Partnering for Greater Effect
Partnering between Industry & NZDF
Debbie Howarth
Director – Industry Engagement
Engaging with Industry
Recommendation 1
Whole-Of-Life Costing
Recommendation 2
Procurement
Processes & Practices
Recommendation 3
Industry & Defence
Interface
The Industry Engagement Team
OUR MISSION
To optimise engagement with the Defence industry by
facilitating increased accessibility, early engagement,
information sharing and relationship development.
OUR MANTRA
There is no wrong door for industry to approach.
Benefits of Working in Partnership
Innovative outcomes
Economies & efficiencies
Reduction of some major costs around capital
equipment and administrative overheads
Exposing our people to a wider range of
knowledge skills and experience
Enables the development of blended workforces
to maximise capabilities and capacity
The Opportunities
A budget of $2bn – about 1% of GDP
An asset base of $5bn
Capital Acquisitions to 2030 - $16bn¹
Operational Expenditure to 2019 – $3.4bn²
Different Engagement Models
Direct
OEM’s
JV’s
Industry
Partnerships
Strategic
Contracts
(Prime contractor)
9 Con
tracts each in excess of $20m
Partnering for Greater Effect –
Dockyard Management Contract
Captain Andrew Brown, RNZN –
Logistics Commander (Maritime)
Mike Wardlaw – Managing Director
Babcock (NZ) Ltd
The Journey
• Babcock provided an offer to renew Dec 13
• Analysis of offer completed and decision to proceed
Mar 14
• Negotiation and Transition begins Mar 14
• Oct 14 – CDF signed DMC variation based on TCIF
model and 5+2 year period
• 1 Mar 15 – Babcock and LC(M) Transitioned to new
Model (Vesting Day)
9: Welcome to the MEST
Where Have We Come From?
• Contractual Relationship – pre and post 1994
• Outdated Business Model
• Unsustainable
• Behaviours
10: Welcome to the MEST
MARITIME ENGINEERING SUPPORT TEAM
Together We’re Stronger
Vision/Mission
Partnering - a Key Enabler
•
Communication and Change Management
Coaching
•
Human Resource Transition Plan
•
Management Behavioural Training
•
Collocation of teams
•
Focus on Induction Training
•
Constant focus to prevent ‘old habits’
•
Complete new Governance structure
Vision/Mission
MEST Vision, Mission
& Values
Transformation Journey
14: Welcome to the MEST
Prime Systems Integrator
The DMC contract is delivered through a Prime Systems Integrator
(PSI) model based on the following components:
• Asset management and comprehensive asset life-cycle planning
• Procurement and supply base management
• Centre of engineering excellence: providing a strong reliability engineering
function (failure analysis and interpretation, condition assessment and VA),
life cycle optimisation, engineering change and configuration management
• Operational resourcing which meets the requirements of the future model
• Secure, interoperable IT systems – high data integrity and single point of
truth
15: Welcome to the MEST
Partnering with
Industry
As a Prime Systems Integrator, Babcock is seeking to engage with
suppliers and specialist services providers in the following ways:
• developing long term relationships which reflect the underlying proposition
of the prime contract i.e. deliver long term value for money to the NZDF
• partnerships with suppliers in which the parties can invest in doing business
for the long term with mitigation of risk and an understanding of the returns
• targeted, strategic supply arrangements that are sustained over the
equipment life-cycle and support optimised, cost-effective and efficient life-
cycle delivery
• partnerships with preferred subcontractors and suppliers that are traded
electronically with high levels of automation and are built on close working
relationships, mutual collaboration and respect
16: Welcome to the MEST
Partnering with
Industry
17: Welcome to the MEST
