Steve Grzeskowiak Deputy Secretary Estate Infrastructure Group A

Steve Grzeskowiak │ Deputy Secretary Estate & Infrastructure Group A strategically aligned, affordable, safe and sustainable estate that enables Defence capability and operations

About Estate and Infrastructure Group People Assets Budgets q 1648 Public Servant staff and 140 military staff q 600 properties 2. 8 million hectares of land 30 thousand structures q Annual budget of $5. 3 billion q 53% E&IG staff are female q One of the largest non. Service groups in Defence q Focused on service delivery q The gross replacement value of the Defence estate is estimated at $68 billion q 70 major bases q Major Capital Facilities $2 billion per annum q Base services $400 million q Estate works $580 million q Estate upkeep $520 million q Land management & utilities $340 million q Housing $680 million

Vision Enabling Defence through partnership and services Mission Enabling Defence capability by working in partnership with our customers to deliver integrated services through a highly capable workforce

White Paper: Balance of Investment

First Principles Review Creating One Defence FOR SALE PWC $15 M ↓ $75 M Defence define the estate need as determined by future force requirements and Government agree to dispose of all unnecessary estate holdings starting with the 17 bases identified in the 2012 Future Defence Estate Report Defence strengthen its capability to present options to Government for estate disposal including obtaining expert external advice as required The Government amend the Public Works Act 1969 to set a $75 million threshold for referring proposed works to the Public Works Committee, and re-consider recent adjustments to the 2015 -16 Budget operational rules that run counter to more efficiently managing investment spending

Defence Estate Strategy 2016/36 A strategically aligned, affordable, safe and sustainable estate that enables Defence capability and operations. Strategic Aims 1 A fit-for-purpose estate, of the right size in the right place that best enables capability and operations 2 An estate that is safe, secure and compliant 3 An estate that is developed and managed to make the best use of available resources 4 An estate that is sustainable 5 An estate that is underpinned by effective and efficient governance and a skilled workforce

Capability Lifecycle Smart Buyer Strategy & Concept Strategic Planning Risk Mitigation and Requirement Setting Plan Acquisition Develop Deliver “ SMART BUYER In-Service and Disposal Operate & Maintain Dispose Is this the right time and the right way to spend our money? ”

Facilities and Infrastructure Program PBS 2019 -20 4500 4000 3500 3000 $m 2500 2000 1500 1000 500 0 2018 -19 2019 -20 2020 -21 2021 -22 2022 -23 2023 -24 2024 -25 2025 -26 2026 -27 Financial Year Unapproved Sustainment Approved Sustainment Unapproved Capability Approved Capability Unapproved Strategic Investment 2027 -28

Capital Facilities and Infrastructure CONSTRUCTION Development Delivery Defect Liability Period 61 Projects - $10 billion 52 Projects - $8. 5 billion 22 Projects - $1. 2 billion EXPENDITURE FY 16/17 FY 17/18 FY 18/19 FY 19/20 $1. 6 billion $1. 9 billion ~$2. 2 billion RESOURCES Total CFI Staff APS Military Project Teams 94 70 24 19

Enabling Defence Capability Deliver a Defence estate that enables a more capable, agile and potential future force and supports healthy living and working environments for Defence personnel. Develop facilities and infrastructure to support the introduction of new military equipment into operational service, as well as facilities to support Defence personnel where they work, live and train.

The United States Force Posture Initiatives In November 2011 the Australian and United States (US) Governments announced a broad concept for increased defence cooperation in Australia, the US Force Posture Initiatives. The US Force Posture Initiatives involve combined military training activities, undertaken in Australia, on an annual rotational basis. The US Force Posture Initiatives encompass two key initiatives: • The Marine Rotational Force Darwin (MRF-D) • Enhanced Air Cooperation (EAC).

USPFI Infrastructure Projects include USFPI will unlock opportunities for Australian Industry airfield upgrades, bulk fuel storage facilities, base support upgrades, physical fitness facilities and messes, upgrades to training areas and ranges… 1 2 3 4 RAAF Base Darwin Robertson Barracks + Training Areas 6 Kangaroo Flats 1 2 5 3 6 5 4 RAAF Base Tindal Construction Sustainment Local Business Mount Bundy Australian led projects ($4 m and above) will incorporate Local Industry Capability Plans to maximise local participation Bradshaw Field Training Area

Australia-Singapore Military Training Initiative 1 Delivering ADF Requirements 2 Strengthening Singapore Partnerships 1 5 “ 3 Training Area Development & Enhancement 4 Engaging Local Communities 5 Developing Local Industry 2 ASMTI $2 billion 4 3 The Australia-Singapore Military Training Initiative is about investing, building and training. It will provide Australian troops with better training opportunities and strengthen Australia’s relationship with Singapore, an important Defence partner. As host to this Initiative, the local communities of Central and North Queensland will benefit from economic opportunities that arise as the training areas are enhanced and as Singapore’s training activities increase. 13 Program Manager, Australia-Singapore Military Training Initiative ”

Delivering Advanced Training Areas

Construction: Local Industry Capability Plan • The Local Industry Capability Plan aims to maximise opportunities for local business to be involved in Defence infrastructure projects. • On average 62 per cent of sub-contractor packages, valued around $2. 5 billion, have been awarded to local businesses. • Defence has hosted events for local industry to promote opportunities. RAAF Base Woomera Airfield Construction

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