TOP SECRET DEFENCE ESTATE & TOP SECRET INFRASTRUCTURE New - - PowerPoint PPT Presentation

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DEFENCE ESTATE & INFRASTRUCTURE

2

New Zealand Defence Industry Association Members Meeting 9 May 2018, Wellington

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Estate Regeneration: Building DEI capability through an Alliance

May 2016: Defence White Paper 2016 As part of the Defence White Paper, Cabinet agreed to fund Defence Estate Regeneration. July 2015: Defence Estate Plan Cabinet requested a framework for regeneration, management and use of Defence Estate to 2030, due June 2016. July 2014: Approach to Managing the Defence Estate SEC confirmed that Defence would maintain in its current location and DMRR would be ring fenced for Estate purposes.

Regeneration

June 2018: DEI Report to NZDF Board DEI/Alliance update to NZDF Board.

Integration

May 2014: Budget 2014 Provided first increase to NZDF operating baseline including increased estate maintenance funding. May 2017: Budget 2017 Provided capital injection to support tranche one of Estate Regeneration Plan.

Estate

August 2016: Defence Estate Regeneration Programme Plan Cabinet approved Estate Regeneration Plan and approved that Joint Ministers be delegated the ‘Approval to Initiate’ the first tranche

• f investments out to FY2019/20.

ATI received December 2016. November 2013: DMRR Cabinet noted that DMRR estimates $1.7billion estate funding was required, and agreed guiding principles for Defence Estate recapitalisation.

Recapitalisation

The Alliance is part of the transformation to the new operating model, which will augment DEI and provide the capacity and capability to deliver on the Estate Regeneration Programme Plan

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Estate Regeneration Programme strategic alignment

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Estate Regeneration investment approach

Tranche 2: 2021-2025 Major Investment

• Upgrade Estate;
• Consolidate within and between locations;
• Major regeneration work that aligns to Defence

Capability Plan and Capital plan.

Tranche 1: 2016-2020 ‘Ramping Up’ Investment*

• Strengthening capacity of Defence Property

Group;

• Undertaking initial recapitalisation projects;
• Gathering asset data to inform regeneration;
• Completing Estate Strategic Framework for

camps & bases;

• Address immediate compliance issues.

Tranche 3: 2026-2030 Steady State Investment

• Business as usual replacement/renewal of

existing Estate and infrastructure;

• Three year rolling review to enable flexibility to

ensure support of changing capability requirements.

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Core Alliance principles and features

• Achieving an enduring Estate capability through a blended workforce approach.
• A relational model rather than a traditional transaction-based approach that is focused on

cultural alignment and effective working relationships with industry.

• A commercial model that drives the achievement of outcomes.
• A customer-centric approach to ensure greater certainty and affordability over the final
• utputs.
• Achieving value for money by focusing on through-life management and benefits realisation.
• Availability of capability and capacity who can deliver the required Estate function outputs for

the duration of the contract period.

• Shared ownership and management of risks aligned to NZDF risk appetite statement.

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DEI functions

Strategy Performance

Joint Alliance Management Team Alliance Partner

Flexible surge capacity up & down to support demand

Alliance

Office of the

HDEI

Governance

• Estate Investment Committee
• DEI Leadership Team
• Alliance Leadership Team

Enduring Capability

Functions

• Stakeholder & Relationship Mgmt.
• Governance & Leadership
• Culture Change & Comms.
• OH&S and Wellbeing
• HR Training & Induction

Functions

• Strategic Alignment
• Policy Framework
• Stakeholder & Relationship Mgmt.
• People & Capability Strategies
• Sustainability Strategies
• BCP & Resilience Strategies
• Investment & Estate Planning
• Strategic Prog. & Business Cases
• Tenure & Negotiation

Functions

• Estate Governance
• Portfolio Mgmt.
• Information Strategy & Policy
• Risk & Assurance
• Commercial Mgmt.
• Alliance Perf. & Improvement

Functions

• Support Investment & Estate Planning
• Programme Mgmt.
• Project Mgmt.
• Asset Mgmt.
• Environment Mgmt.
• Administration Support
• Information Mgmt.
• ICT
• Customer Service Desk
• Business Improvement
• Contract Mgmt. & Performance
• Culture Change & Comms.
• OH&S and Wellbeing
• HR Training & Induction
• Risk & Assurance
• Finance & Accounts
• Protective Security
• Procurement
• Legal
• Estate Steering Group

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Procurement – broad approach and timeline

• Our intended procurement approach will include a Registration of Interest (ROI), planned to be

released via GETS at end Qtr 2 2018. This will be followed by a Request for Proposal (RFP) planned to be released via GETS in Qtr 3 2018.

• Our evaluation methodology will be focused on capability, capacity and culture and will be

achieved in part, through interactive workshops.

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Due diligence

Due Diligence Research Visits Australian Defence Force Defence Infrastructure Organisation (DIO) United Kingdom New Zealand Transport Agency Western Australia Water Corporation Transpower New Zealand Alliance Air Warfare Destroyer (AWD) Alliance Defence Construction Canada Tararua Alliance Stronger Christchurch Infrastructure Rebuild Team (SCIRT) Americas Cup Village Alliance (Auckland Council) Wellington Water

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Business improvement initiatives underway

• Capital project lifecycle improvements
• Improvements in the Health and Safety system
• Delivery using a Fast Track methodology, e.g. piloting NEC 4
• Developing and implementing KPI measures for projects and Facilities Maintenance including

benchmarking

• Refreshing operating documentation and process
• Establishing a Lean Six Sigma centre of excellence including an Innovation Hub
• P3MO
• Organisational review

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THE JOURNEY

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JOURNEY TO ALLIANCE READINESS

• Culture Change Plan
• Health, Safety & Wellbeing –

Rapid Improvement

• Sustainability Framework
• Business and Process

Improvement Initiatives

• Change Management
• Communication Planning
• Stakeholder Engagement
• P3MO

Integration – “coming together for greater effect”

THE JOURNEY

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BETTER TOGETHER VALUE ADD

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OUR FOCUS

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POLL EVERYWHERE

PollEv.com/pridenzdf108

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Communication channel

AllianceProject@nzdf.mil.nz