Australian Government, Department of Defence

Infrastructure Management (IM)

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Quality Endorsed Organisation
Defending Australia and its National Interests
Defence Infrastructure Panel (DIP) (2004-2007)

Technical Authority: DGIAD
Subject Matter Expert: DCC

Defence Panel Email Contact

DIP Manual
Terms of Engagement (printable)
Standing Offer Agreement (printable)
Introduction
DIP Procurement and Evaluation Plan
Contractual Arrangements
Engagement Process
Engagement of Consultant by Commonwealth Contractors
Performance Management and Reporting System
Structure of the Defence Infrastructure Panel (DIP) 2004-07
Previous Panel Agreement (ie. Estate Planning and Acquisition Panel (EPAP) 2001-2004)

DIP Procurement and Evaluation Plan Template
DIP Procurement and Evaluation Plan Guidance

Points of Contact and Statement of Work for Sub-Panel 1: Defence Infrastructure Planning Panel (DIPP)
Points of Contact and Statement of Work for Sub-Panel 2: Defence Infrastructure Procurement Services Panel (DIPSP)
Points of Contact and Statement of Work for Sub-Panel 3: Defence Infrastructure Specialist Services Panel (DISSP)

Introduction

1. The Corporate Services and Infrastructure Group (CSIG) within the Department of Defence ("Defence") has established the Defence Infrastructure Panel (DIP) 2004-07 Standing Offer Agreement on behalf of Defence. The establishment of the DIP, comprising a total of 20 firms for a three year duration, will provide high quality professional services to support CSIG in the development and maintenance of Defence infrastructure and overall estate management.

2. This document sets out the basis of the relationship between Defence and the DIP Consultants who are part of this panel. The document is divided into the following sections:

  1. Section 1: This introduction
  2. Section 2: The terms of the DIP Standing Offer Agreement (refer DIP Manual)
  3. Section 3: The process of engagement of DIP consultants for specific projects including template letters (refer DIP Manual)
  4. Section 4: The terms of engagement for specific project contracts with DIP consultants (refer DIP Manual)
  5. Section 5: The services that may be required from the Consultant in accordance with the relevant DIP sub-panel statement of work (SOW)
  6. Section 6: The DIP Detailed Consultant's Activities Proposal (ie. Panel DCAP)
DIP Procurement and Evaluation Plan

3. Developing a Project Development and Delivery Plan (PDDP) and Evaluation Plan for a project is one of the first actions undertaken by a Project Officer in the development and delivery of a Defence Asset. The PDDP and Evaluation Plan templates (found on the IM Document Templates page) will include the justification and methodology for the procurement and evaluation of DIP consultancy services for the development and delivery of infrastructure projects. If a procurement from the Panel is one-off procurement not tied to the development and delivery of an infrastructure project the DIP Procurement and Evaluation Template may be used.

4. The purpose of developing a PDDP and Evaluation Plan, or where appropriate a DIP Procurement and Evaluation Plan is to ensure that Defence has considered all relevant project risks, procurement risks and delivery methodologies prior to commencement of a project or a procurement. In this manner, Defence (in accordance with ID Directive #16) provides visibilityy and transparency of internal procurement processes, meets governance requirements and achieves value for money outcomes.

Contractual Arrangements

5. There is a distinction between the terms governing the standing offer made by the DIP Consultant to Defence and the terms governing each contract for which the DIP Consultant is engaged:

(a) the Conditions of the DIP Standing Offer Agreement provide the broad contractual framework for the supervision and administration of the DIP and define the general legal relationship between the contracting parties;

(b) the Terms of Engagement provide the more detailed provisions governing the specific legal relationship between the contracting parties for each specific project engagement.

6. There is also a distinction between the DCAP applicable to the standing offer made by the Consultant to Defence and the DCAP applicable to each specific project contract for which the Consultant is engaged:

(a) the Panel DCAP for the DIP Standing Offer Agreement demonstrates:

(i) the Consultant's understanding of what Defence will require the Consultant to do; and
(ii) all aspects of the Consultant's approach which could distinguish that approach from that of other consultants,

both:

(iii) as a member of the Panel; and
(iv) in performing the Services; and

(b) the Services DCAP for each contract demonstrates:

(i) the Consultant's understanding of what Defence will require the Consultant to do; and
(ii) all aspects of the Consultant's approach which could distinguish that approach from that of other consultants, in performing the specific Services the subject of that contract.

Engagement Process

7. As and when Defence requires services to be performed by the DIP Consultant, it will invoke the engagement process set out in Section 3. This may be by way of competitive bid or there may be sole source arrangements.

8. Defence does not guarantee any volume of work for the DIP Consultant and Defence reserves the right to contract for services outside the DIP standing offer agreement. However, Defence recognises the benefits that will accrue to both it and the DIP Consultant when procurement involves members of the DIP participating in the performance of the Services.

Engagement of DIP Consultants by Commonwealth Contractors

9. Further, as set out in clause 2.8 of the Conditions of DIP Standing Offer Agreement, Defence may from time to time require the Consultant to be engaged directly by Commonwealth contractors rather than by Commonwealth. In that event, the DIP Consultant will be required to enter into a standing offer arrangement or other contract with the relevant Commonwealth contractor on the same terms as it has agreed with Defence (subject only to such amendments as may be required to take account of the fact that it will be a Commonwealth contractor, and not the Commonwealth, who will be the party engaging the DIP Consultant).

10. The primary purpose of this DIP Standing Offer agreement is to enable Defence to build a strong collaborative relationship with consultants who are prepared to invest time and allocate resources (in particular, human resources) to identifying, understanding and servicing Defence requirements. It is intended that this DIP arrangement and the communication processes which it engenders will facilitate this strong collaborative relationship to the mutual benefit of both Defence and the DIP Consultant.

Performance Management and Reporting System (PMRS)

11. The system referred to in clause 6 of the DIP Standing Offer Agreement, which will be set out in detail in the Defence Infrastructure Manual (located at DIP Manual Vol 3) or any other location notified by the DIP Manager, as amended from time to time.

12. The PMRS is designed to ensure the alignment of DIP Consultants' and Defence's procurement objectives and outcomes. A robust 360 degree performance review system will be implemented resulting in open communication and feedback between both parties.

13. The PMRS will also provide Defence with a tool for:

(a) recognising DIP members who consistently provide high quality services
(b) optimising relationships between Defence and DIP members

14. Both parties will be subject to a structured review process including:

(a) 360 degree Engagement Performance Review (EPR)
(b) Annual DIP Member Performance Review (APR)

15. Where issues on performance arise during the course of an engagement, the DIP Manager and the Consultants Representative will work together to address the concerns. The results from the performance reviews will form the basis of continuous improvement strategies, to consider ways by which DIP Consultants can improve quality and efficiency of services and how the Commonwealth can improve its business systems and processes.

16. The PMRS reports will be used (among other matters) to monitor the overall balance of work within the DIP, the level of competition and the kind of task each DIP member is being engaged to perform for various Defence stakeholders.

Structure of the Defence Infrastructure Panel (DIP) 2004-07

17. The DIP comprises three separate centrally administered sub-panels to support Corporate Services and Infrastructure Group (CSIG). The DIP covers the following business requirements:

(a) Sub-Panel 1 : Defence Infrastructure Planning Panel (DIPP).
(b) Sub-Panel 2 : Defence Infrastructure Procurement Services Panel (DIPSP).
(c) Sub-Panel 3 : Defence Infrastructure Specialist Services Panel (DISSP).

18. Under the Sub-Panel 1, the point of contact can be required to perform the following services: Strategic Planning and Capability Assessment; Force Disposition Studies; Development of Strategic Business Case (SBC); Planning; and Strategic Procurement Options Analysis including Private Financing.

19. Under the Sub-Panel 2, the point of contact can be required to perform the following services: Development of Strategic Business Case (SBC); Development of Detailed Business Case and Accompanying Documentation; Project Start-up and Preliminary Site Investigation; Selection and Engagement of Design Consultants and Design Management; Value Management; Selection and Engagement of Construction Contractors; Project Management and Contract Administration; Coordination with Comprehensive Maintenance Contract (CMC) contractor; Asset Maintenance and Planned Infrastructure Projects and Stakeholder Consultation. NB: It should be noted that the DIP Agreements do not provide for the provision of design services by Consultants. If there is a requirement to undertake design development work as part of the DBC Development, a separate Design Consultant is required to be engaged under a Design Services Contract (DSC-1 2003). This will require a separate procurement activity in accordance with Defence procurement policy.

20. Sub-Panel 3 consists of nine (9) sub-groups. Under each sub-group of the Sub-Panel 3, the DIP Consultant can be required to perform the relevant services:

(a) Acoustic Services, (point of contact)
(b) Aircraft Pavement Services, (point of contact)
(c) Airfield Ground Lighting Services, (point of contact)
(d) Fire Safety and Infrastructure Hazard Management, (point of contact)
(e) Fuel Farm Works and Appraisal, (point of contact)
(f) Construction Security Assessments and Security Planning, (point of contact)
(g) Spatial Information Surveys, (point of contact)
(h) Asbestos Surveys, (point of contact)
(i) Masts and Towers, (point of contact)

Previous Panel Standing Offer Agreement (ie. Estate Planning and Acquisition Panel (EPAP) 2001-2004)

21. The EPAP Agreement expired on 30 November 2004. Click here for Information relevant to the EPAP.

 

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