Annual Report 2003-04

Corporate Services and Infrastructure Reforms

The Corporate Services and Infrastructure Group supports the working and living environments of Defence personnel.

Results for 2003-04

Throughout 2003-04, the Corporate Services and Infrastructure Group continued to improve the quality of Defence's infrastructure and the services provided to its customers. It also continued to support Defence's reform agenda by focusing on delivering strategic objectives that provide assurance to its owner, customers and stakeholders. The strategic objectives for 2003-04 were to ensure that:

• customers were confident about the Group's products, service, performance and cost;
• customers understood what the Group provided and could easily access its services;
• the Group was recognised as a high-performing organisation that delivered best value-for-money and achieved planned performance; and
• the Group delivered sound stewardship of its resources in order to contribute to the sustainable delivery of Defence outcomes.

Results of the reform initiatives during 2003-04 are detailed below.

Management of Defence Infrastructure

Infrastructure Division, within Corporate Services and Infrastructure Group, developed a new infrastructure asset development process which has been endorsed by the Government. The new process provides improved risk management measures and ensures the development of more robust cost estimates prior to bringing infrastructure proposals forward for departmental and Government approval.

This model has also been adapted for facilities operations and leasing proposals. The asset development model process is linked to broader Defence capability strategic planning by regular reports on the status of the overall infrastructure program to the Defence Capability Committee.

The development and implementation of the infrastructure asset development model has also enhanced the capital facilities planning process by addressing 'whole-of-life' costs, including operating costs and ecologically sustainable development aspects.

A new suite of construction contracts has also been developed and implemented. These contracts address whole-of-life aspects of design, construction and the ongoing operation and maintenance of facilities and infrastructure.

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Business Improvement

The Group focused on the implementation of a range of improvement activities designed to increase customer satisfaction and improve value for money in the provision of corporate services to Defence.

These improvement activities include:

• a new travel management system for business travel, including a new Defence travel card that will simplify travel arrangements, ensure prompt payments to suppliers and provide estimated savings of up to $21m per annum;
• centralising arrangements for the payment of accounts through the purchase of data imaging and optical character recognition technology, which reduces the number of staff required to process these payments; and
• feasibility studies into management arrangements for ADF relocations, office requisites, administrative vehicles, hospitality and catering, logistics, occupational health and safety and corporate governance. These reviews will be completed in 2004-05.

The Group also implemented a new acquisition strategy for the provision of garrison support and facilities maintenance at Defence bases. The new contracts will have a strong emphasis on the provision of services by local industry providers. The first of the new contracts was signed for South Queensland in June 2004 and redirects an estimated $17m per annum back into local businesses in South Queensland.

Information Systems

Defence's information and communication technology capabilities have been restructured. By improving reliability, encouraging innovation and emphasising sound business principles, the Group has been able to meet current customer requirements while improving the effectiveness, and reducing the cost, of information and communication services.

A tender was released in November 2003 for the operation of a significant portion of Defence's information technology capability. This market-testing activity will ensure that Defence is obtaining value-for-money services. The selected service provider will be expected to assume responsibility for the designated portion of Defence's information technology capability during 2004-05.

As part of the upgrading of Defence computer systems throughout 2002-03 and 2003-04, over 40,000 redundant desktop computers were donated to the Australian Government's Computer Technologies for Schools Project. Defence also donated 80 surplus computers to the University of East Timor.

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Industry Engagement

A large proportion of the products and services for which the Corporate Services and Infrastructure Group is responsible are delivered by industry, with $1.98 billion under contract in 2003-04. These contracts include the delivery of products and services in the areas shown in Table 6.1.

Note

1. Infrastructure investment contains the cost of training range upgrades, although it was reported separately in the 2003-04 budget and additional estimates statements.

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