The Australian Commonwealth Department of Defence (DoD) wanted to establish its first long-term full scope total asset management contract for the ANZAC Frigates where, amongst other things, the Commonwealth’s ‘decider’ functions can be outsourced to industry providers. This was a negotiated process with incumbent providers, who were delivering under different forms of agreements, which added complexity to ensuring that the Commonwealth achieved a value for money proposition that was sustainable over time and unlock collaboration potentials in the fully formed enterprise.

PCI's role:

• Helping the Owner make fully informed choices about the procurement strategy and the scope and features of the eventual alliance model.

• Designing and facilitating the contract establishment process, including developing the alliance contract, facilitating commercial alignment and supporting the development of KPIs.

• Coaching the Governance and Leadership Board and working groups through the establishment process to develop the right behaviours and mindsets that ensures alliance success.

• Supporting in operationalising and mobilising the new alliance contract.

Outcomes:

The alliance was established on a sound footing with the incumbent industry partners embracing the alliance framework, ethos, and behaviours.  The Commonwealth was very satisfied with the eventual commercial outcome but more importantly, in seeing the early culture change that became evident even before the contract was executed.

In the client's words:

"I have no doubt that we are at the beginning on a very long journey and thanks to you, we have the fundamentals in place to make the journey a fruitful one for all Alliance Participants.  I’m encouraged by the early culture change and… pleased to say that there are already positive outcomes being realised for our new Alliance".

- Commodore Steve Tiffen Director General, Major Surface Ship Branch, ANZAC SPO