Estate Works Program Industry Briefing December The new model for delivering infrastructure outcomes
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1 Estate Works Program Industry Briefing December 2014 The new model for delivering infrastructure outcomes
2 Introductions Of team Welcome to Country Safety Information/Administration
3 Agenda Background Base Services Retender 2012 Outcomes Implementation Timetable New model for delivery of infrastructure services Defence client National Program Services (NPS) Provider» Points of Contact within NPS Project Delivery Services (PDS) provider x 2» Points of Contact within the PDS Procurement Process DEQMS How to find opportunities Challenges Expected benefits Questions
4 Base Services Retender 10 Contractors 5 Regions, 3-Phase Transition In 8 Base Services National Program Services Project Delivery Services EMOS ARRFF Retail Stores & POL The Services have begun transition in a phased approach. Group 1 transitioned provision of services on 1 Oct Group 2 transitioned provision of services on 1 Nov Group 3 commences provision of services on 1 Dec Waste Management Access Control Hospitality & Catering
5 EMOS Estate Maintenance and Operations Services provides a wide range of service lines, required on a Defence site. Each Service Line is managed by a PSM.
6 National Program Services (NPS) Provides high-level estate infrastructure, creation, upkeep and development management across the whole of the Defence estate. NPS plans the future works required to maintain the Defence estate from a national perspective. This planning period can be for up to 20 years.
7 Project Delivery Services Two companies The Project Delivery Services (PDS) contractors manage approved construction, maintenance and consultancy projects that require central coordination across multiple sites. PDS implements the Defence Estate Works program during the financial year. This implementation is nationally focussed, although delivery may occur in certain regions only.
8 Defence Expectations of BSR Model Nationally consistent approach Improved Value for Money outcomes due to greater certainty in terms of time and cost Flexible resourcing model to meet Defence requirements Improved National consultation process with Groups and Services in program development Clear National prioritisation process to inform Senior decision making process Improved data from condition assessment Streamlined and consistent compliant procurement process, and contract documentation using AusTender Regional knowledge National process
9 New Model of Service Delivery Fundamental Change: Where work was previously sub-contracted to Industry by the Comprehensive Maintenance Services (CMS) provider, under the new arrangement, all Phase 3 Delivery contracts will be direct with the Department of Defence. Contracts will be with Defence, PDS acts as the Project Manager Contract Administrator (PMCA) and is essentially a third-party procurement agent for Defence.
10 New Model of Service Delivery The EWP funnel EMOS doing EA Legislative Changes Defence users Political imperative Reviews NPS NPS Program Program Management Management PDS (x2) Management by DEWPO Phase 1 Scope and Feasibility Phase 2 Design Phase 3 Deliver Infrastructure Outcome to enhance capability
11 Three Phase Delivery Process Phase 1: Scope and Feasibility General inclusions for this phase are: Initial scoping study; Initial stakeholder identification and engagement; Feasibility assessment; and Reporting Phase 2: Design General inclusions for this phase are: Full Scope and Design; Schedule Management; Cost Management; Risk Management; Stakeholder engagement; Procurement/Contract Administration where required; Prepare documentation for procurement; and Reporting Phase 3: Delivery General inclusions for this phase are: Facilitate engagement in accordance with procurement decisions, manage tender, establish contracts; Project Delivery Management; Provision of technical advice; Cost Management; Stakeholder Management; Deliverable management (Scope, Variations, Time, Cost, Quality); Handover/takeover; DLP management; and Reporting
12 Type of Projects Large variety of works, delivered Australia wide, including remote areas, broadly covering: Civil Works (eg road repairs) Land Management (eg weed monitoring, groundwater and air monitoring, feral animal management etc) Minor New Works (eg office refurbishments, security and WHS upgrades etc) Building Services (eg replacement of air conditioning systems, switchboards etc) Asbestos remediation Fire Safety Surveys Maritime works
13 Procurement Process Expect majority of Phase 3 Delivery procurement to be via AusTender in a single stage.
14 Key Stakeholders Defence client Directorate Estate Works Program Office (DEWPO) as part of Defence Support Operations (DSO) Regional staff (DEFS/MEFS)» Director Estate Facilities and Services (DEFS)» Manager Estate Facilities and Services (MEFS) Other Product and Services Managers (PSMs) Defence Procurement and Contracting Branch (DPCB) Capital Facilities Infrastructure (CFI) Branch, Director Estate Engineering Policy (DEEP). Senior ADF Officer (on base) (SADFO) EMOS (e.g. Spotless, Transfield Services, Brookfield Johnson Controls) Other MSPs (e.g. Veolia for waste management, Wilson/MSS Security for Access Control)
15 Defence - DEWPO Overall requirement for the management of the EWP Only likely to engage with DEWPO in the event of a contractual dispute.
16 NPS Responsibilities Program development, management and a support services to facilitate the effective delivery of the National EWP. Develop, manage and maintain a rolling three-year EWP delivery program. Capitalise on opportunities across regions and years to effectively bundle projects to ensure value for money. What is a project? It s a single procurement activity that makes sense.
17 NPS Responsibilities (cont) Provide QA, expert advice and governance of program delivery Coordinated approach across the Defence Estate Facilitate cross-program efficiencies Coordinate and facilitate the delivery of Sponsor Funded Works Provide consolidated reporting and auditing
18 Project Delivery Services (PDS) Providers Two x PDS providers: Aurecon and Augility Provide Project Management and Contract Administration (PMCA) services for Defence. Each provides national coverage for project delivery
19 Project Delivery Services (PDS) Providers The Project Delivery Services (PDS) contractors manage approved construction, maintenance and consultancy projects that require central coordination across multiple sites. PDS implements the Defence Estate Works Program during the financial year.
20 PDS Teams Aurecon Organisational Chart
21 PDS Teams Organisational Structure - Augility Augility is the contracting entity that secured one of the two PDS contracts with Defence. Within Augility, Head Contractor is DynCorp (Aust) Pty Ltd being responsible for contractual matters, with Jones Lang LaSalle (JLL) as the major sub-contractor performing the work.
22 PDS - Augility Organisational Structure
23 EWP Annual Procurement Plan is authoritative source. DS-NAT $26.1m 9 Design Consultancies Specialist Works Packages Airfields Fuel Maritime DS-QLD 32 Sites $28.6m CBD -North(11 sites) CBD -South(13 sites) Remote Central (3 sites) Remote North (5 sites) DS- NNSW 22 Sites $27.8m CBD Hunter (6 sites) CBD Sydney (16 sites) DS- SNSW 16 Sites $24.0m CBD Canberra (7 sites) Remote Riverina (6 sites) Remote SouthCoast NSW (3 sites) DS-VT 26 Sites $17.4m CBD Melbourne (7 sites) Remote Victoria East (4 sites) Remote Victoria NW (6 sites) Remote Tasmania (9 sites) DS-CW 29 Sites $47.3m CBD Adelaide (2 sites) CBD -Darwin (8 sites) CBD -Perth (11 sites) Remote - North (7 sites) Remote South (1 site)
24 How will Contractors Tender for Work Defence will issue tenders for work (Requests for Tender - RFTs) on AusTender AusTender is the Commonwealth Government s procurement information system To be able to access information and tender documents you need to register on AusTender You should check regularly for tenders being issued by Defence on AusTender
25 Annual Procurement Plan Prime reference: The Defence Annual Procurement Plan (APP). Available on Austender. Agency&event=public%2EAPP%2Elist
26 How will Contractors Tender for Work If you are interested in tendering for a specific Request For Tender (RFT), you will need to download the Defence RFT documents from AusTender Once you have completed your tender response, you will be required to submit the tender response by uploading the response electronically on AusTender In providing a tender response, you need to provide the information requested in the Tender Schedules Defence may conduct an Industry Brief in association with the release of a Request For Tender, details will normally be contained in the RFT documents.
27 How will Contractors Tender for Work The RFT will nominate a SINGLE point of contact representing Defence in relation to all issues associated with each individual RFT Potential tenderers will be able to submit questions concerning the RFT to the RFT point of contact during the tender open period Questions can be submitted up until 5 business days prior to the tender closing date Questions and answers will be issued to all potential tenderers (without attribution) as addenda on AusTender If you have downloaded the RFT, AusTender will notify you by that an addendum is available.
28 How will Contractors Tender for Work The period for responding to Requests For Tender will be at least 25 days from the date the tender is published by Defence Late tenders will not be accepted Following tender close, Defence will download all responses from AusTender, and tender evaluation will be conducted Tenders will be assessed for value for money using the Tender Evaluation Criteria advised in the RFT document Tender Evaluation Criteria will normally include consideration of: technical worth risk price
29 How will Contractors Tender for Work At the completion of tender evaluation, a preferred tenderer will be determined The preferred tenderer will enter into negotiations with the Defence representative, where necessary If negotiations are successfully concluded, a contract can be signed, and all unsuccessful tenderers will be advised Unsuccessful tenderers can request a debrief on their tender Contracts are published on AusTender
30 Procurement Probity Probity during the conduct of procurement is a critical concern for Defence In particular, officials undertaking procurement must act ethically throughout the procurement All tenderers must be dealt with equitably throughout the procurement Any conflicts of interest for officials undertaking procurement, actual or perceived, must be identified, considered, and appropriate action taken where necessary
31 PDS - Procurement Process Commonwealth Procurement Rules July 2014 Three Procurement methods Method 1 Open tender - AusTender Method 2 Prequalified tender: to members of the Defence Infrastructure Panel (DIP) or Defence Environment and Heritage Panel (DEHP) as applicable. Defence are considering the introduction of Standing Offer Panel/s for work which is frequently conducted. Method 3 Limited tender - may include exemption under Division 2 of the CPRs (for example, Exemption 17).
32 EWP Contracts Will use the range of contracts currently drafted onto DEQMS at: ort/suitecontracts/ewp.asp DEQMS will increasingly be used as single reference point. Federal Government legislation will continue to apply. This includes FSC accreditation for Government funded projects over $3m (increasing to $4m after 1 Jan 2015). s/scheme-review-2014-documents#2 Indigenous Opportunities Policy (IOP - which has a threshold of $6m for 'construction services')
33 DEQMS (aka Dek ems) The Defence Estate Quality Management System (DEQMS) enables access to business process information. This includes policies, processes, tools and templates, that are essential to the management and delivery of the estate related services provided by DSO
34 EWP Suite of Contracts ort/suitecontracts/default.asp
35 EWP Suite of Contracts ort/suitecontracts/ewp.asp
36 Challenges New process takes time to bed down. New contractors and roles across EMOS/NPS/PDS ensuring alignment in roles/responsibilities. New IT systems requiring prescribed data to be inserted into the Defence Estate Information System Building teams and establishing the necessary communication with industry.
37 Expected benefits Nationally consistent approach allows for effective management of the EWP with a consistent delivery model. Better Value for Money outcomes due to greater visibility of time and cost. Clear prioritisation process to inform senior decision making process. Streamlined and consistent procurement and contract documentation using AusTender. Prioritisation and allocation of projects by National priority.
38 Conclusion To prepare for the EWP, familiarise yourself with the following: the new EWP suite of contracts. the changes in procurement process, the Defence Annual Procurement Plan and tender opportunities on AusTender.
39 Questions / Answer Time»Questions
40 Presentation End»Thankyou
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