NZDF 2013/14 OUTPUT PLAN TABLE OF CONTENTS

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2 NZDF 2013/14 OUTPUT PLAN TABLE OF CONTENTS Subject Table of Contents Introduction Page (ii) (v) NZDF OUTPUT PLAN Summary of Outputs (with costs) to be Delivered OP - 1 Purpose and Scope OP - 3 Powers and Obligations OP - 4 Defence Amendment Bill OP - 5 Relationship to Veterans Affairs New Zealand OP - 5 Term of the Plan OP - 5 Procedures for Amendment OP - 5 Coordination and Consultation OP - 5 Monitoring and Reporting OP - 5 Interpretation OP - 7 Sanctions OP - 7 Payment OP - 7 Procedures for Funding Unplanned Major Operations OP - 7 Signed Statement OP - 7 SCHEDULES Schedule No 1: Framework for the NZDF Outputs Part 1: Corporate Guidance Statement by the Chief of Defence Force S1-1 Part 2: Delivery of NZDF Output Expenses/Outputs Purpose S1-3 Overview of Linkages (Diagram) S1-4 The Defence Act 1990 S1-5 Primary Mission of the NZDF S1-5 NZDF Vision S1-5 Minister s Priorities S1-5 NZDF Outputs S1-6 Inter-Departmental/Agency Collaboration S1-6 Capability Management Framework S1-6 Employment Contexts S1-7 Military Capability S1-7 Level(s) of Capability S1-9 Providing Government with Choice in NZDF Outputs S1-11 Impact of Operational Deployments and Introduction of Equipment Into Service on Output Expenses/Outputs: Concurrency S1-12 Services in Support of Other Government Departments/Agencies and the Community S1-13 Costing of NZDF Outputs S1-13 Operational Preparedness Reporting and Evaluation System (OPRES) S1-14 (ii)

3 Performance Indicators for NZDF Outputs S1-16 Preparedness Performance Rating Scale S1-16 Measures for Community Support Services and Domestic Tasks S1-17 Appendix 1 Employment Contexts Appx 1/S1-1 Schedule No 2: NZDF Force Structure Introduction S2-1 Purpose S2-1 NZDF Terminology S2-1 Force Composition S2-2 Navy S2-2 Naval Combat Forces S2-2 Naval Support Forces S2-2 Littoral Warfare Support Forces S2-2 Naval Patrol Forces S2-3 Royal New Zealand Naval Volunteer Reserve (RNZNVR) S2-3 Army S2-3 Land Combat Forces S2-6 Land Combat Support Forces S2-6 Land Combat Service Support Forces S2-7 Special Operations Forces S2-7 The Army Reserve S2-7 Air Force S2-8 Airborne Surveillance and Response Forces S2-8 Fixed Wing Transport Forces S2-8 Rotary Wing Transport Forces S2-8 Naval Helicopter Forces S2-8 Expeditionary Support S2-9 Command, Control, Communications and Intelligence S2-10 Schedule No 3: NZDF Output Specifications Introduction to Schedule 3 NZDF Output Requirements S3-1 NZDF Output Expenses for 2013/14 S3-2 Services in Support of the Government and Community S3-2 Provision of Deployable National Command Element or Headquarters S3-3 Intended Major Exercises and Activities S3-3 (iii)

4 Output Expenses: Output Expense 1: MCOA for Policy Advice and Related Outputs S3-4 Output Expense 2: Naval Combat Forces S3-7 Output Expense 3: Naval Support Forces S3-9 Output Expense 4: Littoral Warfare Support Forces S3-12 Output Expense 5: Naval Patrol Forces S3-17 Output Expense 6: Reserved S3-20 Output Expense 7: Land Combat Forces S3-21 Output Expense 8: Land Combat Support Forces S3-25 Output Expense 9: Land Combat Service Support Forces S3-29 Output Expense 10: Special Operations Forces S3-34 Output Expense 11: Naval Helicopter Forces S3-37 Output Expense 12: Airborne Surveillance and Response Forces S3-39 Output Expense 13: Fixed Wing Transport Forces S3-41 Output Expense 14: Rotary Wing Transport Forces S3-44 Output Expense 15: MCOA for Miscellaneous Support Activities S3-47 Output Expense 16: Operationally Deployed Forces S3-51 Appendix 1 Summary of Availability/Preparedness Against ECs Appx 1/S3-1 Appendix 2 Services in Support of the Government and the Community (Including Domestic Tasks) Appx 2/S3-1 Appendix 3 Intended Exercises and Activities for FY 2013/14 Appx 3/S3-1 Schedule No 4: Summary of NZDF Force Element Operational Preparedness Criteria Statements for FY 2013/14 (CLASSIFIED) (Note: Available on SWAN) (iv)

5 INTRODUCTION The objective of this Output Plan is to provide the Minister of Defence with information to assess the strategic alignment and value of the New Zealand Defence Force Outputs and, where relevant, to make comparisons with similar outputs across both the public and private sectors. The Plan also shows how the mix of outputs contributes to the achievement of the Government s defence policy objectives. This Output Plan constitutes a record of the output delivery decisions agreed by the Minister of Defence with the Chief of the New Zealand Defence Force for Financial Year 2013/14. As such, the Output Plan forms part of the Terms of Reference for the Chief of Defence Force, and provides the output specifications upon which the Terms of Reference are based. It also amplifies information provided in the New Zealand Defence Force Statement of Intent and is used for command, internal management and reporting purposes. File: NZDF S35W2 (v)

6 OUTPUT PLAN FOR THE NEW ZEALAND DEFENCE FORCE Summary of Outputs to be Delivered 1. A summary of the New Zealand Defence Force (NZDF) Outputs to be delivered to the Minister of Defence for 2013/2014, together with costs 1 and reference to the Output Expense specifications, is detailed in the table below: DEPARTMENTAL OUTPUTS DELIVERED OUTPUT OUTPUT TITLE COST $Million PAGE (Sched-3) EXPENSE MCOA for Policy Advice and Related Outputs Policy Advice Ministerial Services Strategic Military Intelligence S3-4 S3-4 S3-4 S3-4 EXPENSE 2 Naval Combat Forces S3-7 EXPENSE 3 Naval Support Forces S Replenishment Forces Amphibious Sealift Forces S3-9 S3-9 EXPENSE 4 Littoral Warfare Support Forces S Littoral Warfare Support Vessels Diving Forces Military Hydrography Mine Countermeasures (MCM) Forces S3-12 S3-12 S3-12 S3-12 EXPENSE 5 Naval Patrol Forces S Offshore Patrol Forces Inshore Patrol Forces S3 17 S3 17 EXPENSE 6 [Reserved] EXPENSE 7 Land Combat Forces S Command, Control and Intelligence Manoeuvre Elements (Infantry and Reconnaissance) S3 22 S Outputs are fully costed in that they include not only the direct costs of the force elements, but also the costs of relevant support and overhead units which are attributed to that output. They also include both fixed and variable costs. OP - 1

7 DEPARTMENTAL OUTPUTS DELIVERED OUTPUT OUTPUT TITLE COST $Million PAGE (Sched-3) EXPENSE 8 Land Combat Support Forces S Artillery Engineers Communications Military Police S3 26 S3 26 S3 26 S3 26 EXPENSE 9 Land Combat Service Support Forces S Transport Medical Supply Maintenance Support Movements S3 30 S3 30 S3 30 S3 30 S3 30 EXPENSE 10 Special Operations Forces S Special Forces Counter-Terrorist Forces Chemical, Biological, Radiological, Explosive, Improvised Explosive Device Disposal S3 35 S3 35 S3 35 EXPENSE 11 Naval Helicopter Forces S3 38 EXPENSE 12 Airborne Surveillance and Response Forces S3 40 EXPENSE 13 Fixed Wing Transport Forces S B757 Transport Force C-130H Transport Force S3-43 S3-43 EXPENSE 14 Rotary Wing Transport Forces S3-46 EXPENSE 15 MCOA for Miscellaneous Support Activities S Mutual Assistance Programme NZ Cadet Forces Support Service Museums Support to Youth Development S3-49 S3-49 S3-49 S3-49 EXPENSE 16 Operationally Deployed Forces S3-52 Total Output Cost $2,290,770 million OP - 2

8 Purpose and Scope 1. The objective of the Output Plan is to provide the Minister of Defence with information to assess the strategic alignment and value of the NZDF Outputs and, where relevant, to make comparisons with similar outputs across both the public and private sectors. The output specifications in this plan are intended to assist the Minister in determining that the outputs conform with and link to the Government's outcomes for defence and defence policy objectives, and also represent value for money. 2. The Output Plan allows the Minister of Defence to: a. agree to the cost, quantity and quality of desired outputs; b. make comparisons with other providers where possible; c. assess the risks and obligations associated with delivery; d. record any amendments; e. subsequently verify that each output has been delivered; and f. hold the CDF accountable for delivery of the specified outputs. 3. Information on the composition of the NZDF Outputs, the present force structure for their delivery, and the output specifications are contained in Schedules 1 to 4 of this Output Plan. A summary of the content of each schedule is as follows: a. Schedule 1: Framework for the NZDF Outputs. This schedule covers CDF s corporate guidance and the framework governing the delivery of NZDF Outputs. b. Schedule 2: NZDF Force Structure. This schedule describes the current force structure and details the force elements that contribute to the forces provided as options for employment by Government. c. Schedule 3: NZDF Output Specifications. This schedule details the description, quantity, quality, measurement and cost for each NZDF Output Expense. d. Schedule 4 (Promulgated Separately). This schedule is classified and contains a summary of NZDF force element preparedness criteria statements down to Output level; information relating to levels of capability, standards and response times, and aspects which could impact on output performance and/or the ability of force elements to maintain the Directed Level of Capability (DLOC) or to attain the Operational Level of Capability (OLOC). 4. Schedules 1, 2, 3 and 4 to this Output Plan, and any amendments to the output specifications contained therein, or as may be agreed by the Minister of Defence during the course of the year, shall be deemed to form part of the Plan. OP - 3

9 Powers and Obligations 5. The powers and obligations of each party include: a. The Minister of Defence (1) In accordance with Section 7 of the Defence Act 1990 the Minister of Defence shall have the power of control of the NZDF which shall be exercised through the CDF. (2) The output mix within an output expense can be changed at the discretion of the Minister of Defence. b. The CDF CDF is accountable to the Minister of Defence for the delivery of the outputs specified in this plan as to the quantity, quality, timeliness and cost specified. CDF remains accountable for the delivery of any part of an output expense or output that has been provided by a third party on his behalf. c. Statutory Independence of the CDF Section 8 of the Defence Act 1990 gives the CDF sole responsibility for: (1) command of the Navy, Army and Air Force through the respective Chiefs of Staff; and (2) command of any joint force, either directly or through a joint force commander. Consequently, nothing in this plan shall affect the statutory independence of the CDF from Ministerial direction with regard to: (1) the issue and promulgation of Defence Force Orders (DFOs); (2) all aspects of military discipline; (3) the appointment or enlistment of members of the Armed Forces and the appointment of civil staff of the Defence Force; (4) the terms and conditions of service for members of the Armed Forces, and the conditions of employment of civil staff of the Defence Force; and (5) the establishment and functions of the Chiefs of Staff Committee. OP - 4

10 Defence Amendment Bill 6. The Defence Amendment Bill 2012 is currently going through the Parliamentary process. The Bill amends the Defence Act 1990 to implement government policy as set out in the Defence White Paper Relationship to Veterans Affairs New Zealand (VANZ) 7. With effect from 1 July 2008 VANZ became an operational unit of the NZDF. From 1 July 2013, outputs appropriated in Vote Veterans Affairs New Zealand have been merged into Vote Defence Force. The total output cost shown in the preceding table ($2,290,770 million) differs from the total output cost shown within the Forecast Financial Statements of the NZDF within the 2013/14 Estimates documents as those statements incorporate the departmental output expenses of VANZ - whereas this Output Plan does not. A separate VANZ Output Plan for 2013/14 between the Minister of Veterans Affairs and the Chief of Defence Force, delegated to the General Manager of VANZ, has been raised. Term of the Output Plan 8. The NZDF Output Plan is annual and matches the period of the Parliamentary appropriation. This Output Plan covers the period 1 July June Procedures for Amendment 9. The Output Plan, including the Schedules, may be amended from time to time following discussions between CDF and the Minister of Defence. Such changes will normally be the result of unforeseen events or external pressures that have affected the capabilities or activities of the NZDF. The cost of an output in the schedule may be altered, subject to the provisions of the Public Finance Act A record of any decisions made on this plan, at formal meetings, will be included in the appropriate minutes. Following any informal discussions between CDF and the Minister of Defence, a record of decisions made and action to be taken regarding amendments to this plan, or the schedules thereto, will be prepared by CDF's staff for countersigning by both parties. Formal amendment to this plan will be issued in writing, as required, and attached to the plan. Copies of the original and amended plan will be held by both parties to the plan. Coordination and Consultation 11. To ensure effective policy coordination relevant NZDF staff will be made aware of the Government's key priorities and economic strategy, and there will be consultation with all government departments/agencies likely to be affected by resource management and service delivery decisions taken by the NZDF. All the actions of the NZDF will be in accordance with the collective interests of the Government. Monitoring and Reporting 12. CDF will provide the Minister of Defence with a number of reports on the NZDF to ensure he is afforded the following information: a. an update of force element preparedness and response options to undertake the tasks defined in each output, against measures and standards contained in Schedules 3 and 4 of this plan; b. progress against Strategic Objectives; OP - 5

11 c. an explanation of any below standard output performance, or inability to deliver, and any resulting impact on DLOC generation; d. an explanation of all significant variances; and e. the proposed action to correct negative variances. 13. CDF will report to the Minister as follows: a. Oral reports on NZDF output production/performance and progress with Strategic Initiatives, at the regular meetings held with the Minister. b. Written reports on occurrence when necessary, detailing any significant or unexpected variations of military capability, programmed level of activities, or failure to progress Strategic Initiatives. c. Weekly summary of NZDF activities containing the rolling two-week forecast of NZDF activities. d. Quarterly reports covering: (1) circumstances or developing trends that have the potential to lead to failure to produce an output to its agreed performance specifications at year's end, or to progress Strategic Objectives, and the remedial action that has been taken; (2) issues that have arisen, either internally or externally, that impact upon CDF's responsibility for personnel issues, financial performance and efficient management of the NZDF; (3) summary financial report, including variances; (4) major community support; and (5) anticipated significant issues or events for the next quarter. e. Annual Report to Parliament, provided at the end of each financial year (normally tabled in Parliament in September each year). This will include: (1) the performance achieved against all agreed measures and standards for all outputs; (2) performance against costs for each output expense; (3) progress in achieving Strategic Objectives and Initiatives; (4) all amendments to the Output Plan made during the year; and (5) an explanation of any failure to reach an agreed performance specification. f. Special reports when requested by the Minister. g. Statutory requirements reports as required by the Public Finance Act 1989 (such as a Statement of Intent and Annual Report) or any other relevant acts. 14. Quarterly Reports, including preparedness of force elements, will be forwarded to the Minister after the end of each quarter. For 2013/14, Quarterly Reports will be forwarded to the Minister by: a. First quarter - 15 Nov 13 (covering Jul - Sep 13). b. Second quarter - 28 Feb 14 (covering Oct - Dec 13). 2 c. Third quarter - 15 May 14 (covering Jan - Mar 14). d. Fourth quarter - 15 Aug 14 (covering Apr - Jun 14). 2 Due date delayed due to Christmas break. OP - 6

12 Interpretation 15. If any differences of opinion between the CDF and the Minister of Defence arise under this plan, or any matter not covered by the plan relating to the supply of the outputs arises, the parties agree to discuss them with each other and seek to resolve the issues. Sanctions 16. NZDF outputs provide the Government with a range of military forces (force elements) to protect and advance the security interests of New Zealand. However, it is not possible to forecast precisely the specific forces and circumstances of the responses to be made during 2013/14. The overall aim will be to meet commitments in a manner that is acceptable to Government and that is agreed between the Minister of Defence and the CDF. 17. In the event of an inability to deliver any particular output, the cause will, as a matter of course, be the subject of discussion between the CDF and the Minister of Defence. Failure to deliver fully any output agreed with the Minister will also be explained in the Annual Report and highlighted in audit and quarterly reports. Payment 18. The amount paid by the Crown for each output expense shall be for the full year but shall be paid in instalments during the year based on the cash payment schedule agreed with Treasury. 19. The price to be paid for an output expense in the Plan shall be based on the estimated cost of the outputs, excluding GST. Procedures for Funding Unplanned Major Operations 20. NZDF Outputs contain appropriations for known activity levels. If the Government decides to activate a significant contribution to an operation that has not been funded, under Output Expense 16 (Operationally Deployed Forces), the additional costs associated with generating the OLOC required, the deployment, and the sustainment of the force for the duration of the task, will need to be considered separately. In such circumstances, funding will be provided by a reprioritisation of existing expenditure and by further appropriation, as necessary. Funding proposals for major unplanned initiatives, including trade-offs against existing activities, will be considered on a case-by-case basis within agreed Cabinet procedures. Signed Statement 21. Schedule Three of this Output Plan, which forms part of my Terms of Reference with the Minister of Defence, has been signed off by myself and the Minister of Defence as part of the Information Supporting the Estimates of Appropriation for Vote Defence Force for FY 2013/14. (Signed on behalf of CDF by VCDF). 1 May 2013 OP - 7

13 Attachments: 1. Schedule No 1 - Composition of the NZDF Outputs (Parts 1 and 2) Appendix 1: Description of Employment Contexts 2. Schedule No 2 - NZDF Force Structure 3. Schedule No 3 - NZDF Output Specifications [Statements of Service Performance (SSPs)] Appendix 1: Appendix 2: Appendix 3: Summary of Availability/Preparedness Against ECs Services in Support of the Government and the Community (Including Multi-Agency Operations and Tasks) Planned Major Exercises and Activities 4. Schedule No 4 - Summary of NZDF Force Element Operational Preparedness Criteria Statements, down to Output level, for 2013/2014 (Classified) [Issued separately and available on SWAN.] OP - 8

14 SCHEDULE NO 1: FRAMEWORK FOR THE NZDF OUTPUTS PART 1 CORPORATE GUIDANCE STATEMENT BY THE CHIEF OF DEFENCE FORCE The White Paper confirmed the role of the Defence Force remains being ready, and able to deliver on operations be they combat, peacekeeping, or humanitarian assistance. Being ready, and delivering, has been an ever present component of Service life and has been no more evident than through our operations, combat deployments and our humanitarian efforts, both at home and abroad. Our performance in all of these roles has again demonstrated that we know we have the right people, skills and equipment, and that we are ready and able to succeed when and where required. Our Defence Force has embarked on operations, maintained preparedness, introduced and developed new capability and delivered on the reform programme reflecting the strategic direction set out in the White Paper. Government spending for defence has in fact remained relatively stable and this reform programme has allowed us the headroom to focus on frontline capability. This includes a weapons upgrade for our frigates, a new replenishment ship for the Navy, a range of new combat weapons systems for the Army and new and upgraded aircraft for the Air Force to better train our pilots and crew. The public can have confidence that Defence Force equipment on operations is world class and suitable for the role. Now that we have largely withdrawn from major operations that have occupied us for the last decade Afghanistan, Timor-Leste and Solomon Islands, we will be continuing to provide a responsive combat capability to protect New Zealand and our interest in the Southwest Pacific. The Defence Force, in partnership with Veterans Affairs New Zealand, will also assist in coordinating the New Zealand Government s participation in key forthcoming commemorations. While the business of a Defence Force will likely see people put into harm s way, executing our tasks in the safest way possible must be our priority. Good health and safety practices aren t some commercial work practice add-on for a Defence Force. Health and safety is an essential component of the general wellbeing of our people - it is the right thing to do for our people and I am committed to achieving organisational excellence in health and safety. Our Future 35 strategy builds on the strategic themes of capability renewal and organisational reform that have guided our change programme. How we balance the familiar with the new is outlined in Future 35. We have further developed our strategic objectives and are able to provide a more detailed roadmap of where we will be focusing our efforts. S1-1

15 That focus is based around three timelines: Delivering a Joint Amphibious Task Force by 2015; Enhancing our combat capability by 2020; and Having an integrated Defence Force by 2035 Despite these changes, our mission has not changed keeping New Zealand secure. Integral to our mission, are our operations to secure our exclusive economic zone, our work in supporting Antarctica and our security responsibilities in the Cook Islands, Niue and Tokelau. We have introduced a new vision: Joint Operational Excellence. It is one of the signposts for how we will be operating in the future and it points to us being integrated. It is about being an operationally focused military force. This is our core business; our reason for being. S1-2

16 SCHEDULE NO 1: FRAMEWORK FOR THE NZDF OUTPUTS PART 2 DELIVERY OF NZDF OUTPUTS Purpose 1. The NZDF Statement of Intent contains information at the strategic level. It covers, in some detail, the linkages with the Government s Defence White Paper 2010, Defence outcomes, strategy, and changes signalled in the recent White Paper. That information will not be repeated here. 2. Rather, this part of Schedule 1 will focus primarily on the main aspects that relate directly to the delivery of the NZDF Outputs. 3. The following is a diagrammatic representation of the linkages involved from Government direction on Defence to the delivery of NZDF Outputs. It is important to understand from the diagram that, generally, the Delivery of NZDF Outputs is our business as usual whereas the NZDF Strategy is to create and manage change. Change, in this context, is effected through the on-going NZDF Strategic Objectives and Initiatives. S1-3

17 DEFENCE POLICY FRAMEWORK Defence Act 1990 Government s Goals, Key Priorities, National Security Interests and Principal Tasks for the NZDF Defence White Paper 2010 Defence Capability Plan NZDF OUTCOMES FRAMEWORK Defence Outcomes Secure New Zealand, including its people, land, territorial waters, EEZ, natural resources, and critical infrastructure Reduced risks to New Zealand from regional and global insecurity New Zealand values and interests advanced through participation in security systems New Zealand is able to meet future national security challenges Mission, Vision, and Values Framework NZDF Mission to secure New Zealand against external threat, to protect our sovereign interests, including in the Exclusive Economic Zone (EEZ), and to be able to take action to meet likely contingencies in our strategic area of interest NZDF Vision Joint Operational Excellence Integrated in the way we work, train and operate at home and abroad. We need to focus on working better together and being excellent in all we do, so that we are better able to win on operations. Courage Commitment Comradeship Integrity DEFENCE MANAGEMENT FRAMEWORK Frameworks: Capability Management Operational Preparedness and Evaluation Performance Management Human Resource Management Risk Management Financial Management International Engagement Defence Operating Model NZDF STRATEGIC FRAMEWORK Strategic Priorities Future 35 People Sustain Operations Joint Amphibious Task Force Reinvestment in Defence Joint Enablers NZDF Output Plan and Annual Plan NZDF Statement of Intent and Strategic Plan Delivery of NZDF Outputs Step Change Improvement in Delivery of Outputs 1 16 BUSINESS AS USUAL AGENDA FOR CHANGE S1-4

18 The Defence Act The primary legislation concerning the raising and maintaining of New Zealand s armed forces is the Defence Act That Act confirms the purposes of the armed forces, constitutes the NZDF, affirms that the armed forces are under Ministerial authority, defines the roles and relationships of senior officials, and makes provisions, generally, in respect of the establishment, control and activities of the NZDF, and related matters. 5. The Act also allows the Armed Forces to be made available for the performance of public services and assistance to the civil power in time of emergency, either in New Zealand or elsewhere. 6. The Defence Amendment Bill, currently before Parliament, seeks to amend the Defence Act to implement government policy, as set out in the White Paper. Primary Mission of the New Zealand Defence Force 7. The primary mission of the NZDF remains: to secure New Zealand against external threat, to protect our sovereign interests, including in the Exclusive Economic Zone (EEZ), and to be able to take action to meet likely contingencies in our strategic area of interest. NZDF Vision: Joint Operational Excellence 8. The NZDF vision is integrated in the way we work, train and operate at home and abroad. We need to focus on working better together and being excellent in all we do, so that we are better able to win on operations. 9. The Defence Force s vision is one of the signposts for how we will be operating in the future and it points us to being more integrated in the way we work, train and operate at home and abroad. Excellence is not an end state it is ongoing and reflected in the way we do things. Joint Operational Excellence will be achieved through the cascading timelines of 2015: the Joint Amphibious Task Force, 2020: enhanced combat capability, and by 2035: the integrated Defence Force. Minister s Priorities 10. The Minister of Defence has confirmed that his priorities for the NZDF for 2013/14 are to be focused on the following: a. addressing affordability issues; b. maintaining momentum in key relationships; and c. organisational improvements. 11. More detail on these priorities is provided in Section 4 of the Statement of Intent. S1-5

19 Strategy 12. The NZDF s strategy is illustrated in Future 35 and in section 3 of the Statement of Intent. It sets out how the Defence Force will meet the defence and security needs of New Zealand out to NZDF Outputs 13. All NZDF Output Expenses contribute to at least one Defence Outcome and a number contribute to all. While the Defence Outcomes are grouped by, and are relevant to, geo-strategic regions, the NZDF Outputs are grouped by NZDF force elements that are relevant to employment in a number or all of the geo-strategic regions. 14. The NZDF Outputs, in the main, comprise the military capabilities resident in the force elements of the Navy, Army and Air Force and, from a joint perspective, when these force elements are grouped under the operational command of HQ JFNZ. The NZDF structure and outputs are aligned to provide clear command responsibilities and accountability for output delivery. The Government purchases annual outputs from the NZDF at specified levels of capability and preparedness that provide options for particular military tasks to achieve the Defence Outcomes. Inter-Department/Agency Collaboration 15. The NZDF is not the sole contributor to Defence Policy Objectives or Outcomes, or the security of New Zealand; other government departments and agencies also contribute. The relationship that the NZDF has with these other departments and agencies, under the all-of-government approach, is taking on increased importance. A diagram showing the main departments/agencies that the NZDF has a working relationship with, and in most cases shares common outcomes, is included in the NZDF Statement of Intent. It should also be noted that, in most situations in New Zealand, the other government departments/agencies are being supported by the NZDF, i.e. those departments/agencies take the lead. Note: For additional detail on the NZDF s relationships with other government departments/ agencies, see Appendix 2 to Schedule 3 to this Output Plan. Capability Management Framework 16. NZDF capabilities rely heavily on capital equipment in most areas of activity - ships, aircraft, vehicles and weapons. For that reason comprehensive processes are necessary to ensure that: a. capability requirements are properly defined; b. acquisition processes are sound; c. capital assets are managed properly during the course of their life; and d. capital replacement projects are initiated in a timely manner. 17. These processes are defined in Defence s internal Capability Management Framework (CMF), which is a governance and management system for long-term investments in defence capabilities. The CMF is the means through which Government defence policy is translated into military capabilities that are able to meet the Government s security objectives. The CMF is designed to give clarity of responsibility, accountability and process throughout the life of a capital project. 18. The CMF strategy focuses on identification of all the functional components of the proposed capability and on the quality of the information required in major defence S1-6

20 capability projects (new and upgraded), including cost estimates, operational assessments and whole-of-life management. Employment Contexts 19. Strategic guidance provides information on the circumstances in which the Government may choose to use military forces. The CMF uses this guidance to develop regionally grouped Employment Contexts. Employment Contexts are descriptions of representative and illustrative security events for which there is a likelihood that a New Zealand Government would expect to make a military response should they occur. Employment Contexts are selected through assessment of New Zealand s geo-strategic situation and international security trends. The Employment Contexts are also chosen on the basis of their likelihood of occurrence in the near and longer terms and the consequences for New Zealand s Defence Outcomes if the NZDF was unable to provide an appropriate response. Employment Contexts include high level Operational Concepts which, in turn, drive Military Response Options (MROs) and the associated Joint Mission Essential Tasks (JMETs), that is, those tasks that deployed forces must be able to perform. These JMETs drive the priorities for the single Services and joint annual training activities and which determine the output parameters that need to be delivered in order to meet the Government s requirements. The Employment Contexts also designate the anticipated time (known as the Response Time) available for the final preparation of force elements for their operational deployment; this affects the level of capability that must be maintained on an annual basis. Concepts for operations, Military Response Options, and Contingency Plans (CONPLANS) can then be developed for relevant Employment Contexts. Current Employment Context Operational Concepts list the most likely force elements that would be involved in each security event. These force element lists are a guide only and are not exhaustive; each security event may require the addition or deletion of some force elements. 20. Employment Contexts provide the detail that ensures the NZDF output quality dimension is consistent with defence policy. A description of ECs is provided at Appendix 1 to this Schedule. Note: The current set of Employment Contexts was reviewed in 2007 and approved by the Executive Leadership Board on 15 November The reviewed Employment Contexts reflect the changes in New Zealand s strategic circumstance. Relevant changes have been incorporated into this Output Plan. Military Capability 21. Military Capability is the power to achieve a desired operational effect in a selected environment and to sustain that effect for a designated period. It is the combined effect that systems of inputs have in helping to achieve a particular operational consequence. Military capability goes beyond just equipment. Rather it includes all necessary elements that, together, enable a military capability to achieve an operational effect. The elements that make up military capability are Preparedness, and the components described by the acronym PRICIE as follows: a. Personnel (all personnel elements of the capability including personnel sustainment and individual training). b. Research and Development. c. Infrastructure/organisation/structures, all major infrastructural works projects. d. Concept of operations/doctrine/ collective training. e. Information/technology. f. Equipment and Logistics. S1-7

21 22. Military Capability comprises an amalgam of PRICIE and Preparedness. PRICIE encompasses the quantitative dimension of NZDF Outputs, and preparedness is the qualitative dimension, which is encapsulated in the physical components of fighting power. 23. The physical component of fighting power is the physical means to fight. It has five elements: personnel, equipment, integrated performance, readiness and sustainability. The effective combination of these five elements is essential in order for the NZDF to be deployed in good time and sustained to achieve the tasks assigned by the New Zealand Government. These elements are defined in the NZDF s publication New Zealand Defence Doctrine (NZDDP-D Third Edition 2012). 24. For the purposes of reporting preparedness as part of the Operational Preparedness Reporting and Evaluation System (OPRES), four key measurement areas are used: personnel, equipment, trained state and sustainability (PETS). These are defined as follows: a. Personnel. The servicemen and servicewomen that comprise the NZDF, both regular and reserve, are highly trained and skilled volunteers. They go through a rigorous selection and initial training process that gives them an essential grounding for the further professional development and collective training necessary to turn them into effective combatants. NZDF personnel are highly regarded internationally. Nevertheless, their skills need to be nurtured, developed and retained. No matter how successful they might have been in the past, their effectiveness can easily be undermined by changing economic, social and political factors and by significant shifts in the values of society as a whole. b. Equipment. NZDF force elements can expect to deploy on operations with their existing inventory of equipment. A fundamental part of maintaining war fighting ability is the procurement of the best and most effective equipment that can be afforded. The aim of this procurement philosophy is to achieve a technological advantage over potential adversaries, either in isolation or in conjunction with coalition partners. Ideally those in defence related industries should have a clear understanding of the New Zealand approach to military operations in order that they can better anticipate the NZDF s equipment needs. c. Trained State. Trained state is the end result of individual and collective training across the NZDF. This is achieved only through an understanding of common doctrine, combined with collective training and exercising to rehearse and sharpen the ability to apply it. Commanders devise ways of ensuring that the forces under their command are as prepared as possible for the ultimate demands of war fighting. There can be no compromise on this, as the ability to deploy fully prepared for combat is at the core of war fighting. d. Sustainability. Sustaining military forces in war is as vital a function as their ability to deliver firepower. As soon as an operation starts, events will generate further demands on the force. It cannot be assumed that a campaign plan will survive the first encounter with the enemy. This is why the ability to sustain is so important as part of fighting power. S1-8

22 Level(s) of Capability 25. The Directed Level of Capability (DLOC) is the level of capability that the NZDF is funded to maintain during the financial year in order to provide the Government with options for the commitment of military forces. In purchasing this level of capability, the Government retains in the NZDF the essential minimum capacity from which operationally effective force elements may be generated within agreed Response Times (RT). (RT are adjusted when preparedness states are less than fully prepared (P1.) 26. Using the Employment Contexts it is possible to establish the DLOC that a force element needs to have reached in order to carry out its military tasks effectively. For a force element to be at its DLOC for a particular Employment Context means that it has the requisite preparedness state. The DLOC requirements for all NZDF force elements are detailed in Schedule 4 to this Output Plan. 27. RT will vary depending on the plausible setting (Employment Context) in which the force element may be used. For example, the RT for the Counter-Terrorist forces is very short, meaning that they must be immediately available for such military tasks within their designated degrees of, while the RT for force element contributions to a battalion group is longer and their day-to-day readiness can be designated accordingly. The longer the RT a force element has, the lower the level of capability, up to a point, that the force element has to maintain on a routine basis. Response Times for individual force elements for likely contingencies are detailed in Schedule 4 to this Output Plan. In essence, the Response Time relates to the difference between the preparedness state of fully prepared (P1) and the Operational Level of Capability (OLOC). RT will be increased accordingly, where forces are held below P1 (see the preparedness rating table later in this section). 28. To hold force elements at OLOC on a routine basis is expensive and demanding on equipment readiness and personnel availability and training. When a force element is activated to perform a military task, additional funding may be required to enable that force element to transition from DLOC to (OLOC) (i.e., to resource the additional training and stores usage), for the deployment and for the sustainment of the activated force element for the expected duration of the operation. A force element achieves OLOC at the end of its RT, and is ready to deploy to the specific mission it has been activated for. 29. Two of the dimensions of outputs, Personnel and Equipment, represent relatively fixed costs in the short to medium term and thus cannot provide a sensitive mechanism for varying the amount and cost of the NZDF s annual product. However, as a general statement, the outputs training dimension can be varied in the short term. For example, these can be adjusted on an annual basis by increasing or decreasing the amount of activities undertaken by a force element which will vary the consumption rate of items such as fuel and munitions used during such training. However, there is a minimum level of readiness training activities that need to be undertaken on an annual basis to keep units viable. 30. Varying the training activities has a direct impact on the DLOC of a force element, i.e., if training activities are reduced, then the DLOC is reduced and the force element would: a. not be able to generate OLOC in the specified RT (i.e., would not be fully prepared (P1)); or b. require the RT to be increased to allow for the extra activities that would need to be undertaken to generate OLOC. S1-9

23 31. The training dimension of NZDF outputs offers the potential to vary in the short term (i.e. on an annual basis) the cost of what the NZDF can be tasked to produce. However, there are consequences to making such choices as any extension to Response Time, for example, has an increased activation cost in that more activities have to be undertaken to raise the force element from DLOC to OLOC, and there is a risk that applicable force elements may not be available within the necessary timeframe to provide military options to government. 32. In exceptional circumstances (for example for personnel, technical, or financial reasons), CDF may grant approval, for a specified period, for a force element to maintain a lower level of capability than would otherwise be desirable. The lowest level of capability is the Basic Level of Capability (BLOC). This is the minimum level at which military capabilities have to be held if they are not to be permanently lost. At BLOC, a force element could not reach an OLOC in less than six months, so will not generally be available for military tasks. Also, some of the more complex force elements may take more than six months to regenerate military capability. 33. As a result of equipment modernisation action, commissioning or decommissioning, a force element may not be able to achieve a level of capability. In this case, it is classified as NLOC (No Level of Capability) and would not be expected to be available for military tasks. 34. The diagram below illustrates the relationship between levels of capability and time. Capability Notes: An individual force element is not expected to maintain its DLOC at all times. Depending on, for example, posting cycles, activity rates and exercise programmes, a force element s present (or current) level of capability (PLOC) may fluctuate at, above or below DLOC. Movement from DLOC to OLOC requires the provision of additional resources. The operational viability period is the period of time for which forces must be able to operate independently from the start of operations until guaranteed lines of supply are established. S1-10

24 Providing Government with Choice in NZDF Outputs 35. The output specifications in the NZDF Output Plan (Schedules 3 and 4) provide indicative force element employment options to provide choice to the Government when considering the commitment of NZDF elements to operations. These options relate mainly to the size (quantity) of force elements or parts thereof, and the RT, for applicable Employment Contexts. For example, in terms of contributing infantry elements to operations under the Land Combat Forces (Output Expense 7), the Government has the choice of selecting a sub-element, such as an infantry platoon (up to about 40 personnel) for low-level tasks at short, or larger elements, such as a company contributing to a light task group (motorised or non-motorised - up to about 260 personnel) for higher-level tasks at longer. 36. While these employment options provide a basis for planning, training and assessment of the NZDF, the requirements of actual operational deployments will vary from these standard options. Every operational deployment is different and will require a different mix of factors based on the known requirements at the time. Before forces are committed to operations the NZDF will conduct operation-specific planning in order to provide the government with more detailed advice on employment options, costs and risks. The major factors that will affect government decisions include: a. Variation between the Employment Context planning assumptions and the actual operational situation, such as: (1) National/Political imperatives Foreign Relations policy. (2) Geographic Location. (3) Threat level/s. (4) Military tasks to be performed. (5) Rate of effort required. (6) Friendly Forces / Support. (7) Geography / Demography / Local Infrastructure / Host Nation Support. b. Size of deployed forces; c. Time available to raise force elements/the force to OLOC and to provide task-specific enhancements and training; d. Duration of operational commitment (total length of deployment); e. Level of additional funding required. [Can it be funded from within the current annual appropriated funding for Output Expense 16 (Operationally Deployed Forces) or will additional funding be required? Some reprioritisation of funding within the NZDF may be required]; AND f. Concurrency requirement considerations for both deployed and nondeployed forces. This includes the ability to deliver essential military capability in the New Zealand/South Pacific area (such as tasks under EC 1) while the force is deployed, and the need, based on total length of deployment, for raising replacement and rotation forces to OLOC before deployment. 37. The Government, in considering possible commitment to operations, may well need to apply trade-offs between the factors listed above. For example, multipleforce elements are often reliant on the same pool of personnel and equipment for sustainment and rotation purposes; this therefore reduces the length of concurrent deployments that can be sustained. S1-11

25 38. The total length of deployment poses one of the greater risks for government when considering commitment to operations. Essentially, for the comparatively small forces that the NZDF has, the greater the size of the force to be deployed and the longer the deployment, especially for deployments in excess of 12 months, the greater the risk in the ability of the NZDF being able to sustain that force - in terms of personnel rotations and logistic support. Deployments of greater than 12 months also carry the risks of other DLOC Mission Essential Tasks being eroded if they are not required on the deployment. The NZDF commitment to East Timor ( ) provides for a good example in this regard. 39. The mix of factors that go into the Government s and the NZDF s decision making on options for deployment on operations is complex. It is therefore not realistic to expect the NZDF to detail in this Output Plan a detailed matrix of options for every conceivable situation that might lead to the Government requiring a military response. However, in the detailed strategic and operational planning that is conducted for likely operational commitments to known situations, the Government will be presented with the options. The options presented will detail the known military risks. In general, these risks will revolve around the level of threat (physical and environmental), the length of deployment and the associated ability of the NZDF to sustain the operations in terms of personnel (rotations) and logistic support, and the ability of the NZDF to perform essential concurrent operations in New Zealand and the South Pacific. Impact of Operational Deployments and Introduction of Equipment into Service on Output Expenses/Outputs: Concurrency 40. The NZDF Output Expense/Output Specification tables (for Output Expenses 2 to 14, inclusive) detail the full capacity of the force elements to undertake tasks against designated Employment Contexts. If the force elements, or parts thereof, of any Output Expense are actually deployed on operations the ability of the NZDF to deploy similar force elements, concurrently, to another operation may be significantly reduced. For example, while the NZDF had a battalion group committed to operations in East Timor, another battalion group could not have been concurrently deployed elsewhere. The limited range of capabilities and the limited quantity of force elements maintained by the NZDF means that there may be only limited capacity to deploy like force elements concurrently. 41. From the start of FY 2013/14 (1 July 2013) elements of the NZ Army will be in regeneration mode after the recent past and current high operational tempo of overseas deployments (Afghanistan, Timor-Leste and Solomon Islands). This will provide Army with the capability to provide both a Light Task Group ((LTG) and a Combined Arms Task Group (CATG) for concurrent deployments. The combination of these two task groups also provides an option to deploy an 800 man CATG. 42. The withdrawal of the P-3K Orion and C-130 Hercules aircraft on a rolling programme for upgrading will continue to reduce the full capacity of these force elements. While the minimum number of aircraft required by the NZDF Output Plan for OLOC may be available, the reduced capacity will have an effect on the duration of any operational deployment/s and the ability to rotate any such deployment/s. 43. Output Expense 3 (Naval Support Forces) will not be at full capacity until such time as HMNZS Canterbury has achieved its full operational release. The same restriction also applies for Output Expense 5 (Naval Patrol Forces) in respect to the Offshore Patrol Vessels. 44. In addition to the foregoing, the following elements will be involved in operational deployments at the start of FY 2013/14. These deployments will obviously S1-12