dltp market briefing v10.1 1 nov 11 master market briefing v10.1 1 nov... · industry briefing...

JOINT LOGISTICS COMMAND

Defence Logistics Transformation Program

Industry Briefing

November 2011

JOINT LOGISTICS COMMANDDefence Logistics Reform: Logistics to train, fight and win 2

Topic Presenter

Introductions and Welcome / Purpose and Outcome

Mr. Dave McGaheyProgram DirectorDefence Logistics Transformation Program

Defence and the Strategic Reform Program - Update

Air Vice Marshal Margaret StaibCommander Joint Logistics

Defence Logistics Transformation Program Update

Mr. Dave McGahey

Approved Business Model Mr. John MatthewsPartner, Ernst & Young

Procurement Process Mr. John Matthews

Probity Mr. Dave McGahey

Next Steps Mr. Dave McGahey

Question & Answers All

Defence Logistics Transformation ProgramIndustry Briefing Agenda


Defence Logistics Transformation ProgramWhat today is about

Purpose

• Update you on progress of the Defence Logistics Transformation Program.

• Provide you with an overview of the business model selected for the delivery of warehousing, distribution and maintenance services.

• Outline the procurement process for the Defence Logistics Services Tenders.


Defence Logistics Transformation ProgramIndustry Briefing

Defence Strategic Reform Program


Defence Logistics Transformation ProgramStrategic Reform Program Overview

• The Defence Strategic Reform Program is designed to achieve “Force 2030” and improve current Australian Defence Force operations. The program has been in effect for 18 months and is about to transition from scoping and planning activities to commence the implementation of a range of key deliverables.

• The Defence Strategic Reform Program is a targeted set of reforms designed to:– improve Defence accountability arrangements;

– improve Defence planning;

– significantly enhance Defence productivity.

“The Defence Strategic Reform Program is designed to give Australia a stronger, more agile and harder-hitting Defence Force…the Government is confident that Defence is well placed to achieve fundamental reform”

Senator John Faulkner, Minister for Defence, April 7, 2010


Defence Logistics Transformation ProgramProgram Vision and Outcomes

• Provide Defence with a rationalised, national logistics network –provide modern, purpose built facilities, utilising cost-effective and efficient logistics technology, systems, policies and processes, supported by appropriate distribution capability.

• Deliver Enhanced Land Materiel Maintenance capability – provide new purpose built facilities, and implement efficiency and productivity improvements to increase maintenance capacity and improve through-life support.

• Reduce costs and improve effectiveness - reduce duplication of management activities and associated overheads, provide greater regional autonomy and flexibility to deliver value for money through outcome based contracts.

The key outcomes required from the transformation of the Defence logistics network will:


Defence Logistics Transformation ProgramDefence Imperatives

During the transformation of the logistics network, and importantly during the transition of future service providers, Defence imperatives are:

•Support to Operations – Maintain the ability to provide a responsive logistics system capable of providing current and future support to operations in the global context;

•Raise Train and Sustain – Supporting the planning, coordination and delivery of logistics support for operations and exercises to enable the Services to meet their raise, train and sustain function, and

•Inventory Assurance – Maintaining inventory assurance requirements including those of the Australian National Audit Office (ANAO).

JOINT LOGISTICS COMMANDDefence Logistics Reform: Logistics to train, fight and win

Defence Logistics Transformation ProgramProgress to Date

8

• Conducted Market Soundings on 16 April 2010 and 18 April 2011 and incorporated outcomes into the development of a Future Logistics Business Model.

• Initial Defence approval for Infrastructure with First Pass Approval scheduled for November 2011.

• Engaged a number of Head and Managing Contractors to complete the design phase for our future infrastructure requirements.

• Defence endorsement for an alternative Logistics Business Model.

• Broad communication program across all Joint Logistics Units to update progress and advise of upcoming changes.

• Defined preferred transition process and outcomes.

• Developed detailed ‘cost-to-serve’ analysis for baseline comparison of future network operating costs.

• Preparation of detailed request documents for Logistics Service Delivery.


Defence Logistics Transformation Program Update

Defence Logistics Transformation Program


Defence Logistics Transformation Program OverviewDefence Logistics Network

WilliamtownRichmond

JLU(V) Puckapunyal

JLU(V) Hobart

JLU(S) Edinburgh

JLU(W) Guildford

JLU(NQ) Lavarack

Nowra

JLU(SQ) Wallangarra

JLU(SQ) Amberley

JLU(V) Bandiana

JLU(SQ) Oakey

JLU(N) Robertson

Moorebank

‘To-be’ Storage and Distribution

Network

JLU(NQ) RAAF Garbutt

JLU(V) Puckapunyal

JLU(V) Hobart

JLU(S) Edinburgh

JLU(W) Guildford

JLU(N) RAAF Darwin

JLU(NQ) Lavarack

DNSDC Nowra

JLU(SQ) Bulimba

JLU(SQ) Meeandah

JLU(SQ) Enoggera

JLU(SQ) Wallangarra

JLU(SQ) Amberley

JLU(S) Warradale

DNSDC RAAF Williamtown

JLU(V) Bandiana

DNSDC Singleton

JLU(SQ) Oakey

JLU(V) Wirlinga

JLU(NQ) Macrossan

JLU(N) Winnellie

JLU(W) Stirling

‘As-Is’ Storage and Distribution

Network

JLU(W) Stirling

Consolidation

Rationalisation and consolidation of

Defence’s existing national wholesale logistics storage,

distribution and land materiel maintenance

network

Modernisation

New and refurbished purpose built facilities to

support current and future operations

Enhancement

Cost efficient and effective logistics

technology, systems and processes to provide

optimal logistics support to Defence operations

Technology Improvements

Introduction of ‘State of the Art’ systems to

provide integrated and automated warehouse

practices

Singleton


Works Package 3 – JLU(NQ)

SiteLavarack BarracksRAAF Base Townsville

Delivery Method

Managing Contractor(MCC-1 2003)

Works Package 2 – JLU(SQ)

SiteRAAF Base AmberleyWallangarra

Delivery Method


Works Package 1 – DNSDC & JLU(V)

SiteLiverpool Military AreaEast Bandiana

Delivery Method


Works Package 6 – JLU(W)

SiteHMAS Stirling &Palmer Barracks

Delivery Method

Head Contractor(HC-1 2003)

Works Package 4 – JLU(N)

Site Robertson Barracks

Delivery Method


Works Package 5 – JLU(S)

SiteRAAF Base Edinburgh

Delivery Method


Defence Logistics Transformation ProgramInfrastructure Summary - National Program (Six Works Packages)

Significant investment (>$600M) is being planned for the wholesale logistics network, including the construction of both new and refurbished facilities. Infrastructure timeline indicates that the new service providers will occupy existing facilities and will transition to new / upgraded facilities once commissioned.


Defence Logistics Transformation Program Infrastructure Schedule Summary (Subject to Government Approval)

12

Timeline 2011 2012 2013 2014 2015Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4

Infrastructure Workstream

Defence Estate Committee

Update to Strategic Business Case

Detailed Business Case

Government Approval

Parliamentary Clearance

PWC Referral

PWC Hearing

PWC Expediency Motion

Construction

Works Package 1: DNSDC / JLU (V)

Works Package 2: JLU (SQ)

Works Package 3: JLU (NQ)

Works Package 4: JLU (N)

Works Package 5: JLU (S)

Works Package 6: JLU (W)

Initial GovtApprovalMar 11

2nd Pass Govt ApprovalMay 12

1 March 2012

June 2012

July 2012

September 2012

1 September 2011

1st Pass Govt Approval

January 2015

June 2014

September 2014

October 2014

January 2014

January2014

Completed Milestones Milestones Pending


HMAS Coonawarra, Albany, Ararat, Armidale, Balkpapan, Bathurst, Betano,

Broome, Larrakia, Maitland, Pin, COMMHPGP

HMAS Bundaberg, Cairns, Childers, Launceston, Wollongong

HMAS ANZAC, Ballarat, Darwin, Sydney, Melbourne, Newcastle, Parramatta, Success,

Tobruk, NUSHIP Choules.

FLSE Waterhen: HMAS Diamantina, Hawkesbury, Huon, Norman, Clearance Diving

Team 1, Young Endeavour, FSY Waterhen

HQ 1 BDE (ADL), 7 RAR, 102 (CORAL) BTY, 9 CE SQN, 1

LSE, HQ 9 BDE, 10/27 RSAR, 144 SIG SQN, 3 FD SQN, 3/9 SAMR, 48 FD BTY, 9 CCSB, 16th Air Defence Regiment, 3

HSB, 1 MP BN, WO & NCO-SA, Army Band Adelaide

HQ FORCOMD, 39 PSB, 3 RAR, HQ CS&ISTAR GP, 19 CE WKS, 1 INT BN, 1 GL GP, 17 CONST SQN, 6 AVN REGT,

HQ 17 CSS BDE, 17 SIG REGT, 1 HSB, 1 PSYCH UNIT, 1 MP BN, 176 Air Dispatch, 2 CDO REGT, SOLS, IRR, SME, DPTC, WONCO-A NSW WG, SFTC, SOI, PTS,

Canberra Area Units

7th Signals Rgt, 6th Engineer Support Rgt, 1st Intelligence Bn, 1st Signal Rgt, 20th

Survellance & Target Acquisition Rgt, HQ 7th Brigade, 2nd/14th Light Horse Rgt, 6th

Bn RAR, 8th/9th Bn RAR, 1st Field Rgt, 2nd Combat Engineer Rgt, 139th Signal Sqn, 7th Combat Service Support Bn, 9th Bn

QLD Rgt, 25th/49th Bn QLD Rgt, HQ 16th Aviation Brigade, 2nd Health Support Bn,

9th Force Support Bn, Army Aviation Centre

HQ 1 BDE, 5 RAR, 1 ARMD RGT, 1AVN REGT, 2 CAV REGT, 8/12 MDM REGT, 1CSSB, 11 MP COY, 1 CER REGT, 1 CSR REGT, ERS DET, Nonforce, WO &

NCO Academy, Aust. Army Cadets, 1 BDE CATR COY

1 RAR, 2 RAR, 3 CER, 3 CSR, 3 CSSB, 3 RAR, 4FD, 51FNQR,3/4 CAV, 11CSSB, 141SIGS,

31RQR, 35FD SQN, 1st Military Policy Bn, Army Logistic Training Centre, 69 Ground Liaison

Section, land Warfare Centre NQ, Queensland University Regt, WO & NCO Academy, Combat

Training Centre.

396 ECSW, 13 SQN, 322 CSS Tindal, 114 MCRU, 44 Wing DET, 75 SQN Tindal

RAAF Base Richmond (FEG ALG, 22SQN, 84WG, 1CCS)

RAAF Base Williamtown (FEG ACG and SRG, 81WG, 381ECSS)

RAAF Base Glenbrook (HQAC)RAAF Base Butterworth (324CSS)

HMAS (28SQN)

1SQN, 6SQN, 33SQN, 36SQN, 382ECSS, 2AFDS, RAAF SFS,

1 Airfield Operations Support Sqn TSV, 1 Combat Communication

Sqn DET TSV, 27 SQN, 323ECSS, 38 Squadron,

395ECSS, 452 SQN TSV Fight, Combat Survival Training School, RAAF Base Scherger (Cape York)

JLU Sites

JLU (NQ) Lavarack

JLU (SQ) RAAF Amberley

DNSDC Moorebank

JLU (V) Bandiana

JLU (S) RAAF Edinburgh

JLU (W) HMAS Stirling

JLU (N) RAAF Darwin

JLU Dependencies

Navy

Army

Air Force

Operations

Guildford

Nowra

MoorebankEdinburgh

Robertson

Stirling

Lavarack

Oakey

Amberley

Richmond

Williamtown

Operation Astute, Slipper,

Palate II, Anode,

Mazurka, Azure, Paladin, Tower,

Riverbank

Selected Operations

JLU (V) RAAF, NAVY & Army Support to

Operations

79TH Squadron, Combat Support Unit

Pearce

92 WG, HQ AOSG, 24 SQN, 1 AFDS, 4 EHS, 1 RSU, Air Cadets

HMAS ANZAC, Arunta, Collins, Dechaineux, Farncomb, Perth, Rankin, Sheean, Sirius,

Toowoomba, Waller, Warramunga, Clearance Diving Team 4

Special Air Service Regiment

• 7 Primary Sites located with major dependencies• 7 Supporting Sites• Standard configuration• Includes equipment support

Wallangarra

BandianaPuckapunyal

Hobart

Navy HQ SA, DG CAP Trans/Sustainment,

Clearance Diving Team 9HQ 4th Brigade, 4th/19th Prince

of Wales Rgt, 5th/6th Bn Victorian Rgt, 2nd/10th Field Regiment,

4th Combat Engineer Rgt, 108th Signals Sqn, 4th Service Support

Bn, 22nd Construction Rgt, MonUR, 16th Field Battery,

12th/40th Bn R Tas Rgt, 2nd Force Support Bn, ALTC, 8th/7th

Bn Victorian Rgt, School of Armour and School of Artillery

32SQN, CFS, SAW, SATC, OTS

HMAS Cerberus

Defence Logistics Transformation ProgramFuture Network

13

Singleton


Service Scope Description

Warehousing • Receipt (including inspection)• Storage

- Inventory control- Inventory maintenance (which

interfaces to Materiel Maintenance)

- Loan and Equipment Pools Operations

• Issue and collection• Support to Defence operations via:

- Cargo Consolidation Points- Mounting Base Support

Types of inventory involved:• General service inventory including:

- Operating stock,- Life of Type & reserve or safety stock,- Slow moving inventory.

• Principal and rotable items (in stock and equipment pools).

• Dangerous and Hazardous Goods.• High security items including weapons and

some classified equipment.

Distribution • High priority and routine distribution • Includes local, regional and national movements.

• Pick up and delivery centred at Joint Logistics Units.

Land Materiel Maintenance

• Defence management and planning of land materiel maintenance

• Contractor support for the provision of skilled maintenance services and technical services as required.

• Regional Fleet Management of Land Materiel (predominantly armoured vehicles, general transport vehicles; and assorted equipment) .

• Electronic, instrument and radio repair.• Weapon Repair.• Equipment Pool Repairs.

Defence Logistics Transformation ProgramLogistic Service Delivery Requirements


All data provided on this slideis indicative for FY 09/10.

JLU(NQ) RAAF Townsville Garbutt

JLU(V) Puckapunyal

JLU(V) Hobart

JLU(S) EdinburghJLU(S) Warradale

JLU(W) HMAS Stirling

JLU(N) RAAF Darwin

JLU(NQ) Townsville Lavarack

DNSDC MoorebankDNSDC Nowra

JLU(SQ) Bulimba

JLU(SQ) Meeandah

JLU(SQ) Enoggera

JLU(SQ) Wallangarra


JLU(V) Bandiana

DNSDC Singleton

JLU(SQ) Oakey

JLU(V) Wirlinga

JLU(NQ) Macrossan

JLU(N) Winnellie

JLU(SQ) Amberley

DNSDC RAAF Richmond

JLU(W) Guildford

DNSDC Randwick

JLU(N) Holdings

# items approx 470,000

m3 approx 9,000

Defence Logistics Transformation ProgramIndicative Wholesale Network Holdings FY 09/10

JLU Network Holdings

# items approx 108 mil

m3 approx 830,000

DNSDC Holdings


m3 approx 450,000

JLU(SQ) Holdings


m3 approx 93,000

JLU(NQ) Holdings

# items approx 2.8 mil

m3 approx 35,000

JLU(W) Holdings


m3 approx 24,000

JLU(S) Holdings


m3 approx 11,000

JLU(V) Holdings


m3 approx 200,000

DNSDC Singleton


In‐Scope Inventory

All volumes have been converted to kg m-3 using 250 kg.


JLU(V) Puckapunyal

JLU(V) Hobart



JLU(N) RAAF Darwin



JLU(SQ) Bulimba

JLU(SQ) Meeandah

JLU(SQ) Enoggera

JLU(SQ) Wallangarra


JLU(V) Bandiana

DNSDC Singleton

JLU(SQ) Oakey

JLU(V) Wirlinga

JLU(NQ) Macrossan

JLU(N) Winnellie

JLU(SQ) Amberley

DNSDC RAAF Richmond

JLU(W) Guildford

DNSDC Randwick

DNSDC (NSW), JLU(V) and JLU(SQ) accounted for 74% of outbound cubic kg across the JLU network in FY 09/10.

JLU(N) Movements

Kg m-3 approx 5.0 mil

Defence Logistics Transformation ProgramIndicative Outbound Movements (kg m-3) FY 09/10

JLU(W) Movements


JLU(S) Movements


JLU(V) Movements


JLU(NQ) Movements


JLU(SQ) Movements

Kg m-3 approx 13.4 milJLU Network Movements

Kg m-3 approx 75 mil

DNSDC Movements


DNSDC Singleton

JOINT LOGISTICS COMMANDDefence Logistics Reform: Logistics to train, fight and win 17* Includes Hobart.


JLU(V) Puckapunyal

JLU(V) Hobart



JLU(N) RAAF Darwin



JLU(SQ) Bulimba

JLU(SQ) Meeandah

JLU(SQ) Enoggera

JLU(SQ) Wallangarra


JLU(V) Bandiana

DNSDC Singleton

JLU(SQ) Oakey

JLU(V) Wirlinga

JLU(NQ) Macrossan

JLU(N) Winnellie

JLU(SQ) Amberley

DNSDC RAAF Richmond

JLU(W) Guildford

DNSDC Randwick

JLU(N) Requirements

# LMM FTE approx 25

LMM Hrs approx 45,000

Defence Logistics Transformation ProgramIndicative Land Materiel Maintenance Network Requirements

JLU Network Requirements*

# LMM FTE approx 580

LMM Hrs approx 1.0 million

DNSDC Requirements

# LMM FTE approx 75


JLU(SQ) Requirements

# LMM FTE approx 65


JLU(NQ) Requirements

# LMM FTE approx 45


JLU(W) Requirements

# LMM FTE approx 5


JLU(S) Requirements

# LMM FTE approx 15


JLU(V) Requirements*

# LMM FTE approx 350


DNSDC Singleton

*Note: FTE estimated based on LMM activity in Defence facilities and external Trade repair converted on the basis of 1800 hours per person per annum.


Approved Business Model Provision of Logistics Services



Defence Logistics Transformation ProgramOutsourcing Background

Defence has moved over time from a fully in-sourced logistic service delivery model to a largely outsourced logistics model.

Historical

• Limited use of external service providers• Defence management and control of

network• Logistic services delivered by the

Commonwealth (Australian Defence Force (ADF) /Australian Public Service (APS))

• Defence owned facilities• Defence controlled Information and

Communications Technology (ICT)• Defence controlled and procured inventory

Current State

• Single service providers for the logistics contracts

• Reduced Defence management and direct control of network

• Logistic services delivered by contractor workforce

• Defence owned / leased facilities• Defence controlled Information and

Communications Technology (ICT)• Defence controlled and procured inventory


Defence Logistics Transformation ProgramService Delivery Options

Defence considered three service delivery options in developing the future Business Model

Option Features Service Lead(Conceptual)

1

• Single service provider to manage and deliver logistic services for all three streams.• Defence with limited input into service delivery and performance outcomes.• Outsourced commercial expertise responsible for service delivery across the

network.

2

• Defence engages specialist service providers by stream.• Defence leads the service delivery outcomes supported by commercial providers.• Collaborative partnership between Defence and service providers.• Defence leverages commercial expertise to deliver leading practice commercial

outcomes.

3

• Defence directly controls delivery of service outcomes.• Limited management input by commercial providers.• Defence leverages some commercial expertise.• Defence is prescriptive in service delivery requirements.

Defence

Outsourced

Key


Defence Logistics Transformation ProgramJoint Logistics Command – Business Model

Key Points• Defence have developed a service

delivery model that leverages commercial capability to meet operational logistics service delivery requirements.

• Separate contracts will be tendered for Warehousing & Distribution and Land Materiel Maintenance.

• Warehousing & Distribution includes the provision of Commercial Logistics Management Services to support Defence management.

• New governance arrangements.

Supply Chain Branch

Joint Logistics

Units

Warehouse and Distribution Service

Provider

Defence Logistics Advisory Board

Commander JointLogistics

Key:

Commercial service roles from commercial logistics management, warehousing and distribution service providerCommercial management roles from maintenance service provider as required.

Maint.Service Provider

Service Delivery



Commercial Logistics Management Services

• New governance arrangements.

• Contractor staff are embedded into the business at multiple levels – the precise nature and allocation of roles will be outlined in the RFT.

• At the unit level, service provider staff will report to the Commanding Officer.

• Greater focus on Regional deliverables.

Supply Chain Branch


Key:

Commercial service roles from commercial logistics management, warehousing and distribution service providerCommercial management roles from maintenance service provider as required.


Service Delivery



Provider

JointLogistics

Units



Warehousing & Distribution

• Provision of Warehousing and Distribution as an integrated service offering.

• Performance-oriented, output-based services.

• Service delivery outcomes accountable regionally.

SupplyChainBranch

Joint Logistics

Units



Key:

Commercial service roles from commercial logistics management, warehousing and distribution service providerCommercial management roles from maintenance service provider


Service Delivery


Provider



Land Materiel Maintenance

• A very different approach to service delivery – moving from contractor-led to Defence-led

• Contractor staff are embedded into the business, as required by Defence.

• At the unit level, service provider staff will report to the Commanding Officer.

SupplyChainBranch

JointLogistics

Units



Key:

Commercial service roles from commercial logistics management, warehousing and distribution service providerCommercial management roles from maintenance service provider as required


Service Delivery


Provider



25

Supply Chain Branch

Joint Logistics

Units



Key:

Commercial service roles from commercial logistics management, warehousing and distribution service provider.Commercial management roles from maintenance service provider as required.


Service Delivery


Provider



Key Points

• New business model

- Designed to meet the needs of Defence over coming years

- Based on practical realities of who is best placed to control an activity

- Balance of roles and responsibilities to achieve required operational outcomes and savings

• Two National contracts requiring significant national presence, broad experience and expertise:

- Commercial Logistics Management, Warehousing and Distribution contract; and

- Land Materiel Maintenance contract.

• Performance metrics will apply to both contracts.


Procurement Process



Defence Logistics Transformation ProgramProcurement processes

• Issue of two Requests for Tender:– Warehousing and Distribution and Commercial Logistics Management

Services procurement.– Land Materiel Maintenance Services procurement.

• Both single stage tender processes.

• Opportunity for potential bidders to discuss their proposed tendering structures with the Defence Logistics Transformation Program team.

• Interested parties will be obliged to execute confidentiality undertakings to receive a Request for Tender.

• Prior to the issue of the Requests for Tender a question and answer process will be conducted for potential bidders. Other than confidential questions, questions from potential bidders and responses provided by the Defence Logistics Transformation Program team will be posted on the web site for the benefit of all potential bidders.

28


Defence Logistics Transformation ProgramProcurement processes (cont)

• Industry briefings following release of Requests For Tender.

• Bidders will be obliged to obtain approvals under Commonwealth and foreign government security regulations such as International Traffic In Arms Regulations (ITARs).

• Prior to the tender closing date, parties who receive the Request for Tender will:– receive access to Defence data,– be invited to attend site visits,– be invited to ‘one-on-one’ meetings with the Defence Logistics

Transformation Program team.

• As noted earlier, the RFT will outline the requirements of Defence and the extent of information required to satisfy Defence as to the ability of a tenderer to service a complex national organisation over a period of up to ten years in a collaborative manner.

29


Defence Logistics Transformation ProgramProcurement Processes: Indicative Timings

Approval Phase:

Government and Defence approvals In progress – anticipated early 2012

Requests for Tender: • Warehouse & Distribution (W&D) / Commercial Logistics

Management Services (CLMS) Request for Tender(RFT) and Land Materiel Maintenance (LMM) RFT release

Planned - early April 2012

• Tender Close LMM Planned - late June 2012

• Tender Close W&D / CLMS Planned - late July 2012

• Government and Defence Evaluation and Selection Complete LMM Anticipated - November 2012

• Government and Defence Evaluation and Selection Complete W&D / CLMS Anticipated - February 2013

• Contract signed LMM Anticipated - January 2013

• Contract signed W&D / CLMS Anticipated - April 2013

Transition: Into new facilities when complete Early/mid 2014


Probity



Defence Logistics Transformation ProgramProposed tendering rules – tendering consortia

Probity rules for tenderers

• Tenderers, including related parties represented in competing tendering consortia, must not engage in any collusive behaviour in relation to the procurement.

• Information in relation to the procurement is not to be exchanged between two or more competing tenderers/consortia.

• Tenderers must not engage in any anti-competitive behaviour in relation to the procurements.

Proposed rules for tendering consortia

• Interested parties may participate as tenderers in both the Warehousing and Distribution procurement and the Land Materiel Maintenance procurement as they are separate procurements.


Defence Logistics Transformation ProgramProposed tendering rules – tendering consortia

Proposed rules for tendering consortiaApplied separately for the two procurements

Subject to Defence being satisfied that the probity rules will be satisfactorily addressed:

• The same legal entity cannot participate as a tenderer in more than one tender.

• The same legal entity may be a tenderer in one tender and participate in one or more competing tenders as a subcontractor.

• The same legal entity may participate in one or more competing tenders as a subcontractor.

• Two related legal entities may be tenderers in competing tenders in either procurement – however there may be circumstances where related parties may not be able to participate in tenders in the manner they would otherwise prefer.

• Defence is willing to meet pre-RFT to discuss these requirements.33


Defence Logistics Transformation ProgramKey Outcomes for Defence

• Performance based outcomes linked to more flexible contracting arrangements.

• Optimised Defence logistic service delivery from leveraging commercial expertise.

• Maintenance of support to logistic operation outcomes during transition.

• Greater regional influence for Joint Logistic Unit Commanding Officers to meet dependency requirements.

34


Defence Logistics Transformation ProgramNext Steps

• Defence anticipates national advertising of the Requests for Tenders for these services prior to release in early April 2012.

• Information regarding the tendering process and other relevant matters will be made available on the dedicated Joint Logistics Command Defence Logistics Transformation Program procurement website.

• Defence has commenced planning for transition out of the current logistics contracts.

• Register of interested organisations has been prepared and additions are welcomed through our dedicated email address on the next slide.

• Written questions to the Defence Logistics Transformation Programprocurement email address are also welcomed and responses will be provided on the website.

• Please DO NOT make separate contact with Defence representativesseeking answers to questions.


• A copy of this Presentation is available at the Program website at:

www.defence.gov.au/JLC/DLTP.html

• Please direct any correspondence to

[email protected]

Defence Logistics Transformation Program Contact Details

36

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