Defence Support Services Summit

Key issues in maintaining the Defence Estate

and Base Services

Mark Jenkin

Head Defence Support Operations

Defence Support and Reform Group

2

Key issues in maintaining the Defence Estate and Base Services

Topics for Discussion

• Summary of the journey on Base Services

Re-Tender

• Estate Upkeep through Risk Management

• Estate Program through Base Services

Contracts

3

EMOS – Mapping Old to New

Bundling of

Services

Estate Maintenance & Operations Services

(EMOS) Bundle

Management, Integration & Co-ordination

(MIC) Including Estate Appraisal

Base Services Support Centre

Cleaning & Housekeeping

Commercial Operations (Central West only)

Estate Upkeep

Land Management

Laundry & Dry Cleaning

Reprographics

Pest & Vermin

Sports & Recreation

Training Area and Range Management

Transport and Airfield Support Operations

GSS

Mgt of Services

Accommodation Mgt

Airfield Support

Cleaning

Commercial Ops

Grounds Maint

Laundry & Dry

Pest & Vermin

Reprographics

Sport & Recreation

Range & Training

Transport

CMS

Mgt of Services

Property Services

Centre

Infrastructure Appraisal

Engineering Operations

Routine & Reactive Works

Fixed Plant & Equip

Special Forces

Training Facilities

Estate Maintenance & Operations Services (EMOS) Bundle

Accommodation Booking

removed and transferred to

DHA

4

Bundling of

Services

GSS

Access Control

Hospitality and

Catering

Aircraft Refuelling

Fire fighting Services

Stores Mgt Services

POL

Waste

CMS

Regional Program

Dev & Mgt

Risk Managed

Works

National Program

Services

Retail Stores & POL

Aircraft Refuelling and

Rescue & Fire Fighting Bundle

Access Control

Hospitality and Catering

Waste

Project Delivery Services

Miscellaneous Service Packages

Miscellaneous Service Packages – Mapping Old to New

5

What does it look like?

For Estate Maintenance and Operations

(EMOS) Services

Three Contracts – Transfield, Spotless

and Brookfield

For Access Control Services

Two Contracts – Wilsons, MSS

For Waste Services

Veolia

For Hospitality and Catering Services

Two Contracts – Transfield and Compass.

6

What does it look like?

For Estate Maintenance - Program and Projects

One National Program Services Contract - UGL

Two National Project Delivery Contracts - Aurecon,

Augility

For Retail Stores and Petrol Oil and Lubricants

Services

One National Services Contract - Transfield

For Aircraft Refuelling, Rescue and Fire fighting

One National Services Contract – Transfield

7

Group 2

Group 3

Tra

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Group 1 Tra

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How will we Transition?

July

2014

Phase 1 - Establishment of National Program Services Contract

Phase 2 – Establishment of National Project Delivery Contracts.

TIMELINE

Oct

2014

Aug

2014

Sep

2014

Nov

2014

Dec

2014

Cutover Date – Group 2, 1 Nov 2014

Cutover Date – Group 3, 1 Dec 2014

NPS PDS

Phase 4

Retire

Exis

ting C

ontra

cts

Cutover Date – Group 1, 1 Oct 2014

Tra

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n

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riod

Phase 3 – Establishment of EMOS, AC, H&C,

Waste, ARRF and RSPOL Contracts in three groups.

Defence Support Services Summit

Estate Upkeep through Risk Management

DSO Risk Management Framework

• DSO has established a whole of DSO Risk Management Framework to provide consistent / standardised risk management approach to enhance decision making, improve DSO outcomes & performance, contribute to ADO capability & protect personnel, reputation & assets.

• It focuses on:

- minimising surprises;

- achieving on time & within budget service delivery, fit for purpose to cost effectively meet stakeholder expectations;

- manage legal liability;

- prevent disruption to DSO services; &

- prevent financial loss (including theft & fraud).

• Vision - Risk management is to be part of DSO culture.

Risk Management in Estate Upkeep

• DSO Reform Principles key to management of Risk in the Estate:

- Becoming an Informed Owner. DSO transitions from

delivery & support to an Informed Owner overseeing

contractors delivering services for Defence.

- Stronger Risk Management. Disciplined approach to

decision making at base, regional & national levels via prudent &

practical framework to cover all risks (incl Estate).

- Value for Money. How DSO & contractors collaborate to

achieve best balance between contractor risk exposure & Value

for Money.

DSO Risk Management Framework

• Effective risk management can only be achieved through a

strong relationship between DSO and contractors facilitated by

continual open communication and consultation underpinned by:

- a defined risk process;

- guidance on accepting risks above defined tolerance levels;

- escalation protocols;

- a common way of describing (or phrasing) a risk;

- multi-dimensional consequence criteria;

- mechanisms for control effectiveness assessment; &

- robust processes for assurance and risk review.

Estate Upkeep in Defence Support

DSRG is Defence’s Estate Steward.

DSO and Infrastructure Division share the responsibility for

stewardship of the Defence Estate.

DSO has reformed how it contributed to Estate Stewardship within

Defence.

• The key changes were:

– Redefining the relationship between Contractors and

Defence in maintaining the Estate.

• Defence is the Steward; and

• the contractor is the manager

– The way maintenance Projects are delivered

– Improved systems to manage Estate compliance and

planning

Estate Upkeep Maintenance Planning

An integrated Estate Appraisal program under pins how

DSO manages Estate Maintenance planning.

• Estate Appraisal builds on the extant Infrastructure

Appraisal program.

– It focuses on the whole estate, not just built

assets

– EA is incorporated into the EMOS contract

– EA is the primary source of information for the

development of the Estate maintenance program

and a key input to capital investment

• Estate Maintenance is programmed within a three

year horizon

Estate Upkeep Maintenance Delivery

Maintenance is specified using a common estate classification model.

All Base Services contracts are guided by the same maintenance requirements

A maintenance strategy is defined for all items on the estate.

– Performance Based Maintenance;

– Scheduled Maintenance; or

– Responsive Maintenance.

Estate Compliance Management

• Achieving, maintaining and reporting compliance is critical to the safe and unhindered use of the Defence estate.

• Equipment maintenance does not guarantee system compliance.

• Compliance is sustained through a whole of Asset lifecycle approach, not just maintenance performance.

• Changes to the WHS Act require Defence as a PCBU to be much more informed.

• DSO has established a central team to oversee Estate Compliance within the Defence Estate

• Base Services Contracts provide greater focus on compliance management and record keeping.

• Introduction of GEMS will provide a robust maintenance and records management system to support compliance management

Defence Support Services Summit

Estate Works Program through Base Services

contracts

Estate Works Program and Project Delivery

• Estate Works program is the delivery of works to

maintain the Defence Estate. These are

predominantly projects below $7 million and are low to

medium in terms of risk and complexity.

• They are delivered to all areas of the Defence Estate

in Australia

• Projects would include

– maintenance, repair and disposal of facilities

– consultancies such as Design Heritage and

Environmental

– Land management projects such as indigenous

species and range management

– New facilities to support capability development.

Estate Works Program and Project Delivery

• Under the Base Services model the Delivery of the

Estate Works Program is provided through

• NPS – National Program Service

– UGL were successful Tenderer

– Takes the various input to the Program, prioritises

and parcels it in appropriate bundles for economic

and efficient Industry delivery

• PDS – Project Delivery Services

– Aurecon and Augility were the successful Tenderers

– Program Manager Contract Authority for Defence.

– Delivers projects through out Australia

Estate Works Program (EWP)

Prioritisation

Process

NPS

DEC

Endorsement

Condition

Assessment

Business

Case

Audit

Finding

Risk Management

of unfunded

Liability Scope and

Feasibility

PDS

Design

10% cost certainty

PDS

Second Pass

Approval

Procurement and

Delivery

PDS

In year

requirement

EMOS

Maintenance

Project

CFI

Redevelopment

project

Expected Benefits of BS model in EWP delivery

• Nationally consistent approach.

• Better Value for money outcomes due to greater certainty

in terms of time and cost.

• Flexible resourcing model to meet Defence requirements

• Improved consultation process with Groups and Services in

program development.

• Clear prioritisation process to inform Senior decision

making process.

• Improved data form condition assessment .

• Streamlined and consistent procurement and contract

documentation using AusTender.

• Allocation of projects by national priority

Questions?