Capital Facilities and Infrastructure Branch PMCA Workshop OVERVIEW

Capital Facilities and Infrastructure Branch PMCA Workshop

OVERVIEW OF PMCA OBLIGATIONS UNDER THE WHS LEGISLATION & BUIDLING CODE 2016 JO TEAGLE, PARTNER 25 MAY 2020 © Clayton Utz

KEY CONCEPTS AND PRINCIPLES IN THE Key principles of the WHS Legislation: WHS LEGISLATION duties under the WHS Legislation are not transferable. persons may have more than one duty. more than one person can have a duty - each duty holder must comply with that duty. Duty to ensure health and safety means: eliminate risks, so far as is reasonably practicable; or if it is not reasonably practicable to eliminate, minimise risks so far as it is reasonably practicable. 3 Key duties under WHS Legislation: primary duty of care; duties of a worker; duty of due diligence; duty to consult with other duty holders; and duty to notify notifiable incidents.

The Key whs duties 4

NOTIFIABLE INCIDENTS A notifiable incident arises where there is a: death of a person; or serious injury or illness of a person; or dangerous incident. Contractor must ensure it reports all notifiable incidents to the relevant regulator and PMCA immediately upon becoming aware of the notifiable incident. Defence and PMCAs must ensure: Defence then reports immediately upon becoming aware of the notifiable incident to Comcare; and Contractor provides to the Commonwealth: information supplied to the State/Territory Regulator; and any notices from the State/Territory Regulator. 5

Overview of CONTRACTOR WHS CONTRACTUAL OBLIGATIONS Carry out Contractor's Activities safely and in a manner that does not put the 6 health/safety of persons at risk. Exercise duty of utmost good faith to Cth in carrying out the Contractor's Activities to enable the Cth to discharge its WHS obligations (act honestly and with due regard to Cth's best interests). Comply with its CCC duty. Prepare, submit and review its WHS Plan. Provide written assurances WHS compliance from subcontractors/Other Contractors and the Contractor. Report Notifiable Incidents immediately. Provide a written report on WHS matters. Ensure authorisation/licensing/qualifications Statutory Requirements/ WHS obligations are complied with and produce evidence of Approvals/authorisations/qualifications (e. g. maintenance of registered mobile cranes).

OVERVIEW OF PMCA contractual WHS RESPONSIBILITIES PMCAs must ensure that requirements of WHS Legislation are adequately addressed in Contracts, including DCAP & Project Plans produced by Contractors (i. e. WHS Plans); and PMCAs must also ensure Contractor complies with its contractual obligations and: provides written assurances (including from subcontractors and Other Contractors) regarding WHS compliance to the Contract Administrator (when requested); submits a report at each meeting to the Contract Administrator concerning WHS (including a summary of Contractor WHS compliance); and obtains and provides any Approvals (including authorisations, licences, prescribed qualifications or experience) to the Contract Administrator prior to relevant work commencing. 7 Review and action the information supplied!

CHECKLIST FOR WHS COMPLIANCE 8 Assess draft WHS Plans provided by tenderers for compliance with the Project Contract and WHS Legislation. Regularly and actively manage, monitor, review and revise information and records concerning WHS issues for Project Contracts. Facilitate the exchange, keeping and maintenance of information and records in respect of WHS issues for Project Contracts. Ensure WHS Legislation requirements are incorporated into Project Documents and Project Contracts.

WHS PLAN REVIEW 9 Critical that PMCAs review WHS Plans by reference to the definition of WHS Plan to ensure Contractors are complying with this obligation – ie does it include the defined content? A review of a sample of WHS Plans last year found: WHS Plans referred to a specific procedure being carried out according to an internal document, but did not attach the document. No WHS Plan detailed how WHS disputes will be managed or resolved. Majority of WHS Plans did not detail the procedure for obtaining written assurances regarding Contractor, subcontractor and Other Contractors compliance with WHS Legislation. Three projects did not provide detail for procedures regarding assessment, monitoring & review of Safe Work Method Statements. The majority of WHS Plans contained no discussion of procedures the Contractor will implement to ensure Commonwealth is provided WHS information during handover and takeover activities. A number of Plans contained only high-level /generic information regarding important items such as emergency procedures & identifying/ proactively managing risks.

Whs plan review for covid-19 10 Conducted an intial review of WHS Plans, including with COVID-19 updates. Key considerations from the review include: regular Contractor and PMCA review of WHS Plans did not appear to be consistent external event occurring (i. e. COVID-19 or notifiable incident) appeared to be key triggers for Contractors to review their WHS Plan; PMCAs should avoid simply relying on Contractor to update WHS Plan and should proactively query Contractor's re the need for WHS Plan updates –ie 'regular review'; Don't just 'tick and flick' – carry out a robust review of this key document and provide 'comments and feedback' not recommendations or proposed drafting amendments; and Contractors were often not updating their WHS Plan, but instead provided internal company policies and procedures for COVID-19. This means the COVID 19 documents do not form part of the WHS Plan.

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Greg Thompson - Capital Facilities and Infrastructure Branch- Portfolio Update

Capital Facilities and Infrastructure Branch CONSTRUCTION 150 active projects - $22. 9 billion portfolio Development Delivery Defect Liability Period 69 Projects - $10. 3 billion 52 Projects - $10. 9 billion 29 Projects - $1. 7 billion EXPENDITURE FY 21/22 FY 22/23 BE $2. 0 billion $2. 5 billion $3. 0 billion Total CFI Staff APS Military Project Teams 97 72 25 19 FY 19/20 FY 20/21 $1. 8 billion $1. 9 billion BE $1. 6 Billion RESOURCES

Budget timelines

Budget Biannual timeline FY 20/21 budget Oct 20 DAR PAES July Aug Sept Oct Nov Dec PBS Jan Feb Mar April May June

How do we develop the biannual updates

How Defence does PBS and PAES timeline Project Review sheet CFI prep DFG / IPMB prep PBS Expenditure Review Committee July Aug Sept Oct Nov Dec Jan Feb Mar April May June Project Review Sheets CFI prep IPMB DFG Prep PAES MYEFO PAES

How Defence does PBS and PAES timeline PBS Project Review sheets Jul Jun Aug May DFG and IPMB prep CFI prep Expenditure Review Committee Project Review sheets Apr CFI prep Sep Oct PAES Mar Nov MYEFO Feb Dec Jan DFG and IPMB prep

PBS and PAES summary Project Review sheet PBS July Aug Sept Oct Nov Dec Jan Feb Mar April May June Project Review Sheets PAES

DAR timeline CFI Prep DFG prep CFI finalisation DAR July Aug Sept Oct Nov Dec Jan Feb Mar April May June

$1. 8 b $1. 6 b

April forecast 27% 58% 94% 67% 80% $50 m 95% 74% 69% 65% 75%

May forecast 27% 58% 94% 67% 80% $30 m 95% 74% 69% 65% 75%

Holly Lowe- Capital Facilities and Infrastructure Branch- Forward works Update

Forward Works Program Projects in CFI: Status Update on RFP Release Project EST 02145 Edinburgh Defence Precinct Mid Term Refresh & EST 00476 Relocation of Units from Elizabeth North Training Depot EST 0159 PH 1 Lethality Weapons Systems (formerly LAND 159 -1 Small Arms Replacement) EST 02046 General Ranges and Training Areas Redevelopments EST 1508 PH 1 Special Operations Capability Enhancements and Continuous Development Program & LAND 2097 -4 SO Rotary Wing Capability JP 9101 -1 Defence Enhanced High Frequency Communication System EST 02005 DSTO Fishermans Bend Redevelopment EST 02028 RMC Duntroon Redevelopment EST 02003 HMAS Creswell Mid Term Refresh EST 02020 Other Sites Grouping Redevelopments EST 02039 Borneo Barracks Redevelopment ESTXXXXX Lavarack Barracks Mid Term Refresh EST 02009 RAAF Base Darwin Mid Term Refresh New projects under assessment

Forward Works Program Projects not in CFI: Status Update on Incoming Projects (up to Dec 20) Project Proposed Handover Date to CFI EST 02030 RAAF Curtin Redevelopment Jun 20 EST 02012 Woomera Range Complex Redevelopment Jul 20 EST 02038 Victoria Barracks Brisbane Relocation Jul 20 Guided Weapons Explosive Ordnance Storage Program Jul 20 JP 9102 Facilities to support Future SATCOM Jul 20 LAND 154 -4 Joint Counter Improvised Explosive Device Aug 20 EST 02130 Higher Defence Education Integrated Campus Oct 20 LAND 8701 -1 Army Watercraft Nov 20 EST 02018 Twofold Bay Mid Term Refresh Pending Riverina Redevelopment Program Pending

Greg Thompson - Capital Facilities and Infrastructure Branch- DCAC and DISP

DCAC Processing Changes - Overview • CFI is adopting DCAC processing changes • Benefits: • More streamlined approach • Opportunity for industry to play greater role • Application: • CFI projects: • Defence Infrastructure Panel • Defence Suite of Facilities Contracts • Requirements: • DISP membership • Value for Money proposal • Authorisation letter • Security Plan • Current processing arrangements also remain available

DCAC Processing Changes - Instructions • PMCA to speak with Commonwealth’s Representative • Commonwealth Representative to issue Variation Price Request • If approved, Commonwealth’s Representative to issue authorisation letter to CFI’s Unit Security Team and PMCA • CFI’s Unit Security Team to submit the authorisation letter to the relevant pass office and advise the Commonwealth’s Representative that the new arrangement can be implemented

DCAC Processing Changes – Getting DISP Membership • The below link provides access to information on, and applying for, DISP • https: //www. defence. gov. au/dsvs/Industry/

Capital Facilities and Infrastructure Branch- Directors Updates

Capital Facilities Infrastructure – West Directorate RAAF Base Curtin Redevelopment • RAAF Base Curtin is located 35 km southeast of Derby, WA. • December 2014 BEAP report identified that the Base’s critical infrastructure is at its end of life or beyond. • Scope - Roads, Working Accommodation, Carport/Garages, Handstand Areas, Vehicle Loading Ramps, Hangars & OLA’s, Security, Fencing and Signage. • Budget – Delivery $181. 4 m & Development $12 m • Schedule – Construction start early 2022. • PMCA RFT– Early August 2020 RFT release to all DIP. • IBC will be provided as RFT Information Document.

Capital Facilities Infrastructure – National Directorate LAND 1508 Phase 1 – Special Operations Capability Enhancements and Continuous Development Program • Scope: New and upgraded facilities for SO: – Russell Offices, ACT: consolidate and upgrade working accommodation for HQSOCOMD – Campbell Barracks, WA: upgrade SASR Air Deployment Operational Support Facility and MWD facilities – Holsworthy Barracks, NSW: upgrade 2 CDO working accommodation and SO Training & Education Centre • Budget: Development $27 and Delivery $121 m • Schedule: DBC Aug 21, PWC Jun 22, Constr Feb 23 -Dec 24 • PMCA RFP release early Jun 20 (with LAND 2097 Ph 4) • Redacted IBC will be provided as Information Document

Capital Facilities Infrastructure – National Directorate LAND 2097 Phase 4 – Special Operations Rotary Wing Capability Project • Scope: New and upgraded facilities to support introduction of new helicopters: – Holsworthy Barracks, NSW: new aprons/taxiways, hangars, working, maintenance, training and comms facilities – Point Cook, VIC: aprons/taxiways, hangar, working accomm, operational and support facilities – Campbell Barracks, WA: upgrade to training facs and LZ • Budget: Development $17 and Delivery $250 m • Schedule: PDBC Dec 20, PWC Nov 23, Constr Feb 23 -Feb 25 • PMCA RFP release early Jun 20 (with LAND 1508 Ph 1) • IBC will be provided as Information Document

Capital Facilities Infrastructure – National Directorate EST 02020 – Other Sites & Groupings Redevelopment • Scope: Redevelopment of up to 9 smaller Defence sites: – QLD: Sarpeye Bks Thurs Is, Damascus Bks Meeandah, DSTG Pin Gin Hill Innisfail, Wallangarra Stores Depot – VIC: P&EE Graytown, Swan Island, LEA Monegeetta – SA: P&EE Port Wakefield – TAS: DSTG Scottsdale • Budget: Development $25 and Delivery $310 m • Schedule: DBC Dec 21, PWC Feb 23, Constr Jun 23 -Jun 25 • PMCA RFP release mid Jun 20 • IBC has been provided as Information Document