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Thread: Australia's Defence Capability Plan

  1. #21

    ]The US has only 26 attack submarines in the Pacific compared with China's 62.
    LOL. Lets simulate this force balance by getting 26 UFC cage fighters in a room with 62 mathematics higher research degree students and see who comes out on top?

  2. #22

    Public Defence Capability Plan – Update 2

    (Source: Australian Minister for Defence; issued December 17, 2010)

    (All monetary amounts in Australian dollars unless otherwise specified)

    Today I have released an updated and enhanced Public Defence Capability Plan (the DCP).

    The DCP update (Update 2) provides key information for the Parliament, Defence industry and the Australian public on Defence’s Capital Acquisition Plans.

    The enhancements to the DCP follow a review of the DCP commissioned by the Government from the independent Australian Strategic Policy Institute on ways to make the DCP a more useful and more transparent document.

    The return to a ten-year planning horizon provides a longer term view of Defence’s capability requirements.

    The updated DCP contains 140 capability projects or phases, with a total budget of over $150 billion in 2010 prices. It includes a number of new features:

    -- information on initial operational capability, final operational capability, initial materiel release and life of type where that information is available;

    -- more details on the opportunities that may be available to the Australian defence industry;

    -- indicative timing for major scheduled project activities;

    -- detail on any project related infrastructure or facilities; and

    -- improved cost estimate information.

    The increased information will give the Parliament, industry and the public a better understanding of Defence’s capability and acquisition plans. It will also help industry better prepare for its engagements with Defence and better plan its future investment and skilling decisions. This will help Defence to best achieve the critical task of equipping, supporting and sustaining our sailors, soldiers, airmen and air women.

    It is important to note that the DCP changes over time as Defence priorities and strategic circumstances change and new projects enter the DCP, or projects are approved and as a consequence removed from the DCP.

    It is therefore the case that changes will occur in coming years. Projects may be accelerated, deferred, or diminished as circumstances change. While the DCP provides the best information available at the time of publishing, some of the information in the DCP, including in relation to approval schedules is indicative.

    This DCP is no exception, and since the February 2010 electronic update:

    -- four projects or phases have been approved by Government and therefore removed from the DCP;

    -- two projects have been cancelled; and

    -- seven projects have been brought forward, 19 projects have had their indicative schedules deferred and nine projects provide more precise information on their schedule.

    In addition to the four projects or phases approved and removed from the DCP, the Government has approved an additional 16 projects (including first or second pass) since February 2010.

    The total value of projects approved since February 2010 is nearly $2 billion.

    There is also an element of over-programming built into the DCP. Over-programming is designed to provide flexibility and to ensure that best use is made of available funding in the development of individual projects. Over-programming means that project timing may change.

    The contribution of Australia’s local defence industry is crucial to our defence and national security. The Minister for Defence Materiel and I propose in early 2011 to meet with key Defence industry groups, including the Australian Industry and Defence Network (AIDN), the Defence Council of the Australian Industry Group and the Australian Business Defence Industry Unit.

    2011 promises to be a demanding year for project approvals and I look forward to Defence and Industry working together to progress the plans outlined in the DCP.

    This update is only available electronically. The next printed version is planned for release mid next year.


    The electronic version can be found at http://www.defence.gov.au/dmo/id/dcp/dcp.cfm

    My Foreword to the update is available at: http://www.minister.defence.gov.au/smith/forward.htm

    -ends-

  3. #23

    Anzac Ship Electronic Support System Upgrade, Enhanced ADF Telecommunications Networks, and Special Operations Capability Vehicle Enhancements

    (Source: Australian Department of Defence; issued February 15, 2011)

    The Minister for Defence, Stephen Smith MP, and the Minister for Defence Materiel, Jason Clare MP, announced today that the Government has given First Pass Approval for three major Defence capability projects: upgrades to the Anzac class frigates’ electronic support systems; enhancements to the Australian Defence Force (ADF) telecommunications networks; and enhancements to the ADF’s Special Operations vehicles and communications.

    These three projects combined are estimated to involve expenditure of between $500 million and around A$1 billion by the time they are complete.

    1. Anzac Ship Electronic Support System Upgrade

    The Government has agreed to upgrade the Anzac class frigates’ electronic support systems, through Project Sea 1448 Phase 4A, as a complementary capability within the ongoing Anzac anti-ship missile defence program.

    Project Sea 1448 Phase 4A is cost capped between $100 million and $300 million. The Government is expected to make a final decision on approval for the project in the period 2012 to 2013.

    The electronic support system upgrade will provide the Anzac class frigates with the ability to detect, classify and locate the latest generation of maritime and aircraft radars, as well as the latest anti-ship missiles.

    This upgrade will give the Royal Australian Navy’s Anzac class frigates a greater level of operational flexibility within the rapidly increasing complexity of modern radar systems. It will also improve the ability of the frigates to support the Navy’s future Air Warfare Destroyer capability.

    2. Enhanced Telecommunications Networks for the ADF

    Enhancement of the ADF’s fixed telecommunications networks, to be undertaken through Joint Project 2047 Phase 3, will enhance Defence’s information and communications technology (ICT) services.

    Joint Project 2047 Phase 3 is cost capped between $300 million and $500 million. The Government is expected to make a final decision on approval for the project in 2011-2012.

    The Defence telecommunications network includes 330 sites in Australia supporting some 100,000 users in Australia and overseas. The project will significantly improve network performance and meet capability requirements into the 2020’s.

    3. Enhancements to Special Operations Vehicles and Communications

    The Government has also given first pass approval for Joint Project 2097 Phase 1B to enhance the Australian Defence Force’s Special Operations vehicle capability.

    The project will deliver a modern fleet of tactical Special Operations Vehicles and will provide significant improvements to the Special Forces’ networked communications.

    Joint Project 2097 Phase 1B is cost capped between $100 million and $300 million. The Government is expected to make a final decision on approval for the project in 2013-14.

    The enhancements to be delivered under JP 2097 Phase 1B will support the tactical manoeuvre of Special Forces and improve the efficiency of tactical network communications across the full spectrum of Special Operations. The vehicles will be highly mobile and able to be transported in a range of ADF aircraft and ships allowing the ADF’s Special Forces to maintain its capability edge.

    -ends-

  4. #24

    Rising [Australian] Dollar to Give Defence Savings A Headstart

    (Source: Australian Strategic Policy Institute; issued April 19, 2011)

    Further delays to defence purchases and gains from currency movements are the most likely source of savings from the department in the upcoming budget.

    Defence Minister Stephen Smith at the weekend flagged his department was losing the immunity from budget pain it enjoyed during the Howard government and would be expected to offer up savings to contribute to a return to surplus in 2012-3.

    Although Defence has embarked on reforms intended to deliver savings over the next decade totalling $20 billion, analysts don't expect significant early returns.

    "It is very difficult to run down recurrent costs and personnel. What is easy is to defer projects and not sign contracts," Australian Strategic Policy Institute budget program director Mark Thomson said.

    The profile of defence equipment purchases has been shaped by the 2009 white paper and was framed in the shadow of the global financial crisis, with spending cut in the short-term, and pushed out beyond 2014. The equipment purchase budget is scheduled to fall from $5.8bn this year to $5.2bn in 2011-12 and then drop to $4.6bn in 2012-13, the year the budget is intended to return to surplus. Spending is then budgeted to jump back up to $5.5bn in 2013-14.

    Mr Thomson said it was not possible to identify which projects have been delayed, with details held deliberately vague to reduce lobbying. Getting spending down in 2012-13 was the most important objective. "What matters is the holy grail of a demonstrated budget surplus," he said.

    Securing savings would be helped by the rise in the dollar, which cuts the cost of imported equipment. On the assumption that about half the capital equipment bill is priced in US dollars, the 16.5 per cent appreciation of the Australian dollar since last year's budget will deliver a saving of about $1.6bn over four years.

    Mr Thomson said it was clear from contractors' complaints that some substantial savings had been secured in areas where specialist knowledge had delivered monopoly returns. "However, the scale of savings they're talking about is implausible. It is one thing to cut back excess payments to specialist military firms and another thing to achieve it on things like catering, cleaning and maintenance."

    Sapere Research director and former finance department deputy secretary Stephen Bartos said the running cost budget was automatically inflated by an unusual fixed 2.5 per cent indexation. This undermined the effect of savings achieved under the budget review.

    Mr Bartos said there was scope for large savings if government wanted, with Defence's bureaucracy being one of the fastest growing areas of in the public service.

    He said there was also the potential to improve the budget position by stopping the practice of carrying forward surplus funds within Defence and returning them to the budget.

    -ends-

  5. #25

    Government Agreement to Progress Two Major Defence Capability Projects

    (Source: Australian Department of Defence; issued May 6, 2011)

    The Minister for Defence, Stephen Smith, and Minister for Defence Materiel, Jason Clare today announced that the Government has given approval to progress two major Australian Defence Force (ADF) capability projects.

    These two projects combined are estimated to involve expenditure of up to $1 billion by the time they are complete.

    Joint Project 2072 Phase 2B – Battlespace Communications System (Land): First Pass

    The Government has given first pass approval to Joint Project 2072 Phase 2B, which is aimed at providing the ADF with a next generation telecommunications network capability. This capability will provide a modern, deployable communications system that enables the transmission of information over a range of wired and wireless networking services, such as radios, satellite and computer servers and terminals.

    Joint Project 2072 Phase 2B is cost capped between $100 million and $500 million. The Government is expected to make a final decision on approval for the project in the period 2012-13 to 2014-15.

    The ability to access and exchange large amounts of multimedia data is becoming increasingly important for the effective conduct of modern combat operations.

    This Project will enable Army and elements of the Air Force to replace ageing mobile communications infrastructure services and provide commanders with an increased level of situational awareness, command and control and information sharing capability.

    This equipment will greatly enhance Defence’s ability to use modern information technology to link sensors, weapon systems, commanders and personnel in a networked environment.

    Joint Project 2080 Phase 2B.1 – Funded Project Definition Study for Defence Personnel Systems Modernisation

    The Government has given approval for the Department of Defence to conduct pre-first pass analysis to investigate the costs and risks associated with streamlining and improving its human resources and payroll systems for military and civilian personnel.

    The Defence Personnel Systems Modernisation (DPSM) project is a major Defence project and critical part of the Strategic Reform Program. It will provide a single, unified human resources and payroll system.

    It is also expected to improve the administration of human resources and payroll within Defence and enable major reforms in key business support areas such personnel administration, career management, education and training, workforce planning and enterprise reporting. Some key benefits anticipated from the project include enhanced self-service capability and reporting, increased automation and greater supportability.

    Joint Project 2080 Phase 2B.1 is cost capped between $100 million and $500 million.

    Defence will now report to Government in Financial Year 2011-12 on its requirements and implementation options with a vital requirement being the integration of the military payroll capability into Defence’s core personnel management system, which is currently used to pay over 20 000 Defence civilian employees.

    -ends-

  6. #26

    Strategic Reform Program

    (Source: Australian Department of Defence; issued May 6, 2011)

    (Note: All monetary amounts are in Australian dollars)

    The Minister for Defence Stephen Smith and the Minister for Defence Materiel Jason Clare today announced additional Strategic Reform Program (SRP) initiatives and the first set of further accountability and procurement reforms for Defence.

    The reforms will enhance Defence management and improve the delivery of billions of dollars of investment in new capabilities being progressively rolled out under the Force 2030 plan as set out in the 2009 Defence White Paper.

    In line with the Strategic Reform Program, the Minister for Defence announced that additional Defence efficiency measures would be achieved by a reduction in Australian Public Service (APS) civilian staffing growth in Defence, and the savings effected here would contribute to the Government’s return to a Budget surplus and the Government’s broader fiscal strategy.

    APS Savings: Civilian Employees

    The SRP will deliver over $20 billion in savings to reinvest in the delivery of Force 2030. Early progress suggests that more can be done. In addition to the SRP measures already announced, the Government is announcing today a second phase of SRP-related savings to be realised primarily through further improvements to shared services design and implementation.

    The White Paper and the workforce and shared services stream of the SRP predicted a net increase in the Defence APS workforce of 1,655 from 2010-11 to 2013-14.

    Reforms to shared services and other efficiency measures means that Defence can reduce this overall forecast APS workforce growth by 1000 over the next three years.

    This includes the application of the Government’s increased efficiency dividend to Defence. Under this whole of Government measure, the efficiency dividend will rise from 1.25 per cent to 1.5 per cent in 2011-12 and 2012-13, before returning to 1.25 per cent for 2013-14 and 2014-15.

    Reducing the APS workforce growth will be achieved by natural attrition, not hiring new staff and, if required, some limited voluntary redundancies.

    Savings from these reductions to forecast APS growth will be returned to the Budget.

    There will be no reductions to the Australian Defence Force military workforce as a result of these changes.

    Given priority accorded to maintaining support to operations, improving Navy sustainment and enhancing capability development, the Joint Operations Command (JOC), the Navy and the Capability Development Group (CDG) will be exempt from these additional reductions to their forecast APS workforce.

    Further Shared Services Reform

    Defence will undertake further externally-led reform and rationalisation of shared services, both within Defence Groups, and across Defence as a whole. The intent is to realise workforce reductions in corporate overhead functions in a way that does not reduce standards of service in support of operations or capability development.

    This reform will be undertaken as part of the Strategic Reform Program, using its governance and oversight processes, including oversight by the independent Defence Strategic Reform Advisory Board chaired by Mr George Pappas.

    All Groups in Defence will be subject to this examination, with priority in those areas where the largest gains in effectiveness and efficiency are likely to occur. Planning will be completed by late July, with implementation to commence in August 2011.

    Project management accountability reforms

    Mr Smith and Mr Clare also released the first set of further accountability and procurement reforms.

    In February Minister Smith and Minister Clare foreshadowed they would bring forward a number of reforms to improve accountability in Defence and project management.

    This is the initial step in that process.

    It is essential that the agreed recommendations of Kinnaird and Mortimer are fully implemented and built upon.

    In 2003 the Kinnaird Report recommended a number of reforms which led to the two-pass approval system, the creation of the Capability Development Group and the Defence Materiel Organisation as a prescribed agency under the Financial Management and Accountability Act.

    Most of the Kinnaird reforms have been implemented and have had a positive impact.

    In 2008 the Mortimer Review into Defence Procurement and Sustainment made 46 recommendations. The Government agreed to 42 of them in full and three in part.

    Many of these recommendations have been implemented including increased investment in Defence industry skills and incorporation of improved commercial practices into Defence procurement.

    Some of the key recommendations have not yet been fully implemented.

    Defence will now accelerate the implementation of all outstanding agreed recommendations made by Mortimer as a matter of priority.

    This includes:
    -- project directives issued by the Secretary of the Department of Defence and the Chief of the Defence Force to ensure Defence acquisitions progress according to Government direction; and
    -- benchmarking all acquisition proposals against off-the-shelf options where available.

    In addition to this, the Government is today announcing a small number of reforms that build on the recommendations of Kinnaird and Mortimer.

    These reforms will focus on improving project management and minimising risk at project start and identifying problems early.

    They include:
    -- The introduction of a two-pass approval system for minor capital projects valued between $8 million and $20 million;
    -- Implementation of an Early Indicators and Warning system;
    -- The expansion of the Gate Review system; and
    -- The introduction of Quarterly Accountability Reports.

    Details of these reforms are attached [see below].

    Over the coming months the next stages of reform will include the Government’s response to the Black Review into Accountability and Governance in the Defence Department and the Government’s response to the Rizzo Review into the Maintenance of Naval Ships. (ends)

    Project Management Accountability Reforms

    (Source: Australian Department of Defence; issued May 6, 2011)

    Mortimer Reforms

    As a matter of priority Defence will accelerate the implementation of the agreed recommendations of the Mortimer Review that have not yet been fully implemented.

    These include:

    -- Cost-benefit analysis of projects that are not off-the-shelf purchases to rigorously review the project to assess the cost and risk against off-the-shelf purchases.

    -- Establishing Project Directives to provide clear direction to Defence on decisions made by the Government regarding Defence capabilities.

    -- Establishing an independent Project Performance Office within DMO to review projects and assist project teams to solve problems.

    -- Regular reporting to Government requiring Capability Managers to provide advice on the status of capability development projects for which they are accountable.

    -- Creating a more disciplined process for changing the scope of a project including the requirement that Defence seek the Government’s approval for significant changes to the scope of a project.

    The Government will also request the Auditor General conduct a planned audit of the implementation of the Mortimer Report in the second half of this year.

    Two-Pass approval for minor capital projects

    Defence will immediately implement a two-pass approval system for minor capital equipment projects valued between $8 million and $20 million.

    Minor capital projects are those valued at less than $20 million. Minor projects are not included in the Defence Capability Plan. They cover new equipment, modifications to existing equipment or enhancements to new equipment. In 2010-11, the planned budget for minor capital projects is around $150 million and there are about 105 minor capital projects underway.

    The two-pass approval system recommended by Kinnaird has been successful in improving the budget, schedule and capability delivery of major projects.

    Major projects which have been through the two-pass system demonstrate a 20 per cent to 25 per cent improvement to their schedule when compared to those that did not.

    This same rigour will now be applied to minor capital projects.

    These projects will now involve a formal business case for two-stage approval by the Minister for Defence.

    Second pass approval for minor capital projects will require Defence to provide the Minister with tender quality data upon which to base decisions.

    Early Indicators and Warning System

    Defence assesses that 80 per cent of problems with Defence capability projects occur in the first 20 per cent of the project’s life.

    That is why it is important to pick up problems early.

    One of the biggest challenges in Defence procurement is projects running late. The earlier these issues are picked up, the earlier the problem can be fixed.

    The Government will implement an Early Indicators and Warning System. This system will help identify and correct potential problems with projects.

    A set of triggers will be established to give early warning of projects which are running late, over-budget or not delivering the capability required.

    The Government expects that a substantial number of projects may activate the triggers. The purpose of the system is to identify problems early so appropriate action can be taken to remediate them.

    The Minister for Defence, the Minister for Defence Materiel, the Secretary of Defence and the Chief of the Defence Force will be advised when these triggers are activated.

    When a trigger is activated Defence will conduct an internal review of the project and recommend whether a full diagnostic examination (a Gate Review) is required and should be conducted.

    The initial triggers for each project stage are set out below. These will be adjusted or added to as the system matures.

    Post-first pass triggers:

    Triggers will be activated if it is assessed that:
    -- the project is likely to go outside a parameter agreed by Government at First Pass, as reflected in the respective Project Directive by the CDF and Secretary;
    -- a significant milestone will not be achieved within three months of the schedule approved by Government at First Pass; or
    -- the project cannot meet the essential requirements within the cost, schedule and risk levels approved by Government at First Pass.

    Post-second pass triggers:

    Triggers will be activated if it is assessed that:


    -- the schedule for meeting Initial or Final Operational capability will be delayed by 10 per cent or more for off-the-shelf capability, 20 per cent or more for local adaptation of off-the-shelf capability and 30 per cent or more for developmental projects.
    -- the project’s costs will exceed its approved budget;
    -- the contractor is not meeting promised capability or schedule milestones or exceeding approved costs;
    -- policy or legislative changes are likely to increase the project’s schedule or cost;
    -- an essential capability requirement will not be met;
    -- emerging requirements or regulatory or safety standards are different to those at the time the project was approved by Government and will materially affect the project;
    -- industry engaged in the project does not have the required workforce or financial capacity or management commitment to meet critical project milestones; or
    -- project risks have increased beyond the parameters agreed by Government.

    The Defence Annual Report will publish details of the action taken on projects as a result of an early warning indicator being triggered.

    Full Diagnostic Reviews

    As foreshadowed in the 2009/10 Defence Annual Report and the 2009/10 Australian National Audit Office Major Projects report, Defence will expand the use of the full diagnostic review of projects, known as Gate Reviews.

    Gate Reviews commenced in 2009 for selected high value and highly complex projects and have proven very effective in the early identification and resolution of problems.

    All major projects managed by the Defence Materiel Organisation will now undergo at least one Gate Review per year.

    Gate Reviews will also be extended to other areas of Defence including Chief Information Officer Group and Defence Support Group.

    These reviews will normally be linked to a key project decision point or milestone.

    Reviews will also be conducted in cases where the Government or Defence have concerns, or where a project’s early indicator or warning is triggered.

    A Project Manager will also be able to request a Gate Review to enlist senior management assistance to resolve significant issues.

    A Gate Review Board will be convened for each review.

    A number of independent experts will be contracted to provide advice to these reviews.

    Quarterly Accountability Reports
    There is a need for more regular and rigorous reporting to Government on high priority projects.

    Accordingly, there will be a quarterly report to the Minister for Defence, the Minister for Defence Materiel, the Secretary of the Department of Defence and the Chief of the Defence Force on designated key projects.

    The report on each such project will be formally signed off by the Chief Financial Officer, the Chief Executive Officer of the Defence Materiel Organisation, the Chief of the Capability Development Group and the relevant capability manager, generally the relevant Service Chief.

    This will help improve accountability and pick up problems early. This will alert senior Defence officials and Government to problems in projects so that an appropriate remediation plan can be developed early and acted on.

    Reports of this nature are consistent with both the Kinnaird and Mortimer Reviews and will now be implemented.

    Such reporting will begin at the next quarter, 1 July 2011, with the first such reports delivered in October.

    -ends-

  7. #27

    Defence to Cut 1,000 Civilian Jobs

    (Source: Australian Strategic Policy Institute; issued May 6, 2011)

    1000 civilian jobs are expected to be cut from the Defence Department in the budget as the government attempts to save another $60 million a year. (AAP)

    1000 civilian jobs are expected to be cut from the Defence Department in the budget as the government attempts to save another $300 million.

    News Ltd says military jobs will not be affected, and the government hopes a broad staff freeze and natural attrition will mean only small numbers of voluntary redundancies are needed to meet the target by 2013/14.

    After recent record funding, Defence can expect to do it tough in this year's budget as the government moves to return to surplus by 2012/13 as promised.

    The defence budget reached a record $26.8 billion in 2010/11 - an increase 3.6 per cent in real terms - but one leading analyst believes the headline defence budget figure for 2011/12 could be smaller.

    Australian Strategic Policy Institute budget analyst Dr Mark Thomson said that would be influenced by the government's overall fiscal situation, with Treasurer Wayne Swan declaring it would be very tight with everyone needing to play a part.

    "We can at least expect defence to make some additional token contribution to balancing the books," Dr Thomson said.

    "The combined effect of the deferrals (of capital equipment spending), probably a bit less money spent on Afghanistan and the savings on foreign exchange movements I think will mean they will probably spend less money next year than they did this year."

    Defence Minister Stephen Smith said returning the budget to surplus was the government's highest priority.

    Mr Smith would not be drawn on budget speculation but gave an assurance that troops would continue to be appropriately resourced in all operational commitments in Afghanistan, East Timor and the Solomon Islands.

    "We are looking at defence to make a contribution to our budget outcomes, consistent with our Strategic Reform Program (SRP) approach which sees $20 billion worth of efficiency savings over the next period," he said.

    In the 2009 White Paper, defence was promised three per cent real growth out to 2017/18 and 2.2 per cent until 2030, along with indexation of 2.5 per cent for the entire period.

    But the government can average that out, spending more in some years and less in others. As well defence hasn't managed to spend all its capital equipment budget in recent years, with significant spending deferred to around mid-decade.

    The SRP was the big stick to the White Paper carrots, requiring defence to reform its processes and come up with big savings, on the principle that government generosity could not continue indefinitely.

    The upcoming budget is likely to feature a report card on SRP progress.

    It's been suggested Australia could save big money by deferring purchase of the new Lockheed Martin Joint Strike Fighter, a program worth around $16 billion.

    But the priority is to get the budget into surplus in 2012/13, whereas major JSF spending won't start until mid-decade.

    There is considerable logic in buying some equipment now and taking advantage of the strong Australian dollar.

    On that basis the fifth $US200 million C-17 Globemaster aircraft costs a third less than in 2006 when Australia first ordered four and the Aussie dollar was worth around 77 US cents.

    This is a saving for the government, not defence, under longstanding "no loss no gain" arrangements with the finance department.

    -ends-

  8. #28

    Seems like an AWFUL lot more paperwork lies in ADF's future. Where did the idea come from that the way to deal with complex issues, is to add yet another layer of complexity on top of the old?

  9. #29

    I have no comment to make about a chunk of this as I could truly launch into gross obscenity...........like watching imbeciles trying to do what they think is brain surgery when what is needed is a brick-layer.

  10. #30

    Funny that a number of reviews instigated by the government are (at the moment anyway) are finding that a big driver of many problems is a lack of people...

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