DMO News: Getting on with the job | ADM Oct 2010
Shireane McKinnie | Canberra
At the start of this year I confirmed in an interview with ADM that new maintenance contracts had been signed for our Seahawk and Black Hawk fleets.
Through competitive tender processes conducted in 2009 the Defence Materiel Organisation’s Helicopter Systems Division secured an improved value for money outcome for the Commonwealth.
The new contracts embed key Strategic Reform Program (SRP) principles including incentives for efficiency and a better contract risk sharing balance for both parties.
The Black Hawk deeper maintenance contract includes scope for up to nine deep maintenance activities in each calendar year, and replaces a standing offer arrangement.
One element of the SRP plan for Black Hawk that has already been completed is the validation of both the maintenance task descriptions and the associated time and cost assumptions.
This is critical to achieving better forecasts of payments to be made against the performance-based contract.
It also means that all parties have an agreed baseline from which to undertake analysis of future cost reduction opportunities.
The scope of work under the new Seahawk contract is much larger than the Black Hawk arrangement. It includes major servicing, some operational-level maintenance and component repair activities as well as spares provisioning and training services.
The new Seahawk contract represents a saving of more than 10 per cent over the same workload completed under the previous arrangements.
In addition, the contract provides incentives for BAE and Defence to achieve further reform-led efficiencies over the life of the contract.
SRP initiatives for the Royal Australian Navy Fleet Air Arm (FAA) are sponsored by the Directorate of Navy Continuous Improvement (DNCI) and implemented by a team comprising Navy, DMO and specialist business improvement contractor personnel.
The main Seahawk initiative that is currently underway is focused on improving operational level maintenance conducted at 816 Squadron.
The aim is to reduce the scheduled maintenance timeframe from the current state (17 weeks) down to a sustainable 8-10 weeks.
Results will include improved flying Rate of Effort (ROE), improved maintainer morale and greater opportunity for on-the-job training for junior and senior maintainers alike.
Improving maintenance lead times is just one element of this project.
Efficiencies are also being achieved through better management of training and implementing improved logistics and engineering processes.
A complete review of related aircraft spares inventory will also be undertaken.
Another area of activity is in improving the Squirrel Helicopter capability.
The focus here is on improving the efficiency and effectiveness of the capability delivered by 723 Squadron.
This will be achieved through a comprehensive review of the capability as a whole, and close attention to the various subsets of training, logistics, maintenance, engineering and other support systems.
Prime contractors BAE Systems and Raytheon Australia hold the current Seahawk and Squirrel Support contracts respectively.
Close engagement with the continuous improvement process is being achieved through working groups established under the new contracts.
Both contractors have assigned specialist Lean/Six Sigma practitioners who are working to remove waste at all levels of the contracts.
For DMO and Navy, a senior-level SRP Steering Group is ensuring that real and sustainable reforms are achieved in the way that Seahawk and Squirrel fleets are sustained.
The DMO continues to work closely with its lead customers in Army and Navy to achieve efficiency while delivering enhanced rotary wing capabilities for the ADF.
Support from industry suppliers including BAE Systems and Raytheon has been – and will continue to be – critical to our success.