casg cost principles
2.9Agreements, internal to Defence, between the Capability Acquisition and Sustainment Group and each capability manager, set out the level of performance and support required by the capability manager.21 These are Materiel Sustainment Agreements (MSAs). Consequently, while cannibalisations are undertaken to avoid failure against Materiel Ready Days (Materiel Availability outcome), their true impact is on Materiel Confidence with secondary impact upon Sustainment Efficiency outcomes. Lack of a performance based ethosDefence had failed to define performance targets for individuals and organisations and this had been a key driver of inefficiency and sub-optimal behaviours that affected sustainment performance. This matter is also taken up in the next chapter. That review found sustainment is still being treated as a poor relation compared to the generally higher-profile acquisition work.27 The Sustainment Complexity Review (2010), which found 50 plus sustainment business models in DMOs Systems Program Offices, explained this diversity by reference to the greater attention Defence had given acquisition. The implicit assumption is that future costs will be influenced by the same factors as past costs. 4.17There is no evidence that Defence further developed a planned approach to a reform program supported by clear objectives or benchmarks, or that it provided reports annually to government on the achievements and benefits of this new approach. Defence conducts reviews of sustainment performance through sustainment gate reviews that help Defence to obtain insight into a project or products progress and status. To facilitate equitable distribution of indirect expenses to the cost objectives served, it may be necessary to establish a number of pools of F&A (indirect) costs. 3.1To assess whether Defence has in place an effective performance framework to support the management and external scrutiny of materiel sustainment, the ANAO examined: With the introduction of its Sustainment Performance Management System (SPMS), Defence continues to develop a basis for an effective monitoring system for sustainment. 8Joint Committee of Public Accounts and Audit, Report 442, pp. Defects post Maintenance Period. Set realistic performance targets and document them in the Materiel Sustainment Agreements. 62Until the implementation of the full system, project performance review data will continue to be captured using spreadsheets. It is now too late to revisit these events; nonetheless, Defence could benefit from evaluating future major change programs. 3.31To develop sound measures of efficiency, Defence also needs to understand the cost of ownership of its assets (see paragraph 3.34 forward) and to take account of staff costs in assessing the total cost of its activities (see paragraph 3.44 forward). Defence therefore requires a robust framework to manage the risks associated with the widespread use of contracted services. During the course of this audit (9January2017) the Committee announced that it had commenced an inquiry into Defence Sustainment Expenditure. However, based on the ANAOs review of a Quarterly Performance Report produced during the audit, its contents are neither complete nor reliable, it takes two months to produce and its contents are sometimes difficult to understand. Commercial organizations are subject to the cost principles located at 48 CFR Part 31.2 Federal Acquisition Regulation. The use of the traffic light indicators Green (acceptable performance) or Amber (early signs of underperformance). Failure to pay sufficient attention to sustainment early on would increase the cost of ownership to Defence. Defence expects that all sustainment products will be reporting in SPMS by the end of June2017. 80An example of a potential comparator database is the US Navys Visibility and Management of Operating and Support Costs (VAMOSC) database. The Secretary of Defence and Chief of the Defence Force. Such visibility would enhance Defences ability to benchmark its sustainment performance against allied countries with similar equipment. Poor outcomes in this Key Health Indicator will also have an impact upon the Sustainment Efficiency outcomes, as rework will require additional funding and stores to remedy. A performance measure under this Purpose is Military capability is sustained consistent with Government requirements. The Defence Science and Technology Groups Aerospace Division had concluded that a systematic and top-down approach such as enterprise-wide asset management was particularly suitable to address the challenges of reforming sustainment management in Capability and Sustainment Group. 43 199798, Lifecycle Costing in the Department of Defence, examined Defences 1992 policy on lifecycle costing, finding that while Defences policy and procedures advocate the use of whole-of-life costings in acquisition decisions, in practice, Defences use of whole-of-life costing was uneven. 3.50To assess Defences public reporting for the sustainment of specialist military equipment, the ANAO considered: 3.51The Public Governance, Performance and Accountability Act 2013 (PGPA Act) aims to improve the line of sight between what was intended and what is delivered. Defence analysed these targets and developed overall targets to finalise the Defence White Paper and design of the Strategic Reform Program. Once fully implemented this system should be capable of systematically reporting against a suite of performance indicators settled in agreement with Capability Managers. The SPMS system was not fully implemented during the ANAOs audit fieldwork but is expected to be fully operational by the end of June2017. 145According to AusTender records, the cost of the review and resulting report was $613 000. At its core, this is a two-step decision-making framework comprising risk analysis and a tailored strategy done at the earliest practicable stage of a project: 5.50Defence considers that The game changer for Capability Acquisition and Sustainment Group will be the Smart Buyer model that will unleash our organisational capability.167 Defence sees the main benefit of this process as early identification of risks and, as a result, better allocation of Defence resources.168 Its smart buyer paper sets out detailed issues for consideration in areas of risk separately for both acquisition and sustainment. The Quarterly Performance Report is the primary way by which Defence provides information to government and senior Defence personnel about the status of major acquisition and sustainment activities. The idea is to establish a managed resource pool that provides skilled personnel for CASG activities. Source: Defence, 2008 Audit of the Defence Budget, 2009, pp. The 2012 Coles Review, by subsequent reports, has been both successful and insightful.119. Source:Defence, Portfolio Budget Statements and Additional Estimates Statements, 200607 to 201718. External Maintenance Period Activity Cost Growth. The Tiger fleet achieved a total of 312.0 flying hours in June against a planned 698 hours. The availability of appropriately skilled, qualified and authorised staff (Navy and Civilian) to fill positions in the Systems Program Office and Capability Manager Representative organisations is a key contributor to all three of the Materiel Sustainment Agreement outcomes and a key constraint to long term Materiel Confidence. Implementing the Mortimer Review recommendations became, as a whole, one of the 15 streams of the Strategic Reform Program in 2010. However, Defence did not adequately assess the outcomes from the smart sustainment reforms. Most recently, the First Principles Review recommended immediate implementation of measures of productivity, a related concept. In 2011, a review of the Smart Sustainment program by consultants engaged by Defence identified that there were no records to support how these funds were spent or what benefits had been realised. Improving the How 4. An internal survey a decade ago found that Systems Program Offices attributed the problem to Defence management in Canberra: sustainment still does not get sufficient level of attention and needs to be recognised as the major component of the life cycle. This stream of activity is likely to take much longer than the two years expected for implementation. Defence agreed to the recommendation that total cost information be provided to relevant Defence committees, with qualification. Monitor and controls project cost, schedule and scope; Performs analyses and prepares reports in orders to ensure that contracts are within the negotiated and agreed-upon parameters and CASG cost principles guidelines; Timely and accurate project and corporate reporting; Incorporate contractual changes, ensure adequate funding on projects 4.4Defence informed the ANAO that it believed it had achieved a five per cent sustainment budget cut in 200809. Browse our range of publications including performance and financial statement audit reports, assurance review reports,information reportsand annual reports. Figure 3.5:Cumulative estimates of Defence sustainment costs, by year, 200607 to 202021. 11Military units regulate the technical integrity of capability and undertake some operational level maintenance. This method produces a rough order-of-magnitude estimate, and is generally used early in the life cycle of a new asset/system when technical definition is immature and insufficient cost data is available. Coles also draws an insightful distinction between acquisition and sustainment work in relation to submarines. Defence subsequently increased the numbers of organisational units it considered to be Systems Program Offices from 54 to 78, with staff numbers ranging from three to 178.135. Value for Money 5. 2.14Five years later, the Rizzo Review into naval sustainment drew a similar conclusion: The need for the sustainment of assets is understood in Defence and DMO, but it is not given the same rigorous attention as asset acquisition. First Principles Review (April 2015) 2. SPO staff have limited experience, skills, and competencies needed to effectively establish, govern, and assure industry delivery of capability. There was/were: In all, Mortimer made 46 recommendations, with 42 accepted in full by the Government and three accepted in part. The Review found, in terms similar to those of Coles: In fact, the general comment is that sustainment is the poor cousin to acquisition.28 In June2017 Defence advised the ANAO that it was attempting to address this perception through the current round of reforms, such as the new Capability Life Cycle and the December2016 release of Support Procurement Strategies. F&A (indirect) cost pools must be distributed to benefitted cost objectives on bases that will produce an equitable result in consideration of relative benefits derived., and set forth allowability and allocability principles for selected items of cost. LAND 121 PH 3B Project Office [Project OverlanderMedium Heavy Capability, Field Vehicles, Modules and Trailers], LAND 121 PH 4 Project Office [Protected Mobility Vehicles (Light)Hawkei], LAND 400 [Combat Reconnaissance Vehicles, Infantry Fighting Vehicles, Manoeuvre Support Vehicles, and an Integrated Training System. This chapter examines the First Principles Review to identify implications for Defences management of sustainment. 3.32The First Principles Review found no direct measures of productivity in the existing management information systems, though some cost and schedule information is included in MRS and SPMS. The first is a Defence internal review conducted in late 2015; the second comprises work done following the First Principles Review as part of the Systems Program Office reform and consolidation project. 3.6SPMS was introduced, first, for Navy (MayJuly2015) following work to develop its sustainment performance framework with a standard suite of performance indicators.37 The system was being implemented in Air Force and Army from late 2015 through 2016. Progress in implementing the quoted recommendation has not been explicitly tracked with the other recommendations such as 2.12 and 2.13 in regular reporting on progress of the First Principles Review. An alternative approach is to manage a total project budget that includes employee expenses. In May 2008, the Australian Government commissioned a review of Defence procurement, which included in its terms of reference a report on the progress of implementing reforms from the last such review the 2003 Kinnaird Review. Reform is expected to lead to greater outsourcing of functions currently performed in-house by Defences Systems Program Offices. The Government agreed to the recommendation. 24Navys Fleet Screening instructions state that the focus of Navys review has evolved beyond a financial emphasis in light of the Rizzo Review to include consideration of how Navy and Capability Acquisition and Sustainment Group are meeting their obligations for whole of life sustainment of Navy capability. [14] Wolfe was reinstated in April 2010 following a legal challenge against procedural aspects of her dismissal in the Federal Court of Australia. 0000001012 00000 n
2.12Navy, Army and Air Force policy requires six-monthly reviews of MSAs. 93See Defence Annual Report 201516, Web Table 8.11, available from
It's Okay We're Hunting Communists,
Frases Sobre Envejecer Feliz,
Articles C
