data items requested via DSDs must also be entered in the CDRL.

Drafters should tailor existing draft DSDs as part of the development of the draft SOW. It is usually more efficient to tailor the DSDs before the related contract management clauses in the SOW. Some aspects of the development of a DSD (eg, specialised areas, such as Obsolescence management) should be developed in conjunction with specialist agencies.

Drafters may also find that, due to different Services being required at different locations, the DSDs need to refer to specific locations. One way to address this is to use the same DSD twice, tailored for the differences at each location and with DSD clause 6.1 identifying which location and the Products at that location (note: adding a ‘location’ column into the tables in SOW Annex A can make this easier to manage). An alternative is to amend the clauses in the DSDs, sometimes duplicating and amending them for each location. The method chosen (ie. two similar DSDs or modified clauses), will generally depend on the extent of the differences – more extensive differences can be better managed through separate DSDs.

DSD Structure

If drafters find it necessary to create a new DSD, the following structure applies:

DSD Number (DSD-XXX-XXX)

DSD Title

Description and Intended Use - a brief summary of the purpose and content of the DSD.

Interrelationships - a list of other DSDs that are related to the subject DSD. The DSDs called up in a particular contract may be developed as a hierarchy of DSDs, with a head DSD having one or more subordinate DSDs. Subordinate DSDs are dependent to some extent on the head DSD (ie, the subordinate DSD relies on Services that are specified in the head DSD). Drafters should take care that subordinate DSDs are not called up without the head DSD.

Applicable Documents - a list of documents (other than those generated under the Contract) that should be referred to in performing the specified Services.

Service Description - a description covering all the Services required under the high-level Service specified in the body of the SOW. This usually includes a clause 6.1 to identify the applicable Products Being Supported, by reference to SOW Annex A. Clause 6.2 and subsequent clauses then detail the actual Services. The description of each individual Service should specify the standard of required, such as when the Service is required, rate of delivery, and applicable standards and technical specifications – this can be within the DSD or referred documents or covered through SOW Annexes A or D, or performance measures, but the DSD is at the centre of this description. The Service description will also refer to any plans used to manage the Services or possibly describe additional Services, as discussed above.

Data Item Descriptions

Role and Scope

DIDs are the means by which the Commonwealth specifies requirements for the data items that are to be delivered under the Contract. Data items include management plans, reports, schedules, lists of Technical Data, Configuration Management (CM) data, and any other items of required data. The CDRL is a consolidated list of all required data items5, and also identifies the DID, the delivery

5 Refer to principle 9 in section 1.5 of the ASDEFCON Handbook Philosophy Volume, which is ‘Contract Data Requirements List (CDRL) includes all Data Deliverables’.

ASDEFCON (Support) V3.1 xiv


requirements for the data items, Commonwealth actions (such as Review and Approval in accordance with SOW clause 2.4), timeframes for Commonwealth actions, and the update or maintenance requirements for data items. The meaning of columns in the CDRL table is explained in the introductory clauses of the CDRL, SOW Annex C.

Drafters need to be conscious that the set of data items (and, therefore, DIDs) required for the SOW is dependent on the scope of work under the Contract and that the data items need to be selected (and, where required, tailored) as such. All data items applicable to the Contract are specifically invoked by the relevant SOW and DSD clauses, and drafters must ensure that the CDRL and the SOW and DSD clauses invoking data items match identically (ie, there should be no data items called up that are not invoked by the CDRL and SOW or DSD clauses). DIDs should not duplicate information contained in the CDRL or SOW and, similarly, SOW clauses should not call up information that is in the CDRL or DIDs.

Scheduling

An important consideration in the CDRL is the ’Delivery Schedule’ for a data item. This is often expressed with respect to a Contract Milestone; for example, 20 Working Days after the Effective Date (ie. ‘ED+20’) or 10 Working Days before each Contract Performance Review (ie. CPR-10).

There are certain data items that need to be provided as a requirement for commencing the provision of Services under the Contract (Support), such as the Maintenance Management Plan. For these data items, the delivery requirement should be stated with reference to the Operative Date (OD) of the Contract (eg, OD – (x) days). If such constraints are placed on the Contract becoming operational, they must also be enunciated in COC clause 1.4 (Operative Date), although clause 1.4 can also refer generically to “all data items scheduled for delivery and Commonwealth action prior to the Operative Date”.

Shared / Supplementary DIDs

Some ASDEFCON DIDs are used by two or more ASDEFCON templates. For example, the requirements for meeting agenda and minutes are not unique and the DIDs for these data items are shared by many templates. Other DIDs that are shared include DIDs for Supplies Acceptance Certificates, Applications for Deviation, Codification Data, Safety Data Sheets, and more. Instead of maintaining multiple copies of the same DID, one template will act as the lead template and the DID will be maintained and updated as part of that template.

ASDEFCON (Support) uses a number of shared DIDs. Many of these are maintained as part of the ASDEFCON (Strategic Materiel) template. Some DIDs, such as those for systems engineering plans, may be copied from ASDEFCON (Complex Materiel) Volume 2. ASDEFCON (Support) also hosts DIDs that are reused by ASDEFCON (Support Short).

DIDs that are unique ASDEFCON (Support) are kept with the rest of the ASDEFCON (Support) template on the DRN. Where DIDs are not unique to the template then drafters need to copy those DIDs from the applicable template area.

All DIDs, whether modified or not, must be provided as part of the RFT package. Some DIDs include tailoring guidance in an initial section and this guidance should be deleted before the RFT is released.

Management Plans

For DIDs that define the requirements for management plans, drafters are given the option of either calling up those specific plans individually or electing to roll up certain plans into higher-level plans within the hierarchy of plans under the SSMP (refer to guidance regarding clause 3.4). This might occur if the scale of the Contract, and the work to be managed by the lower-level plan, is limited in scope and, therefore, a stand-alone plan to describe these lower-level management arrangements is not required. For example, all subordinate engineering plans could be rolled-up into the Contractor Engineering Management Plan (CEMP), while in a simpler contract, many plans could be rolled-up into the SSMP.

This approach provides flexibility to the drafter in deciding how management plans are to be packaged, thereby reducing the need for individual plans to be developed by the Contractor while preserving adequate visibility of the Contractor’s processes. There is little point in rolling up plans, however, unless the lower-level plans are expected to be small and would not stand on their own; otherwise, the result is a large, unmanageable document, containing a number of full sized plans. Where plans are rolled-up, the DIDs for the higher-level management plans must be reviewed. Where

ASDEFCON (Support) V3.1 xv


possible, DIDs have been drafted to be ‘self-tailoring’, whereby the inclusion of lower level ‘rolled-up’ plans is based on tailoring of the SOW and ‘if-then’ clauses. For example, DID-SSM-SSMP has clauses such as “subject to clause 6.1.5 [which refers to referencing out to other plans], the SSMP shall describe the risk management processes... [as per a simplified Risk Management Plan]”. The self-tailoring mechanisms may not capture requirements specific to each individual contract, and some DIDs may need to be amended to accurately define the requirements for the rolled-up plan.

Certain plans (and their DIDs), such as the Phase In Plan and Phase Out Plan, should not be rolled up into a higher-level plan because they are distinct activities that only have a limited life. Similarly, data items that will change regularly over the life of the Contract (eg, schedules, issues and risk registers, and lists of technical data) should be requested as separate data items as this reduces the need to update and re-Approve much larger plans that would otherwise have infrequent changes. For example, it can be beneficial to keep the Support Services Master Schedule (SSMS) separate from the SSMP if the schedule is expected to require frequent updates, and it is always beneficial to keep the RMP separate from the Risk Register.

Reports

Some DIDs define reports, such as the Contract Status Report (CSR) and Combined Services Summary Report (CSSR). For PPBCs, the Support Services Verification Matrix (SSVM) also acts as a regular report. By default, many reports have been rolled-up into the higher-level CSR and CSSR. The CSSR was created for this purpose, allowing reports for the management of activities under each of clauses 4 to 8 of the main body of the SOW to be included in one report; however, component reports for each of the key Service areas (ie, SSCCs) can be scheduled for individual delivery through the CDRL. The CSR includes a number of commercially oriented sub-reports and delivery of the Performance Measurement Report, which can be scheduled for separate delivery through the CDRL.

Reports are almost always required to be delivered a number of times during the period of the Contract. Reports will often be scheduled for delivery in preparation for a related review (eg, a CSR would be delivered in preparation for the Contract Performance Review (CPR), although not every CSR must be followed by a CPR).

Where reviews for different Services (ie, for clauses 4 to 8) are to be held separately, different portions of the CSSR can be delivered at different times, in accordance with the CDRL, in order to support each review. If the review of one or more of the Services will be combined, (ie, a Combined Services Performance Review (CSPR) will be held) then some or all of the CSSR portions may be delivered together to inform the combined review. Note that the CSSR, or a relevant portion of the CSSR, can still be delivered without the need to hold a review on every occasion (eg, reports could be delivered quarterly with reviews only held 6-monthly).

Developing new DIDs

If drafters need to develop new DIDs for additional data items, the ASDEFCON guiding principles6 should be referred to for direction, as well as staff with appropriate specialist expertise.

New DIDs should be considered for addition to the pool of ‘standard assets’.

Performance Measurement, Assessment and Management

Performance measurement under ASDEFCON (Support) seeks to determine the suitability of the Services being provided under the Contract. High-level performance measures called Key Performance Indicators (KPIs) are linked to Performance Payments in order to align the Contractor’s motivations for profit with the required levels of performance that enable Defence capability outcomes, Other Performance Measures (OPMs) may be used to validate KPIs, as health indicators to provide early indications of system / equipment deterioration (eg, increasing failure rates), to measure processes and changes in user demand patterns or environment, or as compliance indicators.

KPIs and OPMs are to be defined by drafters in Attachments P and Q respectively. Attachment P defines how often KPIs are measured, evaluated and assessed. For KPIs, details include the calculations for using Achieved Performance to determine an Adjusted Performance Score (APS). The APS represents performance as a percentage of the required performance level sought by

6 Refer to principles, particularly 8 and 10, in section 1.5 of the ASDEFCON Handbook Philosophy Volume. Principle 8 is ‘Products and Processes Linked but Distinct’, while Principle 10 is ‘Process Definition Documents’.

ASDEFCON (Support) V3.1 xvi


Defence and of the relative value of those Services. That is, if the Contractor achieves 80% for a KPI, and this is the level required by Defence, then the result is an APS of 100%. Performance below this level may be of disproportionate value to Defence (eg, 50% of the required performance may offer no value (ie, 0%) to the Defence capability) and Attachment P defines this relationship by the APS. APS are used to calculate Performance Payments in accordance with Annex C to Attachment B.

Clause 10 of the SOW includes the V&V program applied to plan for and to measure KPIs and OPMs. The V&V clause requires the delivery of the SSVM, for regular reporting of performance results. Clause 3 of the SOW also requires the delivery of the Performance Measurement Report, a part of the CSR (clause 3.4.1), for reporting results and payment-related calculations. These are discussed by the parties at the Performance Assessment Review, held at the end of each Review Period (clause 3.4.5).

Performance measurement, assessment, evaluation and review require considerable planning in order to implement an effective performance management framework. Further guidance is provided for each of the applicable clauses, including for:

a. COC clause 1.8, Expiry and Commonwealth’s Option to Extend;

b. COC clause 6, Performance, Acceptance and Ownership;

c. COC clause 7.1, Price and Price Basis;

d. COC clause 7.10, Restrictions on Certain Payments;

e. Attachment B, Annex H, Performance Payments;

f. Attachment P, Performance Assessment;

g. Attachment Q, Other Performance Measures

h. Draft SOW clause 3.4, Support Services Communication Strategy;

i. Draft SOW clause 10, Verification and Validation;

j. DID-SSM-CSR, which specifies requirements for the Performance Management Report within the CSR;

k. DID-V&V-V&VP, which specifies requirements for the V&VP; and

l. DID-V&V-SSVM, which specifies requirements for the SSVM.

For further advice on performance measures, refer to the PPBC Handbook and section 3.2 of the ASDEFCON Handbook Philosophy Volume.

ASDEFCON Linkages Module

In many acquisition projects, there can be a requirement to have a combined RFT that involves both a draft Contract (Acquisition) and an accompanying draft Contract (Support). In these situations, the two contracts must be linked to ensure that required information flows between contracts and that the two contracts work together effectively when required to do so (eg, to ensure that the provision of support Services only begins when there are Products delivered that need to be supported).

The ‘ASDEFCON Linkages Module’ links together a Contract (Acquisition) based on ASDEFCON (Strategic Materiel) with a Contract (Support) based on ASDEFCON (Support). The module includes a number of changes to the ASDEFCON (Strategic Materiel) Conditions of Tender and both Conditions of Contract, and Statements of Work. The ASDEFCON Linkages Module has been developed, but is not for general distribution as it should not be used without seeking advice.

Further information on linking together these two contracts is provided at Annex B. Use of the ASDEFCON Linkages Module, which provides related clauses and further explanation, requires guidance from Procurement & Contracting Policy & Practice Directorate, CASG PCSB and this guidance must be sought by the individual drafter.

ASDEFCON (Support) V3.1 xvii


Offer Definition Activities

Under a number of the acquisition templates (ie. under ASDEFCON (Strategic Materiel) and as an option under ASDEFCON (Complex Materiel) Volume 2), an Offer Definition and Improvement Activities (ODIA) phase may be used as a risk-mitigation phase in the period between the conclusion of the evaluation of tenders and the commencement of Contract negotiations. Further information on the use of an ODIA phase is provided in Part 2 of the ASDEFCON Handbook Philosophy Volume.

The ASDEFCON (Support) SOW and SOW Tailoring Guide have been developed on the basis that there would not be an ODIA phase for support contracts. However, for strategic-level, complex support contracts, and in cases where support services are to be outsourced from Defence, the CASG support agency involved might see advantages in including an ODIA phase in the tendering process. One of the primary advantages of an ODIA phase in this situation would be the use of workshops to obtain as much clarity as possible into the tenderers’ proposed support system solution in the context of Defence’s requirements defined in the draft Contract (Support).

If a tender for support Services is sought in parallel to a Strategic Materiel or large Complex Materiel acquisition, then the ODIA phase for the acquisition should also address the draft Contract (Support). Typical objectives of this ODIA phase, in relation to the draft Contract (Support), would be:

a. to ensure that as much clarity as possible is provided to the Contract (Support) DSDs and draft plans;

b. to ensure coordination between acquisition ILS processes that define the Support System and the further refinement of the Contract (Support) scope (eg, further definition of the supplies that will become the Products Being Supported); and

c. to address issues associated with coordinating the schedule for the Contract (Acquisition) Transition activities with the Phase In and ramp up activities of the Contract (Support).

Operative Date

The OD is the date by which the Contractor must be able to demonstrate their achievement of a level of capability sufficient to commence the provision of Services required by the Contract. This does not assume that the full scope of Services will be required immediately after OD, but will requires sufficient evidence of the Contractor being able to meet the critical aspects of Service provision. Having an OD acknowledges that, in many cases, the capability to provide Services cannot be simply switched-on at the ED. Accordingly, there must be a list of accomplishments that indicate that the required capability to provide support has been reached, including, for example:

a. having drafted robust plans for managing Services,

b. attaining any required licences or permits (eg, for managing Hazardous Substances that require such licences or permits);

c. attaining the requisite TRA authorisation (eg, Authorised or Accredited Engineering Organisation (AEO) status) or presentation of information relating to regulatory compliance;

d. having acquired and installed all critical Contractor-furnished elements;

e. having received, accepted and installed critical Government Furnished Material (GFM);

f. having undertaken sufficient staff training; and

g. having required subcontracts signed, particularly with Approved Subcontractors.

When the Contract (Support) is linked to a Contract (Acquisition), via the ASDEFCON Linkages Module, OD will also be dependent upon the delivery and initial System Acceptance of Mission Systems. This coordinates the use of the system(s) by Defence with the commencement of support.

Although the OD requirements are contained in the COC (clause 1.4), the list of requirements include work activities in the SOW; hence, drafting of both parts of the Contract (Support) must be

ASDEFCON (Support) V3.1 xviii


coordinated. The tailoring effort for the SOW relates primarily to Phase In activities (which are defined in SOW clause 2.6), the Phase In Plan (PHIP), and the data item deliveries required by the CDRL.

Importantly, the OD clause places work obligations on both the Contractor and the Commonwealth. The Commonwealth may need to provide GFM (eg, data, information and equipment), access to facilities and training in Defence information systems, in order to achieve OD.

Tailoring the Draft Statement of Work

An approach has been adopted in the ASDEFCON (Support) SOW and DSD templates, which involves beginning with a broad selection of commonly used clauses and then adding DSDs and optional clauses in order to expand the scope of the template to suit individual Contract (Support) requirements. This has been done to make the SOW easier:

a. for drafters who have relatively standard support services requirements; and

b. to comprehend without having to read too many unnecessary clauses.

To achieve this, clauses have been classified as:

a. ‘Core’;

b. ‘Core Options’; or

c. ‘Optional’.

Core clauses are those that must be included in all draft SOWs (for PPBCs of the scale covered by the template). Many core clauses contain internal options, which become ‘Core Options’. If a core clause contains alphabetised internal options (eg, ‘Option A’ and ‘Option B’), only one of the options must be chosen. For example, clause 6.1 requires a Maintenance Management Plan (MMP), but that plan could be either stand-alone (Option A) or rolled-up into the SSMP (Option B) – either way, planning for maintenance activities remains core.

If a core clause contains options that are not alphabetised, drafters may choose as many of the options as required. For example, clause 5.5 is core and requires one or more DSDs for Engineering Services to be included in the SOW through the selection of optional clauses. Each of the options within a core clause is accompanied by a note to drafters, and further advice in this SOW Tailoring

Guide, to assist drafters in choosing an appropriate option.

Optional clauses are those that may or may not be used, depending on the requirements of a particular Contract (Support). An optional clause means that it is optional with respect to the range of contracts that may use this template, but many optional clauses must be used in contract-specific circumstances, such as to meet technical regulatory requirements. Advice on when optional clauses may be required is provided through notes to drafters and this SOW Tailoring Guide.

The system of Core and Optional clauses within the template is hierarchical. A Core clause may be a sub-clause to a higher-level Optional clause. This means that inclusion of the Core clause is required only if the higher level Optional clause has been included. If the higher level Optional clause is not included, then none of the subclauses are required. For example, the inclusion of SOW clause 5, Engineering Support, is

ASDEFCON (Support) V3.1 xix


Optional because Engineering Services may not be required for every contract that uses the template. However, if Engineering Services are required then having an appropriate plan, either stand-alone or rolled-up into the SSMP, is Core and therefore must be included.

Within the different documents that comprise the ASDEFCON (Support) SOW template, core clauses may be located in the ASDEFCON (Support) SOW, SOW Annexes and the body of DSDs and DIDs. Optional clauses also appear in these documents, with additional clauses appearing in this SOW Tailoring Guide and the guidance sections of the DSDs and DIDs, from where drafters can transfer them into the draft SOW, DSDs and DIDs.

Clauses may also be tailorable or non-tailorable. For guidance on whether a clause is tailorable or non-tailorable, see the SOW Tailoring Guide or the guidance within the relevant DID or DSD.

Note that many clauses (requirements) within DIDs are ‘self-tailoring’. This means that they create conditional requirements for specific information to be either included or excluded in the resulting data item, depending upon the tailoring of the SOW or related DSD. ‘Self-tailoring’ requirements are generally worded as “if the Contract requires [X] then the [data item’] shall describe …” and minimise the need for drafters to modify DIDs.

The wording of tailorable clauses may be changed by the drafter to suit the requirements of the Contract, whereas the wording of non-tailorable clauses cannot. A clause may be non-tailorable because the wording has been established by an authority external to the drafter's organisation, such as having already been negotiated between the CASG and industry. For example, clause 2.4 for deliverable data items was agreed by the Contracting Consultative Forum and authorised by the Director General Contracting Policy and Operations (an organisation preceding CPSB) and, therefore, cannot be changed. The classification of a clause as non-tailorable does not preclude minor changes such as updating references to clause numbers or annexes, provided the meaning of the clause is preserved.

The flowchart at Figure 1 (below) shows the procedure a drafter should follow in deciding:

a. whether a clause should be included or omitted;

b. when a new clause is required; and

c. whether a clause may be tailored or not.

Core and Optional clauses are annotated as such in the heading clauses of the SOW, the SOW Tailoring Guide, the DIDs, and DSDs, if necessary. Drafters should remove any annotations (eg, ‘Option A’, Core, etc) before the documents are released to tenderers.

Recommended Approach to Tailoring

Tailoring the ASDEFCON (Support) templates requires broader consideration of the requirements for support Services, not only the clauses themselves. The following table outlines a recommended approach, identifying each of the major steps in the process.

Step Activity Notes

1 Define Support Concept and Support Procurement Strategy

When tendered with an acquisition contract, the Support Concept is included in the Operational Concept Document (or Description of Requirement). The support procurement strategy should be outlined in the Acquisition and Support Implementation Strategy (ASIS).

2 Select major optional SOW clauses Primarily the clauses for the major Services from the SSCCs (clauses 4 to 8).

3 Select DSDs and identify any new DSDs needed

These will be as groups of services supporting the major clauses selected in Step 2. These are tailored and/or developed in Step 5.

4 Define ‘Products Being Supported’ These are included in SOW Annex A. This may need to be revisited if there is limited detail available (eg, if waiting on the outcomes of acquisition contract).

ASDEFCON (Support) V3.1 xx


ASDEFCON (Support) V3.1 xxi

Step Activity Notes

5 Tailor existing DSDs and develop new DSDs

Identify the types of Services required.

Confirm the suitability of and tailor existing DSDs, and develop new DSDs as needed.

Confirm the suitability of existing DIDs and develop new DIDs as needed. Not that conducting “X” Services in accordance with an Approved plan is a common way for acquiring management type services for the contract.

Develop the initial CDRL and CSRL.

6 Develop management regime for each SSCC

Includes roll-up of plans, reports, and review activities for clauses 4 to 8.

7 Tailor other clauses to ‘Wrap Around’ SSCCs

Clause 9 for resources (revisit SOW Annex A, Products Being Supported).

Clause 10, Verification and Validation (V&V), if applicable.

Descriptions within Scope and General Requirements, clauses 1 and 2.

Tailoring within Support Services Management and Quality Management, clauses 3 and 11.

8 Develop performance-management framework

Includes applicable entries in V&V clause for planning and reporting data collection (Support Services Verification Matrix, if applicable), Attachments for performance assessments and payments, KPI reporting and reviews.

9 Finalise SOW and SOW annexes and review for consistency

Update Products Being Supported, CSRL, CDRL, etc.

10 Tailor COC and Attachments to align with SOW requirements and Contract risk assessment

In relation to SOW requirements, focus on Operative Date clause, Price and Payment Schedule (Attachment B, through COT Annex D), performance assessment (ie, KPIs and OPMs), GFM, Glossary, etc.

11 Tailor COT and COT Annexes to align with SOW and COC requirements

In relation to SOW requirements, develop the ‘technical areas’ of Annexes E, F, and G, including the draft data items to be tendered. Also, coordinate with drafting the payment structure for types of Services in Annex D.


SOW TEMPLATE FLOW CHART FOR SELECTION OF CLAUSES, DIDS AND DSDS

Before starting preparation of the draft SOW, the drafter should have a set of requirements for the support of the Products Being Supported (eg, Mission System(s), parts of the Mission System(s), and the parts of the Support System) under the contract. The drafter will be alerted to some requirements, such as the need to meet Technical Regulatory Authority requirements, by clauses in the SOW and the SOW Tailoring Guide. The flowchart below is designed to assist the drafter in deciding which clauses should be included in the draft SOW and which clauses in the SOW Template can be omitted from the draft SOW.

Does it contain Core/ Core option clauses?

subclauses?

N

StartCore clauses are those that must be included in all SOWs. Core Option clauses are those that are among a range of optional clauses, one of which must be used. Clauses that are not Core or Core Option clauses are Optional clauses. Optional clauses can contain Core and Core Option sub-clauses. Core/Core Option clauses/ sub-clauses, eg,, dealing with technical regulation, must be included if a particular Optional clause is chosen.

Is the clause a Core or Core

Option clause? Some clauses in the SOW Template will not be applicable to the particular support requirements, and therefore should not be used

Is the Optional clause to be included?

Omit Optional clause

Include if applicable to particular work/concerns and timing

Y

N

N

xxii


N

Is the clause tailorable?

Tailor clause

Are the clause and its sub-clauses

tailorable?

Does the clause need tailoring?

Y

N

N

Does the clause need tailoring?

Tailor clauses as permitted

Include clause in draft SOW

Y

Y

Y

N

xxiii


xxiv

Does the DSD exist?

Include as part of draft SOW

Draft new DID

Tailor DSD

Draft new DSD

Tailor DID

Finish

No further action required No further action

required

Does the clause/ sub-clauses call up CDRL

line item/ DID?

Does the DID exist?

Does the DID need tailoring?

Does the clause/ sub-clause call up CSRL

line item/ DSD?

Does the DSD need tailoring?

Include as part of draft SOW

Y

Y

Y

DSDs will be listed in the CSRL and included in an Annex.

Y

Y

Y

N

N

N

N

N

N

May exist in ASDEFCON (SM) if not in Support

Figure 1: Flowchart for Inclusion of Clauses in Draft SOW, DIDs and DSDs

DIDs will be listed in the CDRL and included in an Annex.


Template and SOW Tailoring Guide User Tips

The guidance, 'notes to drafters' and 'notes to tenderers' in the ASDEFCON (Support) template, SOW Tailoring Guide, DIDs, and DSDs are intended to guide the drafter (and in some cases the tenderer) on which clauses should be used in various circumstances. They may also advise the drafter on whom to consult for further information, and relevant reference documents. This SOW Tailoring Guide does not contain detailed explanations or background information behind the development of clauses (such as in the ASDEFCON Handbook Philosophy Volume).

Drafters should read the draft SOW and SOW Tailoring Guide well before the date the SOW is required, because some of the reference documents and necessary advice may take some time to obtain and collate. On an initial read of the templates, a drafter will often query which clauses will be needed and which will not. In many cases the templates and tailoring guidance will not be able to assist; these can only explain the options available and the drafter has to decide which option suits the needs of the individual contract. The answer frequently lies with the ASIS, and drafters may need to revisit this strategy to ensure that the scope of the required contract is accurately described before beginning to tailor the templates.

Drafters may also need to seek out referenced documents in order to undertake tailoring. In many cases, documents containing information required by tenderers will also need to be included in the RFT.

When drafting the SOW, drafters should have both the SOW and SOW Tailoring Guide open together. The following steps are suggested when addressing a relevant section or clause within the SOW:

a. determine what Services are required and the Products Being Supported;

b. read the relevant clause, then refer to the SOW Tailoring Guide or DSD tailoring guidance, as applicable, for any additional information and suggested clauses;

c. understand what the clause requires of the Contractor and determine its relevance;

d. refer to any inter-related DIDs and/or DSDs to ascertain any flow-on effects of the relevant clause or if work requirements are actually defined in data items, such as Approved plans prepared in accordance with DIDs, and undertaken in accordance with those plans;

e. select the relevant clause that best describes what is required of the Contractor; and

f. cross-reference any inter-related DIDs and/or DSDs that the newly selected clause may require and insert these references into the DID/DSD.

The drafter will be confronted with the problem of whether a particular clause in the ASDEFCON (Support) SOW template or SOW Tailoring Guide is applicable to their particular support requirements. The guidance cannot provide hard-and-fast rules because of the wide range of variables and every support contract is different. However, some of the factors that influence the decision (from the ASIS or support procurement strategy), and should be considered, are:

a. size of the proposed contract, for example, whether the contract is for the support of a complete platform such as a ship or a fleet of aircraft, a medium-sized mission sub-system (eg, the combat system for a class of ship), or for a smaller system such as a fleet of radios or portable generator sets;

b. expected dollar value of the contract and if the amount triggers a need for additional insight, governance and, in some instances, change in procurement policy;

c. life of the contract (many years or relatively short-term, and options to extend);

d. range and complexity of Services required;

e. range of technologies involved in performing the work;

f. whether the technologies are new and pose a higher risk or relatively mature and low risk;

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g. geographical locations and the distribution of Products and required Services;

h. reliance on Subcontractors for critical and high-value functions;

i. critical nature of the Services;

j. experience and track record of the potential tenderers; and

k. whether the potential tenderers are new or have provided the required support beforehand.

This list is not exhaustive and drafters should take into account other factors relevant to their particular contract requirements.

Although development of the draft SOW will be an iterative process, generally, drafters should attempt to define the Services required before they specify requirements for other items such as plans, reports and meetings. The nature and extent of the Services will drive requirements for plans, reports, and meetings. Drafters should address:

a. the specific Services required;

b. the need for management of those Services (eg, will a separate Supply Support Plan be needed for Supply Services); and finally

c. the management requirements for the whole SOW (as defined under clause 3).

The DIDs and DSDs that form part of the ASDEFCON (Support) documents may be tailored to meet particular contract requirements. Drafters should review these documents and omit or amend clauses so that the DID or DSD accurately states the requirements, and does not ask tenderers or the contractor to perform unnecessary work.

Word Processing Tips

All of the ASDEFCON SOW templates are based on a common Microsoft Word® document template. The addition of new clauses, notes, etc, must be done with care to avoid inadvertent changes to the styles within the template and to ensure that the automatic numbering functions correctly.

The general tips that follow will assist drafters in working with the documents:

a. Download the ASDEFCON style templates, from the ASDEFCON site on the intranet, and install the files as directed in the accompanying guide. These templates contain the underlying styles used by all parts of the template.

b. Do not delete clauses (headings) at heading level 1 or 2 in the SOW template. If a clause is not required, retain the heading and mark it, 'Not Used'. Any additional clauses at heading level 3 should be inserted after the clauses already included in the template. This preserves the clause numbering, the cross-references between clauses within the template and the correlation between the clauses in the SOW and the guidance in this SOW Tailoring Guide.

c. Do not use ‘formatting’ to change the look or numbering of a clause as this is likely to corrupt the numbering system. Instead, use the MSWord® ASDEFCON styles toolbar to apply ‘styles’ – the SOW has its own style set, most of which can be applied from the SOW toolbar

that can be shown or hidden by clicking on the button. If additional styles are required (eg,

for even lower level clauses), open the ‘Styles and Formatting’ task pane (click the button or select from the menu: Format > Styles and Formatting…) and show ‘Available styles’. Highlight the applicable clause and then select the required style from the ‘Pick formatting to apply’ list. SOW specific styles all begin with the words “DMO – NumList SOW”.

d. When pasting text into the SOW template from another document, use 'Paste Special' and paste as 'Unformatted text' (Edit > Paste Special > Unformatted Text). This will ensure that

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unwanted styles are not introduced into the document. Apply the required style manually (as described in paragraph b.).

e. If the clause numbering associated with a style in the document appears corrupted or lost, there are a few options to try:

(i) Reapply the style as described in paragraph c. above, which should correct any formatting inadvertently applied to the style.

(ii) Use the Templates and Add-Ins Organizer (Tools > Templates and Add-Ins > Organizer) to close the default template if not the ASDEFCON styles template (right-hand list) and open the ASDEFCON styles template, and then copy styles from the clean template to the current document.

(iii) Alternatively, if changes were saved to the ASDEFCON template (a dialog box would have prompted the user to save the changes) a clean copy of the template can be downloaded and used to replace the existing template (Microsoft Word® will need to be closed to do this). When the document is re-opened the styles should update, otherwise use the Templates and Add-Ins Organiser, as per option (ii).

Optional clauses in the SOW appear as either a selection of ‘option’ styles or within a table, in order to display a box around the applicable clauses. The selected option can be reverted to normal-looking clauses using the appropriate methods, which are:

a. for ‘option’ styles (ie, the ‘DMO - Option’ style the explanatory note (bold italics) and an applicable option style for the clause level (eg, ‘DMO – NumList SOW LV3 OPT’ for a level three clause)), delete the explanatory note and apply the ASDEFCON style to the clause (eg, ‘DMO – NumList SOW LV3 OPT’ is changed to ‘DMO – NumList SOW LV3’) using the SOW toolbar; and

b. for tables (used to place a single border around clauses and subclauses within the same option), highlight the table and select the menu “Table > Convert > Table to Text” and allow the rows to be separated by paragraph marks – the result should be correctly styled clauses.


ASDEFCON (SUPPORT) STATEMENT OF WORK TAILORING GUIDE

1. SCOPE

1.1 Purpose

Sponsor: CASG Standardisation Office

Status: Core

Purpose: To state the prime purpose of the Contract.

Policy: Nil

Guidance: This clause should be a concise statement of the purpose or aim of the Contract by the addition of the name(s) of the Mission System(s) or the subsystems / equipments that will be supported. Drafters need to ensure that the Glossary (Attachment M) definition for the Mission System(s) and this clause are consistent. The Mission System(s) and other Products Being Supported are detailed in SOW Annex A; hence the names of the Mission System(s) in clause 1.1 must also be consistent with Annex A.

If there is no Mission System associated with the Contract (Support), then drafters should insert a brief summary description of the Products Being Supported, as listed in SOW Annex A (eg, electronic Support and Test Equipment (S&TE)).

Drafters must review the generic words in clause 1.1.1 to check that they are applicable to the individual Contract. If not, the clause must be amended to suit.

Related Clauses: Draft SOW Annex A, List of Products Being Supported.

Attachment M, Glossary.

Optional Clauses: Nil

1.2 Background


Status: Optional

Purpose: To provide the Contractor with relevant background information to enable it to propose and sustain an optimal Support System, and to optimise provision of the required Services.

Policy: Nil

Guidance: This section of the SOW provides a brief overview of the background to the Contract, including its genesis and broad objectives. For example, precursor support contracts could be summarised, as well as related support contracts, other support arrangements, and/or acquisition contracts with which this Contract (Support) must integrate.

As this section is not intended to be contractual in nature ‘shall’ statements should not be used. Care must also be taken to ensure that statements made in this section do not conflict with other elements of the Contract.

As a guide, this section should be reasonably short, with sufficient information to establish the background and ‘set the scene’ for the Contract, but should not provide excessive information that could compromise other parts of the Contract. Where this background information can be included in a separate support concept document or report, it can be referenced from clause 1.2.

Drafters should develop clauses tailored to the particular needs of the required Services. Subjects that might be addressed include:

a. description of the Mission System(s) and its/their function(s);

ASDEFCON (Support) V3.1 1


b. Defence objectives to be achieved that will be enabled by the provision of these Services (if included, this description should be consistent with required Outcomes that are related to KPIs);

c. related projects/phases, related support contracts or other related systems in-service, if interfaces are required;

d. the applicable support concept;

e. intentions and factors affecting future support including major upgrades and/or the Planned Withdrawal Date (PWD);

f. relationship to industry sector studies and capability maturity (if this is not addressed elsewhere in the SOW);

g. description of existing or related Support System(s);

h. existing support arrangements; and

i. roles and functions of the main authorities and organisations involved with the Contract.

Related Clauses: Nil




2. GENERAL REQUIREMENTS

2.1 Scope of Work


Status: Core

Purpose: To define the scope of the work that the Contractor is required to perform for the provision of Services.

Policy: Nil

Guidance: This clause should define the overall scope of work to be performed by the Contractor under the Contract, including the major Services. The scope of work would normally include support of all or part of the Mission System(s), plus components of the Support System, as described in SOW Annex A, List of Products Being Supported.

In addition to the principal items (Mission System(s) or equipment) to be supported, SOW Annex A may also include Government Furnished Equipment (GFE), such as S&TE. Contractor-furnished items would not normally be included in SOW Annex A, as these items are captured in the scope of support of Support Resources in clause 9. In the case of Contractor-owned spares, however, some of these Contractor-furnished items may be included in SOW Annex A because these items are physically delivered to Defence.

Clause 2.1.1 should be tailored to indicate the Services to be provided under the Contract. The default template clause lists the major services as they relate to the level-1 clauses of the template and level-2 clauses for Support Resources. Accordingly, the drafter should have already determined the scope of the Contract and this may be one of the last clauses to be edited.

Within the scope listed in the default clause, the Services to be provided under the five SSCCs (specified in clauses 4-8 of the SOW) should be tailored to align with the required Services to be obtained through the Contract (Support):

a. Operating Support, clause 4 providing Operating Support Services;

b. Engineering Support, clause 5 providing Engineering Services;

c. Maintenance Support, clause 6 providing Maintenance Services;

d. Supply Support, clause 7 providing Supply Services; and

e. Training Support, clause 8 providing Training Services.

The scope also includes a sub-list of Services for Support Resources (specified in clause 9 of the SOW). Support Resources can include both GFM and Contractor-furnished items; hence, for example, support of S&TE may still be ‘in scope’, even if the Contractor is not required to support Government-owned S&TE.

Default clause 2.1.2 includes the DSDs, as listed in the CSRL, within the scope of the Contract. Accordingly, drafters do not need to expand or explain the meaning of the listed Services (eg, different types of ‘Supply’ activities) in order to capture the full scope of work.

Drafters may insert additional clauses that cover the complete range of Services required. For example, drafters should indicate the location(s) where Services are to be provided and where equipment to be supported is located, if these are not specified elsewhere in the SOW. There must be a clear statement in general terms of all the work the Contractor is required to perform. Care should be taken in generating these scope clauses; however, to avoid creating conflicts with other clauses in the draft Contract (Support).



If the Services are required to meet Technical Regulatory Framework (TRF) requirements, this should be indicated in the description of the scope of work to be performed, including the applicable TRF requirements documents, namely:

a. ABR 6492 - Navy Technical Regulations Manual (NTRM);

b. Technical Regulation of ADF Materiel Manual – Land (TRAMM-L); and

c. AAP 7001.053 – electronic Technical Airworthiness Management Manual (eTAMM).

Do not include the production of data items in this clause as these requirements are spelt out elsewhere.

Clause 2.1.3 explicitly states that all Services are Recurring Services, unless indicated otherwise in the SOW (including DSDs) or Attachment B. This clause links to the Price and Payments in Attachment B to ensure that all Services are priced in a consistent way by all tenderers. Drafters need to ensure that, in developing the draft SOW, they have a good understanding of the commercial arrangements that are appropriate for the different types of Services required. As such, drafters should consider developing a Support Procurement Strategy7, in advance of developing the draft Contract (Support), to assist in this regard.

Related Clauses: All other clauses in the SOW and SOW Annexes.

For clause 2.1.3, Attachment B, Price and Payments.


2.2 Rate of Effort

Sponsor: CASG Standardisation Office.

Status: Core

Purpose: To:

a. describe the baseline ROE, including routine variations in the ROE, for the key Products Being Supported (eg, Mission System(s)); and

b. provide the tenderers/Contractor with information to assist in planning the work effort and any subsequent changes to the work effort.

Policy: Nil

Guidance: This clause should describe the baseline ROE, and possible changes in the ROE, that are likely to have an impact on the rate of work required to provide the necessary Services under the Contract. The aim is to set parameters for the Services that form a basis for both the tenderers’ plans and, subsequently, for the Contractor (Support)’s plans. The arising rate and associated effort for many support tasks can be calculated from the ROE; hence, this information assists the tenderers and the eventual Contractor to estimate resource requirements, develop plans and schedules, scale proposed activities, and forecast costs for the required Services.

Drafters should refer to the applicable Materiel Sustainment Agreement (MSA) schedule for the required ROE and system availability for the Mission Systems and / or other major Products Being Supported. In a performance-based agreements framework, the contracted Services should be based on MSA requirements (the high-level agreement) and the level of responsibility and control delegated to the Contractor (Support). If the ROE in the MSA is unclear, the ROE

7 A Support Procurement Strategy may be developed as the in service portion of an Acquisition and Support Implementation Strategy (ASIS). Refer to guidance for developing an ASIS.



may be available from measures established for a previous contract or support period. If the Contract (Support) is being released with a Contract (Acquisition), and an MSA schedule has not yet been drafted, then documents such as the Force Element Group’s Preparedness Directive, the OCD, or a Use Study Report may be used to determine the baseline ROE and the variations in ROE that are applicable to the Contract (Support).

In a support contract spanning a number of Services, the Mission System ROE may not be relevant to quantifying all Services, including (for example):

a. Maintenance Support contracts, if the majority of Maintenance is calendar based;

b. Training Support contracts, when student throughput is not affected by short-term changes to the Mission System ROE; and

c. Engineering Support contracts, where the majority of work is for OEM advice that is primarily of an ad hoc nature.

In these instances, an arising rate for the event (eg, calendar-based scheduled Maintenance, Training courses, or estimated inquiries per year) may be more appropriate than the ROE of the Mission System(s). Arising rates may be defined in the Price and Payment Schedules (Attachment B), and reference to these schedules could be appropriate for contracts not based on Mission System ROE. Any description of arising rate occurring in both the ROE clause and the Price and Payment Schedule must be consistent.

Drafters need to determine how the ROE (and likely changes to the ROE) will be expressed in a way that is meaningful to the Services and phrased in terms of required outcomes wherever possible, rather than workload. The specification of a meaningful ROE can be quite complex. Some example ROE measures are:

a. actual system use (eg, aircraft flying hours and number of sorties, ‘at sea’ days and ‘steaming hours’ for ships, vehicle distance travelled, and operating hours for electronic equipment such as a radar);

b. user demand (eg, an IT or communications system, with X number of users during core work hours and Y number of users out of core hours);

c. set number of events over a given time period (eg, perform quantity X routine Maintenance servicings every month, or Y number of training courses per year for Z trainees);

d. type of usage (eg, the power-time spectrum for an engine or engine fatigue life per period); and

e. predicted occurrences (eg, the likely number of vehicle accidents or lightning strikes on communication systems antennae, or over a period of time).

For some systems, it will be necessary to identify both an ROE and an availability requirement for when the system is not in use but available to the user and not available to undertake support activities (ie, to allow for stand-by time). These types of constraints can change the Contractor (Support)’s work effort from a steady low volume to short periods of high activity. In addition, ROE may be influenced by other factors such as, for ships, the Fleet Availability Schedule and the Usage Upkeep Cycle. Where KPIs are used in relation to system availability, the definition of ROE and the KPI must be consistent.

The specification of ROE should not include detailed arising rates for component failures that result in Maintenance activities, unless the Contract (Support) is based around that component (eg, a Maintenance contract for electrical generators may



have an ROE that is based on the forecast failure rate of the generators and the fleet size). For Mission System support contracts, the tenderers should determine the lower-level work effort requirements from the ROE and historical data (eg, from failure rates that may be provided as GFI or from manufacturer’s reliability data).

ROE and Surge are interrelated (refer to SOW clause ). 3.2.4 ROE is considered to apply over the term of the Contract, although often stipulated on a shorter basis (eg, annually). Surge, on the other hand, is considered to apply for short or unknown periods during that term. Following effort to meet a Surge requirement, the ROE would be expected to return to the previous, or baseline, ROE.

Surge has two components, Exigency and Contingency, which are defined in the Glossary for each Contract (Support), when applicable. As Exigency is a forecast increase in effort or ‘rate of urgency’ (such as a military exercise or a period of increased operational effort). This type of Surge may be expressed relative to the baseline ROE (eg, a 40% increase in Mission System ROE for up to six weeks). The baseline ROE does not include but may be expressed with reference to Exigencies (eg, a ROE of 2000 operating days per year, across a fleet, with an additional 400 days possible for Exigencies). Accordingly, the ROE clause and the Glossary definitions need to be consistent.

If the specification of the ROE is relatively lengthy, drafters should consider including it in a separate document referenced from this clause. Alternatively, if applicable to performance measurement, the ROE could be defined by a performance-measurement plan drafted by the Commonwealth and included as an annex to the SOW or an Attachment. If the ROE is classified, drafters should prepare a separate document that defines the ROE, with the appropriate security grading, and include a reference to this document in the draft SOW.

Changes to the ROE during the period of the Contract (Support) may occur because the Capability Manager requires the change (which would be documented in a revised MSA product schedule). These changes are likely to cause changes to the scope and level of Services provided by the Contractor (Support), the cost to the Commonwealth, and may lead to changes in the Support System itself. Changes to the ROE are incorporated into the Contract through the Contract Change Proposal (CCP) process. The template includes clauses to scope the Contractor (Support)’s submission of a CCP for a change in ROE; however, this clause may need to be tailored based on the Products Being Supported.

If the ROE is expected to vary either through an increase or decrease for the longer term (ie, a year or more, not a temporary Surge requirement), the Commonwealth and Contractor should review the related arising rates for Services and their impact on Price and Payment Schedules.

Related Clauses: Draft SOW clause 3.2.4, Surge, also addresses the management of variations from the baseline ROE due to the Surge requirements of the Contract (Support).

ROE can be linked to performance measures (KPIs or OPMs) such as availability, with implications for V&V, performance-measurement requirements, and payments.

Optional Clauses:

The Contractor shall provide Services that are capable of supporting the Mission System(s) operating at the maximum ROE for […INSERT PERIOD OF TIME OR OTHER WORKLOAD METRIC…].

2.3 Data Management System


Status: Core

Purpose: To provide an efficient means to exchange data between the Contractor and Commonwealth, including the delivery of data items and for access to Contractor management systems.



Policy: DI(G) LOG 4-5-003, Defence policy on acquisition and management of Technical Data

Guidance: DI(G) LOG 4-5-003 establishes the policy framework for the acquisition and management of Technical Data, with the central thrust of the policy being the increased utilisation of data in approved electronic formats.

A Data Management System (DMS) is used to provide electronic access to, and delivery of, Contract-related data, which is managed by the Contractor. In its basic form, a DMS is a Contractor website with appropriate access controls, a navigation system, and the ability to view and download documents. A more complex system may be database driven and run on-line applications – which may be necessary for Quality and other management systems. The DMS clauses also define support and ancillary functions and training necessary to efficiently utilise a DMS.

A DMS creates efficiencies for contract management activities by reducing the delays and cost associated with the transfer of hard copy documents and individual soft copies (on media), and the duplicated effort of managing data and maintaining data configuration by both parties. The use of the DMS is already included in the CDRL for most data items – those not identified for delivery via the DMS are those that are most likely to be delivered before a DMS is established.

In some cases, a data item may only be partially submitted via DMS (eg, performance data may be available, but planning for the next reporting period may not be). In this case, the normal delivery would apply, but the applicable DMS data for the delivery date would be considered part of the delivered data item. Where the drafter wishes to specify what portions can be delivered via the DMS and which can’t, the drafter should annotate the individual CDRL line item accordingly (in the Notes column) and ensure that this issue is discussed with, and understood and agreed by, the preferred tenderer during contract negotiations, when their DMS capability is fully understood by the Commonwealth team.

MIL-STD-974, ‘Contractor Integrated Technical Information Service (CITIS)’ (no longer current), may provide additional background information on the scope and requirements for implementing a DMS.

Related Clauses:

Draft SOW Annex C, CDRL

Draft SOW clause 2.4, Deliverable Data Items

Attachment L, Resident Personnel, requires inclusion of DMS access requirements

Attachment O, Members Required in Uniform, may include DMS access requirements if the required level of detail is not covered by SOW clause 2.3


2.3.1 DMS Objectives


Status: Core

Purpose: To establish the objectives for implementing a DMS.


Guidance: The DMS has the objectives identified in SOW clause 2.3.1, which establishes the purpose of the DMS, against which ‘fitness for purpose’ can be judged. Drafters should not modify these clauses.

Related Clauses: All other sub-clauses within clause 2.3.




2.3.2 DMS General Requirements


Status: Core

Purpose: To establish the requirements for the Contractor’s DMS.


Guidance: Clause 2.3.2 establishes the general requirements, content and access for the DMS. The DMS may be used for both contract-management information and Technical Data, depending on the scope defined in SOW clause 2.3.2.1 for DMS Contract Data. Drafters must tailor this clause to identify the scope of DMS Contract Data, particularly for the sources of data not delivered in accordance with the CDRL.

The draft clause 2.3.2 provides examples of the types of information that are to be stored on a DMS. A number of the items listed are optional, however, to assist the Commonwealth comply with its duty of care obligations under WHS Legislation, the DMS must provide on-line access to:

a. all Authorisations required to be held by the Contractor for the provision of Services in relation to work under the Contract that is covered by WHS Legislation; and

b. the WHSMS required by clause 12.3.2 (which is also likely, but not certain, to contain the WHS-related Authorisations).

Where WHS-related risks are recorded and addressed in the Risk Register, required under clause 3.7.1, then the Risk Register must also be included (noting that this may not be clarified until negotiations). If WHS-related risks are addressed through the WHSMS, then including the Risk Register is not essential. Although not mandatory if not recording WHS risks, it makes sense to include the Risk Register in the DMS in any case.

Note that, as the DMS is required to include Authorisations applicable to WHS Legislation, it makes sense to include all other Authorisations on the DMS, as shown in draft clause 2.3.2, as this facilitates the Commonwealth Representative to confirm compliance with the Contract (which requires compliance with all applicable laws). Note that these include Contractor Authorisations, not personal details.

When Environmental Management is included in the Contract, under clause 12.2.2, the ENVMS should also be included in the DMS Contract Data.

Some additional types of information which might assist the management of the Contract, and to which the Commonwealth may require on-line access to through the Contractor’s DMS are listed as follows:

a. a current copy of the contract and all Approved CCPs;

b. performance-measurement data; and

c. report data, reducing the need for frequent report submissions and reducing the size and detail of submitted reports.

From a more technical or functional level, the DMS may also be able to provide access to:

a. Engineering Change Proposal (ECP) documents, decision records, and design data;

b. CM records;



c. engineering and Maintenance investigation reports;

d. the Maintenance Management System data;

e. the Contractor Supply Management System data;

f. Training system data; and

g. data for Supportability Analysis / Logistic Support Analysis (LSA), Life Cycle Costing Analysis (LCCA), Failure Mode Effects and Criticality Analysis (FMECA), Reliability Centred Maintenance (RCM), spares optimisation, and any other required analyses required by the SOW (including DSDs).

Drafters must also tailor the clauses to identify the Commonwealth Authorised Users of the DMS, which will need to take into consideration the proposed support arrangements and locations of support staff. If Resident Personnel are applicable to the Contract and expected to have access to the DMS, then the DMS requirements need to be included in the terms of reference for the Resident Personnel at Attachment L. Additional access requirements may be needed if the DMS is to interface with, or be available as a stand-alone system to, other Defence units (eg, a Defence operational, Maintenance and/or Supply unit that requires to view or exchange data with the Contractor (Support) regarding Deliverables and Services).

While the drafter may add many of the functions listed above when tailoring clause 2.3, the final DMS scope may not be determined until contract negotiations. In which case, the drafter may include a note to tenderers that the final scope of DMS Contract Data will be determined on a cost-benefit basis.



2.3.3 DMS Implementation, Operation and Management


Status: Core

Purpose: To set out the requirements for the implementation, operation and management by the Contractor of the DMS.


Guidance: While clause 2.3.2 provides the specification for the DMS, clause 2.3.3 provides the necessary provisions associated with its implementation and operation.

In clause 2.3.3, drafters only need to modify clause 2.3.3.2 to identify the delivery locations to be used during the interim period between the Effective Date and when the DMS is fully available for operational use by the Commonwealth Authorised Users.

Attention is drawn to the provisions of clause 2.3.3.5, which states that the Contractor (Support) is not required to provide any computing hardware to the Commonwealth Authorised Users (except where otherwise specified (eg, for Resident Personnel)) or any cryptographic equipment to enable the exchange of classified data. If a DMS is being proposed, the Commonwealth team will need to ensure that:

a. appropriate Commonwealth computing hardware is available when the DMS is required to become operational (eg, the Commonwealth side of the DMS may not be able to be operated on the Standard Operating Environment (SOE) and standalone arrangements may need to be implemented); and



b. if exchange of classified data is required, appropriate cryptographic equipment, security processes and security approvals are in place before the DMS is required to exchange classified data (noting that the Commonwealth may have to provide certain equipment and approvals to the Contractor (Support)).

If the Contract (Support) is to be tendered and commenced in parallel with a Contract (Acquisition), the implementation date for the DMS in the SOW template will need to be amended to refer to the OD (eg, OD-60). The CDRL should also be amended for the DMS Concept of Operations Document, defined by DID-PM-DEF-DCOD, to be delivered prior to the OD (‘schedule’ field).

2.3.4 DMS Training


Status: Core

Purpose: To set out the requirements for the Contractor to provide training to Commonwealth personnel in the use of the DMS.


Guidance: Clause 2.3.4 identifies the Commonwealth training requirements for the DMS, including the scope of the training, the numbers of personnel to be trained, and the training locations. Drafters must tailor the numbers of personnel identified in clause 2.3.4.2 and the locations in clause 2.3.4.4, as identified by the Notes to drafters for those clauses. No other tailoring is required.



2.4 Deliverable Data Items

2.4.1 Development and Submission of Data Items


Status: Core, non-tailorable

Purpose: To impose a contractual obligation on the Contractor to produce, deliver and update all data items in accordance with the CDRL.

Policy: Nil

Guidance: The explanation of the CDRL columns is provided in the covering clauses to the CDRL table at Annex C to the SOW. Guidance on the CDRL is also provided in the guidance material in the front of Annex C to the SOW, which explains the use of the CDRL and the data fields contained within the CDRL.

Drafters should also be aware that this clause and subsequent clauses for data item Review, Approval, Acceptance and delivery under a CCP were negotiated between the CASG and Defence Industry and are not to be changed.

Draft SOW clause 2.4.1 is to be included in the RFT without amendment.

Related Clauses: Draft SOW Annex C, CDRL.

Draft SOW clause 2.3, Data Management System.


2.4.2 Review, Approval or Non-Approval, and Acceptance of Data Items


Status: Core, non-tailorable.



Purpose: To advise the Contractor of the Commonwealth’s actions with respect to data items.

Policy: Nil

Guidance: Drafters should be aware that the terms Review, Approve, Accept and CCP approval have specific meanings defined in the Attachment M, Glossary.

SOW clause 2.4.2 informs the Contractor of the range of possible actions that will be taken appropriate to each data item, as defined in the CDRL.



Draft SOW clause 2.4.3, Data Item Review.

Draft SOW clause 2.4.4, Data Item Approval.

Draft SOW clause 2.4.5, Data Item Acceptance.

Draft SOW clause 2.4.6, Data Items Delivered Under Contract Change Proposals.


2.4.3 Data Item Review



Purpose: To advise the Contractor of the meaning of data item Review, and to impose an obligation on the Contractor to respond to any review comments provided by the Commonwealth Representative (without transferring any responsibility or obligations for correctness to the Commonwealth).

Policy: Nil

Guidance: Drafters should consider which the actual period required to review each data item before inserting periods in the CDRL.







2.4.4 Data Item Approval



Purpose: To advise the Contractor of:

a. the meaning of data item Approval;

b. the Commonwealth’s obligations with respect to data items that are subject to Approval by the Commonwealth;

c. the scope of the Commonwealth’s rights with respect to non-Approval of data items.

To impose an obligation on the Contractor to respond to any notification of non-Approval of a data item.

Policy: Nil



Guidance: Drafters should consider the actual period required to review each data item for Approval before inserting periods in the CDRL. Factors to be considered include:

a. the size and complexity of the document;

b. whether a preliminary or draft version would already have been reviewed;

c. how frequently updates or new versions of the data item will need to be reviewed;

d. the need to involve external agencies or Approval authorities; and

e. conflicting requirements (eg, the need to review more than one data item concurrently).







2.4.5 Data Item Acceptance



Purpose: To place a contractual obligation on the Contractor to process data items, which are subject to Acceptance, in accordance with the provisions of this clause.

Policy: Nil

Guidance: Data items that are subject to Acceptance are subject to the Acceptance provisions in COC clause 6.9. These would normally include data items that form part of the Materiel System (eg, Technical Data updates) - not contract-management data.






COC clause 6.9, Acceptance.


2.4.6 Data Items Delivered Under Contract Change Proposals



Purpose: To ensure that the Contractor complies with the CCP procedure, contained in clause 10.1 of the COC, when required to do so under the CDRL.

Policy: Nil

Guidance: Data items will only be recorded in the CDRL with ‘CCP approval’ as the required action when the data item will form part of the contract as an Attachment (eg, the IP Plan and the Australian Industry Capability (AIC) Plan).





COC clause 10.1, Change to the Contract.


2.4.7 Data Item Updates



Purpose: To impose a contractual obligation on the Contractor to maintain the accuracy, completeness and currency of all data items delivered under the Contract in accordance with the CDRL.

Policy: Nil

Guidance: The Contractor is responsible for maintaining data items. Maintenance of a data item involves amending and updating the item to incorporate current information and data so that the data item is suitable for its intended purpose. Some updates will need to be Approved to authorise the Contractor to undertake activities that are different to those currently authorised. For example, the Contractor might identify the need to change the Training Support Plan to enable changes to training.

Drafters should consider the timeframe in which the Commonwealth can respond to proposals for changes to data items, and insert the appropriate time in the ‘Delivery Schedule’ column in the CDRL at Annex C to the SOW.

Drafters should consider the need for the Commonwealth to keep the Contractor informed of changes that will affect the Contractor’s maintenance of data items (eg, for the development of training courses), and make appropriate arrangements to ensure that the Contractor receives relevant information in the required timeframe.




2.4.8 Actioning of Data Items

Sponsor: PCSB and CASG Standardisation Office


Purpose: To advise the Contractor that any delay in actioning a data item caused by a delay of the Contractor is not a cause for a postponement claim.

Policy: Nil

Guidance: The Commonwealth determines its resourcing requirements based upon its obligations under the Contract. If a Milestone or Service involves the Review, Approval or Acceptance of a large package of data items, the Commonwealth will need to increase its personnel resources allocated to the task to deal with the additional work requirement.

In the past, contractors have been late in the delivery of some data items and then on time for subsequent data items – increasing Commonwealth workload. If the Commonwealth had not planned for this eventuality, it would have been consequently late in actioning the data items by the time required of it under the CDRL. Contractors would often claim, in these circumstances, that they were absolved from further compliance with their obligations under the Contract, which were contingent on the Commonwealth’s actions, until the Commonwealth had performed its obligation, or that they were entitled to postponement and postponement costs.

Clause 2.4.8 indicates that, where the Contractor is responsible for a delay in the schedule effecting or delaying the data item process, the Commonwealth may not be able to action the data items. The Commonwealth’s only responsibility, in



circumstances due to delay caused by the Contractor, would be to use reasonable endeavours to action the data items under the original timeframes, or where that fails, to action the data items when sufficient resources become available. In that situation, the Commonwealth needs to notify the Contractor with a reasonable estimate of when the data item is likely to be actioned (clause 2.4.8.2c.). Clause 2.4.8.3 specifically precludes the Contractor from claiming that the Commonwealth’s inability to action the data item (within the original timeframe) constitutes circumstances beyond its reasonable control for the purposes of COC clause 6.5.1c.. The Contractor may claim postponement, under clause 2.4.8.4, if the Commonwealth fails to achieve the revised action date, as notified, and this causes delay in other Contract-related activities (refer also to COC clause 6.5.1).

Users should note that this clause is not applicable if the Commonwealth has accepted a change to the delivery baseline through the Acceptance of a CCP that affects the schedule. In these circumstances, despite the Contractor being in delay based upon the original requirement to deliver a data item, the Contractor may still be compliant with the new requirement for delivery. The Commonwealth should consider carefully how CCPs affecting schedule will impact on its capacity to action data items within the timeframes required of it by the CDRL and, where the Commonwealth is unable to do so, the consequences for postponement claims, postponement cost claims and schedule recovery.






COC clause 6.3, Schedule Obligations.


2.5 Draft Data Items Included as Contract Annexes


Status: Optional. To be included if the Commonwealth requires certain draft data items to be included in the Contract and warranted by the Contractor.

Purpose: To identify the specific draft data items that are warranted by the Contractor under clause 1.4.2 of the COC, and to identify the actions that will occur on Approval of any subsequent deliveries of these draft data items under the Contract.

Policy: Nil

Guidance: Each tenderer will deliver a number of draft data items as part of its tender response (eg, draft plans that define the strategies, systems and processes to be followed under the Contract). COC clause 1.5, Entire Agreement, provides authority to the contract as the full extent of the agreement between parties; thus any communication between parties that is not captured in the Contract by ED, including draft data items, is excluded from scope. Attaching these draft data items provides a mechanism for capturing the tenderer’s offer in the resultant Contract. As such, drafters should only attach those draft data items for which there is benefit to the Commonwealth in having them attached to the Contract.

If, during contract negotiations (or during an ODIA phase), certain draft data items are updated by the tenderer and Approval of these data items is provided by the Commonwealth (on ED), then these Approved data items should not be attached to the resultant Contract (refer to the Note to drafters in this clause). Only data items that are not Approved by ED should be attached to the Contract through this clause and Attachment K.

Following Approval of an update to a data item that has been attached to the Contract (ie, for updates delivered after ED), clause 2.5.3 specifies that the



relevant data item shall be considered superseded and shall be withdrawn from Attachment K through an amendment to the Contract. This approach is required to avoid confusion as to which version of a data item applies to the Contract. Until the further versions of the data items are Approved by the Commonwealth Representative, the draft data items at Attachment K have applicability under the Contract, in accordance with the specific warranty provided by the Contractor under clause 1.4.2 of the COC. Drafters should note that data items for which prior Approval has been obtained (ie, at ED) do not need to be a warranted as suitable, because a Contract-ready version of the data item has already been delivered.

Clause 1.4.2 of the COC provides additional guidance on the issues associated with clause 2.5, and the two sets of guidance should be read together.

Drafters are to amend clause 2.5.1 to identify the specific data items that are subject to the Contractor’s warranty. Drafters also need to attach the draft data items in an annex (or multiple annexes) to Attachment K. Drafters should take particular notice of the Note to drafters in this clause.

Drafters are to update the CDRL to ensure that those data items for which Approval was provided prior to the ED are correctly annotated as such, in accordance with the Note to drafters.

Related Clauses: COC clause 1.4.2 addresses the warranty requirements for draft data items that are attached to the Contract.

COC clause 1.5, Entire Agreement, specifies that the Contract represents the “parties’ entire agreement in relation to the subject matter”.

Attachment K provides the repository for draft data items included as Contract annexes.


2.6 Phase In


Status: Optional

Purpose: To:

a. define the plans, methodologies, processes and activities that will be performed by the Contractor to ensure a coordinated Phase In of the required Services, including, where applicable, a smooth transition from the Commonwealth or the preceding acquisition or support contractor; and

b. where applicable, establish the ground rules for the Phase In of management responsibilities from the outgoing support organisations (ie, Commonwealth, contractor and subcontractors) to the Contractor.

Policy: Nil

Guidance: An incoming Contractor will generally not be able to provide a full support capability for the Products Being Supported at the time of Contract award (the one exception is when a Contractor has just re-won a contract that they were previously performing and which was re-competed). This occurs because the incoming Contractor (Support) must set up its elements of the Support System and adapt other elements of the existing Support System to meet its requirements (particularly in relation to interactions with the Commonwealth).

This could involve activities such as:

a. recruiting additional personnel with the required expertise;

b. cross-training and up-skilling personnel;



c. setting up its own Engineering Support capabilities for those Products for which it has engineering authority;

d. obtaining the necessary Authorisations and accreditations required by legislation or to demonstrate capability (eg, quality and TRA accreditation);

e. acquiring spares, consumables, S&TE, etc;

f. building new facilities and/or adapting existing facilities;

g. completing the negotiations and establishment of new subcontracts;

h. setting up the administration and management systems, including computer support; and

i. transferring Technical Data (eg, from the Contractor (Acquisition) or the outgoing support agency).

The period of time from when the Contractor starts to establish a support capability (often shortly after ED but delayed if combined with a Contract (Acquisition)) until it is first able to deliver some of the main Services under the Contract (eg, Maintenance Support, Supply Support, etc) is referred to as Phase In. The date from which Services can be provided is called the Operative Date (OD).

Phase In may be used to cover any situation, such as where the incoming Contractor (Support) will take over from:

a. an outgoing Contractor (Support);

b. a Contractor (Acquisition) that has provided initial support services;

c. a Contractor (Acquisition) as the Materiel System is delivered (ie, initial support services were not provided under the Contract (Acquisition)); or

d. from a Defence organisation supporting a system already in service.

After OD, the Contractor (Support) may continue to build up their support capability and capacity, starting new Services (eg, deeper maintenance and overhaul) and, perhaps, progressively establishing a capability at additional sites. The period following OD, which requires the Contractor (Support) to increase its capacity (and, in all likelihood, capability), is known as ‘ramp up’.

The following diagram illustrates the relationship between ED, OD, Phase In, Ramp Up and the mature level of support Services. This example represents a Contract (Support) that is linked to a Contract (Acquisition), as shown by the long period between ED and the start of Phase In.



Relationship between ED, OD, Phase In, Ramp Up

Related Clauses: COC clause 1.4, Operative Date

COC clause 1.11, Phase In

Draft SOW clause 2.7.2, Phase Out (of a Contract (Support) that is expiring)

DID-SSM-PHIP, which defines requirements for a Phase In Plan.


2.6.1 Phase In Plan


Status: Core (when Phase In is included in the Contract)

Purpose: To plan and implement an orderly process that establishes the initial capability and capacity of the Contractor (Support) in order to provide Services.

Policy: Nil

A Phase In Plan (PHIP) is used to define how the new Contractor (Support) will establish the capability and capacity, to provide the required Services, in the Phase In period leading up to the OD.

A draft PHIP may be requested in the RFT (clause 2 of Annex G to Attachment A to the COT – TDR G-2). If the outgoing Contractor (Support) is also the preferred tenderer, then a final PHIP may not be required, otherwise the PHIP would be finalised before Phase In activities start.

For in-service systems, tenderers will need information on how the Commonwealth or the outgoing contractor will wind down the provision of Services under the existing arrangement or contract. This information should be contained in the outgoing contractor’s Phase Out Plan (PHOP) or a Commonwealth Transition Plan for transition from Commonwealth-provided support. Where the Contract (Support) is linked to, or simply follows, a Contract (Acquisition) the Contractor (Acquisition)’s Contractor Transition Plan (CTXP) provides vital information for Phase In (and subsequent Ramp Up planning). The type of information contained in a PHOP is defined in DID-SSM-PHOP, while the requirements for a CTXP are contained in DID-PM-TRANS-CTXP (ASDEFCON (Strategic Materiel)).

Hence, for an in-service system, the final version of the PHIP would often be Approved by ED (ie, having been reviewed during negotiations and paid for in a




start-up payment). When linked to a Contract (Acquisition), the final PHIP version is likely to be scheduled to match the Contractor (Acquisition)’s transition planning.

If one was required, the Support Services Master Schedule (SSMS) for the current Contract (Support) would also be useful for tenderers when planning Phase In activities – particularly when stepping into a programmed maintenance cycle. A Contract Master Schedule, from the Contract (Acquisition) would be useful if the Contract (Support) were to follow a Contract (Acquisition).

Drafters should seek a draft PHOP from the outgoing contractor to support the development of the RFT for the new Contract (Support) (refer to guidance for clause 2.8.1), often about two years before the end of the existing contract. Where the Contract (Support) and Contract (Acquisition) are tendered together, it would be expected that the draft / outline CTXP and PHIP provided in the tender responses (if requested) would be consistent, even if two different contractors responded in a joint bid (ie, one acquisition and one support contractor).

If a PHOP from the outgoing contractor is not available, the Commonwealth should provide tenderers with information on what parts of the existing Support System will be made available to the incoming Contractor (Support), and how the outgoing contractor proposes to Phase Out their support activities.

Drafters should also consider the inclusion of lists of GFM, GFF, and GFS, that will be provided to the incoming Contractor because the availability of this information will affect the PHIP. Lists of GFM, GFF, and GFS are at Annexes A, B, and C respectively, to Attachment E. Obligations with respect to GFF are also to be included in the Contract via the facilities licence (at Annex D to Attachment I).

For a Contract (Support) linked to a Contract (Acquisition), there will typically be a period where the Contractor (Acquisition) is providing increasing quantities of Products requiring support (eg, as new Mission Systems are delivered), as illustrated in the preceding diagram.

Refer to the more detailed table on the next page to gain a better appreciation of how Transition, Phase In, Phase Out and Ramp Up are related. Note that the period of Ramp Up may be lengthy for contracts following a Contract (Acquisition) with a staggered production program, but could equally be very short or non-existent, for specialised contracts that include only one or two SSCCs (eg, OEM Engineering Support contracts). The following diagram also refers to the example situation where Phase In concludes at the OD, but this is not always the case.

Related Clauses: COC clause 1.4, Operative Date

COC clause 1.11, Phase In

Other Draft SOW clauses under clause 2.6

Draft SOW clause 2.8, Phase Out (of a Contract (Support) that is expiring)

DID-SSM-PHIP, which defines requirements for a PHIP


Period prior to Operative Date of Contract (Support)

Contract (Acquisition) Services provided by outgoing Contractor (Acquisition) working to a Contractor Transition Plan

Services dim inish regarding that particular

acquisition Product now transitioned* to the Contractor (Support)

Services cease regarding all acquisition

Products transitioned* to the Contractor (Support)

called Transition* period Services rem ain for Products still being acquired and for selected acquisition Products

already transitioned*, working to a Contrator Transition Plan

No Services provided by Contractor (Acquisition)

OR

Outgoing Contract

(Support)#

Services provided by outgoing Contractor (Support) working to a Phase-out Plan

Services dim inish regarding those Products

now transitioned* to the incom ing Contractor (Support)

Services cease regarding all Products

transitioned* to the incom ing Contractor (Support)

called Phase Out period(m ay be the latter part of an "off ram p" period)

Services rem ain for selected Products, working to a Phase Out Plan

No Services provided by outgoing Contractor (Support)

AND

Incoming Contract (Support)

No Services (other than those defined in the Operative Date clause) provided by incom ing Contractor (Support) but a Phase In Plan written and im plem ented

Service provision across all elem ents of the Contract (Support) by incom ing Contractor (Support) com m ences and ram ps up as

Products are transitioned* and Services com m ence and expand.W orking to a Ram p Up Managem ent Plan and the SSMP

Full services provided by incom ing Contractor (Support) working to the SSMP

called Phase In period called Ram p Up period called Full Service period

Period subsequent to Operative Date of Contract (Support)

* in this context, "transition" includes the acts of delivery and Acceptance, Services m ay have been provided to support V&V# use this selection for Services being handed over from the Com m onwealth, in which case a Transition Plan would be used

Operative Date (of incom ing Contract (Support))

Expiration Date (of Contract (Acquisition) or outgoing Contract

(Support))

Transition, Phase In, Phase Out and Ramp Up


2.6.2 Phase In Activities


Status: Core (when Phase In is included in the Contract)

Purpose: To obligate the Contractor (Support) and the Commonwealth to undertake Phase In activities in accordance with the Approved PHIP, in the context of the OD obligations and other applicable COC clauses.

Policy: Nil

Guidance: If Phase In is included in the Contract, then this clause is required to implement the Approved PHIP delivered under clause 2.6.1 and the applicable and specific clause(s) of the COC. The activities, defined and performed in accordance with the Approved PHIP require action by the Contractor (Support) and, generally, the Commonwealth for the provision of Technical Data and GFE, and sometimes GFF and training in Defence information systems.

The Phase In period is to conclude with the OD, when all the essential elements of the Contract (Support)’s initial support capability have been met and Services can be provided, as defined for the OD milestone in COC clause 1.4. If the building up of support capability and/or capacity is significant, and extends beyond the OD milestone, then Ramp Up under SOW clause 2.7 should be considered for inclusion in the Contract for the management and conduct of activities as the Contractor (Support) continues to build its support capability.

The fundamental characteristic of the OD is that it is the Milestone by which the Contractor (Support) must achieve the items listed clause 1.4 of the COC, which would normally include the Contractor (Support) having to prove that it has, by undertaking the activities in the Approved PHIP in accordance with this clause, established an adequate support capability. If the Contractor (Support) has not met all of the requirements the Commonwealth may, in accordance with the provisions of clause 1.4, provide for a delay to the OD from the planned OD, accept minor shortfalls, or terminate the Contract (Support) and claim liquidated damages. The drafter’s determination of the OD requirements in clause 1.4 of the COC, therefore, is critical.

Drafters should include this clause in the Contract without change.

Related Clauses: COC clause 1.4, Operative Date.

COC clause 1.11, Phase In.

Draft SOW clause 2.6.1, Phase In Plan.

Draft SOW clause 2.6.3, Phase In Register.

Draft SOW clause 2.6.4, Phase In Progress Reports.

Draft SOW clause 2.7, Ramp Up, for when activities extend beyond OD.

Draft SOW clause 2.8, Phase Out.

DID-SSM-PHIP, which defines requirements for a PHIP to define activities


2.6.3 Phase In Register


Status: Optional

Purpose: To define the implementation of and procedures for using the Phase In Register to capture the dynamic elements of the Phase In process, and to obligate the Contractor (Support) to implement and use this register.

Policy: Nil

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Guidance: The Phase In Register is intended to facilitate the implementation of activities and management of related issues that occur during Phase In. The Phase In Register is also used to capture risks in this early part of the Contract, often before the Risk Management Plan is Approved and the Risk Register established (in practice the Phase In Register may be recorded in the same tool as the Risk Register). Access to the register provides dynamic insight, for the Commonwealth, into the Phase In activities during this challenging phase.

While the clause is optional, it would be expected to be included in the majority of support contracts (except, perhaps, for the smaller contracts) and it may reduce the need for frequent Phase In Progress Reports.

The requirements for the Phase In Register are provided in the Approved PHIP.

No tailoring of this clause is required.

Related Clauses: COC clause 1.11, Phase In.

Draft SOW clause 2.6.1, Phase In Plan.

Draft SOW clause 2.6.2, Phase In Activities.

Draft SOW clause 2.6.4, Phase In Progress Reports.

DID-SSM-PHIP, which specifies minimum requirements for a Phase In Register to be defined in accordance with the PHIP


2.6.4 Phase In Progress Reports


Status: Optional

Purpose: To obligate the Contractor to submit Phase In Progress Reports to the Commonwealth.

Policy: Nil

Guidance: The submission of Phase In Progress Reports (PIPRs) allows the Commonwealth insight into the performance of the requirements in the Approved PHIP. This assures the Commonwealth that, should the Phase In activities not progress in accordance with the schedule, the Contractor is obligated to inform the Commonwealth of how the Contractor will recover the schedule slippage and will proceed with the remaining Phase In activities on time.

The requirements for Phase In Progress Reports are provided in the Approved PHIP.


Related Clauses: Draft SOW clause 2.6.1, Phase In Plan.

Draft SOW clause 2.6.2, Phase In Activities.

DID-SSM-PHIP, which specifies minimum requirements for Phase In Progress Reports to be defined in accordance with the PHIP.


2.7 Ramp Up


Status: Optional

Purpose: To define the plans, processes and activities that will be performed by the Contractor to ensure a coordinated Ramp Up of the Services.

Policy: Nil

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Guidance: The Ramp Up period begins at OD (ie, after Phase In) and continues until the level of capability and capacity needed for the provision of Services reaches a mature state. Ramp Up is a continuation of the process started under Phase In, but it is separated from the Phase In activities due to the difference in the Contractual obligations and conditions that apply before and after OD.

Ramp Up may be required in a number of instances, as follows:

a. The Contract (Support) may need Services to be provided at several similar locations; however, the OD is only based on successful support at the first location, with the assumption that the ramp-up of Services to the subsequent sites will be equally successful. In this first instance, the PHIP will be a guide to the ramp-up activities post-OD described in the Ramp Up Management Plan.

b. The Contractor (Support) may establish an initial capability to provide operational and/or intermediate levels of Maintenance, but because the first overhaul / depot / full cycle docking Maintenance activity may not occur for some years after initial delivery, Ramp Up may extend for several years beyond the end of the Contract (Acquisition). In this instance, Ramp Up activities may continue until the full support capability is established, which will also mark the end of Ramp Up.

c. The Contractor (Support) may be supporting elements of the Materiel System delivered into service from a Contract (Acquisition), with the OD clause only being relevant to the Acceptance of the first set of delivered Mission Systems / elements that require support. Subsequent increments in support would be required for subsequent deliveries of Mission Systems and, potentially, new Mission System roles that require support. Some of these increments will also be prerequisites to CASG Materiel Release milestones and Operational Capability states – for linked acquisition and support contracts, this is described in the ASDEFCON Linkages Module. If the acquisition is an Evolutionary Acquisition (EA), the Ramp Up can be further complicated because there may be multiple Milestones and stages, where the exact support requirements may not be defined well in advance.

The Ramp Up may be divided into several stages that start and/or finish with Milestones. Typically, a Milestone will be used to identify when the Contractor is ready to commence the provision of new type of Service, or Services at a new location, or stepped increases in Services, as described above.

The Ramp Up period also overlaps, but doesn’t have to exactly match, the Performance Implementation Period (PIP), as KPIs are likely to be introduced or changed as support capabilities and capacity expands. PIP stages are likely to depend upon Ramp Up Milestones but would normally follow them as the PIP stages are usually synchronised with Review Periods. Stages during the PIP (and the changes to the KPIs and Performance Payments) are defined through:

a. Annex C to Attachment B, Performance Payments, for adjustments to the At-Risk Amounts applied to PIP stages; and

b. Attachment P, Performance Assessment, for the changes in KPIs applicable to PIP stages.

Like Phase In, Ramp Up planning and activities can be informed by plans from a preceding contract; either the Contractor Transition Plan from a Contract (Acquisition), or a PHOP from the Contract (Support) that is being replaced.

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Ramp Up Milestones that will have Milestone Payments are to be listed in Annex A to Attachment B. Milestones that mark the commencement of an increase in the Recurring Services Fees are to be listed in Annex J to Attachment B, Schedule of Payments. Importantly, where Ramp Up Milestone appears in both annexes, the milestone names and criteria should be consistent. Information to populate both tables, when applicable, is to be provided in the tender responses in accordance with Annex D to Attachment A to the COT.

Related Clauses: COT Attachment A, Annex D, Price and Delivery Schedule.

COC clause 1.12, Ramp Up.

Attachment B, Annex A, Milestone Payments.

Attachment B, Annex J, Schedule of Payments.

Draft SOW clause 2.6, Phase In for managing the preceding period.

Draft SOW clause 2.8, Phase Out with respect to a preceding Contract (Support) that is being replaced.

DID-SSM-RUMP, which specifies requirements for the Ramp Up Management Plan.


2.7.1 Ramp Up Planning


Status: Core (when Ramp Up is included in the Contract)

Purpose: To plan the build-up of the support capability and capacity of the Contractor (Support) from an initial capability at OD until a mature level of support is achieved.

Policy: Nil

Guidance: The Ramp Up Management Plan defines the organisational responsibilities and activities for the Ramp Up period. If Ramp Up is included in the Contract, this plan is required to document the Ramp Up activities for both parties. Importantly, the Approved RUMP also defines the Milestone criteria for Ramp Up Milestones.

Support Services Management systems should be established at OD; hence, unlike Phase In, many of the ‘normal’ contract management tools should now be available and routine activities functioning, which reduces the need for Ramp Up-specific requirements. For example, the Risk Register (required by SOW clause 3.7) and the issues log (required by SOW clause 3.8) should both be functioning, meaning that Ramp Up risks and issues can be managed using these standard tools, unlike the separate Phase In register required under clause 2.6.3.

The activities to be defined in the Ramp Up Management Plan will often start as an extension to those defined in the Approved PHIP. The Ramp Up Management Plan will also include activities to be performed by the Commonwealth as well as the Contractor and Subcontractors. For example, the Commonwealth may need to provide additional GFM during Ramp Up stages, provide additional spares as Working Stock, provide access to GFF as Ramp Up starts at additional locations, provide further training in Defence information systems, and participate in Ramp Up Milestone review meetings, as applicable.

The Ramp Up Management Plan requires the Contractor to prepare a schedule of Ramp Up activities and Milestones. If clause 2.7 is included in the Contract the Ramp Up Management Plan must also define how the Contractor reports progress during Ramp Up,

Achievement criteria for Ramp Up Milestones are to be included in checklists annexed to the Ramp Up Management Plan. These are Approved by the Commonwealth Representative as part of the Approval of the plan. DID-SSM-RUMP describes the basic requirements to be addressed by the Milestone descriptions and criteria to be included in these checklists.

23



Related Clauses: Annex A to Attachment B, Milestone Payments.

Annex J to Attachment B, Schedule of Payments

Attachment P, Performance Assessment, with respect to modifying related KPIs during the PIP

Draft SOW clause 2.6, Phase In.

Draft SOW clause 3.8, Issue Management.

Draft SOW clause 10.4 , Performance Implementation Period.

DID-SSM-RUMP, which specifies minimum requirements for the RUMP.

DID-SSM-CSR, which specifies minimum requirements for the CSR, including the status of Ramp Up, when applicable.


2.7.2 Ramp Up Activities


Status: Core (when Ramp Up is included in the Contract)

Purpose: To obligate the Contractor (Support) and the Commonwealth to undertake Ramp Up activities in accordance with the Approved Ramp Up Management Plan.

Policy: Nil

Guidance: The Ramp Up Management Plan defines the activities to be performed during Ramp Up, including the requirements to be addressed at Ramp Up Milestones. Activities will need to be undertaken by the Commonwealth, Contractor and, most likely, some Subcontractors (as described above with rest to the Ramp Up Management Plan. In order to implement the Approved Ramp Up Management Plan, this is a core clause, but some subclauses are optional.

The first two subclauses require the Contractor to undertake the activities in the Approved Ramp Up Management Plan and for the Commonwealth to also meet its obligations. These are core to the implementation of Ramp Up.

The two clauses regarding Ramp Up Milestones should be included if there will be significant Milestones within the Ramp Up – this depends on the scope and nature of the expected Ramp Up. If Annex A or Annex J to Attachment B include Ramp Up Milestones (for either Milestone Payments or increments in the Recurring Services Fee), then these clauses should be included in the Contract. Note that these may be combined with other reviews in order to reduce costs, unless the Commonwealth decides that it is not appropriate to combine meetings.

Drafters need to determine the need for Ramp Up Milestones and included or delete the applicable clauses. Otherwise, tailoring of this clause is not required.


Annex J to Attachment B, Schedule of Payments.


DID-SSM-CSR, which specifies minimum requirements for the CSR, including the status of Ramp Up, when applicable.


2.7.3 Ramp Up Progress Reporting


Status: Optional

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Purpose: To obligate the Contractor to submit Ramp Up Progress Reports to the Commonwealth.

Policy: Nil

Guidance: Ramp Up Progress Reports (RUPRs) provide the Commonwealth with insight into the progress of Ramp Up activities, which should be conducted in accordance with the Approved RUMP, and the achievement of requirements necessary to establish the full scope of Contractor support capabilities and capacity. Should Ramp Up activities not progress in accordance with the schedule, the Contractor is also obligated to inform the Commonwealth of any shortfalls and how the Contractor will recover the situation.

This clause is optional because the Contractor should report on Ramp Up progress as part of its reporting of all activities within the CSR. Accordingly, if not required the clauses (ie, both options) below the heading can be deleted and replaced with a single “Not used”.

If specification of reporting is required, two options are possible. In both cases the scope of reporting is planned through the Approved RUMP, allowing the Contractor identify reporting requirements suitable to the individual Ramp Up program. Option A requires that Ramp Up progress is addressed in the CSR, however, specific requirements for inclusion in the CSR are defined in the Approved RUMP. Option B allows for separate RUPRs to be delivered in accordance with the CDRL (ie, so that they can delivered on a different schedule to the CSR), and the requirements to be addressed in these reports are specified in the Approved RUMP. Refer to DID-SSM-RUMP for the planning of reporting requirements for each option.

Drafters need to determine if the clause is not required (and simply depend on the CSR without further explanation), if explanation of what must be included in the CSR is required (Option A), or if separate RUPRs will be required (Option B). Drafters should also consider the number and frequency of Ramp Up Milestones expected to be included in the Contract, as the evidence submitted to achieve Ramp Up Milestones, and associated review meetings, may eliminate the need for separate RUPRs.


Annex J to Attachment B, Schedule of Payments.


DID-SSM-CSR, which specifies minimum requirements for the CSR, including progress against Contractor activities and Contract status.


2.8 Phase Out

2.8.1 Phase Out Plan


Status: Optional

Purpose: To define the plans, methodologies, processes and activities that will be performed by the Contractor to ensure a coordinated Phase Out of the Services, and a smooth transition to an incoming contractor or withdrawal from service of the Materiel System, as applicable.

Policy: Nil

Guidance: The Phase Out Plan (PHOP) is the principal document used to define the Contractor’s methodologies, processes and activities for meeting the Phase Out requirements of the Contract. It is used by the Commonwealth to develop its transition program to ensure a coordinated and smooth transition from the current Contractor (Support) to the new (incoming) contractor or for the withdrawal from Service of the Materiel System. The PHOP may also be used to inform tenderers,

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for the new support contract, of how the existing Contractor (Support) will Phase Out, which assist the tenderers to draft their proposed PHIPs.

Phase Out activities can occur over a relatively long or short period. For example, prior to the withdrawal from service of a system, Maintenance Services can scale down years in advance while operations continue to use serviceable stock (ie, there may be no benefit in paying for Maintenance only to be left with a warehouse of serviceable Repairable Items (RIs) after the system has been retired). By contrast, hand-over from one contract to another would want to have all RIs serviceable, and as short a period of disruption as possible, By default the PHOP is required before the ‘Off Ramp Date’ as specified in the Contract (eg, two years before Contract end). This allows for the preparation and receipt of the PHOP to ensure that Phase Out information can be provided, as part of the RFT, to tenderers for a follow-on support contract. Timing for the delivery of the draft and final PHOPs should be considered when planning and tailoring the Contract, and the CDRL amended accordingly.

Drafters should include clause 2.8 in the draft SOW whenever the reduction in scope of Services must be planned. The appropriate timing for delivery of the draft and the final PHOP must also entered into the CDRL.

Related Clauses: COC clause 13, Phase Out.

COC clause 13.2, Objective of Phase Out.

COC clause 13.3, Transition to a New Contractor.

COC clause 13.5, Contractor's Obligations on Withdrawal of Products from Service.

Draft SOW clause 2.6, Phase In (of new / incoming Contract (Support)).

Draft SOW clause 2.8.2, Phase Out Activities.

DID-SSM-PHOP, which specifies requirements for a Phase Out Plan.


2.8.2 Phase Out Activities


Status: Optional

Purpose: To obligate the Contractor (Support) to act on the Approved PHOP, in the context of the applicable COC clauses.

Policy: Nil

Guidance: If clause 2.8.1 is included, then this clause must also be included in order to implement the Approved PHOP under the specific conditions of COC clause 13.2.

Drafters may include additional sub-clauses within this clause to specify any unique Phase Out requirements for the Products Being Supported.

Related Clauses: COC clause 13.2, Objective of Phase Out.



Draft SOW clause 2.8.1, Phase Out Plan.


2.8.3 Phase Out Register


Status: Optional

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Purpose: To define the implementation of and procedures for using the Phase Out Register to capture the dynamic elements of the Phase Out process, and to obligate the Contractor (Support) to implement and use this register.

Policy: Nil

Guidance: There are no specific requirements for reporting during the Phase Out period, except as covered by reports elsewhere in the Contract (eg, in CSRs). The Phase Out Register is intended to provide dynamic insight to the Commonwealth during this challenging phase, and the information included in the register would depend on the nature of the Services and the activities within the Approved PHOP. For example, the register would record the ending of individual support functions (no longer provided to the Commonwealth), the return of GFE or the departure from GFF, as related support processes were wound down. As such, while the clause is optional, it would be expected to be included in the majority of support contracts (except, perhaps, smaller contracts).

The requirements for the Phase Out Register are provided in the Phase Out Plan.


Related Clauses: COC clause 13.2, Objective of Phase Out.



Draft SOW clause 2.8.1, Phase Out Plan.


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3. SUPPORT SERVICES MANAGEMENT


Status: Core

Purpose: To define the management requirements for the Contract (Support).

Policy: Nil

Guidance: The Support Services Management clause is required in every Contract (Support). Drafters should tailor the other SOW clauses to establish the particular Service requirements in clauses 4 to 8 and the DSDs, and then assess the appropriate level of management required through SOW clause 3.

Related Clauses: All other clauses within the SOW, DSDs and SOW Annexes.


The following diagram shows the data items linked to Support Services Management and SOW clause 3 and the associated DIDs.

Support Services Management SOW Structure

Note that the AIC Plan and the IP Plan (shown above) form part of the planning suite, but must remain separate from the SSMP because these two plans become

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attached to the Contract at Attachments F and G, respectively. Separately, the Quality, Environmental Management and Health and Safety Management Plans are requested under SOW clauses 11.2, 12.2 and 12.3 respectively, but may be rolled-up into the SSMP, hence they are shown for completeness.

3.1 Support Services Program Objectives


Status: Core

Purpose: To set out the overall objectives of the Contract (Support) to establish a reference point underpinning the activities conducted under the Contract (Support).

Policy: Nil

Guidance: The Support Services Program Objectives listed in the draft SOW are generic and are expected to apply to a wide range of contracts. Drafters should add objectives that are applicable to the specific Contract (Support). The aim is to give readers, especially the tenderers and Contractor (Support), a clear statement of what outcomes the Contract (Support) is trying to achieve.

Drafters should be aware of the global objectives for the Contract (Support) that are specified in clause 1.2.2 of the COC. Drafters should ensure that the objectives identified under this clause 3.1 are consistent with the global objectives identified in the COC. Where the Contract also includes KPIs, which should be linked to Defence-required Outcomes, this clause should also be consistent with those Outcomes.

Drafters need to consult with relevant stakeholders to ensure that all relevant objectives are reflected in the statement of objectives so that ‘fitness for purpose’ is clear without being overly detailed.

Related Clauses: COC clause 1.2.2 sets out the objectives of the parties entering into the Contract.

Attachment P, where Defence-required Outcomes are identified with respect to the performance measurement regime.


3.2 Support Services Planning


Status: Core

Purpose: To obtain the over-arching planning documents from the Contractor that describes how the Contractor intends to manage the provision of Services and other work required under the Contract.

Policy: Nil

Guidance: This clause defines the over-arching plans and other documents that are required to demonstrate that the Contractor has the management processes and capabilities necessary to manage the Contract successfully.

Support contracts cover a wide range of work and contract values, which complicates the specification of an optimal set of plans for the management of the required Services because the same set of plans will not suit all contracts. The Services that may be provided under a support contract could cover:

a. a range of environments (maritime, land, aerospace and electronic);

b. the different levels of support (eg, for Navy, Operational, Intermediate and Depot), or combinations of these;

c. different types of Services, including management, Operating Support, Engineering, Maintenance, Supply and Training;

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d. a wide range of technical complexities, from software support, support of combat systems, and complete platforms, such as aircraft, to warehousing Services, and relatively simple routine Maintenance; and

e. a range of regulatory requirements.

In addition to these, support contracts can vary widely in size, the use of subcontractors, and in the locations where work is performed. All of these have an impact on the arrangements for the planning and management of the work.

For each contract, the Commonwealth will be willing to accept a particular level of risk, and will have specific corporate governance requirements. These are reflected in the requirement for a particular level of visibility into the Contractor’s management processes through reporting and reviews.

The level of visibility required is achieved by having the tenderer describe in various plans specified in the RFT, and subsequently under the Contract, how it proposes to manage the various aspects of the work. Drafts of key plans are provided to the Commonwealth with the tender responses. Plans are then further developed by the Contractor during the early stages of the Contract and submitted for Approval (unless the plan is one of the few Approved at ED). Following Approval, the Contractor is then required to work in accordance with the Approved Plans. This is the approach used in all of the ASDEFCON materiel acquisition and support templates, including ASDEFCON (Support).

Consistent with the ASDEFCON objectives (refer ASDEFCON Handbook Philosophy Volume), drafters should not ask for plans that will not be used during the Contract period (ie, ‘shelfware’) and should only ask for plans that are necessary to achieve the required level of visibility of the Contractor’s processes. This will depend on factors such as the complexity and critical nature of the work, the level of acceptable risk, and on TRF and corporate governance requirements.

At the tendering stage, tenderers might be asked to provide only a limited number of draft plans, or sections of plans. These should be detailed enough to enable the tendered plans to be evaluated and competing tenders compared. Following source selection, these plans may need to be further developed by the preferred tenderer (eg, under an ODIA phase or during contract negotiations), with the SSMP and the other plans deemed as most important (for management or regulatory approvals in the initial stage of the Contract) being finalised for Approval at the ED.

If, however, the RFT is a combined RFT for both acquisition and support, the number of support plans obtained as part of the tender response will be significantly reduced and the finalisation of the plans will not occur until OD (refer to Annex B for information on the implications associated with a combined RFT).

A full set of plans (excluding the Efficiencies Implementation Plan (EIP), AIC and IP Plans) required for a ‘complex’ Contract could be as shown in the following diagram, which illustrates a hierarchy of plans.

High-level plans may refer to sub-plans, which, in effect, form parts of those higher-level plans. Lower-level plans may be ‘rolled-up’ or incorporated into higher-level plans where a stand-alone plan is not warranted. This might occur because, for example, the work required in the area covered by the lower-level plan is limited in scope or is a relatively small amount and therefore does not require a stand-alone plan to describe the relevant management arrangements.

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Roll-up of Support Services Planning Documents

The approach in ASDEFCON (Support) is to allow drafters to roll-up plans into the next higher-level plan wherever this will enable the number of plans to be reduced while preserving adequate visibility of the Contractor’s processes. As a minimum, tenderers would be required to propose a SSMP. This is the top-level management plan for the contract and all other plans are subordinate to it.

In some cases, plans must remain as stand-alone documents. For example, some of the key plans that govern particular Services (eg, Engineering and Maintenance) may be required by the TRAs to be stand-alone plans for review purposes. Therefore, such plans should not be rolled-up. Drafters will need to determine and specify which plans must remain stand-alone, including those that are mandatory.

The Phase In Plan and the Phase Out Plan should always be requested as stand-alone plans because they only apply for a relatively short period of the Contract (Support). The Quality Plan may preferably be provided stand-alone to simplify accreditation. The AIC Plan and IP Plan, also submitted with the tender responses and finalised by ED, are stand-alone from the SSMP and attached to the COC.

Drafters have some flexibility to decide what is to be covered in the plans. To ensure that tenderers address issues important to Defence, drafters should specify in the RFT those issues that the tenderer and, subsequently, the Contractor must address. This should be done in the draft SOW and in relevant DIDs called up by the CDRL. Drafters may need to tailor the draft SOW clauses and the clauses in the DIDs to cover the particular Contract requirements.

Drafters need to:

a. determine what plans are required, and what plans must be stand-alone documents;

b. determine what draft plans are required at the tender stage, and the extent and timeframe for their further development following selection of the preferred tenderer;

c. consider how the proposed plans submitted as part of the tenders will be evaluated; and

d. tailor relevant DIDs and SOW clauses to reflect these requirements.

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3.2.1 Support Services Management Plan


Status: Core

Purpose: To define the Commonwealth requirements for management of the Services by the Contractor and to produce a plan for efficient management of the required Services at an acceptable level of risk.

Policy: Nil

Guidance: The Support Services Management Plan (SSMP) is the top-level plan that describes the individual plans and processes and how they fit together to form a totally integrated management system for all aspects of the Services. Tenderers must prepare and deliver a draft SSMP as part of their tenders. The draft SSMP would then be negotiated with the preferred tenderer. Plans may be developed to the stage that they would be Approved immediately following Contract award (and these plans are identified in the CDRL as requiring Approval of the final version at ED).

Drafters may wish to include a requirement for the Contractor to flow down the requirements of the Approved SSMP to Approved Subcontractors. This would depend on factors such as the likely size or proportion of work that will be performed by Approved Subcontractors, how critical this work would be to the provision of Services, and the complexity of the work.

DID-SSM-SSMP is structured to allow some of the subordinate plans to be rolled-up into the SSMP without modification to the DID. Conditional clauses identify that if the SOW states a particular planning function is to be addressed through the SSMP, instead of specifying a stand-alone plan, then the SSMP shall address that function. The SSMP description of the requirements for rolled-up subordinate plans will often be reduced from the DIDs describing each of these plans, as there is little point to rolling up full-sized plans to create one large unmanageable plan. Accordingly, the SSMP may need to be amended if more specific information is needed for a rolled-up plan within the SSMP.

Related Clauses: All clauses referring to the SSMP, including those clauses relating to other management plans that can be potentially rolled-up into the SSMP.

Draft SOW clause 3.5, Subcontractor Management.

CDRL Line Number MGT-100 (for SSMP).

CDRL Line Numbers for plans rolled-up into the SSMP, which must be deleted.

TDR G-1 of the COT, Support Services Management.


3.2.2 Support Services Master Schedule


Status: Optional

Purpose: To:

a. describe the Contractor’s planned sequence of activities, milestones and decision points to enable the objectives of the Contract to be met; and

b. define the status of scheduled Service events, comparing the current delivery plan for these events with the contracted schedule.

Policy: Nil

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Guidance: A Support Services Master Schedule (SSMS) is likely to be required for most medium and larger sized contracts, even if the SSMS will be a fairly simple schedule. The SSMS can provide assistance with resource allocation and availability, scheduling of activities, and financial planning. The SSMS may be referred to in various DIDs for management plans (eg, if a Contractor Engineering Management Plan (CEMP) requires a schedule, it must be consistent with the SSMS).

The SSMS should be a stand-alone document because it is likely to change regularly with schedule updates over time.

The Contract may require sub-schedules for separate parts of the work. These may be stand-alone schedules (which must be consistent with the SSMS). The SSMS should show Milestones and major activities that are scheduled in more detail in sub-schedules. Requirements for sub-schedules dealing with specific Services should be specified as part of the SOW clauses dealing with that requirement. In general, this would be included in a DSD.

The SSMS is a dynamic document, which must be updated by the Contractor at regular intervals to show the current status of scheduled events. The frequency of updates will depend on factors such as whether the work is performed on a regular basis or relatively intermittent and whether or not the provision of the Services is time-critical.

The SSMS and other sub-schedules may be developed easily and effectively using proprietary software tools such as Open Plan Professional or Microsoft Project. Defence does not have a preference for a particular software package. If drafters express preference for a particular software package, drafters should take care that this does not unfairly discriminate against some tenderers.

If the preferred tenderer proposes a scheduling software package in its tender response that is not used by the Commonwealth, the CASG support agency should assess this alternative and discuss the issue with the preferred tenderer during Contract negotiations. Depending upon the outcomes of those discussions, clause 3.2.2.4 may need to be amended to accord with the agreed outcomes. The tendered price may also need to be amended accordingly.

Related Clauses: Individual management plan DIDs may refer to an SSMS.

CDRL Line Number MGT-110 (for the SSMS).

DID-SSM-CWBS, which specifies requirements for a CWBS which is often used as a basis for scheduling.

DID-SSM-SSMS, which specifies the requirements for the SSMS.

TDR E-3 of the COT, Draft Support Services Master Schedule.


3.2.3 Contract Work Breakdown Structure


Status: Optional

Purpose: To obtain a structured breakdown of the activities that the Contractor proposes to perform, including work defined by the SOW, to meet the requirements of the Contract.

Policy: Nil for use of a CWBS for support.

Guidance: The Contract Work Breakdown Structure (CWBS) provides the mechanism for decomposing the scope of work that the Contractor is required to perform. The CWBS assists with understanding the methodology being employed by the Contractor to meet the requirements of the Contract because it shows the planned decomposition of the work, resource allocations, responsible entities, etc. Where a CWBS is used, the Price and Payment Schedule should be derived from this

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Drafters should be familiar with DEF (AUST) 5664A, Work Breakdown Structures for Defence Materiel Projects, which provides guidance for the development and use of WBSs for Defence Materiel projects; however, it is not as well suited for defining a CWBS for a support contract.

There is no equivalent to DEF (AUST) 5664A for use in a support context or a standard CWBS DID for use under a support contract. Instead, the DID for the CWBS links to the breakdown of the Recurring Services identified in the Price and Payment Schedules in Attachment B to the Contract.

The standard approach used in the ASDEFCON suite is based on Defence producing a draft Contract Summary Work Breakdown Structure (CSWBS) that forms part of the RFT. TDR E-2 of the COT provides a default CSWBS, which is based around the structure of the draft SOW; however, it does not provide the associated dictionary definitions for the individual WBS elements. In developing their own CSWBS, drafters must ensure that the draft CSWBS and the draft SOW are consistent, and must also provide the applicable dictionary definitions for each of the WBS elements.

Drafters may choose to not include a separate CWBS in the draft SOW and to simply include their CSWBS directly into the Price and Payments Schedules in Annex D to the COT to provide the framework for each tenderer to provide its price breakdown. This has the advantage of eliminating the need for a separate document; however, it removes one of the key insight documents that can be used by the Commonwealth over the life of the Contract to assist with assessing price changes (eg, in response to changes of scope). As such, it is recommended that a CWBS be included in all but the smallest support contracts.

Related Clauses: CDRL Line Number MGT-120.

DID-SSM-CWBS, which specifies requirements for a CWBS.

TDR E-2 of the COT, Draft Contract Work Breakdown Structure and Contract Work Breakdown Structure Dictionary.


3.2.4 Surge


Status: Optional

Purpose: To impose an obligation on the Contractor to plan for managing a Surge in the requirements of / demand on the Contract and to manage the Surge requirements in accordance with that plan.

Policy: Nil

Guidance: Surge is defined as a short to medium-term change to the ROE, and is categorised into two types: Exigency and Contingency. Exigency is the urgent demands of a particular occasion. An Exigency, under ASDEFCON (Support), is considered to have a definable increase in ROE for a forecast duration, such as a significantly increased ROE for a military exercise. A Contingency is a chance event that is conditional on something uncertain. A Contingency, under ASDEFCON (Support), is considered to have a significant but undefinable increase in ROE for an unknown duration, such as a conflict, peacekeeping operation, or civil emergency.

Drafters should refer to Attachment M for the definitions of Surge, Exigency and Contingency, which need to be tailored to suit the requirements of the particular contract. Drafters should be aware that, in adjusting these definitions, Defence is providing the baseline against which the Contractor determines the type, size and cost of the Surge capacity required.

The definition for Exigency should be consistent with the ROE description. For example, if the ROE includes a defined minor exercise every year, then the defined exercise should not be repeated in the definition of Exigency (the required capacity is already paid for within the baseline ROE). Exigency requirements might also be

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expressed as increased availability of the Mission System (eg, for a Patrol Boat fleet, the Exigency requirement may be an additional 50 ‘at sea’ days/month).

If possible and useful, natural limits within the system should also be used to identify limits to Contingency. For example, there is no need to pay a Contractor to have spare systems available if Defence would run out of trained operators before that spare capacity could be used.

Drafters should consider Surge as both an increase in normal workload (both routine and ad hoc) to support an increase in operations and a broadening of skills/work performed to cover unforeseen (ad hoc) work, such as battle damage or accidental damage repairs. Possible solutions to meet Surge requirements might be for the Contractor to:

a. have reserve capacity standing and available (not particularly efficient);

b. be able to switch capacity from other activities such as civil work or other Defence work;

c. call on Subcontractors;

d. implement alternative DSDs or procedures (eg, changed procedures for Contingency Maintenance);

e. expand facilities or relocate; and/or

f. expand operations by changing to shift work or, in the longer-term through additional recruitment.

Where the Surge requirements are significant enough or critical to the operational need, the Contractor should be required to provide a Surge Management Plan (SMP) to describe how the Surge requirements will be met.

In tendering for the Services, Exigency requirements will often need to be included in the tendered pricing to ensure that military exercises and other predictable increases in ROE can be met. Being foreseeable, Exigencies may be provided as a Task-Priced Service, if requested and included into the Task-Priced Services table of Attachment B. Alternatively, they may be conducted as an S&Q Service if their occurrence is too infrequent to determine a firm price. Note that, against the current definition of Exigency, the Contractor will be required to maintain ‘spare capacity’, which would be included in the Contract price.

Contingency requirements, being related to an unknown ROE, are less easy to evaluate, and the SMP will provide more or less of an assessment of the Contractor’s capability to increase its work capacity. Being of unknown scope, the Contingency element of Surge must be undertaken as an S&Q Service.

Drafters should ensure that both foreseeable Surge events (ie, Exigency) and unforeseeable Surge events (ie, Contingency) are covered, where appropriate, in specifying the Surge requirements. The parameters of Contractor-provided support during a Contingency are reasonably unknowable in advance (but essential when a Contingency occurs); hence, broad provisions need to be included in this area to provide a basis for tenderers and, subsequently, the Contractor to develop their responses.

For Contracts that are not directly affected by a Surge, this clause may not be required and the drafter can replace the sub-clauses with a single clause of ‘Not used’.

If Surge, or at least the preparation for it, is a requirement of the Contract then planning is a core requirement. The drafter is to decide on the type of Surge Management Plan, either stand-alone or embedded in the SSMP, and select from the core options in the draft SOW clauses accordingly.

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Related Clauses: Attachment M, Glossary, contains definitions of Surge, Exigency and Contingency.

Draft SOW clause 2.2, Rate of Effort.

DID-SSM-SMP, which defines the requirements for an SMP.

DID-SSM-SSMP, for the SSMP which allows for the inclusion of Surge planning if a stand-alone SMP is not required

CDRL Line Number MGT-1600.

TDR G-3 of the COT, Surge.


3.3 Quoting for Survey and Quote Services


Status: Core

Purpose: To:

a. coordinate the management of the S&Q Services required for multiple SOW and DSD clauses;

b. require the Contractor to deliver a justified account of the proposed work, costs and the impact of undertaking S&Q Services, for evaluation by the Commonwealth Representative; and

c. isolate the management costs of preparing quotes, prior to approval, from the actual performance of the S&Q Services.

Policy: Nil

Guidance: SOW clause 2.1.3 states that, “Unless otherwise expressly stated in this SOW (including Detailed Service Descriptions), all Services are Recurring Services and are included within the firm-priced portion of the Contract Price. Services to be provided as either S&Q Services or Task-Priced Services are indicated as such within each clause.”

This clause 3.3 is required for those work activities under the SOW that will require the use of S&Q Services, in accordance with COC clauses 3.14 and 3.16, and the rates defined in Annex E of the Price and Payment Schedule at Attachment B. All ASDEFCON (Support) contracts will require these provisions; if a contract is simple enough so that all of the required work can be fully defined prior to contract signature, then ASDEFCON (Support Short) may be a more suitable template. Even if a contract is well defined, this clause and other S&Q provisions are included for risk mitigation, just in case an unexpected need for S&Q Services arises later in the Contract.

Clause 3.3 operates in conjunction with the COC clauses and DID-SSM-S&Q to define specific requirements associated with the provision of requests and quotations for S&Q Services.

ASDEFCON guiding principles8 recognise that a firm-priced contract requires a firm (or bounded) scope to enable the Contractor to calculate expected work effort with minimal risk (which would be passed back to the Commonwealth as increased cost). However, the ASDEFCON (Support) templates recognise that in many cases it is not possible to scope all activities that will be required in advance of signing the contract, thus provisions for S&Q Services, within the defined terms of the Contract, will almost always be required.

8 Refer ASDEFCON Handbook Philosophy Volume.

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Related Clauses: Draft SOW clause 2.1.3 (Services are recurring unless stated otherwise).

COC clause 3.11, Ad Hoc Services.

COC clause 3.12, Task Priced Services.

COC clause 3.13, Survey and Quote Services.

COC clause 3.14, Pre-Authorised Ad Hoc Services.

Annex E to Attachment B, Price and Payments Schedule.

TDR D-1 of the COT, Price and Delivery Schedule, Tables D1-4 and D1-5.

DID-SSM-S&Q, which specifies requirements for S&Q requests and quotations.


3.3.1 Survey and Quote Process


Status: Core (if clause 3.3 is included)

Purpose: To:

a. identify the Commonwealth Representative as the authority for seeking and approving S&Q Services, and

b. set out the process for the Contractor to follow when seeking to initiate S&Q Services.

Policy: Nil

Guidance: Drafters must include the first subclause if clause 3.3 is selected. The second subclause is required if either Task Priced Services or Pre-Authorised Ad Hoc Services will be permitted. In the unlikely event that a contract will not include Task Priced Services or Pre-Authorised Ad Hoc Service, the second clause may be deleted.

The first subclause identifies the Commonwealth Representative as the only Commonwealth person authorised to Approve S&Q Services. This is essential as Approval will partially extend the work and cost of the Contract.

The need for S&Q Services can occur when the Contractor is conducting scheduled Maintenance inspections and discovers the need for repairs. The purpose of inspections is usually to find what additional repairs are required, but the repair itself remains beyond the scope of the inspection. With complex systems, it is common for many minor repairs to be required. These repairs can be included as part of Recurring Services (with commensurate risk premiums) or can be handled as either Task Priced Services or Pre-Authorised Ad Hoc Services.

In many instances, Task Priced Services will not have been foreseen in advance; hence, drafters should consider the inclusion of Pre-Authorised Ad Hoc Services, COC clause 3.14, such that the Contractor can apply these provisions to avoid unnecessary delays in obtaining the Commonwealth Representative’s Approval for many minor tasks.

In this light, the second subclause identifies the conditions that the Contractor must follow before seeking the Commonwealth Representative to Approve additional S&Q Services.

Related Clauses: Attachment B, Price and Payments Schedule.

COC clause 3.11, Ad Hoc Services.

COC clause 3.12, Task Priced Services.

COC clause 3.13, Survey and Quote Services.

COC clause 3.14, Pre-Authorised Ad Hoc Services.

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Other sub-clauses within draft SOW clause 3.3.

DID-SSM-S&Q, which specifies requirements for S&Q requests and quotations.


3.3.2 Survey and Quote Work Plans



Purpose: To:

a. set out the requirements for scoping Survey and Quote (S&Q) Services;

b. set out the Commonwealth’s minimum requirements for a work plan for undertaking S&Q Services; and

c. provide a mechanism to ensure that sufficient appraisal of surveyed work requirements can be undertaken to determine if value for money will be achieved if the quote is Approved.

Policy: DPPM (in relation to value for money)

Guidance: Drafters must include this clause if clause 3.3 is selected.

Drafters should not amend this clause, as it lays out the Commonwealth’s minimum requirements for a work plan associated with an S&Q Service.

Related Clauses: COC clause 3.13, Survey and Quote Services.

Other sub-clauses within SOW clause 3.3.

DSD-ENG-SERV, which includes additional requirements for work plans supporting Major Changes.

DID-SSM-S&Q, which specifies requirements for S&Q quotations that include work plans.


3.3.3 Adverse Impact of Survey and Quote Work



Purpose: To set out the mechanism by which any adverse impacts of S&Q Services can be identified, so that the Commonwealth Representative can take appropriate action.

Policy: Nil

Guidance: Drafters must include this clause if clause 3.3 is selected.

The Contractor is required to advise the Commonwealth Representative of any expected or potential adverse impact of undertaking the S&Q Services. For Scenario #4 type contracts (refer Annex A to this SOW Tailoring Guide), this may be as simple as a delay in the usual turnaround of RIs (and the ASDEFCON (Support Short) template may be more appropriate at this level). For Scenario #1 type contracts, this may include a reduction in capability and a reduction in the achievement of performance measures (with some relief or adjustment to required performance necessary, and carefully planned).

Related Clauses: COC clause 3.13, Survey and Quote Services.

Other sub-clauses within Draft SOW clause 3.3.


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3.4 Support Services Communication Strategy


Status: Core

Purpose: To define formal communications between the Commonwealth and the Contractor, and to provide the Commonwealth with adequate visibility of the Contractor’s management processes and procedures, and performance in the provision of Services against the requirements of the Contract.

Policy: Refer to subclauses.

Guidance: Although different contracts will select from and use common reports and reviews, the communications strategy can be very different from one contract to the next. The communication strategy clauses were developed to give drafters maximum flexibility for determining how often and how much information is needed from a Contractor through reports and reviews. This clause is not independent of other clauses, as the communication strategy also considers the reviews and reports required for clauses 4 to 8. The following diagram illustrates the key concepts and tailoring options for reports and reviews.

ASDEFCON (Support) uses a single CSSR for general reporting in regard to the provision of Services – components of the CSSR cover each of the key Service areas (ie, the SSCCs) and these can be requested and delivered separately (via the CDRL).

The Contract Status Report (CSR) provides the avenue for commercial reporting. The SSVM and Performance Measurement Report (PMR)(a portion of the CSR), report performance against Performance Measures and the resulting commercial considerations (eg, KPI performance and performance payments), respectively.

In general, a report may be delivered without the need for a formal review meeting to discuss its contents. However, a report would generally precede and provide necessary information for discussion at a formal review when one is held. For example, the Maintenance Support component of the CSSR could be delivered monthly, but a Maintenance Support Performance Review (MSPR) meeting may only need to be held every three months.

When two or more reviews are to be held at approximately the same time they should be combined for efficiency, if it is practical to do so. The Combined Services Performance Review (CSPR) encourages this and some or all of the key Service areas may only ever be discussed as part of a CSPR. For example, a 6-

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monthly CSPR could include every second 3-monthly MSPR and the review of three other SSCCs, while the last SSCC may only need to be addressed annually, at every second CSPR.

Reports and reviews are generally divided along commercial and Service-oriented lines. The separation of commercial discussions (eg, relating to financial payments and compliance with the COC) from discussions regarding the technical aspects to the provision of Services, is generally considered to be good practice. For ease of management and for attendees going to both meetings, it may be possible to schedule Service-related discussions (eg, a CSPR) in the morning and commercial discussions (eg, a Contract Performance Review (CPR) and/or a Performance Assessment Review (PAR)) in the afternoon.

Clauses requiring the delivery of individual components of the CSSR are included in the SOW for each of the key Service areas (ie, clauses 4.2, 5.2, 6.2, 7.2 and 8.2). These are Core if the applicable Service is required (ie, some level of reporting is required for governance purposes). Related reviews (ie, clauses 4.3, 5.3, 6.3, 7.3 and 8.3) are also Core, and tailoring allows some or all of these reviews be rolled-up into the CSPR, held in accordance with SOW clause 3.4.2.

For high-activity Services, lower level progress reports and progress reviews may be added to the draft Contract. There is no template DID for progress reports as these will be contract-specific and must be developed by the drafter or in the Contractor’s plans. Engineering Services for Major changes will also include system reviews to manage Engineering Change Proposals (ECPs) – these reviews are requested through the Engineering DSDs and informed by the ‘review package’ (eg, specifications and design documents).

Drafters should note that the Commonwealth Asset Stocktaking Report (CASR) is a separate part of the CSSR that can be scheduled separately from the rest of the CSSR. This allows the CSSR to report on Services at a frequency tailored by the drafter, while the CASR must be delivered 3-monthly, as required by policy.

To accommodate expedient processing of Performance Payments under the performance management framework of a PPBC, the PMR portion of the CSR is delivered after each Review Period (for KPIs) and discussed at a PAR – it is not delayed by the preparation of the rest of the CSR. As progress against the CIE Program is also reviewed at the PAR, the CIE Report (also a separate portion of the CSR) may be delivered separately, before the PAR. Both the PMR and CIE Report portions of the CSR are identified separately in the CDRL to allow for separate deliveries. In keeping the separation of commercial and technical discussions, the CSPR and other Services-related reviews may discuss the actual cause of shortfalls in performance and options for rectification, but the technical reviews must not discuss the commercially sensitive issues such as performance relief or Performance Payments.

Drafters must tailor the subclauses of 3.4 and the reporting and review clauses for the individual Service areas (ie, clauses 4 to 8) in a consistent manner that reflects the overall communications strategy. Planning a contract-wide communications strategy, before tailoring these clauses, is highly recommended.

The type, content, and frequency of reports and reviews may be negotiated with the preferred tenderer(s), if necessary, to ensure that the Contract includes requirements that are satisfactory to the Commonwealth and efficient in terms of the Contractor’s reporting processes.

Related Clauses: All sub-clauses within clause 3.4.

Draft SOW report clauses for SSCCs: clauses 4.2, 5.2, 6.2, 7.2 and 8.2.

Draft SOW review clauses for SSCCs: clauses 4.3, 5.3, 6.3, 7.3 and 8.3.

Draft SOW clause 10.3, Support Services Verification and Validation Activities.

Draft report and review clauses in DSDs subordinate to clauses 4 to 8.

DID-SSM-CSR defines the requirements for the CSSR.

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DID-SSM-CSSR defines the requirements for the CSSR.


3.4.1 Status Review and Reporting


Status: Core

Purpose: To obtain from the Contractor regular reports on, and to discuss the issues regarding, the status of the Contract by covering subjects, such as:

a. performance against Required Performance Levels and Milestones;

b. condition of the system / fleet;

c. activities planned for the next reporting period;

d. problem areas and risks;

e. the implementation of Efficiencies and other financial issues;

f. workload issues over the past and future reporting periods;

g. long-term forecasts of workload and activities;

h. Subcontractor issues;

i. configuration status;

j. quality;

k. IP; and

l. AIC.

Policy: Nil

Guidance: This clause 3.4.1 outlines the requirements for all reports (CSR, CSSR, etc.) and Periodic Performance Reviews (including the CSPR, CPR, and reviews held specifically for to review the Services provided under each SSCC, if required). This clause also requires delivery of the CSR, which is Core to all contracts.

The first five clauses under clause 3.4.1 define requirements applicable to all Periodic Performance Reviews including CPRs, CSPRs and individual Services performance reviews. The clauses cover generic scope, additional information, combining reviews that occur in the same month (to reduce the effort and cost) and responsibilities for preparing Agenda and Minutes. Optional clauses allow drafters to select a default position for the preparation of Minutes, which may be overridden by clauses for specific reviews elsewhere in the Contract (eg, the Commonwealth may want the Contractor to prepare Minutes for all reviews all except for CPRs). Drafters should review these clauses and amend as necessary.

Drafters should be aware that the CSR is the Contractor’s principal statement and explanation of the status of the Services and compliance obligations as at the end of each reporting period, accordingly, the delivery of CSRs is a core requirement. The CSR includes a number of sub-reports, such as the Finance, IP progress, AIC, Health Safety and Environment, and Risk reports. If a revised budget forecast is to be included in the CSR, drafters should ensure that the CDRL requires the CSR to be delivered at least six-monthly so that forecasts can be aligned to the Defence budget cycle.

The CSR also includes a PMR and a CIE Report as portions of the CSR, for reporting on performance against KPIs (to process claims for Performance

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Payments) and progress for implementing Efficiencies, respectively. These two sub-reports can be delivered separately, at the end of each Review Period, as both are subject to discussion at the PAR (SOW clause 3.4.5). The rest of the CSR may be delivered less frequently than the PMR and CIE Report, or at the same frequency but slightly later, to allow additional time to prepare the more narrative and forward-looking aspects of the CSR. Clause 3.4.1 includes optional clauses, and the CDRL has additional rows, to allow for the separate delivery of these two sub-reports.

The subclause for the CSSR is a core clause that requires the Contractor to report on the provision of Services, including the level of activity during the reporting period, major events and milestones, the progress of S&Q Services and schedules relevant to future planning. Individual portion of the CSSR (for each of the SSCCs) can be requested at different times through the CDRL, as per the general communications strategy discussion with reference to clause 3.4 (above). The CASR is also included in the CSSR and must be delivered 3-monthly in accordance with Defence policy – the CASR is requested separately under SOW clause 3.11.5 and is identified separately within the CDRL.

The Contractor is required to describe the formal communications activities (ie, reporting and reviews) within the SSMP. Accordingly the reports, reviews, and when they are to be scheduled throughout the year, including which reviews the Contractor proposes to combine, will be documented in the Approved SSMP.

When determining the need and frequency for formal communications such as reviews and reports, Drafters should also consider the informal communications that may occur through working-level planning and coordination meetings, telephone conversations, coordination with Resident Personnel and other visits.

Drafters should:

a. determine the subjects / Services that are to be reported on, including the components of the CSR and CSSR that should be delivered individually;

b. tailor/draft the SOW clauses to reflect these requirements, including the optional clauses for the PMR and CIE Report;

c. decide which party, by default, will prepare Minutes and select the applicable optional clause;

d. amend, if necessary, the last clause under clause 3.4.1, which requires progress against any Remediation Plans to be reported using the reports identified by the drafter;

e. if absolutely necessary, tailor the DIDs for the CSR and CSSR (noting that these are largely ‘self-tailoring’ for the clauses included in the SOW); and

f. nominate the requirement for, and frequency of delivery of, reports in the CDRL, including the components to be delivered separately such as the PMR, CIE Report, Services summary reports and the CASR.


Draft SOW report clauses for SSCCs: clauses 4.2, 5.2, 6.2, 7.2 and 8.2.

Draft SOW review clauses for SSCCs: clauses 4.3, 5.3, 6.3, 7.3 and 8.3.

Draft SOW clause 3.11.5, which requires the CASR (sub-report).

CDRL Line Number MGT-300 for the CSR, including for separately delivered sub-reprts.

CDRL Line Number MGT-350 for the CSSR.

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DID-SSM-CSR, which specifies requirements for the CSR.

DID-SSM-CSSR, which specifies requirements for the CSSR.

DID-SSM-SSMP, which includes requirements for for the Contractor to define how communications applicable to the Contract will be managed.


3.4.2 Combined Services Performance Reviews


Status: Optional

Purpose: To define the arrangements and responsibilities for the CSPR meetings to be held between the Commonwealth, the Contractor, and relevant Subcontractors, to discuss the progress and status of the Services.

Policy: Nil

Guidance: Separate CSPRs are advisable for larger support contracts, as per the communications strategy discussed with reference to clause 3.4 in general (above). These reviews, however, may not be required for smaller support contracts (eg, where a single Service such as Maintenance is provided), or larger contracts where there are Resident Personnel and no need for formal review meetings. If there are no CSPRs in a smaller contract, ‘Ad Hoc Meetings’ can be used to cover any requirement for meetings, in addition to the CPRs. In larger contracts, a CSPR may not be required if all Services performance reviews are conducted individually or, alternatively, CSPRs could be the only type of Services review used under a support contract. For example, quarterly CSPRs could discuss Maintenance and Engineering, while every second CSPR also covers Supply and Training (ie, there would be no reviews for individual SSCCs).

Because circumstances vary, drafters should avoid being too prescriptive in the requirements for meetings. Factors that might influence the type and frequency of meetings include:

a. the location of the Contractor in relation to the CASG SPO / support agency;

b. the nature of the work (eg, whether it is routine and relatively straightforward, or Ad Hoc and requiring frequent coordination of S&Q tasks);

c. the complexity of the work and the need for insight, governance and/or technical regulation;

d. the critical nature of the Services; and

e. whether other options, such as written reports, are a satisfactory alternative to more frequent reviews.

The draft clause includes an option that requires the Approved Subcontractors to attend reviews, when appropriate. That is, where they undertake an important part of the Services and their attendance would enhance the review – they may not be required for every review. On larger contracts, where a significant portion of the work could be subcontracted, drafters should consider including this clause.

Unless the drafter inserts additional clauses to specify otherwise the preparation of Agenda and Minutes for the reviews will be in accordance with clause 3.4.1.

Drafters should also consider the option of using other forms of communication, such as video or telephone conferencing to reduce the cost of meetings.


Draft SOW report clauses 4.2, 5.2, 6.2, 7.2 and 8.2 for summary reports specific to each SSCC.

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Draft SOW review clauses 4.3, 5.3, 6.3, 7.3 and 8.3 for performance reviews specific to each SSCC.

CDRL Line Number MGT-500 for review meeting Agenda.

CDRL Line Number MGT-510 for review meeting Minutes.


3.4.3 Ad Hoc Meetings


Status: Core

Purpose: To define the procedures and requirements for Ad Hoc meetings.

Policy: Nil

Guidance: The Ad Hoc Meetings clause is required to specify arrangements for calling ad hoc meetings. Even if these meetings are not expected, the clause is included ‘just in case’.

These meetings may be required to discuss unforeseen issues at the working level that arise during the course of the Contract.

The requirements for conducting ad hoc meetings also make them a suitable basis for the conduct of a number of formal meetings. In these cases, general meeting requirements are cross-referenced to clause 3.4.3 while more specific issues, such as who will chair the meeting, are defined for the specific review meeting. Examples of this include the following optional reviews:

a. Periodic Cost Review; and

b. Performance Implementation Period (PIP) Completion Review.

There is no need for drafters to tailor this clause.


Draft SOW report clauses 4.2, 5.2, 6.2, 7.2 and 8.2.

Draft SOW review clauses 4.3, 5.3, 6.3, 7.3 and 8.3 for reviewing SSCC Services.

Draft SOW clauses 3.4.1, 3.4.2, and 3.4.4 (related reporting and reviews).

Draft SOW clause 3.4.6, Periodic Cost Reviews.

Draft SOW clause 13, Continuous Improvement and Efficiencies.

Draft SOW clause 10.4, Performance Implementation Period Completion Review.

CDRL Line Number MGT-500 for review meeting Agendas.



3.4.4 Contract Performance Reviews


Status: Core

Purpose: To provide a mechanism for addressing commercial issues and obtaining increased visibility of the Contractor’s processes as a means of reducing risk.

Policy: Nil

Guidance: The intent of the CPR is to examine the Services and operation of the Contract (ie, including compliance) in a holistic sense in order to identify areas for improvement. These CPRs would be conducted by senior managers from both customer and supplier organisations. Typically, the CSRs provide significant input into the

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agenda and content for CPRs, although other matters can also be addressed, as agreed by the parties.

For very large contracts, drafters may wish to separate out the quite discrete elements of the CPR which address the high-level 360-degree report from the general day-to-day business of performance reporting. The results of the review and appraisal of the Contractor’s performance, as discussed at the CPR, also provide input into the assessment of the Contractor against the Defence Company ScoreCard.

The CPR also provides the opportunity to discuss any changes to the Price and Payment Schedule (Attachment B), including changes payment types for work activities. For example, repeated performance of some S&Q Service may allow these to be changed into either Task Priced Services or Recurring Services, which may also require changes to the SOW (ie, if those Services are currently identified as S&Q Services). Although the implementation of Efficiencies is discussed at the PAR (or combined PAR and CPR if timing is suitable), the CPR may be used to discuss the incorporation of changes to the price and payments under the Contract as a result of implemented Efficiencies (eg, the CPR may discuss the draft CCPs). In contracts with Award Terms or Renewal Terms (COC clause 1.8), changes to the prices for the contract extension will also be discussed at appplicable CPRs.

The CPR may consider proposals for adjusting Performance Measures, including the Required Performance Levels for KPIs (eg, as user demand increases or decreases on an annual basis), and the selection and effectiveness of OPMs. These types of discussions would, generally, only be required on an annual basis, or perhaps every second year, if the CPRs and scheduled more frequently. COC clause 7.15 provides the contractual mechanism for these adjustments. A CPR will often follow, perhaps on the same day, a CSPR and/or PAR, where the Services and the levels of performance are discussed prior to commercial aspects being discussed at the CPR.

Drafters are to insert the frequency of CPRs and the numbers of attendees, where indicated. Drafters should also select the applicable optional clause for the party that will record the minutes of each CPR meeting. Otherwise the clause should be reviewed and refined, when necessary, to suit the individual needs of the Contract.

Related Clauses: All other sub-clauses within clause 3.4 (in general).

COC clause 1.8, for discussing pricing for Award Terms / Renewal Terms.

COC clause 7.15, Performance Management Framework Adjustments.

Draft SOW clause 3.4.1, which requires delivery of the CSR.

Draft SOW clauses 3.4.1, 3.4.2, 3.4.4 and 3.4.5 (related reporting and reviews).

Draft SOW clause 3.4.6, Periodic Cost Reviews.


CDRL Line Number MGT-500 for review meeting Agenda.



3.4.5 Performance Assessment Reviews


Status: Core

Purpose: To provide a mechanism for reviewing Contractor performance, in the context of a performance-based management framework, and addressing commercial issues regarding Performance Payments and excusable non-performance.

Policy: Nil

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Guidance: A PAR is conducted to discuss the Contractor’s performance with respect to the provision of Services, as measured using KPIs, for each Review Period. ASDEFCON (Support) is a template for drafting PPBCs and, accordingly, the review of performance measured against KPIs is essential and the PAR is core. If the proposed Contract is not performance-based then ASDEFCON (Support Short) may be a more suitable template.

The aims of the PAR are acknowledged at clause 3.4.5.1, which are primarily to discuss performance results, consider any grounds for performance relief, to agree the amount of the Performance Payment and to review Efficiencies.

The PAR considers the Contractor’ performance measured against KPIs. The KPIs are defined in Attachment P, which also allows different KPIs to have different Review Periods. If the Contract includes KPIs with different Review Periods (eg, three months and 12 months), then each PAR only addresses those KPIs that have been measured for their full Review Period.

The PAR is informed by a PMR (refer to clause 3.4.1); a part of the CSR that can be scheduled for separate delivery through the CDRL. The SSVM (refer to clause 10.3) collects results across the Review Period, is also used to reference raw measurement data and trend analysis.

The PAR is intended to be held as soon as practicable after the end of each Review Period in order to minimise any delay to the determination of Performance Payments, hence draft clause 3.4.5.2 requires the PAR to be held no later than 10 Working Days after the Commonwealth receiving the PMR (this may be amended if not suitable). More frequent PARs may be held to monitor a situation of, or recovery from, poor performance as described in clauses 3.4.5.3 and 3.4.5.4. The PAR would generally be appended to other Periodic Performance Reviews falling within the relevant timeframe identified in clause 3.4.5.2; however, if this is not suitable the PMR may be held separately by replacing clause 3.4.5.5 with the optional clause below.

Clauses 3.4.5.6 and 3.4.5.7 identify the attendees and chair for the PAR. Use of an IV&V Agent and the maximum numbers of attendees should be inserted for planning purposes.

The Achieved Performance results for each KPI, reported in the PMR, are used to determine the APS for each KPI; results from all KPIs measured for the Review Period are then used to calculate Performance Payment amounts in accordance with Annex C to Attachment B. Clause 3.4.5.8 includes an optional subclause to be included if the Contract includes Performance Incentives (payments in addition to the At Risk Amount) if applicable; otherwise it should be deleted. The PAR is used to consider Contractor claims for performance relief, in accordance with COC clause 6.5, based on a Contractor’s submission and details in the SSVM and PMR. Claims for performance relief, if agreed, may be used to amend the APS(s) and the resulting Performance Band, but not the Achieved Performance (the original / raw results are to be preserved).

The PAR is also the forum to discuss Remediation Plans raised in relation to KPIs, which are required if any Achieved Performance results fall into KPI Performance Bands C or D. Performance in these lower bands could also incur other remedies, as defined in the Contract, although a Remediation Plan is the first step. Additional meetings may be held to review progress against a Remediation Plan, in accordance with clause 3.4.5.4.

The PAR is also be used to discuss proposed Efficiencies and the progress made for Approved Efficiencies. Clauses 3.4.5.9 to 3.4.5.11 describe the evaluation process and assignment of satisfactory and unsatisfactory ratings, used in the evaluation on whether to offer an Award Term (refer to COC clause 1.8).

Drafters need to tailor clause 3.4.5 to accord with the performance management framework being implemented for the Contract. Optional clauses for Performance Incentives (part or Performance Payments) and Efficiencies are included in the template, and should be selected accordingly. Drafters may also find the need to

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add to or reduce some of the requirements of the PAR, and amend the clause accordingly. Clauses for the review of Efficiencies should be reviewed but, in general, do not require amendment.

Related Clauses: COC clause 1.8, for the evaluation of performance and Efficiencies with respect to offering an Award Term or the scope of a Renewal Term.

COC clause 6.5, Performance and Schedule Relief.

COC clause 7.1, Price.

COC clause 7.10, Restrictions on Certain Payments.

Annex C to Attachment B, Performance Payments.

Attachment P, Performance Assessment.

Draft SOW clauses 3.4.1, 3.4.2 and 3.4.4 (related reporting and reviews).


Draft SOW Clause 10.3, Support Services V&V Activities, including delivery of the SSVM and Remediation Plans (for poor performance).

Optional Clauses:

Note to drafters: the following clause may be used to replace clause 3.4.5.5 when applicable.

The Performance Assessment Review shall be conducted independently of other Periodic Performance Reviews.

3.4.6 Periodic Cost Reviews


Status: Optional

Purpose: To provide a mechanism for reviewing the reasonableness of costs incurred under the Contract, and the subsequent pricing arrangements, including when considering an extension to the Contract Term.

Policy: Nil

Guidance: A Periodic Cost Review will involve a series of cost-investigation activities, culminating in a review meeting. Periodic Cost Reviews are a mechanism for evaluating the on-going value for money of the Contract and for ensuring that savings created from Approved Efficiencies and related cost / price changes are being equitably shared between the Commonwealth and the Contractor. Periodic Cost Reviews, held at appropriate times, are considered essential for contracts with Renewal Terms. Periodic Cost Reviews are also applicable to contracts with Award Terms and fixed period contracts to evaluate on-going value for money.

Renewal Terms can be used to extend the Contract at Commonwealth discretion and considers possible changes in scope, subject to the extension representing value for money – a Periodic Cost Review does not need to be conducted for every Renewal Term. Award Term Contracts may also use the results of a Periodic Cost Review when considering the financial arrangements and the sharing of Efficieny savings as conditions for granting an Award Term.

Periodic Cost Reviews involve financial investigations that can be a relatively expensive exercise. Accordingly, if Periodic Cost Reviews are included they should only be conducted when they offer sufficient benefit. For example, an individual Periodic Cost Review may not be held if the contract is nearing its end and there is limited time or potential benefits remaining.

Clause 3.4.6 supports COC clause 1.10, and the two clauses should be included or ‘Not used’ as a set.

Clause 3.4.6 contains a number of clauses with optional fields to be amended for the type of Contract Extension, either Award Terms or Renewal Terms.

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Clause 3.4.6.1 refers to the notification process and requires the applicable type of Contract extension to be inserted.

Clause 3.4.6.2 is an acknowledgement of the aims of the Periodic Cost Review. Drafters are to insert the applicable type of Contract extension as indicated.

Clause 3.4.6.3 includes administrative details for Periodic Cost Review meetings by referencing Ad hoc Meetings under SOW clause 3.4.3. This clause should be retained without change.

Clause 3.4.6.4 requires that the Commonwealth notify the Contractor of Periodic Cost Review outcomes and drafters need to insert an applicable time period after considering when the information will be used. For example, for an Award Term a Periodic Cost Review may start three months before the end of an Award Assessment Period, and clause 3.4.6.4 would allow for the duration of a Periodic Cost Review and notification before the Award Term Determination Date.

Related Clauses: COC clause 1.8, Contract Term, which includes options for Periodic Cost Reviews within the Award Term and Renewal Term provisions (as selected by the drafter).

COC clause 1.10, Periodic Cost Reviews.

COC clause 10.7, Commonwealth Access and Records.

SOW clause 3.4.3, Ad Hoc Meetings.

Draft SOW clause 13, Continuous Improvement and EfficienciesError! Reference source not found..

Optional Clauses: Nil.

3.5 Subcontractor Management

3.5.1 Subcontractor Planning


Status: Optional

Purpose: To obtain visibility, through the Contractor, of the Approved Subcontractors’ processes as a means of reducing Contract risk.

Policy: Nil

Guidance: Drafters should only omit this clause if the Contractor is unlikely to be utilising Approved Subcontractors. Generally, the clause should be retained, even if the initial Contract does not involve Approved Subcontractors, to cover the likelihood that Approved Subcontractors will become applicable at some time during the Contract. If not required, the clause should be replaced with ‘Not used’.

Related Clauses: Attachment H, Schedule of Approved Subcontractors.

Draft SOW clause 3.2.1, Support Services Management Plan.


3.5.2 Subcontractor Status Reporting


Status: Optional

Purpose: To obtain visibility, through the Contractor, of the Approved Subcontractors’ processes as a means of reducing Contract risk.

Policy: Nil

Guidance: Drafters should only omit this clause if the Contractor is unlikely to be utilising Approved Subcontractors. Generally, the clause should be retained, even if the initial Contract does not involve Approved Subcontractors, to cover the likelihood that Approved Subcontractors will become applicable at some time during the Contract. If not required, the clause should be replaced with ‘Not used’.

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Related Clauses: Attachment H, Schedule of Approved Subcontractors.

Draft SOW clause 3.4.1, Status Review and Reporting.


3.6 Coordination and Cooperation


Status: Core

Purpose: To set out the requirement for the Contractor to co-ordinate and co-operate with other parties (both Commonwealth and other contractors) who may also need to perform work on the Products Being Supported, or who may be working on Products that interface or interact with the Products Being Supported.

Policy: Nil

Guidance: Clause 3.6.1 ensures that the Contractor acknowledges that it may need to interact with the Commonwealth or other contractors during the period of the Contract. The other parties are grouped as either ‘Other Capabilities’, being parties working with other systems that interface or interoperate with the Products, or ‘Associated Parties’ who work with the same Products as the Contractor but who are not Subcontractors.

Clause 3.6.2 requires the Contractor to co-operate with all parties that need to interact or interface with the Contractor and/or the Products being supported, such as:

a. another contractor requiring access to a Mission System being Maintained by the Contractor to install a modification;

b. the Contractor’s Maintenance activities having to be programmed in conjunction with the Commonwealth’s operational and operational level Maintenance activities to ensure overall system availability requirements are achieved; or

c. the Contractor having to coordinate an external interface modification with the support agency for the other side of the interface to ensure that both systems continue to interoperate.

Clause 3.6.2d requires the Contractor to advise the Commonwealth Representative of any causes, or likely causes, which could interrupt the operation of the Mission System or to the performance of the Services.

No tailoring of these clauses is required because it is envisaged that these clauses will have general applicability over the life of any Product being supported.

Optional clauses 3.6.3 – 6 apply only to Associated Parties. For the majority of Mission System support contracts, the Commonwealth will retain an overall management responsibility associated with the Technical Integrity and Configuration Control of the system. Other system-level responsibilities may also be retained or, in a number of cases, referred to a third party (eg, through a system-level support contractor or through FMS support). In these cases the Associated Party is likely to have responsibilities that span all aspects of Materiel System support, and require coordination and certain inputs from the Contractor.

The optional clauses define these responsibilities of the Associated Party, and require acknowledgement of them, particularly where they impact and/or interact with the Services provided by the Contractor, particularly for Engineering Services such as Configuration Management. If this situation is not applicable to the Contract, the optional clauses should be deleted.

When including the optional clauses, drafters need to insert the name of the applicable Mission System in several locations. Where there are multiple Mission

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System types, but with differing Commonwealth responsibilities, clause 3.6.3 may need to be modified or repeated for each type. Drafters should include the applicable system-level responsibilities held by the Commonwealth (or indirectly by a third party, via the Commonwealth) in the sub-clause list under clause 3.6.3. Other responsibilities, in addition to those listed, may include:

a. system availability (ie, coordination of all inputs for availability);

b. Technical Data management (ie, in relation to the, standards for developing and updating, distribution and control of all Technical Data);

c. fleet / class Maintenance plan(s);

d. Cannibalisation;

e. use of non-standard or alternative parts and deviating from approved Maintenance processes;

f. aircraft weight and balance / ship stability;

g. system security;

h. electromagnetic environmental effects;

i. reliability, maintainability and testability;

j. Obsolescence management;

k. Life Cycle Cost;

l. Codification and Cataloguing; and

m. Disposal of Commonwealth-owned Stock Items.

Drafters should amend the list of responsibilities, as appropriate to the Contract. The remaining optional clauses should require little or no tailoring.

Related Clauses: COC clause 3.15, Co-ordination and Co-operation with other Commonwealth Contractors.

Draft SOW clauses 4 to 8, where co-ordination and co-operation are required between contractors or with Defence units in order to provide relevant Services.

Draft SOW clause 12, for consultation, co-ordination and co-operation of WHS issues related to work.


3.7 Risk Management


Status: Core Option

Purpose: To define:

a. the Contractor's procedures for identifying, capturing, analysing, assessing, prioritising, monitoring and reviewing risks associated with the Contract (Support) and to describe the Contractor’s procedures to manage those risks; and

b. the implementation of the Risk Register and procedures for using the Risk Register to capture the dynamic elements of the risk-management process.

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Policy: DMO Project Risk Management Manual (PRMM)

Guidance: Contractors are required to manage risk in all contracts. The need for a separate Risk Management Plan (RMP) and Risk Register in accordance with the RMP depends on the perceived risk inherent in the Contract. The alternative is to roll-up risk-management requirements into the SSMP, with the choice between a standalone RMP or rolled-up into SSMP being a Core Option. Drafters will need to assess the likely level of risk taking into account factors such as:

a. technical complexity;

b. experience and skill level of Contractor and its team;

c. delivery schedule and impact of late deliveries; and

d. safety issues.

Drafters should consult with other staff, who have had experience with similar contracts, to determine the likely level of risk. Drafters should then decide whether a standalone RMP is required, and tailor the SOW accordingly. No tailoring of either the RMP DID or SSMP DID is considered necessary; the SSMP DID is self-tailored to include risk management planning based on the selection of the core option clause in the SOW.

The requirement for a Risk Register is defined in the RMP and SSMP DIDs; hence, the Contractor’s implementation and ongoing use of the Risk Register should be in accordance with the Approved RMP or SSMP, as chosen.

Drafters should be aware that, in addition to the CSR, most of the other reports specified in the SOW (eg, CSSR components) require risks to be included, and these risks should be derived from, and consistent with, the Contractor’s Risk Register.

Drafters are to select the applicable governing plan via the options and update references to that plan. Otherwise SOW clause 3.7 may be included in the RFT without amendment.

Related Clauses:

DID-SSM-RMP and DID-SSM-SSMP, which specify the requirements for planning risk management.

CDRL Line Number MGT-400 for the RMP.

TDR E-5 of the COT, Risk Assessment and Strategy.


3.8 Issue Management


Status: Core

Purpose: To ensure that day-to-day Contract Issues are being adequately managed.

Policy: Nil

Guidance: Issues in this context are items that do not appear in the Risk Register because they are either too short-term or too insignificant, or do not represent a cost or schedule risk. The effective management of Issues, however, requires ongoing effort to ensure the continued effective operation of the Contract and the reliable provision of Services. The SSMP should address how the Contractor proposes to manage these types of Issues. Typical Issues include:

a. action items from meetings;

b. corrective actions;

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c. Issues arising from the collection and analysis of measurement data;

d. Issues arising from deviations from expected progress;

e. Issues arising from reviews of process application; and

f. Issues arising from correspondence.

The aim of this clause is to ensure that the Contractor has a rigorous process in place to address important Issues in a timely manner.

The requirement for an Issue Register is defined in the SSMP DID; hence, the Contractor’s implementation and ongoing use of the Issue Register should be in accordance with the Approved SSMP.

Draft SOW clause 3.8 may be included in the RFT without amendment.

Related Clauses: DID-SSM-SSMP, which specifies the requirements for Issue management.


3.9 Maintenance of Contractual Documents

3.9.1 Configuration Management of the Contract


Status: Core

Purpose: To impose a contractual obligation on the Contractor to apply strict configuration control to contract documents.

Policy: DPPM, Section 6, Chapters 6.1 and 6.7

Guidance: This clause obligates the Contractor to maintain a configured copy of the Contract, which incorporates all approved CCPs, and maintain an archive of all superseded versions of the Contract.

Procurement teams should note that the requirement for the Contractor to maintain the configuration of the Contract does not remove the need for the Commonwealth to do the same. It is imperative that the Commonwealth also maintains copies of the current and past versions of the Contract, as described in this clause.

Draft SOW clause 3.9.1 may be included in the RFT without amendment.



3.9.2 Subcontract Configuration Management


Status: Core

Purpose: To impose a contractual obligation on the Contractor to apply strict configuration control to subcontract documents.

Policy: DPPM – Section 6, Chapter 6.7

Guidance: The same reasons for maintaining the configuration of the Contract apply to Subcontracts. This clause ensures that the Contractor maintains subcontract documents with the same rigour as maintaining Contract documents.

Draft SOW clause 3.9.2 may be included in the RFT without amendment.



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3.10 Independent Verification and Validation


Status: Optional

Purpose: To ensure that the Contractor will assist a third-party entity to investigate aspects of the Contractor’s performance on the Commonwealth’s behalf.

Policy: Nil

Guidance: This clause should only be used for complex contracts (eg, where software-intensive development is being undertaken) and for those with safety-critical aspects, where specialist expertise is essential to determine performance.

The Commonwealth may use an Independent V&V (IV&V) agent to:

a. undertake investigation of the Contractor’s performance by a person who has specialist expertise not available to the Commonwealth in-house; and/or

b. provide objective inputs (independent of both Commonwealth and Contractor personnel) to the Commonwealth on aspects of the work performed by the Contractor.

The scope of IV&V activities must be clearly indicated to enable the tenderer to estimate the scope of work imposed on the tenderer in supporting the IV&V activities. If the scope of IV&V activities is unknown, then a fixed man-hour level of effort should be considered (ie, to be individually estimated on an S&Q basis).

Drafters should bear in mind that this clause would give an IV&V agent access to IP owned by the Contractor. In some cases the IV&V agent may be an advisor to, or may be, an actual or potential competitor to the Contractor. Therefore, drafters should consider adding clauses that address (or confirm) confidentiality and the safeguard of the Contractor’s IP and other Confidential Information, such as knowledge about its internal processes. As a minimum, the Commonwealth would require a deed of confidentiality or similar agreement from the IV&V agent. Clause 10.4 of the COC addresses these issues and should be reviewed before adding additional clauses.

Related Clauses: COC clause 10.4, Confidential Information

Draft SOW clause 3.4.6, Periodic Cost Reviews

Draft SOW clause 13.5, TCO IV&V Agent

Optional Clauses:

The Commonwealth may appoint IV&V agent to verify and validate any aspect of the Contractor's activities at any stage of the Contract.

The Contractor shall facilitate the work of the IV&V agent by:

Note to drafters: The following subclauses should be amended for the nature and scope of the Contract and, where known, the areas in which an IV&V agent is likely to be engaged.

a. providing access to the Contractor's facilities;

b. providing access to all documentation regarding the Contract, including work processes and procedures, Approved Subcontracts, Configuration Status Accounts, hardware and software design and test data, Maintenance, engineering, inventory and stocktaking records, performance measurement data and information management systems used for the Services and the management of the Contract;

c. providing access to financial information, including in relation to CCPs, S&Q Services and Efficiencies;

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d. providing access to any tools required to review Contract-related data and documentation; and

e. providing the IV&V agent access to Contractor staff in order to clarify issues when necessary.

3.11 Contractor Managed Commonwealth Assets

3.11.1 Provision and Management of Government Furnished Material


Status: Optional. To be used when GFM (a subset of CMCA) is to be provided to the Contractor for the purposes of undertaking the Contract.

Purpose: To impose contractual obligations on the Contractor for the receipt, inspection and test before use (where feasible) of GFM.

Policy: DEFLOGMAN Part 2, Volume 5, Chapter 17, Stocktaking of Defence Assets and Inventory

Guidance: Under clause 3.11.1, the Commonwealth must deliver or provide the Contractor with access to GFM at the places and times stated in Annex A to Attachment E, or the GFM section of an S&Q Order (ie, section 5 when prepared in accordance with DID-SSM-S&Q). If the Commonwealth fails to deliver or provide access to GFM at the places and times stated, the COC states that the Contractor will be entitled to claim performance relief, in terms of a postponement of the date for provision of Services, and to recover postponement costs unless the failure to deliver or obtain access was, in some way, caused by the Contractor, its agents or Subcontractors. It is important, therefore, to ensure that all GFM can be supplied by the Commonwealth at the times and places specified in Annex A to Attachment E or the S&Q Order, as applicable.

Clause 3.11.1.1 obliges the Commonwealth to deliver GFM to the Contractor, or to make GFM available (eg, if located at GFF), as per Annex A to Attachment E – accordingly, drafters need to develop Annex A to Attachment E, listing the available GFM (note: this may require a lot of effort). The list may be revised through the tender response (refer TDR E-9) and Contract negotiations.

On receipt of the GFM, in accordance with clause 3.11.1.2, the Contractor must, within five days or another timeframe agreed in writing, acknowledge receipt of those items. The Contractor must also confirm that the correct paperwork (eg, issue voucher) for those items was received, in accordance with clause 3.11.1.3. This is an initial check that the correct items were delivered, in required quantities and without obvious damage.

Clause 3.11.1.4 places an additional requirement on the Contractor to inspect all GFM for physical damage, defects, and deficiencies and carry out appropriate functional testing of all GFE at least 15 Working Days prior to the first use of each item of GFE in connection with the provision of the Services. The Contractor must then report its satisfaction or dissatisfaction with the GFM to the Commonwealth Representative, in writing. The words ‘to the extent feasible’ have been included in regard to testing so that the Contractor will not be rendered in breach of Contract where it is not feasible for the GFE to be functionally tested (eg, if the GFE must interface or operate with specific Products, as part of the actual Services, in order to confirm full functionality).

Contractor performance of the functionality tests for GFE, as early as possible, is important to ensure that the Services will not be affected by the late discovery of defective GFE. If a Contractor submits a claim for performance relief in relation to delays caused by deficient GFE, the Contractor’s actions, including in relation to the functional testing of the GFE, will be taken into account when determining if the claim should be granted. If the Contractor fails to inspect the GFM or carry out the functional tests as required by clause 3.11.1.4 then the Contractor will be in breach

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of Contract. The Commonwealth’s remedy for such a breach will depend upon the circumstances and the effect of the breach.

If the GFM provided by the Commonwealth is damaged, deficient or defective, clauses 6.5 and 6.6 of the COC will apply to determine whether the Contractor will be entitled to claim performance relief for the provision of Services (ie, postponement of the required date for Services) and to recover any resulting costs. It is important, therefore, to ensure that all GFM provided by the Commonwealth is not damaged, defective or deficient, and is serviceable for its intended use. However, if the Contractor fails to inspect GFM or functionally test GFE as required by clause 3.11.1.4 the Contractor’s entitlement to a postponement claim may be affected.

Clauses 3.11.1.5 and 3.11.1.6 reinforce the need for safety by not using any defective equipment and also through the correct use of the GFM (eg, for the purposes for which the item is intended).

Drafters are to include and review clause 3.11.1 if GFM will be provided to the Contractor. In general, clause 3.11.1 will not require tailoring but significant effort may be involved in the development of Annex A to Attachment E.

Related Clauses: TDR E-9 of the COT requests tenderers to identify the GFM that they require for the Contract, including the quantity, date required, location and intended purpose.

Attachment M contains definitions of GFD, GFE, GFI, GFM and Commonwealth Mandated GFM.

COC clause 6.5 details when the Contractor is entitled to claim performance relief (ie, postponement) in the context of the required provision of the Services and/or a Milestone date.

COC clause 6.6 details the Contractor’s entitlement to recover postponement-related costs.

COC clauses 3.5, 3.6 and 3.9 contain additional provisions for GFM and CMCA in general.

Draft SOW clauses 9.3, 9.4, 9.5 and 9.7 are tailored according to the use of GFE.

DID-SSM-S&Q requires the identification of GFE to be used for the applicable S&Q Services.


3.11.2 Care of Contractor Managed Commonwealth Assets


Status: Core

Purpose: To impose a contractual obligation on the Contractor to provide Facilities and other resources necessary for protecting all CMCA during storage and handling, and to conduct the required Maintenance of GFE.


Guidance: Clause 3.11.2 addresses the care of all CMCA. This includes GFM provided to enable the Services, and also RIs in need of repair or alrreadt repaired and waiting return, etc. Even though a RI may need repair, it still requires protection from further damage or degradation. Accordingly, clause 3.11.2 is a Core clause because ASDEFCON (Support), used to support a Materiel System, will involve CMCA even when no GFM is provided.

Clause 3.11.2.1 places a contractual obligation on the Contractor to provide the necessary Facilities and other resources (eg, handling equipment) for the storage and handling of CMCA as it is received and while it is held by the Contractor.

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Clause 3.11.2.2 requires the Contractor to notify the Commonwealth should CMCA become lost or damaged, etc. The start of the clause “unless otherwise addressed” is included to allow for stocktaking under clause 3.11.5 while this clause accounts for any loss / damage discovered between stocktakes.

Clause 3.11.2.3 requires the Contractor to carry out Maintenance on items of GFE in accordance with the requirements of the applicable clauses identified. This clause refers to various sub-clauses under SOW clause 9, Support Resources. The sub-clause list under clause 3.11.2.3 should be updated to remove Support Resources that will not be included as GFE. For example, if no Training Equipment will be provided, reference to clause 9.4 should be deleted.

Where the responsibility is split between the Commonwealth and the Contractor (eg, the Contractor performs operational Maintenance and the Commonwealth tasks deeper levels of Maintenance through a common support contract), the drafter should ensure that the entries for each item of GFE in SOW Annex A define the levels of Maintenance that are to be included in the Services.

Drafters should be aware that SOW clause 3.11.5 addresses the stocktaking of CMCA, as well as the requirement for the Contractor to use a management system for the accounting for and control, handling, preservation, protection and Maintenance of CMCA.

Drafters need to tailor clause 3.11.2.3, particularly for changes to clause 9. Clause 3.11.2.1 and clause 3.11.2.2, do not, generally, require amendment.

Related Clauses: TDR E-9 of the COT requests tenderers to identify the GFM that they would require for the Contract, including the quantity, date required, location and purpose.

COC clauses 3.5, 3.6, 3.8 and 3.9 contain additional provisions for CMCA.

Annex A to Attachment E lists GFM.

Attachment M contains definitions of CMCA, GFD, GFE, GFI, GFM and Commonwealth Mandated GFM.

Draft SOW clause 3.11.5, Assurance and Stocktaking of Contractor Managed Commonwealth Assets, describes applicable accounting and asset management requirements.

Draft SOW clause 6, applicable subclauses of clause 9, and SOW Annex A are used to further define the Contractor’s responsibilities for GFE.


3.11.3 Shared Government Furnished Material


Status: Optional. To be used when GFM is to be supplied to the Contractor and if GFM is required to be shared with other Commonwealth organisations and contractors.

Purpose; To ensure that the Contractor acknowledges and agrees to a basis for cooperation and that GFM may be utilised by the Commonwealth and other Commonwealth contractors during the period of the Contract.


Guidance: Some GFM may need to be shared between the Contractor and Defence units or other Defence contractors. This requirement generally applies to high value special-to-type S&TE or Training Equipment used by both a Defence unit and/or one or more contractors, but its utilisation rate does not justify the purchase of additional equipment for each user. If this situation does not apply, the clauses below heading clause 3.11.3 can be replaced with a single “Not used”.

Clause 3.11.3 is primarily about an agreement to coordinate and cooperate when sharing GFM, and a resolution process when two (or more) parties require access to an item of GFM at the same time. Clause 3.11.3.1 ensures that the Contractor

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acknowledges that GFM may be required for use by the Commonwealth, or other contractors, during the period of the Contract. Clause 3.11.3.2 sets out the procedures to be followed when a dispute arises as to the use of the shared GFM. The guiding principle when the Commonwealth Representative is called upon to resolve disputes, is to determine the relative operational priority of the two claims. Clause 3.11.3.2 ensures that the Commonwealth Representative’s decision is final and binding.

Clause 3.11.3.3 clearly articulates that it is the Commonwealth’s responsibility to perform basic Maintenance on the GFM while the GFM is in the Commonwealth’s care, custody and control. If this is not the case then the clause may be deleted, noting that this puts the obligation on Defence to ensure that the GFM is available when required by the Contractor to perform more significant Maintenance (this also avoids the Contractor only ‘sharing’ the GFE with the Commonwealth when it is due for basic Maintenance). The drafter is to insert the applicable level(s) of Commonwealth repair / Maintenance into this clause using the same terminology that is used in SOW Annex A.

Related Clauses: TDR E-9 of the COT requests tenderers to provide details of the GFM that they would require to perform the Contract, including the quantity, date required, location and intended purpose.

COC clauses 3.5, 3.6, 3.8 and 3.9 contain additional provisions for CMCA, including GFM.

COC clauses 6.7 and 6.8 detail when the Contractor is entitled to claim a postponement of the date for provision of the Services and/or a Milestone date and to recover postponement costs.

Attachment M contains definitions of CMCA, GFD, GFE, GFI, GFM and Commonwealth Mandated GFM.


3.11.4 Update of Contract GFM


Status: Optional

Purpose; To update Annex A to Attachment E with additional GFM that has been transferred to the Contractor but not yet recorded in the Annex.


Guidance: Attachment E lists GFM. However, during the course of a Contract additional GFM may be included for S&Q Services and new S&TE may be introduced, superseding those items listed in the Contract. This clause is used to consolidate the separate lists of GFM and to update Attachment E and, when applicable, Annex A to the SOW. This applies to GFM that was introduced for an individual S&Q Service and which the Contractor continues to hold after the initial S&Q Service is complete, for future wok of a similar nature. Similarly, the GFE may have been introduced by an S&Q Order as part of an ECP that modified Products or introduced new Products and that the Contractor must now support using that GFE. For some Contracts, the number of GFM lists will grow over time and it becomes administratively more efficient to consolidate the lists by updating Attachment E. Updating Attachment E ensures that the scope of GFM, and the associated support for GFE in SOW Annex A, is again captured within the Contract.

This clause requires the Contractor to prepare these consolidated lists of GFE. This is included for convenience as a CCP to update Annex A to Attachment E, and SOW Annex A if applicable, could be undertaken without this clause. If there is unlikely to be changes to the list, or only minor changes that will be tracked and updated by Defence, then this clause would not be required and can be replaced with ‘Not used’.

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Related Clauses: COC clause 10.1, Change to the Contract.

TDR E-9 of the COT requests tenderers to provide details of the GFM.

Attachment E, which lists GFM and is updated as a result of this clause.

Attachment M contains definitions of GFD, GFE, GFI, GFM and Commonwealth Mandated GFM.

DID-SSM-S&Q, which identifies the GFM to be transferred to the Contractor for S&Q Services.


3.11.5 Assurance and Stocktaking of Contractor Managed Commonwealth Assets


Status: Core

Purpose: To require the Contractor to undertake the necessary stocktaking and accounting of Commonwealth owned assets held by the Contractor.

Policy: DI(G) LOG 4-1-003, Defence Inventory and Assets Manual

DEFLOGMAN Part 2, Volume 5, Section 17, Stocktaking of Defence Assets and Inventory.

Guidance: This clause is applicable to all Contracts, including those where no GFM is provided. CMCA is defined in the Glossary and it includes both GFM and the Products Being Supported when those Items are held by or otherwise within the control of the Contractor.

This clause is not to be amended. However, where items of CMCA are subject to stocktaking in accordance with Military Integrated Logistics Information System (MIILIS), and the Contractor has access to MILLIS, then the Contractor follows the stocktaking processes built into MILIS (ie, to identify Stock Items to be checked). Note that the two processes for stocktaking are essentially the same, except that without Contractor access to MILIS, the Commonwealth is advising the Contractor of the items to be stocktaked, in accordance with MILIS.

Related Clauses: COC clause 3.5, Commonwealth Property Ownership and Restrictions.

COC clause 3.6, Government Furnished Facilities.

COC clause 3.9, Excess Capacity.

COC clause 8, Insurance and Liability.

Attachment M, Glossary, for the definition of ‘Contractor Managed Commonwealth Assets’.

Other subclauses of draft SOW clause 3.11Error! Reference source not found., Contractor Managed Commonwealth Assets.

DID-SSM-SSMP (the CASP is included as part of the SSMP).

DID-SSM-CSR (the CASR is included as part of the CSR).

DSD-SUP-SERV, in relation to the Contractor Supply Management System.

CDRL Line Number MGT-350 (CASR portion of the CSR, if delivered separately).


3.12 Australian Industry Capability Management

Sponsor: Australian Industry Programs Branch, Defence Industry Division

Status: Core

Purpose: Under its defence policy for industry, the Commonwealth has established the AIC program, which aims to:

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a. generate and sustain indigenous industrial capabilities essential to meeting Australia’s sovereign military self-reliance needs, as required in support of ADF operational capability; and

b. create competitive opportunities for local industry to provide goods and services, domestically and internationally, as part of global supply chains, based on best value for money.

Policy: DPPM, chapter 3.12, Australian Industry Capability

Building Defence Capability: A Policy for a Smarter and More Agile Defence Industry Base, referred to as the Defence Industry Policy Statement (DIPS) 2010.

Better Practice Guide for AIC (to be issued)

Guidance: Guidance on AIC, including DIPS 2010, is available on the internet from http://www.defence.gov.au/dmo/id/aic/.

The AIC Plan is the principle document that defines the Contractor's commitment and responsibilities for meeting Industry Requirements and the AIC levels negotiated for the Contract.

Clause 3.12.1 requires the Contractor to comply with the AIC Plan at Attachment F (prepared and updated in accordance with DID-SSM-AICP). The public version of the AIC Plan needs to be revised annually. When a change to the AIC Plan is required an update is provided in accordance with clause 3.12.2 and CDRL Line MGT-700. Being an Attachment, a CCP is required and clause 3.12.3 obligates the Contractor to raise a CCP in accordance with COC clause 10.1.

Progress against the AIC Plan is reported in the AIC sub-report of the CSR in accordance with clause 3.12.4 (and clause 3.4.1). The CSR is submitted for review prior to each CPR as a minimum, and in some cases more frequently.

Clauses 3.12.6 to 3.12.8 facilitate Commonwealth review of the Contractor’s and Approved Subcontractors’ progress against the AIC Plan. The initial review may be conducted prior to the first round of AIC reporting within the CSR. Subsequent reviews may be held annually. This requirement is also flowed down to Approved Subcontractors. These are held as Ad Hoc Meetings as not all may be required annually, particularly if there are large numbers of Approved Subcontractors to for the CASG to engage with.

Prior to Contract signature, procurement officers must insert the negotiated AIC Plan at Attachment F. The tendered AIC information proposed in response to Annex H to Attachment A of the COT (ie, TDR H) forms the basis for the AIC Plan, which may be amended during negotiations before inclusion in the Contract.

Clause 3.12 should be reviewed but, in general, can be included in the RFT without change.

Related Clauses: Annex H to Attachment A of the COT requires tenderers to submit a draft AIC Plan.

COC clause 4 sets the contractual framework for AIC and the AIC Plan.

Attachment F contains the agreed AIC Plan based on the requirements set out in DID-PM-AIC-AICP (from ASDEFCON (Strategic Materiel)).

CDRL Line Number MGT-700 defines delivery requirements for the AIC Plan.

Draft SOW clause 3.4.1, Status Review and Reporting.


3.13 Intellectual Property Management

3.13.1 Intellectual Property Plan


Status: Core

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http://www.defence.gov.au/dmo


Purpose: To require the Contractor to:

a. comply with the Intellectual Property (IP) Plan; and

b. further develop, deliver and update the IP Plan.

Policy: The management of IP under the Contract shall be clear, consistent and traceable.

DPPM, Section 3, Chapter 3.6, Intellectual Property


Guidance: The IP Plan is the principle document that defines the Contractor's plans, processes and responsibilities for meeting the IP and related Technical Data requirements of the Contract. The management and monitoring section of the IP Plan outlines the scope of the IP program. The IP Schedule, within the plan, details all limitations (including on the Commonwealth's rights) in respect of the IP and Technical Data requirements of the Contract.

It is of paramount importance that the integrity of information in the IP Schedule be examined and qualified at key points during the Term of the Contract. This is because Contract provisions place a clear onus on the Contractor to define the IP required, and to highlight the limitations on the Commonwealth’s (or another party’s) rights of usage or access to the IP and related Technical Data in the context of the actual items of IP and Technical Data. This ensures that agreed limitations on use of or access to IP and Technical Data can be fully understood by the parties.

Clause 3.13.1.1 and clause 3.13.1.2 require the Contractor to:

a. conduct the IP program in accordance with the IP Plan; and

b. further develop, deliver and update the IP Plan.

If the Contractor proposes a change to the IP Plan, at Attachment G, it also requires a CCP. Clause 3.13.1.3 obligates the Contractor to raise this CCP in accordance with clause 10.1 of the COC. The management and continued development and updating of the IP Plan is an integral part of the Contractor’s obligations under the Contract.

Clause 3.13.1 is to be included in the RFT without alteration. The only tailoring required for the IP Plan is the selection of the appropriate DID for listing in, and attaching to, the CDRL. Either DID-SSM-IPP (Complex) or DID-SSM-IPP (Strategic) may be used. The two DIDs are similar; however, DID-SSM-IPP (Strategic) provides the option to use IP Records within the IP Schedule. If IP Records are required, they must be requested through clause 3.13.2.1 and as a separate line entry in the CDRL, with DID-SSM-IPP (Strategic) as the listed DID reference.

Related Clauses: Annex C to Attachment A of the COT requires tenderers to submit a draft IP Plan.

Attachment G contains the agreed IP Plan based on the requirements set out in the chosen DID.

DID-SSM-IP-IPP (Complex), or the alternative DID-SSM-IPP (Strategic), set out requirements for the IP Plan.

CDRL Line Number MGT-800.

Draft SOW clause 3.13.2.1 and CDRL Line Number MGT-810 when requiring IP Records for the IP Plan defined by DID-SSM-IPP (Strategic).

Draft SOW clause 3.13.2.2 requires the Contractor to document progress against the IP Plan in each CSR.


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3.13.2 IP Records, Progress Reports and Reviews


Status: Optional. To be included where IP records are required.

Purpose: To require the Contractor to provide progress reports on IP issues.

Policy: DPPM, Section 3, Chapter 3.6, Intellectual Property


Guidance: The inclusion of optional SOW clauses for IP Records, Progress Reports and Reviews should be considered based on the levels of complexity of both the contracted scope of work and the Capability. These clauses need to be selected and applied consistently within themselves and also consistent with the selection of a complex or strategic level IP Plan for clause 3.13.1.

The selection of clause 3.13.2.1, for IP Records, must be supported by the selection of DID-SSM-IPP (Strategic) in the CDRL, in support of clause 3.13.1. If the complex level IP Plan is included in the CDRL, then this clause should be ‘not used’ as IP Records are not used at this level. CDRL Line Number MGT-810 lists the requirements for the IP Records (using DID-SSM-IPR) and must be tailored consistent with this clause. Note that the CDRL should also be tailored to ensure an update of the IP Plan in preparation for the end of a Contract (before Off Ramp Date).

Clause 3.13.2.2 requires the Contractor to document progress against the IP Plan in each CSR. Clause 3.13.2.2 may be omitted (‘not used’) if IP Progress Reports (IPPRs) will not be required, and retained if IPPRs will be required. Note that clause 3.13.2.2 is optional and can be included without clauses 3.13.2.3 - 3.13.2.5, but 3.13.2.2 must be included if the clauses 3.13.2.3 - 3.13.2.5 are to be included.

Clauses 3.13.2.3 to 3.13.2.5 provide the Commonwealth with access to review and confirm compliance with IP requirements, as reported. These clauses should be retained for strategic level IP programs, or deleted (or replaced with ‘not used’) in other cases.

Prior to Contract signature, drafters must insert the negotiated IP Plan at Attachment G. The IP Schedule proposed in response to Annex C to Attachment A of the COT (ie, TDR C) will form the basis of the IP Plan.

The following circumstances will require ‘strategic level’ IP provisions (based on the ASDEFCON (Strategic Materiel) template IP provisions) to be used across the template instead of the ‘complex IP’ provisions:

a. the Contract is for the support of Capability that includes complex, software-intensive systems, or which may integrate with or inter-operate with other complex, software-intensive systems;

b. significant Foreground IP is anticipated under the Contract; or

c. the Contract will be signed concurrently with an acquisition contract, particularly if the acquisition contract is based on the ASDEFCON (Strategic Materiel) template.

Related Clauses: Annex C to Attachment A of the COT requires tenderers to submit a draft IP Plan.

COC clause 5 of the sets the contractual framework for IP ownership, and licensing arrangements relating to IP and Technical Data – this clause is also tailored for complex and strategic level IP provisions.

Attachment G contains the agreed version of the IP Plan (which based on the requirements set out in DID-SSM-IPP (Complex) or (Strategic), as defined in the CDRL).

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SOW Annex A-5 and A-6 define software and key Technical Data that are included as Products Being Supported (and potentially updated).

Clause 9.2 of the SOW defines Technical Data (including delivery) requirements.

CDRL Line Numbers MGT-800 (IP Plan), MGT-810 (IP Records, if required) and SR-100 (Technical Data List) define delivery requirements for updates to data items relating to IP and Technical Data.

DID-SSM-IP-IPR sets out requirements for the optional IP Records.


3.14 Defence Security Compliance

3.14.1 Defence Security – General Requirements

Sponsor: Defence Industrial Security Authority

Status: Core

Purpose: To define the security requirements applicable to the Contract.

Policy: Defence Security Manual

DPPM, chapter 3.9, Defence Security Requirements

Guidance: This clause requires that the Contractor has all the necessary security procedures, training, facilities, fittings and clearance requests in place in the timeframe to ensure that security issues do not impede the progress of the work. This clause provides the method for capturing the work involved when complying with COC clause 10.10, for the general requirements regarding personnel, Contractor facilities and membership of the Defence Industry Security Program (DISP).

Drafters will need to draft the Contract to ensure that the Contractor has Personnel with the necessary clearances, appropriately cleared Facilities, and procedures for handling classified material and equipment, as applicable to the work requirements under the Contract – many of these will need to be complete before the OD. Drafters should refer to the relevant clauses under COC clause 10.10, which must be tailored, and develop clauses for the draft SOW to cover any specific activities the Contractor is required to take to comply with security requirements.

Clause 10.10 of the COC covers all Defence security compliance aspects, including communication security equipment and Information Systems security. Within the SOW, the work effort is divided between the clauses 3.14.1, 3.14.2 and 3.14.3 to simplify tailoring and to better identify the cost breakdown of the associated work effort.

Each ‘system’ is required to have a Security Risk Management Plan (SRMP), which is the highest level security plan for that system. The SRMP should have been prepared previously by the Contractor (Acquisition) or Defence but may be embedded within a Risk Management Plan. The SRMP would be maintained by Defence, particularly if the Contractor does not have full system responsibilities (ie, not support scenario #1 described at Annex A). However, if the Contractor does have system-level responsibility, the Contractor may be tasked to maintain the SRMP by including the optional clause below. Note that the initial SRMP would need to be provided to the Contractor by the Commonwealth. If Defence maintains the SRMP, then the SRMP, or relevant parts of it, will need to be provided to the Contractor in order for them to prepare System Security Plans (SSPs).

Related Clauses: COC clause 10.10, Defence Security.

Draft SOW clauses 3.14.2 and 3.14.3.

Optional Clauses:

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Note to drafters: Insert the following clause only if the Contractor has responsibility for maintaining the SRMP.

The Contractor shall maintain, for the duration of the Contract, the Security Risk Management Plan for the Products Being Supported.

3.14.2 Communications Security


Status: Optional

Purpose: To define security management requirements for secure communications and cryptographic equipment.

Policy: Defence Security Manual

Australian Government Information Security Manual

Guidance: The following clauses may be applicable when the Contractor is required to handle cryptographic equipment and related secure communications equipment and documents. The clauses contain references to plans and other documents developed under the Contract (Acquisition).

Drafters should determine what relevant documents have been generated under the Contract (Acquisition) and which ones should be maintained and followed by the Contractor (Support).



Optional Clauses:

Note to drafters: Amend the following clauses to suit Contract requirements. Where the Contract (Support) does not immediately follow a Contract (Acquisition) references to “developed under the Contract (Acquisition)” should be replaced (eg, “… provided as GFD, …”).

The Contractor shall maintain a COMSEC Account with Defence Signals Directorate for the purposes of handling cryptographic equipment, accessing relevant documentation, and negotiating key material generation.

Note to drafters: Insert reference to the plan that defines the COMSEC policy and procedures for the Products Being Supported.

The Contractor shall maintain, for the duration of the Contract, the [...INSERT SYSTEM NAME...] System Security Plan developed under the Contract (Acquisition) for secure communications equipment and related materials.

Note to drafters: Insert reference to the relevant document that defines the Information System – Security Practices and Procedures relevant to the Products Being Supported.

The Contractor shall maintain the [...INSERT SYSTEM NAME...] Standard Operating Procedures developed under the Contract (Acquisition) for secure communications equipment and related materials.

Note to drafters: Insert reference to the relevant document that defines the Key Management Plan relevant to the Products Being Supported. (‘Key’ in this context refers to both physical keys and software keys.)

The Contractor shall maintain, for the duration of the Contract, the Key Management Plan developed under the Contract (Acquisition).

3.14.3 Information Systems Security


Status: Optional

Purpose: To set out the security management requirements for information systems.

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Policy: Defence Security Manual (DSM), based on parts 2-4, 2-40 and 2-42.

Australian Government Information Security Manual (ISM)

Guidance: The clause should be used when the Contractor will have access to Defence information systems, or will be linked to Defence information systems. Security accreditation and certification for an information system will also include security for the Facility (or Facilities) in which the physical components (ie, computers, terminals, routers, etc) will be located (refer to DSM part 2-4). The extent of system security documentation, and the applicable accreditation and certification authorities, depend upon the ownership of the system (ie, contractor system or only for access to Commonwealth Systems such as MILIS), and the security classification of data (refer to DSM part 2-40 and ISM part 2). The Contractor will also need to be a member of the Defence Industry Security Program (refer to DSM part 2-42). If the Contractor is a foreign entity, further requirements apply.

Drafters need to ascertain the applicable Facility and Information System requirements under the Contract and then seek advice from the Regional Defence Security Authority point of contact (refer DSM Annex A to part 1).

SOW clauses should be drafted along with COC clause 10.10, whereby the COC clause captures the security compliance requirements while the SOW captures the associated work requirements.



Optional Clauses:

Note to drafters: The following clauses should be considered as the starting point for further development. Refer to your Regional Defence Security Authority for further advice.

The Contractor shall prepare in accordance with the Defence Security Manual (DSM), and maintain for the duration of the Contract, the System Security Plan(s) for the information systems used by the Contractor for this Contract.

The Contractor shall prepare in accordance with the DSM, and maintain for the duration of the Contract, the Standard Operating Procedures for the information systems used by the Contractor for this Contract.

The Contractor shall, upon request, make the Contractor’s System Security Plan and related Standard Operating Procedures available to the Commonwealth Representative.

3.15 Maintenance of Support Agreements


Status: Optional

Purpose: To require the Contractor to update the list of organisations with which it has support agreements.

Policy: Nil

Guidance: Agreements with companies and other organisations such as OEMs for support of the Products Being Supported are likely to have been established during the acquisition phase or previous support period. Such agreements include Product Support Agreements, Technical Assistance Agreements, MOAs, sub-licences or agency agreements and the like. If appropriate, the Contractor should be required / encouraged to continue these Agreements or to establish equivalents.

If the Contractor is not required to maintain support agreements to enable Services under the Contract then the clauses under the heading can be deleted and replaced with a single ‘Not used’.

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If this clause is required, then the drafter will need to prepare an appropriate annex to the SOW, listing the companies involved and the agreements that are to be maintained. Drafters should then insert reference to this new annex and the types of agreements into clause 3.15 where indicated.

The Commonwealth may identify particular agreements with nominated vendors for the Contractor to put into effect through clause 3.15. If there are no particular agreements to be specified, this individual clause may be removed or replaced with ‘Not used’. If an agreement is essential and required by OD, then obtaining it should also be listed under COC clause 1.4, Once established, the agreement is maintained in accordance with clause 3.15.4.

Drafters should understand the provisions of COC clause 3.2 when using this clause in relation to import / export approvals, and COC clause 5 in regard to IP licenses or sub-licenses.

Related Clauses:

COC clause 1.4, Operative Date, where agreements are essential for the provision of Services.

COC clause 3.2, Authorisations.

COC clause 5, Intellectual Property.


3.16 Commonwealth Personnel at Contractor or Approved Subcontractor Premises


Status: Optional

Purpose: To require the Contractor, and/or Approved Subcontractors if applicable, to provide accommodation facilities and other support for Resident Personnel and / or Members Required in Uniform (MRU).

Policy: Defence Work Health and Safety Manual (Defence WHS Manual)

Guidance: This clause is likely to be required for those larger, more-complex support contracts, where either or both of the following apply:

a. one or more representatives from the CASG SPO / support agency, their advisors and/or a representative of the Capability Manager will be resident with the Contractor to coordinate matters between the Commonwealth and the Contractor (ie, Resident Personnel); and

b. where Defence requires ADF personnel to have core skills, necessary for deployed support, and these skills are most effectively obtained and maintained through work undertaken with the Contractor (ie, MRU).

If Resident Personnel and / or MRU will not be required under the Contract, then clauses under the heading should be deleted and replaced with a single ‘Not used’.

Clause 3.16 includes optional clauses for both Resident Personnel and MRU where either one or both options may be selected. This is followed by a set of common clauses that apply to both groups of Commonwealth Personnel.

If Resident Personnel are required, then:

a. optional clauses 3.16.1 and 3.16.2 should be retained in the SOW; and

b. Attachment L should be further developed to define the duties of the Resident Personnel and the requirements (eg, office facilities and ICT support) needed to enable the effective functioning of Resident Personnel in carrying out thier duties.

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If MRU are required, then:

a. optional clauses 3.16.3 and 3.16.4 should be retained in the SOW; and

b. Attachment O should be further developed to address the skills development and retention issues needed to meet MRU objectives, and the management arrangements for those Personnel.

If either Resident Personnel or MRU are not required, delete only the applicable option and ensure that the subsequent common clauses, clauses 3.16.5 to 3.16.7, are retained.

Clause 3.16.5 refers to the standard of accommodation, working environment, and facilities to be provided to Commonwealth Personnel. This cross references the clauses for Work Health and Safety of Commonwealth Personnel in SOW clause 12.3.3, which must be included when this clause 3.16 is included in the SOW. When clause 3.16 is required, clause 3.16.5 is to be retained without change.

Clauses 3.16.6 and 3.16.7 are, essentially, an agreement to co-operate and co-ordinate the necessary administrative requirements for both Resident Personnel and MRU. When clause 3.16 is used, clauses 3.16.6 and 3.16.7 should be reviewed but, in general, do not require tailoring.

Further potential issues for Resident Personnel and MRU may need to be considered in relatation to the draft Contract. The first of these is where the Contractor’s premises includes GFF. GFF are provided to the Contractor in accordance with a “Licence for the Use of Commonwealth Premises” (refer Attachment I, Annex D). Where the Contractor is required to provide support to the Resident Personnel in the GFF, drafters should consider including in the Licence that part of the premises that is to be for the use of the Resident Personnel, including allocated offices, etc. This is less of an issue for MRU, but may be applicable to the MRU manager and to the facilities to be provided to MRU personnel, under Attachment O, which may be less when in GFF (given the proximity of other Defence facilities). Drafters’ attention is drawn to COC clause 3.6 for GFF.

If any Resident Personnel will be a delegate of the Commonwealth Representative for the purposes of making decisions about the management of the Contract, then the Resident Person will also be an Authorised Person for the purposes of COC clause 2.1, Commonwealth Representative. In this case, drafters must also satisfy the Commonwealth’s obligations under COC clause 2.1.3 (and, potentially, this can be achieved by including the scope and limits of authority in Attachment L or a ‘terms of reference’ annexed to Attachment L).

Related Clauses: COC clause 2.1, Commonwealth Representative (if the Resident Personnel are to be Authorised Persons).

COC clause 3.6, GFF.

COC clause 3.8, Members Required in Uniform

Annex D to Attachment I, Government Furnished Facilities Deed

Attachment L, Resident Personnel.

Attachment O, Members Required in Uniform


Draft SOW clause 12.3.3 Work Health and Safety of Commonwealth Personnel on Contractor Premises.

Draft SOW clause 12.4 regarding the WHS-related incident reporting for Commonwealth Personnel.


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3.17 Training in Defence Information Systems


Status: Optional

Purpose: To ensure that all relevant employees, agents and Subcontractors are trained in the operation of mandated Defence information systems.

Policy: DI(G) PERS 05-34, Policy Framework for Defence Training Support to Contractors

DEFLOGMAN Part 3 (ESCM) Volume 2, Section 3, Chapter 1, Annex A, MILIS Ellipse Security and Access.

DPPM Chapter 4.10, Services Contracts and Agency Relationships

Guidance: Clause 3.17 is an optional clause to be included in the SOW when the Contractor and/or Approved Subcontractors will be required to use Defence information systems and, due to the bespoke or customised nature of the system, or the way in which Defence uses it, requires training to be provided or coordinated through Defence. There are a number of DSDs where the use of information systems is required; these DSDs are included in the ‘related clauses’ listed below. In many cases these DSDs include options for Contractor or Defence-provided information systems, with the Defence-provided information systems likely to create a need for training covered by SOW clause 3.17. For example, DSD-SUP-MILIS requires the inclusion of this clause. If no Defence information systems are required to be used by the Contractor, or if they will not require training in those information systems, then the clauses under the heading clause 3.17 may be deleted and replaced with a single “Not used”.

Drafters should note the intent of clauses 3.17.2 to 3.17.6, is that the Commonwealth will provide initial training in Defence information systems and additional training when those systems are updated; other training is the responsibility of the Contractor.

Drafters’ attention is also drawn to the Operative Date clause (COC clause 1.4) which states that the parties have no obligation to perform the Contract until the first day on which a number of events have occurred, except for those activities listed in COC clause 1.4. Accordingly, training in Defence information systems, to enable the Contractor to achieve OD, must be considered for inclusion. Additionally training in Defence information systems will probably be provided as GFS (COC clause 3.7).

Drafters should include this clause when training of Contractor personnel in Defence information systems is required and also address COC clause 1.4 to identify applicable training required pre-OD (even though additional details may be contained in the Approved Phase In Plan). Clause 3.17 should be reviewed but, if required, it can usually be retained without change.

Related Clauses: COC clause 1.4, Operative Date.

COC clause 3.7, Government Furnished Services.

DSD-OPS-HLPDSK, clause 6.2.2, Service Request Logging.

DSD-ENG-CM, clause 6.2.5, Configuration Status Accounting.

DSD-ENG-SERV, clause 6.2.2, Engineering Information System.

DSD-MNT-MGT, clause 6.2.2, Maintenance Management System.

DSD-MNT-SA, clause 6.2.4, System Event Monitoring.

DSD-MNT-SA, clause 6.2.8, Maintenance of System Records.

DSD-SUP-MILIS, Military Integrated Logistics Information System Use.

DSD-TNG-MGT, clause 6.2.2, Training Information System.

DID-SSM-PHIP, defines requirements for the Phase In Plan.

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DID-SSM-RUMP, defines requirements for the Ramp Up Management Plan.


3.18 Access to Foreign Military Sales


Status: Optional

Purpose: To provide the Contractor with access to Stock Items that are available via Foreign Military Sales (FMS) and that may not be available commercially.

Policy: DEFLOGMAN Part 2, Volume 5, Chapter 19, Procurement of Materiel and Services from the United States of America under the Foreign Military Sales Program

Guidance: This optional clause is included when it is necessary, or may become necessary during the Contract Term, for the Contractor to be able to source Stock Items through FMS because they are not available from commercial means. If access to items via the FMS system will not be required, then the clauses under the heading clause 3.18 may be deleted and replaced with a single “Not used”.

Drafters should note that the FMS clause is not intended to provide an automatic program for FMS access, and is to be initiated by the Contractor. Alternatively, if the Contract follows a Contract (Acquisition) or system-level FMS procurement, and the drafter knows that a number of Stock Items will only be accessible via FMS, then the clause may be amended to establish a standing arrangement for on-going FMS access.

FMS for RIs and Non-RIs is usually accessed via the MILIS FMS module, with the link to the United States and order processing conducted under the management of Support Office Foreign Military Sales (SOFMS). Items ordered via FMS must be acquired against an FMS case with the appropriate scope and funding provisions. Depending on the individual requirements, arrangements put in place by the Defence Logistic Manager, and the Contractor’s authorised access to MILIS, various options for FMS access may be possible. Advice should be sought from the SOFMS regarding further tailoring of this clause.

Related Clauses: DSD-SUP-MILIS.


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4. OPERATING SUPPORT


Status: Optional (but must be used when Operating Support Services are required under the Contract (Support))

Purpose: To define the requirements for Operating Support Services to be provided as part of, or in direct support to, Defence operations.

Policy: DEFLOGMAN Part 2, Volume 10, Chapter 3, Defence Policy on Integrated Logistic Support

DI(G) LOG 4-5-012, Regulation of Technical Integrity of Australian Defence Force Materiel

DI(G) OPS 05-3, Civilians in Support of Australian Defence Force Operations (applicable only if Operating Support is to be provided in the area of operations)

Guidance: This clause should be included if the Contract (Support) requires the provision of Operating Support Services. Operating Support Services, in the ASDEFCON context, include the operation of the Mission System, or Services that directly enable operation of the Mission System by a Defence user. Operating Support is not a support element in an ILS context; however, Operating Support utilises Support Resource elements, such as personnel, support equipment, facilities, etc. Operating Support is not a Maintenance or Supply activity provided in the area of operations, or any ‘operational’ level of Maintenance or Supply; these should be included under clauses 6 and 7 of the SOW.

Examples of Operating Support include (but are not limited to):

a. operation of a communications facility, where the Contractor’s staff undertake operational communications;

b. operation of a radar or other surveillance facility, where the Contractor’s staff plot track, and report targets or operate other surveillance equipment in its operational role;

c. provision of meteorological and pre-flight briefings to aircraft pilots;

d. provision of a help-desk providing direct advice to system users (not part of a training course);

e. preparation of Mission System software libraries with operational terrain data; and

f. operation of a simulator, such as loading of scenarios and inserting threats or emergency conditions (when the simulator is treated as a Mission System under the Contract).

All of these examples either directly involve, or directly enable, the operation of the Mission System in performing its mission.

If the Contract (Support) does not contain any Operating Support requirements, then the heading should be retained, but the words ‘Not used’ should be inserted in brackets at the end (eg, “Operating Support (Not used)”). All of the lower-level clauses of clause 4 may then be deleted.

Related Clauses: Maintenance Support (clause 6), for Contractor-provided Maintenance Services at the operational level.

Supply Support (clause 7), for the provision of Supply Services at the operational level.

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The following diagram shows the general structure of SOW clause 4 and its associated DSDs and DIDs:

Operating Support SOW Structure

4.1 Operating Support Management Planning


Status: Core (if Operating Support required)

Purpose: To identify the requirements for the Operating Support planning document.

Policy: Nil

Guidance: The drafter must determine whether Operating Support planning requirements can be included in the SSMP, or if a separate Operating Support Plan (OSP) is required. This decision is often discretionary, dependent upon the scope of the workload (eg, if the Contract (Support) covers several SSCCs), and the need to manage Operating Support functions separate from other support functions. Drafters should also refer to the previous guidance for SOW clauses 3.2 and 3.2.1 regarding the ‘roll-up’ of management plans.

If the scope of Operating Support for the Contract is concise (eg, Operating Support Services are relatively static and straightforward), then embedding the basic OSP requirements in the SSMP should be sufficient. If the Contract covers several types of Operating Support activities, and other activities under Engineering Support, Maintenance Support, Supply Support and Training Support, then a separate OSP may be more practical.

Having determined whether or not a separate OSP is required, the optional SOW clauses should be chosen and reference to the appropriate selected plan edited, as per the ‘Notes to drafters’ in the draft SOW.

DID-OPS-OSP provides generic clauses to define the requirements for an OSP, making it adaptable to the management of many Operating Support Services without the need for tailoring. This supports the ASDEFCON guiding principle to work in the Contractor’s domain where suitable9, by having the Contractor describe their ‘best practice’ processes for the required Services in the OSP. However, if the scope of Operating Support planning has specific requirements that cannot be captured in this manner, then DID-OPS-OSP will need to be tailored accordingly.

9 See ASDEFCON Handbook Philosophy Volume.

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If planning for the management of Operating Support is to be included in the SSMP, then the drafter must review DID-SSM-SSMP. Drafters should be aware that DID-SSM-SSMP identifies the need to address Operating Support management in the SSMP if the SOW requires it and, by default, the DID does not require tailoring. However, if the scope of Operating Support planning is reduced in the SSMP or specific requirements are needed, then the DID-SSM-SSMP will need to be tailored accordingly.

Related Clauses: DID-OPS-OSP, which defines the requirements for an Operating Support Plan.

DID-SSM-SSMP, which defines the requirements for a Support Services Management Plan, including Operating Support Services planning when a separate OSP is not required.

CDRL Line Number OPS-100 for the OSP.


4.2 Operating Support Reporting


Status: Core (if Operating Support required)

Purpose: To identify the requirements for reporting the performance of Operating Support Services.

Policy: Nil

Guidance: Operating Support reporting is managed as a sub-report for the CSSR. This report may also be delivered separately from the rest of the CSSR, if required, by tailoring the CDRL. This report would typically be delivered for review in preparation for a CSPR, or a separately held Operating Support Performance Review (OSPR), as requested by clause 4.3 of the SOW. The report primarily addresses the Contractor’s performance in providing Operating Support Services against the requirements of the Contract.

Reports and reviews do not need to be coordinated on a one-for-one basis (eg, the Operating Support component of the CSSR could be scheduled for every six months with every second report scheduled for an annual OSPR or CSPR). The frequency for delivery of reports may vary from one contract to the next, depending upon the level of visibility and Operating Support activity expected or the frequency of payment for these Services.

Refer to the guidance for SOW clause 3.4 in regard to rolling-up reports and reviews as part of the communications strategy.

Drafters do not need to change SOW clause 4.2, but must tailor the CDRL for the delivery of the Operating Support component of the CSSR individually or as part of the combined report.

Related Clauses:

DID-SSM-CSSR, which defines requirements for a CSSR including the Operating Support sub-report.

Draft SOW clause 4.3 in relation to Operating Support Reviews.

Draft SOW clause 3.4.1, in relation to the CSSR.

CDRL Line Number MGT-350d, for the separate delivery of the Operating Support portion of the CSSR, if required.


4.3 Operating Support Reviews


Status: Core (if Operating Support is required)

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Purpose: To identify the requirements for Operating Support Performance Reviews (OSPRs).

Policy: Nil

Guidance: There is only one level of Operating Support review in the SOW, the OSPR, which may be scheduled independently or rolled up into the CSPR. If necessary for larger-scale contracts, two levels of review can be achieved if the CSPR acts as a higher-level review to the OSPR.

The drafter needs to determine the appropriate level of review activity for Operating Support. If the OSPRs are to be rolled up into the CSPRs, then Option A should be selected. If separate OSPRs are required, then Option B should be selected and the review frequency inserted, as per the notes to drafters. If two levels of review are required, the OSPR clause (Option B) should be selected, and the requirements for the CSPR amended, if required, to include a higher-level review of Operating Support Services.

Depending on the plan option selected under clause 4.1, drafters should edit the clauses referring to plans accordingly.

Related Clauses:

Draft SOW clause 3.4.2, Combined Services Performance Review.

Draft SOW clause 4.2, Operating Support Reporting.


4.4 Operating Support Services


Status: Core (if Operating Support is required; however, individual lower-level SOW clauses are optional provided that at least one set of Services is included)

Purpose: To define the required Operating Support Services.

Policy: Nil

Guidance: Drafters should be aware that DSDs are not necessarily independent of each other and that the selection of DSDs, and the creation of any new DSDs, should consider these relationships.

Drafters must tailor the subclauses to clause 4.4 for each group of Operating Support Services to be included in the Contract (Support), as described by a separate DSD listed in the CSRL, SOW Annex B. Details are given below for the draft DSDs included in the ASDEFCON (Support) templates.

Help Desk Services. DSD-OPS-HLPDSK provides a draft DSD for the provision of help desk support to operators / users and, potentially, other support staff for Information and Communications Technology (ICT) Systems, or other Mission Systems with embedded ICT capability. The DSD may also be used as the basis for drafting a general ‘technical services” help desk (eg, for deployed Maintenance staff), with some modification. If these Services are not required under the Contract, then the SOW clause and associated CSRL entry should be deleted.

Help desk activities interact with and may be provided in conjuction with Systems Administration (through DSD-MNT-SA) and Software Support Services (through DSD-ENG-SW). Alternatively, those activities could be performed by another Commonwealth contractor, which also means that resolving service requests may cross Contract boundaries. Therefore DSD-OPS-HLPDSK has been drafted to work when those other activities are performed by the Contractor or another party. As a result of the interaction between different ICT System related activities solving a user ‘service request’ also spans DSDs (and may span contracts). Figure 2 illustrates the process for resolving services requests across DSDs. Drafters should refer to the guidance in section 1 of DSD-OPS-HLPDSK (and DSDs for Systems Administration and Software Support Services), for further information.

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Figure 2: Service Request Resolution Logic

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OPS Template. DSD-OPS-Template provides a template DSD for describing Operating Support Services. Drafters should refer to the guidance in section 1 of DSD-OPS-Template for further information.

Drafters must add a subclause to clause 4.4 for each additional group of Operating Support Services to be added to the Contract (Support), as described by a separate DSD. Once developed, additional DSDs must be listed in the CSRL at SOW Annex B. Each additional subclause should be in the form of the optional clause shown below.

Related Clauses: Draft SOW Annex B, CSRL ‘OPS’ entries

DSD-OPS-Template.

DSD-OPS-HLPDSK, Help Desk Services.

Draft SOW Annex C, CDRL ‘OPS’ entries and associated DIDs that are referenced from the ‘OPS’ DSDs.

Draft SOW Annex D, for referenced manuals that describe Operating Support procedures.

Optional Clauses:

The Contractor shall provide […INSERT SUMMARY DESCRIPTION OF THE REQUIRED OPERATING SUPPORT SERVICES…] Services in accordance with CSRL Line Number OPS-[…INSERT CSRL NUMBER…].

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5. ENGINEERING SUPPORT


Status: Optional (but must be used when Engineering Services are required under the Contract (Support))

Purpose: To define the requirements for Engineering Services and related work for the Contract (Support) through both this clause of the SOW and the associated DSDs.

Policy: DI(G) LOG 4-5-012, Regulation of Technical Integrity of Australian Defence Force Materiel

DI(N) ADMIN 37-15, Assuring the Safety, Fitness for Service and Environmental Compliance of Naval Capability

DI(N) ADMIN 37-16, Navy Regulatory System

DI(N) LOG 47-3, Technical Regulation of Navy Materiel

Guidance: This clause should be included if the Contract (Support) requires the provision of Engineering Services. There may be support contracts that exclude Engineering Support (eg, these could be exclusively for the provision of Supply or Training Services). A Contract (Support), which is primarily for the provision of Maintenance Services, will often contain some level of requirement for Engineering Services in relation to engineering investigations of defects, CM, or engineering dispositions for temporary and non-standard repairs.

In-service Engineering Services have a different emphasis to acquisition engineering, and involves such activities as:

a. Technical Data review (known as Technical Information Review under the Aerospace TRF);

b. baseline management;

c. defect management;

d. failure/reliability monitoring;

e. Materiel Safety management;

f. supportability analyses;

g. obsolescence management;

h. change management;

i. software ‘maintenance’, and

j. modification development.

If the Contract (Support) does not contain any Engineering Support requirements, then the heading should be retained, but the words ‘Not used’ should be inserted in brackets at the end (eg, “Engineering Support (Not used)”). All of the lower-level clauses of clause 5 may then be deleted.

The demand for many Engineering Services can be hard to scope prior to entering into a contract; for example, the number and scope of required modifications will be unknown. Accordingly, many tasks may be managed as S&Q Services. An alternative to some S&Q Services is a Contractor Standing Capability (CSC), managed through a separate DSD (refer clause 5.5), and requiring additional management procedures. Drafters should consider the optional CSC module when developing clause 5.

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The following diagram shows the general structure of SOW clause 5 and its associated DSDs and DIDs.

Engineering Support SOW Structure

Related Clauses: Maintenance Support (SOW clause 6 and DSDs), for the Maintenance actions associated with the implementation of Deviations and Non-Standard Repairs and the incorporation of Modification Orders and Technical Instructions.

Supply Support (SOW clause 7 DSDs), for the Supply interfaces with Engineering Services (eg, in relation to Obsolescence management and Supply aspects of ECPs).

Support Resources (SOW clause 9), in particular for Key Persons (SOW clause 9.1.2) and Technical Data (SOW clause 9.2).


5.1 Engineering Support Management Planning


Status: Core (if Engineering Support is required)

Purpose: To identify the requirement for the Engineering Support planning document.

Policy: ABR 6492, RAN Regulatory Framework and Certification Manual

Technical Regulation of ADF Materiel Manual - Land

AAP 7001.053, electronic Technical Airworthiness Management Manual

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Guidance: The drafter must determine whether Engineering Support planning requirements can be included in the SSMP, or if a separate Contractor Engineering Management Plan (CEMP) is required. This decision is often discretionary, and dependent upon the scope of the workload (if the Contract (Support) covers several SSCCs), and the need to manage Engineering Support functions separate from other support functions. Drafters should also refer to the previous guidance for SOW clauses 3.2 and 3.2.1 regarding the ‘roll-up’ of management plans.

If the scope of Engineering Support issues for the Contract is concise, then embedding the basic CEMP requirements in the SSMP may be sufficient. A stand-alone plan will often be preferable, however, in order to demonstrate compliance with TRF requirements (eg, where the Contractor must be an AEO).

TRF requirements relating to Engineering Support are contained in the policy manuals listed above. Drafters should refer to the applicable policies (under the main heading), the manuals identified above, and their TRAs for further advice. If Engineering Services are to be provided in accordance with TRF requirements, then AEO status or a demonstration of compliance may also need to be formally established (see guidance for clause 5.4). (Note that Approved Maintenance Organisation / Accredited Maintenance Organisation (AMO) requirements, which may include a level of engineering responsibility, are addressed in clause 6 of the SOW). If the Contract covers several areas such as a range of Engineering, Maintenance, and Supply Services, then a separate CEMP will usually be more practical.

Having determined whether or not a separate CEMP is required, the optional SOW clause should be chosen and the reference to the selected plan should be edited, as per the ‘Notes to drafters’ in the draft SOW.

DID-ENG-CEMP identifies the major requirements for a CEMP, including those needed to manage Engineering Services in the context of the Contract, and additional TRF requirements. A note at the start of clause 6 within the DID explains how the references to the TRF manuals have been included for additional guidance. Although further tailoring may not be required, drafters should review DID-ENG-CEMP to ensure that all required planning aspects will be covered.

DSD-ENG-SERV provides a framework for developing system modifications, allowing individual modification programs to be scoped within additional DSDs, CCPs or as CSC tasks. DSD-ENG-SERV includes clauses for a separate Systems Engineering Management Plan (SEMP) and, if engineering changes require the application of ILS practices to address Supportability, an Integrated Support Plan (ISP). DIDs for both of these plans are available from the standard assets for ASDEFCON (Complex Materiel) Volume 2; however, if the drafter would prefer these to be rolled up into the CEMP, then DID-ENG-CEMP will need to be modified to include the essential components of each plan and DSD-ENG-SERV tailored accordingly.

Software-specific engineering-management requirements may be captured in the Software Support Plan (SWSP), defined by DID-ILS-SW-SWSP or, if more significant development is required, by the Software Management Plan (SWMP) defined by DID-ENG-SW-SMP (noting that both of these DIDs are available from the standard assets for ASDEFCON (Strategic Materiel)). The SWSP is called out by DSD-ENG-SW; however, an optional clause allows the function to be rolled-up into the CEMP, if required. DID-ENG-CEMP is ‘self-tailoring’ to include the essential components of an SWSP when a separate SWSP is not requested. The SWMP is also called out by DSD-ENG-SW, but may be rolled-up into the SEMP with appropriate modification.

CM is an important part of Engineering Support that also governs Maintenance and Supply activities. The CM Plan (CMP) can be called out by DSD-ENG-CM; however, it can also be rolled-up into the CEMP, if required by the drafter. DID-ENG-CEMP is ‘self-tailoring’ to include the essential components of a CMP when a separate CMP is not requested.

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In-Service Materiel Safety (System Safety) program planning may also be included within the CEMP or as a separate In-Services Materiel Safety Plan (IMSP). The need for a separate IMSP will depend on the system-level responsibilities of the Contractor and the scale of expected design / configuration changes that are likely to have safety implications. DID-ENG-CEMP is ‘self-tailoring’ to include the essential components of an IMSP when a separate IMSP is not requested.

DID-ENG-CEMP may also need to be tailored to include any other subordinate engineering plans required for TRF purposes, or to suit other individual requirements of the Engineering Services being sought.

If planning for the management of Engineering Support is to be included in the SSMP, then the drafter must review DID-SSM-SSMP and ensure that the self-tailoring provisions to include Engineering planning are adequate. If the scope of Engineering Support planning is reduced or specific requirements are needed, then the DID-SSM-SSMP will need to be tailored accordingly.

Related Clauses: DSD-ENG-SERV, which defines Engineering management and other requirements and may be supported by the IMSP, SEMP, ISP and SWMP as subordinate plans.

DSD-ENG-CM, which defines CM Service requirements and may be supported by a CMP or CM planning requirements rolled up into the CEMP.

DSD-ENG-CSC and three associated DIDs, from the CSC Module for when a CSC is included in the Contract.

DID-ENG-CEMP, which specifies requirements for the CEMP.

DID-SSM-SSMP, which specifies requirements for the Support Services Management Plan and may include rolled-up planning requirements if a stand-alone CEMP is not required.

DID-ENG-AEO, which sepecfies requirements for an Authorised / Accredited Engineering Organisation Application, supported by the CEMP and other data items as evidence.

DID-ENG-CMP, which specifies requirements for a Configuration Management Plan (may be rolled-up into the CEMP).

DID-ENG-IMSP, which specifies requirements for an In-service Materiel Safety Plan (may be rolled-up into the CEMP).

DID-ILS-SW-SWSP (ASDEFCON (Strategic Materiel)), which specifies requirements for a Software Support Plan (may be rolled-up into the CEMP).

DID-ENG-MGT-SEMP-2 (ASDEFCON (Complex Materiel) Volume 2), which specifies requirements for a subordinate Systems Engineering Management Plan.

DID-ENG-MGT-ISP-2 (ASDEFCON (Complex Materiel) Volume 2), which specifies requirements for a subordinate Integrated Support Plan.

DID-ENG-MGT-SMP (or DID-ENG-MGT-SWMP from ASDEFCON (Strategic Materiel)), which specifies requirements for a subordinate Software Management Plan (may be rolled-up into the SEMP).


5.2 Engineering Support Reporting



Purpose: To identify the requirements for reporting the performance of Engineering Services.

Policy: Nil

Guidance: Engineering Support reporting is managed as a sub-report of the CSSR. This report may also be delivered separately from the rest of the CSSR, if required, by tailoring the CDRL. This report would typically be delivered for review in

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preparation for an Engineering Support Performance Review (ESPR), as requested by SOW clause 5.3. The report primarily addresses the Contractor’s performance in providing Engineering Services.

Reports and reviews do not need to be coordinated on a one-for-one basis (eg, the Engineering Support component of the CSSR could be scheduled for every six months with every second report scheduled for an annual ESPR or CSPR). The frequency for delivery of reports may vary from one contract to the next, depending upon the level of visibility and Engineering Support activity expected or the frequency of payment for these Services.

Drafters do not need to change SOW clause 5.2, but must tailor the CDRL for the delivery of the Engineering Support component of the CSSR individually or as part of the combined report. Refer to the guidance for SOW clause 3.4 in regard to rolling-up reports and reviews as part of the communications strategy.

Related Clauses:

DID-SSM-CSSR, which specifies the requirements for a CSSR.

Draft SOW clause 3.4.1, which addresses the inclusion of a CSSR.

Draft SOW clause 5.3 in relation to Engineering Support Reviews.

CDRL Line Number MGT-350e, separate delivery of the Engineering Support portion of the CSSR, if required.


5.3 Engineering Support Reviews



Purpose: To identify the requirements for Engineering Support Performance Reviews (ESPRs).

Policy: Nil

Guidance: There is only one level of Engineering Support review in the SOW, the ESPR, which may be scheduled independently or rolled up into the CSPR. If necessary for larger-scale contracts, two levels of review can be achieved if the CSPR acts as a higher-level review to the ESPR.

Additional reviews are required to support a Systems Engineering development cycle (eg, System Requirements Review, System Definition Review, Preliminary Design Review, and Detailed Design Review). These reviews, specific to the development process, are addressed through DSD-ENG-SERV managing Major Changes (ie, Class 1 ECPs). DSD-ENG-SERV also includes the covering management clauses for these System Reviews, which are separate from the routine ESPR, but which will be summarised by the CSSR report on engineering activities and therefore included in the ESPR or CSPR, as applicable.

The drafter needs to determine the appropriate level of review activity for Engineering Support. If the ESPRs are to be rolled up into CSPRs, then Option A should be selected. If separate ESPRs are required, then Option B should be selected and the review frequency inserted, as per the notes to drafters. Note that, by default, an ESPR will be rolled up into a CSPR when they fall in the same month. If two levels of review are required, the ESPR clause (Option B) should be selected, and the requirements for the CSPR amended, if required, to include a higher-level review of Engineering Services.

Depending on the plan option selected under clause 5.1, drafters should edit the clauses referring to the appropriate plan.

Related Clauses:


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Draft SOW clause 5.2, Engineering Support Reporting.

DSD-ENG-SERV clause 6.2.10, Conduct of System Reviews.


5.4 Technical Regulation of Engineering Support

Sponsor: DAVREG-DGTA (Aerospace)

Director of Technical Regulation - Navy (Maritime)

Director Technical Regulation - Army (Land)

Status: Optional / Special Inclusion (must be included if TRF requirements apply to the provision of Engineering Services or if the Contractor is required to be an AEO or to be evaluated by an AEO for the suitability of their Engineering processes)

Purpose: To define the TRF requirements associated with providing Engineering Services under the Contract.


DI(G) OPS 02-02, Australian Defence Force Airworthiness Management

AAP 7001.048, ADF Airworthiness Manual

AAP 7001.053, electronic Technical Airworthiness Management Manual (eTAMM)

AAP 8000.010, ADF Operational Airworthiness Manual

Technical Regulation of ADF Materiel Manual – Land (TRAMM-L)

ABR 6492, Navy Technical Regulations Manual (NTRM)

DEFLOGMAN Part 2, Volume 9, Defence Explosive Ordnance Manual

DI(N) ADMIN 37-15, Assuring the Safety, Fitness For Service and Environmental Compliance Of Naval Capability



Guidance: If Engineering Services are to be subject to TRF requirements (eg, seaworthiness, mission-worthiness, airworthiness or otherwise being operationally fit for purpose), then the appropriate technical regulatory requirements for the applicable environment must be applied. For aerospace requirements, a Contractor with Mission System or major subsystem responsibilities would need to become an AEO. For maritime systems, the Contractor would need to be assessed by an AEO as being able to comply with TRF requirements; however, the degree of assessment may vary between SPOs and in relation to the safety critical nature of the Products Being Supported. For land systems, there may be a need for the Contractor to become an Accredited Engineering Organisation (AEO) (same acronym used) or assessed by an AEO as being able to comply with TRF requirements. In each case, there is generally a need to review Contractor plans and some need for an audit or other assurance that the relevant TRF manual will be / is being followed.

Drafters should be aware that DID-ENG-AEO, ‘AEO Application’, has been drafted to have application to all TRFs. Under the Aerospace TRF, it is the document that applies for the Contractor to become an AEO. Under the Land and Maritime TRFs, it includes an ‘Application to Demonstrate Compliance with the TRAMM-L under the Land TRF’ and an ‘Application to Demonstrate Compliance with the NTRM under the Maritime TRF’. For the Land and Maritime TRFs, this ‘application’ provides the objective evidence that the Contractor is competent to deliver compliant Engineering Services, as required under the Contract, in accordance with the respective TRF manual.

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If TRF requirements are not applicable to the Engineering Services being provided under the Contract (Support), then the standard clauses in the SOW template should be replaced with a single clause 5.4.1 stating ‘Not used’.

If TRF requirements are applicable to the Engineering Services, drafters must seek advice from the relevant TRAs to ensure that the Contract clauses included in the SOW, DSDs and associated DIDs, represent the most up-to-date requirements for contracting.

Aerospace: The objective of this clause is to ensure an appropriate Engineering Support framework is in place to enable the continued technical and operational airworthiness of aircraft. All Contracts that include Engineering Support for technical equipment that has a technical or functional interface with ADF aircraft MUST invoke a contractual requirement for the Contractor to become an AEO and comply with Regulations 1, 2 and 3 in Section 2 of the eTAMM. Drafters should be aware of the SOW clauses for Technical Regulation (part of the special ‘Aerospace Module’) that amends clause 5.4 of the ASDEFCON (Support) template when the Services include the provision of aerospace-related services. AAP 7001.054 also contains DIDs and a DSD for Aircraft Structural Integrity (ASI) aspects.

DAVREG-DGTA is the primary point of contact for advice regarding the applicability of the technical airworthiness regulations to Engineering Support. Aerospace Systems Division QMS Procedure 3-2-1-4 contains applicable guidance.

Land: The objective of this clause is to ensure an appropriate Engineering Support framework is in place to enable the continued technical and operational mission worthiness of nominated systems. Contracts for the nominated systems will require the Contractor to comply with the applicable regulations defined in the TRAMM-L. Drafters should also refer to the guidance above in relation to DID-ENG-AEO.

Advice from DTR-A should be sought when applying these clauses.

Maritime: The objective of this clause is to ensure an appropriate Engineering Support framework is in place to enable the continued technical and operational seaworthiness of vessels. ABR 6492 (NTRM) requires Defence organisations (eg, CASG support agencies) providing Engineering Support to maritime materiel to achieve AEO status. Additionally, “Non ADO organisations [including contractors] involved in the design, construction and Maintenance of ADF maritime materiel will be required to comply with the NTRF [Navy Technical Regulatory Framework] through contractual requirements with the relevant AEO”.

Consistent with the NTRM, advice must be sought from the ‘engineering authority’ for the specific maritime systems (as per ABR 6492, volume 2, section 5) when developing clauses for the individual NTRF requirements for a maritime system. Drafters should also refer to the guidance above in relation to DID-ENG-AEO. An example of a possible clause is provided under the heading, “Optional Clauses”, below.

Electronic: Electronic systems fitted to various platforms may be subjected to more than one of these TRF requirements and clause 5.4.1 should be amended accordingly to include the relevant references, or a new clause added, to explain any particular division of responsibilities for technical regulatory requirements. DI(G) LOG 4-5-012 paragraphs 10 and 11 provides policy guidance for systems and equipment that are subject to more than one TRF, which usually results in the selection of a lead TRF.

Explosive Ordnance: If, in rare cases, the contractor is to manage or undertake Engineering work on guided weapons or munitions, the drafter should seek advice from Explosive Ordnance Branch (EOB), JLC, regarding technical regulatory and audit requirements that may be applicable to those Products.

All: Drafters should consider COC clause 1.4, Operative Date, and the need for a Contractor’s Engineering processes to be evaluated against a TRF, as defined in

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the eTAMM, TRAMM-L, or ABR 6492, prior to the delivery of Engineering Services. Note that, by using the OD clause, contract termination would be possible if a Contractor failed to meet the needs of the applicable TRF by the OD. Compliance with an applicable TRF was one of the original reasons for creating the OD clause.

In developing individual sub-clauses, drafters should also consider the relationship with SOW clause 11, Quality Management. It may be suitable that compliance with the TRF be integrated with Quality Management activities (eg, sub-clauses to 5.4 may indicate that TRF compliance audits will be a specific component of quality audits, with shortfalls automatically invoking clause 11.3 for non-conformance).

Related Clauses: DID-ENG-CEMP, which specifies requirements for the CEMP.

DID-ENG-AEO, which specifies requirements for the AEO application.

COC clause 1.4, Operative Date.

Draft SOW clause 6.4, Technical Regulation of Maintenance Support.

Draft SOW clause 11, Quality Management.

Optional Clauses: Refer to applicable TRA for guidance.

For the Maritime TRF, the following clause could form the basis of an appropriate clause for the application of the NTRM to a Contract (Support):

Note to drafters: Amend the following clauses to reflect the required plans for the draft Contract:

5.4.1 Subject to clauses 5.4.2 and 5.4.3, the Contractor shall ensure that Engineering Services are performed in accordance with the following Technical Regulatory Framework regulations defined in Chapter 1, Section 2, Volume 1 of ABR 6492, Navy Technical Regulations Manual:

a. Regulation No 1, with the words ‘under the NTRF’ replaced with ‘through the Approved CEMP and Approved QP’;

b. all regulations relating to technical risk management;

c. all regulations relating to engineering change management, with the exception of:

(i) the words in Regulation No 3, ‘requirements in NTRM Vol 2, Sect 2’, are replaced with ‘requirements of the NTRM Vol 2, Sect 2 identified in DSD-ENG-CM’; and

(ii) Regulation Nos 3.5 and 3.5.1;

d. all regulations relating to defective and unsatisfactory materiel, with the exception that Regulation No 4 is amended to read, ‘The Contractor shall implement appropriate mechanisms to ensure that all Contractor and Subcontractor personnel, regardless of position or appointment, report all instances of defective or unsatisfactory materiel’;

e. the engineering aspects of the regulations relating to Maintenance management, noting that the authority for deferring either mandatory or non-mandatory Maintenance must be an individual with appropriate engineering competence;

f. all regulations relating to delegation of engineering authority, with the exception of Regulation No 6.2;

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g. all regulations relating to authorisations of engineering authorities, with the exception of Regulation Nos 7, 7.1, 7.3 and 7.3.4.4, and with the following amendments:

(i) in Regulation No 7.3.2, the words ‘defined by the TRA’ are replaced with ‘defined by the Contractor in its Approved CEMP’; and

(ii) in Regulation No 7.3.3, the words ‘that conform to the NTRF’ are replaced with ‘authorised through the Approved CEMP and Approved QP’;

h. Regulation No 8.2; and

i. Regulation No 10.

5.4.2 For the purposes of this clause 5.4, the following terms from ABR 6492 shall be interpreted as follows:

a. ‘ADF maritime materiel’ means the Products being supported under the Contract;

b. ‘Engineering Management Plan’ or ‘EMP’ means the Approved CEMP;

c. ‘executive’ or ‘executive authority’ means the Commonwealth Representative; and

d. ‘Authorised Engineering Organisations’ or ‘AEOs’ means the Contractor.

5.4.3 In interpreting the application of the regulations identified at clause 5.4.1 to the provision of Engineering Services, the Contractor shall be guided by the requirements of Volume 2 of ABR 6492.

5.5 Engineering Services


Status: Core (if Engineering Support is required; however, individual lower-level draft SOW clauses are optional)

Purpose: To define the required Engineering Services.

Policy: Nil

Guidance: Drafters should be aware that DSDs are not necessarily independent of each other and that the selection of DSDs and the creation of any new DSDs should consider these relationships.

Drafters must tailor the subclauses to clause 5.5 for each group of Engineering Services to be included in the Contract (Support), as described by a separate DSD listed in the CSRL, SOW Annex B. Details are given below for the draft DSDs included in the ASDEFCON (Support) templates, and for ECPs, which would need to be developed by drafters when significant design change activities are anticipated under the Contract.

Routine Engineering Services. DSD-ENG-SERV contains the generic Engineering Services that must be performed for all contracts requiring routine Engineering Support. Whereas SOW clause 5 is predominantly about planning and Engineering Services from a Contract and TRF perspective, DSD-ENG-SERV relates specifically to the management of engineering work activities. DSD-ENG-SERV also includes the essential System Engineering program requirements for more significant modifications undertaken through a specific DSD for a modification, CCP or CSC tasking. Accordingly, this DSD is a ‘head’ DSD for Engineering Support, and will almost certainly be required before any other

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Engineering Services can be undertaken. Drafters should refer to the guidance in section 1 of DSD-ENG-SERV for further information.

If a Contractor is not required to provide on-going Engineering Services and will ONLY undertake other functions, such as part of a CM program that is led by another party, then the SOW clause and associated CSRL entry should be deleted.

Contractor Standing Capability. The purpose of the Contractor Standing Capability (CSC) is to provide an on-going pool of expertise that is primarily used for specialist Engineering, design activities and similar Services. The CSC has been aligned to engineering activities but can be expanded for use in other areas where:

a. expertise can be difficult to obtain and maintain; and

b. the scope of work can be difficult to define upfront.

If a CSC were not to be implemented, the required work would be undertaken as S&Q Services, which usually incurs higher labour charges and reduced skills continuity, due to the stop/start nature of S&Q Services. While a CSC should improve efficiency, it is dependent upon a minimum amount of on-going ad hoc work in order to be viable. Including a CSC through COC clause 14, draft SOW clause 5.5 and DSD-ENG-CSC does not add to the scope of Engineering Services, but allows the work identified in other DSDs as S&Q Services to be performed by the CSC.

Including a CSC requires changes to this clause, the COT, COC, CSRL, CDRL, and DID-ENG-CEMP, plus the addition of new DIDs and DSD-ENG-CSC. Drafters should refer to the CSC Module, particularly the guidance document “1_Draft CSC General – V3.1” for a detailed explanation of the changes required.

If a CSC is not required (ie, ad hoc Engineering Services can be more efficiently managed as S&Q Services), reference to the CSC must be left out of the draft Contract.

Configuration Management Services. DSD-ENG-CM contains the requirements for the CM of the Products Being Supported under the Contract (Support). Drafters should note that CM is fundamental to the effective management of complex Commonwealth assets. Drafters should refer to the guidance in section 1 of DSD-ENG-CM for further information.

If CM is not required (eg, because CM is undertaken by a Commonwealth agency or Assosciated Party), the SOW clause and associated CSRL entry should be deleted.

Software Support Services. DSD-ENG-SW is specifically intended for the on-going support of software. Although often referred to as ‘software maintenance’, software support has been included under Engineering Services because the outcomes of software support are changes to the software’s configuration, even if only minor. Software support includes ‘corrective’, ‘adaptive’, ‘preventive’ and ‘perfective’ maintenance.

DSD-ENG-SW also includes the framework for conducting major software development activities and release programs, where non-trivial improvements in software functionality or performance are sought. Software development activities are mananged as software specific requirements applied to the engineering change program in DSD-ENG-SERV (in multiple clauses), including the use of ECPs in accordance with DSD-ENG-ECP (which includes and annex for Software Change Proposals (SWCPs)). Drafters should refer to the guidance in section 1 of DSD-ENG-SW for further information.

Depending on the scope of Services, DSD-ENG-SW may be used in conjunction with DSD-OPS-HLPDSK and/or DSD-MNT-SA. Refer to Figure 2 and guidance for SOW clause 4.4 for an explanation of how a service request from a user can progress to a software change. Note also that some of the clauses in DSD-MNT-

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SA could be relocated into DSD-ENG-SW if that better suits the Commonwealth’s preferrences for organising and managing Serices.

If software support Services are not required, the SOW clause and associated CSRL entry should be deleted.

Other Engineering Services. Drafters must add a subclause to clause 5.5 for each additional group of Engineering Services to be added to the Contract (Support), as described by a separate DSD listed in the CSRL, SOW Annex B. Each additional subclause should be in the form of the optional clause shown below.

Related Clauses: Draft SOW Annex B, CSRL ‘ENG’ entries.

DSD-ENG-SERV, Routine Engineering Services.

DSD-ENG-CM, Configuration Management Services.

DSD-ENG-SW, Software Support Services.

DSD-ENG-CSC, from the CSC Module for when a CSC is include in the Contract.

Draft SOW Annex A, List of Products Being Supported (for the allocation of engineering responsibility, as applicable).

Draft SOW Annex C, CDRL ‘ENG’ entries and associated DIDs that are referenced from the ‘ENG’ DSDs.

Draft SOW Annex D, for referenced manuals that describe Engineering Support regulations and/or procedures.

DID-ENG-CEMP, which specifies requirements for the CEMP.

DID-ENG-CMP, which specifies requirements for the CMP.

DID-ENG-AEO, which specifies requirements for an AEO Application.

DID-ENG-MGT-SEMP-2, which specifies requirements for a Systems Engineering Management Plan (from ASDEFCON (Complex Materiel) Volume 2).

DID-ENG-MGT-ISP-2, which specifies requirements for an Integrated Support Plan (from ASDEFCON (Complex Materiel) Volume 2).

DID-ENG-SW-SMP / DID-ENG-SW-SWMP, which specifies requirements for a Software Management Plan (from ASDEFCON (Strategic Materiel)).

DID-ENG-SWSP, which specifies requirements for a Software Support Plan.

See also SOW clause 9.2 for Technical Data, including Engineering Drawings.

Optional Clauses:

The Contractor shall provide […INSERT SUMMARY DESCRIPTION OF THE REQUIRED ENGINEERING SERVICES…] Services in accordance with CSRL Line Number ENG-[…INSERT CSRL NUMBER…].

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6. MAINTENANCE SUPPORT


Status: Optional (but must be used when Maintenance Services are required under the Contract (Support))

Purpose: To define the requirements for Maintenance Services and related work for the Contract (Support) through both this clause of the SOW and the associated DSDs.

Policy: DEFLOGMAN Part 2, Volume 10, Chapter 2, Materiel Maintenance Policy

DEFLOGMAN Part 2, Volume 10, Chapter 17, Contingency Maintenance


DI(G) OPS 05-3, Civilians in Support of Australian Defence Force Operations (applicable only if Maintenance Support is to be provided in the area of operations)

AAP 7001.059, ADF Aviation Maintenance Management Manual

Guidance: This clause should be included if the Contract (Support) requires the provision of Maintenance Services. There may be support contracts that exclude Maintenance Support, such as those exclusively for the provision of Engineering, Supply, or Training Services. If Operating Support Services are required, which require complementary Maintenance Services then this clause will be required.

If the Contract (Support) does not contain any Maintenance Support requirements, then the heading should be retained, but the words ‘Not used’ should be inserted in brackets at the end (eg, “Maintenance Support (Not used)”). All of the lower-level clauses of clause 6 should then be deleted.

Maintenance Support SOW Structure

Related Clauses: Operating Support (clause 4).

Engineering Support (clause 5), for the Engineering actions associated with the development of Deviations, Non-Standard Repairs, Modification Orders and Technical Instructions.

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Supply Support (clause 7), for the Supply interfaces with Maintenance Services (eg, in relation to the delivery of Non-RIs).



6.1 Maintenance Support Management Planning


Status: Core (if Maintenance Support is required)

Purpose: To identify the requirements for the Maintenance Support planning document.

Policy: TRF documents applicable to the provision of Maintenance Services (ie, TRAMM-L, eTAMM, ABR 6492).

DEFLOGMAN Part 2, Volume 10, Chapter 2, Materiel Maintenance Policy

DEFLOGMAN Part 2, Volume 10, Chapter 17, Contingency Maintenance Policy.


AAP 7001.059, ADF Aviation Maintenance Management Manual

Guidance: The drafter must determine whether Maintenance management planning requirements can be included in the SSMP, or if a separate Maintenance Management Plan (MMP) is required. This decision may be discretionary and dependent upon the scope of the workload (eg, if the Contract (Support) covers several SSCCs), and the need to manage Maintenance Support functions separate from other support functions. Drafters should also refer to the previous guidance for SOW clauses 3.2 and 3.2.1 regarding the ‘roll-up’ of management plans and the SSMP.

If the scope of Maintenance Support for the Contract is concise (eg, relates only to the deeper Maintenance of similar Repairable Items at a single location), then embedding the basic MMP requirements in the SSMP may be sufficient. If Maintenance Support must be provided in accordance with TRF requirements, then a separate MMP will normally be required and is likely to be more efficient for document review purposes. For aerospace systems, an MMP must be submitted with the application for gaining AMO status. If the Contract covers several areas such as a range of Maintenance activities in various locations, Engineering and Supply Services, then a stand-alone MMP will often be more practical.

Drafters should determine whether or not a separate MMP is required, then select the appropriate optional SOW clauses and edit the references to the appropriate selected plan, as per the ‘Notes to drafters’ in the draft SOW.

DID-MNT-MMP identifies the major requirements for an MMP, including those needed to manage Maintenance Services in the context of the Contract, and TRF additional requirements. A note at the start of clause 6 in the DID explains how the references to the TRF manuals have been incorporated for providing additional guidance. Although further tailoring may not be required, drafters should review DID-MNT-MMP to ensure that all required planning aspects will be covered

If planning for the management of Maintenance Support is to be included in the SSMP, then the drafter must review DID-SSM-SSMP and ensure that the self-tailoring provisions to include Maintenance planning are adequate. If the scope of Maintenance Support planning is reduced or specific requirements are needed, then the DID-SSM-SSMP will need to be tailored accordingly.

Related Clauses: DID-MNT-MMP, which specifies the requirements for a Maintenance Management Plan.

DID-SSM-SSMP, which specifies the requirements for a Support Services Management Plan.

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CDRL Line Number MNT-100.


6.2 Maintenance Support Reporting

6.2.1 Maintenance Support Summary Reports



Purpose: To define the requirements for reporting on the performance of Maintenance Services over a major reporting period.

Policy: Nil

Guidance: Maintenance Support reporting is managed as a sub-report for the CSSR. This report may also be delivered separately from the rest of the CSSR, if required, by tailoring the CDRL. This report would typically be delivered for review in preparation for a Maintenance Support Performance Review (MSPR), as requested by clause 6.3 of the SOW. The report primarily addresses the Contractor’s performance in providing Maintenance Services against the requirements of the Contract.

Reports and reviews do not need to be coordinated on a one-for-one basis (eg, the Maintenance Support component of the CSSR could be scheduled for every six months with every second report scheduled for an annual MSPR or CSPR). The frequency for delivery of reports may vary from monthly to one year, depending on the level of visibility and Maintenance Support activity expected or the frequency of payment for these Services. If more regular Maintenance reports are required to assist with on-going Maintenance management (rather than for reporting against Contract performance), then the Maintenance Progress Reports should be considered for inclusion (refer clause 6.2.2).

Drafters do not need to change SOW clause 6.2.1, but must tailor the CDRL for the delivery of the Maintenance Support portion of the CSSR individually or as part of the combined report. Refer to the guidance for SOW clause 3.4 in regard to rolling-up reports and reviews as part of the communications strategy.

Related Clauses:


Draft SOW clause 6.2.2, Maintenance Progress Reports.

Draft SOW clause 6.3.1, Maintenance Support Performance Reviews.

Draft SOW clause 3.4.1, which addresses the inclusion of a CSSR.

CDRL Line Number MGT-350f, for the separate delivery of the Maintenance Support portion of the CSSR, if required.


6.2.2 Maintenance Progress Reports


Status: Optional

Purpose: To define the requirements for regular Maintenance reports to provide oversight of more active Maintenance contracts and to assist with the coordination of Defence and Contractor Maintenance-related activities.

Policy: Nil

Guidance: Maintenance Progress Reports are intended to monitor the provision of on-going Maintenance Services that cover a broad scope of Maintenance activities or where considerable activity is expected on a monthly basis. The Maintenance Progress Report is particularly useful where there is a high degree of interaction between

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Defence and Contractor Maintenance activities and the reporting feeds into management planning activities of both Defence and the Contractor for the next week or few months, as applicable.

There is no standard DID for this report. Due to the range of Maintenance activities managed by CASG contracts, a standard DID is not possible. A DID may be proposed by the drafter and refined during contract negotiations, or the contents could be defined in the Contractor’s MMP. There are no constraints on the content of the report, although inclusion of financial or commercial factors should be avoided. The DID may seek Maintenance scheduling information for the forthcoming period as well as a performance summary from the preceding time period. Progress on the installation of modifications or software changes, completion of S&Q Services tasks, throughput of Maintenance repairs, results or progress of any Maintenance investigations, and progress against related performance measures would be typical subjects for this report.

The need for Maintenance Progress Reports may be negated by the inclusion of Resident Personnel, which may include the Commonwealth Representative. Conversely, and if Maintenance activities are geographically dispersed, this report may be defined for the purpose of assisting Resident Personnel.

DMS data (clause 2.3) should be considered as an alternative to separately prepared Maintenance Progress Reports or simply as the method for delivery of the required information. It may be possible that on-line access to the Contractor’s Maintenance Management System (MMS) through the DMS is sufficient, or that standard reports from the MMS can be ‘automatically’ delivered via the DMS. These types of issues should be discussed with the Contractor during contract negotiations and / or Phase In, as appropriate.

If the drafter determines that only one level of reporting is required (eg, Maintenance Support component of the CSSRs), then the Maintenance Progress Reports clause in the draft SOW should remain as ‘Not used’.

If the drafter determines that a second level of reporting is required (ie, Maintenance Progress Reports), then the drafter should copy the optional clause below to the SOW. The frequency of the report submission should be edited in the CDRL, taking into account the relationship between Maintenance Progress Reports and any Maintenance Progress Reviews.

Progress reports have been included in the template as an option for Maintenance but may be used with other SSCCs that have a frequent reporting requirement. To apply progress reports to other SSCCs, the structure of clause 6.2 can be imitated in clauses 4.2, 5.2, 7.2 and 8.2. That is, create two headings, similar to clauses 6.2.1 and 6.2.2, demote the existing clause to a level 4 clause (ie, 4.2.1.1, 5.2.1.1, 7.2.1.1 or 8.2.1.1) and insert a ‘progress report’ clause similar to that below (as 4.2.2.1, 5.2.2.1, 7.2.2.1 or 8.2.2.1).

Related Clauses: Draft SOW clause 6.3.2, Maintenance Progress Reviews.

CDRL line to be added by drafter (eg, MNT-120).

Optional Clauses:

A Maintenance Progress Report shall be prepared by the Contractor and delivered to the Commonwealth Representative in accordance with CDRL Line Number MNT-[...INSERT CDRL LINE NUMBER...].

6.3 Maintenance Support Reviews

6.3.1 Maintenance Support Performance Reviews



Purpose: To document the requirements for Maintenance Support Performance Reviews (MSPRs).

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Policy: Nil

Guidance: MSPRs are held to review the provision of Maintenance Services over a drafter-selected reporting period in accordance with the communications strategy for the Contract (Support) (eg, quarterly, six-monthly or annually). The MSPRs may be scheduled independently or rolled up into the CSPR. These reviews also discuss issues impacting Maintenance in the next period.

MSPRs are applicable to small Maintenance contracts, where one annual meeting is sufficient to review the Services provided. They are also applicable to larger contracts where a high-level review is required to summarise and assess the overall performance against the requirements for the provision of Services for the period.

The drafter needs to determine the appropriate level of review activity for Maintenance Support. If the MSPRs are to be rolled up into the CSPRs, then Option A should be selected. If separate MSPRs are required, then Option B should be selected and the review frequency inserted, as per the notes to drafters. Note that, by default, an MSPR will be rolled up into a CSPR when they fall in the same month. If two levels of review are required, the MSPR clause (Option B) should be selected, and the requirements for the CSPR amended, if required. If a further, lower-level review is required, drafters should refer to the guidance for clause 6.3.2.


Related Clauses:

Draft SOW clause 3.4.2, Combined Services Performance Review

Draft SOW clause 6.2.1, Maintenance Support Summary Reports


6.3.2 Maintenance Progress Reviews


Status: Optional (To be used when ongoing Maintenance-related meetings are required)

Purpose: To define the requirements for regular Maintenance-related review meetings, particularly to monitor the provision of ongoing and broadly-scoped Maintenance Services.

Policy: Nil

Guidance: Maintenance Progress Reviews are held on a regular basis (eg, fortnightly or monthly) to review the on-going provision of Maintenance Services and provide a regular forum for planning work and scheduling. These reviews provide the means to discuss the Maintenance Progress Reports, if included in SOW clause 6.2.2, and provide insight into day-to-day Maintenance activities, particularly where coordination with Maintenance activities performed by Defence units is essential.

These reviews are applicable to larger and more active Maintenance contracts that span levels and types of Maintenance (eg, whole of ship or aircraft Maintenance) or where Maintenance is conducted at numerous locations that are remote to the Commonwealth Representative. If Resident Personnel are included, then there may be no need for these reviews. Drafters should be aware that ad hoc meetings (refer SOW clause 3.4.3) can be used to cover intermittent issues if they arise, but these should not be used for regular coordination meetings (being S&Q Services).

If the drafter determines that this review is not required, then the optional Maintenance Progress Review clauses below should not be transferred to the draft SOW, and the existing statement ‘Not used’ should be retained.

If the drafter determines that a second level of review is required (ie, Maintenance Progress Reviews), then the drafter must copy the optional clauses below to the SOW and insert the frequency of the Maintenance Progress Reviews.

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Related Clauses:

Draft SOW clause 3.4.3, Ad Hoc Meetings.

Draft SOW clause 6.3.1, Maintenance Support Performance Reviews.

Draft SOW clause 6.2.2, Maintenance Progress Reports.

Optional Clauses:

Note to drafters: Insert the required frequency of Maintenance Progress Reviews in the clause below.

The Contractor shall convene with the Commonwealth Representative for Maintenance Progress Review meetings every […INSERT PERIOD IN WORD AND (NUMBER), E.G., ONE(1), THREE(3) AND MONTHS / WEEKS…].

The Contractor shall hold Maintenance Progress Review meetings in accordance with the Approved MMP.

Maintenance Progress Review meetings shall:

a. discuss the Contractor's performance of Maintenance activities, drawing information from the preceding Maintenance Progress Reports;

b. identify and determine actions arising from the Contractor’s performance of activities in the previous period; and

c. identify and determine actions for near-term Maintenance and related engineering and supply activities, including coordination with Commonwealth performed Maintenance activities, if applicable.

Review meetings shall be held at the Contractor's Australian facility, and shall be chaired by the Commonwealth Representative.

6.4 Technical Regulation of Maintenance Support

Sponsor: DAVREG-DGTA (Aerospace)

Director of Technical Regulation - Navy (Maritime)

Director Technical Regulation - Army (Land)

Status: Optional / Special Inclusion (Must be included if TRF requirements apply to the provision of Maintenance Services or if the Contractor is required to be an AMO)

Purpose: To define the required TRF requirements for Maintenance activities.


DI(G) OPS 02-02 Australian Defence Force Airworthiness Management

AAP 7001.053, electronic Technical Airworthiness Management Manual (eTAMM)

Technical Regulation of ADF Materiel Manual – Land (TRAMM-L)

ABR 6492 - Navy Technical Regulations Manual (NTRM)

DEFLOGMAN Part 2, Volume 10, Defence Explosive Ordnance Manual

DI(N) ADMIN 37-15, Assuring the Safety, Fitness For Service and Environmental Compliance Of Naval Capability



Guidance: If Maintenance Services are to be subject to TRF requirements (eg, airworthiness, seaworthiness, mission-worthiness or otherwise being operationally fit for purpose), then the appropriate TRF requirements for the applicable environment must be applied.

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For land and maritime systems, the Contractor may not have to become an accredited or authorised organisation itself, but may be the subject of compliance audit by the applicable Defence AEO. For maritime systems, the degree of assessment may change between SPOs and in relation to safety critical nature of the Products supported. In this case, drafters should consider any overlap with the auditing requirements of clause Error! Reference source not found., Quality Management, to avoid any duplication of work described within the SOW. For aerospace systems, a Contractor with aircraft or aircraft component responsibilities would normally need to be an AMO (different requirements can apply to the Maintenance of S&TE). In each case, there is generally a need to review Contractor plans and some need for an audit or other assurance that the relevant TRF manual will be / is being followed.

If TRF requirements are not applicable to the Maintenance Services (eg, for a commercially-based computer system), then the standard clause in the SOW template should be replaced with a single clause 6.4.1 stating ‘Not used’.

If TRF requirements are applicable to the Maintenance Services, drafters should seek advice from the relevant TRAs to ensure that the Contract clauses included in the SOW, DSDs, and associated DIDs, represent the most up-to-date requirements for contracting.

Drafters should be aware that DID-MNT-AMO, ‘AMO Application’, has been drafted to have application to all TRFs. This includes the maritime environment where the Contractor may become an ‘AEO for maintenance’. Under the Aerospace TRF, it is the document that applies for the Contractor to become an AMO. Under the Land and Maritime TRFs, it includes an “Application to Demonstrate Compliance with the TRAMM-L under the Land TRF” and an “Application to Demonstrate Compliance with the NTRM under the Maritime TRF”. For the Land and Maritime TRFs, this “application” provides the objective evidence that the Contractor is competent to deliver compliant Maintenance Services, as required under the Contract, in accordance with the respective TRF manual.

Aerospace: The objective of this clause is to ensure an appropriate Maintenance Support framework is in place to enable the continued technical and operational airworthiness of aircraft. All Contracts that include Maintenance Support of technical equipment that has a technical or functional interface with ADF aircraft MUST invoke a contractual requirement to become an AMO and comply with Regulations 4 and 5 in Section 2 of the eTAMM. Drafters should be aware of the SOW clauses for Technical Regulation (part of the special ‘Aerospace Module’ that amends clause 6.4 of the ASDEFCON (Support) template when the Services include the provision of aerospace-related services.

DAVCOMP-DGTA is the primary point of contact for advice regarding the applicability of the technical airworthiness regulations to Maintenance. Aerospace Systems Division (ASD) QMS Procedure 3-2-1-11 contains applicable guidance.

Land: The objective of this clause is to ensure an appropriate Maintenance Support framework is in place to enable the continued technical and mission worthiness of nominated systems. Contracts for the nominated systems will be require the Contractor to comply with the applicable regulations defined in the TRAMM-L. Review of documented Maintenance processes and record keeping may be required, as may audits to ensure compliance with the TRAMM-L. Drafters should also refer to the guidance above in relation to DID-MNT-AMO.

Advice from DTR-A should be sought if applying these clauses.

Maritime: The objective of this clause is to ensure an appropriate Maintenance Support framework is in place to enable the continued technical and operational seaworthiness of vessels. Contracts for the Maintenance of ships and submarines will require the Contractor to comply with the ABR 6492, with specific requirements defined by the AEO. Review of documented Maintenance processes and record keeping may be required, as may audits to ensure compliance with ABR 6492.

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Advice from DTR-N and the ‘engineering authority’ (as defined in ABR 6492, volume 2, section 5) for the specific maritime system should be sought if applying this clause. Drafters should also refer to the guidance above in relation to DID-MNT-AMO. An example of a possible clause is provided under the heading, “Optional Clauses”, below.

Electronic: Electronic systems fitted to various platforms may be subjected to more than one of these requirements and draft SOW clause 6.4.1 should be amended accordingly, to include the relevant references, or a new clause added to explain any division of responsibilities for technical regulatory requirements. DI(G) LOG 4-5-012 paragraphs 10 and 11 provides policy guidance on how systems and equipment that are subject to more than one TRF should be handled.

Explosive Ordnance: If, in rare cases, the contractor is to manage or undertake Maintenance work on guided weapons or munitions, the drafter should seek advice from EOB, JLC, regarding additional technical regulatory or audit requirements that may be applicable.

All: Drafters should consider COC clause 1.4, Operative Date, and the need for a Contractor’s Maintenance processes to be evaluated against a TRF, as defined in the eTAMM, TRAMM-L, or ABR 6492, prior to the provision of Maintenance Services. Note that, by using the OD clause, contract termination would be possible if a Contractor failed to meet the needs of the applicable TRF by the OD. Compliance with an applicable TRF was one of the original reasons for creating the OD clause.

In developing individual sub-clauses, drafters should also consider the relationship with SOW clause 11Error! Reference source not found., Quality Management. It may be suitable that compliance with the TRF be integrated with Quality Management activities (eg, sub-clauses to 6.4 may indicate that TRF compliance audits will be a specific component of quality audits, with shortfalls automatically invoking clause 11.3 for non-conformance).

Related Clauses:

COC clause 1.4, Operative Date.

Draft SOW clause 5.4, Technical Regulation of Engineering Support.

Draft SOW clause 11, Quality Management.

DSD-MNT-MGT, Generic Requirements for the Management of Maintenance Services.

DID-MNT-MMP, which specifies requirements for the Maintenance Management Plan.

Optional Clauses: Refer to applicable TRA for guidance.

For the Maritime TRF, the following clause could form the basis of an appropriate clause for the application of the NTRM to a Contract (Support):

Note to drafters: Amend the following clauses to reflect the required plans for the draft Contract:

6.4.1 Subject to clauses 6.4.2 and 6.4.3, the Contractor shall ensure that Maintenance Services are performed in accordance with the following Technical Regulatory Framework regulations defined in Chapter 1, Section 2, Volume 1 of ABR 6492, Navy Technical Regulations Manual:

a. Regulation No 1, with the words ‘under the NTRF’ replaced with ‘through the Approved MMP and Approved QP’;

b. all regulations relating to technical risk management;

c. Regulation No 3.1;

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d. all regulations relating to defective and unsatisfactory materiel, with the exception of Regulation No 4;

e. all regulations relating to Maintenance management, noting that the authority for deferring either mandatory or non-mandatory Maintenance must be an individual with appropriate engineering competence;

f. Regulation No 7.2;

g. Regulation No 7.3.3, with the words ‘that conform to the NTRF’ replaced with ‘authorised through the Approved MMP and Approved QP’;

h. Regulation Nos 7.3.4 and 7.4; and

i. Regulation No 10.

6.4.2 For the purposes of this clause 6.4, the following terms from ABR 6492 shall be interpreted as follows:

a. ‘ADF maritime materiel’ means the Products being supported under the Contract;

b. ‘Engineering Management Plan’ or ‘EMP’ means the Approved MMP;

c. ‘executive’ means the Commonwealth Representative; and

d. ‘Authorised Engineering Organisations’ or ‘AEOs’ means the Contractor.

6.4.3 In interpreting the application of the regulations identified at clause 6.4.1 to the provision of Maintenance Services, the Contractor shall be guided by the requirements of Volume 2 of ABR 6492.

6.5 Maintenance Services


Status: Core (if Maintenance Support is required; however, individual lower-level draft SOW clauses are optional)

Purpose: To define the required Maintenance Services

Policy: Nil

Guidance: Drafters should be aware that DSDs are not necessarily independent of each other and that the selection of DSDs and the creation of any new DSDs should consider these relationships.

Drafters must tailor the subclauses to clause 6.5 for each group of Maintenance Services to be included in the Contract (Support), as described by a separate DSD listed in the CSRL, SOW Annex B. Details are given below for the draft DSDs included in the ASDEFCON (Support) templates.

Management of Maintenance Services. DSD-MNT-MGT contains the generic Maintenance management and task-reporting functions that must be performed for all Maintenance of military type equipment (as opposed to commercially-oriented ICT Systems that can be managed using different systems and tools). This clause and the CSRL entry calling up this DSD are required whenever the Maintenance of military equipment is required as part of the Services. The DSD should, once selected, be tailored to the requirements of the individual program. Logically, if this DSD is selected, then at least one other DSD related to the Maintenance Support of military equipment must also be selected to describe the actual Services (eg, DSD-MNT-SERV, Routine Maintenance Services).

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For non-military-specific systems, such as particular ICT Systems or other systems that are not subject to the rigour of Configuration Control placed on major items of military equipment, DSD-MNT-MGT may not be required. Drafters should refer to the guidance in section 1 of DSD-MNT-MGT for further information.

If the Contractor will not be required to provide this style of Maintenance-management Services (eg, for administrative ICT Systems), then the SOW clause and associated CSRL entry should be deleted.

Routine Maintenance Services. DSD-MNT-SERV is intended to be used when the Maintenance of military systems (ie, usually excluding administrative and non-deployable ICT systems) is required to be performed under the Contract. In these circumstances, the SOW clause and CSRL entry related to DSD-MNT-SERV will be required; otherwise, it must be deleted. The DSD should, once selected, be tailored cognisant of DSD-MNT-MGT management requirements that impact this DSD, and any other related DSDs developed by the drafter. Drafters should refer to the guidance in section 1 of DSD-MNT-SERV for further information. If routine Maintenance Services are not required under the Contract, then the SOW clause and associated CSRL entry should be deleted.

Systems Administration Services. DSD-MNT-SA is specifically intended for the systems administration of ICT Systems, where ‘Maintenance’ is conducted quite differently to the Maintenance of weapons platforms and other military systems. Activities include network administration, user account and security administration, etc. If required, the DSD should be reviewed and edited for the individual program. Drafters should refer to the guidance in section 1 of DSD-MNT-SA for further information.

Depending on the scope of Services, DSD-MNT-SA may be used in conjunction with DSD-OPS-HLPDSK and/or DSD-ENG-SW. Refer to Figure 2 and guidance for SOW clause 4.4 for an explanation of how a service request from a user can progress to a systems administration action. Note also that some of the clauses in DSD-ENG-SW could be relocated into DSD-MNT-SA if that better suits the Commonwealth’s preferrences for organising and managing Serices.

If systems administration Services are are not required, then the SOW clause and associated CSRL entry should be deleted.

Drafters must add a subclause to clause 6.5 for each additional group of Maintenance Services to be added to the Contract (Support), as described by a separate DSD listed in the CSRL, SOW Annex B. Each additional subclause should be in the form of the optional clause shown below.

Related Clauses:

Draft SOW clause 5, Engineering Support, particularly with reference to technical regulatory requirements.

The incorporation of Modifications and Technical Instructions may be dependent on the related clauses for (engineering/software/configuration) change proposals dealt with under Engineering Support, refer clause 5 also.

Most Maintenance support contracts will also require some Supply Support element; hence clause 7, for Supply Support functions related to the conduct of Maintenance, may also be required.

Draft SOW clause 9.3, for S&TE support.

Draft SOW clause 9.4, for Training Equipment support.

Draft SOW Annex A, List of Products Being Supported (for products to be maintained and the relevant depth/grades of repair, as applicable).

Draft SOW Annex B, CSRL ‘MNT’ entries.

Draft SOW Annex C, CDRL ‘MNT’ entries and associated DIDs that are referenced from the ‘MNT’ DSDs.

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Draft SOW Annex D, List of Referenced Manuals (for applicable Maintenance manuals or series of manuals).


DSD-MNT-SERV, Routine Maintenance Services.

DSD-MNT-SA, Systems Administration Services.

DID-MNT-MMP, Maintenance Management Plan.

DID-MNT-AMO, AMO Application (if applicable).

Optional Clauses:

The Contractor shall provide […INSERT SUMMARY DESCRIPTION OF THE REQUIRED MAINTENANCE SERVICES…] Services in accordance with CSRL Line Number MNT-[…INSERT CSRL NUMBER…].

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7. SUPPLY SUPPORT


Status: Optional (but must be used when Supply Services are required under the Contract (Support))

Purpose: To define the requirements for Supply Services and related work for the Contract (Support) through both this clause of the SOW and the associated DSDs.

Policy: Electronic Supply Chain Manual (ESCM)

DEFLOGMAN Part 2, Volume 5, Chapter 2, Logistics Management of Defence Materiel

DEFLOGMAN Part 2, Volume 5, Chapter 3, Australian Defence Force Requirements Determination and Management of Reserve Stocks

DEFLOGMAN Part 2, Volume 5, Chapter 4, Defence Procurement Routing Rules in support of the MILIS

DEFLOGMAN Part 2, Volume 5, Chapter 5, Item Identification and Recording of Defence Logistics Assets in support of the MILIS

DEFLOGMAN Part 2, Volume 5, Chapter 6, Defence Materiel Entitlements

DEFLOGMAN Part 2, Volume 5, Chapter 7, Defence Policy on Obsolescence Management

DEFLOGMAN, Part 2, Volume 5, Chapter 10, Defence Disposal Policy

DEFLOGMAN Part 2, Volume 5, Chapter 17, Stocktaking of Defence Assets held by Contractors

DEFLOGMAN Part 2, Volume 5, Chapter 20, Stock Location Policy to support the JLC Storage and Distribution Network

DEFLOGMAN Part 2, Volume 8, Logistics Support to Operations and Exercise Manual

DI(G) LOG 4–3–017, Supply Aspects of Contractor Owned Spares

Single Service Supply-related publications

Guidance: This clause should be included if the Contract (Support) requires the provision of Supply Services. There may be support contracts that exclude Supply Support, such as those exclusively for Engineering or Training Services, or for Maintenance Services, where all Supply Support activities are conducted by the Commonwealth or another Contractor (eg, Maintenance on a Commonwealth site). This clause will also be required if Operating Support Services require complementary Supply Services.

If the Contract (Support) does not contain any Supply Support requirements, then the heading should be retained, but the words ‘Not used’ should be inserted in brackets at the end (eg, “Supply Support (Not used)”). All of the lower-level clauses of clause 7 should then be deleted.

Supply Support is governed by a significant number of policies and manuals, as indicated by the list above. While every effort has been made to ensure that the applicable elements of the ASDEFCON (Support) template accord with these policies, they are subject to change over time. Drafters, therefore, need to confirm for themselves that their implementation of the template is consistent with the policies and practices that are applicable to their environment.

Drafters should also be aware that, at times, the ASDEFCON (Support) template is deliberately inconsistent with the identified policies and manuals. For example some of the Supply-related terminology (eg, Non-RIs) and associated definitions are inconsistent with the ESCM because the terminology used in the ESCM is not appropriate for use in a contract.

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Supply Support SOW Structure

Related Clauses: Operating Support (clause 4).

Engineering Support (clause 5), particularly with respect to activities supporting new items introduced under modifications and determination of authority to fit substitute items of Supply.

Maintenance Support (clause 6), for the provision of items used in Maintenance and specifically linked clauses related to items beyond physical or economic repair.

Support Resources (clause 9), where complementary Supply Services are required.


7.1 Supply Support Management Planning


Status: Core (if Supply Support is required)

Purpose: To identify the requirements for the Supply Support planning document.

Policy: Nil

Guidance: The drafter must determine whether Supply Support planning requirements can be included in the SSMP, or if a separate Supply Support Plan (SSP) is necessary. This decision is often discretionary, and dependent upon the scope of the workload (eg, if the Contract (Support) covers several SSCCs), and the need to manage Supply Support functions separate from other support functions. Drafters should also refer to the previous guidance for SOW clauses 3.2 and 3.2.1 regarding the ‘roll-up’ of management plans.

If the scope of Supply Support issues for the Contract is concise (eg, Supply Services are relatively static and straightforward), then embedding the basic SSP requirements in the SSMP should be sufficient. If the Contract covers several areas such as a range of Supply Support activities in various locations, routine and ad hoc Services, and other Engineering, Maintenance and Training Services, then a separate SSP will often be more practical.

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Drafters should determine whether or not a separate SSP is required, then select the appropriate optional SOW clauses and edit the references to the appropriate selected plan, as per the ‘Notes to drafters’ in the draft SOW.

If planning for the management of Supply Support is to be included in the SSMP, then the drafter must review DID-SSM-SSMP. Drafters should be aware that DID-SSM-SSMP identifies the need to address Supply Support management in the SSMP if the SOW requires it and, by default, the DID does not require tailoring. However, if the scope of Supply Support planning is reduced in the SSMP or specific requirements are needed, then the DID-SSM-SSMP will need to be tailored accordingly.

Related Clauses:

DID-SUP-SSP, Supply Support Plan.

DID-SSM-SSMP, Support Services Management Plan.

CDRL Line Number SUP-100.


7.2 Supply Support Reporting



Purpose: To identify the requirements for reporting the performance of Supply Services.

Policy: Nil

Guidance: Supply Support reporting is managed as a sub-report for the CSSR. This report may also be delivered separately from the rest of the CSSR, if required, by tailoring the CDRL. This report may be delivered for review in preparation for a Supply Support Performance Review (SSPR), as requested by clause 7.3 of the SOW, or as part of the CSSR in preparation for the CSPR. The report primarily addresses the Contractor’s performance in providing Supply Services against the requirements of the Contract.

Reports and reviews do not need to be coordinated on a one-for-one basis (eg, the Supply Support component of the CSSR could be scheduled for delivery every six months, with every second report scheduled for an annual SSPR or CSPR). The frequency for delivery of the reports may vary (eg, from one month to one year), depending on the level of visibility and Supply Support activity expected or the frequency of payment for these Services.

Drafters do not need to change SOW clause 7.2, but must tailor the CDRL for the delivery of the Supply Support portion of the CSSR individually or as part of the combined report. Refer to the guidance for SOW clause 3.4 in regard to rolling-up reports and reviews as part of the communications strategy.

Related Clauses:


Draft SOW clause 7.3 in relation to Supply Support Reviews.

Draft SOW clause 3.4.1.3, which addresses the inclusion of a CSSR.

CDRL Line Number MGT-350g, for the separate delivery of the Supply Support portion of the CSSR, if required.


7.3 Supply Support Reviews



Purpose: To identify the requirements for Supply Support Performance Reviews (SSPRs).

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Policy: Nil

Guidance: There is only one level of Supply Support review in the SOW, the SSPR, which may be scheduled independently or rolled up into the CSPR. If necessary for larger-scale contracts, two levels of review can be achieved if the CSPR acts as a higher-level review to the SSPR.

The drafter needs to determine the appropriate level of review activity for Supply Support. If the SSPRs are to be rolled up into the CSPRs, then Option A should be selected. If separate SSPRs are required, then Option B should be selected and the review frequency inserted, as per the notes to drafters. Note that, by default, an SSPR will be rolled up into a CSPR when they fall in the same month. If two levels of review are required, the SSPR clause (Option B) should be selected, and the requirements for the CSPR expanded to include a higher-level review of Supply Services.


Related Clauses:


Draft SOW clause 7.2, Supply Support Reporting.


7.4 Supply Services


Status: Core (if Supply Support is required; however, individual lower-level draft SOW clauses are optional)

Purpose: To define the required Supply Services.

Policy: Nil


Drafters must tailor the subclauses to clause 7.4 for each group of Supply Services to be included in the Contract (Support), as described by a separate DSD listed in the CSRL, SOW Annex B. Details are given below for the draft DSDs included in the ASDEFCON (Support) templates.

Routine Supply Services. Unique to the Supply Support DSDs is a structure that allows Supply Services to be scaled. The templates include DSD-SUP-SERV as the ‘head’ DSD, and four subordinate DSDs. DSD-SUP-SERV contains the generic Supply Support functions that must be performed for all Contracts requiring Supply Support. For smaller contracts the subordinate DSDs may not be necessary because DSD-SUP-SERV includes a number of optional clauses to cover a number of the more common functions.

DSD-SUP-SERV also contains clauses to address maintaining Reserve Stockholding Levels (RSLs) and managing Obsolescence. Drafters should refer to the guidance in section 1 of DSD-SUP-SERV for further information.

If a Contractor is not required to provide routine Supply Services, then the SOW clause and associated CSRL entry should be deleted.

Stock Assessment, Codification and Cataloguing Services. DSD-SUP-SACC is intended for use when the Contractor will be responsible for determining appropriate stock holding levels or conducting Codification and Cataloguing and identifying stock holding levels for new or modified items introduced via a configuration change. Drafters should refer to the guidance in section 1 of DSD-SUP-SACC for further information. If these Services are not required under the Contract, then the SOW clause and associated CSRL entry should be deleted.

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Military Integrated Logistics Information System (MILIS) Use. DSD-SUP-MILIS provides additional clauses for when the Contractor is required to use MILIS. Drafters should refer to the guidance in section 1 of DSD-SUP-MILIS for further information. If these Services are not required under the Contract, then the SOW clause and associated CSRL entry should be deleted.

Procurement Services. DSD-SUP-PROC enables the Commonwealth to task the Contractor to buy Stock Items for delivery to Defence, including both Non-RIs and RIs, outside of the MILIS process for procurements. The DSD also has specific provisions for the purchase of safety critical parts. Drafters should refer to the guidance in section 1 of DSD-SUP-PROC for further information. If these Services are not required under the Contract, then the SOW clause and associated CSRL entry should be deleted.

Warehousing and Distribution Services. DSD-SUP-W&D is for use when the Commonwealth has specific warehousing and distribution needs, such as maintaining a warehouse accessible by Commonwealth staff, the preparation and recovery of items from long-term storage, environmentally controlled storage, and specific distribution requirements. Drafters should refer to the guidance in section 1 of DSD-SUP-W&D for further information. If these Services are not required under the Contract, then the SOW clause and associated CSRL entry should be deleted.

Drafters must add a subclause to clause 7.4 for each additional group of Supply Services to be added to the Contract (Support), as described by a separate DSD listed in the CSRL, SOW Annex B. Each additional subclause should be in the form of the optional clause shown below.

Related Clauses:

Draft SOW clause , 3.11.5 Assurance and Stocktaking of Contractor Managed Commonwealth Assets.

Draft SOW Annex A, List of Products Being Supported (for RSLs and Items that the Contractor may be required to procure (eg, consumables) and deliver to the Commonwealth, as applicable).

Draft SOW Annex B, CSRL ‘SUP’ entries.

DSD-SUP-SERV, Routine Supply Services.

DSD-SUP-SACC, Stock Assessment, Codification and Cataloguing.


DSD-SUP-PROC, Procurement Services.

DSD-SUP-W&D, Warehousing and Distribution Services.

DID-SUP-SSP, Supply Support Plan

DID-SUP-CDATA, Codification Data

See also Draft SOW clause 9.2 for Technical Data.

See also Draft SOW clause 9.5 for Packaging.

Optional Clauses:

The Contractor shall provide […INSERT SUMMARY DESCRIPTION OF THE REQUIRED SUPPLY SERVICES…] Services in accordance with CSRL Line Number SUP-[…INSERT CSRL NUMBER…].

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8. TRAINING SUPPORT

Sponsor: Nil

Status: Optional (but must be used when Training Services are required under the Contract (Support))

Purpose: To define the requirements for Training Services and related work for the Contract (Support) through both this clause of the SOW and the associated DSDs.

Policy: DI(G) PERS 05-36, Implementation of the Defence Training Model in Defence Vocational Education and Training

ADFP 7.0.2, Defence Training Model

Refer also to single Service Training manuals.

Guidance: This clause should be included if the Contract (Support) requires the provision of Training Services to Defence / Commonwealth personnel, which can include a range of potential Training situations, including but not limited to:

a. Sustainment Training;

b. Conversion Training; and

c. Continuation Training.

Training Support tasks also include the preparation of individual course materials, management of students, reporting and recording student performance, preparation of assessment materials, and the on-going development and maintenance of training syllabi and materials. DI(G) PERS 05-36 requires that any Training Materials provided by contractors must accord with the Defence Training Model (ADFP 7.0.2 refers).

The SOW (including DSDs) covers the general requirement for managing a Training program, the delivery of classroom-type training and associated Services, and the maintenance of courseware and associated materials. If administrative computer-based training or co-ordination of on-the-job training is required, DSDs specific to the individual requirements will need to be developed by the drafter.

If the Contract (Support) does not contain any Training Support requirements, then the heading should be retained, but the words ‘Not Used’ should be inserted in brackets at the end (eg, “Training Support (Not Used)”). All of the lower-level clauses of clause 8 should then be deleted.

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Training Support SOW Structure

Related Clauses: Draft SOW clause 9.4, Training Equipment.



8.1 Training Support Management Planning

Sponsor: Nil

Status: Core (if Training Support is required)

Purpose: To identify the requirements for the Training Support planning document.

Policy: Refer to Single Service Training Manuals

ADFP 7.0.2, Defence Training Model

Guidance: The drafter must determine whether Training Support planning requirements can be included in the SSMP, or if a separate Training Support Plan (TSP) is necessary. This decision is often discretionary, and dependent upon the scope of the workload (eg, if the Contract (Support) covers several SSCCs), and the need to manage Training Support functions separate from other support functions. Drafters should also refer to the previous guidance for SOW clauses 3.2 and 3.2.1 regarding the ‘roll-up’ of management plans.

If the scope of Training Support issues for the Contract is concise (eg, Training Services are relatively static and straightforward), then embedding the basic TSP requirements in the SSMP should be sufficient. If the Contract covers several areas such as a range of Training Support activities in various locations, routine and ad hoc Services, and other Engineering, Maintenance and Supply Services, then a separate TSP will often be more practical.

Drafters should determine whether a separate TSP is required, then select the appropriate optional SOW clauses and edit the references to the appropriate selected plan, as per the ‘Notes to drafters’ in the draft SOW.

If planning for the management of Training Support is to be included in the SSMP, then the drafter must review DID-SSM-SSMP. Drafters should be aware that DID-SSM-SSMP identifies the need to address Training Support management in the SSMP if the SOW requires it and, by default, the DID does not require tailoring. However, if the scope of Training Support planning is reduced in the SSMP or specific requirements are needed, then the DID-SSM-SSMP will need to be tailored.

Related Clauses:

DID-TNG-TSP, Training Support Plan.

DID-SSM-SSMP, Support Services Management Plan.

CDRL Line Number TNG-100.


8.2 Training Support Reporting



Purpose: To identify the requirements for reporting the performance of Training Services.

Policy: Nil

Guidance: Training Support reporting is managed as a sub-report for the CSSR. This report may also be delivered separately from the rest of the CSSR, if required, by tailoring the CDRL. This report would typically be delivered for review in preparation for an

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Training Support Performance Review (TSPR), as requested by clause 8.3 of the SOW. The report primarily addresses the Contractor’s performance in providing Training Services against the requirements of the Contract.

Reports and reviews do not need to be coordinated on a one-for-one basis (eg, the Training Support component of the CSSR could be scheduled for every six months with every second report scheduled for an annual TSPR or CSPR). The frequency for delivery of the reports may vary (eg, from one month to one year), depending on the level of visibility and Training Support activity expected or the frequency of payment for these Services.

Drafters do not need to change SOW clause 8.2, but must tailor the CDRL for the delivery of the Training Support portion of the CSSR individually or as part of the combined report. Refer to the guidance for SOW clause 3.4 in regard to rolling-up reports and reviews as part of the communications strategy.

Related Clauses: DID-SSM-CSSR, which specifies the requirements for a CSSR.

Draft SOW clause 8.3 in relation to Training Support Reviews.

Draft SOW clause 3.4.1.3, which addresses the inclusion of a CSSR.

CDRL Line Number MGT-350h, for the separate delivery of the Training Support portion of the CSSR, if required.


8.3 Training Support Reviews



Purpose: To identify the requirements for Training Support Performance Reviews (TSPRs).

Policy: Nil

Guidance: There is only one level of Training Support review in the SOW, the TSPR, which may be scheduled independently or rolled up into the CSPR. If necessary for larger-scale contracts, two levels of review can be achieved if the CSPR acts as a higher-level review to the TSPR.

The drafter needs to determine the appropriate level of review activity for Training Support. If the TSPRs are to be rolled up into the CSPRs, then Option A should be selected. If separate TSPRs are required, then Option B should be selected and the review frequency inserted, as per the notes to drafters. Note that, by default, a TSPR will be rolled up into a CSPR when they fall in the same month. If two levels of review are required, the TSPR clause (Option B) should be selected, and the requirements for the CSPR expanded to include a higher-level review of Training Services.


Related Clauses:


Draft SOW clause 8.2, Training Support Reporting.


8.4 Training Services


Status: Core (if Training Support is required; however, individual lower-level draft SOW clauses are optional)

Purpose: To define the required Training Services.

Policy: Nil

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Drafters must tailor the subclauses to clause 8.4 for each group of Training Services to be included in the Contract (Support), as described by a separate DSD listed in the CSRL, SOW Annex B. Details are given below for the draft DSDs included in the ASDEFCON (Support) templates.

Training Management Services. DSD-TNG-MGT contains the generic Services that must be performed for all Contracts requiring the Contractor to manage some aspect of Training Support. This DSD is a ‘head’ DSD for Training Support, and will almost certainly be required before any other Training Services can be undertaken. Drafters should refer to the guidance in section 1 of DSD-TNG-MGT for further information. DSD-TNG-MGT included Training evaluations that can lead to Training Material updates through DSD-TNG-TMS, or another party.

If a Contractor is not required to provide on-going Training Services (eg, only non-nationally recognised Training courses delivered on an ad hoc basis), then the clause and associated CSRL entry should be deleted.

Training Delivery Services. DSD-TNG-DEL identifies the course details and delivery requirements, Training Equipment, Training Materials, assessments and course evaluation requirements. Where the courses or learning modules are defined by Defence Training Management Packages, these may be referred to from the DSD. Drafters should refer to the guidance in section 1 of DSD-TNG-DEL for further information. If these Services are not required under the Contract, then the SOW clause and associated CSRL entry should be deleted.

Training Materials Support Services. DSD-TNG-TMS needs the drafter to identify the relevant Training courses for which maintenance of the course materials and/or Training Management Package applies (noting that these should identified as Products in SOW Annex A). The DSD enables the drafter to select Services such as analysing proposed Training program changes and the update of Training Management Packages including curriculum documentation and Training Materials, as required. Drafters should refer to the notes to drafters in DSD-TNG-TMS for further information. If these Services are not required under the Contract, then the SOW clause and associated CSRL entry should be deleted.

Drafters may add subclauses to draft clause 8.4 for each new group of Training Services to be added to the Contract (Support), as described by a separate and new DSD listed in the CSRL, SOW Annex B. Each additional subclause should be in the form of the optional clause shown below.

Related Clauses:

Draft SOW Annex B, CSRL ‘TNG’ entries.

DSD-TNG-MGT, Training Management Services,

DSD-TNG-DEL, Training Delivery Services.

DSD-TNG-TMS, Training Materials Support Services.

DID-TNG-TSP, Training Support Plan.

See also Draft SOW clause 9.2 for Technical Data (which includes Training Materials).

See also Draft SOW clause 9.4 for Training Equipment.

Optional Clauses:

The Contractor shall provide […INSERT SUMMARY DESCRIPTION OF THE REQUIRED TRAINING SERVICES…] Services in accordance with CSRL Line Number TNG-[…INSERT CSRL NUMBER…].

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9. SUPPORT RESOURCES


Status: Core

Purpose: To define the requirements for the Contractor to maintain the Support Resources that enable the provision of Management, Operating Support, Engineering, Maintenance, Supply, and Training Services to be performed, as required by clauses 3 to 8 of the SOW and associated DSDs.

Policy: Nil

Guidance: This clause must be included in all support contracts. Individual clauses will be optional, depending on which Support Resources are required to enable the Services to be provided.

The term ‘Support Resources’ is defined in the Glossary as, “the physical products, including spares, equipment, materials, Facilities, Technical Data, Personnel, and any other physical resources required to operate and support all or a particular part of the Mission System as the case requires”.

Drafters should note that a difference exists between:

a. using Support Resources to provide a Service; and

b. Support Resources being themselves serviced.

The following table shows this difference.

Providing Services Being Serviced

Government Furnished Materiel

(GFI, GFD, GFE)

An item of GFM being used by the Contractor (Support) to provide a Service to the Commonwealth in accordance with the Contract (Support). These items appear in Attachment E.

An item of GFM being serviced by the Contractor (Support) in accordance with the Contract (Support). These items will appear in Annex A to the SOW (List of Products Being Supported).

Contractor Furnished Materiel

An item of CFM being used by the Contractor (Support) to provide a Service to the Commonwealth in accordance with the Contract (Support).

An item of CFM being serviced by the Contractor (Support) in accordance with the Contract (Support). These items may appear in Annex A to the SOW (List of Products Being Supported) if significant enough to the Commonwealth.

Other Commonwealth

Owned

A Commonwealth-owned Product, that is not GFM, being serviced by the Contractor (Support) in accordance with the Contract (Support). These items will appear in Annex A to the SOW (List of Products Being Supported).

Note that this matrix is equally applicable to the Support Resources of Technical Data (GFI, GFD), S&TE (GFE) and Training Equipment (GFE).

Service Provision/Use of Support Resources

Related Clauses: Draft SOW clauses 3 through 8 and associated DSDs.


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9.1 Personnel

9.1.1 Personnel (General)


Status: Core

Purpose: This clause recognises the Contractor’s responsibility in providing the appropriate personnel to perform the Services.

Policy: Nil

Guidance: Unless explicitly mentioned elsewhere in the Contract, the Contractor is responsible for the training, qualifications, security clearance applications, etc, of their own staff. This clause recognises that work effort is associated with these tasks and, when the SOW is used as the basis of the Contract WBS10, provides a WBS element against which a costing may be assigned, instead of assigning these costs as overheads or being hidden elsewhere in the Contract.

Related Clauses: COC clause 3.10, Key Persons and Personnel.


9.1.2 Key Persons Management


Status: Core

Purpose: The purpose of this clause is to obligate the Contractor to identify Key Staff Positions and associated Key Persons, and to clearly place responsibility for their selection with the Contractor.

Policy: Nil

Guidance: Drafters should understand how the ‘Key Persons and other Personnel’ clause in the COC interacts with this SOW clause.

Clause 9.1.2 of the SOW requires the establishment of Key Staff Positions in order that these positions may be filled with Key Persons. Both the Key Staff Positions and the associated Key Persons are named in Contractor’s Approved SSMP. Clause 3.10 of the COC sets out the process that will be employed in the situation where a Key Person becomes unavailable or if the Commonwealth considers that a Key Person needs to be removed.

For example, a Key Staff Position identified in the SSMP may be ‘Senior Contracts Officer’. The Senior Contracts Officer may be required to have a Bachelor of Law. Subject to the Commonwealth’s satisfaction, anyone possessing such a degree may fill the Key Staff Position.

Key Staff Positions

Key Staff Positions may include positions assigned engineering authority, lead software managers, explosives/weapons trained staff, and some specialist trade skills that may be unique to the equipment involved. Key Staff Positions and Key Person requirements should be flowed down to those Approved Subcontractors whose Services require Key Staff Positions that are critical to the success of the Contract and whose employees have been named as Key Persons (if any).

If specific staff are difficult to find, only a few people possess the appropriate skills, or if Defence expects to sponsor individuals to attend overseas training courses, then drafters may wish to add a clause to TDR E-4 nominating Key Staff Positions to be addressed by the tenderers and selected Contractor.

10 An ASDEFCON guiding principle is that the SOW captures all work (refer to principle 3 of the ASDEFCON Handbook Philosophy Volume).

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In relation to this clause, tenderers should be required to nominate through their response to TDR E-4, for both themselves and intended Subcontractors:

a. positions that are critical to the success of the work to be performed;

b. the duties and responsibilities of those positions;

c. the competencies and experience needed for the person filling each of those positions; and

d. if required by the Commonwealth, the name of the individual who will be considered a Key Person.

Related Clauses: COC clause 3.10, Key Persons and Personnel.

DID-SSM-SSMP, which include planning requirements for Key Persons.

DID-ENG-CEMP and DID-MNT-MMP, which specify requirements for Engineering and Maintenance plans to manage Personnel, likely to be Key Persons.

TDR E-4 of the COT, Key Staff Positions.


9.2 Technical Data


Status: Core

Purpose: To specify the work to be performed by the Contractor to effectively manage the Technical Data supported by and otherwise required for the Contract, including both physical management and configuration management.


Guidance: Technical Data is required for all support contracts; therefore, drafters will usually need to include a number of the draft clauses included under SOW clause 9.2, Technical Data.

Management of Technical Data (including information systems data and publications) should be considered in conjunction with the management of the IP rights needed to use and distribute Technical Data. Accordingly, COC clause 5 and the IP Plan play an important role in Technical Data Management and these should be reviewed when tailoring clause 9.2.

Before tailoring clause 9.2, drafters should also consider sources of new Technical Data and likely changes to Technical Data during the Contract Term, and what impact this will have on the requirements to be included in this clause and what is also provided through plans (eg, Maintenance records to be kept in accordance with the MMP). For example of new and changed Technical Data, when the Contractor will provide Engineering Services, including hardware modifications and software engineering, this will generate updates to Technical Data including engineering drawings, software documentation, and Maintenance and operator manuals. Maintenance and Supply management systems also generate Technical Data as an output of routine work. The use of the DMS (SOW clause 2.3) and access to Contractor information management systems should also be considered for providing access to Contractor-sourced Technical Data.

Management of Technical Data is also addressed in individual management plans and DSDs. As examples, Configuration Management data is addressed through DSD-ENG-CM, and Training Materials are updated or redeveloped through DSD-TNG-TMS. The ‘head’ DSDs for each SSCC include requirements for a related information management system that will hold considerable Technical Data in electronic form. The drafter needs to be cognisant of these other clauses when defining Technical Data support needs through this clause and the SOW Annexes.

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Technical Data clauses do not explicitly separate interactive electronic technical manuals from hard copy manuals. Both are considered equally as Technical Data.

Section 6 of SOW Annex A identifies the Technical Data that the Contractor is required to support under the Contract; however, Technical Data is identified in a number of different places in the template, including:

a. Attachment E, ‘Government Furnished Material, Government Furnished Facilities and Government Furnished Services’, which identifies GFI and GFD at Annex A to Attachment E;

b. Attachment M, ‘Glossary’, which identifies the Referenced Documents called up throughout the Contract;

c. SOW Annex A, ‘List of Products Being Supported’, which can be used to identify the reference manuals that pertain to other Products Being Supported (eg, Mission System(s) and RIs), as well as the specific Technical Data to be supported at Section 6 of SOW Annex A; and

d. SOW Annex D, ‘List of Referenced Manuals’, which can be used to list the referenced manuals used in support of the Products listed in Annex A to the SOW.

Each of these different parts of the template has a particular purpose, which may result in particular items of Technical Data being identified in multiple locations (eg, a Commonwealth-provided RI Maintenance manual (GFI or GFD), which the Contractor is required to support, could be identified in all of these parts). Drafters should ensure that each item of Technical Data is appropriately identified in each part of the template, commensurate with the purpose of that part of the template.

Related Clauses: COC clause 5, Intellectual Property.

Attachment E, Government Furnished Material, Government Furnished Facilities and Government Furnished Services.


Draft SOW clause 3.13, Intellectual Property Management.

Draft SOW Annex A Section 6, Technical Data.

Draft SOW Annex D, List of Referenced Manuals.


9.2.1 Technical Data Management Plan


Status: Core

Purpose: To require the Contractor to plan for and manage Technical Data used and developed under the Contract.

Policy: Nil

Guidance: Planning for Technical Data management is core, however, clause 9.2.1 provides two core options to achieve this, either (Option A) a standalone Technical Data Management Plan (TDMP), or (Option B) to address Technical Data management within the SSMP.

Asking the Contractor to prepare and maintain a TDMP, that is separate to the SSMP, is not necessary for many support contracts. Management of Technical Data may be included in the SSMP if the on-going task is relatively small with minimal change or creation of new Technical Data. However, if the Contract requires a large amount of Technical Data including numerous publications as a

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Support Resource that will be subject to frequent amendments, drafters should consider the requirement for a separate TDMP.

In some instances, it may be preferable to have a TDMP in order to more easily provide information regarding regulatory compliance, as appropriate for the TRF applicable to the Contract through SOW clauses 5.4 and 6.4.

After selecting an option for the governing plan for the management of Technical Data, drafters need to insert the name of that plan into the follow-on clause, where indicated. If there is no technical regulation of engineering and/or maintenance activities, then clause 9.2.1.3 should be tailored accordingly.

Related Clauses: COC clause 5, Intellectual Property.

All other sub-clauses in SOW clause 9.2.

DID-TDATA-TDMP, which specifies the requirements for a TDMP.

DID-SSM-SSMP, Support Services Management Plan (as an alternative to the TDMP in less complex situations).


9.2.2 Technical Data List


Status: Optional

Purpose: To require the Contractor to prepare and maintain a Technical Data List (TDL).

Policy: Nil

Guidance: The TDL identifies the Technical Data used and / or generated by the Contractor and the Approved Subcontractors during the Contract. The TDL can also be used to keep track of the changes to Technical Data, applicable to the Commonwealth’s IP rights, over the life of the Contract. Management of the TDL is included within the TDMP and SSMP (whichever is selected in clause 9.2.1).

The TDL is an optional clause; however, it should be considered for use for the majority of support contracts. Typically, the clause would only be omitted for those support contracts at the lower end of complexity or where there was only a minimal amount of Technical Data associated with the Contract.

The TDL may also be used to follow the development of new and modified Technical Data during engineering design change programs. This is implied through the developmental activities for Major Changes clause in DSD-ENG-SERV. However, explicit requirements should be included in the scope of ECPs, defined using DID-ENG-ECP, as additional deliveries of the TDL or draft TDL changes are not covered by the default ‘delivery schedule’ entry in the CDRL. The TDL also informs the Commonwealth of impending changes to the IP Plan or IP schedule; however, this does not impact on tailoring SOW clause 3.13.

When a Contract (Acquisition) and a Contract (Support) are linked, the TDL developed during acquisition and the TDL for support are generally not the same. The acquisition TDL will identify all Technical Data for the in-service phase, including that used by the Commonwealth. Unless the support concept includes full contractor support, the initial Contract (Support) TDL will be developed in preparation for the OD from a subset of the mature Contract (Acquisition) TDL.

If the Contractor is not maintaining Technical Data for regular use by the Commonwealth, then the Approved TDL may encompass all of Section 6 of SOW Annex A and, potentially, SOW Annex D, superseding both of these lists, in terms of accuracy, as Technical Data is amended. In this instance the drafter / Commonwealth Representative may wish to amend these SOW sections, at the OD or via a subsequent CCP, to refer to the Approved TDL for the Technical Data to be maintained and / or used by the Contractor and Approved Subcontractors.

Related Clauses: Draft SOW Annex A Section 6, Technical Data.

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Attachment E, which includes the lists of GFI and GFD for the Attachment M, Glossary, which includes the list of Referenced Documents for the Contract.

DID-TDATA-TDL, which specifies the requirements for a Technical Data List.

CDRL Line SR-100, for the TDL.

COC clause 5, Intellectual Property.

Draft SOW clause 3.13, Intellectual Property Management.

DSD-ENG-ECP, for Engineering Change Proposals.


9.2.3 Technical Information Library


Status: Optional

Purpose: To require the Contractor to maintain an up-to-date technical information library for any policies, regulations, procedures, and task descriptions required for the performance of the Contract.

Policy: Nil

Guidance: The technical information library may include a mix of GFI and GFD, plus other OEM and commercial documents identified in Attachment M, Glossary, that are not GFI and GFD (eg, Australian and international standards).

This clause should be considered for use when there is a considerable amount of technical information either associated with the Contract work or being provided by the Commonwealth (or both). While the requirement to provide a technical information library may appear to be a process requirement, which should be unnecessary in an outcomes-based contract, the clause does establish a minimum standard to be met by the Contractor. This type of clause can be beneficial in situations, such as when an accident occurs and the responsibilities of the respective parties in relation to that accident need to be established (ie, in regards to the processes and procedures used on the Products involved in the accident).

Drafters should note the linkage to Phase In and the Commonwealth’s obligations to provide a sufficient number of copies of the Commonwealth documents listed in Attachment M by OD. If there is a Ramp Up period, some documents may not need to be delivered until Milestones after OD, which may be identified in either the Approved Ramp Up Management Plan or SSMP. While Attachment M primarily contains the Glossary, it also provides a consolidated list of Referenced Documents for the Contract. Drafters should ensure that, prior to the release of the RFT, Attachment M is updated to capture all of the documents referenced in the draft Contract, which should include all documents identified in all sections of SOW Annex A and in SOW Annex D. Any documents that are identified in Attachment E (ie, either GFI or GFD), however, should not be included in Attachment M as Attachment E includes its own delivery details.

Section 6 of SOW Annex A identifies the Technical Data to be supported by the Contractor, with clause 1 of Section 6 identifying the publications to be supported. Clause 9.2.3.4 of the SOW requires the Contractor to maintain these publications, which includes “the incorporation of Commonwealth-issued amendments and OEM amendments that have been approved by the Commonwealth”. This last part of the clause refers to those publications for which the Commonwealth has retained publication sponsorship. Drafters should review the requirements of this clause in light of the requirements included under clause 9.2.4, ‘Publication Update Service’ and under clause 9.2.5, ‘Publication Sponsorship’.

Related Clauses: Attachment M, Glossary, which includes the list of Referenced Documents for the Contract.

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Draft SOW Annex A, List of Products Being Supported.


Draft SOW clause 2.6, Phase In.

Draft SOW clause 2.7, Ramp Up.

Draft SOW clause 9.2.4, Publication Update Service.

Draft SOW clause 9.2.5, Publication Sponsorship.


9.2.4 Publication Update Service


Status: Optional

Purpose: To require the Contractor to provide an update service for the publications identified in the list of Products Being Supported at Annex A to the SOW.

Policy: Nil

Guidance: A Contractor may be required to provide a Service of identifying and incorporating updates to publications from OEMs, their representatives or regulators. If required, the clauses below clause 9.2.4 in the draft SOW should be retained and suitably amended to meet the specific requirements of the Contract, including any Service-specific and / or TRF requirements. If this Service is not required, the clauses below clause 9.2.4 should be deleted and replaced with a single ‘Not used’.

SOW clause 9.2.3.4 requires that the “Contractor shall maintain the publications identified in Section 6 of Annex A to the SOW, including the incorporation of Commonwealth-issued amendments and OEM amendments that have been approved by the Commonwealth”. The publications update service under clause 9.2.4 differs in that the Contractor is preparing the updates from notices or updates provided by the OEMs of the system or component Products, or from another authority.

Typically, in this instance, the Commonwealth Representative’s organisation would be the publication sponsor issuing the updates prepared by the Contractor. If the Contractor is appointed a publication sponsorship role, through clause 9.2.5, they may be required to support publications used by other Defence organisations, not just the Commonwealth Representative’s organisation. In this instance, additional clauses may be required to identify any additional work necessary when providing the publication update service as a sponsor. For example, where a publication update is for S&TE used on multiple systems, different publication updates may be required if different interfaces or user instructions are required.

Note: where the additional clauses for publications update, when combined with the requirements included under clause 9.2.5 for publication sponsorship become significant, drafters may consider preparing a Technical Data Services DSD.

Related Clauses: Draft SOW clause 9.2.3, Technical Information Library.

Draft SOW clause 9.2.5, Publication Sponsorship.



9.2.5 Publication Sponsorship


Status: Optional

Purpose: To require the Contractor to perform the services of a publication sponsor for those publications annotated accordingly in the list of Products Being Supported at Annex A to the SOW.

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Policy: Nil

Guidance: In some circumstances, the Contractor may be required to act as the publication sponsor for Defence publications, which involves responsibilities such as those listed under clause 9.2.5.1. If this service is not required, then the clauses under the heading clause 9.2.5 can be deleted and replaced with a single “Not used”.

Additional clauses will often need to be developed by the drafter, and inserted into clause 9.2.5.1, to describe the additional Contractor responsibilities as a publication sponsor. Single Service publications (eg, AAP 5030.001, ‘RAAF Publication System – Technical and Non-technical Manuals’) can provide a useful source of information for the development of these additional clauses. Drafters should ensure that all publications for which the Contractor is required to be a publication sponsor are identified, and annotated accordingly, in Section 6 of Annex A to the SOW.

Note that if the additional clauses required for publication sponsorship become significant, drafters may consider compiling a Technical Data Services DSD.

The additional clauses need to be consistent with any related technical publication changes developed through ECPs, as part of Engineering Support. The preceding clauses for the ‘Publication Update Service’ may also require amendment if the Contractor is intended to be a publication sponsor.

Related Clauses: Draft SOW clause 9.2.3, Technical Information Library.

Draft SOW clause 9.2.4, Publication Update Service.



9.2.6 Engineering Drawings


Status: Optional

Purpose: To require the Contractor to maintain and update engineering drawings for which they have been allocated responsibility.

Policy: Nil

Guidance: This clause calls up DID-ENG-DWGS, which requires engineering drawings to be developed and updated in accordance with standards, such as DEF(AUST) 5085B, Engineering Drawings (unless otherwise specified – see the DID). Generally, it would be expected that the requirement to update or amend engineering drawings would be part of an S&Q Service (eg, developed from an ECP). This clause is required where, as part of Engineering Services, the Contractor holds and maintains applicable design drawings.

DID-ENG-DWGS should be tailored as necessary to reflect the Contract requirements. Engineering drawing aspects should be addressed in the CEMP or the SSMP if the CEMP has been rolled up into the higher level document.

Related Clauses: Draft SOW clause 5, Engineering Support.


CDRL Line Number ENG-400.

DID-ENG-DWGS, which specifies requirements for drawings and updates.


9.2.7 Technical Data Management System


Status: Optional

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Purpose: To require the Contractor to implement and maintain a management system for Technical Data.

Policy: Nil

Guidance: A Technical Data management system is used to maintain the configuration status of Contractor-managed Technical Data and, as such, there are close ties between this clause and the Configuration Status Accounting (CSA) system that the Contractor would be required to implement under clause 6.2.6 of DSD-ENG-CM (if used). In this instance, the requirements of this clause 9.2.7 would simply add a number of requirements (ie, for Technical Data management) to the requirements for the CSA system.

There are also close linkages between this clause 9.2.7 and the DMS implemented under clause 2.3 of the SOW; however, this clause 9.2.7 is likely to have broader coverage than the DMS because it includes all Contractor-managed Technical Data (as opposed to being limited to the data agreed to be provided to the Commonwealth via the DMS).

The requirement for a Technical Data management system is an optional clause; however, it should be considered for use for the majority of support contracts. Typically, the clause would only be omitted:

a. for those support contracts at the lower end of complexity;

b. where there was only a minimal amount of Technical Data associated with the Contract; and/or

c. where the management of Technical Data is adequately covered by the CSA and DMS clauses.

In making a decision as to whether or not to include this clause, drafters should take due notice of the requirement in 9.2.7.1a to be able to “reconstruct the configuration status of Contractor-managed Technical Data at any given date during the Contract period (eg, on the date an accident occurs)”. This requirement is an integral part of the safety thread for the template and becomes an essential consideration when the responsibilities of the respective parties in relation to an accident need to be established. There are also links between this provision and the next clause relating to Technical Data investigations.

Related Clauses: All other sub-clauses in SOW clause 9.2.


DSD-ENG-CM, Configuration Management.


9.2.8 Technical Data Investigation


Status: Optional

Purpose: To require the Contractor to take the necessary actions in relation to Technical Data when an investigation is required, such as for an accident investigation.

Policy: Nil

Guidance: If the Products Being Supported are subject to a TRF, it will usually be necessary to include a clause in the SOW enabling the Commonwealth to quarantine all documentation for the purposes of accident / incident investigations. If investigations may be required, the draft SOW clause should be retained. If not required, the clause should be deleted and replaced with ‘Not used’.

Related Clauses: All other sub-clauses in SOW clause 9.2.


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9.2.9 Modification Orders and Technical Instructions


Status: Optional

Purpose: To require the Contractor to only incorporate changes to publications, which arise out of the development of Modification Orders or Technical Instructions, when authorised to do so by the Commonwealth Representative.

Policy: Nil

Guidance: This clause allows the Commonwealth to control the incorporation of Technical Data changes related to modifications orders and technical instructions, to ensure that when there is a mixed fleet of modified and unmodified systems, sufficient and accurate Technical Data is available for both. If the Contractor is tasked with Engineering Services that include hardware modifications, software Maintenance, or other tasks that may generate changes to Technical Data, the draft SOW clause should be retained. For some Materiel Systems where electronic Technical Data / publications are automatically configured for each Mission System configuration, this clause may not be required. If not required, the clause should be replaced with ‘Not used’.

Related Clauses: DSD-ENG-SERV, clause 6.2.5, Developmental Activities for Major Changes, and clause 6.2.6, Technical Instruction Development.

DSD-MNT-SERV, clause 6.2.7, Incorporating Modifications, Alterations, and Technical Instructions.


9.3 Support and Test Equipment


Status: Optional

Purpose: To identify requirements for the management and support of S&TE, which are required to enable the Services to be provided.

Policy: DEFLOGMAN Part 2, Volume 10, Chapter 19, Calibration Policy for Support and Test Equipment

AAP 7001.055, Support and Test Equipment Logistics Management Manual (Aerospace)

Guidance: Clause 9.3 will be applicable in most support contracts. This clause specifies the requirements to be met by the Contractor in relation to S&TE, including:

a. S&TE (used by Defence and listed as a Product Being Supported) for which the Contractor provides Services;

b. GFE that is S&TE (which may or may not overlap with the items under sub paragraph ‘a’ above – as shared GFE); and

c. Contractor-owned S&TE that is required to enable provision of the Services.

The purpose of including these clauses is to define responsibility for providing, supporting and modifying S&TE. Where the SOW is used as the basis to a Contract WBS, this also provides a WBS element against which costs may be assigned; instead of hiding these costs elsewhere in the Contract (eg, as an overhead of Maintenance).

If there is no S&TE provided as GFE, then the clause will still apply as the Contractor is responsible for their S&TE used in providing Services; however, the drafter should delete / modify the draft clauses to remove reference to S&TE that is GFE (clauses 9.3.5 to 9.3.8).

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In the exceptional case where management and support of S&TE is not required, the drafter may replace all sub-clauses of 9.3 with a single ‘Not used’.

Drafters should ensure that the GFE applicable to clause 9.3 is listed in Attachment E, and accurately reflects that which is offered to the Contractor. The Contractor’s responsibilities in relation to Engineering, Maintenance, and Supply Services for each item of S&TE listed, including GFE, should be included in Section 3 of Annex A to the SOW, ‘Support System Repairable Items’.

If specific items of S&TE (eg, a complex suite of Automatic Test Equipment or a software integration laboratory) are subject to the same or similar CM, reporting and auditing requirements as either the Mission System(s) or the Mission System RIs, then, for the purposes of the Contract, these items of S&TE should be treated as one or other of these elements. If the items are treated as Mission System(s), then the S&TE should be included in Section 1 of Annex A; if the items are treated as Mission System RIs, then the S&TE should be included in Section 2 of Annex A. This approach ensures that these items of S&TE are subject to the full management requirements of the SOW clauses for Engineering, Maintenance, and Supply Services.

Related Clauses: Draft SOW clause 3.11.2, Care of Contractor Managed Commonwealth Assets.



TDR E-9 of the COT, Government Furnished Material.


9.4 Training Equipment


Status: Optional

Purpose: To define the work the Contractor is required to perform in relation to the management and support of Training Equipment.

Policy: Nil

Guidance: Clause 9.4 will be applicable in support contracts where Training Services are to be provided to Defence (ie, if clause 8 is included then clause 9.4 should also be included). This clause specifies the requirements to be met by the Contractor in relation to Training Equipment, including:

a. Training Equipment (used by Defence for internal training and listed as a Product Being Supported) for which the Contractor provides a Service;

b. GFE that is Training Equipment (which may or may not overlap with the items under sub paragraph ‘a’ above – as shared GFE); and

c. Contractor-owned Training Equipment that is required to provide the services (ie, not listed as GFE).

Note that Training delivery requirements described in DSD-TNG-DEL may also include a Training Equipment and Materials List (TEML), or refer to a Training Management Package that includes a TEML specific to each Training Course that is provided by the Contractor. Where multiple lists exist, overlapping with SOW Annex A and Attachment E, the drafter needs to ensure that all lists are consistent, including through the use of cross-references where appropriate.

If there is no provision or support of Training Equipment required by the Contract, then the drafter may delete the draft SOW clauses and replace them with a single clause stating ‘Not used’.

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The purpose of including these clauses is to define responsibility for providing, supporting and modifying Training Equipment. The Contractor may use Training Equipment as part of the provision of Training Services or may simply be responsible for the provision of Services in support of Training Equipment that is used by the Commonwealth. If the SOW is used as the basis to a Contract WBS, the clause also provides a WBS element against which a costing may be assigned; instead of assigning these costs elsewhere in the Contract, such as to a fixed overhead added to the delivery of a variable number of individual courses.

If Training Equipment is required, the drafter should determine whether Training Equipment would be provided to the Contractor as GFE. Drafters should ensure that the GFE needed by clause 9.4 is listed in Attachment E, and accurately reflects that which is offered to the Contractor. Contractor’s responsibilities in relation to Engineering, Maintenance, and Supply Services for each item of Training Equipment listed, including GFE, should be included in Section 3 of Annex A to the SOW, ‘Support System Repairable Items’.

Clause 9.4 is intended to cover Training Equipment that is relatively simple and supported by straightforward procedures. If specific items of Training Equipment are complex (eg, flight, bridge, air traffic or other mission simulators), these items may have similar CM, reporting, regulatory and auditing requirements as either the Mission System(s) or the Mission System RIs. If the items are treated as Mission System(s), then the Training Equipment should be included in Section 1 of Annex A; if the items are treated as Mission System RIs, then the Training Equipment could be included in Section 2 of Annex A. This approach ensures that these items of Training Equipment are subject to the full management requirements of the SOW clauses for Engineering, Maintenance, and Supply Services.

For flight simulators, the simulator is usually subject to the same or similar airworthiness requirements as the aircraft / helicopter because the same flight programs may be loaded, and/or modifications tested on the simulator. In these cases, the flight simulator must be added to Section 1 of Annex A. Similar requirements apply to submarine simulators and other critical and/or hazardous Training Equipment.

The drafter should determine the nature of management and the support required for items of Training Equipment, and then add these to the appropriate list in SOW Annex A so that they may be treated accordingly.

The tenderers/Contractor proposals to manage Training Equipment are included as a requirement for the TSP in DID-TNG-TSP.

Related Clauses: Draft SOW clause 3.11.2, Care of Contractor Managed Commonwealth Assets.



DID-TNG-TSP, which defines the requirements for managing Training, including Training Equipment.

CDRL Line Number TNG-100.



9.5 Packaging


Status: Core

Purpose: To define Packaging resource requirements.

Policy: DEF(AUST) 1000C, ADF Packaging

WHS Legislation

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Australian Code for the Transport of Dangerous Goods by Road and Rail, edition 7

Guidance: Packaging (as a Support Resource rather than a Service) is a core clause that covers all the physical Packaging for Deliverables under the Contract. If there is no Packaging provided by the Commonwealth as GFE, the drafters should select Option A from the optional clauses in the draft SOW. If some of the Packaging will be provided by the Commonwealth, such as special-to-type packaging designed for protecting particularly fragile components or for environmentally controlled storage, drafters should select Option B.

For Packaging that is provided by the Commonwealth, such as specialised packaging and reusable containers, the drafter must make applicable entries in the GFE list in Attachment E. Furthermore, if the Packaging item is an RI to be maintained by the Contractor, it must be listed in Section 3 of SOW Annex A, ‘Support System Repairable Items’, under clause 3, ‘Other Repairable Equipment’.

Clause 9.5.3 of the SOW template highlights that certain legislative requirements apply to Packaging, particularly for labelling of packages that contain Dangerous Goods and Hazardous Substances, or that must comply with import / export and quarantines regulations. Legislative requirements would apply with or without this clause; however, it acts as a reminder.

Clause 9.5.4 refers to specific sections of DEF(AUST)1000C that are applicable; however, there are a number of options possible from this standard and some aspects (eg, the use of data matrices) are evolving. Drafters need to review the sections of DEF(AUST)1000C that have been identified in order to determine that these are appropriate and current requirements, and update this clause if required. Additional clauses must be drafted if there is a requirement for radio-frequency identification (RFID).

Related Clauses: Draft SOW clause 7, Supply Support.


Draft SOW clause 3.11.2, Care of Contractor Managed Commonwealth Assets.




9.6 Facilities

Sponsor: Defence Support and Reform Group (DSRG), Director - Property Leasing

Status: Optional

Purpose: To define the Contractor’s obligations in relation to Facilities.

Policy: DI(G) ADMIN 35-1, Procedures for the Use of Defence Estate Assets by Non-Defence Organisations or Individuals including Commercial Contractors

Guidance: Facilities used to provide Services may be Contractor-owned, GFF, or a combination of both. If some or all of the Facilities will be GFF, a Commonwealth Licence Agreement for Use by Contractors of Defence Facilities (Facilities Licence) must be issued for those Facilities (which may include groups of buildings or only part of a building).

If there is no doubt that the Contractor will be responsible for all Facilities and associated costs, then the optional clauses under 9.6 may be replaced with ‘Not used’ or the drafter may choose Option A for the draft SOW, stating that the Contractor shall provide all Facilities. If some or all Facilities may be GFF, then drafters should select Option B.

Fixed plant and some equipment are considered to be part of a Facility. For example, this may include air conditioners, standby power generators, embedded cranes, vehicle lifts, gantries, etc. In many cases, the Commonwealth will take

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responsibility for the management and Maintenance of these items that are part of the GFF (particularly for shared Facilities), and this needs to be identified in the Facilities Deed / Licence. However in some instances, for practicality and/or cost, it may be more effective for the Contractor to undertake these tasks.

If the Contractor will be maintaining part of the GFF (eg, embedded equipment), the drafter should discuss with DSRG the best way of incorporating these requirements into the Facilities Licence (thus providing visibility to both the CASG and DSRG of the Contractor’s obligations). The drafter will also need to ensure that, for Facilities plant and equipment, there are no gaps or overlaps between the Facilities listing and the GFM S&TE or Training Equipment lists (see clause 9.3 and 9.4). If the Facility performs a test and / or calibration function or must be calibrated itself to enable the provision of Services, then drafters should refer to the discussion on the optional clause below.

If the Contractor is also required to perform physical security of the Facility, such as providing security guards, this should also be discussed with DSRG.

If the Facility performs a test and/or calibration function:

Some Facilities (either Government-owned or Contractor-owned) may be used to perform a test or calibration function (eg, firing ranges, a radar range, pressure chamber, engine build up and test facility, etc). In these instances and where the Facilities are GFF, the calibration of the GFF or its embedded equipment could be added to the Facilities Licence or could be included in the draft SOW (by making additions to Section 3 of SOW Annex A, under clause 3, ‘Other Repairable Equipment’). Inclusion in the draft SOW has the advantage of grouping together the calibration requirements for S&TE, Training Equipment, and equipment that is considered part of Facilities, and including them on the same calibration register.

If calibration of Facilities or Facilities’ equipment is required, then the drafter should include the optional clause below in the draft SOW.

In rare instances, the Contractor will be required to support Defence-owned Facilities that are not managed by DSRG. The template provides the framework for identifying these Facilities at Section 7 of Annex A to the SOW. Clause 9.6, and the Facilities licence / deed would need to be expanded to accommodate the scope of this work.

Related Clauses: COC clause 3.6, Government Furnished Facilities.

Draft SOW clause 9.3, Support and Test Equipment.

Draft SOW clause 9.4, Training Equipment.


Attachment E, Government Furnished Material, Government Furnished Facilities, and Government Furnished Services.

Annex D to Attachment I, Government Furnished Facilities Licence Deed.

Optional Clauses:

If the Facility performs a test and/or calibration function, then include the following clauses in the draft SOW:

The Contractor shall maintain a calibration register that includes GFF employed in calibration, test and/or measurement functions and shall, upon request, provide the Commonwealth Representative or a delegated representative with access to that calibration register.

The Contractor shall ensure that Facilities and Facilities’ equipment requiring calibration is calibrated by an organisation accredited by [...INSERT APPLICABLE ACCREDITATION AGENCY...] for the class of testing appropriate to the Facilities and equipment, and in accordance with the applicable technical documentation.

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9.7 Computer Support


Status: Optional

Purpose: To define the Contractor’s obligations in relation to computer support used in the process of providing Services and the associated planning and reporting required by the Contract.

Policy: Nil

Guidance: Computer support clauses may be required where computers are required to interface with Defence information systems or as tools to support the provision of Services and management functions (eg, Maintenance scheduling, software development, and preparing management reports). The computer support clause does not cover Software Support, which is addressed under Engineering Support. If no support of this nature is required, then the drafter should delete the default clauses and replace them with a single ‘Not used’.

If the computing equipment interfaces with a Defence information system, the hardware and software may be provided and maintained by Defence and this will be detailed explicitly elsewhere in the SOW, including through addition to specific DSDs (eg, DSD-SUP-MILIS). In this situation, the Commonwealth-provided equipment should be listed as GFM because it will be subject to the requirements of the GFM clauses and accounting requirements for Commonwealth-owned assets.

If computer support is a resource required to be provided by the Contractor to enable Services, then the drafter may include the optional clause in the SOW as a starting point to further identify computer support requirements. In developing the further requirements, the drafter should consider:

a. Information System Security (refer Defence Security Manual and COC clause 10.10 and SOW clause 3.14);

b. application programs specific to the Services;

c. who will be responsible for providing software;

d. who will be responsible for procuring software updates and annual licences;

e. what are the restrictions on the Contractor for the use of Commonwealth provided software; and

f. how the Contractor will be informed of changes to the Defence Standard Operating Environment (SOE) and who will be responsible for paying for these changes.

Related Clauses: Draft SOW clause 2.3, Data Management System.

Draft SOW clause 3.11.2, Care of Contractor Managed Commonwealth Assets.

Draft SOW clause 3.14.3, Information Systems Security.



DSD-ENG-SERV, Routine Engineering Services.

DSD-ENG-CM, Configuration Management.

DSD-ENG-SW, Software Support Services.

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DSD-MNT-SA, Systems Administration Services.

DSD-SUP-SERV, Routine Supply Services.


DSD-TNG-MGT, Training Management Services.


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10. VERIFICATION AND VALIDATION


Status: Core

Purpose: To define the V&V requirements for the Contract, to provide an assessment of current performance and as an indication of future performance, compliance, process efficiency and, if applicable, Materiel System health.

Policy: Nil

Guidance: V&V in a support context differs from the more common application of V&V, in acquisition, in that Services are assessed rather than ‘supplies’ / Products. Accordingly, the objectives are to determine if Services are being provided as required by the Contract (Verification), and if those Services are what the Defence customer actually needs (Validation). Note that, in ASDEFCON (Support), while the focus is on Services, new/ modified Products may be delivered as outcomes of those Services and be subject to Acceptance V&V under the engineering program.

The V&V clause in ASDEFCON (Support) is intended for use when the Contract involves a set of defined performance measures and where payments are linked to performance as measured using Key Performance Indicators (KPIs). The V&V clause is required for all PBCs and is therefore core to this template. If the contract being drafted is not a PBC, and ASDEFCON (Support Short) was not a suitable template, further advice should be sought from PCSB.

Transactional and Performance Based Contracts

The ASDEFCON (Support) template is intended for drafting a PBC/PPBC. In a transaction-based contract, the ‘transaction’ is a payment made for each task performed by the Contractor, as listed in the Price and Payment Schedule. For example, a Contractor is paid a set fee for each Maintenance task as a separate event or transaction, and the fees are summed together in an invoice. In a PBC, the Contractor is paid for contributing to Defence outcomes represented by performance measures that can vary from high-level ‘fleet availability’ measures to lower-level ‘nil stock-outs’, ‘order response times’, or ‘average repair time’ measures. In a PBC model, there are still a number of transaction-based payments, such as S&Q Services and Task Priced Services that are not measured by KPIs, and firm-priced Recurring Services without KPIs (eg, on-going contract management tasks).

Further guidance for the PPBC mechanisms in this template is included in the PPBC Guide for ASDEFCON (Support) V3.1. For the PMR and PAR refer to the guidance for SOW clause 3.4.1 and clause 3.4.5. There are also notes within Attachment P, Attachment Q, and Annex C to Attachment B. Introductory guidance on PBCs and PPBCs is also included in the PPBC Guide.

How the Template Works

The following explanation describes how the V&V clause interacts with the other parts of the template:

a. The V&V Plan is used to define the Contractor’s management of the V&V program. This includes the required measurements, recording systems, data collection and processing, and reporting requirements.

b. The SSVM is used to report performance against the all Performance Measures on a regular basis (eg, monthly). The frequency of delivery (in the CDRL) should be determined based on the measurement periods for KPIs and Other Performance Measures (OPMs) (note that measurements and reporting periods are often shorter than the Review Periods for KPIs). The SSVM delivered for the end of a Review Period also includes the Achieved Performance and the proposed APS for each KPI (refer to Attachment P for

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guidance on Achieved Performance results and the APS). The SSVM also reports on OPMs (refer to Attachment Q). OPMs are not used for calculating Performance Payments, but may be used for another purpose, such as to indicate the ‘health’ of the Mission System and/or parts of the Support System, for measuring compliance, for Validation purposes, process monitoring, or to validate factors used in the calculation of KPIs.

c. KPI Results are also included in the PMR, a part of the CSR (see clause 3.4.1). The frequency of this report (eg, three to six monthly) is based on the Review Period over which performance against the KPIs are assessed. Accordingly, the SSVM could report ‘system availability’ on a monthly basis, but the PMR delivered at the end of a three-month Review Period would include the performance assessment (ie, including determination of Performance Bands, the APS and any proposed amendments to the APS regarding performance relief). The PMR includes results from the SSVM, and calculations from Annex A to Attachment P and Annex C to Attachment B, to determine Performance Payment Amounts.

d. Results in the PMR are discussed at the PAR (clause 3.4.5). Any disagreement regarding KPI results may require reference to the SSVM.

e. Results recorded in the SSVM for OPMs would normally be used in other analyses or simply to monitor the state of the Materiel System and Contract, in order to inform future planning activities.

Notably, the V&V clause provides one step in the PBC framework that links the Outcomes Defence desires to the Contractor’s performance and payments.

The following diagram shows the associated DIDs supporting SOW clause 10.

Verification and Validation SOW Structure

Related Clauses:

COC clause 6, Performance, Acceptance and Ownership.

COC clause 7.1, Price.

Attachment B, Annex C, Performance Payments.

Attachment P, Performance Assessments (for KPIs).

Attachment Q, Other Performance Measures.

Draft SOW clause 3.4.1, Status Review and Reporting

Draft SOW clause 3.10, Independent Verification and Validation.

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Draft SOW Clause 11, Quality.

DID-V&V-V&VP, which specifies requirements for a V&V Plan.

DID-V&V-SSVM, which specifies requirements for a SSVM.


10.1 Verification and Validation Objectives


Status: Core

Purpose: To define the V&V objectives for the Contract.

Policy: Nil

Guidance: This clause must be tailored to match the Contract. Basically, this clause requires KPIs and/or OPMs to be inserted where indicated, however, more Contract-specific clauses in relation to Outcomes (measured by KPIs) may be added.

Drafters should also tailor Attachment P, which specifically requires the Outcomes that Defence wants to be defined, the contribution to those Outcomes made by the Contract (essentially, the major objectives), and the KPIs that are used to measure them. Accordingly, further development of this clause should be consistent with Attachment P, or cross-refer to Attachment P.

Related Clauses: All other subclauses under draft SOW clause 10.


10.2 Verification and Validation Planning


Status: Core

Purpose: To require the Contractor to plan the V&V program for the Contract.

Policy: Nil

Guidance: The V&V Plan should define the organisation and processes to be used by the Contractor to record and, if necessary, measure outputs associated with performance measures.

If this template is used for a smaller Contract, the V&V planning required to coordinate the collection and analysis of performance measures may be minimal. In these cases, the requirements for V&V planning may be incorporated into the SSMP. DID-SSM-SSMP includes requirements to address V&V topics if the SOW requires V&V planning to be included in the SSMP.

Based on the requirement for a separate V&VP or inclusion in the SSMP, drafters need to select from the optional clauses in the SOW template and update the subsequent clauses with ‘V&VP’ or ‘SSMP’ accordingly.

Related Clauses: All other subclauses in draft SOW clause 10.

Attachment P, Performance Assessment.

Attachment Q, Other Performance Measures.

COT Attachment A, Annex G, TDR G-2.

DID-V&V-V&VP, which specifies requirements for a V&VP.

DID-SSM-SSMP, which specifies requirements for a SSMP.

CDRL Line Number V&V-100.


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10.3 Support Services Verification and Validation Activities


Status: Core

Purpose: To define the mechanism by which Contract performance measurement results are reported, and the current status of performance, applicable to each measure, is recorded and delivered to the Commonwealth.

Policy: Nil

Guidance: SOW clause 10.3 captures most of the scope of the V&V activity (other than planning). Firstly, the Contractor is required to measure, analyse and record performance information in accordance with the Approved V&VP or Approved SSMP. Drafters need to insert the applicable plan into clause 10.3, as selected at clause 10.2. By referring to the Approved V&V Plan or SSMP, the Contractor is required to undertake the V&V activities described in the selected plan.

Clauses 10.3.2 to 10.3.5 refer to the delivery and use of the SSVM. The SSVM provides a single focal point for reporting results against Performance Measures, including KPIs and OPMs. The SSVM identifies (or cross-references) the methodology or procedure that is used to measure each Performance Measure and to calculate the results, it records the current and historical performance results, provides trend analyses, and identifies reasons for aberrations in collected data. The SSVM can help to group together lower-level Performance Measures that must be combined to create a meaningful measure of the Services being provided (eg, several measures for the delivery of spares at different order priorities and to different locations may be needed in order to produce a single Supply Support KPI – as defined in Attachment P).

Results from the SSVM are used to prepare the PMR (a part of the CSR that may be delivered separately), which informs the PAR undertaken to review contractor performance and determine / confirm Performance Payments for a PBC / PPBC. Measurement results and calculations underpinning the SSVM must be retained and, if necessary, provided to the Commonwealth Representative, in order to support the evaluation of the PMR and conduct of the PAR.

Clause 10.3.5 also requires the Contractor to investigate performance shortfalls and prepare Remediation Plans, without the need for a specific request from the Commonwealth Representative, on any occasion that the performance measured against any KPI drops from Bands A or B and into Bands C or D. The Remediation Plan is to detail the Contractor’s strategy to recover performance to more agreeable levels and, once Approved, the plan becomes the basis for managing that recovery and preventing future shortfalls. The use of Performance Bands in clause 10.3.5, to trigger the need for a Remediation Plan is consistent with a number of other clauses throughout the Contract. Hence, reference to the Performance Bands should not be changed in this clause, rather the way that KPIs are defined in Attachment P should support this action whereby a Remediation Plan is a warranted response to results in Performance Bands C and D. This is consistent with the generic Performance Band descriptions in clause 2.4 of Attachment P and COC clause 6.12.

In support of establishing longer term trend information, and to resolve any discrepancies at PARs, SOW clause 10.3.6 requires the Contractor maintain and provide, on request, measurement data collected through the V&V process.

The drafter needs to insert the selected plan into clause 10.3, while all other sub-clauses should be effective without change.

Related Clauses: COC clause 6.12, Remediation of Performance Problems.

Attachment P, definition of the performance measurement and assessment processes (clause 1.2) and Performance Bands (clause 2.4).

All other subclauses under draft SOW clause 10.

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DID-SSM-CSR, which defines requirements for the CSR including the PMR.

DID-V&V-SSVM, which defines requirements for the SSVM.

DID-V&V-V&VP, which defines requirement for the V&VP including the Verification activities to be undertaken in preparing the SSVM.


10.4 Performance Implementation Period


Status: Optional

Purpose: To address the work effort involved in the Performance Implementation Period (PIP), including the PIP Completion Review.

Policy: Nil

Guidance: The PIP is an initial period in a PBC / PPBC when the full performance-management framework and linkages to all or part of the Performance Payments are suspended while the new contract stabilises. Often this period includes the initial deliveries of systems from a Contract (Acquisition) intended to form part of a much larger fleet, abnormal use patterns as platforms undergo Validation activities (eg, user / sea trials, post Acceptance), and while the Contractor is still establishing elements of support (eg, new functions and integrating large numbers of newly trained personnel). The PIP also enables the performance measurement methods and reporting systems to be proven. Parameters for the PIP, including duration and whether it is divided up into two or more stages, are described in Annex C to Attachment B.

To confirm and adjust the performance measurement and reporting system, and the success of the PIP overall, a PIP Completion Review is held just prior to the end of the PIP, in preparation for the commencement of the full / mature performance management framework provisions.

If there is no PIP, then the clause should be deleted and replaced with ‘Not used’. If a PIP is required then the governing plan for V&V, either the V&VP or SSMP, should be inserted into the clause as indicated. The clause could be expanded if there were specific work requirements for the PIP described by Annex C to Attachment B, or Annex C to Attachment P.

Related Clauses: All other subclauses under draft SOW clause 10.

Annex A to Attachment B, when stages in the PIP are linked to Milestones.

Annex C to Attachment B, Performance Payments.

Annex J to Attachment B, Schedule of Payments, for when Recurring Services Fees in Annex C are adjusted for a lower initial level of Services during Ramp Up.

Annex A to Attachment P, Key Performance Indicators.

Annex B to Attachment P, Performance Implementation Period.

Draft SOW clause 2.7, Ramp Up.


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11. QUALITY MANAGEMENT


Status: Core

Purpose: To define the quality-related requirements for the Contract through both this clause of the SOW and the associated DIDs.

Policy: DPPM, Section 3, Chapter 3.5 Quality Assurance

DEFLOGMAN, Part 2, Volume 7, Chapter 1, Defence Supplier Quality Assurance Manual

AS/NZS ISO 9001:2008 Quality Management Systems - Requirements

AS/NZS ISO 9000:2006 Quality Management Systems – Fundamentals and Vocabulary

Guidance: All ASDEFCON (Support) RFTs and contracts are to contain a requirement for Quality Management.

Drafters need to establish the Quality requirements for the draft SOW based on cost and Quality requirements for managing the system as a whole.



11.1 Contractor Quality Responsibilities


Status: Core

Purpose: To define the general quality-related requirements for the Contract.

Policy: As above

Guidance: These clauses must be included as they ensure that:

a. the Contractor has a Certified QMS in place at the Operative Date;

b. Approved Subcontractors have a QMS appropriate to the work required under any Subcontract; and

c. the Commonwealth has access to the Contractor’s and Subcontractor’s facilities for the purposes of performing Audit and Surveillance activities, if required.

Related Clauses: COC clause 10.7, Commonwealth Access and Records.

Draft SOW clause 5.4, Technical Regulation of Engineering Support.

Draft SOW clause 6.4, Technical Regulation of Maintenance Support.


11.2 Quality Management Planning


Status: Core

Purpose: To define the quality-related requirements for the Contract.

Policy: As above

Guidance: Requirements for the Quality Plan are defined in DID-SSM-QP, which references out to AS/NZS ISO 10005:2006 Quality management – Guidelines for Quality

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Plans and AS 3925.1:1994 Software Quality Assurance Part 1: Plans, when the software support is applicable to the Contract.

For smaller Contracts (Support), it may be possible to roll-up the Quality Plan into the SSMP. Optional clauses A or B should be selected and the subsequent clauses should be tailored accordingly.

Related Clauses: DID-SSM-QP, which specifies requirements for a Quality Plan.

DID-SSM-SSMP, which specifies requirements for the SSMP, including Quality planning if rolled up into the SSMP.

CDRL Line Number MGT-140


11.3 Quality Systems, Process and Product Non-Conformances


Status: Core

Purpose: To specify the quality processes to be followed by the Contractor for the Contract when non-conformance with respect to Quality Systems, Process or Product is determined.

Policy: As above

Guidance: The first two clauses must be included. The drafter then needs to determine whether the particular draft SOW involves a significant technical risk element, such as if a significant engineering change or software support program is likely. If significant technical risk elements are identified, the option in SOW clause 11.3.3 should be included.

Related Clauses: DSD-ENG-SERV and DSD-ENG-SW for hardware and software design change programs that may incur significant technical risk.


11.4 Non-Conforming Services


Status: Core

Purpose: To specify the quality approval processes to be followed by the Contractor for when non-conforming materials or work in the Services are identified.

Policy: As above

Guidance: Clause 11.4 describes the interactions between the Contractor and the Commonwealth for the submission, review and processing of an Application for Deviation. An Application for Deviation is required for non-conforming Services, which includes both the Services themselves and the goods / Products supplied or otherwise supported by the Services. These clauses need not be tailored.

Clause 11.4.1 requires the Contractor to submit the Application for Deviation, in accordance with the CDRL and, as a result, prepared in accordance with DID-PM-MGT-AFD. This DID contains the Form SG2 but allows the Contractor to submit the Application for Deviation either using the form in the DID itself or the SG002 form available on WebForms (if the Contractor has been given access to the Defence intranet).

Clauses 11.4.2 and 11.4.3 describe the conditions around the Commonwealth’s Approval or non-Approval of the Application for Deviation, while clauses 11.4.4 to 11.4.6 describe the conditions placed on an Approved Application for Deviation.

An Application for Deviation may refer to either a permanent Deviation (resulting in a permanent design or process changes) or temporary Deviation. Clauses 11.4.7 and 11.4.8 describe the process for closing temporary Applications for Deviation,

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while clause 11.4.9 defines the actions of the Commonwealth should a request to close an Application for Deviation be rejected.

Clause 11.4.10 acknowledges that the processing of each Application for Deviation, as per clause 11.4 is included as a Recurring Service.

Drafters should review the CDRL details and DID-PM-MGT-AFD for the delivery of Applications for Deviation.

Related Clauses: DID-PM-MGT-AFD, Application for Deviation (an ASDEFCON (Strategic Materiel) DID).

DSD-ENG-CM, Configuration Management clause 6.2.5, with respect to Configuration Control of Deviations.

DSD-MNT-SERV, Routine Maintenance Services clause 6.2.6, for Implementing Non-Standard Repairs and Deviations.

CDRL Line Number MGT-160, for the Application for Deviation.


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12. HEALTH, SAFETY AND ENVIRONMENT

Sponsor: Refer to individual subclauses

Status: Core

Purpose: To define the requirements for the management of risks to health, safety and the environment in relation to the Products Being Supported and in the provision of the Services.

Policy: Policy requirements are driven by the following Acts and associated regulations:

a. Australian Radiation Protection and Nuclear Safety Act 1998 (Cth);

b. Environment Protection and Biodiversity Conservation Act 1999 (Cth);

c. Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 (Cth); and

d. Work Health and Safety Act 2011 (Cth).

Refer also to the policy applicable to the individual sub-clauses.

Guidance: The Commonwealth is required by WHS Legislation to ensure so far as is reasonably practicable, the health and safety of workers at work and that the health and safety of other persons is not put at risk from the Commonwealth’s activities. This includes a duty of care for workers that are ‘caused to be engaged’ by Commonwealth activities, such as Contractor and Subcontractor staff. All ASDEFCON (Support) RFTs and contracts are to contain Work Health and Safety (WHS) requirements to enable Defence to comply with its obligations under the WHS Legislation. Further requirements, derived from Defence policy, implement organisational procedures that allow these obligations to be met.

Environmental obligations are also driven by Australian legislative and regulatory requirements, governing the protection of the environment and the conservation of biodiversity, and Defence policies to enable implementation and compliance. When applicable, the Commonwealth is required to manage the environmental impact of its contracts, consistent with these obligations.

Health, safety and environment requirements in the SOW must be tailored to suit the individual requirements of the Contract, particularly with respect to work performed on Commonwealth Premises (eg, in GFF), work involving Commonwealth Personnel, work involving the use, storage and handling of Problematic Substances and work involving Problematic Sources.

As there are numerous sources of hazards and risks, relating to the Products and the Services, hazard and risk information is included in a number of locations within the Contract, data items and in GFI/GFD. Figure 3 identifies where this hazard and risk infomration is located. To briefly explain:

Hazards at Contractor premises should be detailed in the Contractor’s WHSMS. Although moving into new premises or performing a new type of work will add to this information, a lot of information should exist before the Contract, in a WHSMS, to enable the Contractor to comply with its obligations under the WHS Legislation. As this information can be updated frequently, CASG gains access to the WHSMS via the DMS (see SOW clause 2.3).

Problematic Substance and Problematic Sources that the Contractor will bring onto Commonwealth Premises need to be Approved and their purpose / use must be part of that Approval (as part of the Commonwealth’s obligations to ensure a safe working environment). As the lists of Approved Substances and Approved Problematic Sources may be updated regularly the lists are included in an annex to the HSMP (eg, SDSs are prepared by suppliers and SDS information changes whenever the Contractor changes a supplier). Likewise,

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Problematic Substances and Problematic Sources used, handled or stored by Commonwealth Personnel on Contractor or Approved Subcontractor premises are subject to Approval. This mostly applies to MRU performing Maintenance but it can also be applicable to other MRU tasks and RP.

The Commonwealth is to provide information for hazards on Commonwealth Premises where Contractor and Approved Subcontractor personnel will work. These include Problematic Substances, Problematic Sources, noise, high voltage electricity, asbestos in buildings, and so on. Generally, these hazard details do not change often. They are included within SOW Annex E.

Figure 3: Documenting WHS and Materiel Safety Hazards

Hazards may also be present in the Products Being Supported and GFE (which may or may not be supported). The primary source for information regarding hazards to users and support personnel, which are reasonably foreseeable, should be the applicable technical (operator, maintenance and other) manuals, with procedures designed to minimise risk. This information should be supplied to Defence when the products are acquired and passed on to the Contractor. Other information may include Safety Case Reports, hazard logs and safety baselines used for product certification. Depending on the Contractor’s scope of responsibility, different information will need to be provided (eg, maintenance of S&TE will require more information than only operating it).

Although not part of the Contract itself, the template also refers to the use of the ChemAlert database to record the location and quantities of Problematic Substances that the Contractor may bring onto Commonwealth Premises.

Related Clauses: COC 11.4, Work Health and Safety

COC 11.5, Environmental Obligations

Refer to sub-clauses.


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12.1 Problematic Substances and Problematic Sources

Sponsor: WHS Procurement Advisory Cell

Status: Core

Purpose: To define the requirements for the management of Problematic Substances and Problematic Sources that may be included in the Products or deliverable items and/or used during the provision of Services, as applicable.

Policy: Australian Code for the Transport of Dangerous Goods by Road and Rail, Seventh Revised Edition (National Transport Commission, 2011) (ADG7)

Australian Radiation Protection and Nuclear Safety Act 1998 (Cth)

Australian Radiation Protection and Nuclear Safety Regulations 1999 (Cth)

Defence Radiation Safety Manual

Defence Work Health and Safety Manual (Defence WHS Manual)

DEFLOGMAN, Part 2, Volume 3, Ozone Depleting Substances and Synthetic Greenhouse Gases Manual

Capability Acquisition and Sustainment Safety Management System (CASsafe)

Defence Procurement Policy Manual (DPPM), Section 3, Chapter 3.16, Environment in Procurement, and Chapter 3.17, Work Health and Safety in Procurement

Environment Protection and Biodiversity Conservation Act 1999 (Cth)

Globally Harmonized System of Classification and Labelling of Chemicals (GHS), Third Revised Edition (United Nations, 2009) at: http://www.safeworkaustralia.gov.au/sites/SWA/SafetyInYourWorkplace/HazardousSubstancesAndDangerousGoods/GHS/Pages/GHS.aspx

Guide for Major Hazard Facilities: Notification and Determination (Safe Work Australia)

Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 (Cth)

Work Health and Safety Act 2011 (Cth)

Work Health and Safety Regulations 2011 (Cth)

Codes of Practice approved under section 274 of the Work Health and Safety Act 2011 (Cth)

Guidance: The Commonwealth is required by WHS Legislation to ensure, so far as is reasonably practicable the health and safety of workers at work and that the health and safety of other persons is not put at risk from Commonwealth activities. This includes a duty of care to workers who are ‘caused to be engaged’ by Commonwealth activities, including Contractor and Subcontractor Personnel.

The Commonwealth is also required to manage the environmental impact of its activities, consistent with its obligations under legislation for the protection of the environment and the conservation of biodiversity.

Furthermore, the Commonwealth is required to ensure that sources of radiation are treated in accordance with the requirements of radiation protection legislation.

Accordingly, Defence policy aims to minimise use of Ozone Depleting Substances (ODSs), Synthetic Greenhouse Gases (SGGs), Dangerous Goods and Hazardous Chemicals (collectively referred to as Problematic Substances) where practicable. In addition, materials and apparatus that are regulated under radiation protection legislation (Problematic Sources) must be authorised with an appropriate license.

Clause 12.1 addresses the management of Problematic Substances and Problematic Sources, to enable the Commonwealth to meet its obligations under

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http://www.safeworkaustralia.gov.au/sites/SWA/SafetyInYourWorkplace/HazardousSubstancesAndDangerousGoods/GHS/Pages/GHS.aspx

http://www.safeworkaustralia.gov.au/sites/SWA/SafetyInYourWorkplace/HazardousSubstancesAndDangerousGoods/GHS/Pages/GHS.aspx


legislation and to define related interactions between the Contractor and Commonwealth.

Use of Problematic Substances

The intent of clause 12.1.1 is that the Contractor and Approved Subcontractors do not use a Problematic Substance on Commonwealth Premises unless the substance, and the purpose for its use, have been Approved. Likewise, where Commonwealth Personnel (eg, MRU and RP) will use, handle or store Problematic Substances on Contractor or Subcontractor premises, these must be Approved.

Note that the Commonwealth will have general visibility of Problematic Substances used on Contractor premises via the WHSMS. Additionally, where Commonwealth Personnel are located on Subcontractor premises, those Subcontractors need to be Approved Subcontractors to ensure the flow-down of provisions for WHS.

Approved Substances, and their Approved purpose(s), are listed in an annex to the HSMP. Any amendments such as adding a new Problematic Substance, chaning supplier, a change in purpose, or the removal of those Problematic Substances that are no-longer required, are addressed by the Approval and update of the HSMP annex (the HSMP itself is delivered under clause 12.3.2).

Defence requires details of Problematic Substances on Commonwealth Premises to be recorded using ChemAlert and this applies to the Contractor’s on Commonwealth Premises through clause 12.1.1.2. If the Contractor will have DRN access, they could be given access to ChemAlert and enter details directly. If the Contractor will not have DRN access, the information can be provided to the Commonwealth Representative / SPO for data entry. Accordingly, this clause is drafted so that it does not require the Contractor to have DRN access.

Clauses 12.1.1.3 and 12.1.1.4 define a process whereby the Contractor notifies the Commonwealth of any new Problematic Substance required or that they have discovered, or of a new purpose for an Approved Substance. The clause then outlines the Approval process. ‘Discovery’ refers to an existing Problematic Substance that has not been Approved (eg, being used by a person who was not informed of the Approval requirement). Details of a discovered Problematic Substance, new Problematic Substance being requested, or the new use of an Approved Substance, are to be included in a draft update to the HSMP (annex only) with the applicable Safety Data Sheet (SDS) and details of any required Authorisations provided as supporting evidence. Note that, in accordance with DID-PM-HSE-SDS, the Contractor does not need to deliver a new SDS if they can uniquely identify that SDS in the ChemAlert database used by the Commonwealth (ie, a new SDS is not required if CASG already has a copy of that SDS).

The interaction between clause 12.1.1.1 and clauses 12.1.1.3 and 12.1.1.4 means that a lot of Problematic Substances could be presented as “new” Problematic Substances for Approval in the initial draft of the HSMP. Likewise, many Authorisations will need to be presented as supporting evidence before OD.

Clauses 12.1.1.5 describes the actions and obligations when either party discovers a previously unknown Problematic Substance within CMCA, such as the Products Being Supported or GFE (which are not always Products Being Supported). Discovery may be the result of limited product information being provided during acquisition. The first action is to inform the other party of the hazard so that WHS risks can be minimised. Consultation will then seek solutions such as substitution or updated work procedures to manage the risk – implementing some solutions may require S&Q Services (eg, to develop updates to maintenance manuals).

The final two clauses are general requirements for the Contractor to seek lower-risk substitutes for Approved Substances and to minimise WHS and environmental hazards and risk when introducing new Products or modify existing Products.

Drafters need to determine if work will be performed on Commonwealth Premises or if Commonwealth Personnel will work on Contractor or Approved Subcontactor premises. If so, the optional clauses 12.1.1.1 to 12.1.1.4 should be included,

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otherwise the option may be deleted. Drafters should be able to include the remaining sub-clauses under clause 12.1.1 without change.

Background information:

The Code of Practice for the Preparation of Safety Data Sheets for Hazardous Chemicals does not mandate (but encourages) SDSs for chemicals that are not classified by the GHS as Hazardous Chemicals (eg, an ODS or SGG that is not also a Hazardous Chemical). The GHS (Part 4) and sections in the SDS address environmental hazards. By following the GHS-recommended practice of using SDSs, it allows a common approach for managing all Problematic Substances; even if sections within an SDS are completed differently.

Hazardous Chemicals. Hazardous Chemicals are defined by reference to the Work Health and Safety Regulations 2011 (Cth), which use the criteria for hazard classes in the GHS. The GHS classifications are modified by Schedule 6 of the Work Health and Safety Regulations 2011 (Cth), which specifies lower concentration thresholds for some chemicals. The lower thresholds have implications for imported substances that may not be classed as a Hazardous Chemical in their country of origin, but which must be classified as a Hazardous Chemical in Australia. The definition of Hazardous Chemical is included in Attachment M (Glossary) refers to the meaning of hazardous chemical provided by subregulation 5(1) of the Work Health and Safety Regulations 2011 (Cth).

Dangerous Goods. Dangerous Goods are defined in accordance with ADG7, which addresses Australian-specific content, such as the Australian Explosives Code, and a number of international provisions including the United Nations Recommendations on the Transport of Dangerous Goods, Model Regulations. Essentially, this means that the classification, labelling and management of Dangerous Goods by local and overseas contractors should be similar.

Ozone Depleting Substances and Synthetic Greenhouse Gases. Substances classed as ODSs are listed in Schedules 1 and 3 of the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 (Cth). ODSs destroy the ozone layer in the atmosphere. SGGs were introduced as replacements for ODSs but were found to be strong greenhouse gases and were subsequently placed under a similar management and replacement regime to the ODSs that they replaced.

Quotas are imposed on individual organisations in relation to the importation and manufacture of ODSs and organisations handling ODSs and SGGs are to be licensed under the Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 (Cth). DEFLOGMAN, Part 2, Volume 3 implements the WHS Act’s requirements in Defence for existing equipment and new purchases. The DPPM, Section 3, Chapter 3.16 requires contract managers to ensure that contractors comply with the Act and produce evidence of the relevant licences for ODSs and SGGs. This is applicable to contractor’s performing activities that involve these substances rather than contractors that maintain Products that may host these substances. For example, this applies to a company that maintains fire extinguishers, not the company maintaining the gas-turbine engine that the extinguisher is fitted to (unless, of course, they are the same company).

Manifest of Hazardous Chemicals

Under regulation 347 of the Work Health and Safety Regulations 2011 (Cth), a person conducting a business or undertaking at a workplace must prepare a manifest that is compliant with Schedule 12 of the Work Health and Safety Regulations 2011 (Cth) if the quantity of a Schedule 11 Hazardous Chemicals used, handled or stored exceeds the manifest quantity in Schedule 11, Table 11.1, column 5. That manifest must also be amended to reflect any change in the type or quantity of the Schedule 11 Hazardous Chemical(s) or other significant details.

Clause 12.1.2 is optional and draft optional clauses are included below. The clauses are not included in the template by default as such quantities of Hazardous Chemicals on Commonwealth Premises are usually held in hazardous goods storage areas managed by JLC; rather than a Materiel System support contractor.

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The Defence WHS Manual, Volume 3, Part 3A, Chapter 1, Section 2 defines ‘manifest requirements’ for Defence, including Contractors on Commonwealth Premises. ChemAlert records Hazardous Chemicals on Commonwealth Premises and can assist in the preparation of ‘manifest quantity notifications’, hence the manifest is prepared for the whole Defence site and a separate Contractor-only manifest is generally not required.

When included in the draft SOW, the clauses require the Contractor to develop, deliver and update a Manifest of Hazardous Chemicals in accordance with the CDRL. DID-SSM-MHC requires that the manifest follow the requirements of Schedule 12 of the Work Health and Safety Regulations 2011 (Cth).

This optional clause is not required when the Contractor will not hold Schedule 11 Hazardous Chemicals on Commonwealth Premises at or above manifest quantities. When required, the optional clauses below should be transferred to the SOW.

Asbestos Containing Material (ACM)

Work involving asbestos is prohibited subject to the exceptions set out in WHS Legislation (see, for example, regulation 419 of the Work Health and Safety Regulations 2011 (Cth)). While there are some exemptions in the regulations, including for ACM fixed or installed prior to 31 December 2003, the Australian Government has prohibited the incorporation of ACM in Defence materiel and it is Defence policy for in situ ACM to be removed as soon as reasonably practicable, having regard to maintenance schedules and the regulatory requirements.

Clause 12.1.3 creates a framework for the management of in-situ (and discovered) ACM. Clause 12.1.3 is separated from clauses 12.1.1 and 12.1.2 because work involving asbestos is prohibited and, therefore, ACM can never be an Approved Substance. This approach is similar to that taken in the Work Health and Safety Regulations 2011 (Cth), whereby regulations for work involving asbestos is set out in Chapter 8, separate to Hazardous Chemicals in Chapter 7.

ACM that is in known to be in the Products is identified in the relevant Defence Asbestos In-Situ Register (DAIR). Until every instance of ACM in Defence materiel is identified and accurately located in the DAIR, there will be a possibility that in situ ACM, fixed or installed prior to 31 December 2003, may be discovered.

It should be noted that different registers are used for asbestos in buildings that may be offered as GFF. The identification of asbestos in GFF is dealt with under clause 12.3.1.3.

The information in the DAIR should be used by CASG SPOs to notify the Contractor of the location and condition of known in situ ACM within Products Being Supported. In such circumstances, the Contractor must be forewarned of that possibility and must indicate in its HSMP and RMP that its workers are competent, and that there are appropriate procedures in place to deal with that possibility.

If either party discovers ACM, then in accordance with clause 12.1.3.1 they must inform the other party. In addition, as required by clause 12.1.3.2, that notice must include an assessment of the condition and amount of ACM discovered. If the ACM discovered is friable (ie, in a powder form or able to be crumbled, pulverised or reduced to a powder by hand pressure when dry) or likely to become friable (ie on attempting to remove it), then clause 12.1.3.3 requires the Contractor to make the workplace safe and eliminate the risk of exposure to that ACM. In all other cases, the Contractor shall undertake whatever measures are considered appropriate by the Commonwealth. Essentially, this requires consultation, coordination and cooperation to determine and implement an appropriate course of action.

Non-friable in situ ACM within Products must be managed by the CASG in accordance with the Work Health and Safety Regulations 2011 (Cth), Defence policy on in situ ACM (see the Defence WHS Manual) and any relevant code of

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practice. Components discovered to contain non-friable ACM are to be replaced with alternative components that are asbestos free. Removal could, for example, be undertaken by the Contractor using appropriately qualified personnel and procedures (as an S&Q Service) or by a third party; depending on the outcome of the consultation between the parties.

Clause 12.1.3.4 requires the Contractor to remove any ACM that it inadvertently brings onto Commonwealth Premises (at no expense to the Commonwealth).

Clause 12.1.3.5 requires the Contractor to ensure that there is no ACM in newly-developed Deliverables and/or substitute Items, such as those introduced via a modification that introduces new Repairable Items. Substitute items are, most often, non-Repairable Items or consumables introduced to replace a part that has become obsolete (eg, replacement fuel filter or type of oil). Drafters should also refer to DSD-ENG-SERV 6.2.3 (Engineering Investigations) and DSD-SUP-SERV 6.2.8 Obsolescence Management.

Clause 12.1.3.5 also allows the Commonwealth Representative to request test results of representative sample items such as are high temperature / high friction items, including head gaskets, manifold gaskets, flange gaskets, seals, brake discs, brake pads/linings, clutch plates, insulation blankets, carburettors, door seals, safes, temperature probes, aviation fuel hoses, heat shields, adhesives, glues, resins, and paints (historically, these types of items have contained asbestos).

This clause is optional and may be replaced with ‘Not used’ if, and only if, it is confirmed that the Products do not contain ACM. Otherwise, this clause must be included without change.

Problematic Sources

Clause 12.1.4 addresses Problematic Sources. Problematic Sources include various materials and apparatus that are sources of radiation and that must be licenced by the Australian Radiation Protection and Nuclear Safety Authority (ARPANSA). These include sources of ionising and non-ionising radiation, with specific provisions for non-ionising radiation sources such as lasers and ultraviolet radiation sources. Some sources may be embedded within Products Being Supported (eg, a laser designator to be maintained) or used to provide Services (eg, x-ray equipment and radio-isotopes used for fluoroscopy as a non-destructive test).

Clause 12.1.4 recognises the licensing framework governed by ARPANSA, which enforces compliance with radiation protection legislation and assists to manage WHS risks. To obtain licences, safety plans and procedures are evaluated by ARPANSA. Products owned by Defence are covered by the Defence source licence or a facilities licence (established during acquisition); one source licence covers all of Defence’s radiation sources other than those coverd by a facility licence. Contractor-owned Problematic Sources must be covered by a licence held by the Contractor.

Clause 12.1.4.1 requires the Problematic Sources and the purposes for which they are used to be Approved by the Commonwealth Representative and included in an annex to the HSMP (or SSMP). Evidence of a relevant Authorisation is required for each Problematic Source (eg, a source licence other than a Defence licence). Where the Problematic Source exists at Commonwealth Premises to be used by the Contractor, it should also be listed as a hazard in SOW Annex E and the Defence source licence or facility licence identified.

Clause 12.1.4 are optional and only apply to work on Commonwealth Premises.

Clause 12.1.4.2 requires the drafter to list the reference(s) applicable to Contract work that will involve a Problematic Source on Commonwealth Premises and the applicable Defence WHS Manual chapter should be listed. Other references include standards for laser safety and specific Defence policies relevant to the location or nature of the Contract work. The Defence Radiation Safety Manual

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addresses management of ionising, non-ionising, laser and ultra-violet radiation safety. These requirements are applicable to Defence-owned Problematic Sources and related activities, which includes Contractors on Commonwealth Premises. Applicable references should be inserted into this clause. If the contractor will not be using Problematic Sources on Commonwealth Premises, this optional caluse may be deleted.

Clause 12.1.4.3 enables updates to the list of Problematic Sources by Approval of the new Problematic Source, or use, and update to the HSMP (or SSMP), supported by evidence of the applicable Authorisations (ie, licences).

Clause 12.1.4 is optional and may be deleted if it is confirmed that no Problematic Sources require support or will be used in the provision of Services. Alternatively, if clause 12.1.4 is required but the Problematic Sources are not to be used on Commonwealth Premises, optional clause 12.1.4.2 may be deleted. When applicable, drafters need to tailor the clauses with appropriate references.

Related Clauses: COT TDR E-7 requests tenderers to provide details of Problematic Substances that are proposed for inclusion in the Services.

‘Problematic Substances’, ‘Problematic Sources’, ‘Approved Substances’, 'Ozone Depleting Substances', ‘Synthetic Greenhouse Gases’, ‘Dangerous Good’, 'Hazardous Chemicals’ and ‘Asbestos Containing Material’ are defined in the Glossary.

COC clause 11.4, Work Health and Safety

COC clause 11.5, Environmental Obligations

Draft SOW clause 12.2, work requirements for Environmental Management

Draft SOW clause 12.3, work requirements for WHS.

Draft SOW Annex E, Known Hazard at Commonwealth Premises

DID-PM-HSE-SDS, Safety Data Sheet (an ASDEFCON (Strategic Materiel) DID).


Note to drafters: Insert the following clauses under the heading at clause 12.1.2 when the Contractor (or Approved Subcontractor) may become, or become part of, a Major Hazard Facility on Commonwealth Premises.

Where Approved Substances held by the Contractor or Approved Subcontractors on Commonwealth Premises are Schedule 11 Hazardous Chemicals that exceed, or are likely to exceed, the ‘manifest quantities’ specified in Schedule 11 of the Work Health and Safety Regulations 2011 (Cth), the Contractor shall develop, deliver and update a Manifest of Hazardous Chemicals in accordance with CDRL Line Number MGT-1110.

Without limiting clause 12.1.1, where the Contractor becomes aware of a change to the Schedule 11 Hazardous Chemicals such that new Schedule 11 Hazardous Chemicals are to be held at manifest quantities or existing Schedule 11 Hazardous Chemicals are to be removed from Commonwealth Premises, the Contractor shall provide an updated Manifest of Hazardous Chemicals in accordance with CDRL Line Number MGT-1110.

12.2 Environmental Management

Sponsor: Environment Heritage and Risk Branch, Defence Services and Reform Group

Status: Optional

Purpose: To obtain a description of how the Contractor proposes to manage environmental issues and comply with environmental requirements.

Policy: Environment Protection and Biodiversity Conservation Act 1999 (Cth);

DI(G) ADMIN 40-2, Environment and Heritage Management In Defence;

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DI(G) ADMIN 40-3, Assessment and approval of Defene actions under the Environment Protection and Biodiversity Conservation Act 1999;

Departmental Environment Instructions (DEIs);

Defence Environmental Strategic Plan;

Defence National Environment Legal Register;

Defence Service Charter;

Defence Procurement Policy Manual, Section 3, Chapter 3.16, Environment in Procurement;

AS/NZS ISO 14001:2004 – Environmental Management Systems – Requirements with Guidance for Use;

AS/NZS ISO 14031:2000 – Environmental Management – Environment Performance Evaluation – Guidelines; and

other environmental legislation, such as the Hazardous Waste (Regulation of Exports and Imports) Act 1989 (Cth).

Guidance: This optional clause is required when the Contractor will perform activities on Commonwealth Premises (including ships alongside or at sea, if applicable) and meet the additional environmental obligations of working on those sites, or where other significant environmental issue may be involved.

Under the Environment Protection and Biodiversity Conservation Act 1999 (Cth), a Defence activity that has, will have, or is likely to have a significant environmental issue requires the approval of the Minister for the Environment and Heritage. Drafters should refer to DEI 16/2002, which describes the process for determining whether a proposed activity is to be referred to the Minister, or cleared within the Department of Defence.

Drafters should consider the environmental impact of the Services and ensure that these are aligned with Defence environmental policy, which includes compliance with environmental legislation. The Directorate of Environmental Stewardship (DES) is responsible for providing advice on the level of environmental clearance required. It is the responsibility (financially and from a contract management point of view) of Defence proponents to take all necessary steps to gain approval as required by DES.

Environmental advice and requirements will not normally be required when the work will be undertaken at the Contractor’s own facilities. If there is no Contract work to be conducted on Commonwealth Premises and no other special environmental requirements (ie, refer DEI 16/2002), the draft clauses under 12.2.1 and 12.2.2 may both be deleted and replaced with ‘Not used’. If work at the Contractor’s site (only) has the potential to impact Services due to environmental issues, draft clauses under 12.2.1 may be replaced with ‘Not used’ and 12.2.2 replaced by the optional clause at the end of this section.

If there are no Defence requirements but special environmental requirements for work to be conducted at Contractor Facilities, then drafters should read the information below and seek further guidance from DSRG regarding the needs for environmental management.

Where work on Commonwealth Premises is applicable, the drafter should insert the names of those sites in the locations identified throughout clauses 12.2.

Note for the maritime environment. Environmental reports and additional Defence environmental management requirements may apply to ships at sea or alongside in a similar manner to other Commonwealth Premises. When applicable to the Contract, the drafter should determine if explicit inclusion of ships is required and include them in the ‘sites’ listed.

Acknowledgement of Environmental Advice. Clause 12.2.1 requires the Contractor to acknowledge the listed environmental reports relevant to the sites

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where work may be conducted under the Contract. Drafters should seek advice regarding applicable reports to be included from DSRG Regional Environmental Offices (REOs) for the locations applicable to the Contract.

Documents listed at clause 12.2.1 may be provided as GFD or GFI at Attachment E. If the information is essential for the Contractor to comply with legislation, manage liability, or if it contains particular Defence directions that are in addition to legislative requirements, then the documents will likely be GFD. This is appropriate if, for example, any inconsistency with legislation that was found would require Defence to provide corrected documents to the Contractor. In other cases, where the information is accessible in the public domain or for information purposes, the documents should be included as GFI.

Environmental Requirements. Clause 12.2.2 identifies the Defence requirements for the Contract that are in addition to environmental legislation. Drafters will need to determine, and include, any Commonwealth, Defence and/or location-specific policies that are relevant to the work under the Contract. The easiest way to find all relevant environmental references is by accessing the Defence ENVMS on the DEFWEB. Drafters should refer to individual sections in the referenced documents, not whole documents unless the whole document is applicable to the Contractor. If required, a Commonwealth Environmental Management Plan may also be an applicable reference. DID-SSM-ENVMP and DID-SSM-SSMP (for the applicable plan selected under clause 12.2.2) refer to this list of references.

The requirement for an Environmental Management Plan (ENVMP) would normally arise when the Contractor is required to meet Defence environmental requirements, such as to ensure coordination with Defence and local site requirements at a procedural level. A stand-alone ENVMP can also provide greater certainty of compliance, in a situation where there is a reasonably high risk of legislative breach, by ensuring that risk mitigation plans are fully documented.

When the Contract (Support) follows a Contract (Acquisition), environmental issues should have been addressed during the Requirements and Acquisition Phases of the life cycle. Drafters should refer to documentation developed during these phases for information on environmental issues relating to the Services, such as an Environmental Impact Assessment prepared under the Contract (Acquisition).

The degree of complexity and extent of the environmental management requirements will depend on the extent of the environmental risks involved. To assist in determining the environmental management requirements to be placed on the Contractor, the CASG support agency or other relevant authority should conduct an environmental risk assessment.

Drafters should consider including a requirement for the Contractor to provide a stand-alone ENVMP in situations where the Contractor might be working in an area that is especially sensitive to environmental issues or at Commonwealth Premises. REOs/DES should be consulted to determine this requirement.

Drafters should consider a range of factors when deciding whether a stand-alone ENVMP is required or if environmental requirements are sufficiently straight-forward to be managed through the SSMP. The overarching concern is whether there is a risk of significant environmental impact and DI(G) ADMIN 40-3, Assessment and approval of Defene actions under the Environment Protection and Biodiversity Conservation Act 1999, provides guidance.

Examples where an ENVMP may be required are:

a. testing of equipment that emits high-intensity electromagnetic radiation;

b. work that generates high levels of noise;

c. test and trials involving high energy underwater sonar;

d. testing of vehicles in an environmentally sensitive area; and

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e. activities that may cause pollution (eg, use of solvents).

If an ENVMP is required, drafters should:

a. identify any clearances that may be required, including those that may be required during test and trials;

b. identify applicable state, federal and territory laws;

c. determine environmental issues (including heritage) applicable to the Services; and

d. identify relevant Commonwealth Premises environmental management plans/systems that may be in place.

The drafter should determine if an ENVMP is required as a stand-alone plan and in this instance, select Option A from clause 12.2.2. Alternatively, the drafter may determine that environmental management can be ‘rolled up’ into the SSMP, depending on its likely size and complexity, and in this case Option B should be selected. If the Contractor has an existing ENVMS with suitable scope, either the ENVMP or SSMP would largely refer to the ENVMS for the required detail.

The Commonwealth Government requires all departments and agencies to develop and implement an Environmental Management System (ENVMS), which is compliant with the ISO 14001 requirements. If possible, Defence expects contractors to either have ISO 14001 certification, when working on Commonwealth Premises, or be able to otherwise demonstrate their commitment and application of environmental management throughout their organisation, including how this is applied to subcontractors.

Drafters should note that some tenderers may be pre-qualified, being already assessed for compliance with Defence environmental requirements and the suitability of their ENVMS. If this is likely and the tenderer becomes the Contractor, then the SSMP referring to the Contractor’s established ENVMP and ENVMS may be a suitable alternative to a separate ENVMP. In this instance, drafters may retain both options A and B in the draft SOW and replace the ‘note to drafters’ with a ‘note to tenderers’ included in the optional clauses below.

The Contractor is required to have an ENVMS, which can be either Certified to AS/NZS ISO 14001:2004 or not Certified. If the ENVMS is to be Certified or it is otherwise known that all tenderers will have a Certified ENVMS, the optional clauses for a Certified ENVMS should be included. Fields in subsequent clauses must be edited consistent with the requirements for a Certified EVMS, or otherwise. If an ENVMS compliant with ISO 14001 is not essential, then the optional clauses are not required and may be deleted. An acceptable alternative to a Certified ENVMS is proof by the tenderer of its 'quality environmental process' currently in place to achieve a compliant ENVMS – which would be subsequently covered by the ENVMP or SSMP under Contract.

Reporting on environmental management issues included within the CSR (defined in DID-SSM-CSR as part of the Health Safety and Environment Report). Where environmental issues are especially significant, drafters should consider the need for a stand-alone report.

Drafters should also determine whether the Contractor is required to participate in meetings/reviews conducted by the Commonwealth Representative or regional authority. Details of these meetings (location and frequency) are to be inserted into the applicable clause under 12.2.2.

The Contractor is required to propose changes to the Contract via the CCP process if it becomes aware that changes to the Contract are, or will be, necessary to enable compliance with environmental legislation.

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There may also be a need for the Commonwealth to conduct surveillance and audits for Environmental purposes; these are addressed in clause 11.5 of the COC and drafters should make themselves familiar with this clause. Suitable clauses are included in the draft SOW if the Contractor is required to participate in these activities. Note that CASG support agency staff who will carry out audit and surveillance activities must be suitably qualified. Suitable qualifications should be determined by the CASG support agency in consultation with DES.

If the Contract work will be performed within a Government Furnished Facility (GFF), drafters should check the environmental requirements applicable to the use of the GFF. Standard requirements are contained in the GFF Licence for use at Annex D to Attachment I. Tenderers must be made aware of these requirements which must be flowed down to the Contractor. Drafters should determine whether additional environmental requirements should be added to the GFF Licence.

Related Clauses:

COC clause 11.5, Environmental Obligations.

TDR G-4 of the COT, Environmental Management Statement.

Draft SOW clause 12.1, Problematic Substances and Problematic Sources

Draft SOW clause 12.4, Incident Reporting and Remediation.

Optional Clauses:

Note to drafters: For when the need for a stand-alone ENVMP or environmental management within the SSMP will be determined in response to tenders:

Note to tenderers: The requirement for a stand-alone ENVMP or environmental management included in the SSMP will be determined in response to tenders. Where an existing ENVMS is suitable and accessible to the Commonwealth Representative, the preference will be to refer to that system from the SSMP.

Note to drafters: For use when no work under the Contract will be performed on Commonwealth Premises but Contract work has significant environmental issues, replace the subclauses under clause 12.2.2 with:

The Contractor shall inform the Commonwealth Representative as soon as practicable after becoming aware of required changes to the Contract to enable compliance with changes to environmental legislation and clause 11.5 of the COC.

12.3 Work Health and Safety

Sponsor: WHS Procurement Advisory Cell and Defence Work Health and Safety Branch

Status: Core

Purpose: To obtain a description of how the Contractor proposes to meet and manage Defence Work Health and Safety (WHS) requirements to enable the Commonwealth to discharge its duties under WHS Legislation.

Policy: Relevant policy documents are:

Australian Code for the Transport of Dangerous Goods by Road and Rail, Seventh Revised Edition (National Transport Commission, 2011) (ADG7)

Australian Radiation Protection and Nuclear Safety Act 1998 (Cth)

Australian Radiation Protection and Nuclear Safety Regulations 1999 (Cth)

ARPANSA Radiation Protection Series: http://www.arpansa.gov.au/Publications/codes/index.cfm

Defence WHS Manual and CASsafe

Defence Work Health and Safety website: http://intranet.defence.gov.au/whs/

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http://www.arpansa.gov.au/Publications/codes/index.cfm

http://intranet.defence.gov.au/whs/


DEFLOGMAN, Part 2, Volume 3, Ozone Depleting Substances and Synthetic Greenhouse Gases Manual

Defence Procurement Policy Manual, Section 3, Chapter 3.17, Work Health and Safety in Procurement

Environment Protection and Biodiversity Conservation Act 1999 (Cth)

Globally Harmonized System of Classification and Labelling of Chemicals (GHS), Third Revised Edition (United Nations, 2009)


Safe Work Australia website: http://safeworkaustralia.gov.au

Work Health and Safety Act 2011 (Cth), from: http://www.comlaw.gov.au

Work Health and Safety Regulations 2011 (Cth), from: http://www.comlaw.gov.au

Codes of Practice approved under section 274 of the Work Health and Safety Act 2011 (Cth), from: http://www.safeworkaustralia.gov.au/Legislation/model-COP/Pages/Model-COP.aspx; and http://www.comlaw.gov.au/Details/F2011L02804/Download

Guidance: Under WHS Legislation, the Commonwealth bears a primary duty of care to ensure, so far as is reasonably practicable, the health and safety of:

a. workers engaged, or caused to be engaged by the Commonwealth; and

b. workers whose activities in carrying out work are influenced or directed by the Commonwealth.

In addition, the legislation requires the Commonwealth to ensure, so far as is reasonably practicable, that the health and safety of other persons is not put at risk from work carried out as part of the conduct of a business or undertaking of the Commonwealth. The CASG is responsible for discharging the Commonwealth’s WHS duties in the context of the acquisition and sustainment of defence materiel.

The ASDEFCON (Support) templates contain clauses in both the COC and the SOW to assist CASG SPOs to ensure that work under the Contract is safely performed in accordance with the WHS Legislation. This includes clause 12.3, which is a core clause that operates to ensure the safe performance of the Contract work. Clause 12.3 must be read together with clause 11.4 of the COC. In short, clause 12.3 is organised into three subclauses covering:

Contractor acknowledgement of safety information and its responsibility for WHS matters relating to any work performed under the Contract on Commonwealth Premises.

Management requirements including planning, a WHS management system (WHSMS), and to coordinate site safety activities.

Requirements governing the work environments of Commonwealth Personnel on Contractor Premises.

Acknowledgement of WHS Advice

Clause 12.3.1 requires the Contractor to acknowledge that hazards within Products Being Supported and any GFE are identified within accompanying Technical Data such as the associated operator and maintenance manuals listed at SOW Annex D and, when provided by the Commonwealth, in Attachment E as GFI or GFD. Hazards within Products Being Supported may, for example, include Problematic Substances embedded within the Products, Problematic Sources, and general hazards such as the risk of electric shock, burns from hot surfaces, noise, etc. In practice, while some hazards may be labelled on the Products Being Supported, more comprehensive warnings and cautions are typically found within operator and

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http://safeworkaustralia.gov.au/

http://www.comlaw.gov.au/

http://www.comlaw.gov.au/

http://www.safeworkaustralia.gov.au/Legislation/model-COP/Pages/Model-COP.aspx

http://www.safeworkaustralia.gov.au/Legislation/model-COP/Pages/Model-COP.aspx

http://www.comlaw.gov.au/Details/F2011L02804/Download


maintenance manuals. This is particularly the case where the hazard could arise during the performance of a task described in a manual.

Clause 12.3.1.3 requires the Contractor to acknowledge that known hazards exist at the Commonwealth Premises where Contract work will be performed. The Commonwealth needs to inform the Contractor, so that the Contractor can provide appropriate information to Contractor and Subcontractor personnel occupying those Commonwealth Premises (including GFF and ships). Known hazards at Commonwealth Premises are to be listed in SOW Annex E, which covers Problematic Substances, Problematic Sources and other known hazards. Drafters should refer to the guidance at the start of Annex E.

WHS requirements also apply to ships in a similar manner to other Commonwealth Premises. When applicable, the drafter should determine if explicit inclusion of ships is required and include the names or class(es) of ships, and the locations where they will be alongside, within Annex E, as appropriate.

Clauses 12.3.1.4 and 12.3.1.5 requires the Contractor to acknowledge that it retains a responsibility for the safety of work performed at Commonwealth Premises, and that if the exact location is unknown the Contractor should perform work as if the hazards are present (given that it has now been informed by the Commonwealth of known safety hazards).

If no work is to be undertaken on Commonwealth Premises drafters may replace clauses 12.3.1.3 to 12.3.1.5 with ‘Not used’.

WHS Requirements for Planning for and Management of WHS Duties

Clause 12.3.2 addresses the requirements for the planning and for management systems for WHS. It also specifies obligations for consultation, cooperation and coordination of activities between parties in order to ensure that the work required to be performed under the Contract is safely performed.

Drafters must identify at clause 12.3.2.1 the Defence policies and procedures which are applicable to Contract work to be performed at Commonwealth Premises and any that are relevant for individual Products (eg, safety manuals specific to a Materiel System). Note that DID-SSM-HSMP requires the Contractor to describe in their HSMP how they intend to implement the “required Defence policies and procedures identified in the SOW”, which will encompass those at clause 12.3.2.1.

Typical references include:

Defence WHS Manual, Volume 2:

Part 3A, Management of Risks – Chemicals and Substances;

Part 3B, Management of Risks – Plant;

Part 4, Work Environment Hazards; and

Part 5, Event Management (for Commonwealth Premises and Commonwealth Personnel on Contractor Premises);

Defence Radiation Safety Manual; and

location and system-specific standing orders and safety procedures.

Health and Safety Management Plan. The Contractor is required to plan for WHS. Depending on the complexity of the circumstances, the Contractor may be required to have either a stand-alone HSMP or address WHS planning within the SSMP; these are included as options within clause 12.3.2.

If all work is to be conducted off-site and there are no major Product-specific risks, then WHS may be addressed in the SSMP. In practice, for example, this may be

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achieved by the Contractor referring to its own HSMP (or equivalent) for its own premises and providing the Commonwealth Representative with a copy of that HSMP or access to that plan on its WHSMS.

A stand-alone HSMP is required where:

any work under the Contract (other than office / administrative work) is carried out at Commonwealth Premises on an on-going basis;

the work under the Contract includes high risk construction work as defined in the Work Health and Safety Regulations 2011 (Cth);

the Contractor has been engaged as the principal contractor for a construction project under clause 11.4.13 of the COC;

provision of the Services will require the use, storage or handling of Schedule 15 Chemicals in quantities that exceed or may exceed the applicable threshold(s);

there will be high risk activities or significant health and safety risks associated that are specific to the Products Being Supported; or

the Contract requires Commonwealth Personnel to work at Contractor-controlled workplaces.

DPPI NO 4/2012 Engagement of Principal Contractors under the Work Health and Safety Legislation provides guidance on the appointment of principal contractors for construction projects.

Typical examples where a stand-alone HSMP is required due to work on the Products include where a contractor is working on-board a ship, or is engaged in hazardous work on an aircraft such as fuel tank de-seal/reseal tasks.

The drafter is to determine the type of plan, either stand-alone or rolled-up into the SSMP, and select the clause under Option A or B accordingly. The drafter should then amend the clauses that follow, inserting the name of the selected plan.

WHS Management System. The WHSMS is a system for managing the Contractor’s information related to its WHS duties. Typically, the system will include the information identified under SOW clause 12.3.2.6 of the template. Additional information may include:

a. details of individuals and groups, within the organisation, who hold WHS-related responsibilities;

b. procedures for incident reports and notifications to and from the WHS regulators;

c. WHS statistics (which may be reported via the CSR); and

d. copies of incident reports and notifications to and from the WHS regulators.

The full scope of a WHSMS is described in AS/NZS 4801:2001 and drafters may refer to this standard if intending to expand the list under clause 12.3.2.6.

There are essentially two options for a WHSMS within the SOW. The first is simply for the Contractor to have a WHSMS. The second (shown as an option) is to have the WHSMS certified to AS/NZS 4801:2001 standards by a third party Certification agency. The optional clauses 12.3.2.7 and 12.3.2.8 are included where the Commonwealth requires the Contractor to establish and maintain a certified WHSMS. Typically, the Commonwealth would have an interest in ensuring that the

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Contractor’s WHSMS is certified where Contract work will involve high risk activities or for Commonwealth Personnel to work on the Contractor’s premises.

Although a WHSMS appears as a separate requirement within the SOW, it may be combined with an ENVMS as part of a Contractor “HSE management system”, as the structural requirements of both systems are similar. Such as system may also be integrated into the Contractor’s QMS.

WHS of Contractor and Subcontractor Personnel on Commonwealth Premises

Clause 12.3.3 applies to Contractor’s and Approved Subcontractors working on Commonwealth Premises. This clause applies to if the Contractor and/or Subcontractors are located on Commonwealth Premises on an on-going basis; for example, it is not required for the Contractor/Subcontractor to provide pick-up and delivery of items as a Supply Support Service. Note that Subcontractors working on Commonwealth Premises need to be Approved Subcontractors in order to flow down Contract WHS provisions, such as these. This clause may be deleted if no work under the Contract will be performed on Commonwealth Premises.

Clause 12.3.3.1 requires the Contractor to ensure that all Subcontractors undertaking work on Commonwealth Premises follow the requirements in the Contractor’s WHSMS. In practice, the Commonwealth expects that Subcontractors would align their systems with the Contractor’s WHSMS or use the Contractor’s WHSMS established for the site.

Clauses 12.3.3.2 to 12.3.3.5 address specific requirements related to the performance of work on Commonwealth Premises. These are to be reviewed and tailored as appropriate for the Contract, or may be deleted if no work will be performed on Commonwealth Premises.

Before commencing work at Commonwealth Premises, Contractor and approved Subcontractor Personnel are required to participate in safety-related induction training and/or a site safety induction briefing (clause 12.3.3.2) provided by Defence. Where the Contractor has control of a specific area of Commonwealth Premises (ie, GFF) the Commonwealth expects the Contractor to conduct its own induction training in relation to that workplace.

The last three clauses, 12.3.3.3 to 12.3.3.5, set out key obligations that relate to consultation, cooperation and coordination of activities between Contractor, Subcontractor and Commonwealth Personnel. For reference, the Work Health and Safety Consultation, Co-operation and Co-ordination Code of Practice provides guidance to duty holders who share responsibility for the same WHS matters.

Clause 12.3.3.3 imposes a general obligation on the Contractor Representative to ensure that Contractor and Subcontractor Personnel consult, co-operate and co-ordinate with Commonwealth Personnel and other workers to ensure that work under the Contract is performed safely. Importantly, clause 12.3.3.3 imposes a mandatory obligation on the Contractor’s representatives to consult, co-operate and coordinate with the Commonwealth Representative. The Commonwealth Representative must make themselves available and participate in the practical steps that are initiated by the Contractor Representative in fulfilment of this obligation (as consultation, co-operation and co-ordination in relation to WHS issues is inherently collaborative). Clause 12.3.3.3 does not prevent the Commonwealth Representative from initiating the process of consultation, co-operation and co-ordination with the Contractor Representative and, when the initiative is taken by the Commonwealth Representative clause 12.3.3.3 requires the Contractor Representative to respond and participate.

Clause 12.3.3.4 relates to participation in Defence’s WHS site management programs, including WHS meetings and the work necessary to address action items. Drafters must insert the applicable Commonwealth Premises, meeting locations and timeframes where indicated. If the Contract spans multiple sites clause 12.3.3.4 may be repeated with details for each of the applicable Commonwealth Premises.

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Clause 12.3.3.5 addresses the discovery of unforeseen hazards at applicable Commonwealth Premises, and the actions to be followed. When necessary, this may require update of SOW Annex E, via a CCP, to document the hazard.

WHS of Commonwealth Personnel on Contractor or Approved Subcontractor Premises

Clause 12.3.4 includes requirements relating to the WHS of Commonwealth Personnel located on Contractor and/or Approved Subcontractor premises (ie, RP and MRU). If there will be no RP or MRU (refer to clause 3.16) then clauses under the heading can be replaced with a single “Not used”.

Clause 12.3.4 covers four WHS-related issues for RP and MRU:

obligations to ensure a healthy and safe physical work environment;

pre-work inspections;

safety awareness training and procedures; and

monitoring of WHS issues related to the work environment.

In order to enable the Commonwealth to comply with WHS Legislation the Commonwealth must ensure that the facilities for Commonwealth Personnel, which the Contractor provides, are, so far as is reasonable practicable, without risk to health and safety. This is addressed in two ways, firstly in sub-clause a, the work environment is to be in accordance with the code of practice approved under section 274 of the WHS Act, Managing the Work Environment and Facilities. Secondly, for contractors outside the jurisdiction of the WHS Act (ie, typically overseas where RP, MRU or any other Commonwealth Personnel may be located), the Contractor is to provide every assistance to allow the Commonwealth to comply with its obligations (as these extend to Commonwealth Personnel overseas).

Drafters tailoring clause 12.3.3 need to ensure that the scope of the clause remains consistent with clause 3.16, Attachment L and for RP, and Attachment O for MRU.

Further information: Refer to CASsafe elements 10 and 11.

Related Clauses:


COC clause 3.8, Attachment O for Members Required in Uniform

Attachment L for Resident Personnel

Draft SOW clause 3.16, Commonwealth Personnel at Contractor or Approved Subcontractor Premises

Draft SOW clause 3.6, Coordination and Cooperation


Draft SOW clause 12.2, Environmental Management

Draft SOW clause 12.4, Incident Reporting and Remediation

DID-SSM-HSMP defines requirements for a Health and Safety Management Plan.

DID-SSM-SSMP includes requirements for WHS management when planning is rolled-up into the SSMP.

TDR G-5 of the COT, Health and Safety Management Statement


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12.4 Incident Reporting and Remediation

Sponsor: WHS Procurement Advisory Cell

Status: Core

Purpose: To identify the requirements for WHS and Environment incident reporting and the notification of remediation efforts under the Contract.

Policy: Environment Protection and Biodiversity Conservation Act 1999 (Cth)


Work Health and Safety Act 2011 (Cth)

Work Health and Safety Regulations 2011 (Cth)

Defence WHS Manual Volume 2, Part 5, Chapter 1

Guidance: This clause creates obligations to implement the incident notification regime in Part 3 of the Work Health and Safety Act 2011 (Cth). The clause also includes reporting of Environmental Incidents with respect to the Environment Protection and Biodiversity Conservation Act 1999 (Cth).

Notifiable Incidents (WHS)

Under section 38 of the Work Health and Safety Act 2011 (Cth), in all Australian jurisdictions which have enacted the harmonised WHS Legislation, a person who conducts a business or undertaking must notify the regulator immediately after becoming aware of a notifiable incident arising out of the conduct of their business or undertaking. In practice, where a notifiable incident occurs in a workplace controlled by the Contractor for the purposes of the performing the Contract, the Commonwealth expects the Contractor to report those incidents in accordance with section 38 and, when apprioriate, inform the Commonwealth. Clause 12.4 seeks to create a mechanism to ensure that this occurs.

Generally, the regulator is the state or territory WHS regulatory authority that has jurisdiction over the workplace in which the notifiable incident occurred, although some companies (and Commonealth-owned entities) have Comcare as their regulator. In the Commonwealth jurisdiction, the regulator is Comcare.

The Glossary defines Notifiable Incident by reference to sections 35 to 37 of the Work Health and Safety Act 2011 (Cth). Section 35 states that a notifiable incident means the death of a person, a serious injury or illness of a person, or a dangerous incident. Section 36 defines, “serious injury or illness” and section 37 defines “dangerous incident”. In Defence WHS Manual Volume 2, Part 5, Chapter 1, WHS Event Notification and Reporting, these are referred to as notifiable events.

Clause 12.4 is structured around the incident reporting and notification obligations within Part 3 of the Work Health and Safety Act 2011 (Cth) and the Defence WHS Manual Volume 2, Part 5, Chapter 1.

Clause 12.4.1 requires the Contractor to immediately report to the Commonwealth Representative those Notifiable Incidents that occur in relation to the Contract that involve Commonwealth Personnel, occur on Commonwealth Premises, or that arise out of the use of GFM or when following a “Commonwealth specified system of work” (eg, a procedure within GFI or GFD where the procedure was a factor in the Notifiable Incident).

While a Notifiable Incident may be reported verbally in the first instance, clause 12.4.2 requires a written report be provided, using the Sentinel Event Kiosk (on the DRN) where possible. SPOs receiving a Notifiable Incident reported under clauses 12.4.1 and 12.4.2 must report these to Comcare in accordance with the Defence WHS Manual.

Notifiable Incidents must also be immediately (within 48 hours) reported by the Contractor to their Commonwealth, State or Territory regulator by telephone or in writing (including electronically). This includes Notifiable Incidents covered by

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clause 12.4.1 and any other Notifiable Incidents not include by clauses 12.4.1a. to 12.4.1c. (although not reported immediately, these are summarised in the WHS sub-report of the CSR).

Clause 12.4.3 ensures that the Commonwealth Representative is given copies of any notice(s) or other documentation given by the Contractor to their regulator or from the regulator the Contractor in respect of the Notifiable Incident, including copies of notices from any inspector appointed by the regulator to investigate a Notifiable Incident.

Following a Notifiable Incident, the Contractor is to investigate the circumstances of the event and take all reasonable steps (eg, by instituting appropriate procedures) to ensure that an event or circumstance of the kind that led to the Notifiable Incident does not recur. Subclause 12.4.3d. requires the Contractor to present initial findings to the Commonwealth withing 10 Working Days of the notification.

Clause 12.4.4 places reciprocal obligations on the Commonwealth to assist the Contractor to report and investigate Notifiable Incidents in accordance with the WHS Legislation.

Clauses 12.4.1 to 12.4.4 are core for all Contracts and should be included in the draft Contract without change.

Environmental Incidents

When Environmental Management is included in the SOW at clause 12.2, then Environmental Incidents are also required to be reported to the Commonwealth Representative. Environmental Incidents are defined in the Glossary to mean any Environmental Harm or Contamination caused by or in relation to the Contractor’s activities. Unlike (WHS) Notifiable Incidents, timeframes are not prescribed (by the Environment Protection and Biodiversity Conservation Act 1999 (Cth)) for reporting requirements. Drafters should also note COC clause 11.5 requirements for the Contractor to inform the Commonwealth Representative if the Contractor fails to retain applicable licences and permits.

The Ozone Protection and Synthetic Greenhouse Gas Management Act 1989 (Cth) and Defence policy also require Defence to account for stocks of ODSs and SGGs that it owns. Discharge of Defence stocks of these substances, by any party, must be reported to the Defence manager. Clause 12.4.6 covers those occasions when the Contractor discharges or suspects discharge of an ODS or SGG (eg, the unintended leak from an air-conditioner or discharge of a turbine engine fire extinguisher retardant). This is primarily intended for non-licensed contractors maintaining related equipment as licensed contractors are aware of their legal obligations and this reporting requirement.

If SOW clause 12.2, Environmental Management, is not included in the draft Contract then optional clause 12.4.5 should be removed. If ODS and SGG are not applicable to the Contract, then optional clause 12.4.6 may be removed.

Related Clauses/Documents:

COC clause 6.12, Remediation of Performance Problems


COC clause 11.5, Environmental Obligations


Draft SOW clause 12.2, Environmental Management

Draft SOW clause 12.3, Work Health and Safety

Attachment Q, for Other Performance Measures that may be specified in relation to WHS or environmental management performance.

DID-SSM-CSR, defines Heatlh Safety and Environment sub-report for the CSR.

Optional Clauses: None

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13. CONTINUOUS IMPROVEMENT AND EFFICIENCIES


Status: Core

Purpose: To impose a contractual obligation on the Contractor to identify, analyse and implement Efficiencies and to share the resulting savings with Defence. This is undertaken in the interests of reducing the Total Cost of Ownership (TCO) to Defence while ensuring that the required Outcomes are still achieved.

Policy: The Continuous Improvement and Efficiencies (CIE) program is undertaken as a CASG initiative for implementing the Defence Strategic Reform Program.

Guidance: The CIE Program is an important part of Defence’s long-term strategy to reduce the TCO of Materiel Systems (ie, the component of Life Cycle Cost (LCC) for the remaining life of the system, including its disposal) in order to enable savings to be reinvested in future Capabilities. Clause 13 and COC clause 3.17 define the default method for managing the CIE Program and sharing cost savings under an ASDEFCON (Support) PPBC.

Efficiencies may be found by improving Contractor and Commonwealth processes, including by the simplification of tasks, transfer of tasks to the party who can perform them most efficiently, enhancement of the Products Being Supported, improvements in process flows between parties, or other changes. The savings are made by reducing Commonwealth costs, either by reducing the payments made under the Contract or, by shifting responsibilities to the Contractor where the increase in Contract payments is more than offset by a reduction in other Commonwealth costs. Contractor rewards for Efficiencies, particularly where payments are reduced, are Contract extensions, such as Award Terms or Renewal Terms offered under COC clause 1.8. Although linked to Contract extensions, the price adjustment for an Efficiency may occur either at the start of a Contract extension or at another time – typically this would be negotiated depending upon the amount of any investment to implement each Efficiency (so that the Contractor can recoup any investment cost).

Related Clauses: COC clause 1.8, Term.

COC clause 3.17, Continuous Improvement and Efficiencies.

Draft SOW clause 11, Quality Management (quality processes).

DSD-ENG-SERV for the evaluation of proposed Materiel System changes on LCC.

DID-SSM-EAIR, which specifies requirements for an Efficiencies Analysis and Implementation Report.

DID-SSM-EIP, which specifies requirements for an Efficiencies Implementation Plan (EIP).

DID-SSM-CSR, which includes a CIE report.


13.1 Acknowledgement


Status: Core

Purpose: To require that the Contractor acknowledge the intent of the CIE Program and the associated evaluations and actions that will be taken by the Commonwealth.

Policy: Nil

Guidance: The CIE Program seeks to reduce TCO through the implementation of Efficiencies. To be effective, it is important for the Contractor to acknowledge its obligations under the CIE Program and the Commonwealth’s role.

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If extensions to the Contract, which consider the success of the CIE Program, will not be offered under COC clause 1.8 then drafters should tailor clause 13.1.2 in accordance with the note to drafters.

Related Clauses: Other clauses under clause 13 of the draft SOW.

COC clause 1.8, Term.


Draft SOW clause 3.4.5, Performance Assessment Reviews.

DID-SSM-CSR, which includes a CIE report.


13.2 Management of the Continuous Improvement and Efficiency Program


Status: Core

Purpose: To impose an obligation on the Contractor to plan, manage and implement the CIE program.

Policy: Nil

Guidance: The CIE Program requires the Contactor to continuously seek new Efficiencies and to manage the implementation of Approved Efficiencies.

Clause 13.2.1 requires the Contractor to implement a CIE Program, subject to the identified objectives.

Clauses 13.2.2 and 13.2.3 require the Contractor to prepare an Efficiencies Implementation Plan (EIP) for Approval and then apply the plan to the management of the CIE Program. The EIP includes management of the CIE Program, as a whole, and each Approved Efficiency via its own, separate implementation plan annexed to the EIP. Efficiencies are added to the EIP once recommendations from an Efficiencies Analysis and Implementation Report (EAIR) are Approved under clause 13.3. Accordingly, the CDRL entry for the EIP requires an update for each new Approved Efficiency.

Progress made for each Efficiency, against its implementation plan, is reported within the CIE Report, a sub-report of the CSR. In the CDRL, delivery of the CIE Report may be scheduled separately from to rest of the CSR to ensure that it is available at each PAR held in accordance with SOW clause 3.4.5.

Clauses under the heading clause 13.2 should be reviewed but, in most cases, can be retained without change.

Related Clauses: All other clauses under clause 13 of the draft SOW.



Draft SOW clause Error! Reference source not found., Quality Management (quality processes).

DID-SSM-CSR, which includes requirements for the CIE Report.

DID-SSM-EAIR, which specifies the requirements for an EAIR.

DID-SSM-EIP, which specifies the requirements for an EIP.


13.3 Identifying, Analysing and Implementing Efficiencies


Status: Core

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Purpose: To require the Contractor to identify and analyse new Efficiencies, to report Efficiencies, and to implement those Efficiencies that are Approved.

Policy: Nil

Guidance: This clause describes the process for identifying, analysing, reporting and Approving, and implementing each Efficiency. Accordingly, clause 13.3 is a core clause. An overview of the clause is shown in Figure 4.

Figure 4: Overview of the Efficiencies analysis process

Clauses 13.3.1 to 13.3.3 require the Contractor to continuously seek new Efficiencies, perform an initial assessment of their cost, benefit and risk, and then

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advise the Commonwealth of these potential Efficiencies. The Contractor is also obliged to engage Approved Subcontractors in the search for Efficiencies.

Clause 13.3.4 describes the process whereby the Commonwealth reviews the initial analysis and determines whether or not to have the Contractor conduct a formal analysis. Because potential Efficiencies vary in nature, the period for analysing and reporting back to the Commonwealth can also vary. Clause 13.3.4 allows the period for the analysis to be agreed on a case by case basis, rather than rigidly following the standard delivery schedule in the CDRL. As a result of clause 13.3.4, based on the initial assessment, the potential Efficiency is rejected or a decision is made to investigate further and the Contractor reports its findings in an Efficiencies Analysis and Implementation Report (EAIR).

Clause 13.3.5 allows Efficiencies that were previously from the initial assessment to be investgated and an EAIR prepare.

Clause 13.3.6 refers to the funding for the analysis and development of EAIRs, which may be revised to suit individual Contract needs.

Clause 13.3.7 describes the possible outcomes of the Commonwealth’s assessment of the EAIR. Note that Approval of the EAIR (as a data item) is not the same as the Approval of an Efficiency. Accordingly, the Commonwealth may not Approve an EAIR because it does not contain sufficient information in order to decide whether to Approve or not Approve the Efficiency. Alternatively, the EAIR may be Approved (as a data item) and the potential may also be Approved (now an Approved Efficiency). Finally, it may become clear that the potential Efficiency is not worth pursuing, irrespective of whether the EAIR is Approved or not (eg, because it was not completed), and the Efficiency is therefore rejected.

The viability of a potential Efficiency should be considered based on a number of factors, including:

the investment the Contractor needs to make to implement the Efficiency and the return on investment (ie, savings) generated;

the time period necessary to enable the Contractor to ‘break even’ (ie, in simplistic terms, how long it takes for savings to equal the initial investment);

the time over which the Contractor will benefit from the Efficiency, considering the remaining Contract Term;

the time period over which the Commonwealth will benefit from the Efficiency (eg, from when savings begin to be shared until the PWD);

any contribution by the Commonwealth required to implement the Efficiency; and

any non-financial benefits.

Clauses 13.3.8 to 13.3.9 describe the actions to be followed by the Commonwealth and Contractor once an Efficiency is Approved. The requirements include updating the EIP and preparing a CCP in order to incorporate an Approved Efficiency into the Contract. The EIP is updated to include an implementation plan for the Approved Efficiency as an annex (see DID-SSM-EIP). The payments to be made to the Contractor are likely to change as the result of an Efficiency, hence a CCP is required to amend the Attachment B, the Price and Payment Schedule, and any other parts of the Contract effected. Note that payments would reduce in many cases, but may also increase if the Contractor is taking on more work at a lower cost than wherever that work was previously performed (ie, external to the Contract). Accordingly, the CCP may, in some case, change the scope of work described in the SOW. The CCP may also identify an initial financial contribution by the Commonwealth, to implement the changes, if applicable. As savings are

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linked to granting Contract extensions, the CCP may indicate that the change in payments will start with the Contact extension. However, this is not always the case and the change may occur before or after such an event, depending on the costs involved in implementing the Efficiency and the savings that it generates.

Clause 13.3.13 requires that the Contractor not commence the implementation of the Efficiency until the CCP and plans are in place while clause 13.3.14 asserts that implementation occur in accordance with the EIP and CCP.


COC clause 1.8, Term.

COC clause 10.1, Change to the Contract.


Attachment B, Price and Payments.

Draft SOW clause Error! Reference source not found., Quality Management (quality processes).

DSD-ENG-SERV for the evaluation of proposed Materiel System changes on LCC.

DID-SSM-CSR, which includes a CIE Report.

DID-SSM-EAIR, which specifies the requirements for an EAIR.

DID-SSM-EIP, which specifies the requirements for an EIP.


13.4 Cost Modelling


Status: Core

Purpose: To provide a quantitative basis from which to:

a. assist in the Commonwealth’s objective to minimise TCO, while providing the required level of capability; and

b. evaluate the impact on TCO of Efficiencies and the value for money of other changes to the Materiel System proposed by either the Commonwealth or the Contractor.

Policy: DEFLOGMAN Part 2, Volume 10, Chapter 16, Defence policy on Life Cycle Costing Analysis

Guidance: Cost modelling supports a number of important functions for the management of a Materiel System, including the ability to undertake a quantitative analysis of the TCO and to evaluate potential Efficiencies. As potential Efficiencies are to be proposed and analysed by the Contractor, the Contractor will need to undertake cost modelling and, as a result, clause 13.4 is a core clause.

The TCO model is important for documenting and maintaining the baseline data for TCO. This baseline can be used to identify cost drivers, as a source of identifying potential Efficiencies, and also as the basis from which identified Efficiencies can be fully evaluated, considering both implementation costs and savings.

Analysis of life-cycle costs also provides an estimate of the TCO and enables the CASG to undertake long-term budgeting for the support of a Materiel System. LCC Analysis (LCCA) is used to assess the impact on the TCO caused by changes to the Mission System and/or the Support System. For example; when parts become obsolete and no longer supported by the OEM, the Commonwealth may need to compare options for establishing a new maintenance capability, to repair the obsolete items, or to modify the system to use newer substitute items.

Areas where LCCA would be undertaken in support of the Services include:

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a. the analysis of change requests and ECPs, including SWCPs (in DSD-ENG-SERV);

b. Supportability and Engineering Analyses (in DSD-ENG-SERV);

c. assessment of whether or not an RI should be classified as Beyond Economic Repair (in DSD-MNT-MGT);

d. obsolescence management (in DSD-SUP-SERV);

e. Support System Supportability Analyses (in DSD-SUP-SERV); and

f. Stock Assessment (in DSD-SUP-SACC).

Maintaining the baseline TCO enables the CASG and Defence to track LCC as a whole, which may be used to inform decisions to replace an existing Capability or extend its life.

Clause 13.4.1 identifies that the plan for conducting the modelling of TCO is included within the Approved EIP, which is required under clause 13.2.

Clause 13.4.2 defines the scope of the TCO model. The drafter needs to insert the name of the applicable LCCA tool / TCO model and the need to ‘develop and maintain’ a new model (using the LCCA tool), or just ‘maintain’ an existing model, as indicated by the note to drafters. In some cases, it may be preferable to define a version number for the LCCA tool; however, this could lead to contract changes for subsequent versions. It would be preferable to have the Approved EIP identify the current version of the LCC tool. A note to tenderers may be added to identify the current version of the tool for the purposes of tendering.

The scope of the TCO model described in clause 13.4.2 should also be reviewed. For example, details of ADF activities may be limited to support and not include operations. To be effective, a TCO model will require Commonwealth cost data. If the Commonwealth cannot provide all applicable cost data, then clause 13.4.2 may need to be tailored to reflect the plausible scope of the TCO model data.

Clause 13.4.2 should also consider a number of related issues. For example, if the TCO model has been built, will this require the Commonwealth to provide software and documentation, as GFM, and training in the use of the LCCA tool as a ‘Defence information system’ (under SOW clause 3.17)? If the model is to be developed, to what extent does the Commonwealth need to define requirements for the model, and will new data items be required? Drafters may refer to TDID-FIN-TLCCM and DID-PM-LCC-LCCRM, from ASDEFCON (Strategic Materiel), to provide some ideas for developing DIDs, but as there is a considerable difference between an LCC model used during acquisition and maintaining a TCO model in-service, hence these DIDs are not suitable in their current form. Drafters must also insert delivery details into the CDRL for a data item; however, many deliveries from the TCO model are already specified through the EAIR and other analyses.

Clause 13.4.3 confirms the commercial nature of the cost data provided by the Commonwealth, which the model uses. Contractor cost data that is commercially sensitive should be identified within Attachment N, Confidential Information.

Clause 13.4.4 outlines the cost modelling activities to be undertaken by the Contractor. In effect this also describes the purpose for the TCO model.

Clause 13.4.5 applies when the Contractor develops the TCO model or modifies the Commonwealth-provided one. This requires the Contractor to provide all resources necessary for the Commonwealth to review the TCO model and Verify the results provided and recommendations made by the Contractor using the TCO model.

Clause 13.4.6 requires the Contractor to provide all reasonable assistance to the Commonwealth to review, verify, and if necessary use the TCO model held by the

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Contractor. This allows the Commonwealth to review recommendations and also to perform some ‘what if’ analysis, if necessary.

Clause 13.4.7 requires the Contractor to use the TCO model as a basis for supporting the recommendations of EAIRs and other activities at the PAR, held in accordance with clause 3.4.5.

The template clauses have been drafted so that cost modelling is conducted as a Recurring Service. Maintaining an up to date TCO model can require on-going work and, as a Recurring Service, this also facilitates the continuous search for Efficiencies. As a Recurring Service, this is unlikely to include the analysis of ECPs and SWCPs, which are usually S&Q Services (in accordance with DSD-ENG-SERV, DSD-ENG-SW and DSD-ENG-CM). Hence, the on-going cost modelling under clause 13.4 may be met by the Recurring Services Fee while the analysis related to system changes, other than for the purpose of Efficiencies, may be costed as S&Q Services, even when the same TCO model is used.

Drafters should review and, as necessary, further develop clauses 13.4.2 and 13.4.4. This may require additional clauses and DIDs, if appropriate to the intended TCO Model Scope and use.

Drafters are to ensure that the Supportability and Engineering Analysis and Support System Supportability Analysis clauses in DSD-ENG-SERV and DSD-SUP-SERV, respectively, are consistent with this clause.


COC clause 10.4, Confidential Information.

Attachment E, for LCCA software, TCO models and related information provided as GFM.

Attachment N, Commercial Information.


Draft SOW clause 3.17, Training in Defence Information Systems, if applicable.

DSD-ENG-SERV, Supportability and Engineering Analyses clause.

DSD-SUP-SERV. Support System Supportability Analysis clause.

DSD-SUP-SACC, which defines the requirement for Stock Assessment, an inter-related cost-modelling activity.


13.5 TCO IV&V Agent


Status: Optional

Purpose: To define the role of the TCO IV&V Agent and the Contractor’s obligations to support the TCO IV&V Agent’s cost investigation activities.

Policy: Nil

Guidance: The TCO IV&V agent is appointed by the Commonwealth to audit and confirm the integrity of the TCO model, its data, and its use to identify and evaluate Efficiencies. The TCO IV&V Agent is independent of the Contractor and may be a Commonwealth person (eg, Financial Investigation Services) or a third-party engaged by the Commonwealth. Cost investigation can be a detailed process and, therefore, the program needs to be of sufficient scale and complexity that the improvement in TCO analysis and finding of further Efficiencies will justify the engagement of the TCO IV&V Agent. Accordingly, this is an optional clause.

Clause 13.5.1 identifies the Commonwealth’s right to appoint a TCO IV&V Agent, and the purpose of having the TCO IV&V Agent.

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Clause 13.5.2 requires the Contractor to provide the TCO IV&V Agent with access to the TCO cost data, models and other resources, in order to facilitate their activities. This clause simply provides specific details to the existing Commonwealth access rights under COC clause 10.7, which applies to “the Commonwealth Representative and any person authorised by the Commonwealth Representative”.

For clarity, clause 13.5.3 confirms that such information accessed by the TCO IV&V Agent shall be treated as Confiden tial Information. Where the TCO IV&V Agent is not a member of the Commonwealth, this would require a non-disclosure agreement between the Commonwealth Representative and that party to be implemented.

Drafters need to determine if a TCO IV&V Agent will be required. If not required the clauses under the heading can be replaced with a single “Not used”. If required, the clauses should be reviewed for consistency with the scope of the CIE Program. Note that if the clause is not included, this does not diminish the Commonwealth’s rights under COC clause 10.7.


COC clause 10.4, Confidential Information.

COC clause 10.7, Commonwealth Access and Records.

Attachment N, Confidential Information.


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SOW TAILORING GUIDE – ANNEX A

SUPPORT CONCEPTS AND CONTRACT REQUIREMENTS

Support Services Requirement

Support Scenario #1 Support Scenario #2 Support Scenario #3 Support Scenario #4

Mission System Responsibilities

Contractor has total responsibility for supporting the Mission System.

Mission System may be handed over to a Defence operator to use (eg, flight simulator), or may be operated by the Contractor for Defence (eg, satellite ground station).

Commonwealth has almost no role in supporting the Mission System.

Contractor has responsibility at the Mission System level, which may include meeting availability targets (systems available to Defence) and / or conducting deeper levels of Maintenance.

Contractor has no Mission System responsibilities.

Commonwealth either has full Mission System responsibility or this responsibility rests with another contractor.

The ‘Mission System’ is a relatively simple item of equipment (not a major platform) and can be treated as a family of Repairable Items.

Contractor has no Mission System responsibilities.

Commonwealth either has full Mission System responsibility or this responsibility rests with another contractor.

Possible Template(s) ASDEFCON (Support) ASDEFCON (Support) ASDEFCON (Support) where greater governance or more in-depth Services are required.

ASDEFCON (Support Short) for more routine contracts, with less governance and a broad but limited depth of Services.

ASDEFCON (Support Short) for lower value contracts with a broad scope of Services.

ASDEFCON (Standing Offer for Goods and Maintenance Services) for contracts that require Maintenance and limited Supply Support Services only.

ASDEFCON (Support) is only considered if there is a need for a high level of governance or a detailed definition of Services.

Key Support System Responsibilities

Contractor manages almost all of the Support System.

Commonwealth manages the Contract and any exclusions from the Contract (eg, cryptographic equipment).

Contractor has responsibility for Stock Items in addition to the Mission System.

Contractor has responsibility for managing Reserve Stockholdings and for Requirements Determination of Stock Items.

Contractor has responsibility for Stock Items only.

Contractor has responsibility for managing Reserve Stockholdings and for Requirements Determination.

Contractor has responsibility for Stock Items only.

Commonwealth has responsibility for managing Reserve Stockholdings and for Requirements Determination

Examples Lead-in Fighter where the Contractor was required to provide a set number of available aircraft for student pilots.

The Commonwealth provides no Maintenance.

JORN.

Contractor operated and supported satellite ground stations.

F-111 Weapon System Business Unit (WSBU) where the Contractor was required to provide deeper Maintenance of the aircraft and a range of other services including total support of the flight simulator.

For the F-111, the Commonwealth provides forward Maintenance.

Patrol Boats, where Navy Maintenance is only ‘at sea’.

F-111 Avionics Business Unit (AVBU) where the Contractor was required to provide a range of services relating to Repairable Items.

Common support contracts for Repairable Items fitted to larger platforms (eg, communication terminals) or individual equipment.

Any number of Standing Offer arrangements where the Commonwealth feeds the RIs into the Contractor on an ‘as required’ basis.

May also include the provision of Non-RIs to the Commonwealth.

Basis of Performance Measurement

Performance measurement for Mission System is based on the availability of the Mission System for Defence use.

Performance measurement for Stock Items may include meeting Reserve Stockholding Levels (RSLs).

Likely to be additional performance measures for Engineering Support (eg, schedule).

Could also be Maintenance Support performance measures, such as for on-equipment Maintenance (eg, response times) or depot Maintenance scheduling effectiveness (as an adjunct to system availability to avoid Maintenance shortcuts).

Performance measurement for Mission System may be through availability of Mission System or through delivery within requisite timeframes (eg, Mission Systems provided within agreed Maintenance schedule).

Different types of Mission System performance measures could apply between differing Mission Systems and between peacetime and wartime.

Performance measurement for Stock Items (both RIs and Non-RIs) is based on demand satisfaction (eg, delivery within the Scheduled Delivery Date (SDD)) and meeting Reserve Stockholding Levels (RSLs).

For Stock Items, demand satisfaction performance measures could include Spares Availability, Average No of Backorders, etc.

Likely to be additional performance measures for

Performance measurement for Stock Items (both RIs and Non-RIs) is based on demand satisfaction (eg, delivery within the Scheduled Delivery Date (SDD)) and meeting RSLs.

For Stock Items, demand satisfaction performance measures could include Spares Availability, Average No of Backorders, etc.

Likely to be additional performance measures for Engineering Support (eg, schedule).

Could also be Maintenance Support performance measures, such as for on-equipment Maintenance (eg, response times).

For RIs, performance measurement is likely to be based around an RI Turn Around Time (TAT), with the Commonwealth feeding the RIs into the Contractor, as required.

TAT is that time under the control of the Contractor; as such, the Contract must be clear on the elements under the control of the Contractor (eg, pick-up point to delivery point). The drafter should be aware of the administrative time which may be taken getting the item to the pick-up point and from the delivery point.

For Non-RIs, performance measurement is likely to be measured by order response times. TATs and order response times would be addressed as part of tender evaluation and subsequent negotiations.

While unlikely, there may be Reserve Stockholding requirements under the Contract, in which case, meeting

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Engineering Support (eg, schedule).

Could also be Maintenance Support performance measures, such as for on-equipment Maintenance (eg, response times).

RSLs would also be a requirement.

Could also be additional performance measures for Engineering Support (eg, schedule).

General If possible, Commonwealth is not part of the process.

May be a requirement for the Commonwealth to be ‘in the process’ where common items are involved.

Generally, Commonwealth not interested how Contractor meets performance measures (except for TRA requirements).

Commonwealth does not perform any Maintenance.

Deployment of asset not required (in peacetime or wartime) or assets and Contractor can deploy to a safe neighbouring region supporting the area of operations.

Surge required (for example) to meet increased operating tempo associated with readiness timeframes (which could include increased training requirements). Surge requirements included in Contract as planning requirements – Contractor’s ability to meet Surge requirements assessed during tender evaluation and subsequent negotiation. Also needs to be assessed on a regular basis (eg, annually). Separate Surge Management Plan (SMP) likely to be required.

If Maintenance (or other support) is conducted on a Defence establishment, then there may be services that the base needs to provide (eg, disposal, cleaning, phones, security, LAN).

Commonwealth conducts forward-levels of Maintenance; hence, Contractor is unable to provide a total support solution (with the Contractor (or a set of Contractors) providing all other Maintenance.)

Assets are deployable in both peacetime and wartime.

Wherever possible, Commonwealth is not part of the process.

May be a requirement for the Commonwealth to be ‘in the process’ where common items are involved.

Surge required (for example) to meet increased operating tempo associated with readiness timeframes. Surge requirements included in Contract as planning requirements – Contractor’s ability to meet Surge requirements assessed during tender evaluation and subsequent negotiation. Also needs to be assessed on a regular basis (eg, annually). Separate Surge Management Plan (SMP) likely to be required.

If Maintenance (or other support) is conducted on a Defence establishment, then there may be services that the base needs to provide (eg, disposal, cleaning, phones, security, LAN).

Commonwealth conducts forward-levels of Maintenance.

Other contractor(s) responsible for deeper levels of Maintenance.

Surge required (for example) to meet increased operational tempo (eg, from 10 items/month to 15 items/month). Surge requirements included in Contract as planning requirements – Contractor’s ability to meet Surge requirements assessed during tender evaluation and subsequent negotiation. Also needs to be assessed on a regular basis (eg, annually). Separate Surge Management Plan (SMP) unlikely to be required.

Surge required (for example) to meet increased operational tempo (eg, from 10 items/month to 15 items/month). Surge requirements included in Contract as planning requirements – Contractor’s ability to meet Surge requirements assessed during tender evaluation and subsequent negotiation. Also needs to be assessed on a regular basis (eg, annually). Separate Surge Management Plan (SMP) not required.

Engineering Support TRA requirements likely to apply.

Which Engineering Services are included in the firm-priced portion of the contract as specific line items for which the Commonwealth requires visibility (eg, is the Commonwealth interested in recurring defects?)?

Contractor is the configuration manager and holds the master copies of the CSAD and (if applicable) LSAR.

Mods & upgrades unlikely to be included in the firm-priced portion of contract.

TRA requirements likely to apply.

All Engineering Services likely to apply, including mods and upgrades (although these may not be included in the firm-priced portion of the Contract).

Either the Commonwealth or the Contractor could be the configuration manager and hold the master copies of the CSAD and (if applicable) LSAR.


Some level of Engineering Services likely to apply, including mods and upgrades for the Stock Items included in the Contract (although these may not be included in the firm-priced portion of the Contract).

The Contractor could be the configuration manager for the Stock Items included in the Contract, but, equally, this could be another contractor (including the OEM). Either the Commonwealth or another contractor could hold the master copies of the CSAD and (if applicable) LSAR.


May be additional requirements for Engineering Services (eg, defect investigation) for the Stock Items included in the Contract.

Maintenance Support:

Maintenance Planning

Maintenance Management

Maintenance Services

Contractor conducts all Maintenance, including Maintenance planning.

Contractor provides all Non-RIs in support of Contractor Maintenance (but not visible to Commonwealth).

All on-equipment Maintenance conducted at ‘home base’ or port/dock or, in rare cases, deployed to ‘safe’ location.

Cannibalisation unlikely to be an issue.

Maintenance of common items will need to be addressed through the relevant item managers (note –

Contractor conducts all Maintenance not conducted by the Commonwealth or another contractor.

Contractor likely to provide Non-RIs in support of both Contractor and Commonwealth Maintenance (and, perhaps, Maintenance conducted by other contractors).

Contractor conducts Maintenance planning for assigned Maintenance activities, with visibility provided to the Commonwealth because of the implications for Contract price and preparedness. Also, Maintenance planning may need to feed back into Commonwealth

Contractor conducts all Maintenance for assigned RIs under the Contract.

Contractor likely to provide Non-RIs in support of Contractor and, perhaps, Commonwealth Maintenance.

Contractor conducts Maintenance planning for assigned RIs, based on the higher-level Maintenance plan (eg, the Mission System Maintenance plan) provided by the Commonwealth or another contractor.

RI Maintenance could be included within the firm-priced

Commonwealth conducts Maintenance planning.

If an RI Maintenance contract, Commonwealth conducts RI requirements determination.

Contractor conducts Maintenance of assigned RIs.

Contractor may or may not provide Non-RIs in support of this Maintenance.

RI Maintenance based on an item-priced basis.

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Support Scenario #1 Support SceSupport Services Requirement

A-3

nario #2 Support Scenario #3 Support Scenario #4

Commonwealth is in the process here). Maintenance planning.

Maintenance may be included within the firm-priced portion of the Contract or may be included on an item-priced basis.

On-equipment Maintenance may be required in deployed locations during peacetime.

Embedded MRU may be required to cover deployed Maintenance during wartime.

Cannibalisation may be an issue.

Maintenance of common items will need to be addressed through the relevant item managers (note – Commonwealth is in the process here).

portion of the Contract, but more likely to be included on an item-priced basis.

On-equipment Maintenance unlikely to be required.

Embedded MRU may be required to cover deployed Maintenance during wartime.

Maintenance of common items will need to be addressed through the relevant item managers (note – Commonwealth is in the process here).

On-equipment Maintenance unlikely to be required.

Embedded MRU unlikely to be required.

Maintenance of common items unlikely to be an issue here.

Supply Support:

Integrated Supply Chain Planning:

Time Phased Replenishment Planning

Requirements Determination

Plan Supply

Plan Contingency Demand

Plan Contingency Supply

Supply Chain Support

Item Life-Cycle Management:

Entitlements

Introductions & Codifications

Defence Catalogue

Segmentation

Strategic Sourcing

Manage Equipment, Assets & RIs:

Manage RIs

Manage Loans

Manage Loan Pools

Manage Items, Assets and Item Tracking

Write-offs & Disposals

Order Fulfilment

Customer Service

Supply Chain Performance

Integrated supply chain planning would be conducted by Contractor (does the Commonwealth need any visibility into this (eg, for preparedness reasons?))

Commonwealth may not own any Stock Items.

Codification and use of MILIS may not be a requirement if no Stock Items are owned by the Commonwealth.

TRA requirements may apply (eg, for traceability and CofCs).

Contractor conducts RI management and RI pipeline management to meet end-item availability requirements (Commonwealth not interested in this aspect – included in firm price).

Contractor provides all Non-RIs to meet Maintenance requirements (Commonwealth not interested in this aspect – included in firm price).

Reserve Stock Items managed by the Contractor and not necessarily visible to Commonwealth.

Integrated supply chain planning would be conducted by Contractor, with visibility provided to the Commonwealth because of the implications for Contract price and preparedness. Supply chain between Contractor and Defence may be predefined.

Generally, Commonwealth would own those RIs and Non-RIs used by the Commonwealth for its own Maintenance activities (although this does not have to be the case).

Commonwealth may own all RIs and Non-RIs if the previous circumstances dictate this approach (eg, through the acquisition contract or through prior ISS arrangements).

Contractor likely to be required to conduct procurement of Non-RIs and additional RIs.

For Non-RIs provided by the Contractor, Commonwealth owns Non-RIs after Acceptance and payment.

Codification required for all Commonwealth-owned Stock Items IAW DEFLOGMAN, Part 2, Volume 5, Chapter 5. Therefore, Contractor would be required to provide Codification and Cataloguing data for any new items.

Justification for new RIs provided through Stock-assessment tool (eg, OPUS).

Contractor likely to use MILIS for inventory management of Commonwealth-owned Stock Items.

Contractor will require its own inventory-management system for Contractor-owned Stock Items, and Commonwealth may require visibility of these items.

Use of MILIS for procurement may be appropriate.

Use of MILIS for Requirements Determination for RIs and Non-RIs may be appropriate (although the Contract will need to ensure that these tools are not mandated – may cut across performance measures).

TRA requirements likely to apply (eg, for traceability and

Overall integrated supply chain planning would be conducted by the Commonwealth; however, Contractor would need to conduct some level of supply chain planning for assigned RIs and Non-RIs.

Generally, Commonwealth would own those RIs and Non-RIs used by the Commonwealth for its own Maintenance activities (although this does not have to be the case).

Commonwealth may own all RIs and Non-RIs if the previous circumstances dictate this approach (eg, through the acquisition contract or through prior support arrangements).

Contractor may be required to conduct procurement of Non-RIs and additional RIs.

For Non-RIs provided by the Contractor, Commonwealth owns Non-RIs after Acceptance and payment.

Codification required for all Commonwealth-owned Stock Items IAW DEFLOGMAN, Part 2, Volume 5, Chapter 5. Therefore, Contractor would be required to provide Codification and Cataloguing data for any new items.

Contractor may or may not use MILIS for inventory management of Commonwealth-owned Stock Items. If not, Commonwealth likely to require visibility of these items.

Contractor will require its own inventory-management system for Contractor-owned Stock Items and may also use this system for Commonwealth-owned Stock Items. The Commonwealth is likely to require visibility of Commonwealth-owned Stock Items and may require some visibility of Contractor-owned Stock Items.

Use of MILIS for procurement may be appropriate.

Use of MILIS for Requirements Determination for RIs and Non-RIs may be appropriate (although the Contract will need to ensure that these tools are not mandated – may cut across performance measures).

TRA requirements likely to apply (eg, for traceability and

Commonwealth conducts integrated supply chain planning.

Commonwealth manages supply chain to pick-up point and from delivery point.

Commonwealth owns RIs.

Commonwealth owns Non-RIs after Acceptance and payment.

Contractor will probably not have access to MILIS – Commonwealth will manage RI induction.

Contractor would provide Stock Items and some Non-Stock Items such as software to nominated location(s) (eg, DNSDC, ‘home’ base or ‘home’ port).

Commonwealth manages Item Life-Cycle Management, with the exception of partial involvement of Contractor in RI pipeline management.

Contractor would be expected to dispose of Non-RIs arising out of Maintenance, including sullage.

Non-RIs used in Maintenance or supplied to the Commonwealth may be subject to TRA requirements (eg, traceability and CofCs).




CofCs).

Contractor conducts RI management and RI pipeline management to meet Contract RI performance measures.

The Contractor provides all Non-RIs (except those owned by the Commonwealth) to meet its own Maintenance requirements (Commonwealth not interested in this aspect – included in firm price).

RSLs must be maintained by the Contractor, although the Contract will need to address the use of these Stock Items during wartime.

Contractor may be required to share assets with other users (eg, GFE may need to be shared with the FEG).

Contractor may be required to dispose of items on behalf of the Commonwealth. Contractor would be expected to dispose of Non-RIs arising out of Maintenance, including sullage.

Contractor could be required to conduct warehousing and distribution services on behalf of the Commonwealth.

Maintenance of items held in store may need to be provided.

Management of special items (eg, classified, hazardous and shelf-lifed items) may be a requirement.

In peacetime, Contractor would provide items of supply to nominated location(s) (eg, DNSDC, ‘home’ base or ‘home’ port). ‘Home’ port could be a variety of locations (eg, refer Pacific Patrol Boats).

In wartime, Contractor would not be expected to deliver Items into theatre. This aspect of distribution would be covered by the Commonwealth.

Stocktaking of Commonwealth-owned and Contractor-managed items (including GFE) would be a firm requirement IAW DEFLOGMAN, part 2, volume 5, chapter 17, Item identification and recording of Defence assets.

CofCs).

Contractor conducts RI management and RI pipeline management to meet Contract RI performance measures.

The Contractor provides all Non-RIs (except those owned by the Commonwealth) to meet its own Maintenance requirements (Commonwealth not interested in this aspect – included in firm price).

RSLs may need to be maintained by the Contractor, although the Contract will need to address the use of these Stock Items during wartime.

Contractor unlikely to be required to share assets with other users (such as GFE needing to be shared with the FEG).

Contractor may be required to dispose of items on behalf of the Commonwealth. Contractor would be expected to dispose of Non-RIs arising out of Maintenance, including sullage.

Contractor unlikely to be required to conduct warehousing and distribution services on behalf of the Commonwealth.

Maintenance of items held in store may need to be provided.

Management of special items (eg, classified, hazardous and shelf-lifed items) may be a requirement.

In peacetime, Contractor would provide items of supply to nominated location(s) (eg, DNSDC, ‘home’ base or ‘home’ port). ‘Home’ port could be a variety of locations (eg, Pacific Patrol Boats could be at a number of defined locations in the Pacific).

In wartime, Contractor would not be expected to deliver Items into theatre. This aspect of distribution would be covered by the Commonwealth.

Stocktaking of Commonwealth-owned and Contractor-managed items (including GFE) would be a firm requirement IAW DEFLOGMAN, Part 2, Volume 5, Chapter 17.

Training Support Contractor may be required to provide training on the operation of the Mission System(s) and/or other items of equipment.

Contractor unlikely to be required to provide Maintenance training to the Commonwealth.

Commonwealth may need to provide training on Commonwealth Logistic Information Management Systems (LIMS), if used by the Contractor.

Contractor may be required to provide training on the operation of the Mission System(s) and/or other items of equipment.

Contractor may be required to provide Maintenance training to the Commonwealth.


Contractor may be required to provide training on the operation of the Mission System(s) and/or other items of equipment.

Contractor may be required to provide Maintenance training to the Commonwealth.


Contractor unlikely to be required to provide Maintenance training to the Commonwealth.


Operating Support Contractor may be required to operate the Mission System (eg, satellite communications ground station).

Contractor may be required to operate the Mission System (eg, satellite communications ground station).

No Operating Support requirements. No Operating Support requirements.

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Support Resources Key Persons Management likely to be an issue.

Commonwealth may supply strategic or expensive Support Resources (eg, Specialist S&TE). Otherwise, Contractor provides all Support Resources for the scope of work under the Contract.

Commonwealth may need to provide any items excluded from the Contract (eg, cryptographic equipment).

Key Persons Management likely to be an issue.


If an outsourcing contract, Commonwealth may provide large quantities of GFE.

Commonwealth may provide Embedded MRU.

Packaging of items that have special Defence requirements must be IAW DEF (AUST) 1000C.

Key Persons Management likely to be an issue.


If an outsourcing contract, Commonwealth may provide large quantities of GFE.

Commonwealth may provide Embedded MRU.

Packaging of items that have special Defence requirements must be IAW DEF(AUST) 1000C.

Key Persons Management may be an issue.


May not be any special packaging requirements. For packaging of items that have special Defence requirements, must be IAW DEF(AUST) 1000C.

SOW TAILORING GUIDE – ANNEX B

USE OF ASDEFCON (SUPPORT) STANDALONE OR LINKED TO PRECEDING CONTRACT

1 DEVELOPING A DRAFT SOW TO FOLLOW AN ACQUISITION PHASE

When the CASG releases a combined RFT (ie, an RFT that includes both a draft Contract (Acquisition) and a draft Contract (Support)) to ensure that the Contract (Support) is not subsequntly awarded to the Contractor (Acquisition) without competition, the two contracts still need to be linked in a way that ensures a smooth transition from acquisition to support. Often, the one company would bid for both contracts; however, two companies may submit a joint bid or different business entities from within the one corporate structure (eg, separating production and support services companies structured below a common parent) may submit a bid for both contracts. In each case the transition from the Contractor (Acquisition) to the Contractor (Support) needs to be planned and facilitated through the commercial provisions and the work activities of both contracts.

Contract (Support) Phase In activities, leading up to the Operative Date (OD), and Ramp Up activities, following OD, must be cognisant of the transition activities under the Contract (Acquisition) while considering that both contracts may have been signed years before the actual process of delivering and establishing the new items in-service and with only limited activity under the Contract (Support) in the meantime. This is especially so when the Contract (Acquisition) involves a developmental program, lasting several years, and the Products Being Supported and the Support Resources for the Contract (Support) were not defined when the contracts were signed on the same Effective Date (ED).

In tailoring the two contracts, the following points identify some of the considerations for linking the two contracts together:

a. The draft master schedules from the two contracts, particularly during the transition and Phase In / Ramp Up period, should be consistent and may have common milestones.

b. The Contractor (Support) may be required to attend Contract (Acquisition) system reviews, particularly those related to definition of the ‘physical’ Support System that they will be part of, and when defining the quantities of Support Resources to be acquired.

c. A Contract (Acquisition) Transition Requirements Review (TXRR) should be held, which includes representatives from the Commonwealth (eg, in-service user units), the Contractor (Support), and (optionally) Approved Subcontractors (Support).

d. The Contractor Transition Plan (CTXP) from the Contract (Acquisition) and the Phase In Plan (PHIP) and Ramp Up Management Plan (RUMP) from the Contract (Support) should be consistent with each other.

e. Transition working groups, including the Contractor (Acquisition), Contractor (Support) and the Commonwealth may be held subsequent to the TXRR.

f. Any support undertaken by the Contractor (Acquisition) (eg, Maintenance during V&V activities) needs to be coordinated with the Phase In and the Ramp Up of the Services being provided by the Contractor (Support).

g. Details of the Products defined under the Contract (Acquisition) must be transferred to the Contract (Support), as appropriate to the scope of the Services (eg, lists of Products Being Supported and identified acquisition deliverables that become Support Resources, such as technical manuals).

h. The delivery of Products from the Contract (Acquisition) must be consistent with establishing the Contract (Support) (eg, newly acquired S&TE or Technical Data must be delivered and Accepted before it can be provided to and used by the Contractor (Support)).

i. The transfer of Configuration Management data and responsibility from the Contractor (Acquisition) to either the Commonwealth or Contractor (Support) must be both timely and sufficient to enable the support agency to provide the required Services when needed.

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The ASDEFCON (Support) Attachments and SOW Annexes, which require updating as a result of the activities of the Contractor (Acquisition), are mostly based on ILS program documents, undertaken by the Contractor (Acquisition) to define and establish the Support System. The applicable ILS activities and documents, to the extent required by the particular requirements of the Contract (Acquisition), include:

a. development of the Support System Specification (SSSPEC), which informs in-service planning and performance specifications (ie, should be traceable to in-service KPIs);

b. development of the Support System Design Description (SSDESC), including support resource requirements and procedures;

c. undertaking human resources planning, including the specification of skill sets and competencies (including Contract (Support) skills and Commonwealth skills that may require Training Support Services);

d. undertaking a training needs and design analysis to specify training requirements and to develop the Training Management Packages;

e. producing Technical Data to be used in-service;

f. specifying and acquiring or manufacturing Support and Test Equipment (S&TE) and Training Equipment;

g. specifying and possibly acquiring or implementing facilities requirements;

h. developing a Supply Support Development Plan (which may include considerations of packaging, handling, storage and transportation) and may specify and acquire Life Of Type (LOT) stock of RIs and initial non-RIs;

i. defining IP and AIC requirements that become the basis for the in-service plans that become Contract (Support) Attachments;

j. developing disposal plans and software management plans for in-service use; and

k. specifying and (if required) acquiring computer support.

To coordinate the two contracts, the OD milestone is usually linked to the System Acceptance Audit (SAA) for the first major system to be delivered by the Contractor (Acquisition). The SAA requires that sufficient support be ‘in place’ for the delivered systems (essentially the prerequisites for OD) and OD requires that the SAA requirements be achieved – hence these milestones from both contracts are linked, as a minimum. Subsequent milestones during Ramp Up may also be linked, for example, if a significant step-up in support Services is required to support a newly delivered batch of Mission Systems, Services at a new location, or a new type of Service (eg, as engineering responsibility passes from acquisition to support).

While much of the effort here, and discussion above, focuses on the two Contractors (or two parts of one company), it is also important to recognise Commonwealth obligations in enabling the transfer from the Contract (Acquisition) to the Contract (Support). Some of these activities should be identified in the CTXP, PHIP, RUMP and OD clauses; however, the Commonwealth’s transition plan (and, potentially, the capability realisation plan) should also provide sufficient detail, which should be consistent with the linkages between the two contracts.

Drafters wishing to better understand the linkages between acquisition and support, the ASDEFCON Handbook Philosophy Volume contains a section that explains the development of a Support System under a Contract (Acquisition) and how this relates to the Services provided under a Contract (Support).

Finally, a draft ‘ASDEFCON Linkages Module’ has been developed in order to link together a Contract (Acquisition) with a Contract (Support). The ASDEFCON Linkages Module includes the amendments,

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additional clauses, new DIDs and checklists commonly needed to link contracts – it also contains guidance explaining how the components of the module are intended to work. Use of the ASDEFCON Linkages Module requires guidance from CASG PCSB.

2 DEVELOPING A DRAFT SOW TO FOLLOW A CONTRACT (ACQUISITION) THAT IS NOT LINKED

The situation may arise where the Commonwealth chooses not to release a joint RFT, but to buy the equipment and to seek support separately either because there was no in-country support (eg, items from overseas without an in-country support contractor, such as Foreign Military Sales (FMS)), or because the system is able to be supported by a number of contractors and there is no need for a combined RFT to provide adequate competition. This situation can also occur when the intended Contract (Support) is an established common support contract; in which case, the focus is on amending the existing contract, rather than drafting a new Contract (Support).

The general concept for transferring Products and information from the acquisition program to the support program, which was described for the linked contracts in the preceding section, still applies; however, instead of Contractors taking on much of the responsibility, the Commonwealth is responsible for the transfer. Also different, and most important, is that information from the Contract (Acquisition) or the associated tender response should be available at the time of drafting the Contract (Support).

The Commonwealth Representative will need to determine what Products and information need to be obtained from the Contractor (Acquisition) and transferred to the Contractor (Support). The Contractor (Support) would be expected to source common Support Resources on its own accord. Hence, the Commonwealth needs to focus on unique aspects, such as access to, and release of, IP, technical manuals, special to type / peculiar S&TE, training materials, software and licenses, and system-unique spare parts. Importantly, the Contractor (Support) may require Products and information that the Commonwealth does not use itself, such as Technical Data and S&TE for deeper levels of Maintenance, which might need to be provided as GFI and GFE. Alternatively, the Commonwealth Representative may require that the Contractor (Acquisition) establish an agreement (eg, MOU) with the Contractor (Support) to facilitate the required transfer.

With these considerations in mind, the drafter needs to develop the ASDEFCON (Support) SOW and relevant Attachments with information from the Contract (Acquisition) or its tender response.

3 DEVELOPING A DRAFT SOW TO FOLLOW ANOTHER SUPPORT CONTRACT

With a system that is already in-service, the ASDEFCON (Support) contract templates can be used to develop a replacement contract. One of the first questions the drafter should ask is: ‘Was the current contract based on ASDEFCON (Support)?’ If so, then the drafter should attempt to validate that the Services requested and provided by the current contract actually met the users’ requirements. If ‘valid’, then the existing Contract (Support) can make a good template for the new Contract; otherwise, deficiencies will need to be addressed. Where there are areas of deficiency, the current version of the template and this tailoring guide should be consulted in the first instance. The drafter should check for all changes between the existing contract and the current templates, as the templates will pick up standard policy changes that have occurred during the contract period.

If the existing contract was not based on the ASDEFCON (Support) template, then the same need for validation arises, but more effort will be required to transfer work requirements into the ASDEFCON format. Typically, non-ASDEFCON-based support contracts use a different philosophy, framework and are often not performance-based. As such, there can be considerable work required to translate across to the ASDEFCON (Support) template. In this situation, it is recommended that drafters should develop a support concept and support procurement strategy (based on the ASIS) first, which lay out the support requirements and associated interfaces with the Commonwealth, before starting to tailor the template.

The next question the drafter should ask is: ‘What provisions for Phase Out have been included in the existing contract?’ If the existing contract used the ASDEFCON (Support) template, then it may include a number of activities for Phase Out (clause 2.7), as described in the Approved Phase Out Plan (PHOP). A PHOP may not need to be delivered until an appropriate time before the end of the

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current Contract Term (eg, two years). This requirement is built into the template CDRL and Off Ramp provisions of the Contract (COC clause 13).

Like the CTXP from a Contract (Acquisition), the PHOP should inform the development of the new contract’s PHIP and will help to coordinate the transfer and the Phase In activities in preparation for the OD for the new Contract (Support). Example activities that may need coordination include:

a. the handover of RIs, in a serviceable state, and a complete stocktake of supplies held;

b. the handover of S&TE and Training Equipment, in a serviceable state;

c. the handover of Technical Data, including any GFI and GFD;

d. the transfer of software tools and licenses;

e. the transfer of Configuration Management data and records (either directly or via the Commonwealth); and

f. the departure of one Contractor (Support) from GFF, and the arrival of the other.

The requirement for handover of Items in a serviceable state is important, as the new Contractor (Support) may need to accept Items of GFM as if they were delivered by the Commonwealth. This may require clause 3.11.1.4, as an example, to be amended, as it may not be possible for the new Contractor (Support) to accept GFE 15 Working Days before work commences. Other clauses for GFE, in the SOW and clause 3 in the COC, will require careful review and amendment, as necessary.

GFF can have similar challenges, as it is usually difficult for one Contractor (Support) to depart and the other to arrive on the same day, while ensuring continuity of Services. In addition to the PHIP and PHOP, the drafter may also need to draft, for inclusion in the tender documents, any constraints associated with, for example, the transfer of GFF during the Phase In period. For GFF, the deed (or license) at Attachment I for out-going and in-coming contractors should be reviewed also.

The Commonwealth Representative may be required to ensure that the IP schedules are up-to-date at transfer, and that the related Technical Data is also up-to-date.

One advantage of transferring from one Contract (Support) to another is that management plans and procedures that describe the Support System, or at least the part related to the required Services, should be proven and available to inform prospective tenderers. Additionally, performance measures should either be established from the existing Contract (Support) or, if not established because the current Contract is transactional in nature, then it can be used as a basis for measurements to help the drafter set performance measures for the new Contract (Support) in the performance-management sections of the draft Contract.

The Phase In period for the new Contract (Support) can also be used as a due diligence period; however, advice from CASG PCSB should be sought where this approach is being considered due to the complexities involved.

The costs of Phase Out activities in the PHOP are likely to be difficult to scope and cost at the start of a Contract, hence S&Q rates may need to be used. This may be viewed as an unnecessary cost; however, properly managed, Phase Out can enable a greater level of competition for the replacement Contract (Support), rather than leaving the Commonwealth in a sole-source situation.

Note: even if the current Contractor (Support) wins the replacement contract, there are still benefits in having a PHOP and a clearly defined transfer to the new contract, particularly if the scope of work is different and / or the performance-management framework is different.

4 DEVELOPING A DRAFT SOW TO FOLLOW DEFENCE SUPPORT

In the instance where the Commonwealth has decided to outsource support functions that are currently performed by Defence, the emphasis is on the Commonwealth to provide all of the relevant support and planning information to develop the draft Contract (Support) and to enable tenderers to prepare effective responses.

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The drafter will need to compile Attachments and SOW Annexes from in-service sources, including for example, for the identification of:

a. the Mission System / equipment, as Products Being Supported, from a Configuration Management database, Maintenance Management System, or illustrated parts breakdown (IPB) (note: the IPB could be referred to from SOW Annex A if the approach is adopted to list the Mission Systems and exemptions – refer to guidance within SOW Annex A);

b. the software, as Products Being Supported, from a Configuration Management database or separate software list;

c. the S&TE, as Products Being Supported, from unit tool and/or calibration lists (noting that, where these items are provided to the Contractor (Support) as GFE, they would also need to be entered into Attachment E, GFM);

d. the Technical Data and reference manuals, from technical data libraries, and this information may also need to be entered into Attachment E (if GFI / GFD), SOW Annex A (if the document is maintained by the Contractor), and SOW Annex D (or SOW Annex A, if it is referenced by the Contractor in performing work); and

e. Key Staff Positions, from existing duty statements.

Other lists may need to be compiled in preparation for the Contract, such as IP schedules.

An Contract (Acquisition) would normally provide an overall description of the Support System, either as a proposed Support System solution, Support System specification, or Support System description. These types of documents may be suitable as advisory documents for inclusion in the RFT for the new Contract (Support). Where the system is already in-service, in-service support system or logistics plans, such as the Army’s ILS Instruction – 3 (ILSI-3), may be appropriate. Without these, a Support Concept (eg, from within an earlier OCD) may be suitable as a starting point. If these are not available, drafters should produce the information, necessary for tenderers to plan the required Services, for possible inclusion with the RFT, but (as a minimum) to assist with developing the SOW. These types of documents can provide valuable information to tenderers when developing their plans for the provision of Services.

The managing CASG support agency should also compile a transition plan suitable for release to tenderers. The transition plan needs to detail:

a. the assembly of resources such as GFE and RIs,

b. the schedule for moving into facilities and undertaking the full stocktake and handover of existing Items,

c. any available training for the Products and any mandated Defence IT systems, and

d. the ramp-up of Maintenance and other support activities where these occur over a period of time.

This type of information will help the tenderers develop the PHIP and make preparations for the OD, which would typically depend heavily on Commonwealth activities.

The Phase In period for the new Contract (Support) can also be used as a due diligence period; however, advice from CASG PCSB should be sought where this approach is being considered due to the complexities involved.

The current Defence activity may be used as the basis for developing performance measures. If so, the drafter must ensure that any necessary adjustments are made; for example, if a change of tempo, role, or location affects the performance of Services at the commencement of the Contract.

Finally, for a large Contract (Support), the drafter may consider including ODIA as part of the tender and contract preparation process. These are typically intended for large acquisition contracts, but the

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concept can be adapted to in-service support. Refer to the ODIA section at the start of this Tailoring Guide for further explanation.