defence logistics transformation program (dltp) industry briefing 20 feb.pdf · joint logistics...
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JOINT LOGISTICS COMMAND
Defence Logistics Transformation Program (DLTP)
Brief to Industry
20 February 2012
JOINT LOGISTICS COMMAND
This Industry Briefing is being conducted to provide background information only in relation to the Defence Logistics Transformation Program. It does not form part of the proposed Program procurement processes.
The information provided at this Industry Briefing is indicative only and is subject to change.
Defence accepts no responsibility or liability for any representations or information provided at this Industry Briefing.
JOINT LOGISTICS COMMANDDefence Logistics Reform: Logistics to train, fight and win
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Presentation Contents
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Topic Presenter
Opening Address Air Vice Marshal Margaret StaibCommander Joint Logistics
DLTP Overview Mr. Dave McGaheyProgram DirectorDefence Logistics Transformation Program
Logistic Services Scope Mr. Dave McGahey
W & D Scope Mr. Dave McGahey
LMM Scope Mr. Dave McGahey
Service Delivery Interface Considerations Mr. Dave McGahey
International Traffic in Arms Regulations Considerations Mr. Dave McGahey
Information and Communication Technology Mr. Dave McGahey
Collaborative Innovation Colonel Andy MacleanDirector RetenderingDefence Logistics Transformation Program
Site Visits Colonel Andy Maclean
Infrastructure Mr. Dave McGahey
Transition Mr. Dave McGahey
Indicative Timeline Mr. Dave McGahey
Next Steps Mr. Dave McGahey
Conclusion and Questions All
JOINT LOGISTICS COMMANDDefence Logistics Reform: Logistics to train, fight and win
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Purpose
The purpose of this presentation is to provide additional information for prospective tenderers regarding:
Warehousing & Distribution (W & D) services Request For Tender (RFT)
Land Materiel Maintenance (LMM) services RFT
Logistics Innovation
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JOINT LOGISTICS COMMANDDefence Logistics Reform: Logistics to train, fight and win
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Previous Briefings
It is recognised that attendees have attended/viewed previous Industry Briefs (18 Apr 11, 2 Nov 11), where background information about the program was provided and that information will not be replicated in this briefing Probity processes outlined in the presentation on 2 Nov 11, in particular the guidelines relating to the formation of consortia, remain in forceArchived briefs are available on the DLTP internet site: http://www.defence.gov.au/jlc/DLTP_Pages/Industry_Briefings_Archive.html
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JOINT LOGISTICS COMMAND
OPENING ADDRESS
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JOINT LOGISTICS COMMAND
DEFENCE LOGISTICS TRANSFORMATION PROGRAM OVERVIEW
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JOINT LOGISTICS COMMANDDefence Logistics Reform: Logistics to train, fight and win
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Overview
The Defence Logistics Transformation Program (DLTP) offers a generational opportunity for Defence, in collaboration with industry, to make unprecedented improvements to the logistics network in respect of infrastructure, technology and logistics service delivery. DLTP provides for:
the alignment to Strategic Reform Program logistics stream savings
the opportunity for transformation of the Defence logistics network
an improved contracting approach and outcomes
collaborative service delivery
DEFENCE LOGISTICS TRANSFORMATION PROGRAM
OVERVIEW8
JOINT LOGISTICS COMMAND
LOGISTICS SERVICES SCOPE
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JOINT LOGISTICS COMMANDDefence Logistics Reform: Logistics to train, fight and win
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Scope of Services
DLTP is proposing to seek logistics services from the commercialmarket with two discrete RFTs. The resultant contracts are intended to replace the:
Defence Integrated Distribution System contract;
Albury Wodonga Military Area contract for warehousing and land materiel maintenance; and
Hunter Valley Military Area Logistics Services contract.
LOGISTIC SERVICES SCOPE10
JOINT LOGISTICS COMMAND
W & D SCOPE
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JOINT LOGISTICS COMMANDDefence Logistics Reform: Logistics to train, fight and win
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‘In Scope’ Defence Inventory
General Inventory which does not require special management and handling
Large, oversized and bulk equipment such as bridging and engineering stores
High Security Items which are sensitive and attractive
Equipment Pools held nationally or regionally available for loan by customer units
Dangerous Goods including hazardous goods and radioactive substances
Vehicles and associated equipment
Protective and Monitoring Equipment with climate controlled storage
Deep Storage Inventory that requires alternate storage methods
Shelf Life and Batch / Lot inventory that has a limited life / ‘use by date’ and requires specific traceability
12 WAREHOUSING AND DISTRIBUTION SCOPE
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Warehousing Services
Inbound.
Planning and execution of receipt of inventory into storage locations
Inventory will originate from Defence’s suppliers, other contractors, customer units, and other sites in the network
Storage. Maintaining inventory in storage including:
Inventory accuracy
Maintenance-in-storage for specific inventory
Outbound. Planning and execution of:
Issuing inventory to customer units, other contractors or suppliers
Consolidation and despatch of consignments
13 WAREHOUSING AND DISTRIBUTION SCOPE
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Warehousing Services
Support to Operations & Exercises. Providing labour support within Australia to sustain Australian Defence Force operations and training exercises including:
Consolidating, despatching and receipting cargo to and from operations, exercises and activities
Storing specialist vehicles, equipment and stores
Kitting of forces with equipment for operations
Disposal Services. Conducting disposal activities including:
Disposing of inventory through prescribed disposal methods including sale/auction or destruction
Processing documentation and payments
14 WAREHOUSING AND DISTRIBUTION SCOPE
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Distribution Services
Planning and execution of distribution, in conjunction with the warehousing services, including:
Distribution of priority and routine freight (including vehicles) to a site or between units within Australia
Adherence to site specific service level agreements or agreed delivery timeframes
Providing visibility of status of distribution tasks
Loading/unloading freight at origin and destination (when required)
Providing temperature control and other specialised requirements(e.g. escorts for specialised equipment)
15 WAREHOUSING AND DISTRIBUTION SCOPE
JOINT LOGISTICS COMMAND
LMM SCOPE
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The maintenance requirements to be managed within the logistics network relate predominantly to land based equipment operated byArmy, Navy and Air Force. Equipment may include:
armoured and protected mobility vehicles
light, medium and heavy general transport vehicles
engineering plant and equipment
weapons and small arms
electronic, instrument and radio, and test equipment
a limited range of marine equipment
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Scope of LMM Services
LAND MATERIEL MAINTENANCE SCOPE
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Roles and Responsibilities
It is intended that:
Defence retains responsibility for the management of LMM in a collaborative
arrangement with the Contractor
Contractor Personnel co-located with Defence will work together on planning
and scheduling activities
The Contractor will be largely responsible for the day to day operation of the
relevant functional areas in the workshop
The Contractor will be accountable for equipment under repair and Defence
provided materiel such as repair parts, specialist tools, jigs and fixtures
The Contractor will be accountable for the quality of the work it performs
LAND MATERIEL MAINTENANCE SCOPE
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Impact of Defence Materiel Organisation LMM Sustainment Contracts
LMM of vehicles/equipment within the Defence logistic network will continue to
be a core requirement but may be subject to the following changes:
A likely reduction in heavy grade repair and rebuild, offset by an increase
in regional equipment pool maintenance workload
LMM work will be rebalanced across the network and not necessarily
concentrated in the existing heavy repair sites
It is intended that Joint Logistic Command, Defence Materiel
Organisation and the Contractor will work collaboratively to bring new
Defence LMM work into the network
19 LAND MATERIEL MAINTENANCE SCOPE
JOINT LOGISTICS COMMAND
SERVICE DELIVERY INTERFACE CONSIDERATIONS
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Defence has accountability to manage the effective interface of the
W & D and LMM functions, and each Contractor will have specific
responsibilities and obligations
Defence recognises the criticality and interdependence of the
interface between W & D and LMM services
Defence has reviewed the relevant processes will identify the
required Contractor interfaces in the RFT
Service Delivery Contractor Interfaces
21 SERVICE DELIVERY INTERFACE CONSIDERATIONS
JOINT LOGISTICS COMMAND
INTERNATIONAL TRAFFIC IN ARMS REGULATIONS
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What is ITAR?
International Traffic in Arms Regulations (ITAR) govern the use of United States (U.S.) Defense inventory
Access by the Australian Defence Force to certain U.S. Defense inventory is conditional upon:
it only being used for the purposes authorised
it not being transferred from Defence to any third party without U.S. State Department approval
products not being transferred by any means to a company or individual in Australia or overseas without U.S. State Department approval
23 INTERNATIONAL TRAFFIC IN ARMS REGULATIONS
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Why ITAR Applies to DLTP
24 INTERNATIONAL TRAFFIC IN ARMS REGULATIONS
A portion of Australian Defence inventory is US sourced and ITAR
controlled. Therefore, W & D and LMM contractors must be ITAR
compliant and have obtained U.S. authorisation
W & D and LMM Contractors are third parties for the purposes of
ITAR
JOINT LOGISTICS COMMANDDefence Logistics Reform: Logistics to train, fight and win
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ITAR Compliance Requirements
25 INTERNATIONAL TRAFFIC IN ARMS REGULATIONS
Pre Assessment Process
1. Defence advertises tenders and requests registration
2. Defence issues Deed of Confidentiality and Fidelity and letter to prospective tenderers requesting corporate information
3. Prospective tenderers respond with executed Deed and entity / consortia information
4. Defence submits ITAR pre-assessment to US State Department
5. US State Department provides response
6. Prospective tenderers are notified of approval or non approval
Final Approval Process
Defence assists to facilitate the approval process with preferred tenderer/s and the U.S. State Department on a case-by-case basis
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Tender Response Considerations
26 INTERNATIONAL TRAFFIC IN ARMS REGULATIONS
Rapid responses by prospective tenderers to the Deed of
Confidentiality and Fidelity and accompanying letter will assist in
obtaining a timely pre-assessment from the U.S. State Department
All tendering entities, including subcontractors, are required to be
ITAR compliant
Defence reserves the discretion not to proceed to contract with a
preferred tenderer, if US State Department authorisation is not
forthcoming
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Prospective Tenderers are responsible for any costs incurred for
achieving ITAR compliance. Further information can be found at:
http://www.pmddtc.state.gov/regulations_laws/itar_official.html
Further information on ITAR compliance can be found at: http://www.defence.gov.au/strategy/deco/publications/brochures/screen.pdf
Tender Response Considerations (cont.)
27 INTERNATIONAL TRAFFIC IN ARMS REGULATIONS
JOINT LOGISTICS COMMAND
INFORMATION AND COMMUNICATION TECHNOLOGY
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WarehousingInformation and Communication Technology
The Military Integrated Logistics Information System (MILIS) will remain
the ‘system of record‘ for Defence inventory
Defence will source a Warehouse Management System to be interfaced
into MILIS
Fixed and wireless networks will support the Warehouse Management
System and will be made available to the Contractor
Information regarding the logistics systems will be provided to
prospective tenderers
29 INFORMATION AND COMMUNICATION TECHNOLOGY
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Defence will require the Contractor to present certain distribution
data from the Contractor’s system for managing freight movement to
Defence’s Cargo Visibility System (CVS)
Data requirements will be provided to prospective tenderers
DistributionInformation and Communication Technology
30 INFORMATION AND COMMUNICATION TECHNOLOGY
JOINT LOGISTICS COMMAND
COLLABORATIVE INNOVATION
JOINT LOGISTICS COMMANDDefence Logistics Reform: Logistics to train, fight and win
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Collaborative Innovation
Collaborative innovation is a culture that embraces innovation and continuous improvement in the management
of the transformed Defence logistics network.
32COLLABORATIVE INNOVATION
JOINT LOGISTICS COMMANDDefence Logistics Reform: Logistics to train, fight and win
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Innovation Responses to the RFT
Defence intends to invite prospective tenderers in both the W & D and
LMM RFTs to propose its approach to innovate and continuously
improve the Defence Logistics system such that levels of service are
maintained or improved, while the total cost to serve is lowered
over time
Defence recognises that the addition of commercial logistics
experience, knowledge and input into the operation of the logistics
network is a key driver of the innovation it seeks and will evaluate
proposed solutions from tenderers as to how this might best be
achieved
33COLLABORATIVE INNOVATION
JOINT LOGISTICS COMMANDDefence Logistics Reform: Logistics to train, fight and win
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It is intended that the proposed capability which will drive this
innovation and continuous improvement will work collaboratively
with Defence to identify, implement, measure and sustain any such
improvements
Collaboration is also intended to enable genuine knowledge
sharing with Defence personnel and to further develop commercial
capacity to manage the delivery of logistics services
Innovation Responses to the RFT
34COLLABORATIVE INNOVATION
JOINT LOGISTICS COMMANDDefence Logistics Reform: Logistics to train, fight and win
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In addition to the other requirements of the RFT, Defence anticipates it
will seek responses that articulate:
a proven track record in innovation and continuous improvement
through the life of similar commercial undertakings
how the total cost of operations can be lowered while service levels
are maintained or improved
a system of measurement and reporting of innovation and benefits
Innovation Responses to the RFT
35COLLABORATIVE INNOVATION
JOINT LOGISTICS COMMANDDefence Logistics Reform: Logistics to train, fight and win
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Defence will consider sharing the demonstrable benefits from these
improvements
Tender responses will need to be prepared having regard to:
The Commonwealth regulatory and governance framework
Primacy of the military command at all levels
The need to use Defence ICT and facilities
Innovation Responses to the RFT
36COLLABORATIVE INNOVATION
JOINT LOGISTICS COMMAND
SITE VISITS
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RFT Site Visits for Prospective Tenderers
Site visits form a critical component of the tender process and will take
place early in the tender response period
Site visits will commence about 2-3 weeks after the release of the RFTs
This is a one-off opportunity for prospectivel tenderers to be involved –
supplementary visits will not be offered
Limits may be placed on the number of bid team members who will be
able to take part in the visits
The site visit registration process and conditions will be described in
each RFT
38SITE VISITS
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RFT Site Visits for Prospective Tenderers
All seven major sites will be visited. In addition, selected specific/unique
secondary sites may also be visited including:JLU(N). One day - RAAF Base Darwin, Winnellie, Robertson Barracks
JLU(NQ). One day - Lavarack Barracks and RAAF Base Townsville
JLU(SQ). One day - Bulimba Barracks, and Meeandah
DNSDC. Two days - Moorebank, West Wattle Grove, Singleton and RAAF Richmond
JLU(V). Two days - Bandiana and Puckapunyal
JLU(S). One day - Warradale Barracks and RAAF Base Edinburgh
JLU(W). One day - Palmer Barracks and HMAS Stirling
39SITE VISITS
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RFT Site Visits – Key Planning Factors
Visits will be coordinated by DLTP, however, hosted and conducted
by each JLU in the network
Visitors to all sites will be escorted by Commonwealth personnel
Tenderers are responsible for their own travel and associated costs
between sites
The general theme of the presentations will be ‘a day in the life’ of a
JLU, describing its key management functions, processes and
facilities use
40SITE VISITS
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Site Visit Program – Indicative Schedule
Length of the Site Visit Program is:
LMM: 10 working days
W & D: 10-12 working days
Mon Tue Wed Thur Fri Mon Tue Wed Thur Fri Mon Tue Wed Thurs
LMMTsvl Brisbane Sydney Sydney Albury Pucka Adelaide Perth Travel Darwin
W&D TEAM AAlbury Pucka Adelaide Perth Travel Darwin Travel Tsvl Brisbane Brisbane Sydney Sydney
W&D TEAM B (if reqd) Darwin Tsvl Brisbane Brisbane Sydney Sydney Albury Pucka Adelaide Perth
41SITE VISITS
JOINT LOGISTICS COMMAND
INFRASTRUCTURE PROJECT
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DLTP Infrastructure
Works Package 1 (Moorebank and Bandiana)
50% Design – Late March 2012
Work Package 2 (Brisbane)
30% Design– Late February 2012
Works Package 3 (Townsville)
50% Design – Mid May 2012
Works Package 4 (Darwin)
50% Design – Mid May 2012
Works Package 5 (Adelaide)
50% Design – Late March 2012
Works Package 6 (Perth)
50% Design – Late March 201243
INFRASTRUCTURE PROJECT
JOINT LOGISTICS COMMAND
TRANSITION
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J J
Program Phase
Indicative Transition Phasing2013 2014 2015
A M A S O N D J F M A M J J A S O N D J F
LogisticsServices
Facilities
Stock Migration
ICT
Stock Migration Period
WMS Implementation
Facilities Transition Period
W&D and LMM Services Transition Period
Phase 2 Phase 2 ‐‐ Logistics Services TransitionLogistics Services Transition
Phase 3 Phase 3 ‐‐ Site MigrationSite Migration
JLCC
ontractor(s)E
nabler
Organisation Organisation Changes Changes
45TRANSITION
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INDICATIVE TIMELINE
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JOINT LOGISTICS COMMANDDefence Logistics Reform: Logistics to train, fight and win
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Procurement ProcessesIndicative Timing
• Deed of Confidentiality and Fidelity Planned by end February 2012
• W & D RFT and LMM RFT release Planned by end June 2012
• Industry briefings 7-10 days after RFT release
• Site visits 12-16 days after RFT release
• LMM Tender close Planned 3 mths after RFT releaseby end September 2012
• W&D Tender close Planned 4 mths after RFT releaseby end October 2012
• LMM Tender evaluation and selection completed Anticipated by end January 2013
• W & D Tender evaluation and selection completed Anticipated by end April 2013
• W & D and LMM Services transition commences 1 July 2013
47INDICATIVE TIMELINE
JOINT LOGISTICS COMMAND
NEXT STEPS
JOINT LOGISTICS COMMANDDefence Logistics Reform: Logistics to train, fight and win
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Deeds of Confidentiality and Fidelity
The next step will be the release of the Deeds of Confidentiality and Fidelity to prospective tenderersThe Deeds will be available shortly after this Industry Brief and will be advised on AusTender and in newspaper advertisementsThe execution of a Deed by potential tenderers:
Is necessary to receive the relevant RFT documentation;Will be a condition for participation in the relevant tender process; andthe subsequent provision of additional information is intended to facilitate the commencement of the ITAR pre-approval process
49NEXT STEPS
JOINT LOGISTICS COMMAND
CONCLUSION AND QUESTIONS
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