Mr Alan Henderson, Deputy Secretary Corporate Services, was responsible for managing corporate services and the Defence estate.
Corporate Services and Infrastructure Group creates and sustains the working, training and living environments for more than 90,000 ADF personnel, Australian Public Service (APS) employees and contracted service providers.
Corporate Services and Infrastructure Group's workforce is made up of APS employees, ADF members and contractors, with representatives working at every major Defence establishment in 12 regions across Australia. As at 30 June 2006, 1,166 ADF and 4,288 APS personnel worked in the Group.
During 2005–06, the Group spent $3.5 billion, which included $0.5 billion in capital budget, and $3.0 billion in operation budget (of which $1.0 billion was managed on behalf of the portfolio).
In 2005–06, we continued to make improvements in service delivery and managing the Defence estate in support of the ADF and our other customer Groups across Defence. Our environmental management achievements are reported in detail in the Ecologically Sustainable Development section of the appendices.
Service delivery
Corporate Services and Infrastructure Group more than met its service delivery obligations in 2005–06, as detailed in agreements with the Secretary, the Chief of the Defence Force, Service Chiefs and Group Heads. Customer feedback on the whole was positive. In addition to improving services in the everyday military and civilian environments, the Group supported Defence and ADF operations, including the Commonwealth Games and support of mounting bases in Townsville and Darwin for operations in the Middle East and Timor-Leste.
Considerable effort was also devoted to improving business and service delivery processes and contracts. During 2005–06, the Group continued the re-tendering process for the provision of base support services (garrison support) and facilities maintenance services (comprehensive maintenance) across Defence bases. Five of the 12 regions are now under new contracts, with two regions to follow suit soon. The contracts in these seven regions represent an annual value of over $260m and provide for small-to-medium enterprise involvement, benefiting the economies of several regional communities. This re-tendering process across 12 regions is scheduled for completion in 2008-09.
On 15 May 2006, a new business centre was opened in Townsville. The centre provides travel advice and support services for ADF and Defence civilian personnel undertaking business travel, both domestic and international.
During the year we developed and implemented the new Defence Legal Services Panel, which commenced operation from 1 June 2006. The new arrangements are a result of a two-stage tender process. The panel broadens the range of legal expertise and experience available to Defence. The standing offers are for an initial term of three years with the option to extend each standing offer by up to six years (three sets of two-year options). As part of the arrangements, panelists are required to subcontract ten per cent of work to small-to-medium enterprise firms to further enhance opportunities for smaller legal firms to gain access to Defence legal work.
On 30 June 2006, the revised Services Agreement for housing services between Defence and the Defence Housing Authority was signed. The agreement formalises the relationship between Defence as a purchaser and the Authority as provider of housing and related services. The revised agreement establishes a more commercial and transparent arrangement between Defence and the Defence Housing Authority.
We also put in place a new national Strategic Supplier Arrangements panel for the provision of office requisites and janitorial products. The value of the standing offer arrangements is around $16m each year. The arrangements commenced on 1 July 2006 for an initial three-year period, with two one-year extension options available to the Commonwealth.
The tender and contract negotiation for a national contract for inter-regional and international courier services was also completed in 2005–06. Courier services under the new contract will represent a more efficient way of doing business, and is estimated to cost around $3.9m each year.
Managing the Defence estate
Defence is the largest Commonwealth landowner and one of the largest landowners in Australia. Defence has environmental stewardship over almost 34 million hectares of land with more than 700 leased or owned properties, containing more than 25,000 built assets. Significant investment in new and existing infrastructure is required to maintain and sustain Defence's estate to capably support the ADF.
Corporate Service and Infrastructure Group's responsibilities include upkeep of the existing estate and the development of infrastructure to replace or meet new capabilities. In 2005–06, the Group expended a supplemented estate upkeep budget of over $459m. This involved the delivery of more than 820 individual maintenance projects, including an ongoing program of asbestos removal from Defence facilities and the refurbishment of living accommodation for soldiers, sailors and airmen. We also delivered over $360m in infrastructure projects to replace, or meet, new capabilities through the approved capital facilities program.
Other achievements in 2005–06 included progressing the development of the Headquarters Joint Operations Command project, which represents the first significant privately financed Australian Government infrastructure project. The contract for the construction of the Headquarters Joint Operations Command facility and the delivery of supporting services for a 30-year term under private financing arrangements was finalised with Praeco Pty Ltd (Leighton Contractors Pty Ltd and ABN AMRO Australia Limited) on 30 June 2006, with financial close achieved by 28 July 2006. In April 2006, expressions of interest were sought from industry for the delivery of the command, control, communications, computing and intelligence systems under a single contract. The contract was put to tender in August 2006.
We also received environmental awards for the new squadron headquarters building at RAAF Richmond, delivered as part of the RAAF Richmond Reinvestment Project. The building was awarded 5 Star ratings by the Green Building Council of Australia for the 'office design', 'office as built' and 'office interiors' categories. It is the first building of any kind in Australia to achieve all three ratings. Additionally, it was awarded the Sulman Award and the Environmentally Sustainable Development Award by the New South Wales chapter of the Royal Australian Institute of Architects, and was a finalist in the Banksia Environmental Foundation awards.
1 July 2006 saw the formation of the Defence Support Group, a consolidation of most of Defence's shared service provision responsibilities. In forming the Defence Support Group, we have brought together several well-established elements of Defence that put us in an excellent position to create a more comprehensive service delivery organisation focused on providing quality and timely support to all of our customers in Defence.