Estate Engineering Governance and Integrity System

1. Estate Engineering Governance and Integrity System Background and Work Plan September 2018

2. Estate Engineering Governance and Integrity SystemSeptember 2018 Current Defence Estate Engineering Policy Model E&IG Business Rule 11: Authority for the Development of and Promulgation of Infrastructure Engineering • Infrastructure engineering policies are an important enabler and one way that Defence demonstrates continuous improvement while also facilitating consistency across the estate. The engineering policies also reduce administrative burden and provide clear and uniform set of requirements to service providers for implementation. • Compliance with infrastructure engineering policies promotes construction and operation of facilities and infrastructure to the appropriate standards and levels of safety. The policies achieve this by specifying prescriptive levels of redundancy, reliability or quality, or by specifying appropriate performance measures to ensure the required levels of asset and function achieved. • Engineering policy is mandated through the Defence Estate Quality Management System, ID and SDD standard forms of contract, standard design brief inclusions and some Defence Instructions. Satisfactory implementation of policies is tested by: • Independent surveillance audits and inspection programs such as joint special license, airfield pavement and airfield lighting inspections • The review of select project submissions for compliance with engineering policy • DEEP participation in Fire Safety Engineering Brief activities • ASEE approval of dispensations to engineering policies such as MFPE • Mandating essential ongoing surveillance programs, such as fire safety surveys • E&IG, through Service Delivery Division and Infrastructure Division • Responsible for the delivery, maintenance and operation of Defence facilities and infrastructure that are safe, fit-for-purpose and facilitate required capability • Assistant Secretary, Environment and Engineering • Responsible for conducting a degree of compliance assurance and reporting the technical integrity of the estate. • The Defence infrastructure engineering policy agenda is set by EE Branch in ID. • Directorate of Estate Engineering Policy • Responsible for developing and promulgating policies* onto DEQMS *Policies include aircraft pavements, aircraft ground lighting , High voltage reticulation, electrical engineering, Fire protection and engineering, mechanical engineering, Range design and safety for Defence and civilian fire ranges

3. Estate Engineering Governance and Integrity SystemSeptember 2018 2018 DEEP Review (BRIG N. Beutel) • Key Findings: • Defence’s efforts over the past 11 years of developing a technical regulatory system have not been successful • Estate compliance concerns and issues are not an isolated Defence issue but reflected across the development industry • The building industry is facing a number of pressures to comply, namely increased demand for construction while decreasing supply and declining industry skills • With all the current development industry challenges, Defence cannot afford to ‘do nothing’ and operate ‘as is’ • Estate engineering regulations, compliance and assurance cannot be achieved through a technical regulatory system, but could through a policy framework • A compliance strategy focussed on providing guidance and making it easier to comply can work more effectively for Defence and development industry than strong reinforcement measures (diagram 1) • Defence could move from ‘implicit trust’ to ‘explicit confidence’ that considers a collaborative Defence and industry effort to meet compliance, including adopting behaviours such as transparency, consistent and flexibility. Diagram 1: Strategic Approach to Compliance Capital Works and Management Framework: Policy for managing risks in the planning and delivery of Queensland Government Projects, QLD Government 2018 • Recommendations: • Develop a Estate Engineering Governance and Integrity System (diagram 2). The EEGIS system would: • Form as a estate life-cycle driven policy framework. • Set principles based policies and performance based outcomes to meet Defence’s unique Defence capability and critical infrastructure requirements. • Adopt a risk-based criteria for assessing ‘integrity performance’, including operational performance, safety and resilience. • Focus on efforts to make it easy to comply and conform through a user-friendly process (good policy development, training, continual verification of policy) • The system would be developed using a Strategic Intent Statement, followed by an Operational Plan and Execution Order. Diagram 2: Proposed EEGIS approach

4. Estate Engineering Governance and Integrity SystemSeptember 2018 Strategic Overview – Estate Engineering Governance Integrity System Asset Management Framework Defence Estate Strategy (including engineering strategy) SDD Assurance Estate Development Estate Construction Estate Planning Estate HOTO Estate Design Estate Disposal Estate Maintenance EWP Assurance ID-SDD Integration SDD Leakage review SDD HOTO Review EEGIS (compliance framework and operating model) DEQMS Upgrade (Holocentric) • KEY INSIGHTS • All current E&IG initiatives are life-cycle driven • The asset management framework has the potential to integrate all reform initiatives • The EEGIS would sit in DEQMS and aligns with Defence’s holocentric SAP architecture

5. Estate Engineering Governance and Integrity SystemSeptember 2018 Strategic Overview – Estate Engineering Governance Integrity System Defence Strategic Guidance • SA1: A fit for purpose estate that best enable capability and operations • SA1: An estate that is safe, secure and compliant Defence Estate Strategy • KEY PRODUCTS (in no priority order): • Statement of Intent • Estate Engineering Strategy • Estate Engineering Compliance Framework • Estate Engineering Operating Model Defence Estate Engineering Governance Integrity System Governance Safe Assurance Capable Compliant Smart Buyer Capability/Estate Life-cycle Way ahead… Adopt a policy framework, driven by the capability life-cycle, to ensure safe, fit-for-purpose and compliant facilities and infrastructure that support Defence capability and operations. • Set unified direction for how engineering policy, compliance and assurance is integrated into estate processes, products and decision-making. • Clearly identify Defence accountabilities, roles and responsibilities across the estate life-cycle for engineering policy, compliance and assurance activities. • Focus towards providing principle-based policies and performance standards to meet unique Defence capability and critical infrastructure requirements, while ensuring that compliance standards are well known. • Managing compliance risk across the estate life-cycle through ‘integrity performance’ criteria, driven by operational performance, safety and resilience. • Enhance Defence’s application of engineering policy by providing user-friendly engineering policy products, targeted staff and industry training, continual verification of engineering policy scope and adopting continuous improvement approaches across the estate life-cycle. • Drive support to deliver best-practise compliance outcomes by providing the opportunity for Defence staff and industry to utilise in-house engineering subject matter expertise.

6. Estate Engineering Governance and Integrity SystemSeptember 2018 Defence Estate Engineering Strategy Defence Estate Strategy DEES Vision [Draft]: Ensure safe, fit-for-purpose and compliant facilities and infrastructure that support Defence capability and operations. Strategic Aim 1 ‘Capable’ Strategic Aim 2 ‘Safe’ Strategic Aim 3: ‘Compliant’ Strategic Aim 4: ‘Assurance’ Strategic Aim 5: ‘Governance’ • The Strategy will: • Focus on reform opportunities based on the 2018 DEEP review and stakeholder consultation • Provide high-level accountabilities that align with the E&IG estate stewardship charter and Capability Manager Intent • Narrate existing estate engineering practices and successes across each Strategic Aim • Supported by responsible Defence POCs and timeframes for reform activities

7. Estate Engineering Governance and Integrity SystemSeptember 2018 Estate Engineering Operating Model • Map existing accountabilities, roles and responsibilities across each 7 estate life-cycle touch-points against estate engineering policy, compliance and assurance using the RACI method (sourced from SDD) • Generate an estate engineering operating model, including operating profiles for each touch-point (see diagram below) • Finalise DEEP roles, responsibilities and accountabilities Estate Planning Operating Profile Estate Development Estate Construction Estate Planning Estate HOTO Estate Design Estate Disposal Estate Maintenance • Escalation (reassurance) Process • Identify simple triggers for when to escalate potential non-conformance • Provide an escalation process that is user-friendly and collaborative • Utilising in-house subject matter expertise during escalation to help shape best practice outcomes R-Responsible, A-Accountable, C-Consulted, I-Informed

8. Estate Engineering Governance and Integrity SystemSeptember 2018 Defence Estate Engineering Compliance Framework • Identify and document legal compliance standards for estate engineering • Desk-top review of conformance standards required from Defence engineering policy • Map and identify required compliance, conformance and operational standards across the estate lifecycle • Performance gap analysis to determine where further conformance standards are required • Prepare the compliance framework with additional conformance standards to be recommended through the Strategy • Create an ‘integrity performance’ risk-based criteria to apply across conformance standards during escalation process Estate Development Estate Construction Estate Planning Estate HOTO Estate Design Estate Disposal Estate Maintenance • Integrity Performance Criteria • Applicable to conformance standards • Risk-assessment informed • Operational performance: level of service, reliability, availability, maintainability • Safety: Ability to perform safely without loss of life or injury and damage to property and/or assets • Resilience: Capacity to recover from disruptions or continued operation in adverse of unpredictable conditions.

9. Estate Engineering Governance and Integrity SystemSeptember 2018 EBC DEPSEC (EIPSG) FASI & FASSD (DEMM) EEGIS peer review BRIG Noel Beutel DGCFI ASEE ASSDPM&G DGESD • EEGIS working group • EE Branch (DEEP, DEHPD) • CFI Branch • SDD Estate Services Delivery • SDD Program Management and Governance • Estate Planning Branch • Enterprise Governance Branch Director EEGIS Director DEEP EEGIS WG – weekly FASI – fortnightly DEPSEC E&IG – monthly DEEP/DEEGIS – regular DEEP/DEEGIS/Peer Review - regular Contract Authority • EEGIS industry consultation • DIP panel PMCAs • EMOS/PDS • Consult Australia

10. Estate Engineering Governance and Integrity SystemSeptember 2018 EEGIS Timeframes and Milestones End October 2018 End November 2018 December 2018 - March 2019 April 2019 September 2018 Stakeholder Consultation Understanding challenges/opportunities Review draft products Background Context Approvals process Mapping RACI and standards Email: eegis@defence.gov.au Website: http://intranet.defence.gov.au/estatemanagement/Governance/Policy/EngineeringMaintenance/Default.asp External folder – Estate and Engineering Branch - Background presentation - Suggestions log