Defence Infrastructure Panel DIP 2017 Project Management and

Defence Infrastructure Panel (DIP) 2017 Project Management and Contract Administration Training (PMCA) 10 February 2017 BRIG Noel Beutel Director General Capital Facilities and Infrastructure

Defence Infrastructure Panel (DIP) 2017 Project Management and Contract Administration Training (PMCA) 10 February 2017 Mr Craig Patterson Director Program Performance

Defence Infrastructure Panel 2017 - PMCA Capital Facilities and Infrastructure Suite of Contracts Overview of Today’s Presentation • Overview of the roles within CFI Branch – Client Side Project Manager • CFI Organisational Chart / Resourcing Levels • Overview of the Defence Capability Lifecycle and approvals process • Summary of a Project lifecycle, focussing on the PMCA’s key services • Freedom of Information Act – relevance to PMCA’s services • Garrison and Estate Maintenance System – what it means for PMCAs • Open forum for Q&A 3

Defence Infrastructure Panel 2017 - PMCA INFRASTRUCTURE DIVISION FASI Chris Birrer ASPM ASEE ASEP DGCFI ASPFASIM Lauren Gray Alison Clifton Brett Cox Noel Beutel Luke Mc. Cloud 4

Defence Infrastructure Panel 2017 - PMCA CFI BRANCH DGCFI BRIG Noel Beutel Director Program Performance Craig Patterson Director Program Assurance Branch Executive Jackie Bestek Bob Baird Director National Director Mediums Director South East Director North Director West Director North East GPCAPT Paul Harte Kevin Fogarty Taj Pabla COL Matt Galton Gino Martiniello Ese Rainey 5

Defence Infrastructure Panel 2017 - PMCA Typical Project Team Structure - MCC SUPPLIERS CFI PMCA MC SUBCONTRACTORS 6

Defence Infrastructure Panel 2017 - PMCA Six Projects 9

Defence Infrastructure Panel 2017 - PMCA • Client Side Project Management Responsibilities – Risk Assessment – Procurement – Stakeholder Consultation – Capability Manager – Committee Business / Approvals • Capability Manager Gate Review (CMGR) • Estate & Infrastructure Gate Review (EIGR) • Investment Committee (IC) • Government Approval • Parliamentary Approval 10

Defence Infrastructure Panel 2017 - PMCA • Client Side Project Management Responsibilities (cont’d) – Government Business • Electorate Reporting • Senate Estimates • Budget Process • Questions on Notice • Supporting Ministers – Stakeholder Management – Capability Managers – Reporting • Financial • Annual Plan 11

Defence Infrastructure Panel 2017 - PMCA • Key Background Information / Changes Within Defence : – First Principles Review 2016 – White Paper 2016 – Interim Capability Lifecycle Manual – Smart Buyer Framework 12

Defence Infrastructure Panel 2017 - PMCA 13

Defence Infrastructure Panel 2017 - PMCA ONE DEFENCE BUSINESS MODEL 14

Defence Infrastructure Panel 2017 - PMCA ONE DEFENCE BUSINESS MODEL 15

Defence Infrastructure Panel 2017 - PMCA DEFENCE INVESTMENT White Paper 2016 16

Defence Infrastructure Panel 2017 - PMCA DEFENCE INVESTMENT White Paper 2016 17

Defence Infrastructure Panel 2017 - PMCA APPROVALS PROCESS 18

Defence Infrastructure Panel 2017 - PMCA Relationship between Government and Defence 19

Defence Infrastructure Panel 2017 - PMCA CAPABILITY LIFECYCLE Risk Mitigation & Requirements Setting Strategy & Concepts Gate 0 Gate 1 Acquisition In-Service & Disposal Gate 2 Not Shown: Parliamentary Approvals 20

Defence Infrastructure Panel 2017 - PMCA 21

Defence Infrastructure Panel 2017 - PMCA Smart Buyer Framework Approvals Strategy Requirements Technology Schedule Project Mgt Strategy Commercial Project Integration Defence Integration Acquisition Strategy Financial Strategic Sustainment Strategy 22

Defence Infrastructure Panel 2017 - PMCA • Approvals Process – Estimates Memorandum 2015/51 • Distinguishes between estate and capability projects • Provides for preliminary business cases and lower cost certainty supporting Government Approvals • Department of Finance RMG 502 provides guidance on probabilistic cost modelling 23

Defence Infrastructure Panel 2017 - PMCA APPROVAL PROCESS - ESTATE PROJECTS Estate & Infrastructure Requirement (EIR) Gate 1 Gate 2 IBC (P 50) DBC (P 80) Parliamentary Approval PWC Referral and Hearing ($15 m<) PWC Notification ($15 m>) 24

Defence Infrastructure Panel 2017 - PMCA APPROVAL PROCESS – CAPABILITY PROJECTS Estate & Infrastructure Requirement (EIR) Gate 1 Gate 2 IBC (P 50) PDBC (P 70) Parliamentary Approval DBC (P 80) PWC Referral and Hearing ($15 m<) PWC Notification ($15 m>) 25

Defence Infrastructure Panel 2017 - PMCA • Parliamentary Approval – PWC Act 1969 – Manual of Procedures – Cost Agreement (if not at 2 nd Pass) – Key documents • Statement of Evidence • Confidential Cost Estimate 26

Defence Infrastructure Panel 2017 - PMCA • Rehearsals – Whiteboard Activity – Rehearsal #1 – Rehearsal #2 – Rehearsal #3 (Final) • Public Hearing • In-Camera Hearing 27

Defence Infrastructure Panel 2017 - PMCA KEY PMCA SERVICES 28

Defence Infrastructure Panel 2017 - PMCA PLANNING PHASE GENERAL • Project Management • Contract Administration • Master Program • Master Cost Plan • Lessons • Reporting PROCUREMENT • Tender Documents / / Brief • Tender Administrator • Evaluation Board Report DESIGN • Stakeholder Engagement • Design Review APPROVALS • PDBC • PWC Documents • Certification • VM / RM / PSWG • Site Selection • Negotiations • Contract 32

Defence Infrastructure Panel 2017 - PMCA DELIVERY PHASE GENERAL PROCUREMENT CONSTRUCTION • Project Management • Tender Documents / Brief Update • Payment • Contract Administration • Master Program • Master Cost Plan • Lessons • Reporting • Tender Administrator • Evaluation Board Report • Negotiations • Contract • Manage RFI • Variations • Scope Management • Cost Management DLP • Defect Register • PWC Post Implementation Review • Post Occupancy Evaluation • Commissioning / Handover • Asset Roll-out • PPA 36

Defence Infrastructure Panel 2017 - PMCA FREEDOM OF INFORMATION ACT 37

Defence Infrastructure Panel 2017 - PMCA BACKGROUND • Object clause: to give the Australian community access to information held by the Government by: – Requiring agencies to publish the information; and – Providing for a right of access to documents. • Intention: greater public participation, better decision making, increased scrutiny, information a national resource 38

Defence Infrastructure Panel 2017 - PMCA • Who can apply? – Right of access is not restricted by territorial or citizenship limitations – Right of access does not require demonstration of need to know • What is a document? – papers, notebooks, diaries, minutes, briefs, reports, file notes, post it notes, audio/visual material, photos, IM (lync) logs • Why do you need to know about this? 39

Defence Infrastructure Panel 2017 - PMCA • What constitutes a valid request under the FOI Act? – Must be in writing – State it is a request under the FOI Act – Give an address or the service of notices – email address is sufficient – Give enough information to identify the relevant documents 40

Defence Infrastructure Panel 2017 - PMCA 1 FOI Directorate receives and processes request 41

Defence Infrastructure Panel 2017 - PMCA 1 FOI Directorate receives and processes request 2 FOI Request is tasked to Defence line areas for information gathering 42

Defence Infrastructure Panel 2017 - PMCA 1 FOI Directorate receives and processes request 2 FOI Request is tasked to Defence line areas for information gathering 3 FOI Directorate sends collected information to FOI Decision Maker 43

Defence Infrastructure Panel 2017 - PMCA 1 FOI Directorate receives and processes request 2 FOI Request is tasked to Defence line areas for information gathering 3 FOI Directorate sends collected information to FOI Decision Maker 4 FOI Decision Maker reviews every document and identifies exemptions and third party consultation 44

Defence Infrastructure Panel 2017 - PMCA 1 FOI Directorate receives and processes request 2 FOI Request is tasked to Defence line areas for information gathering 3 FOI Directorate sends collected information to FOI Decision Maker 4 FOI Decision Maker reviews every document and identifies exemptions and third party consultation 5 Draft Statement of Reasons, exemptions applied (redacted or refused) sent to FOI Directorate for review 45

Defence Infrastructure Panel 2017 - PMCA 1 FOI Directorate receives and processes request 2 FOI Request is tasked to Defence line areas for information gathering 3 FOI Directorate sends collected information to FOI Decision Maker 4 FOI Decision Maker reviews every document and identifies exemptions and third party consultation 5 Draft Statement of Reasons, exemptions applied (redacted or refused) sent to FOI Directorate for review 6 Statement of Reasons signed. SOR and requested material provided to applicant and published on FOI Disclosure Log 46

Defence Infrastructure Panel 2017 - PMCA Garrison and Estate Management System • FY 2016 -17 Rollout for CFI Branch • Will require standardising format of monthly report data – Cash flow – Risk – Others TBA 47

Defence Infrastructure Panel 2017 - PMCA QUESTION TIME 48

49

DIP PMCA Training Quality Expectations • Commitment to the quality promises made at Panel establishment and engagement time • Deliverables free from the absence of quality 50

DIP PMCA Training Just in Time Training • Defence’s investment in the success of the project • PMCA is to prepare for, attend and participate in any ‘Just in Time’ training provided by the Commonwealth and its advisers • Ensure Consultant's Representatives and all other Consultant personnel directly engaged in the services, administration or management of the Project Contracts attends such training 51

DIP PMCA Training SMART Infrastructure 52