Land Systems Division...Major General David Coghlan Head Land Systems Land Systems Division 2 Scope...

Land Systems Division 1

Land Systems DivisionCapability Acquisition and Sustainment Group

The Road to Reform and Opportunities for Industry

Major General David CoghlanHead Land Systems


Scope

• New Government Policy and Defence Reform

• CASG’s Reform Journey

• Land Systems Division – What we do– Our current priorities– Industry opportunities– Reform and innovation initiatives

• Open forum


• The First Principles Review provided a clear strategy for reintegration of the acquisition and sustainment functions into the Department of Defence.

• A key recommendation was the abolition of the independent Defence Materiel Organisation and the creation of the Capability Acquisition and Sustainment Group within the Defence Department .

First Principles Review


• Released 25 February 2016

• White paper – explains how the Australian Government is investing in Australia’s defence capabilities.

– Increase in the Defence budget from $32.4 billion in FY2016-17 to $58.7 billion in FY2025-26

– Approximately $195 billion will be invested in our capabilities over the decade to 2025-26 in all aspects of Defence capability, a significant proportion of which will be spent in Australia

2016 Defence White Paper


Four key components:

•Delivering Defence capability through a more focussed and

coordinated relationship between Defence and industry

•A new approach to innovation by streamlining engagement

with industry and academia

•Driving competitiveness and export potential. Maximise

opportunities for competitive Australian businesses, build export

potential, depth of skills and diversification for Australian

defence industry

•Cutting red tape. Streamline tendering and contracting

procedures, rationalise industry programs and make it simpler

and less costly for industry to support Defence

Defence Industry Policy Statement


• For the first time, includes all Defence‐related investments.– 20‐year outlook, with greater

detail on first 10 years.

• Annual updates released with the Defence budget from 2017‐18.

• Builds consistency and predictability for Defence and industry.– Defence will work closely with

industry to inform industry planning.

Integrated Investment Program


The Capability Acquisition and Sustainment Group (CASG) seeks to partner with industry

to deliver Defence capability

Capability Acquisition and Sustainment Group


The CASG business plan 2015-17 provides guidance on how CASG partners with industry to deliver Defence capability.

Five Key goals to get us there

• Reform, implement and embed the First Principles Review recommendations

• Improve our relationship with our owners (Government) and customers (Capability Managers)

• Improve our strategic level partnerships with industry

• Achieve full cost and performance transparency of our projects and operations

• Develop, support and professionalise our people

CASG – Key goals


Improving the way we work with industry

• An increased role for industry in the delivery of Defence capability outcomes will require CASG to enhance its supplier management capability.

• Industry Intelligence and portfolio management of major industry suppliers– New capability to manage across the CASG and remove

sub-optimisation from management within ‘silos’:– Tiered ‘account management’ equivalent for Primes – Better leveraging of Primes across domains– Industry intelligence and– Market and supply chain awareness


• What is a Smart Buyer approach?

– Seeks to provide the best possible outcome for CASG’s customers, appropriate financial returns for our suppliers, and value for money outcomes for the taxpayer. In practice this means -

• Engaging with industry earlier

• Consolidating our approach to procurements

– Possibly more prime contracts that are responsible for acquisition and sustainment by handing over some functions to industry whereappropriate

– CASG will ensure our business structure and processes streamline the way we do business

• We are keen to reduce the cost burden to you and therefore ourselves

• We are keen to hear your opinions on how we can help and what wecan do to make thing better

Principles for CASG operation


Land Systems Division - Structure

Land Systems Division (LSD)acquires and sustains land materiel for the Australian

Defence Force.

Land Systems Division

Land Systems Division - Structure

Land Systems Division (LSD) acquires and sustains land materiel for the Australian Defence Force.



Integrated Soldier Systems Branch (ISSB) comprises five SPOs responsible for:• Armaments – Small Arms and Direct Fire Support Weapons• ADF clothing – Combat and Non-Combat • Soldier Modernisation – Body Armour, Load Carriage, Field Equipment, Chemical Biological

Radiological and Nuclear Defence, Aerial Delivery Equipment• Health Systems – Pharmaceuticals, Medical and Dental Equipment, Combat Rations• Diggerworks – Future Soldier Systems Development, Configuration and Integration

Key Projects• Land 40 Phase 2 Direct Fire Support Weapons

• Land 53 Phase 1BR NINOX Night Fighting Equipment - Technology Refresh

• Land 125 Phase 3C Soldier Systems Integration – Lethality

• Land 125 Phase 3B Soldier Enhancement – Survivability

• Land 125 Phase 4 Soldier Systems Integration – version 3

• Land 2110 Phase 1B Chemical, Biological, Radiological and Nuclear Defence

• Land 3025 Phase 1 Deployable Incident Response Regiment Capability

• Land 3025 Phase 2 Deployable Incident Response Regiment Capability

• JP 2060 Phase 3 Deployable Health

• Land 125 Phase 4 Integrated Soldier Systems

Integrated Soldier Systems


Initiatives• Defence Industry Forums• Prime Vendors

• Non Combat Clothing• Health Pharmaceuticals• Health Medical / Dental Consumables• Ration Packs• Armaments • Future – Soldier Combat Ensemble /

CBRN / Deployable Health• Adaptive Acquisition

Challenges• Large Number of Small to Medium Enterprises • Industry Capacity and Capability• Number of Industry Supply Agents

representing Overseas OEM

Key Messages• Early Engagement of Industry• Transparency in the way we work• Educate and then work with Industry• Performance Based Contracting

• Guarantee Cash flow • Enduring contracts extension

• Significant Media / Ministerial Scrutiny

ISSB Industry Engagement


• Small Arms Target RFT (Tranche 2) – to be released Q3 2018.• Polymer Weapon for Land 125 Phase 3C RFT – to be released Q3 2016.• Field Equipment

• Multi-tool – Army reviewing requirement – Open tender Dec 2016• Duffle Bags – Army reviewing requirement – Open tender Oct 2016

Face Paint, Camouflage – Mar / Apr 2016 • Procurement of Medical & Dental Equipment – seeking a Prime Vendor

– Open tender Sep 16• Combat Ration Packs – seeking Prime Vendor – Open tender Q3 2016

ISSB Future Outlook and Opportunities



Land Vehicle Systems Branch is responsible for sustaining Defence’s general service vehicles (green fleet) and commercial vehicles (white fleet) and acquiring and delivering the next generation of field vehicles, modules and trailers to the ADF under the multi-phased program LAND 121 (Overlander).

Key Projects

• LAND 121 Phase 3A Lightweight and Light Vehicles and Trailers

• LAND 121 Phase 3B Medium and Heavy Vehicles and Trailers

• LAND 121 Phase 4 Protected Mobility Vehicles – Light

• LAND 121 Phase 5B Medium and Heavy Vehicles and Trailers

• JP157 Phase 1 National Support Base Aviation Refuelling Vehicles

Land Vehicle Systems


Initiatives• Use of Whole of Australian

Government (WoAG) agreements for ‘Smart Buying’ of commercial vehicles.

• Consolidation of many small standing-offer contracts for similar products (e.g. tyres)

• Increased use of OEMs for key equipment support through strategic agreements

Challenges• Ageing fleets need to be sustained

until new capability arrives• Various integrated logistics support

models need to be standardised• Smart Sustainment initiatives continue

to be implemented

LVSB Industry Engagement

Key Messages• WoAG procurement saves time

and money• Industry best-practice

innovations are to be thoroughly explored – performance-based contracting

• Industry should be involved early in project and contract management


• LVSB encourages small/medium enterprises to engage directly with the prime contractors that support our acquisition projects and legacy vehicle and trailer fleets.

• For example:– Rheinmetall MAN Military Vehicles Australia (LAND 121 Phase 3B) is establishing a

Global Supply Chain agreement to enhance Australian subcontractor engagement– Thales Australia (LAND 121 Phase 4) is still finalising its supplier arrangements.

• Other opportunities may include:– Patrol Motor Cycle (PMC) - quantity 60

• Defence is currently reviewing its requirement. • Timing for the Approach To Market is yet to be confirmed (estimated for FY16/17)

– Deployable All Terrain Vehicles (ATV) – quantity 184• 6x6 variant –quantity 142; and 4x4 variant – quantity 42. • Defence is currently reviewing its requirement.• Timing for the Approach To Market is yet to be confirmed (estimated for FY19/20). • All Terrain Vehicles • Trailers

• Quantity 20 to transport the ATV• Quantity 50 to carry stores behind the ATV

LVSB Future Outlook and Opportunities



Land Manoeuvre Systems Branch (LMSB) comprises four SPOs responsible for:• Mounted Combat • Combat Support Vehicles• Combat Support• General Support

Key Projects• LAND 19 Phase 7A C-RAM

• LAND 116 Phase 3 Bushranger

• LAND 17 Phase 1C1 Additional Lightweight Towed Howitzers

• LAND 136 Phase 1 Land Force Mortar Replacement

• LAND 907 Phase 1 Main Battle Tank Replacement

• LAND 998 Phase 1 Replacement Aviation Fire Trucks

• LAND 155 Phase 1 Enhanced Gap Crossing Capability

• JP 2097 Phase 1B Enhancements to Special Operations

Land Manoeuvre Systems


Initiatives• PMV Modernisation/Baseline:

• Vehicle kits• Armour• APU• RWS

• Commodity Reform Program• Managing Contractor – LAND 155• Performance Based Contract – PMV• Life of Type Management Planning for A Vehicles

Challenges• Breadth of materiel:

• Platforms/systems/commodities • Ageing Fleets• First Principles Review Transformation• Digitisation for Indirect Fires and Platform

integration

Key Messages• Close collaboration with key

industry partners• Listen to Industry and

incorporate their feedback. • Performance Based

Contracting:• Guarantee cash flow • Value enduring contracts

extension

LMSB Industry Engagement


•On Pavement Forklifts lease - Engagement with SG Fleet (Whole of Government leasing contract).•CA05 - Ground Surveillance Radar. Possible contract for support and heavy grade repair (Q2/3 2016).•L19 Phase 7B Short Range Ground Based Air Defence - Acquisition strategy to be finalised. Potential for Prime Systems Integrator and materiel supplies. •Land 8120 Engineer Support Platforms (IIP) – Scope being developed in conjunction with Army – potential for fleet management services and individual equipment procurement.•Land 8140 Phase 1 Deployable Force Infrastructure (IIP) – Scope being developed in conjunction with Army – potential for single delivery manager or a range of field products to be sourced.

LMSB Future Outlook and Opportunities


COMBINEDA R M S F I G H T I N G S Y S T E M


Combined Arms Fighting System (CAFS) manages LAND 400

• LAND 400 will acquire the armoured fighting vehicles systems to deliver the mounted close combat capability to the Land Force.

LAND 400 – Land Combat Vehicle System

• Phase 1: Project Scoping Study (complete)

• Phase 2: Mounted Combat Reconnaissance Capability (ASLAV replacement)

• Phase 3: Mounted Close Combat Capability(M113 replacement)

• Phase 4: Integrated Training System

Combined Arms Fighting System


CAFS Future Outlook and Opportunities

• Phase 2:

• BAES AMV and Rheinmetall Boxer have been selected for evaluation in the Phase 2 Risk Mitigation Activity.

• Risk Mitigation Activities (2016-2017) comprising:• Test and Evaluation Activities• Improvement of AIC opportunities• Cost/Capability tradeoff analysis

• Government Second Pass Consideration (2018)


CAFS Future Outlook and Opportunities

• Phase 3:

• RFI evaluation complete (debrief opportunities during Land Forces 2016)

• Program Timeframe of 2019-2032

• Phase 4. The 2016 IIP identifies:

• Program Timeframe of 2023-2032

• Architecture / framework being established in 2016


Initiatives

• LAND 400 Industry Portal, regular Industry briefings through a wide range of forums (ASPI, Land Environment Working Group etc).

• Dedicated website for direct communication.• Engagement with Industry bodies (AIDN, ICN) and

State Government Industry bodies.• Independent review of Phase 2 RMA AII activities.• Deloitte

– ‘Strong and clear alignment’– RMA enhancements

• AIC Roadmap has been delivered by BAES and Rheinmetall.

Challenges

• Optimising Australian Industry involvement.• Managing expectations in a fluid/changing

environment.• Balancing Industry and Government / Defence

expectations.

Key Messages

• L400-2 RFT progressing – Stage 2 Risk Mitigation Activities (RMA) commenced 18 Aug 16.

• Listening to Industry and incorporating their feedback.

• Fairness and openness with Industry.

• Early engagement - tell Industry what is going on in a timely manner.

• Deloitte Review of RMA AII activities publicly released by MDIND on 28 Jul 16.

• Australian Industry showcase opportunities planned for Q4 2016.

CAFS Industry Engagement


CAFS Australian Industry Involvement

• Deloitte Australia completed Review on 30 June 2017 and found clear alignment with Government policy direction.

• Recommendations from Review:– Costed options for differing levels of Australian industry participation.– Develop an Opportunity Roadmap for Australian Industry (Q4 2016).– Defence facilitated workshops in all states for Australian industry to

showcase their capabilities (Q4 2016).– Scope options for placement of Australian university technical

graduates.• RMA Contract changes for both shortlisted tenderers:

– Contractual obligations to deliver the four recommendations above.– AIC Plans to include MOUs between the tenderer and Australian

industry subcontractors.– Obligation to establish Design Authority Function in Australia.



Land Engineering Agency

LEA’s primary role is to provide engineering resources and capability to support project and sustainment activities within the System Program Offices (SPOs) of Land Systems Division.

LEA does this by providing systems, processes and physical capability to ensure compliance with the Army Technical Regulatory Framework to ensure that equipment is:• Fit for service• Safe to operate• Environmentally compliant


At a glance:

• ‘Outposted’ model – Direct support to Projects & Sustainment in LSD Branches

• 7 Directorates – (~153 core staff & ~340 outposted) - Includes 248 engineers and 245 technical staff

• Providing engineering capabilities– Design– Testing– Prototyping– Configuration Management– Drafting– Specialist Engineering

Land Engineering Agency

33


Directorate Systems Engineering and Integration (DSEI)• DSEI provides wide ranging engineering support to LSD System Program Offices in niche technologies and capabilities that are more efficiently delivered from a centralised model.

• DSEI provides services across LSD in Configuration Management, Drafting and Specialist Engineering including Safety, Integration, Reliability and Maintainability, Survivability, Electronic Warfare and Communications.

Directorate Systems Engineering and Integration (DSEI)

34


Weapons/Lethality

Mobility

RAMConfiguration Management

Electrical Power

Electronics/ Communications/ EW

3D Modelling

Engineering Analysis/Simulation

SurvivabilitySoftware

Human Factors

Optics

Directorate Systems Engineering and Integration (DSEI)

35


RADHAZ

EMI / EMC

ANTENNA CO‐SITE ANALYSIS ANTENNA PERFORMANCE

ANTENNA PLACEMENT OPTIMISATION

DSEI – Electromagnetic Modelling

36


DSEI – Survivability, Mine Blast & Ballistic Modelling & Testing

37


Land Engineering Agency Test Capability -LEA Proving Ground Monegeetta

• The test capability includes vehicle performance and endurance testing, Electromagnetic Interference and Compatibility, Electro-Optics and Thermal Imaging Testing, Climatic Testing, Mechanical testing, Weapons testing, Field Data Acquisition and High Speed Video in support of blast testing.

Directorate of Prototype and Test Services (DPTS)

38



Communications & Interoperability Testing

Electro Optics & Thermal Imaging

Electronics & Communications Laboratory

40


Climatic Testing

Heavy Vibration Facility

Mechanical & Environmental Laboratory

41


Enclosed Light Armaments Facility

Data Acquisition & Analysis

Data Acquisition & Analysis Laboratory

42


Automotive Performance Laboratory

43


LSD Initiatives

•Aerial Delivery Equipment & Adventure Training Equipment Prime Vendor•L125 Phase3B Soldier Combat Ensemble Prime Vendor•Contract Reform: Night Fighting Equipment Management•Pharmaceuticals and Medical & Dental Consumables Prime Vendor•Combat Rations Prime Vendor•Prototype Engineering Centre relocation•C and D Vehicle Fleet Rationalisation and Contracted Management•Commodity Reform Program•LAND 155 Enhanced GAP Crossing Managing Contractor•Extended PMV and ASLAV / Tank Contracted Management Activities•Deliver JP157 through a Managed Contractor model•Engagement of Integrated Support Contractor for ILS


Summary

• As part of Defence and CASG’s reform journey, LSD is changing.

• In partnership with Industry we seek to fully implement a Smart Buyer approach.

• We are already a Smart Buyer in many ways. However, we can get better and need your help in doing so – your feedback is essential.

[email protected]


Questions

Land System Division contacts:

• MAJGEN Coghlan – [email protected]

• DGCAFS BRIG McGlone - [email protected]• DGISS BRIG Welsh - [email protected]• DGLVS BRIG Kohl - [email protected]• A/DGLMS Mr Lumley - [email protected]• A/ASLE Mr Aitken - [email protected]

• Office of HLS – [email protected]

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