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Page 32 Senate Wednesday, 1 March 2017 requirements for the fleet commander consistently. So there has been a dramatic improvement in availability of the Collins. The next benchmark that Coles was driving us towards, which he has given us until I think 2020 on, was to actually look at ensuring that we had maximised the effectiveness—that is, the cost in sustaining—and that we were spending only that which was needed to be able to provide that availability that we have achieved from last year. Senator FAWCETT: Thank you. Mr Richardson: We got Mr Coles back ourselves last year. It was not under any—it was our own initiative. Mr Coles flagged the progress that had been made as remarkable. He said the biggest risk we faced was complacency. Because of that, we intend to get him back at regular intervals. Senator REYNOLDS: I just had the pleasure of attending on behalf of the minister your birthday celebrations for the Royal Australian Navy today. I just wanted to say, on behalf of everybody here, happy 116th birthday to the Navy. It was a day of anniversaries. Not only is it your birthday but it is also the 50th anniversary of the Australian White Ensign and also the 75th anniversary of the sinking of HMAS Perth and her 300-plus complement. I just wanted to let you know that your men and women this morning did you proud. It was a beautiful commemorative service down on Anzac Parade. Senator Payne: Thank you for attending. Senator REYNOLDS: I was really delighted to. It would be remiss of me not to note that there is another service that has a birthday today. Of course, that is Army as well. That is all—thank you, Chair. I just wanted to thank you and tell you that it was wonderful. Senator Payne: Chair, it is worth noting also, as it is the 75th anniversary of the sinking of HMAS Perth, that the director of the Australian War Memorial advised me yesterday that he has arranged for the bell of HMAS Perth to be at the War Memorial to be rung at the last post in commemoration, which I think is a special observation as well. Senator REYNOLDS: There is just one more thing, Chair. CDF, thank you very much to VCDF and the staff who supported the Joint Standing Committee on Foreign Affairs and Trade subcommittee hearing on the annual report. I had really fantastic feedback from the members who attended, particularly the House of Representatives colleagues who do not get the opportunity to get into as much depth in a portfolio. We were very grateful for the briefing and the effort that went into it. Can you pass on, on behalf of all committee members, our thanks as well. Air Chief Marshal Binskin: I appreciate you acknowledging that, Senator. Senator XENOPHON: I have a line of questioning in relation to the issue of ration packs. As I understand it, there is a tender out for the ration packs for the Army. Is that correct? Major Gen. Coghlan: It is for the Australian Defence Force. Senator XENOPHON: It is not just for the Army—it is for the entire Defence Force? Air Chief Marshal Binskin: The other services have to eat too, Senator. Senator XENOPHON: I did not know whether the other services—whether there was a naval ration pack or an airforce ration pack. Air Chief Marshal Binskin: No, it is an ADF ration pack. Senator Payne: We could send some around. I know how hard you work. You are always at your desk. Senator XENOPHON: Just add water. With no disrespect to our Anzac brethren, can you tell me how we got to a point where a New Zealand company supplies the Australian Defence Force with its food for our troops on the battlefield, when they need their ration packs? Major Gen. Coghlan: The New Zealand company is the prime vendor for ration packs. They are not the exclusive source for the items that go in that ration pack. They are the organisation or company that brings together the various components of the ration pack. There can be up to 43 components in order to produce a ration pack. The prime vendor arrangement for that was created in June 2009. That significantly reduced the administrative workload for Defence. The extension on that contract has recently run out and we released a new tender for combat ration packs in September 2016, followed by an industry briefing in November. The tender closed on 28 February this year. Senator XENOPHON: Of those 43 items, can you give me an idea in broad terms how many of those were Australian? I do not need to know the ingredients, but can you tell me how much of that is Australian-made, Australian-processed food? FOREIGN AFFAIRS, DEFENCE AND TRADE LEGISLATION COMMITTEE
Wednesday, 1 March 2017 Senate Page 33 Major Gen. Coghlan: For an indicative one-man ration pack, 11 items or 25 per cent are Australian in origin; 56 per cent are New Zealand in origin; and the remaining 19 per cent come from the United States, Vietnam or China. I can go through individual items to give you an idea of the type of product if you like. Senator XENOPHON: If you are on a roll, why not. Just give us an idea. Senator Payne: This could take a while, Senator. I can actually see the page that this is written on. Would you like to have it provided on notice? Senator XENOPHON: I might get it tabled, but just give me an idea. What is Australian? Major Gen. Coghlan: Sure. I might go from the other end—what is not Australian and New Zealand. The Chinese sourced items are very basic in nature—matches, spoons, 10 sheets of toilet paper. Senator XENOPHON: You do know that Kimberly-Clark makes toilet paper in the south-east of South Australia, don't you? CHAIR: You are interrupting, of course, and wasting time. We are up to toilet paper. Keep going. Major Gen. Coghlan: And can-openers. As far as the food items are concerned, it depends on where the contractor sources it from. The Australian food component and the New Zealand food component vary. In this particular case I can go into detail for one particular ration pack at a given point in time. Senator XENOPHON: Can you tender that? Are you in a position to tender that? Major Gen. Coghlan: I can tender it. Senator XENOPHON: If that can be tendered through you. Air Chief Marshal Binskin: You are doing take-away, are you, Senator? Senator XENOPHON: That is right. Air Chief Marshal Binskin: I was just checking. Senator XENOPHON: Air Chief Marshall, I did not know you had that sense of humour. Senator Payne: Yes, you did. We have to have a sense of humour to get through this process. Senator XENOPHON: Not during estimates. If that can be tendered—can that be tendered now? Major Gen. Coghlan: Yes. It is double-sided. I will provide you with a single-sided— Senator XENOPHON: That is fine. The new procurement rules that the Commonwealth has agreed to have come into force today. To what extent do they apply to Defence in terms of the requirement for Australian standard goods, looking at the economic impact of any purchases over $4 million? Mr Gillis, can you tell me to what extent—there will be an inquiry into procurement specifically, but will the new rules apply to any decision made by the Commonwealth in respect of the ration pack? Mr Gillis: I will ask my acting first assistant secretary for contracting and procurement, Ms Bergmann, to answer that question. She is specifically prepared for that. Senator XENOPHON: Ms Bergmann, you are familiar with the new procurement rules that come into force today? Ms Bergmann: Absolutely. Senator XENOPHON: Will they be applying to this tender? It is worth how much approximately? Major Gen. Coghlan: The last contract value was $89 million over an eight-year period. This tender closed on 28 February. Senator XENOPHON: So it is going to be over $10 million a year presumably? What will this be—in the order of at least $10 million a year presumably? Major Gen. Coghlan: Depending on the operational requirement or demand, it will vary. Senator KIM CARR: I was following that, but I did not quite hear you say that the new procurement rules apply to the contract. Senator Payne: It is not answered yet. Ms Bergmann: As you would know, the new CPRs come into effect today. Senator XENOPHON: It is a beautiful thing too. Ms Bergmann: Indeed. They do not apply to tender processes that commenced prior to 1 March. Senator XENOPHON: Is there any intent to conform with the spirit of those new tender processes— Australian made, taking into account ethical employment practices, environmental standards and the economic FOREIGN AFFAIRS, DEFENCE AND TRADE LEGISLATION COMMITTEE
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