Land Systems Division
Capability Acquisition and Sustainment Group
The Road to Reform and Opportunities for Industry
Major General David Coghlan
Head Land Systems
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Scope
• New Government Policy and Defence Reform
• CASG’s Reform Journey
• Land Systems Division
– What we do
– Our current priorities
– Industry opportunities
– Reform and innovation initiatives
• Open forum
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First Principles Review
• The First Principles Review
provided a clear strategy for
reintegration of the acquisition
and sustainment functions into
the Department of Defence.
• A key recommendation was the
abolition of the independent
Defence Materiel Organisation
and the creation of the Capability
Acquisition and Sustainment
Group within the Defence
Department .
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2016 Defence White Paper
•
Released 25 February 2016
•
White paper – explains how the
Australian Government is investing in
Australia’s defence capabilities.
– Increase in the Defence budget
from $32.4 billion in FY2016-17
to $58.7 billion in FY2025-26
– Approximately $195 billion will
be invested in our capabilities
over the decade to 2025-26 in all
aspects of Defence capability, a
significant proportion of which will
be spent in Australia
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Defence Industry Policy Statement
Four key components:
•Delivering Defence capability through a more focussed and
coordinated relationship between Defence and industry
•A new approach to innovation by streamlining engagement
with industry and academia
•Driving competitiveness and export potential. Maximise
opportunities for competitive Australian businesses, build export
potential, depth of skills and diversification for Australian
defence industry
•Cutting red tape. Streamline tendering and contracting
procedures, rationalise industry programs and make it simpler
and less costly for industry to support Defence
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Integrated Investment Program
•
For the first time, includes all
Defence‐related investments.
– 20‐year outlook, with greater
detail on first 10 years.
•
Annual updates released with the
Defence budget from 2017‐18.
•
Builds consistency and
predictability for Defence and
industry.
– Defence will work closely with
industry to inform industry
planning.
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Capability Acquisition and Sustainment Group
The Capability Acquisition and Sustainment
Group (CASG) seeks to partner with industry
to deliver Defence capability
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CASG – Key goals
The CASG business plan 2015-17 provides guidance on how CASG
partners with industry to deliver Defence capability.
Five Key goals to get us there
•
Reform, implement and embed the First Principles Review
recommendations
•
Improve our relationship with our owners (Government) and customers
(Capability Managers)
•
Improve our strategic level partnerships with industry
•
Achieve full cost and performance transparency of our projects and
operations
•
Develop, support and professionalise our people
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Improving the way we work with industry
• An increased role for industry in the delivery of
Defence capability outcomes will require CASG to
enhance its supplier management capability.
• Industry Intelligence and portfolio management of
major industry suppliers
– New capability to manage across the CASG and remove
sub-optimisation from management within ‘silos’:
– Tiered ‘account management’ equivalent for Primes
– Better leveraging of Primes across domains
– Industry intelligence and
– Market and supply chain awareness
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Principles for CASG operation
•
What is a Smart Buyer approach?
– Seeks to provide the best possible outcome for CASG’s customers,
appropriate financial returns for our suppliers, and value for money
outcomes for the taxpayer. In practice this means • Engaging with industry earlier
• Consolidating our approach to procurements
– Possibly more prime contracts that are responsible for acquisition
and sustainment by handing over some functions to industry where
appropriate
– CASG will ensure our business structure and processes streamline the way
we do business
• We are keen to reduce the cost burden to you and therefore ourselves
• We are keen to hear your opinions on how we can help and what we
can do to make thing better
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Land Systems Division - Structure
Land Systems Division (LSD)
acquires and sustains land
materiel for the Australian
Defence Force.
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Land Systems Division - Structure
Land Systems Division (LSD) acquires and sustains land
materiel for the Australian Defence Force.
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Integrated Soldier Systems
Integrated Soldier Systems Branch (ISSB) comprises five SPOs responsible for:
•
Armaments – Small Arms and Direct Fire Support Weapons
•
ADF clothing – Combat and Non-Combat
•
Soldier Modernisation – Body Armour, Load Carriage, Field Equipment, Chemical Biological
Radiological and Nuclear Defence, Aerial Delivery Equipment
•
Health Systems – Pharmaceuticals, Medical and Dental Equipment, Combat Rations
•
Diggerworks – Future Soldier Systems Development, Configuration and Integration
Key Projects
•
Land 40 Phase 2
Direct Fire Support Weapons
•
Land 53 Phase 1BR
NINOX Night Fighting Equipment - Technology Refresh
•
Land 125 Phase 3C
Soldier Systems Integration – Lethality
•
Land 125 Phase 3B
Soldier Enhancement – Survivability
•
Land 125 Phase 4
Soldier Systems Integration – version 3
•
Land 2110 Phase 1B
Chemical, Biological, Radiological and Nuclear Defence
•
Land 3025 Phase 1
Deployable Incident Response Regiment Capability
•
Land 3025 Phase 2
Deployable Incident Response Regiment Capability
•
JP 2060 Phase 3
Deployable Health
•
Land 125 Phase 4
Integrated Soldier Systems
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ISSB Industry Engagement
Initiatives
•
•
•
Defence Industry Forums
Prime Vendors
• Non Combat Clothing
• Health Pharmaceuticals
• Health Medical / Dental Consumables
• Ration Packs
• Armaments
• Future – Soldier Combat Ensemble /
CBRN / Deployable Health
Adaptive Acquisition
Key Messages
•
•
•
•
•
Early Engagement of Industry
Transparency in the way we work
Educate and then work with Industry
Performance Based Contracting
• Guarantee Cash flow
• Enduring contracts extension
Significant Media / Ministerial Scrutiny
Challenges
•
•
•
Large Number of Small to Medium Enterprises
Industry Capacity and Capability
Number of Industry Supply Agents
representing Overseas OEM
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ISSB Future Outlook and Opportunities
•
•
•
•
Small Arms Target RFT (Tranche 2) – to be released Q3 2018.
Polymer Weapon for Land 125 Phase 3C RFT – to be released Q3 2016.
Field Equipment
• Multi-tool – Army reviewing requirement – Open tender Dec 2016
• Duffle Bags – Army reviewing requirement – Open tender Oct 2016
Face Paint, Camouflage – Mar / Apr 2016
• Procurement of Medical & Dental Equipment – seeking a Prime Vendor
– Open tender Sep 16
Combat Ration Packs – seeking Prime Vendor – Open tender Q3 2016
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Land Vehicle Systems
Land Vehicle Systems Branch is responsible for sustaining Defence’s
general service vehicles (green fleet) and commercial vehicles (white
fleet) and acquiring and delivering the next generation of field vehicles,
modules and trailers to the ADF under the multi-phased program
LAND 121 (Overlander).
Key Projects
•
LAND 121 Phase 3A
Lightweight and Light Vehicles and Trailers
•
LAND 121 Phase 3B
Medium and Heavy Vehicles and Trailers
•
LAND 121 Phase 4
Protected Mobility Vehicles – Light
•
LAND 121 Phase 5B
Medium and Heavy Vehicles and Trailers
•
JP157 Phase 1
National Support Base Aviation Refuelling Vehicles
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LVSB Industry Engagement
Initiatives
•
•
•
Use of Whole of Australian
Government (WoAG) agreements for
‘Smart Buying’ of commercial vehicles.
Consolidation of many small standingoffer contracts for similar products
(e.g. tyres)
Increased use of OEMs for key
equipment support through strategic
agreements
Challenges
•
•
•
Key Messages
•
•
•
WoAG procurement saves time
and money
Industry best-practice
innovations are to be thoroughly
explored – performance-based
contracting
Industry should be involved early
in project and contract
management
Ageing fleets need to be sustained
until new capability arrives
Various integrated logistics support
models need to be standardised
Smart Sustainment initiatives continue
to be implemented
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LVSB Future Outlook and Opportunities
•
LVSB encourages small/medium enterprises to engage directly with the prime contractors
that support our acquisition projects and legacy vehicle and trailer fleets.
•
For example:
– Rheinmetall MAN Military Vehicles Australia (LAND 121 Phase 3B) is establishing a
Global Supply Chain agreement to enhance Australian subcontractor engagement
– Thales Australia (LAND 121 Phase 4) is still finalising its supplier arrangements.
•
Other opportunities may include:
– Patrol Motor Cycle (PMC) - quantity 60
• Defence is currently reviewing its requirement.
• Timing for the Approach To Market is yet to be confirmed (estimated for FY16/17)
– Deployable All Terrain Vehicles (ATV) – quantity 184
• 6x6 variant –quantity 142; and 4x4 variant – quantity 42.
• Defence is currently reviewing its requirement.
• Timing for the Approach To Market is yet to be confirmed (estimated for FY19/20).
• All Terrain Vehicles
• Trailers
• Quantity 20 to transport the ATV
• Quantity 50 to carry stores behind the ATV
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Land Manoeuvre Systems
Land Manoeuvre Systems Branch (LMSB) comprises four SPOs responsible for:
•
Mounted Combat
•
Combat Support Vehicles
•
Combat Support
•
General Support
Key Projects
•
LAND 19 Phase 7A
C-RAM
•
LAND 116 Phase 3
Bushranger
•
LAND 17 Phase 1C1
Additional Lightweight Towed Howitzers
•
LAND 136 Phase 1
Land Force Mortar Replacement
•
LAND 907 Phase 1
Main Battle Tank Replacement
•
LAND 998 Phase 1
Replacement Aviation Fire Trucks
•
LAND 155 Phase 1
Enhanced Gap Crossing Capability
•
JP 2097 Phase 1B
Enhancements to Special Operations
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LMSB Industry Engagement
Initiatives
•
•
•
•
•
PMV Modernisation/Baseline:
• Vehicle kits
• Armour
• APU
• RWS
Commodity Reform Program
Managing Contractor – LAND 155
Performance Based Contract – PMV
Life of Type Management Planning for A Vehicles
Challenges
•
•
•
•
Key Messages
•
•
•
Close collaboration with key
industry partners
Listen to Industry and
incorporate their feedback.
Performance Based
Contracting:
• Guarantee cash flow
• Value enduring contracts
extension
Breadth of materiel:
• Platforms/systems/commodities
Ageing Fleets
First Principles Review Transformation
Digitisation for Indirect Fires and Platform
integration
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LMSB Future Outlook and Opportunities
•On Pavement Forklifts lease - Engagement with SG Fleet (Whole of Government leasing
contract).
•CA05 - Ground Surveillance Radar. Possible contract for support and heavy grade repair
(Q2/3 2016).
•L19 Phase 7B Short Range Ground Based Air Defence - Acquisition strategy to be
finalised. Potential for Prime Systems Integrator and materiel supplies.
•Land 8120 Engineer Support Platforms (IIP) – Scope being developed in conjunction with
Army – potential for fleet management services and individual equipment procurement.
•Land 8140 Phase 1 Deployable Force Infrastructure (IIP) – Scope being developed in
conjunction with Army – potential for single delivery manager or a range of field products
to be sourced.
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COMBINED
ARMS FIGHTING SYSTEM
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Combined Arms Fighting System
Combined Arms Fighting System (CAFS) manages LAND 400
•
LAND 400 will acquire the armoured fighting vehicles systems to deliver the
mounted close combat capability to the Land Force.
LAND 400 – Land Combat Vehicle System
•
Phase 1:
Project Scoping Study (complete)
•
Phase 2:
Mounted Combat Reconnaissance Capability
(ASLAV replacement)
•
Phase 3:
Mounted Close Combat Capability
(M113 replacement)
•
Phase 4:
Integrated Training System
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CAFS Future Outlook and Opportunities
•
Phase 2:
• BAES AMV and Rheinmetall Boxer have been selected for
evaluation in the Phase 2 Risk Mitigation Activity.
• Risk Mitigation Activities (2016-2017) comprising:
• Test and Evaluation Activities
• Improvement of AIC opportunities
• Cost/Capability tradeoff analysis
• Government Second Pass Consideration (2018)
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CAFS Future Outlook and Opportunities
•
Phase 3:
• RFI evaluation complete (debrief opportunities during Land
Forces 2016)
• Program Timeframe of 2019-2032
•
Phase 4. The 2016 IIP identifies:
• Program Timeframe of 2023-2032
• Architecture / framework being established in 2016
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CAFS Industry Engagement
Initiatives
•
LAND 400 Industry Portal, regular Industry briefings
through a wide range of forums (ASPI, Land
Environment Working Group etc).
•
Dedicated website for direct communication.
•
Engagement with Industry bodies (AIDN, ICN) and
State Government Industry bodies.
•
Independent review of Phase 2 RMA AII activities.
•
Deloitte
– ‘Strong and clear alignment’
Key Messages
•
L400-2 RFT progressing – Stage
2 Risk Mitigation Activities (RMA)
commenced 18 Aug 16.
•
Listening to Industry and
incorporating their feedback.
•
Fairness and openness with
Industry.
•
Early engagement - tell Industry
what is going on in a timely
manner.
•
Deloitte Review of RMA AII
activities publicly released by
MDIND on 28 Jul 16.
•
Australian Industry showcase
opportunities planned for Q4
2016.
– RMA enhancements
•
AIC Roadmap has been delivered by BAES and
Rheinmetall.
Challenges
•
Optimising Australian Industry involvement.
•
Managing expectations in a fluid/changing
environment.
•
Balancing Industry and Government / Defence
expectations.
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CAFS Australian Industry Involvement
•
•
•
Deloitte Australia completed Review on 30 June 2017 and found clear
alignment with Government policy direction.
Recommendations from Review:
– Costed options for differing levels of Australian industry participation.
– Develop an Opportunity Roadmap for Australian Industry (Q4 2016).
– Defence facilitated workshops in all states for Australian industry to
showcase their capabilities (Q4 2016).
– Scope options for placement of Australian university technical
graduates.
RMA Contract changes for both shortlisted tenderers:
– Contractual obligations to deliver the four recommendations above.
– AIC Plans to include MOUs between the tenderer and Australian
industry subcontractors.
– Obligation to establish Design Authority Function in Australia.
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Land Engineering Agency
LEA’s primary role is to provide engineering resources
and capability to support project and sustainment
activities within the System Program Offices (SPOs) of
Land Systems Division.
LEA does this by providing systems, processes and
physical capability to ensure compliance with the Army
Technical Regulatory Framework
to ensure that equipment is:
• Fit for service
• Safe to operate
• Environmentally compliant
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Land Engineering Agency
At a glance:
•
‘Outposted’ model – Direct support to Projects & Sustainment in
LSD Branches
•
7 Directorates – (~153 core staff & ~340 outposted) - Includes
248 engineers and 245 technical staff
•
Providing engineering capabilities
– Design
– Testing
– Prototyping
– Configuration Management
– Drafting
– Specialist Engineering
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Directorate Systems Engineering and Integration (DSEI)
•
Directorate
Engineering
(DSEI)
DSEI provides wide
ranging Systems
engineering
supportand
to Integration
LSD System
Program Offices in niche technologies and capabilities that are more
efficiently delivered from a centralised model.
•
DSEI provides services across LSD in Configuration Management,
Drafting and Specialist Engineering including Safety, Integration,
Reliability and Maintainability, Survivability, Electronic Warfare and
Communications.
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Directorate Systems Engineering and Integration (DSEI)
Optics
Electrical
Power
Software
Survivability
Electronics/
Communications/
EW
Engineering
Analysis/Simulation
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Mobility
Weapons/Lethality
Configuration
Management
Human
Factors
RAM
3D
Modelling
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DSEI – Electromagnetic Modelling
RADHAZ
ANTENNA CO‐SITE ANALYSIS
EMI / EMC
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ANTENNA PERFORMANCE
ANTENNA PLACEMENT OPTIMISATION
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DSEI – Survivability, Mine Blast & Ballistic Modelling & Testing
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Directorate of Prototype and Test Services (DPTS)
Land Engineering Agency Test Capability LEA Proving Ground Monegeetta
•
The test capability includes vehicle performance and
endurance testing, Electromagnetic Interference and
Compatibility, Electro-Optics and Thermal Imaging Testing,
Climatic Testing, Mechanical testing, Weapons testing, Field
Data Acquisition and High Speed Video in support of blast
testing.
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Electronics & Communications Laboratory
Communications & Interoperability Testing
Electro Optics & Thermal Imaging
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Mechanical & Environmental Laboratory
Climatic Testing
Heavy Vibration Facility
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Data Acquisition & Analysis Laboratory
Enclosed Light Armaments Facility
Data Acquisition & Analysis
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Automotive Performance Laboratory
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LSD Initiatives
•Aerial Delivery Equipment & Adventure Training Equipment Prime Vendor
•L125 Phase3B Soldier Combat Ensemble Prime Vendor
•Contract Reform: Night Fighting Equipment Management
•Pharmaceuticals and Medical & Dental Consumables Prime Vendor
•Combat Rations Prime Vendor
•Prototype Engineering Centre relocation
•C and D Vehicle Fleet Rationalisation and Contracted Management
•Commodity Reform Program
•LAND 155 Enhanced GAP Crossing Managing Contractor
•Extended PMV and ASLAV / Tank Contracted Management Activities
•Deliver JP157 through a Managed Contractor model
•Engagement of Integrated Support Contractor for ILS
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Summary
• As part of Defence and CASG’s reform journey, LSD is
changing.
• In partnership with Industry we seek to fully implement a Smart
Buyer approach.
• We are already a Smart Buyer in many ways. However, we
can get better and need your help in doing so – your feedback
is essential.
david.coghlan@defence.gov.au
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Questions
Land System Division contacts:
• MAJGEN Coghlan – david.coghlan@defence.gov.au
•
•
•
•
•
DGCAFS BRIG McGlone - gregory.mcglone1@defence.gov.au
DGISS BRIG Welsh - simon.welsh@defence.gov.au
DGLVS BRIG Kohl - haydn.kohl@defence.gov.au
A/DGLMS Mr Lumley - robert.lumley@defence.gov.au
A/ASLE Mr Aitken - shane.aitken@defence.gov.au
• Office of HLS – CASG.HLSOffice@defence.gov.au
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