Projects: Infrastructure moves ahead with major projects for 2013 | ADM December 2012/January 2013

Managing the Defence estate is not an easy undertaking, particularly when the landholding is arguably the largest and most complex in the country.

The Infrastructure Division, residing within the newly restructured Defence Support and Reform Group (DSRG), is charged with this responsibility and in 2012 it had a budget of $1.3 billion to oversee an estate which currently comprises of around 400 owned and 350 leased properties and 72 major bases around Australia.

As with every other organisation, the Infrastructure Division is seeking new and innovative ways to deliver services and works projects which benefit Defence and Government.

Two major works projects are set to gain significant traction in 2013 and others will continue to deliver enhanced living accommodation for serving Defence personnel.

Defence Support and Reform Group

The Defence Support Group (DSG) expanded to DSRG in October 2012 when the Ministerial and Executive Coordination and Communication (MECC) Division, and the Strategic Reform Management Office (SRMO) transferred into DSG. Prior to the transfer MECC and SRMO reported directly to Defence’s Chief Operating Officer, Mr Simon Lewis.

DSRG provides support services to more than 98,000 Australian Defence Organisation (ADO) members, Reservists, and contractors and is made up of five divisions: Defence Support Operations (DSO), Reform and Corporate Services (RCS), MECC, SRMO and the Infrastructure Division (ID).

2012 – Significant achievements despite a difficult year

Throughout 2012 the Infrastructure Division continued to manage the estate and deliver major capital works projects as planned. Looking ahead to 2013, John Owens, Head of the Infrastructure Division says it will continue to build on the work already completed, whilst continuing to find ways to achieve outcomes which realise greater efficiencies for Defence.

“Across the estate we’re still rolling out projects, we’re still managing the environment and we remain really focussed on the issues of workplace health and safety,” he said. “We need to prioritise strategically – to examine the projects we currently have in our space and decide which are the most important, in terms of input to capability and the impact on the work health and safety of our workforce.”

There are several major construction projects underway at the present time, and 2013 will see several more get underway, as the Defence landholding adapts to the evolution of Defence as a whole.

Two projects which have progressed significantly during 2012 have been the Single Living Environment & Accommodation Precinct (LEAP) 2 and Moorebank Relocation projects, each of which is a Major Capital Works Project.

Single LEAP 2 is building new accommodation at several bases around the country, with the Townsville precinct now nearing completion. Early in 2013 the work on Single LEAP 2 facilities at Edinburgh is expected to follow suit.

The Government signed a contract with Plenary Living Pty Ltd in March 2011 for the provision of 3015 single members’ accommodation units at 14 bases across the country. Work is currently scheduled to conclude in early 2014 and follows on from the now-complete LEAP 1 construction program, which provided 1,395 residential units at Holsworthy, Enoggera and Amberley.

“Across the country, LEAP 2 is making very good progress. It’s been somewhat of a long and troubled project in some ways, but now that I see it being rolled out I think it will provide wonderful facilities for our soldiers, sailors and airmen and women, in terms of good accommodation,” Owens said.

The Parliamentary Standing Committee on Public Works approved the $870 million funding for the Moorebank Units Relocation (MUR) project in September, clearing the way for the relocation of 13 Defence units, including the School of Military Engineering, to relocate from the facilities at Moorebank to Holsworthy.

“The Moorebank Units Relocation project is a very large undertaking, and we began work on that in October,” Owens said. “When it’s complete it will be a great outcome for the Royal Australian Corps of Engineers.”

Defence Support Services Summit

Another highlight of 2012 was the inaugural ADM Defence Support Services Summit, held in Melbourne in August. Over 200 delegates were present from Defence and Defence Industry and the two-day event was used to canvass a range of issues of mutual interest and foster a closer working relationship.

“We were pleased with the Summit, particularly with the range of speakers and topics covered. Certainly we received some good feedback from industry about the sorts of things we had to say,” explained Owens.

An open relationship between Defence and Industry is something that the Infrastructure Division, under Owens’ leadership, has been keen to foster, but the relatively slow and sometimes publicly sensitive nature of major infrastructure projects can often make this difficult.

“We need to be careful about how far out we publicly announce our plans. We cannot pre-empt Government, typically we are able to announce plans following Government agreement when we’re well down the path of project development.

“It’s something that we wrestle with industry about, and I understand they like to have as much notice as they can, to gain a sense of what’s coming down the turnpike. We need to come up with a process where we can have a conversation with industry which doesn’t pre-empt Government decision making, but at least gives industry some sort of sense of what our thoughts are,” he explained.

“That’s a complex challenge for us in this environment. We are still working on some of the ideas I raised at the Summit, where we could perhaps arrange some form of confidential industry briefings.”

Major projects for 2013

Two of the major projects of 2012, the Single LEAP 2 and Moorebank Unit relocation activities will also continue throughout 2013.

LEAP 2 will continue with works at Wagga, Townsville (Lavarack Barracks), Larrakeyah, Bandiana, Kapooka, Watsonia, Puckapunyal, Nowra, Swanbourne, Duntroon and ADFA before the completion of facilities at Robertson Barracks in Darwin finally bring the construction project to a close in early 2014.

The Moorebank relocation project will also make significant progress throughout 2013 and, on current planning, is expected to be complete by October 2015.

A further project getting into its stride during the year will be the Defence Logistics Transformation Program (DLTP), which will oversee either the construction of new facilities and infrastructure, or the enhancement of existing facilities, at East Bandiana, HMAS Stirling & Guildford, Moorebank, Amberley, Edinburgh, Robertson Barracks and Townsville (Lavarack Barracks).

“DLTP is a very large project, being undertaken as it is at a number of sites around the country, looking at improved warehouses and services and facilities for Logistics Command,” Owens explained to ADM. “It has recently passed through the Public Works Committee process and, with the MUR work, is one of the two big projects gaining traction in 2013.”

Looking To The Future

In the meantime however, the Division is looking at further efficiencies to provide added value for money given the budgetary environment the agency faces with the rest of the department.

“We need to look at everything on two levels. We need to prioritise project by project, but within projects we need to make sure we’re really focussed on the priority items, the scope items in each project,” he said. “We also need to look at innovative ways of delivering projects to get the ‘best bang for our buck’ – looking at things like Building Information Modelling (BIM) and pre-fabricated buildings. We really need to look to innovative ways of completing projects as efficiently as we can.”

Owens also flags the need to manage estate maintenance very carefully, to ensure that the work is also being carried out as efficiently as possible whilst adhering to the Commonwealth and State workplace health and safety laws.

“It’s really a question of focussing strategically, making sure we have the right priorities from an Infrastructure Division perspective,” he says.

Engagement with industry will remain a key aspect of future activity, in order to achieve the best outcome for all. “DSRG is very much focussed on its role of supporting the Defence organisation and we need to work with our internal stakeholders, the other groups and services within Defence, and industry in an open, transparent way to get the best outcome,” he said.

“We also need to continue our search for innovative ways of doing business. We need to focus on ways of doing business better, managing expectations and focussing on the more important things. The group is in good shape and we are looking forward to continuing our role of supporting the Defence organisation. However the estate presents challenges that we need to manage closely.”