By Darian Macey, December 2 2024
The Defence Estate Capital and Sustainment Works Program Industry Briefing, held on 28 November 2024 at the Hellenic Club of Canberra, showcased critical updates on the Defence infrastructure pipeline.
With a strong attendance of 600 participants, both in person and online, the event provided an in-depth look into Defence’s strategic priorities, project updates, and procurement opportunities.
Strategic Priorities: A Focus on Resilience and Capability
Deputy Secretary Celia Perkins emphasised the alignment of estate priorities with the National Defence Strategy (NDS). Perkins noted that the Security and Estate Group has been instrumental in supporting the ambitious Defence infrastructure programme, which includes managing 3.8 million hectares, over 70 major sites, 100 training ranges, and 1,000 leased or owned properties. Key focus areas highlighted were:
- Nuclear-Powered Submarines Infrastructure: Rapid delivery of priority works at HMAS Stirling to support AUKUS Pillar 1 activities for a nuclear-powered submarine programme. This $9 billion investment is the group’s top priority.
- Guided Weapons and Explosive Ordnance (GWEO) Facilities: Supporting the guided weapons and ordnance enterprise, with a focus on developing and enhancing the storage and distribution network.
- Northern Base Resilience: A $1.6 billion investment in upgrading northern bases, including RAAF Tindal, RAAF Learmonth, and RAAF Darwin, to enhance operational resilience and ensure efficient support of force projection capabilities.
- Estate Planning and Upkeep: Emphasis on a coordinated approach to managing estate upkeep, minor works, and major infrastructure projects, ensuring a fit-for-purpose estate aligned with Defence’s strategic priorities.
The updated Defence Estate Strategy, expected in Q2 2025, will reflect these priorities while also focusing on resilience, sustainability, and community integration. Perkins also stressed the importance of Indigenous partnerships, citing significant progress with over $5 billion in contracts awarded to Indigenous businesses since the introduction of the Indigenous Procurement Policy (IPP) in 2015.
Estate Planning for Future Resilience
Amelia Charlton, Assistant Secretary for Estate Planning, discussed Defence’s evolving approach to estate planning and resilience. Key points included:
- Resilient Network of Bases: Focus on strengthening northern bases to support force projection and ensuring southern bases can recover quickly from attacks.
- Climate and Energy Resilience: Adoption of climate adaptation measures and energy resilience initiatives to enhance infrastructure reliability during crises.
- Deployable and Civil Infrastructure: Integrating deployable facilities for redundancy and leveraging civil infrastructure, like ports and airports, to boost operational flexibility.
- Budget Constraints: Emphasis on prioritising investments where they have the greatest strategic impact and ensuring community integration through targeted regional planning.
Charlton highlighted the need for adaptive, forward-looking estate strategies to ensure Defence infrastructure supports evolving operational needs.
Project Pipeline Highlights
The briefing provided a detailed breakdown of approved and planned investments across states and territories. Key figures include:
- Over $50 billion in planned investment nationwide over the next decade.
- Major upgrades to RAAF bases in Tindal and Darwin, supporting capabilities like Army Littoral Manoeuvre and Integrated Air Missile Defence systems.
- Expansion of indigenous procurement, with $10.5 billion awarded since 2015, reflecting a significant commitment to local and Indigenous businesses.
Major Capital Works Program
For new infrastructure, the Major Capital Works Program highlights include:
- Strategic enhancements for training and operational capabilities at RAAF Edinburgh and Puckapunyal. This includes upgrades to barracks, operational facilities, and simulation centres to support modern, integrated training requirements.
- Collaboration with states to improve civil infrastructure integration, ensuring seamless operational readiness. This includes joint projects with state governments to upgrade road networks, utilities, and shared facilities that support both Defence and civilian use, particularly in remote areas.
- Development of new support facilities for upcoming defence capabilities, including infrastructure for future aircraft and maritime operations, ensuring that Defence remains agile and capable of responding to emerging threats.
- Investment in energy efficiency and sustainability measures across major sites. This includes installing renewable energy systems and upgrading power distribution to improve the resilience and sustainability of Defence facilities.
- Establishment of advanced logistics and maintenance hubs to support deployed forces. These hubs will feature state-of-the-art maintenance facilities and expanded storage capacity, allowing Defence to enhance its rapid response capability.
Estate Works Program
The Estate Works Program (EWP) continues to sustain Defence’s infrastructure with projects valued between $1.5 to $4 million. In FY 2023-24, $900 million was spent across 278 projects, reinforcing Defence’s commitment to maintaining a fit-for-purpose estate. During the briefing, AIRCDRE McInerney, Director General of the EWP, was asked about the release date for the 2025 EWP Forward Works Program but was unable to provide a specific date. McInerney also declined to give an update on the Base Services Transition procurement process, which remains a key concern for industry stakeholders.
PFAS Management and Remediation Program
Kate Deverson, Programme Lead for the PFAS (Per- and Polyfluoroalkyl Substances) Remediation initiative, provided updates on Defence’s ongoing efforts to manage and mitigate PFAS contamination across its sites. The PFAS programme, which began in 2016, is now in its second stage, focusing on active remediation at 28 identified sites.
Key updates include:
- Remediation Actions: Implementing PFAS Management Area Plans (PMAPs) to treat contaminated soil and groundwater and reduce PFAS spread.
- Current and Upcoming Projects: Remediation is underway at 12 sites, with further projects planned for 2025 at bases like Bandiana and Jarvis Bay, including soil remediation and water treatment installations.
- Investment and Innovation: Over $820 million has been spent to date, with Defence exploring innovative technologies like water misting to reduce PFAS reliance.
These efforts are crucial for environmental stewardship, aiming to manage existing contamination and prevent future issues, ensuring safer environments for Defence personnel and nearby communities.
Procurement Updates
Ese Rainey, Executive Director, outlined upcoming changes to procurement processes, including:
- Simplified contracting documentation and streamlined warranty requirements to reduce administrative burdens on suppliers and accelerate project timelines. The goal is to make the procurement process more efficient, reducing delays and ensuring that contracts can be executed smoothly.
- Initiatives to encourage new entrants and SMEs in Defence projects, addressing concerns about accessibility. Defence is implementing mentorship programs and providing clearer guidance to assist smaller businesses in navigating the complex requirements of Defence tenders. There is also an effort to simplify pre-qualification criteria, allowing more SMEs to qualify for tender opportunities. Furthermore, Defence plans to hold industry workshops and outreach events to ensure that potential new entrants understand upcoming opportunities and how to position themselves effectively.
- Enhanced transparency and feedback mechanisms during the tender process, allowing tenderers to understand how their submissions are evaluated and where improvements can be made. This initiative aims to build trust and foster greater collaboration between Defence and industry partners.
- Expansion of the Indigenous Procurement Policy to ensure more opportunities for Indigenous businesses, with a targeted percentage of subcontracts under major projects to be awarded to Indigenous enterprises. Defence is also integrating local industry participation plans to support regional economic development, especially in remote areas where Defence infrastructure is being upgraded.
- Adoption of digital tools for procurement management, including e-tendering platforms to improve document management and bidder communication. This transition aims to modernise procurement workflows and provide all stakeholders with real-time updates on tender progress and decision milestones.
Audience Questions and Key Discussions
The audience engagement during the Q&A segment provided valuable insights into the industry’s concerns and interests regarding the future of Defence infrastructure. Key questions raised included:
- Project Timelines and Delays: Several participants expressed concerns regarding delays in project timelines and how Defence plans to mitigate these delays. Air Commodore Ron Tilley acknowledged the challenges and highlighted ongoing efforts to streamline project approvals and manage workload effectively, ensuring projects move swiftly from the development phase to delivery.
- Support for New Market Entrants: A recurring theme was the perceived difficulty for new market entrants, particularly SMEs, to gain traction in Defence projects. The panel reiterated Defence’s commitment to increasing opportunities for smaller companies through the Major Construction Panel and expanding mentorship and outreach initiatives. Ron Tilley pointed out recent successes where several Tier 1 companies secured their first Defence projects, signalling a positive shift.
- Indigenous Procurement and Local Industry Participation: Questions around the expansion of the Indigenous Procurement Policy and local industry involvement were also prominent. Defence representatives confirmed their focus on not only meeting but exceeding government targets for Indigenous participation, as well as integrating local industry participation plans to boost regional economic benefits.
- Quality Assurance and Tender Evaluation: Attendees also queried about quality assurance measures and the transparency of tender evaluations. Ese Rainey provided clarity on the updated procedures, which include revised warranty requirements, more robust quality checks, and enhanced feedback mechanisms for tenderers. The goal is to ensure consistent standards and help bidders improve their proposals for future opportunities.
- Sustainability Initiatives: The growing importance of sustainability was raised, with participants keen to understand Defence’s approach to energy efficiency and environmental resilience. The panel confirmed ongoing investments in renewable energy installations and upgrading infrastructure to meet sustainability targets. Defence is also exploring partnerships with civil infrastructure bodies to integrate greener solutions into base operations.
These discussions demonstrated Defence’s commitment to transparency and collaboration, addressing industry concerns while ensuring that the infrastructure supports the evolving strategic needs of Australia.
Conclusion
November’s industry briefing reinforced the importance of partnerships between Defence and the private sector in delivering strategic infrastructure priorities. While there are major investments in submarine and missile capabilities and sustained efforts in Indigenous procurement and local industry engagement, industry stakeholders have voiced concerns about the need for clearer timelines and more concrete information on procurement processes. The opportunities for collaboration are vast, but ongoing dialogue and more definitive answers to key questions will be critical to ensuring that all participants are fully engaged and prepared to contribute effectively.
Author: Darian Macey
Darian is a former Engineering Officer with the RAE with tertiary qualifications in Engineering and Project Management. He is a leading practitioner within Australia's NSI sector with previous employment in Government, project management and building contractor organisations.
