Defence Business_Issue 41 (Nov 17 – Jan 18)_DTC_Web

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30 November/December 2017/January 2018 Defence Business Australia's defence infrastructure challenge The nation is gearing up to deliver on $89 billion in naval shipbuilding projects, and hand in hand with this economic boom is billions of dollars of defence infrastructure projects, with South Australia alone currently holding $1.2 billion worth of infrastructure projects across land, sea and air. Infrastructure is one of the most critical factors for economic development, and encompasses more than just utilities and transport. Defence precincts in particular provide the opportunity to create advanced manufacturing and technology centres of excellence in Australia, which in turn make exporting globally grow from a possibility to a reality. And SMEs will play a big role in realising defence potential, from expanding their capability to bringing in employment opportunities. Nigel Brophy, Principal of Asset Development Services, has a background in property and infrastructure particularly in planning, development and funding large and complex projects through Australia and New Zealand. He explains that robust engagement between capital, procurement and operational strategy is critical to the effective delivery of defence related facilities and infrastructure. “It’s about aligning facilities and infrastructure strategy with the client’s commercial requirements upfront in the planning and feasibility phase” “I challenge the client to make sure their infrastructure and facilities plans fit their operational brief and return on capital requirements. Surprisingly, many organisations don’t get this aligned. I bring the external discipline of being able to perform a cost-benefit analysis of capital investment versus lifecycle versus functionality. You have to be able to understand your cost of capital and assess your financial priorities. If owning the asset is not strategically important, not fundamental to your operations, then you should consider alternative development and funding strategies, including long term leasing and build/own/transfer schemes” Managing the number of different elements involved in facilities and infrastructure development and funding, Nigel likens to conducting an orchestra. “You have to know enough about every instrument while not necessarily playing any of them. You also have to know which one is going to cause the whole symphony to fall apart and do something about it before it happens. It all needs to come together in one synchronised event. That’s across property, procurement, design and construction and funding” “I don’t promote a particular builder or act as leasing agent for a property. My client’s commercial interests are always paramount. Often time constraints and quality assurance mean that risk mitigation and clear resolution of contractual responsibilities is imperative. Defence contract penalties can be significant for non-performance, and I have to respond to that. I make sure that the delivery of the asset isn’t going to be the reason for the non-performance and my client’s interests are protected accordingly” You have to know enough about every instrument while not necessarily playing any of them. You also have to know which one is going to cause the whole symphony to fall apart and do something about it before it happens. "Careful planning for future expansion and flexibility is critical. Designing for known unknowns and changing contractual environments and operations, means facilities must be flexible, you have to have an overlay of commercial and funding arrangements that can accommodate change. It is both the operational solution and commercial solution that need to be aligned. "Australian industry as a whole tends to think in the short term, the European way of thinking is intergenerational. In Germany, for example, they look at their business plans over 10-15 years, not 10-15 months. We have to frame our thinking around long-term investment in strategic assets. This is the challenge and opportunity for Australian industry. “One of our competitive advantages is we have the ideal capital to invest over 20 years. Australian managed funds make for a very significant pool of capital ideally suited to be invested in these timelines. We also have design and construct capabilities for facilities infrastructure as good as anyone in the world” “We have capabilities across many industries, a highly skilled workforce, worldclass engineers, project managers. We have globally significant universities and a VET sector that can respond to developing local work force capability. With these local resources and the cost-effective funding of infrastructure, we are well positioned to respond to the growth of the defence industries”
November/December 2017/January 2018 Defence Business 31 NACP Projects wins Woomera Defence project Indigenous commercial building partnership NACP Projects has won a key national contract with the Department of Defence. Work is expected to begin soon on an infrastructure project located at Woomera inthe Far North of South Australia. As part of the Woomera Range Remediation Project, NACP Projects has been engaged to deliver new and upgraded infrastructure and facilities to support the range safety and control systems selected as part of Project AIR 3024 Phase 1. NACP Projects is a joint venture between privately owned construction company BADGE and National Aboriginal Construction Partners, which is comprised of indigenous entities Marra Worra Worra (the oldest and largest Aboriginal Resource Agency in WA’s Kimberley region), Waanyi Aboriginal Corporation (a Queenslandbased Aboriginal community-owned corporation) and Nirrumbuk Aboriginal Corporation (based in Broome, WA). Operations Manager with NACP Projects, Marcus Benny, said the project win was testament to the group’s growing reputation within the Defence industry. “NACP Projects is building a strong track record with Defence,” Mr Benny said. “We have successfully undertaken a range of projects for Defence to date. These have included the design and construction of new facilities at seven sites across Queensland, New South Wales and the Northern Territory to support a new fleet of fire fighting vehicles and more recently we completed a new Battlespace testing facility in Victoria.” “The Woomera Range Remediation contract is strategically important for NACP Projects as we expand our involvement in the delivery of national Defence infrastructure that supports Australia’s force capability.” As NACP Projects continues to expand, so too do the employment opportunities for Indigenous Australians. One of the corporate social objectives of NACP Projects is to support and develop Indigenous communities by providing opportunities to upskill and develop the local workforce. The group is currently seeking Indigenous Australians who are interested in joining its apprenticeship program and building a career in the construction industry. “This is an exciting opportunity for Indigenous workers to be involved in key infrastructure projects across Australia,” Mr Benny said. KAEFER, your partner for defence solutions More than good ideas With technology and innovation the core of our business, our LEAN delivered, vertically integrated services, solutions and products are tailor-made for naval shipbuilders. With our global experience and expertise brought to bear across Australia, KAEFER is optimally equipped to meet the demands – across all aspects of new-build or refurbishment. Inside and out - all over the world. That’s KAEFER. Core Services Interior Outfitting Thermal / Acoustic Insulation HVAC Fire Protection Fire Safety Products Cold Storage Protective Coatings Access Systems Level 6, 100 Pirie Street SA 5000 | Phone: +61 8 9224 4600 | info@kaefer.com.au | www.kaefer.com.au
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Defence Business_Issue 41 (Nov 17 – Jan 18)_DTC_Web

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