sl9/is1/ 30-7-99 armscor building. armscor results for financial year 2003/04
TRANSCRIPT
SL9/IS1/ 30-7-99
ARMSCOR BUILDING
ARMSCOR RESULTS FOR FINANCIAL YEAR 2003/04
THE ROLE OF ARMSCOR
ARMSCORARMSCORARMSCORARMSCOR
MINISTER OFPUBLIC
ENTERPRISES
MINISTER OFPUBLIC
ENTERPRISES
DENELDENEL
OTHER LOCAL SUPPLIERS
OTHER LOCAL SUPPLIERS
FOREIGNSUPPLIERSFOREIGN
SUPPLIERS
MINISTER OFDEFENCE
MINISTER OFDEFENCE
SANDFSANDF
OTHER LOCALCLIENTS
OTHER LOCALCLIENTS
FOREIGNCLIENTSFOREIGNCLIENTS
USE
RS
SUPPLIER
S
THE FUNCTIONS OF ARMSCOR
1. To acquire and to procure defence matériel for the Department of Defence;
2. To provide a quality assurance capability in support of the acquisition process;
3. To dispose of excess, redundant, forfeited or surplus matériel of the South African National Defence Force;
THE FUNCTIONS OF ARMCOR
4. To support and maintain strategic and essential defence industrial capabilities, resources and technologies as determined by the Department of Defence;
5. To render acquisition and procurement support to other organs of State or other sovereign states with the approval of the Minister.
WHY DOES ARMSCOR EXISTS
REASONS WHY WE NEED ARMSCOR:
Defence acquisition requires the application of engineering and science.
Public service remuneration system cannot support the technical skills required by Armscor
Public service management system will render Armscor ineffective (e.g. Dockyard).
Independent decision making body always produces best objective results (civilian oversight).
WHY DOES ARMSCOR EXISTS
ARMSCOR’S RELATION WITH DENEL Up to 1992 Denel was the
manufacturing capability of Armscor. Currently, Denel is one of the supplier to
Armscor and the DoD. Armscor treats Denel like any other
local supplier to the SANDF ( must be cost and product competitive)..
CHALLENGES FACING ARMSCOR
INADEQUATE FUNDING
Transfer payment only funds about 61% of the operational budget of Armscor and thus creates the budget problems;
Problems due to Inadequate funding; Employees salaries lag market Increased resignations Erosion of technical capabilities Inability to transform workforce Increased workload Inability to recapitalize organisation
Additional income R30 million added to transfer payment.
CHALLENGES FACING ARMSCOR
LONG-TERM SOLUTIONS Significantly increase the transfer
payment to cover entire Armscor budget Allow erosion of skills to the point where
organisation is unable to function. Supplement transfer payment with
additional income from commercial activities.
ADOPTED SOLUTION
Supplement transfer payment with additional income from commercial activities.
ARMSCOR FUTURE STRATEGIES
FINANCIAL OBJETIVES:• Sweating Armscor’s assets• Technology commercialization• Management of Simon’s Town Naval
Dockyard• Management of other DoD
outsourced functions (stock sales, etc.).
• Acquisition Service for SADC and AU. • Black Economic Empowerment
spending.
STAKEHOLDERS OBJECTIVE• Stakeholder management strategy• Corporate Social Investment• Improve internal and external
communication
ARMSCOR FUTURE STRATEGIES
INTERNAL IMPROVEMENT OBJECTIVES Benchmarking of Armscor Acquisition
process. IT infrastructure renewal. Improvement of business risk,
personnel risk and property security. Finalise the Armscor Act.
HUMAN RESOURCE OBJECTIVES Affirmative Action implementation. Pay for performance & market related
remuneration. Workforce renewal plan. Training and development. Employee wellness programme
STRATEGIC DEFENCE PARKAGES
STRATEGIC DEFENCE PACKAGES1. Patrol Corvettes (type Meko A-200):
o 4 purchasedo 9 months delay due to faulty cablingo All 4 ships (SAS Amatola, SAS
Isandlwana, SAS Spioenkop & SAS Mendi) delivered to SA contractor
o Currently fitted with combat Suiteo Commissioning into SA Navy starts
May/June 2005
2. Class 209 Mod 1400 Submarines 3 purchased One ship partially complete & ready
or sea trials 1st ship was delivered to the SA Navy in
Germany around July 2005 Crew currently being trained in Germany Other two ships currently being built &
will be completed in July 2006 and July 2007 respectively.
ARMSCOR FUTURE STRATEGIES
3. MARITIME PATROL HELICOPTERS (Super Lynx)
4 helicopters purchased (contract sigend 14 Aug 2003).
• Delivery of the helicopters is scheduled for June/July 2007.
4. LIGHT UTILITY HELICOPTERS (Agusta A109)
• 30 helicopters purchased• 7 to be manufactured by Agusta in Italy.• 23 are to be manufactured by Denel in SA• 4 of the 7 are complete & undergoing tests• Agusta transferred technology &
manufacturing know-how to Denel• Denel manufactured 3 of the helicopters.• One of the 3 Denel helicopters started
flying on 7 September 2004.
ARMSCOR FUTURE STRATEGIES
5. LEAD-IN FIGHTER TRAINER (HAWK) 24 purchased Denel manufacturing parts as part of DIP One aircraft in SA for test at TFDC 9 aircrafts are being assembled at Denel &
one completed Problems still encountered with
qualification of the Rolls Royce Mk 951 ‘Adour’ engine.
6. ADVANCED FIGHTER AIRCRAFT (Gripen)
19 single and 9 dual sitters purchased Denel manufacturing parts as part of DIP Manufacturing of first aircraft in Sweden
has commenced. 1ST aircraft will be delivered in SA by mid
2006. The last aircraft will be delivered in early
2012.
CONTAINERISED MEDICAL UNIT
TEC has supplied various medical facilities to the South African National Defence Force. Various modules were supplied making up complete self-contained hospital facilities. These facilities include:
•Sterilization
•X-ray
•Surgical Theatre
•Pathological Laboratory
•Wards(with 4 beds)
•Orthopaedic Units
•Ablution Units
•Physiotherapy Units
•Dentistry Units
•Incubator Units
•Intensive Care Units
•27 units were supplied to Bosnia comprising 2 full operating theatres.
•One fully fledged theatre was also supplied to India.
ARMSCOR PRESENTATION
THE END
THANK YOU