Project ALEXANDER Industry Briefings

Project ALEXANDER Industry Briefings COL Charles Lott Henry de Salis Andrew Gibbs Chief Logistics Officer Army Project Director Deloitte New Zealand New Zealand Army 1 May 2008

New Zealand Defence Force Industry Briefing Project ALEXANDER Contents: Background Logistics Contracts Organisational Structure for FM 585 and FM 1060 Project ALEXANDER Scope of Project ALEXANDER New Zealand Defence Force Location of New Zealand Army and Units Procurement Process Contact Details New Zealand Army 2 May 2008

New Zealand Defence Force Industry Briefings Project ALEXANDER Background The New Zealand Defence Force (NZDF) is to re-tender two contracts for logistics services. The contracts based at Trentham and at Waiouru, end in June 2010. The New Zealand Army is responsible for the re-tender of the contracts and has established a project team for this purpose. The project has been named ALEXANDER. Details of the project are included within this pack. Logistics Contracts The current contacts provide a range of logistic services at base depot and unit level. The services include depot-level and unit-level repair and warehousing. The project will consider whether the scope of the services included within these contracts should change. Organisational structure of FM 585 and 1060 New Zealand Army 3 May 2008

Project ALEXANDER The aim of Project ALEXANDER is to Prepare, Plan and Deliver a Partnership that achieves Agile Logistic Support for the NZDF and the Army for the future. If we translate the aim of Project ALEXANDER we can illustrate to the potential service provider what our objectives are. Deliver a Partnership: Here we are looking to be able to share the risk and the reward between the service provider and the New Zealand Army. We are also looking for the functionality for joint planning and the need to focus on outcomes i.e. availability (Performance Based Logistics (PBL)). Agile Logistic Support: This is very important in today s environment. We believe Agile Logistic Support to be defined as the ability to thrive and prosper in an environment of constant and unpredictable change. Although Project ALEXANDER is a New Zealand Army project, we have received guidance from the Vice Chief of the Defence Force that we may align the existing contract with other NZDF contract end dates to rationalise common capabilities. Therefore a whole of NZDF approach will be taken in order to identify additional capabilities proposed that may not already be covered by current NZDF contracts. Project ALEXANDER is therefore looking at a wider scope of services then is currently contained within the current contracts. Scope of the Project The scope of the project will be developed during 2008. It may include: Base repair and base warehousing functions. Repair and warehousing at camps. Project ALEXANDER will also consider: The above functions in a deployed environment. The availability and management of equipment. 1 1 Details of current New Zealand Army equipment in service can be found at www.army.mil.nz New Zealand Army 4 May 2008

New Zealand Defence Force Industry Briefings The New Zealand Defence Force The mission for the New Zealand Defence Force (NZDF) is "to secure New Zealand against external threat, to protect our sovereign interests, including the Exclusive Economic Zone, and to take action to meet likely contingencies in New Zealand s area of strategic interest". The NZDF, is a fully integrated military and civilian organisation employing around 9,000 people in the regular force, 2,500 in the territorial force, and approximately 2,500 civilians across the armed services of Navy, Army and Air Force, operating as Three Services as One Force being the best in everything we do. The NZDF comprises Headquarters, the three Services (Army, Navy and Air Force), and a Joint Force Command. Each part has specific roles and resources to help meet the NZDF mission. The Chief of Defence Force (CDF), the three single Service Chiefs, and the Joint Force Commander, lead the Defence team. Head Quarters New Zealand Defence Force HQ is the command, policy and administrative centre in Wellington, providing overall direction and management of the whole of NZDF. New Zealand Army The New Zealand Army provides a land combat force consisting of infantry, light armored vehicles, and reconnaissance, artillery, engineering, signals and logistic units. Royal New Zealand Navy The Royal New Zealand Navy is responsible for the maritime defence of New Zealand and its interests, and operates ocean-going frigates, Seasprite helicopters and a replenishment ship. It also has a hydrographic and oceanographic research ship, a diving team, and has the capability to patrol in inshore and offshore waters. Royal New Zealand Air Force The Royal New Zealand Air Force provides maritime surveillance and reconnaissance using the Orion, Hercules and Boeing aircraft to provide long range and tactical air transport and Iroquois helicopters which support ground forces and civil authorities. Headquarters Joint Forces New Zealand Joint Forces New Zealand coordinates all joint military operations in New Zealand and overseas, enabling closer co-operation across the three Services in planning and executing operations. The Agile Force Agility sits at the core of the culture and strategy of the NZDF. The NZDF must be agile in its thinking, planning, training, and on operations. Our capacity to plan and execute operations rapidly, flexibly and effectively is vital. Being a small but highly professional Defence Force we consider agility to be an essential operating concept. The concept of agility compliments NZDF s core values of Comradeship, Commitment, Courage and Integrity. New Zealand Army 5 May 2008

Resource Efficiency Efficiently and effectively using the resources we already have will ensure we continue to improve and develop the modern Defence Force that New Zealand requires. We have initiated a series of internal reviews around the themes of resource allocation and management work programmes. Being a Valued Partner Being a valued partner links closely with our intention to be the best in everything we do. Operationally we look to work alongside our coalition partners with confidence. Organisationally we aim to sustain the trust of our stakeholders, both internal and external. Culturally we aim to do the right thing by those who serve with us. The NZDF expects professional excellence, high ethical standards and team work from both its service and civilian personnel. Current New Zealand Defence Force Deployments Type of Deployment Operationally Deployed Forces Non Operational Overseas Deployments / Exercises Non Operational Overseas Postings Locations Afghanistan, Timor-Leste, Solomon Islands, Kosovo, Egypt, Middle East, Sudan, Iraq, South Korea, Antarctica and the Persian Gulf. Cook Islands, Malaysia, Singapore, Tonga, Vanuatu, UK, USA and Canada. Defence Advisers / Attached and Defence personnel attached to New Zealand Embassy s and High Commissions. New Zealand Army 6 May 2008

Location of the New Zealand Army and Units Linton Camp Headquarters 2 nd Land Force Group 1 st Battalion RNZIR (Cavalry) 16 Field Regiment (Artillery & Air Defence) 2 Engineer Regiment 2 Signals Squadron 2 nd Logistic Battalion 2 Health Services Battalion NZ Army Simulation Centre Auckland 1 NZSAS Wellington Headquarters NZDF Army General Staff Burnham Camp Headquarters 3 rd Land Force Group Queen Alexandra s Mounted Rifles 2/1 Battalion RNZIR (Light Infantry) 3 rd Logistic Battalion Army Adventure Training Centre New Zealand Army Band Limited Service Volunteer Company Waiouru Camp Headquarters Land Doctrine and Training Group (LDTG) Officer Cadet School Land Operations Training Centre Trentham Camp Headquarters Joint Forces New Zealand Joint Logistics Support Organisation (JLSO) Army General Staff - Messines Army Centre (HR, Career Management. Capability Branch, Logistic Executive) NZDF Command & Staff College 1 NZ Explosive Ordnance Device Squadron New Zealand Army 7 May 2008

New Zealand Defence Force Industry Briefings Procurement process Introduction This paper summarises the procurement process that NZDF will follow to select a service provider. Given the significance of this transaction the NZDF wishes to engage formally at an early stage with the market to achieve the following outcomes: To gain a better understand of the markets capacity, capability and desire / willingness to provide the services NZDF and NZ Army requires; It provides an opportunity to promote the tendering of the contract and encourage market participation; and Seek assistance from the market to shape and confirm the scope of services to be included in the contract and the proposed delivery method. The key is to make the service offering as attractive as possible to the market. Opportunities The NZDF has identified the following opportunities as a result of outsourcing logistics and repair functions: 1. Encourage innovation and leverage the NZDF s infrastructure and capability; 2. Develop a partnership with a service provider where the relationship is one of mutual trust and benefit; 3. Reinvigorate the logistics functions in the NZDF as an industry leader; 4. Ability to build capability back into the NZDF through training and knowledge sharing; 5. Simplify and normalise processes across the locations single logistics function; and 6. For the logistics function to deliver value for money to the NZDF. EOI Process The NZDF intends to engage with the market for a defined period of time before entering into a competitive process. To do this the NZDF intends to shortlist market participants through an EOI process and select a manageable number to engage with from September to November 2008. It is anticipated that the short listed candidates will meet as a group with New Zealand Army three to four times in New Zealand during the period. Participation in the EOI Process - Basic Rules and Guidelines Participation in the EOI process will be based on the following rules and guiding principles: 1. The costs of participation will be met by the participant; 2. Participants can withdraw at any stage; 3. There is no guarantee that a participant will be short listed to participate in the RFP process, however that is the intention; 4. Participants are expected to contribute the appropriate resources to work with the New Zealand Army to assist in shaping the services that will go to market; 5. One person per organisation; 6. The focus of the engagement with the market will not be on understanding the current service being provided, but on the future state and testing whether the new requirements as configured can be delivered by the market i.e. what is the art of the possible; 7. Commercial sensitive information of the current service provider will not be disclosed; and 8. That the team environment will be one of sharing, peer to peer coaching style, where all participants will have an opportunity to contribute and learn. New Zealand Army 8 May 2008

A memorandum of understanding setting out the expectations of each party will be included in the EOI and will be agreed between the parties prior to commencement. Procurement Key Dates The following table is a summary of the proposed key milestone dates: Description Date 1 Project team industry visits May 2008 2 Release of EOI to market 20 June 2008 3 Industry briefing in NZ 1 July 2008 4 EOI responses received 31 July 2008 5 Shortlist service providers 27 August 2008 6 Consult/collaborate with shortlist Sept to Nov 2008 7 Business case Dec 2008 8 Issue RFP April 2009 9 RFP responses received Jul 2009 10 Sign contract Dec 2009 11 Transition starts Jan 2010 12 New Contract Starts Jun 2010 New Zealand Army 9 May 2008

New Zealand Defence Force Industry Briefings Contact Details Henry de Salis Project Director NZDF Address: Project ALEXANDER X Block C/o Messines Army Centre Somme Road Private Bag 901 Upper Hutt New Zealand henry.fanedesalis@nzdf.mil.nz www.army.mil.nz www.nzdf.mil.nz Andrew Gibbs Project Partner Deloitte Address: Project ALEXANDER X Block C/o Messines Army Centre Somme Road Private Bag 901 Upper Hutt New Zealand andrew.gibbs@nzdf.mil.nz agibbs@deloitte.co.nz www.deloitte.co.nz New Zealand Army 10 May 2008