Northern Australia Defence Summit
Presentation by Mr David McGahey
Program Director
Defence Logistics Transformation Progr...
Objective
Defence Logistics Transformation Project:

• How will it more effectively and efficiently deliver
support to the...
Program Overview
The Defence Logistics Program (DLTP) is a once in a generation
opportunity to transform the provision of ...
Logistics – ‘To-Be’ Business Model
 Defence logistics services to be delivered under
two national based contracts:

CJLOG...
COLLABORATIVE INNOVATION
‘Collaborative Innovation’ is a culture that embraces
innovation and continuous improvement in th...
Infrastructure
Over $750m in Infrastructure investment will ensure that the Joint
Logistic Command’s warehousing, distribu...
Transition & Site Migration
2014

2013
J

DLTP

Program
Phase

J

A

S

O

N

D

J

F

M

A

M

J

J

2015
A

S

O

N

D

...
Achievements to date
Significant achievements under DLTP to date include:
 Defence endorsement for the proposed Logistics...
Benefits for Northern Australia
Benefits DLTP reforms will provide to Northern
Australia include:

JLU(N)
Robertson

 Mou...
Investment in modern, commercial and
purpose built facilities at Robertson Barracks
Key Works Package stats:
1,215 person...
Infrastructure progress at JLU (N)
 Works Package 4 (JLU-N Darwin) – Construction started in May 2013.
Approximately 10% ...
Defence needs support from local
industry and infrastructure
Need industry support to achieve:
– Equipment Maintenance and...
Way Forward
•

Site migration of Joint Logistics Unit (North) from multiple Darwin sites to
Robertson Barracks - fully ope...
Defence Logistics Reform: Logistics to train, fight and win

JOINT LOGISTICS COMMAND
CONCLUSION AND
QUESTIONS

Defence Logistics Reform: Logistics to train, fight and win

15
JOINT LOGISTICS COMMAND
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Dave McGahey, Defence Logistics Transformation Program - The Defence Logistics Transformation Program and its impact in northern Australia

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Dave McGahey, Project Director, Defence Logistics Transformation Program delivered this presentation at the inaugural Northern Australia Defence Summit. Bringing together key figures from the NT Government, senior military figures, and senior industry representatives, this conference is all about the continuing development and support of Defence in the Top End.

For more information, visit http://www.admevents.com.au/northaudefence

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Dave McGahey, Defence Logistics Transformation Program - The Defence Logistics Transformation Program and its impact in northern Australia

  1. 1. Northern Australia Defence Summit Presentation by Mr David McGahey Program Director Defence Logistics Transformation Program 30 Oct 13 JOINT LOGISTICS COMMAND
  2. 2. 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 Defence Logistics Reform: Logistics to train, fight and win JOINT LOGISTICS COMMAND 2
  3. 3. Program Overview 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. 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 Defence Logistics Reform: Logistics to train, fight and win JOINT LOGISTICS COMMAND 3
  4. 4. Logistics – ‘To-Be’ Business Model  Defence logistics services to be delivered under two national based contracts: CJLOG • • Supply Chain Branch (SCB) Joint Logistics Units (JLU) Service Delivery Distribution Warehousing and Distribution Contractor Warehousing Maintenance Maintenance Maint. Maint. Service Contractor Provider Inter-dependent Services & Support 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 Defence Logistics Reform: Logistics to train, fight and win JOINT LOGISTICS COMMAND 4
  5. 5. COLLABORATIVE INNOVATION ‘Collaborative Innovation’ is a culture that embraces innovation and continuous improvement in the management of the transformed Defence logistics network. 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. Defence Logistics Reform: Logistics to train, fight and win JOINT LOGISTICS COMMAND 5
  6. 6. Infrastructure 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. Robertson Barracks May 13 – Dec 14 Infrastructure investment: Lavarack Barracks Mar 14 – Nov 16 Over $750m of construction works RAAF Base Amberley Apr 13 – Feb 15 DNSDC, Moorebank Dec 12 – Oct 14 HMAS Stirling and Guildford Jul 14 – Jul 15 RAAF Base Edinburgh Nov 13 – Mar 15 Bandiana Jun 14 – Jul 15 3 greenfield sites (includes Darwin), 5 redevelopments Construction started 12 Dec 12 Construction is planned to complete Nov 16 Proposed General Storage Warehouse at Joint Logistics Unit (North), Robertson Barracks Defence Logistics Reform: Logistics to train, fight and win JOINT LOGISTICS COMMAND 6
  7. 7. Transition & Site Migration 2014 2013 J DLTP Program Phase J A S O N D J F M A M J J 2015 A S O N D J F M A Phase 2 - Logistics Services Transition Phase 3 - Site Migration Logistics Services LMM Services Transition Period LMM Contractor Transition Network Land Material Maintenance (LMM) Facilities W&D Services Transition Period W&D Contractor Transition Warehouse and Distribution (W&D): Facilities Delivery  The evaluation phase of the W&D Services Request for Tender (RFT) is now complete. Stock  LMM Transition is now complete with all Migration sites now working to the new business model  Commercial-In-Confidence negotiations with Stock Migration Period the preferred tenderer for the W&D Services contract has commenced. Enabler  Transfield Services Australia is the ADFs new LMM services contracting partner ICT  Currently ‘bedding in’ new processes prior to  It is anticipated thatWMS Implementation new transition to the site migration contract will commence by 30 June 2014.  Site migration planning currently underway  Site migration planning currently underway 7 Defence Logistics Reform: Logistics to train, fight and win JOINT LOGISTICS COMMAND
  8. 8. 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. Defence Logistics Reform: Logistics to train, fight and win JOINT LOGISTICS COMMAND 8
  9. 9. Benefits for Northern Australia Benefits DLTP reforms will provide to Northern Australia include: JLU(N) Robertson  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 Defence Logistics Reform: Logistics to train, fight and win JOINT LOGISTICS COMMAND 9
  10. 10. Investment in modern, commercial and purpose built facilities at Robertson Barracks 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 Defence Logistics Reform: Logistics to train, fight and win 10 JOINT LOGISTICS COMMAND
  11. 11. Infrastructure progress at JLU (N)  Works Package 4 (JLU-N Darwin) – Construction started in May 2013. Approximately 10% complete as at mid Oct. SOD Turning on 13 June 2013 Western Access Road Defence Logistics Reform: Logistics to train, fight and win Loan and Repair Warehouse 11 JOINT LOGISTICS COMMAND
  12. 12. 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 Defence Logistics Reform: Logistics to train, fight and win JOINT LOGISTICS COMMAND
  13. 13. Way Forward • Site migration of Joint Logistics Unit (North) from multiple Darwin sites to Robertson Barracks - fully operating concept 1st QTR 2015 Defence Logistics Reform: Logistics to train, fight and win 13 JOINT LOGISTICS COMMAND
  14. 14. Defence Logistics Reform: Logistics to train, fight and win JOINT LOGISTICS COMMAND
  15. 15. CONCLUSION AND QUESTIONS Defence Logistics Reform: Logistics to train, fight and win 15 JOINT LOGISTICS COMMAND

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