Defence Infrastructure Panel 2017 2022 Induction Training Capital

Defence Infrastructure Panel 2017 - 2022 Induction Training Capital Facilities and Infrastructure Branch February 2017

DIP Induction Training Today • • • Welcome and Introductions Training Objective Panel Manager Role Panel Performance Framework Panel Other Quality Obligations Panel Agreement Terms of Engagement Process RFP Documentation and Official Order DEQMS Overview

DIP Induction Training Welcome and Introductions • Lisa Drummond - Deputy Director, Quality and Compliance, Directorate of Program Assurance • Caitlan Sutton - Executive Officer, Quality and Compliance, Directorate of Program Assurance • Kate Mc. Kenna - Senior Associate, Clayton Utz

DIP Induction Training Objective • Provide a high level overview of Defence expectations of Panelists. • Provide an overview of the Panel performance obligations. • Provide a high level overview of the Panel and engagement level obligations.

DIP Induction Training Panel Manager Role • The Consultant's Panel Manager will act as the primary point of contact between the Commonwealth and the Consultant for the purposes of the Panel Agreement. • In addition, the Consultant’s Panel Manager is responsible for a range of other activities: – ensuring that the Consultant complies with its quality obligations; – participating in and carrying out all activities required by the Commonwealth in assessing the Consultant's performance; and – working with the Commonwealth Panel Manager to resolve issues affecting the relationship between the Commonwealth and the Consultant.

DIP Induction Training Panel Performance Framework • Performance management discussions between the Commonwealths Panel Manager and the Consultants Panel Manager will be held at no less than 12 monthly intervals. • 4 weeks before the performance management discussion, the Consultants Panel Manager must provide the Commonwealth with a completed ‘Performance Assessment’ form. • Defence Project Officers will also be asked by the Commonwealth to provide feedback on the services that they received. • In the event of any significant performance issue regarding a Defence Engagement, the Consultant Panel Manager is required to notify the Commonwealth Panel Manager immediately.

DIP Induction Training Panel Other • Obligation to maintain contact details • Security Clearances • Defence Common Access Cards • Lessons Learnt

DIP Induction Training Quality Obligations • Panel Members are required to implement and maintain the quality assurance systems and processes that were identified at time of tender. • Complying with the relevant quality assurance systems and processes does not relieve the Consultant from compliance with any other panel obligations or from any liabilities.

DIP Induction Training Panel Agreement • Each Consultant has a standing offer with Defence - Panel Agreement • Term is 5 years, subject to Defence's right to extend (up to 7 years) • Can be used by Other Commonwealth Agencies and Nominated Contractors • No guarantee of any volume of work • Defence can contract outside the Panel • Defence may add Consultants to the Panel at any time for any reason • Consultants may withdraw from the Panel by notice in writing • No physical works are permitted under the DIP!

DIP Induction Training Panel Agreement - Structure • • • Section 1: Introduction Section 2: Panel Conditions Section 3: Engagement Process Section 4: Terms of Engagement Section 5: Scope of Services

DIP Induction Training Panel Conditions • Establishes the framework for the supervision and administration of the Panel • Sets out the basis of the relationship between Defence and the Consultant • Continuing obligations throughout the Term

DIP Induction Training Panel Conditions - No Guarantee of Work • Depends on: – General performance (Panel and Engagement level) – Pro-activity in building relationships and displaying understanding of Defence's business and needs – Demonstrated expertise and experience in the type of services – Consultant's response to evaluation criteria for RFP

DIP Induction Training Panel Conditions - Performance • Unsatisfactory Consultant's performance (Panel or Engagement level): – Option for meeting and discussing the performance – Defence can discontinue seeking proposals from the Consultant for future work • Performance discussions: – Consultant required to participate in performance discussions and provide the information required under the Panel Conditions

DIP Induction Training Panel Conditions - Engagement by Nominated Contractors • Commonwealth may require the Consultant to be directly engaged by other contractors engaged by the Commonwealth ("Nominated Contractors") • Terms are to be substantially the same as the Panel Conditions and Terms of Engagement

DIP Induction Training Panel Conditions - Personnel • Commonwealth's Panel Manager – Consultant's Panel Manager • Only replace with prior written approval (Commonwealth may request a CV or interview to assess proposed replacements) • Various responsibilities under the Panel Conditions including: – Keeping Commonwealth informed of various matters – Ensuring compliance with obligations under Panel Agreement and Contracts – Participation in performance reviews – Communicating Commonwealth's requirements throughout its organisation – Working with Commonwealth's Panel Manager to resolve issues

DIP Induction Training Panel Conditions - Personnel • Obligation to perform tender promises • Commonwealth's Panel Manager assessed at time of tender for the DIP – If a proposed replacement has lesser experience and skills the Commonwealth is likely to reject • Must not seel approval for replacement retrospectively! • Must ensure knowledge transfer to relevant personnel within the Consultant's organisation – Key contractual obligations under the Panel (e. g. reimbursable costs and disbursements etc) – Defence's requirements – Outcomes of training

DIP Induction Training Panel Conditions - Insurance • Maintain insurances in the Panel Particulars for the Term • If insurances cease to be available on the specified terms - notify and take steps to mitigate risks • Provide copies of certificates of currency on request • Employers Liability Insurance - WA and International only

DIP Induction Training Panel Conditions - Quality Assurance • Must implement an assurance process, system or framework – Must maintain for the duration of Panel membership – Must actively leverage of this system during Engagements under the DIP to ensure quality outcomes • Must allow Commonwealth's Panel Manager or other Commonwealth representative to access it for auditing or monitoring • Not relieved of obligations under the Panel Agreement as a result of implementing the quality assurance systems, or any quality auditing or monitoring • Share any lessons learned regarding quality with the Commonwealth

DIP Induction Training Panel Conditions - Compliance With Commonwealth Requirements • General obligation to comply with Commonwealth Requirements throughout Term • Workplace Gender Equality • Safe Base Alert System • Entry Requirements • Privacy • Freedom of Information • Long Service Leave

DIP Induction Training Panel Particulars - Confidential Information • Do not copy, reproduce or disclose etc (or allow others to do so) other than for performing obligations under Panel Agreement or the Services • Secure and protect from unauthorised use, access or similar • Notify of Confidential Information Incidents and take steps to end, mitigate, avoid etc adverse effects • Return, destroy or erase as required (or notify if not possible) • Provide evidence of compliance as requested • Ensure recipients comply with requirements

DIP Induction Training Panel Conditions - Material Change or Defence Strategic Issue • Notify immediately if become aware of Material Change or Defence Strategic Issue • Include details of steps taken to end, avoid, mitigate risk of adverse effects • Meet with Commonwealth or provide further information, documents or evidence as required • Commonwealth may: – impose such conditions as it sees fit – terminate the Panel Agreement

DIP Induction Training Panel Conditions - Other Consultant Obligations • Conflicts of Interest – Avoid conflicts throughout Term – Notify of any conflict or risk of conflict – Take steps as required to remove or minimise conflicts or risks of conflict • Obligation to perform tender promises / representations • Provide access to Panel Documents, facilities, personnel etc (for 10 years from the end of Term)

DIP Induction Training Schedule of Rates • Set out in Appendix 2 to Panel Conditions • Used for: – Schedule of rates engagements – Valuing Variations – When a Consultant is engaged as a subconsultant to another Panel Consultant • Rise and Fall – Consultant may advise of an adjustment to its rates and prices calculated in accordance with the relevant formula – Must advise within 30 days of anniversary date! • Consultant's obligation to do this within required time • The Commonwealth will not chase you!

DIP Induction Training Schedule of Rates • All disbursements included in Schedule of Rates except: – Travel costs (to be reimbursed in accordance with non-SES rates with no administrative on-costs) – Car hire and taxi fares (reimbursed at cost only) – Other disbursements specified in an Official Order • Must get prior written consent before incurring these costs • Only allowed reimbursable costs set out in the RFP/ Contract • Items which are not reimbursable costs: – – – Telephone calls Document printing Email and internet charges Royalties, licence fees and any other amounts connected with any IP rights Taxes (except GST) Superannuation, long service leave and other employment-related levies, charges and amounts

DIP Induction Training Schedule of Rates • Lump Sum Engagements: – No entitlement to reimbursement of any disbursements (including travel costs, car hire etc) unless otherwise explicitly stated by the Commonwealth in the Official Order • No entitlement to reimbursement of any disbursements in connection with the appointment to the Panel • No entitlement to reimbursement of any additional costs/ disbursements connected with: – A change in the location of the Consultant's business – A change in the location of the Consultant's personnel

DIP Induction Training Terms of Engagement • More detailed terms governing the specific legal relationship between the parties for each engagement • Apply when a Consultant is engaged from the Panel • Form part of the "Contract" for each engagement • Tailored through Contract Particulars

DIP Induction Training Terms of Engagement - Clauses 1. Glossary of Terms 10. Payment 2. Role of Consultant 11. Termination 3. Role of Commonwealth 12. Dispute Resolution 4. Personnel 13. Notices 5. Documentation 14. Indigenous Procurement Policy 6. Quality 15. Confidential Information 7. Time 16. Sensitive & Classified Information 8. Phases - Planning Phase and Delivery Phase 17. Material Change or Defence Strategic Interest Issue 9. Variation 18. Financial Viability

DIP Induction Training Engagement Process • Optional: – Market Assessment – Panel Consultants confirm intention to submit proposal • EOI process is optional to determine capability and capacity • Even if Commonwealth issues an EOI Letter, the Commonwealth may still elect to change or discontinue the procurement process

DIP Induction Training Engagement Process • Step 1: Commonwealth issues a Request for Proposal • Step 2: Panel Consultants provide proposals • Step 3: Negotiations (as required) • Step 4: Official Order issued to successful Panel Consultant • Step 5: Unsuccessful Panel Consultants notified and debriefs offered

DIP Induction Training Engagement Process • Commonwealth and successful Consultant will be deemed to have entered into a Contract for the Services, comprising: • Official Order • Contract Particulars • Fee Schedule • Terms of Engagement • Brief • Project DCAP • Panel Agreement • Any other documents listed in the Contract Particulars

DIP Induction Training Engagement Process - Panel Assessment • Defence will consider: – performance – capability – capacity – project-specific factors • If proposing to seek a Consultant over a number of Scopes of Services, proposals will be requested only from Consultants who can provide all the Services • Consultant's cannot undertake Panel services where they do not have a signed Deed for those services

DIP Induction Training Engagement Documentation • Two Forms – Request for Proposal (Simple Procurements) – Request for Proposal (Complex Procurements) • Available on DEQMS • May be updated as required by Defence from time to time

DIP Induction Training Engagement Documentation • RFP Form – Completed by Defence – Sets out requirements for RFP – Includes: • Project Details • Submission Requirements • Evaluation Criteria • Conformance Requirements • RFP process terms (addenda, information documents, industry briefing, preferred panel consultants, acceptance, alternative proposals etc)

DIP Induction Training Engagement Documentation • Draft Official Order • Annexure A - Brief – Part 1 - The Project – Part 2 - Scope of Services – Part 3 - Project Specific Special Conditions (if any) • Annexure B - Project DCAP – To be completed by Consultant – Includes: Approach to Services, Minimum Resource Schedule, Key People, Sub-consultants, Commercial-in. Confidence Information – Just In Time Training (Complex procurements only) • Commitment and approach to JITT (attendees, topics)

DIP Induction Training Engagement Documentation • Annexure C - Fee Schedule – – – – Tailored for Project To be completed by Consultant Lump Sum or Schedule of Rates Phased Fee structure (Complex procurements only) Milestone Fee Payment Schedule (if any) Reimbursable Costs (if any) Proposal for submission of payment claims (optional) • Annexure D - Contract Particulars • Annexure E - Alternative Proposals – Must submit a conforming proposal before an alternative will be considered – Commonwealth has absolute discretion whether to accept or not • Fee Schedule and Alternative Proposals must be submitted separately (conforming tender requirement!)

DIP Induction Training Official Order • To be completed by the Commonwealth following selection of successful Panel Consultant • When signed and delivered in accordance with the Panel Agreement it constitutes acceptance of the Consultant's offer to supply the Services

DIP Induction Training DEQMS • Defence Estate Quality Management System – http: //www. defence. gov. au/estatemanagement/ • Certified Quality Management System • Panel Members are to comply with the content • Continuous Improvement and non-conformance will be applied to DIP Projects

DIP Induction Training Questions?