Strategic Estate Management for Defense Capability

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

2. About Estate and Infrastructure Group • People • 1648 Public Servant staff and 140 military staff • 53% E&IG staff are female • One of the largest non-Service groups in Defence • Focused on service delivery • Assets • 600 properties2.8 million hectares of land 30 thousand structures • The gross replacement value of the Defence estate is estimated at $68 billion • 70 major bases • Budgets • Annual budget of $5.3 billion • Major Capital Facilities $2 billion per annum • Base services $400 million • Estate works $580 million • Estate upkeep $520 million • Land management & utilities $340 million • Housing $680 million

3. 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

4. White Paper: Balance of Investment

5. First Principles Review Creating One Defence FOR SALE PWC$15M ↓ $75M 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 define the estate needas determined by future force requirements and Government agree to disposeof 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 disposalincluding obtaining expert external advice as required

6. Defence Estate Strategy2016/36 A strategically aligned, affordable, safe and sustainable estate that enables Defence capability and operations. Strategic Aims A fit-for-purpose estate, of the right size in the right place that best enables capability and operations 1 2 An estate that is safe, secure and compliant An estate that is developed and managed to make the best use of available resources 3 An estate that is sustainable 4 An estate that is underpinned by effective and efficient governance and a skilled workforce 5

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

9. Capital Facilities and Infrastructure CONSTRUCTION Development 61 Projects - $10 billion Delivery 52 Projects - $8.5 billion Defect Liability Period 22 Projects - $1.2 billion EXPENDITURE FY 19/20 ~$2.2 billion FY 16/17 $1.6 billion FY 17/18 $1.9 billion FY 18/19 $1.9 billion RESOURCES APS 70 Project Teams 19 Total CFI Staff 94 Military 24

10. 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.

11. 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).

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

13. Australia-Singapore Military Training Initiative 1 1 Delivering ADF Requirements Strengthening Singapore Partnerships 2 5 2 Training Area Development & Enhancement 3 4 Engaging Local Communities 5 Developing Local Industry 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. Program Manager, Australia-Singapore Military Training Initiative ”

14. Delivering Advanced Training Areas

15. 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

16. Questions?