Defence

The official magazine

July 2005

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CSIG and Industry Engagement

The essential responsibilities of CSIG are to manage the vast Defence estate and to provide a broad range of conventional corporate support services. We manage the estate to economically support ADF capability as well as ensure its environmental sustainability.

In the three years I have been in CSIG, we have undergone a significant transition. In 2002/03 CSIG was inwardly focused, restructuring itself to become an integrated shared service provider and crying poor. In 2004/05 we have been more outwardly focussed, systematically engaging our customers and under pressure to effectively spend the additional funds allocated in last year's budget.

IT Market Testing

In October 2003, when Information Systems Division was part of CSIG, we issued a request for tender to provide Central Office IT support services. The scope of this tender involves more than 350 military and civilian positions. Tenders closed in April 2004 with KAZ Technology Services selected as the preferred tenderer. Responsibility for this project, including the negotiations with KAZ, has now transferred to the CIO Group.

Responsibility for regional ICT infrastructure support services remains with CSIG. This function maintains Defence's restricted and secret network infrastructure across about 60 bases around Australia. We are scheduled to issue a request for tender for the provision of these services next month. Tenders will provide for one national prime contractor, using small and medium sized businesses as sub-contractors where appropriate. This represents a major opportunity for industry. About 800 positions - 500 civilian and 300 military - are expected to be within the scope of this tender.

Legal panel

Defence uses a legal panel for external legal services, particularly for litigation and commercial law to the tune of around $40m. The current arrangements comprise a primary panel of four, consisting of the Australian Government Solicitor and three national firms, and a secondary panel of three other national firms.

A new model that will significantly increase opportunities to access Defence business will include sixteen panels based on 'areas of expertise'. Large firms may be selected for inclusion on all panels, while small or specialist firms may aspire to be on only one or two of the sixteen panels. We are aiming to start transitioning to the new panel arrangements from November this year.

Garrison Support and Comprehensive Maintenance Contracts

CSIG's largest ongoing contracts are for Garrison support and estate maintenance. Last year, following the establishment of a national panel of preferred suppliers, we commenced successively tendering across the twelve CSIG regions.

While separate requests for tender are issued for garrison support and maintenance services in each region, tenderers are entitled to offer an integrated solution. A joint solution was the outcome in the first region, South Queensland, where Spotless Services was successful. In the Riverina/Murray Valley, the second region, Eurest Support Services will provide garrison support and Spotless Services will provide maintenance services.

Negotiations are currently underway with the top ranked tenderers for garrison support and comprehensive maintenance for the Sydney/West South region. Providing that negotiations are successful it is expected that the contracts will be signed in August.

Major Capital Facilities

The Major Capital Facilities program is a ten year plan for Defence estate facilities. The program has a funding baseline of the order of $330m per annum, which is supplemented by transfers from the Defence Capability Plan where facilities are required to support major capital equipment projects.

The value of approved projects for delivery under the Major Capital Facilities program has risen sharply this year, from less than $500 million in January to over $1.25 billion currently, including projects funded through the Defence Capability Plan. A significant individual project is the redevelopment of Holsworthy Barracks infrastructure, estimated at over $200m.

Project Single LEAP (Living Environment and Accommodation Precinct)

In the 2004/05 budget the Government committed $113 million over four years, plus ongoing funding to address the significant shortfall in on-base living accommodation.

We are currently engaging consultants to undertake regional strategic assessments, focusing on key bases in Queensland, Holsworthy, Riverina and Regional Victoria and the Northern Territory. We will be actively seeking solutions that involve public private partnerships.

HQ Joint Operations Command

The Headquarters Joint Operations Command project will provide a state of the art facility for over 1000 personnel just over the border in NSW. Three consortia have been short-listed for the private finance component of the project. Subject to Government approval, construction activity is anticipated to commence late this year and be complete by late 2007.

Business Centres

Last year the Government announced plans to establish three centralised business centres: accounts processing, with the main site at Puckapunyal; travel and other processing at Townsville; and personnel administration in the vicinity of RAAF Williamtown.

The centre at Puckapunyal is already up and running, using a state of the art Invoice Scanning and Imaging System. Responsibility for processing a substantial share of over one million Defence annual payment transactions is gradually being transferred to Puckapunyal.

The business centre at Townsville should be operational by the end of this year. The centre at Williamtown will be somewhat later as we develop a suitable facility.

Conclusion

I believe that Defence has achieved a remarkable transformation over the past couple of decades. A much higher proportion of public sector Defence resources are now allocated to the sharp end of ADF responsibilities. In combination with a greatly expanded role for industry, the so-called enabling and other groups within Defence are providing economical support for the ADF.

ADF operational tempo has increased while the burden of Defence as a share of GDP has declined. To a significant extent the roadmap for this transformation was laid out in "The Defence Force and the Community", generally known as the Wrigley Review completed in 1990 and the Defence Efficiency Review chaired by Malcolm McIntosh in 1997 advocating outsourcing, the development of shared service provider organisations and the leveraging of new technology. There are continuing developments in CSIG consistent with the Wrigley/McIntosh roadmap. We are trying to develop a culture to sustain improvements without the help, or cattle prod of another Government appointed reviewer.

Alan Henderson is the Deputy Secretary Corporate Services

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Russell Offices Environmental Management System

By Ursula Winter

In 2003, Defence committed to sustainably managing the environment, in all areas and facilities in which we operate, through implementation of the Defence Environmental Policy and the associated Environmental Strategic Plan 2002 - 2005.

Adopting a sustainable approach to our activities is the key to ensuring that we maintain or improve the condition of our land and infrastructure so we can continue to use it for Defence activities in the future. The benefits of managing our environmental impacts responsibly can include:

Achieving a cost saving by reducing our consumption of electricity, water and the amount of waste we generate

• Reducing the likelihood of environmental incidents and associated business risks;
• Improving compliance with environmental legislation and policy; and thereby
• Improving our relationships with local communities and regulatory authorities through demonstration of responsible environmental stewardship.

Many activities undertaken at Canberra's Russell Offices headquarters can potentially impact on the local environment. While potentially high-risk environmental impacts at Russell are largely attributed to activities conducted by our contractors and subcontractors, the behaviour of all staff is critical to ensuring that we meet our obligations to conserve resources and reduce environmental impacts. Examples include, reducing energy and water usage, minimising waste generated by daily work activities in the office environment and contributing to recycling initiatives.

To achieve our Environmental Policy, Defence has committed to developing and implementing a range of Environmental Management Systems (EMS) across Defence, including the Russell Offices site. The structure of our EMS is illustrated below:

A system of this kind allows the Region to implement a structured environmental management program at Russell Offices to improve our environmental performance and achieve policy commitments, including legal requirements.

There is an International Standard for Environmental Management Systems called ISO 14001. Systems that are certified to this Standard undertake audits conducted by external certification bodies and can gain third party recognition of their efforts to improve environmental performance.

To date CSIG ACT/SNSW in consultation with site representatives from the Russell Offices, have developed several Environmental Management Programs within the scope of the EMS. The programs aim to introduce a range of initiatives including, energy and water conservation measures and the recent car pooling trial being conducted by CSIG - Office Services Branch.

It is the intention that the Russell Offices EMS will be assessed against the ISO 14001 standard for certification in October 2006. This environmental certification will be a high profile achievement for both Defence and the Commonwealth. We all have a part to play in its success.

To contribute to the Russell Offices EMS, staff are encouraged to:

• Reduce electricity consumption by switching off computer monitors and using the manual off light switches, where possible.
• Minimise water use and report leaking taps.
• Get involved with local environmental initiatives
• Report environmental incidents

To achieve a basic level of environmental awareness among all Defence personnel, an e-learning training module has been developed for the purpose of assisting all Defence staff in understanding the Department's commitment to environmental management. The module called "Creating Environmental Awareness in Defence" is available on CAMPUS, the Defence on-line training system and takes only 10-15 minutes to complete.

Any suggestions with regard to environmental initiatives can be progressed by contacting your Regional Environmental Management Sustainability Officer on (02) 6266 8723.

Ursula Winter is the ACT Regional Environmental Officer