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Annual Report 2013-14

Volume 1, Part 2 : Performance

Program 1.6: Chief Operating Officer—Defence Support and Reform


The Deputy Secretary Defence Support and Reform, Mr Steve Grzeskowiak, is responsible for delivering an agreed range of base infrastructure and corporate services that are fundamental to generating defence capability and preparedness.


In 2013–14, in consultation with stakeholders about priorities, the Group delivered a broad range of garrison and other base support services, achieving efficiencies and effectiveness in current contracts. Service provision included living and working accommodation for the annual rotation of 1,100 United States Marines and their equipment in northern Australia.

As part of the Australia-wide base services retender, the Group is progressively moving towards the standardisation of requirements across the Defence estate and the various products and services it delivers, while being responsive to Defence priorities. The retender project experienced delays due to the size, scope and complexity of base services contracts. The first five contracts were signed in July 2014 and the remaining contracts were signed in August 2014.

Reform activities initiated in 2012–13 achieved positive results. Travel reform resulted in increased use of the lowest fare of the day where possible, and a new relocations model delivered an annualised cost saving in Defence removals of approximately $3.4 million.

The Group has managed, developed and sustained the Defence estate to support current and future defence capability. More information on the Capital Facilities Program performance is included in Chapter 11 and Appendix A.

Legal highlights in 2013–14 included the following:

  • Defence legal officers provided legal advice, services and assistance in the Middle East and South Sudan, as well as to other domestic, regional and minor ADF operations and exercises. This included advice and support to commanders on a range of international and domestic legal issues that affected the conduct of operations and exercises. There was also liaison with the International Committee for the Red Cross about best practice for the conduct of certain types of military activities in conflict zones.
  • The legal support included support to ministers, the Government and Defence senior leaders, advocacy services for members, and support to ensure lawful functioning of the ADF military discipline and administrative systems.
  • Defence legal officers assisted with Defence’s support to the Defence Abuse Response Taskforce and the Royal Commission into Institutional Responses to Child Sexual Abuse.

Table 3.19: Program 1.6 deliverables

Deliverable

Status

Ensuring that Defence Ministers, CDF, Secretary and Government are provided with quality and timely advice and support to enable them to carry out their duties efficiently

Substantially met

Not all advice was as timely as it should have been.

Provision of high-level integration, coordination, reporting and oversight of the Strategic Reform Program

Substantially met

In September 2013, the former Minister for Defence agreed to the new Strategic Reform Operating Model to replace the Strategic Reform Program. The Defence Strategic Reform Benefits Framework requires Defence to adopt a benefits realisation model for the design, implementation, monitoring and measurement of existing and future strategic reform activities.

Ensure that Defence input to Cabinet and the National Security Committee of Cabinet is timely, relevant and appropriately robust

Substantially met

Defence Cabinet submission processes were revised to meet the requirements of the new Government and minister.

Promote and protect Defence’s reputation by increasing public awareness of Defence activities and achievements and strengthen Defence capabilities in media-related activities

Met

Ensure that Defence complies fully with its obligations under the Archives and Freedom of Information Acts, including the pro-disclosure and accessibility requirements of the Information Publication Scheme

Substantially met

Defence has complied with the requirements of the Archives and Freedom of Information Acts. Defence’s Information Publication Scheme is currently being reviewed and updated.

Provision of specialist legal support
to Defence and legal support for
ADF operations

Met

Continue to implement reforms to the Military Justice System

Substantially met

Defence is pursuing reforms to the military discipline and administrative systems as part of recent external and internal cultural and military justice reviews.

Policy work continues on proposed amendments to the Defence Act 1903 and the Defence Force Discipline Act 1982 to modernise the military justice system. The amendments will enhance the independence and expand the functions of the Inspector General of the Australian Defence Force (IGADF), as well as making changes to disciplinary, complaints and administrative processes.

Formulation of concept, policy, legislation and procedure for the Defence legislative program, including a new Chapter III military court

Substantially met

The Military Court of Australia Bill (and related Bills) lapsed on the prorogation of Parliament on 5 August 2013. The interim arrangements for courts-martial and Defence Force magistrate trials remain in place. Policy work continues to update the powers of Defence investigators who are investigating military offences. Legislative and regulatory change is being pursued to introduce a dedicated set of IGADF regulations, and to modernise and simplify the Defence Force Regulations 1952, the Defence (Inquiry) Regulations 1985, and the Defence (Personnel) Regulations 2002.

Formulation of possible alternative approaches to internal fact-finding and inquiry processes across Defence

Substantially met

Defence concluded Rethinking Systems of Inquiry, Investigation, Review and Audit within Defence—a comprehensive review into existing internal fact-finding, inquiry, investigation and audit processes. Key changes include a restructure of the ADF’s investigative and internal complaint management resources, as well as amendments to related policies and inquiry practices. The completion date for the implementation is 30 June 2015.

Flexible and simple internal fact-finding and inquiry processes will support fair, timely and cost-effective decisions.

Continue to drive reform and improve business outcomes in areas including non-materiel procurement, estate shared services and base support

Partially met

The focus has been on the base services retender, which aims to introduce long-term reforms within the current business lines of estate maintenance and garrison support. The rollout of the new contracts is scheduled for completion by the end of 2014.

Improved business outcomes in base support delivery will be achieved through the implementation of service-level partnering agreements with each of the Services and Groups. The agreements are planned to be completed by the end of 2014.

Provision of non-materiel procurement and contracting advice and support, and continuation of the improvement of procurement practices across Defence

Met

Provision of nationally delivered whole-of-Defence corporate services, including stationery, printing and publishing, library services and travel

Met

Provision of garrison and other base support services to support Defence bases and establishments throughout Australia, including annual rotations
of United States Marine Corps to northern Australia

Met

Implementation of Defence Support and Reform Group elements of the Base Security Improvement Program

Substantially met

Of the 33 recommendations, 31 have been completed. The final two are well advanced and are linked to longer term projects involving security-related base infrastructure works and the identification, search and seizure regime at key facilities. Expected completion is on track for mid-2015.

Maintain single service, joint, combined and coalition capability by providing range control and estate development services and coordinating support
to major domestic operations
and exercises

Substantially met

The Group maintains range control services at all training areas and ranges managed by the Group to support single service, joint and combined training activities. Forecast improvements to the program of works and maintenance will better support the ageing training estate.

Support domestic response capabilities through Joint Operations Support Staff services, including internal and inter-departmental engagement for Defence Assistance to the Civil Community and Defence Force Aid to the Civil Authority

Met

Manage, develop and sustain the Defence estate to meet Defence and government requirements by developing and delivering major estate and environment programs on time, to budget and compliant with the Work Health and Safety Act 2011 , Environment Protection and Biodiversity Conservation Act 1999
and other statutory requirements

Substantially met

The Group continues to deliver the major capital facilities program, the facilities lease program and the property disposal program. The program of activity remains responsive to budget and scope changes. In delivering the program, areas of non-compliance are being addressed as they are identified.

Deliver estate priorities identified in the 2013 Defence White Paper

Met

Deliver the estate investment program, the 2013–14 Major Capital Facilities Program

Substantially met

The 2013–14 Major Capital Facilities Program achieved its expenditure target, delivering $1.286 billion of capital facilities projects. Some projects were
affected by schedule delays; however, the overall impact to future and current operational capability is considered to be minimal.

Deliver an estate strategic planning document to improve estate planning outcomes and prioritise estate investment decisions to support
current and future capability

Met

Promote and manage Defence’s environmental stewardship obligations as outlined in the Defence Environmental Strategic
Plan 2010–2014

Met

Enhance Defence’s governance framework through clearer authority and accountability and more rigorous performance management, risk management, assurance and audit processes[1]

Substantially met

More rigorous risk and performance reporting was instituted through the Defence Annual Plan and the Defence Enterprise Report, providing stronger alignment between the enterprise priorities, material risks and the internal
audit work program.

Align Defence’s corporate, enterprise risk and strategic planning functions, including through Defence’s annual
and corporate plans

Substantially met

Enhancement of the Enterprise Management System focused on improving the quality of enterprise reporting against the annual plan and a refresh of the Defence Corporate Plan 2012–17 to align enterprise priorities with current financial guidance.

Ensure that Defence’s corporate strategy aligns with government direction and priorities, including
fiscal policy

Partially met

More improvements are required to fully align strategy, planning and resource allocation. This work will continue as a priority in 2014–15 in line with the development of the Defence White Paper 2015, the First Principles Review
and the implementation of the Public Governance, Performance and Accountability Act 2013.

Development of the Defence Information Management Strategy and a subordinate Information Management Plan to progress the development of an information management capability across Defence

Substantially met

The Defence Information Management Strategy was approved by the
Defence Committee in March 2014. The Information Management Plan
is currently being developed.

Table 3.20: Program 1.6 key performance indicators

Key performance indicator

Status

Improve business outcomes as part of broader Defence reform, including ongoing implementation of an enhanced enterprise planning system and the revised responsibilities and accountabilities for base support

Partially met

The Group continues to reform its service delivery, standardising and providing consistent services, and improving contract management. Reform has occurred in business lines such as removals and hospitality and catering.

The base services retender, although incurring some slippage, is scheduled to transition to all successful tenderers by the end of 2014, delivering supply-side efficiencies in service delivery, a rationalisation of the number of contracts and improved competitive tension between contractors.

The Ministers are satisfied with the timeliness and quality of advice, including Cabinet documentation, provided by the Department

Substantially met

On occasion Question Time briefs were provided after the nominated time required by the minister’s office.

Defence Cabinet submission processes have been revised to improve timeliness.

Deliver products and services on time and on budget to support the development and delivery of Defence capability

Met

Develop industry engagement and collaborative relationships to ensure the effective and efficient delivery of products and services

Met

Provide ADF members with high-quality service residences, relocation and travel services using cost-effective and robust contract arrangements

Met

Manage, develop and sustain the Defence estate to meet Defence and government requirements by developing and delivering major estate and environment programs on time, to budget and compliant with all appropriate regulatory requirements

Substantially met

The program of activity remains responsive to budget and scope changes. In delivering the program, identified areas of non-compliance are being addressed as they are identified.

Maintain a robust liaison network with inter-departmental and internal agencies to prepare for domestic response operations

Met

Support ADF operational capability, including through the deployment of ADF lawyers to provide access to relevant and timely legal support

Met

The Defence Information Management Strategy is developed and endorsed, the first iteration of the Defence Information Management Plan is developed and endorsed, and implementation is underway

Substantially met

The Defence Information Management Strategy was approved by the Defence Committee in March 2014. The Information Management Plan is currently being developed.