Dave McGahey, Defence Logistics Transformation Program - The Defence Logistics Transformation...
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Transcript of Dave McGahey, Defence Logistics Transformation Program - The Defence Logistics Transformation...
JOINT LOGISTICS COMMAND
Northern Australia Defence Summit
Presentation by Mr David McGahey
Program Director
Defence Logistics Transformation Program
30 Oct 13
JOINT LOGISTICS COMMAND Defence Logistics Reform: Logistics to train, fight and win
Objective
Defence Logistics Transformation Project:
• How will it more effectively and efficiently deliver
support to the Australian Defence Force in
northern Australia
• Joint Logistics working smarter
• Build on NT Defence and Industry relationship
2
JOINT LOGISTICS COMMAND Defence Logistics Reform: Logistics to train, fight and win 3
Program Overview
DLTP is focused on transforming the Defence logistics network via:
A new business service delivery model leveraging commercial ‘better
practices’ adapted for Defence’s unique operating environment
Two new national performance based logistics service contracts
Collaborative service delivery and improved service levels
Over $750 million of purpose built infrastructure, rationalising 24 sites to
7 primary sites (including in regional areas)
New technologies and systems
Significant training and reskilling of the workforce
The Defence Logistics Program (DLTP) is a once in a generation
opportunity to transform the provision of logistics services to support
the 2030 vision for the Australian Defence Force and realise
Strategic Reform Program (SRP) mandated savings.
JOINT LOGISTICS COMMAND Defence Logistics Reform: Logistics to train, fight and win
Logistics – ‘To-Be’ Business Model
4
Defence logistics services to be delivered under
two national based contracts:
• Warehousing and Distribution (W&D)
• Land Materiel Maintenance (LMM)
Defence leading the planning and managing
of maintenance, warehousing and
distribution – supported by contracted
technical and specialist workforce
Leverages commercial capability to support
operational logistics service delivery
requirements through ‘collaborative innovation’
At the JLU level, service provider staff will be
responsible for performance to the
Commanding Officer against agreed measures
and KPIs
Greater focus on regional logistics capability
Main
ten
ance
Service Delivery
Ma
inte
na
nc
e
Warehousing and
Distribution
Contractor
Wa
reh
ou
sin
g
Dis
trib
uti
on
Supply Chain
Branch (SCB)
Joint Logistics
Units (JLU)
CJLOG
Inter-dependent
Services & Support
Maint.
Service
Provider
Maint.
Contractor
JOINT LOGISTICS COMMAND Defence Logistics Reform: Logistics to train, fight and win
COLLABORATIVE INNOVATION
5
Tenderers were invited to provide their approach in an RFT which covers:
Innovation and continuous improvements of the logistics system, such
that levels of service are maintained or improved, while the total cost
to serve is lowered over time;
Bring commercial logistics experience, knowledge and input, as it is a
key driver to bring innovation into the operation of the logistics network;
Work collaboratively with Defence to identify, implement, measure and
sustain any improvements; and
Share knowledge to develop Commonwealth’s capacity to manage the
delivery of logistics services.
‘Collaborative Innovation’ is a culture that embraces
innovation and continuous improvement in the management
of the transformed Defence logistics network.
JOINT LOGISTICS COMMAND Defence Logistics Reform: Logistics to train, fight and win
Infrastructure
6
Infrastructure investment:
Over $750m of construction works
3 greenfield sites (includes Darwin),
5 redevelopments
Construction started 12 Dec 12
Construction is planned to complete
Nov 16
Robertson Barracks
May 13 – Dec 14 Lavarack Barracks
Mar 14 – Nov 16
RAAF Base Amberley
Apr 13 – Feb 15
DNSDC, Moorebank
Dec 12 – Oct 14
Bandiana
Jun 14 – Jul 15
RAAF Base
Edinburgh
Nov 13 – Mar 15
HMAS Stirling
and Guildford
Jul 14 – Jul 15
Proposed General Storage Warehouse at Joint Logistics Unit (North), Robertson Barracks
Over $750m in Infrastructure investment will ensure that the Joint
Logistic Command’s warehousing, distribution and maintenance
services for the future will be delivered in modern purpose built
wholesale logistics facilities.
JOINT LOGISTICS COMMAND Defence Logistics Reform: Logistics to train, fight and win
Transition & Site Migration
7
J
Logistics
Services
Program
Phase
Phase 2 - Logistics Services Transition
LMM Services Transition Period
2015
J
2013 2014
A S O N D J F M A M J J A S O N D J F
Facilities
Stock
Migration
ICT
Stock Migration Period
WMS Implementation
Facilities Delivery
Phase 3 - Site Migration
DLT
PN
etw
ork
En
ab
ler
LMM ContractorTransition
M A
W&D Services Transition Period
W&D ContractorTransition
Land Material Maintenance (LMM)
Transfield Services Australia is the ADFs
new LMM services contracting partner
LMM Transition is now complete with all
sites now working to the new business
model
Currently ‘bedding in’ new processes prior to
site migration
Site migration planning currently underway
Warehouse and Distribution (W&D):
The evaluation phase of the W&D Services
Request for Tender (RFT) is now complete.
Commercial-In-Confidence negotiations with
the preferred tenderer for the W&D Services
contract has commenced.
It is anticipated that transition to the new
contract will commence by 30 June 2014.
Site migration planning currently underway
JOINT LOGISTICS COMMAND Defence Logistics Reform: Logistics to train, fight and win
Achievements to date
Significant achievements under DLTP to date include:
Defence endorsement for the proposed Logistics Services Business
Model and consultation with the JLC workforce;
The release and evaluation of two Requests for Tender for Logistics
Services in June 2012 and separate Ministerial approval to proceed
with the procurement of logistics services;
Signing of the Land Materiel Maintenance Contract with Transfield
Services (Australia) in May 2013, with the new Contract
commencing in July 2013;
Government approvals for infrastructure and transition investment
funding;
Finalisation of over $750m in Infrastructure contracts, with
construction underway or due to commence at all sites; and
Preferred tenderer for Warehouse & Distribution has been selected
and now entering contract negotiations.
8
JOINT LOGISTICS COMMAND Defence Logistics Reform: Logistics to train, fight and win 9
JLU(N)
Robertson
Benefits for Northern Australia
Benefits DLTP reforms will provide to Northern
Australia include:
Mounting joint forces to deploy and return
through Darwin by sea and air
Darwin one of two primary mounting or staging
points (Darwin and Townsville) for any new
operation into SE Asia / SW Pacific for disaster
relief operations
Modern, co-located, efficient, commercial and
purpose built facilities at Robertson Barracks –
increase in scale and fitness for purpose
Genuine base logistics infrastructure in the
North to directly support manoeuvre brigade
and visiting units
Full integration with the local / regional support
infrastructure
JOINT LOGISTICS COMMAND Defence Logistics Reform: Logistics to train, fight and win
Investment in modern, commercial and
purpose built facilities at Robertson Barracks
10
Key Works Package stats:
1,215 personnel employed (directly
and indirectly), estimated to
contribute around $127m to the
Gross Regional Product in the
Darwin region at the peak of
construction
Initial construction contract value:
$113m
Construction: May 13 – Dec 14
Project Manager – SKM
Design Consultant – Trapp
Architects
Head Contractor – John Holland
General Store
JOINT LOGISTICS COMMAND Defence Logistics Reform: Logistics to train, fight and win
Infrastructure progress at JLU (N)
11
Works Package 4 (JLU-N Darwin) – Construction started in May 2013.
Approximately 10% complete as at mid Oct.
SOD Turning on 13 June 2013
Loan and Repair Warehouse Western Access Road
JOINT LOGISTICS COMMAND Defence Logistics Reform: Logistics to train, fight and win
Defence needs support from local
industry and infrastructure
Need industry support to achieve:
– Equipment Maintenance and Distribution
– Infrastructure Construction
Defence Outcome:
– Mounting joint forces to deploy and return through
Darwin by sea and air
– Darwin is one of two primary mounting or staging
points (Darwin and Townsville) for any new operation
into SE Asia / SW Pacific for disaster relief operations
JOINT LOGISTICS COMMAND Defence Logistics Reform: Logistics to train, fight and win
Way Forward
• Site migration of Joint Logistics Unit (North) from multiple Darwin sites to
Robertson Barracks - fully operating concept 1st QTR 2015
13
JOINT LOGISTICS COMMAND Defence Logistics Reform: Logistics to train, fight and win Defence Logistics Reform: Logistics to train, fight and win
JOINT LOGISTICS COMMAND Defence Logistics Reform: Logistics to train, fight and win Defence Logistics Reform: Logistics to train, fight and win 15
CONCLUSION AND
QUESTIONS