The House of Representatives Select Committee on Regional Inquiry into Regional Australia

Department of Defence Written Submission

November 2019

Executive Summary

1. The is strengthening Australia’s defence capabilities through the 2016 Defence White Paper and the Defence Integrated Investment Program (IIP) to meet the challenges of the more complex strategic environment Australia is likely to face in the years ahead. 2. The need for Defence to deliver the capability directed by Government and to ensure the safety and security of Defence personnel and the Australian public requires Defence to train in a range of locations. A number of these locations are located in regional Australia and contribute to the socio-economic fabric of these communities. For the purpose of this submission the term ‘regional’ is defined as any area outside of the main metropolitan areas of Sydney, , , Adelaide, and Canberra. 3. Defence has an integrated workforce, including permanent (ADF) members, Reservists, Australian Public Service (APS) employees, contractors and other service providers who work together to deliver Defence capability. The quality of the workforce is the foundation of Defence’s capability, effectiveness and reputation. As at 1 August 2019, the total number of Defence personnel in regional Australia was 32,954. The regional workforce equates to 32.4 per cent of the total 101,582 Defence personnel located in Australia. This presence has enabled Defence to develop significant partnerships with local communities, business and government. 4. Defence’s contribution to regional economies includes housing, capital works and employment outcomes, and also in more unique circumstances, military exercises in rural and regional Australia. Defence’s contributions to social, economic development, environmental protection, waste management and sustainability activities are also evidenced in relation to the delivery of military training in regional Australia, including pre-recruitment programs for Indigenous Australians. Community engagement and capacity building also occur in regional locations. 5. The location of Defence personnel, bases and facilities is driven by strategic priorities underpinned by the 2016 Defence White Paper, the Defence IIP and the 2016-36 Defence Estate Strategy. The IIP was developed through a comprehensive Force Structure Review that assessed Defence’s capability needs and priorities to determine Defence’s future presence, comprising: location, equipment, information and communications technology, infrastructure and workforce requirements. 6. The disposition of Defence establishments is also guided by the estate design and use principles outlined in the 2016-36 Defence Estate Strategy. This submission illustrates key considerations and characteristics utilised in planning the disposition of the Defence workforce including: capability requirements, site attributes, consolidation of bases, fostering personnel retention, enabling access to industry and maintaining urban and regional disposition. Defence is currently reviewing its force structure and the forward Defence establishment profile with a view to providing an update to government in 2020. 7. Defence facilities in regional areas have positive flow on effects to local economies through increased business to local suppliers and service providers. This submission also demonstrates the major levers being used to maximise Australian industry involvement for acquiring and sustaining military capability, the importance of robust partnerships between Defence and industry in balancing skilled workforce requirements and location, utilising local workforces where possible for base services contracts, and the provision of equitable access to government contracts. 8. The 2019 Defence Policy for Industry Participation has been developed to provide greater consistency, unity and opportunity for Australian Industry involvement in Defence procurement. The policy formalises consideration of Australian industry at the national and local level for material and non-materiel procurements. As an example, Defence has implemented Local Industry Capability Plan pilots on six major capability projects with a focus on maximising opportunities for businesses within reasonable geographic proximity to the location of the work. 9. With the introduction of a Defence Innovation Hub in 2016, work is underway to remove barriers to innovation, including creating new contracting and intellectual property policies that may open up further opportunities for regional and rural participation. Close collaboration between Defence and industry is critical to meet future challenges in delivering the Government’s program of works. 10. Defence’s regional presence, along with strong industry partnerships, will be instrumental in delivering and supporting future Defence capability. 11. While Defence’s contribution to regional development is driven by capability and strategic requirements, this submission addresses the Defence presence in regional Australia within the context of the Committee’s terms of reference applicable to Defence, specifically: a. Examining the effectiveness of existing regional service delivery and development programs; b. Examining the contribution and role of regional Australia to our national identity, economy and environment; c. Promoting the development of regional centres, towns and districts including promoting master planning of regional communities; e. Examining the key drivers for unlocking decentralisation opportunities for both the private and public sectors; and f. Promoting the competitive advantages of regional locations for businesses. Introduction 12. Defence is the largest Commonwealth landholder and one of the largest overall landholders in Australia. With a gross replacement value of approximately $68 billion, the Defence estate consists of around 700 owned and leased properties (at Annex A), which includes bases and training areas. 13. Defence provides economic, social and environmental support to regional communities, including through employment, industry, community involvement, childcare facilities, housing, training activities, cooperation on heritage issues and the economic contribution of Defence members and their families located in those communities. 14. The location of Defence bases and facilities is determined in accordance with Australia’s wider defence strategy as set out in successive Defence White Papers. To ensure Defence has the necessary force structure and force posture to defend and advance Australian strategic defence interests, the 2016 White Paper outlines three strategic objectives to guide the development of the future force. The strategic defence objectives are to: a. Deter, deny and defeat attacks on or threats to Australia and its national interests and northern approaches. b. Make effective military contributions to support the security of maritime South East Asia and support the governments of , Timor-Leste and of Pacific Island Countries to build and strengthen their security. c. Contribute military capabilities to coalition operations that support Australia’s interests in a rules-based global order. 15. The means by which Australia’s strategic defence objectives are achieved vary according to the circumstances of each situation, but encompass reliable access to essential military bases, wharves, ports, airbases, training ranges and fuel and explosive ordnance infrastructure. 16. In determining the location of bases and facilities, Defence must take into account a range of factors, including geostrategic considerations, capability, mobilisation, logistics and maintenance requirements, the need to access an appropriately skilled workforce, support to families such as schools, suitable housing and spouse employment opportunities, and the need to enable access to industry. The location of bases and facilities contributes to shaping how successful Defence is in fulfilling these requirements and, in turn, contributes towards the achievement of the strategic defence objectives. 17. Defence has an integrated workforce, whereby decisions relating to ADF members and APS employees and its external support workforce are interlinked with capability requirements. The Defence workforce is currently located in metropolitan, and rural and regional areas of Australia, as evidenced in Table 1. 18. Defence’s presence in metropolitan areas assists with recruitment and retention and provides greater access to a skilled workforce, including a range of specialist skills and contractors that can be difficult to find in sufficient numbers in regional areas. 19. The Defence functions that are located in Canberra enable effective and efficient support to government business and military operations. Defence works closely with a number of Canberra-based government agencies, including on intelligence analysis and sharing, border protection and Defence international engagement. In policy terms, Defence also benefits from co-location with key government agencies on a wide range of issues.

Table 1: Distribution of Defence public servants and ADF members and reservists as at 1 August 2019 Location ADF APS Total % Canberra 9,190 6,708 15,898 15.7% Sydney 15,431 1,468 16,899 16.6% Melbourne 4,482 2,712 7,194 7.1% Brisbane 13,679 700 14,379 14.2% Adelaide 6,011 1,978 7,989 7.9% Perth 5,821 448 6,269 6.2% Regional and Rural1 30,222 2,732 32,954 32.4% TOTAL 84,836 16,746 101,582 100%

1 For the purpose of this submission the term ‘regional’ is defined as any area outside of the main

metropolitan areas of Sydney, Melbourne, Brisbane, Adelaide, Perth and Canberra.

20. Defence also recognises the strategic importance of having a presence within rural and regional communities. Defence’s presence in regional areas has facilitated partnerships with local communities, business and state, territory and local governments that are integral to supporting Defence capability. 21. The 2019 Defence Policy for Industry Participation recognises the vital contribution to Defence capability provided by Australian defence industry and science and technology research organisations. Australian defence industry provides a range of critical direct and support services and has been recognised as a fundamental input to Defence capability. 22. Companies contracted to Defence under its suite of base services contracts across Australia engage a range of subcontractors. In regional and remote areas they generally draw their workforce from local employment areas and access local businesses.

Response to Terms of Reference a) Examining the effectiveness of Existing Regional Service Delivery and Development Programs

23. Defence receives benefit from regional services and development programs but also delivers services and programs which are aimed at ensuring Defence, Defence personnel and their families are effectively integrated into regional communities. Examples of the services and programs delivered by Defence and their effectiveness are set out as follows. Defence Assistance to the Civil Community 24. Defence Assistance to the Civil Community (DACC) is the mechanism by which Defence personnel provide both non-emergency and emergency support to the civilian community. 25. Emergency DACC provides support to the civilian community where immediate actions is necessary to save human life or alleviate suffering, prevent widespread loss or damage to property, prevent extensive loss of animal life, prevent environmental damage, and when state or territory emergency response resources are inadequate. 26. Where the scale of the emergency or disaster exceeds or exhausts the response capacity and capabilities of the state or territory, or where resources cannot be mobilised in time, Australian Government assistance may be sought through Emergency Management Australia, including from the ADF. 27. Under DACC arrangements Defence can also grant access to Defence training areas for non-Defence use. Access has been granted previously to Australian Government organisations, including police forces. Defence Force Recruiting (DFR) 28. The DFR regional footprint includes a number of Defence Force Recruitment Centres in the following regional locations: a. Newcastle, Wollongong and (NSW); and b. , Robina (Gold Coast), Maroochydore, Toowoomba and (QLD); 29. These recruitment centres are in addition to the Defence Force Recruitment Centres (DFRC) established in capital cities. 30. DFR conducts regional tours to various locations throughout the year. Where possible, DFR staff stay at regional Defence facilities (i.e. Reserve depots) and conduct activities at these locations. If Defence facilities are unavailable, DFR staff conduct the activities at an appropriate local facility (school hall, town hall etc.). 31. The purpose of DFR regional tours is to engage and expose prime target audiences and influencers of these groups to the opportunities available in the ADF in order to generate direct to pipeline applications, to fill recruiting targets and provide capability to the services. DFRCs identify key areas to regularly tour in order to attract the right candidate at the right time. Tours are typically focused around accessibility, population, volume of high schools as well as Indigenous population. 32. Careers Promotions and Specialist Recruitment Teams conduct targeted recruitment events across their areas of operation, with both a broad and specific focus dependent on the DFRC’s enquiry requirements. Teams will deliver relevant Defence Careers presentations to educational facilities (high schools, universities and TAFEs), hold regular information sessions in line with the national attraction calendar and local needs, conduct base tours, attend careers expos and industry events as well as frequent networking opportunities and build influencer networks in regional locations to extend DFRC reach outside of centre location. Bespoke events along with business as usual assessment day and fitness activities will be conducted for the attraction and mentoring of diversity candidates. 33. These methods are focused on DFR’s prime target audiences which include: a. High school student ages in Years 10, 11 and 12; b. Female and Indigenous youths ages 18-25 years old; c. University students studying STEM and health degrees; and, d. Skilled mature workers looking for a career change or supplementary employment. 34. The Regional Events Plans intend to create a pipeline with the sufficient volume of candidates with the correct preferences to fulfil DFR targets, and meet minimum target achievement requirements. ADF Recruit Training 35. Navy, and Air Force recruit training activities are primary conducted in regional Australia and contribute significantly to the economies of the regions in which they are based. 36. HMAS Cerberus (VIC) is the ’s principal and largest training establishment. HMAS Cerberus’s primary capability output is the training of initial entry sailors, specialist Navy officers and sailors and tri-Service elements. In addition to the Recruit School, Cerberus undertakes the following specialist training functions in support of ADF capability: a. Navy Marine and Weapons Electrical Engineering Officer and Marine and Electronics Technician Training; b. Tri-Service Dental Training; c. Navy Gunnery, Seamanship, Ship Survivability and Survival at Sea Training; d. Tri-Service Catering Training; Navy Maritime Logistics Training; e. Tri-Service Physical Instructor Training; and f. Navy Maritime Communications and Information Systems Training. 37. HMAS Creswell (NSW) provides initial entry officer training and leadership training. Cadets from the Australian Defence Force Academy in Canberra also undergo periods of single Service training at Creswell. 38. Currently, the Army’s entire recruit training for both full time and part time enlisted personnel occurs at the Army’s Recruit Training centre at Kapooka, located in (NSW.) After Kapooka, most full time soldiers undertake their initial employment training in other regional centres such as Singleton (NSW), Puckapunyal (VIC) or Albury Wodonga (NSW/VIC.) 39. The majority of Air Force recruit and initial employment training is conducted at bases or in regional areas. These include RAAF Base Wagga (NSW), RAAF Base East Sale (VIC), Tamworth (NSW) and RAAF Base Pearce (WA.) 40. Other recruit training in the form of exercises and deployments is conducted at numerous times and at different regional locations. These vary in size but each has a commensurate economic and social benefit to the local community. ADF Reserves 41. ADF Reserve personnel are widely distributed across the country. 42. Navy and Air Force Reserves are generally integrated into their respective full time service units and leverage off the facilities and support services associated with the major bases. As a result the contribution of the reserve elements of Navy and Air Force in a regional context is included in the contribution of the full time component. 43. Approximately two thirds of Army Reserve depots are located outside metropolitan centres in over 100 locations throughout rural and regional Australia. 44. Approximately 3,000 Army Reserve personnel and 350 permanent personnel are posted in regional localities. Approximately 30 per cent of Army Reserve personnel are posted in regional and rural locations. Approximately 35 per cent of permanent personnel posted to Army Reserve units are posted to rural and regional locations. 45. Army Reserve units usually conduct training locally, in their respective field training areas and weapons ranges. They also participate in major exercises with permanent units in locations including Shoalwater Bay Training Area (QLD), Townsville Field Training Area (QLD) and more recently Cultana Training Area (SA.) 46. Additional detail on the Army Reserve presence is provided in Annex B. Defence Community Organisation Program 47. Defence is committed to building the capacity of local urban and regional communities to provide support services to ADF member families. Defence, through the Defence Community Organisation (DCO) Program, delivers community capacity building outcomes: a. building strategic partnerships with service delivery organisations at local, state and national levels; b. working in collaboration with local agencies to develop initiatives to address gaps and limitations in community resources that ADF member families may require; and c. providing personalised advice and ongoing communication to ADF member families on available community resources and actively linking families to the resources they require. 48. The DCO maintains area offices in all capital cities and the following regional locations: a. Townsville, Toowoomba, Amberley and Cairns (QLD); b. Williamtown, Wagga Wagga, Nowra, Singleton and Albury (NSW); c. East Sale, Cerberus, Puckapunyal, Albury/Wodonga (VIC); d. Katherine (NT); and e. Rockingham (WA). 49. The DCO fosters community linkages through programs such as: a. ADF Transition program, which prepare transitioning ADF members and their families to assume responsibility for their own personal security aspects inclusive of health and wellbeing, social connectivity and engagement, employment or education, accommodation and finances. This includes career planning, resume preparation and job search skills, training and skills recognition, referral to other government and community services as well as specialised programs to assist those with complex circumstances or within higher risk. The ADF Transition program is delivered through 13 ADF Transition Centres nationally;

b. The Defence Childcare Program provides 16 childcare centres and three out-of- school hours childcare centres nationally. Additionally, to minimise the impact of mobility on Defence children’s education, the DCO funds 229 schools to engage Defence School Transition Aides and Mentors; and

c. Funding 25 community centres nationally through grants and other financial support.

Defence Engagement with Indigenous communities 50. Defence’s fourth Reconciliation Action Plan (D-RAP) was launched in August 2019 and reaffirms Defence’s ongoing commitment to fostering genuine and meaningful relationships with Indigenous Peoples, communities and businesses. The D-RAP focuses on enhancing Defence’s cultural awareness and building a diverse work force by improving attraction and retention opportunities for Indigenous Australians. 51. Defence also supports regional and Indigenous communities in Northern Australia through education and health programs, and is a leading employer of Indigenous people, particularly young people in Northern Australia through: a. the Regional Force Surveillance Units (RFSU) in the Pilbara, Kimberley, Arnhem, Cape York and Torres Strait regions, which is a significant proportion of NORFORCE that is responsible for surveillance of the largest area of any military unit in the world; b. the Air Force’s community engagement program, Exercise Kummundoo, which delivers health Services to Aboriginal and Torres Strait Islander Communities, under a Memorandum of Understanding between the Air Force and the National Aboriginal Community Controlled Health Organisation (NACCHO); c. the Army Aboriginal Community Assistance Program, which continues to improve environmental health, welfare and housing across Indigenous Communities; and d. Navy, Army and Air Force cadet programs, which provide youth opportunities to Northern Australians. In recent years, Defence has developed additional cadet units in remote communities. 52. Defence has extensive engagement with Indigenous communities in remote, urban and regional Australia. The implementation of Defence’s fourth Reconciliation Action Plan will focus on improving Indigenous representation in our workforce and supporting Indigenous businesses. As part of this plan, Defence has established programs and initiatives that offer pathways for Indigenous Australians seeking a career in Defence as an ADF member or APS employee, including: a. Defence Indigenous Development Programs, which are aimed at preparing young Indigenous Australians for entry into the ADF. Based in Cairns (Qld), Wagga Wagga (NSW) and Batchelor (NT), the recruitment for these courses is primarily Indigenous Australians from remote and regional Australia. b. Indigenous pre-recruitment programs, which are conducted across Australia including at Wagga Wagga (NSW), with participants mainly from regional locations. c. Indigenous Traineeship programs, which allow participants to combine on the job experience with a study component at the Certificate IV or Diploma level over a 12 – 15 Month period; d. Specific Indigenous Affirmative Measures recruitment processes that focus on higher level classifications above entry level positions. 53. Additionally, Defence is a leader in providing procurement opportunities for Indigenous businesses to support the outcomes of the Commonwealth Indigenous Procurement Policy. Defence won the Supply Nation Government Member Supplier of the Year Award in 2019. 54. Defence places importance on growing a self-sustaining Indigenous business sector within Defence and its industry partners. To date Defence has awarded over $1.1 billion in contracts to Indigenous businesses Australia-wide and will continue to support this growth. Engaging People with Disability—Defence Administrative Assistance Program 55. Defence has built strong partnerships with Australian disability enterprises and disability employment services providers to support Defence disability employment programs. Defence offers a range of entry level employment programs for people with intellectual disability, aimed at enhancing Defence capability and directly contributing to Defence’s cultural reform efforts. 56. The Defence Administrative Assistance Program supports regional communities through partnerships with local Australian disability enterprises to provide people with intellectual disability the opportunity to engage in meaningful work. The Defence Administrative Assistance Program operates at the following sites: RAAF Base Amberley, Gallipoli Barracks (Enoggera) and Townsville (Qld); HMAS Stirling (WA); (NSW); Victoria Barracks, Melbourne (Vic); RAAF Base Edinburgh (SA); and Robertson Barracks, Darwin, (NT.) Defence currently engages 38 participants across 4 regional locations (Eight x Amberley, 17 x Townsville, Six x Darwin and Seven x HMAS Stirling) through this program. 57. The Inclusive Employment Program (IEP) increases the participation of people with disability in the ongoing Defence workforce. This program creates a pathway for people with intellectual disability to begin their work journey and build a career in Defence. The IEP currently employs three employees in regional locations (Three x Nowra). Strategic International Partnerships 58. Defence’s increase in international engagement with partners and allies, including through increased hosting and participating in exercises, contributes to the growth and sustainment of regional areas and communities. The ADF is hosting and participating in more exercises both in Australia and overseas with international partners. Two bilateral initiatives of particular relevance to this inquiry include the United States Force Posture Initiatives and the Australia- Military Training Initiative. 59. The US Force Posture Initiatives, agreed by the Australian and United States governments in 2011 will bring significant economic benefits to regional Australia. A 1 Defence commissioned study found a significant and ongoing contribution by Defence and the US Marines to the economy in the region. Defence and the US Force Posture Initiatives contributed over $700 million to the Northern Territory economy in financial year 2016. In 2016 Defence supported around 6,000 jobs, of which the US Force Posture Initiative supported 45 jobs. 60. With a MRF-D rotation size of between 1,600 to 2,500 US Marines, activity relating to the US Force Posture Initiative could support up to 80 personnel employed directly and indirectly and contribute up to $14m to the Northern Territory economy. 61. It is also estimated that up to a further 1,062 personnel will be employed directly and indirectly by capital works being delivered through the US Force Posture Initiative in 2020, with an estimated contribution of up to $250m for the Northern Territory economy. The design and construction projects associated with US Force Posture Initiatives will contribute

1 Source: KPMG March 2019 United States Force Posture Initiatives – Socio-Economic Impact Study to jobs and growth in northern Australia over the next 10 years. The maintenance of these facilities will also increase demand for local suppliers moving forward. 62. Under the Australia-Singapore Comprehensive Strategic Partnership, the Singapore Government is investing AUD$2.25 billion to purchase land and develop advanced military training areas in Central and North which will benefit the ADF, and Singapore Armed Forces. The Initiative will enhance Australia’s Defence relationship with Singapore and provide local economic opportunities. As part of the Initiative, a new training area will be established near Greenvale (North Queensland), and the existing Shoalwater Bay Training Area (Central Queensland) will be expanded. At maturity, the Initiative will see up to 14,000 Singapore Armed Forces personnel undertake unilateral training for up to 18 weeks annually. Both training areas will remain the property of the Commonwealth. b) Examining the contribution and role of regional Australia to our National identity, economy and environment

Defence economic contribution to regional areas 3 63. Defence’s direct 2 and indirect impact on regional economies varies depending on the size of the base or training area, and the scale and intensity of the regional economy in which each base is located. Examples of Defence expenditure in regional areas are shown at Annex C. 64. Defence contributes to regional economies and their social fabric. Defence members and their families integrate into the communities in which they live and make valued contributions to their communities. As well as direct investment in infrastructure and employment of the Defence workforce and contractors, the Defence presence indirectly benefits communities through flow-on employment and investment. Defence also takes a proactive approach to community and stakeholder engagement through state and territory consultative forums. This is evident in the following example of the economic contribution of Defence activities in Regional New South Wales (NSW). 65. Defence has always been a major contributor to NSW, where Defence had a direct spend of over $4.8 billion in 2017-18 financial year and currently employs over 26,600 personnel. 66. Defence provides a significant positive economic impact to regional areas within NSW. For example, capital expenditure at HMAS Albatross and HMAS Creswell has provided significant benefits to the local economy of the Nowra region, as well as flow on effects to the wider regional and state economies. Employment, demand for local goods and services and spending of wages by Defence employees and their families stimulates economic activity and growth of which industries such as construction, retail trade, and Rental, hiring and real estate services are among the largest beneficiaries. 4

2 Direct expenditure contributions arise from the number of people directly employed on the base and all economic activity that has a direct relationship with the base 3 Indirect expenditure contributions arise out of the input/output expenditure linkages between the base and other industrial and commercial activities (such as retail trade, electrical supply and maintenance of equipment). 4 GHD Economic Study: Wider Economic Benefits - Defence Bases HMAS Albatross & HMAS Creswell 4 October 2019 67. A recent study of the economic contribution of these bases found that Defence’s direct and indirect contribution to employment is estimated to have contributed 3,072 jobs and generated 306 new businesses in Financial Year (FY) 2017-18. The study also estimates that these bases will contribute $1.561 billion to the economy over the four years up to FY 2021-22. Defence construction activity 68. Defence Major Capital Facilities projects produce an annual turnover of approximately $1.8 billion per annum, which is delivered from an approximate 139 active major capital infrastructure projects with a portfolio value of over $20 billion. 69. Within this portfolio, the Local Industry and Capability Plan (LICP) initiative was developed and implemented to maximise local businesses opportunities to compete and win work on these projects. 70. To date, 4,793 sub-contractor packages are proposed to be let to industry across Australia. Of that, 4,112 have been let, with 2,637 of those let being awarded to local industry around the project locations. This has an approximate value of $2.9 billion to date. 71. In addition to the LICP, Defence major capital facilities projects also maximise and encourage Indigenous owned companies to compete and win work within the portfolio. 72. To date, Defence has procured 29 of the 113 prime contracts for construction under the IPP exemption, which represents 21 per cent use of the IPP in prime contracts. Defence environmental contribution 73. Defence actively seeks to minimise and mitigate the impacts of its training activities on the environment, including erosion, the effects of heavy vehicles, refuelling activities, the impact of high explosives, and bushfire. 74. Factors that influence the environmental risks of activities include concentration, repetition, duration, location, changed weather conditions, the nature of the activity, and cumulative impacts from previous uses. 75. Environmental assessment is an integral part of the planning, development and delivery process for all Defence actions, including ADF range use and training. Defence has processes and procedures which ensure that all aspects of the environment (which includes people and communities) are considered. Defence acknowledges that there are impacts associated with Defence activities and recognises that sound environmental management supports military training outcomes. 76. The Environment Protection and Biodiversity Conservation Act 1999 (EBPC Act) obliges Defence to not have significant impacts on the environment. Defence has a well- defined framework to assess and manage environmental impacts associated with ADF training and facilities through both internal and external processes. Contracted service providers and defence personnel are required to adhere to the provisions of the EPBC Act. New facilities are typically required to be assessed for environmental impacts. Some of these processes and procedures are described below. Military exercise planning 77. Activity planners and commanders, in consultation with Defence environmental staff, have responsibility for ensuring that the environmental risks associated with their activities will be appropriately considered and addressed in the planning phase and that any remediation is undertaken if environmental impacts do occur. Training Area standing orders are the primary source of information to users as to how environmental management principles are to be applied to any particular training area. The Training Area operational authority is to establish processes to ensure that all training activity approvals include an environmental impact assessment and are authorised under standing orders or an environmental clearance certificate. Environmental impacts associated with training 78. Defence acknowledges that its activities, by their nature, can cause some concern to the community, including people near Defence bases and training areas. This includes the effects of dust, noise, and traffic. Defence actively seeks to manage these impacts and consult with communities on a regular basis. 79. Vehicles, particularly those used off road, have the potential to cause damage to vegetation and soils which may lead to erosion, weed invasion and potentially non- compliance with legislation (e.g. through impacts to threatened species habitat and sites). The sustainment of vehicles presents environmental risks associated with petrol, oil and lubricants and other hazardous material, particularly during refuelling and maintenance. There is also the potential for damage to roads. 80. Impacts from small arms relate primarily to noise and heavy metal contamination (lead and copper) where fire is concentrated, for example in the earth mounds at the end of a small arms range. Impacts from high explosive weapons and demolitions training primarily relate to noise, unexploded ordnance and bushfire. Impacts from ordnance (e.g. aircraft bombs, mortars) generally do not occur across a whole training area because ordnance is aimed at specific target areas. Target areas are sited to ensure they are as small as practicable and avoid sensitive environmental areas. Target areas are located within much larger designated impact areas. For example, Bradshaw Field Training Area in the Northern Territory covers approximately 870,000 ha. Within this training area there are 14 target areas totalling 610 ha within three larger impact areas totalling 277,500 ha. Environmental impact assessment of Defence activities 81. Defence’s environmental impact assessment program reviews and manages the environmental effects of major exercises, new capabilities, infrastructure projects and a range of day-to-day estate management activities. Depending on the level of environmental risk involved, environmental impact assessment can range in complexity from an internal environmental clearance certificate, to a referral under the EPBC Act. 82. An example includes the Talisman Sabre series of exercises. This is a combined major exercise held biennially in partnership with the United States Armed Forces and other invited nations. Talisman Sabre 2005 was the first of these exercises and was referred for assessment to the Minister for the Environment under the EPBC Act. Subsequent exercises have been assessed internally using a public environment report process. 83. Key environmental assessment and protection measures put in place for exercises such as the Talisman Sabre series include: a. Public consultation based on an independently prepared public environment report about the exercise; b. A comprehensive environmental management plan for the conduct of the exercise and environmental awareness materials for participants; c. An Environmental Management Group, active during the conduct of the exercise, to provide exercise commanders with expert environmental advice, undertake monitoring and respond to any environmental incidents; and d. Consultation with the affected stakeholders including State and Local Government Agencies, Regulators and community stakeholder groups such as the Great Barrier Reef Marine Park Authority, the Civil Aviation Safety Authority, civilian police, local indigenous groups and other key stakeholders. 84. The aim of the engagement is to be extensive, informative, timely, open and collaborative. Stakeholder feedback indicates that Defence is achieving these aims. Environmental stewardship of Defence facilities and training areas 85. Many Defence facilities and training areas hold natural and cultural resources of value to the Australian community. Defence takes its environmental stewardship obligations very seriously. As a custodian of the environment, Defence has invested significant resources over many years, building environmental management capability and capacity to support Defence mission and meet environmental obligations. 86. Defence land often contains significant native vegetation, threatened species and cultural heritage sites. This is a result of their size, restricted access, and the fact that, where possible, Defence properties are actively managed to protect environmental values. This feature of Defence properties is most apparent in urban fringes where the pressures on natural systems from clearing and encroachment of settlement are often greatest. 87. The landscape, for example, around Greenbank Training Area south-west of Brisbane is an important large natural area within the Flinders-Karawatha Corridor. This corridor would not exist as a continuous natural landscape without the contribution of the Defence Training Area, and is recognised by the Queensland Department of Environment and Heritage Protection as “one of ’s most important regional biodiversity corridors, providing habitat and movement opportunities for a range of species that are regionally and locally significant… it supports scenic amenity, outdoor recreation and landscape heritage values of regional significance.” 5 88. Training areas also perform similar functions within regional landscapes. In assessing Box Ironbark woodlands in Victoria, the Environment Conservation Council (2001) concluded that “The Puckapunyal and Graytown ranges contain a number of relatively high nature conservation values, including examples of several highly depleted Ecological Vegetative Classes, and habitat for certain threatened species.” And that “by virtue of its Defence management… current management effectively provides a relatively high level of ecosystem protection in most areas. Continued use of the military range for training should not prevent, or be constrained by, management of key areas for nature conservation. The range’s current condition suggests that military training and conservation can satisfactorily co-exist.”6

5 Source: Queensland Department of Environment and Heritage Protection (2014) Flinders Karawatha Corridor Management Strategy 2014-2019: A Five Year Plan 6 Source: Environment Conservation Council (2001) Box-Ironbark Forests and Woodlands Investigation Final Report. Land management on Defence establishments and training areas 89. Defence land management activities are primarily facilitated through contracted arrangements and have a focus on ensuring the training areas are fit for use for military training. Defence actively manages erosion, pests (such as wild dogs and other feral animals), weeds and diseases to minimise impact on neighbours and their livelihoods. 90. Defence undertakes its environment protection, sustainability and land management activities with neighbouring state and local government and private land managers; rural and country fire authorities and water and sewerage authorities. For example: Commencing December 2016, Defence’s contractor combined efforts with Queensland Marine Parks and the Fitzroy Basin Association commencing December 2016 to implement an animal management program at Shoalwater Bay Training Area (QLD). The program targeted feral animals such as pigs and involved elements targeted at core environmental values such as nesting locations of vulnerable shorebirds, and internationally significant Ramsar wetlands. 91. A further example is containment of root rot caused by Phytophthora cinnamomi. This can have a devastating effect on native vegetation and threatened species habitat, and equally on forestry operations. It is a particularly prevalent in south west and Tasmania. Specific Phytophthora management plans are therefore in place for Bindoon Training Area in Western Australia and Stony Head Training Area in Tasmania. These plans map affected areas, prescribe hygiene protocols, including wash down facilities where appropriate, and detail monitoring programs to ensure outbreaks are contained and do not cause harm to sensitive natural and economic values. 92. Environmental plans inform Defence’s site based land management practises. Depending on the areas involved these plans detail the management requirements for weeds, bushfire, feral/overabundant animals and heritage protection. These plans and contracted land management services support proactive, adaptive and responsive land management across all training areas and bases. Contamination management and pollution prevention 93. As a result of historical military and industrial use, Defence manages a legacy of contamination across the estate. Defence has a systematic, risk based approach to identify, manage and remediate its contaminated sites to reduce environmental and human health risks. Defence has waste minimisation and pollution prevention policies and programs in place, aimed at minimising future contamination issues. 94. The Defence environmental remediation program aims to reduce risks to people and the environment associated with contamination wherever it occurs on the Defence estate. This risk based approach sees high and very high risk sites prioritised for further assessment and subsequent remediation if required. There are currently about 2,300 contaminated sites on approximately 180 Defence properties. Pollution prevention considerations are integrated into all infrastructure and military equipment acquisitions. 95. Defence is continuing to work with Commonwealth, local and State authorities, industry experts and the community in delivering a national program to investigate and manage the impacts resulting from the use of legacy firefighting foams containing per- and poly-fluoroalkyl substances (PFAS) on and around its bases.

96. Due to the chemical structure of PFAS and the emerging nature of these substances as contamination, there are limited proven remediation technologies available, particularly for soil. However, long term management technologies are emerging with ongoing research and development. Defence continues to monitor domestic and international research and development activities to remain up-to-date on potential PFAS management and remediation technologies. 97. Through its industry partners Defence has completed a number of trials relating to soil, ground and surface water using different technologies. Defence is also liaising with CSIRO regarding CSIRO capability in the area of PFAS remediation and management. Defence will continue to implement further management actions throughout 2019, including source area removal, provision of alternate water where appropriate, and mitigating the migration of PFAS.

Management of bushfire risk and relationship with local fire authorities 98. Defence implements extensive annual fuel reduction measures and other bushfire risk management initiatives across fire prone areas of the estate. 99. All Defence sites with significant areas of bushfire prone vegetation are required to have bushfire management plans. These plans detail the nature of the risk on site, mitigation measures and works required to manage bushfire risks to the site and surrounding areas as well as site awareness materials. Plans also aim to mitigate the risks posed to the community and environment by conduct of Defence activities that potentially start bushfires. 100. Defence’s bushfire management planning has been reviewed significantly since the State Mine Fire that started on Defence’s Marrangaroo Training Area (NSW.) 101. Defence has commenced a program to integrate its bushfire management activities more closely with States and Territories. Since 2016 Defence has signed Memorandums of Understanding with the local fire authorities in the States of NSW, TAS, QLD and VIC. 102. Training area staff maintain good relationships with local fire authorities. Periodic communication mainly involves training area staff being members of local bushfire committees. Consultation also occurs prior to the fire season or a planned management burn and when fires occur on a training area. Other engagement occurs during the fire season for advice and recommendations on local conditions and mitigation measures. Engagement also includes provision of regular access to fire authorities to assist with site familiarisation. Protecting heritage on the Defence Estate 103. There are over 130 Defence places listed on a range of heritage lists and registers. These places are typically listed because they possess historic, Indigenous or natural values. They remain important to communities, including Traditional Owners and Defence acknowledges its responsibility to ensure their protection. 104. Defence prepares heritage management plans for all places with heritage values. A heritage management plan details the values of a heritage place, the conservation policies to be followed and a program of any required conservation works. In preparing heritage management plans, Defence may consult with local community, interest groups and Traditional Owners about their values and how they should be protected. 105. Defence has recently completed heritage management plans for Defence establishments in a number of locations including Port Wakefield, RAAF Base Williamtown and Yampi Sound. These plans were prepared in consultation with local stakeholders. Traditional Owner interests in the Defence estate 106. Defence acknowledges and recognises the importance of many Defence properties to Indigenous Traditional Owners. Heritage management plans identify sites of cultural importance and set policies for on-going protection. Subject to operational and safety constraints traditional owners can have some limited access to training areas for cultural purposes. 107. Defence recognises that Indigenous people are the primary source of information on the value of their heritage and how this is best conserved. Defence engages and consults with relevant Traditional Owners for surveys, cultural heritage assessments and management strategies. 108. Defence engages with Traditional Owners for impact assessment purposes. Defence is in the process of completing cultural heritage inspections of bushfire affected areas of Beecroft Weapons Range (NSW) to determine if any recorded sites including rock art in shelters have been impacted by fire damage. 109. Indigenous land use agreements (ILUA) are in place for certain properties. The historical and current links that Indigenous people have to the land are acknowledged in these agreements, such as the Shoalwater Bay Training Area Expansion ILUA. This ILUA establishes a partnership between Defence and the Darumbal Traditional Owners. The ILUA and heritage management plan for the Shoalwater Bay Training Area provide for ongoing management of the heritage values. c) Promoting the development of regional centres, cities, towns and districts including promoting master planning of regional communities

110. Defence sees itself as a member of the communities in which it operates. Defence is committed to working with Commonwealth/state/territory/local government and community organisations regarding its activities, recognising that Defence activity generates positive community impacts but can also cause land use conflicts in particular if not planned properly. Proactive engagement with State and Territory governments 111. Defence aims to avoid land use conflict issues strategically by working with state/territory and local planning authorities to prevent encroachment issues and Defence effects on its neighbours before they arise. Defence seeks to minimise the off-base aspects of its activities and works with the community along with authorities to ensure the long term operational viability of Defence’s training areas and range facilities. 112. To facilitate a strategic approach to engagement on estate planning, logistics, community and encroachment issues the Defence and state/territory consultative fora were established in 1999. These fora provide a mechanism for state/territory interests to be included in Defence’s strategic planning process and enable a proactive approach to identifying any major private sector infrastructure developments with implications and/or opportunities for Defence. 113. Nine consultative fora are held each year - one for each of the eight states and territories and one for the Department of Infrastructure and Regional Development, which administers the Ashmore and Cartier Islands, Christmas Island and Cocos (Keeling) Islands, the Coral Sea Islands, and the Jervis Bay Territory.

114. Defence also engages at a working level with relevant state and local government agencies to highlight the location and purpose of Defence training and encourage them to consider planning measures to limit impacts of urban development, including encroachment. Defence provides preliminary advice to private business interests on the potential impacts of their development proposals on Defence training areas and ranges. This advice is provided in response to specific development proposals/applications. Defence recommends that local authorities ensure potential land owners are aware that their land may be exposed to impacts associated with Defence activities. Communication with local government and community stakeholders 115. Local or regionally based Senior ADF Officers (SADFO) have primary responsibility for consultation and communication with local government and community organisations in relation to Defence matters. This includes initiatives and engagement with Indigenous communities, local charities, local councils and sporting associations. 116. Defence has established regional environmental advisory committees (EAC) at a number of training areas. EAC memberships differ between sites but generally consist of representatives from groups that have an interest in the environmental management of a training area. They provide an important forum for Defence to share with the community upcoming training activities and development and engage in cooperation with stakeholders on environmental management issues ranging from multi-tenure fire management cooperation, feral animal control, trialling of new management techniques, and results of latest monitoring. They also provide a forum to respond to any concerns raised by members. 117. The Shoalwater Bay EAC has been operating since 1996. The Shoalwater Bay EAC meets twice yearly in (QLD) and is chaired by Defence. The membership includes neighbouring landowners and people with fishing interests, and representatives from Great Barrier Reef Marine Park Authority, Queensland state and local government, Darumbal Traditional Owners, non-government conservation organisations, and university academics. 118. The EAC for the Cultana Training Area (SA) established in 2015 includes local councils, Traditional Owner groups, neighbours, state government agencies and the University of Adelaide. Management of legacy unexploded ordnance 119. Defence maintains a publicly accessible register of unexploded ordnance on non- Defence land. It also provides this information to state/territory/local authorities. Consultation with the community on major exercises 120. An integral component in Defence’s planning for major exercises is consultation with community and stakeholders on potential environmental aspects associated with exercises and the proposed mitigation measures. The level of community consultation varies depending on the location, scale and function of the activity. 121. Given the scale of major exercises Defence undertakes a comprehensive environmental assessment using a public environment report approach. This process allows for a high degree of transparency given the public exhibition and calls for comments on a draft report. This allows Defence to develop operating procedures that apply to Defence activities, to address local concerns and target specific issues.

122. Public consultation for large Defence exercise activities such as the TALISMAN SABRE and HAMEL series of exercises occurs through a range of community and stakeholder engagement activities including meetings, community and stakeholder information sessions, advertisements in local and state/territory newspapers, provision of information via fact sheets, a dedicated website, social media, a dedicated email address, a free-call number for enquiries, and library displays through the entire consultation period. Defence also actively engages with relevant Traditional Owners, including in the Shoalwater Bay and Stanage Bay areas (QLD) and around Cultana (SA). 123. Engagement ranges from providing awareness of the exercise, identifying businesses that could provide services and resources to the exercise, seeking approval to use property, in-depth briefings detailing such matters as economic, social and environmental aspects, workplace health and safety, traffic flow, contracting and procurement, community engagement, media, and opportunities to tender for work. 124. Briefings were also conducted prior to the conduct of individual exercise events that had potential to affect communities. Parties engaged included: Representatives of local and state governments, emergency services (local, regional and state level), local community associations and authorities, business groups (including the Small Business Commissioner), graziers, local Indigenous groups, schools, sporting clubs, and airports (Whyalla and Port Pirie). Consultation on use of non-Defence land and facilities 125. Community organisations are consulted when Defence requires access to non- Defence land or facilities, when moving weapons and/or major equipment, and when conducting major exercises that may impact on the community. Consultation also occurs to ensure that necessary support is available, including fresh rations, stationery, and vehicle servicing/refuelling. Consultation is conducted through face-to-face meetings, community forums, and using print and social media. 126. Defence training and exercises are required in some instances to conduct training after hours or outside of normal parameters (flying operations, use of blank firing near homes on close training areas, flying over cities). To enable community awareness, Defence sends out flyers near bases, or places ads in local newspapers. Minimising aircraft noise on local communities 127. Defence bases, air weapons ranges and low flying training areas play a significant role in the Defence strategy for Australia and are essential for maintaining Defence’s high training standards and military capability. 128. Defence acknowledges that the experience of aircraft noise is a concern for some in the community. Defence is committed to continuing to work with local communities to reduce noise impacts whilst balancing military operational and training requirements. 129. Defence reduces the effects of noise from military aircraft operations as much as possible. This is undertaken through the Fly Neighbourly Policy which provides guidelines for aircrew in the way in which military aircraft are flown in order to reduce aircraft noise impacts on local communities. This includes limiting the speed of aircraft over populated areas, avoiding the use of after burners when safe to do so, minimising flying over residential areas and other noise sensitive buildings such as hospitals and schools, climbing to altitude as quickly as possible when departing, and minimising flying late at night or early in the morning. 130. Defence has a strong commitment to community consultation and proactively engages with communities living near Air Force bases and air weapons ranges, particularly bases and ranges that support fast jet operations - i.e. RAAF Bases Darwin (NT), Williamtown (NSW), Amberley (QLD), Townsville (QLD), Salt Ash Air Weapons Range (NSW), and Evans Head Weapons Range (NSW.) 131. Defence also actively engages local residents groups, community engagement fora, community consultative fora, local action groups and local government and planning authorities. e) Examining the key drivers for unlocking decentralisation opportunities for both the private and public sectors

132. Implementation of the First Principles Review, Creating One Defence, required changes to be made to the accountabilities, structures, systems and processes to build and manage organisational capability. It also introduced the One Defence Business Model, which focuses Defence’s organisational capability on achieving Government-directed outcomes. A key feature of the business model is an enabling workforce that is integrated and customer- centric, particularly in regional locations. 133. Defence has an integrated workforce and is generally located by function and business, particularly for the enabling workforce, to support and deliver Defence capability. For the enabling workforce, Defence’s approach has been to rationalise support functions and co-locate staff through a nation-wide shared service delivery model, including for human resources and base support. This approach focuses on delivering efficient and consistent customer service to Defence personnel, while enabling co-location for effective staff management, engagement and wellbeing. 134. Within the context of the One Defence Business Model, key elements of Defence’s enabling capabilities and non-policy functions are already decentralised. This includes a range of policy, program/project management functions, service delivery, logistics, operational support, training systems, and regulatory and technical business entities. Some examples include: a. Australian Geospatial Organisation in Wollongong, NSW and Bendigo, VIC; b. Defence Personnel Administration Centre in Raymond Terrace; c. Defence Service Centre in Cooma, NSW; d. Integrated Travel Solutions in Townsville, QLD; e. Army Pay and Processing Centre in Simpson Barracks (Melbourne) and Puckapunyal, VIC; and f. Defence Service Centre in Anglesea Barracks, Hobart, TAS. 135. Defence has a significant number of bases in regional Australia. Many of these bases are large and contain some of the elements of a small town, including infrastructure, accommodation, education facilities, cafes, messes, recreation facilities, industrial complexes, research facilities, airfields, wharves and warehouses. They are as widespread as Wagga Wagga (NSW), Tindal (NT), Amberley (QLD), Woomera (SA), Puckapunyal (VIC), Hobart (TAS) and Learmonth (WA.) Defence personnel and contractors live and/or work on these bases, and contribute to the broader community. 136. Under the 2016 Defence White Paper, Defence is realigning its workforce to meet Australia’s strategic defence objectives and to support the new capabilities to be introduced. This is evidenced in the reform of the System Program Offices (SPOs), which have a regional presence, that specifically leverage Defence’s geographically-dispersed locations. 137. Defence delivers materiel support both in the acquisition of new capability and sustainment of existing capability through the Capability Acquisition and Sustainment Group (CASG). Created under the First Principles Review, CASG is organised into Divisions according to the operating environment for their systems. Within each Division a series of SPOs are responsible for acquisition projects affecting a weapon system, as well as the support and ultimate disposal of these assets. 138. Most SPOs are located alongside the ADF force elements they support and the industry partners that in turn support them. This generally requires the SPO to be located in, or to have a significant presence in, capital cities and regional centres outside Canberra. For example, Aerospace Systems Division’s Tactical Fighter SPO is located alongside the RAAF’s 81 Wing at RAAF Base Williamtown, 15 kms north-east from the city centre of Newcastle, while Air Combat & Electronic Attack SPO is located alongside RAAF’s 82 Wing at RAAF Base Amberley, 40kms south-west of Brisbane on the outskirts of Ipswich. 139. The role and location of Defence’s SPOs is the outcome of reforms that began in late 2000 and early 2001. Creation of the current SPOs entailed relocating civilian and military project management staff from Canberra to regional areas throughout Australia. 140. Through its workforce planning process, Defence continues to review the geographical disposition of its workforce, particularly in highly skilled areas, so that it is able to attract, recruit and retain sufficient people with the required skills. Decisions are driven by capability requirements. Estate design and use principles 141. The 2016-36 Defence Estate Strategy focuses on disposition and ensuring the estate enables a more capable, agile and potent future force and supports healthy living and working environments for Defence personnel. The Estate Design and Use Principles, at Annex D, are intended to optimise utilisation of the Defence estate by providing high level guidance on the design and use of the Defence estate throughout the asset’s life. 142. In designing the disposition of the estate, Defence takes into consideration capability requirements, site attributes, fostering personnel retention, enabling access to industry and maintaining urban and regional disposition. 143. Economic factors are also taken into account by Defence when considering the movement of Defence personnel, facilities and equipment. One key consideration is the economic cost of such a move, including construction costs associated with office space, and housing of personnel or assets, which can be higher in certain rural and regional communities. 144. Rural and regional considerations for relocation of ADF operational activities also encompasses cost of, and ability to, attract and retain skilled industry and labour, availability of and access to public and private infrastructure (including access to ports, wharves, road and rail networks), foreign investment and security issues, competition for land and facilities due to development and competing uses, and availability of supplies (such as fuels and explosive ordnance). While in some locations this can be prohibitive, development of this infrastructure can also be beneficial to regional economic development. 145. Parallel investment and development in mining, energy, agriculture, and tourism sectors, while presenting opportunities for greater Defence logistics engagement with a broadening national support base, may also bring increasing competition for access to skilled labour, fuel, logistic support routes and hubs, sea ports, roads, air and rail networks. Strong resource sector competition increases the cost of wages, accommodation, transport and equipment. The current impact on Defence resource sector competition is less than in the recent past. 146. Defence also takes into consideration the liveability of rural and regional locations, which can affect attraction and retention of Defence personnel. Liveability aspects vary widely across locations within Australia. Certain liveability factors are highly dependent on public and private infrastructure, including access to specialist and hospital services. f) Promoting the competitive advantages of regional location for businesses

147. As the largest procurer of goods and services in the Commonwealth Government, and with Defence’s strong regional footprint across a range of industry sectors and capabilities, Defence leverages the creation of public value to regional Australia through its procurement policy and operations. 148. This includes a greater focus on creating opportunities for Small to Medium Enterprises to supply materiel and non-materiel products and services to Defence, as well as through strategic programmes including the Naval Shipbuilding Enterprise. 149. This submission provides an overview of Defence activities and programmes in regional Australia that promote public value through procurement, including: a. Defence purchasing; b. AusTender; c. Defence’s Integrated Investment Plan and Annual Procurement Plan (APP); d. Defence Policy for Industry Participation; e. Implementation of Australian Industry Capability; f. Defence implementation of the Indigenous Procurement Policy; g. Defence Engagement with Regional Australian Industry Defence Base Service Contracts; h. Centre for Defence Industry Capability (CDIC); i. Defence Innovation Hub. j. Defence purchasing 150. Defence is the largest procurer of goods and services in the Commonwealth Government and is responsible for some of Australia’s most complex procurement activities. In 2018-19 Defence published a total of 23,985 new Contract Notices (CN) on AusTender valued at $34.7 billion. In 2018-19 Defence published 5,291 contract amendments on AusTender valued at $9.7 billion.

151. There is a range of Commonwealth legislation and policy that impacts on Defence procurement, including (but not limited to) the Public Governance, Performance and Accountability (PGPA) Act 2013, the PGPA Rules and the Commonwealth Procurement Rules (CPRs). There is also a range of mandatory Commonwealth procurement-connected policies based on social inclusion, Australian Industry Participation and the Building Code, as well as CPR requirements such as Whole of Government and Coordinated Procurement that promote procurement opportunities in Regional Australia. 152. Recent changes to the CPRs have broadened the assessment of value of money, and introduced a new CPR requirement for procurements above $4 million to consider and document the economic benefit of the procurement to the Australian economy as part of the value for money assessment. This lower economic benefit threshold will strengthen the consideration of public value for regional procurements and promote greater procurement opportunities in regional Australia. 153. The Defence Procurement Framework is continually improving as a result of whole of government changes and Defence procurement policy initiatives. Recent initiatives that will benefit regional Australia include operationalising the Defence Policy for Industry Participation and strengthening economic benefit to the Australian economy considerations in the procurement planning and tendering processes. 154. This submission contains further information on AusTender, and a number of key Commonwealth and Defence policies such as the Australian Industry Capability policy and Indigenous Procurement Policy that benefit regional Australia. It also contains information on where industry in regional Australian can seek assistance when engaging with Defence, such as the Centre for Defence Industry Capability (CDIC) and the Defence Innovation Hub. AusTender 155. For contractors and suppliers seeking to contract directly with Defence and other Commonwealth Agencies, AusTender is the Australian Government’s procurement system. It provides centralised publication of Australian Government business opportunities, agency procurement plans, multi-use lists and details of contracts awarded. This is a quick and free service, which provides the opportunity to identify the services or sector of interest. 156. Businesses interested in opportunities to supply goods and services to Defence should register on AusTender and arrange for an ‘AusTender Alert’ which automatically advises suppliers when a Defence tendering opportunity is advertised. Contract information can also be monitored on AusTender. Defence publishes Open Tender approaches to the market on AusTender. Information provided by AusTender includes: request documentation, submission requirements, industry briefing arrangements (if held), special conditions or mandatory requirements and tender closing dates. Subcontracting opportunities may also be available with prime contractors. 157. The Department of Finance has also introduced a new system based on AusTender called Dynamic Sourcing for Panels (DS4P), which enables government agencies to deliver a standard way to manage and find panels, select suppliers and run request for quote (RFQ) processes. DS4P has advantages for both government agencies (buyers) and suppliers, including: a. Buyers – identification of the right panels, search for and shortlist suppliers, access panel documents and templates, and run RFQ processes, cloning of regularly used searches and processes; b. Suppliers – greater visibility to buyers of supplier’s approved goods/ services, and more consistency across agency RFQ processes, use of standard templates.’ 158. Defence is currently working to implement DS4P for selected Defence panels, and for access to other government agency panels, which should provide greater visibility of local and regionally based suppliers who may meet Defence procurement requirements. 159. Through promoting greater participation of regional businesses on government panels and creating greater awareness of panels across Australia, Defence is supporting greater transparency and access to procurement opportunities for regional Australia. Defence’s Integrated Investment Plan (IIP) and Annual Procurement Plan (APP) 160. Defence’s IIP, published on the Defence intranet, details approximately $195 billion of investment in Defence capability across the decade to 2025-26, a significant proportion of which will be spent in Australia. The IIP provides Australian industry with greater certainty on the timing and sequencing of planned approvals to better inform industry planning and guide industry investment. 161. In addition to the IIP, Defence publishes business opportunities in its Annual Procurement Plan, on AusTender, thereby assisting industry to prepare for procurement activities. Industry briefings are regularly conducted as part of procurement activities to facilitate industry to understand the scope of Defence’s business requirements, proposed procurement and contracting strategies, and provide feedback on risks, commercial approaches and cost- related issues. Defence Policy for Industry Participation (DPIP) 162. As part of its ongoing commitment to supporting Australian businesses delivering Defence capability, the Australian Government released the Defence Policy for Industry Participation (DPIP) in March 2019. The core element of the DPIP is to apply a consistent, unified approach across Defence procurement valued at or above $4 million ($7.5 million for construction services). This approach requires tenderers (including prime contractors) to demonstrate appropriate formal consideration of Australian industry – locally and nationally – through a schedule or plan that forms part of their tender response. 163. The DPIP acknowledges that ‘local’ has different meanings in different metropolitan, regional and remote settings. Tenderers will propose what constitutes ‘local’ in the context of the specific procurement and their particular tendered solution. Defence expects tenderers to adopt a common sense approach based on reasonable geographic proximity to the location where work is to be performed. Importantly, if works, services or supplies are required to be delivered in a regional or remote area, ‘local’ industry will not include the nearest capital city. 164. The DPIP also specifically acknowledges Defence’s engagement with regional Australia. It notes that at 1 January 2019, the total number of Defence personnel in regional Australia was 31,852. The regional workforce equates to 31.8 per cent of the total 100,272 Defence personnel located in Australia. The DPIP highlights that Defence’s direct and indirect impact on local economies varies depending on the size of the base or training area, and the scale and intensity of the local economy. It notes that the economic contribution of a base includes both direct and indirect expenditure contributions. Development of Australian Industry Capability 165. The Australian Industry Capability (AIC) Program is a major lever for maximising Australian industry involvement for Materiel procurements (both acquisition and sustainment) valued at $20 million and above. 166. As many Defence capabilities, particularly bases and infrastructure, are located in regional Australia, the AIC Program can often deliver significant long-term benefits for regional Australian industry. 167. The broad aims of the AIC Program are to: a. Maximise opportunities for Australian industry; b. Deliver an enduring Australian industrial capability through the project to support broader defence capability needs; c. Facilitate innovation, technology transfer and research and development collaboration; d. Provide global supply chain opportunities for Australian industry; and e. Promote the involvement of Indigenous business in the procurement strategy. 168. Under the AIC Program, tenderers are required to deliver detailed AIC Plans that contain: a. The prime contractor’s strategy for maximising Australian industry participation, including engagement and source selection approach, governance and achievement of the AIC Plan, and how ‘in-contract’ market testing will be undertaken; b. An AIC Schedule consisting of each work package that will be committed to Australian industry, their value and location (known as local industry activities); and c. Local Industry Activity description sheets detailing benefits of engaging Australian industry, the intellectual property/ technical data and international trade in arms control or security restrictions, and risks and remediation plans in using Australian industry. 169. The AIC Program has been strengthened through more explicit requirements on tenderers to: a. maximise opportunities for Australian industry; b. deliver an enduring Australian industrial capability through the project to support broader defence capability needs; c. facilitate innovation, technology transfer, and research and development collaboration; d. provide global supply chain opportunities for Australian industry; and e. Promote the involvement of indigenous business in the procurement strategy.

170. For Non-materiel procurements valued at $20 million and above, the Commonwealth’s Australian Industry Participation (AIP) policy and program (administered by the Department of Innovation, Industry and Science) is applied. It requires that tenderers for certain Commonwealth procurements prepare and implement an AIP Plan that maximises Australian industry participation by providing full, fair and reasonable opportunities. AIP Plans aim to provide Australian industry with the opportunity to demonstrate their capabilities and tender if they are able to meet the procurement specifications. Defence implementation of the Indigenous Procurement Policy (IPP) 171. Defence launched its Indigenous Procurement Policy (IPP) Strategy in March 2019 which aims to increase the value of contracts and business relationships with Indigenous businesses, including those located in regional and remote Australia. This initiative contributed to a significant increase in the number of contracts awarded to Indigenous businesses in 2018-19 with Defence awarding 1,878 contracts, valued at $354.1 million, more than three times the annual 3 per cent target of 618 contracts. Since the IPP was implemented in 2015, Defence has awarded over $1.17 billion in contracts to Indigenous businesses, with 148 contract valued at $166.2 million reported to be delivered in remote Australia (as per the definition within the IPP). 172. Defence has also included the requirement to address potential opportunities for Indigenous businesses as part of key considerations throughout the capability life cycle planning and as part of the new Australian Industry Capability Plan (AIC) template. Defence engagement with Regional Australian industry 173. Australian industry plays a significant role in providing both specialist materiel and non-materiel goods and services to Defence. Defence has a geographical footprint across metropolitan, regional and remote locations, and generates significant demand for a very wide range of goods and services. Local companies, including small to medium enterprises, have been successful in competing for Defence contracts by demonstrating their ability to deliver value for money. 174. In addition to procurement activities, Defence actively engages with a variety of industry groups including through working groups, peak body engagement, industry consultations, meetings with key suppliers, the Defence + Industry Conference and briefings at a range of other industry-related fora. Defence also participates in events arranged by industry such as conferences and trade expositions. A range of events are also conducted by Defence’s Services and Groups as an effective means of communicating current strategic military issues, capability priorities and project plans and timeframes with industry (e.g. Land Warfare Conference, Sea Power Conference and Air Power Conference). Defence Base Services contracts 175. Defence has in place ten Base Services contracts which support the management of the Defence estate across Australia, which includes many bases and smaller sites in regional Australia. The annual combined value of the contracts (excluding estate works) is estimated at over $1 billion. 176. These contracts deliver a broad range of services including estate maintenance, cleaning, housekeeping, training area and range management, sport and recreation management, transport, laundry and dry cleaning, airfield operations support, land management, pest and vermin management, waste management, access control, aircraft refuelling, aircraft rescue and fire-fighting, hospitality and catering, stores management and petrol, oils and lubricants. 177. Base Services contractors are strongly encouraged to draw their workforce from local employment areas as well as engaging local business suppliers. The nature of Base Services requirements and geographical distribution of Defence bases further enables engagement of local employees and suppliers in regional and remote areas. Centre for Defence Industry Capability (CDIC) 178. The CDIC plays a major role in maximising Australian industry capability and involvement in delivering and sustaining Defence capability. The CDIC is a Defence funded $230 million initiative to 2025-26. The CDIC is responsible to the Minister for Defence Industry, but it sits within the federal Department of Industry, Innovation and Science (DIIS). This is in order to leverage DIIS’s broader industry and business programs and its support and expertise in government program delivery. The CDIC is headquartered in Adelaide with a national presence. 179. The CDIC’s aim is to assist in building supply chains across Australia, funding new industry development, critical skilling and export programs, and facilitating access to Defence’s innovation programs, particularly for SMEs. The CDIC works with Australian suppliers to ensure they are Defence business ready through advisory services and support, including the award of Capability Improvement Grants, Sovereign Industrial Capability Priority Grants, and Defence Global Competitiveness Grants. 180. The CDIC also provides Australian industry with a single focal point in seeking to support Defence. This includes being the entry point for Defence Innovation Hub proposals through the Innovation Portal hosted on www.business.gov.au. Defence Innovation Hub 181. The Defence Innovation Hub is a $640 million investment in collaborative innovation activities over the decade to 2025-26, from initial concept, through prototyping and testing and to introduction into service to meet Defence capability needs. The Hub consolidates Defence’s previously disparate innovation programs, facilitating Defence, industry, academia and research institutions to collaborate on innovative technologies that can deliver better Defence capability outcomes. A strategic approach to investment in Defence-related innovation will deliver better capability outcomes through Australian industry, both for new capability and its evolution once in service. The Hub is open to receive proposals through the Defence Innovation Portal managed by the CDIC. Supporting this approach to innovation is the development of cultural and business processes which remove the barriers to innovation, including creating new contracting and intellectual property policies. 182. The Hub is complemented by the Next Generation Technologies Fund (NGTF) overseen by the Defence Science and Technology Group. The NGTF is a $730 million investment over the next decade to 2025-26 in next generation technologies aimed at positioning Defence to respond to strategic challenges and develop the next generation game- changing capabilities for the future. Fostering Australian industry to have internationally unique innovation and research and development capabilities will assist in product innovation, building skills and competitiveness.

Annexes

A. Map of Department of Defence Bases and Training Areas B. Army Reserve Presence C. Examples of Expenditure at Defence Establishments D. Defence Estate Design and Use Principles

Annex A

Boigu Is Berrimah Def. Precinct HMAS Coonawarra Yorke Is Larrakeyah Bcks RAAF Base Darwin Thursday Is Robertson Bcks Bamaga Shoal Bay Receiving Station NAXA Horn Is Stokes Hill

NAXA Nhulunbuy Jabiru Weipa DARWIN Lockhart River RAAF Base Scherger Darwin AWR Mt Bundey T.A. Aurukun HMAS Cairns Kangaroo Flats T.A. Groote Eylandt Coen Port Keats Mt Goodwin RAAF Base Tindal Bradshaw Pormpuraaw T.A. Kowanyama Cooktown Kununurra Delamere Yampi Sound T.A. AWR

Mornington Island Mareeba Derby CAIRNS Kalkaridnji DST Elliot Innisfail RAAF Base Townsville Burketown Atherton Cowley Beach T.A. Lavarack Bcks Broome RAAF Base Curtin Tully T.A. Ross Island Bcks Townsville AWR Mt Stuart T.A. Townsville Field T.A.

Tenant Creek Greenvale T.A. TOWNSVILLE Macrossan Port Hedland NWXA Karatha - Taylor Bks Mount Isa NT Mackay Saumarez RBR Learmonth AWR Exmouth B (HE Holt) QLD RAAF Base Learmonth Tom Price Shoalwater Bay T.A. Learmonth AWR Jindalee TS - Harts Range Newman Rockhampton Pine Gap Emerald JORN Longreach Alice Springs Gladstone Jindalee RS - Mt Everard JORN Stonehenge

Carnarvon Bundaberg

Maryborough Gallipoli Bcks GympieWide Bay T.A. (Enoggera) WA Roma Damascus Bcks Borneo Bcks HMAS Moreton Dalby Victoria Bcks Army Aviation Centre Oakey Toowoomba BRISBANE RAAF Base Amberley Greenbank T.A. Warwick Kokoda Bcks Canungra T.A. Geraldton Satellite Station Stanthorpe Geraldton JORN Laverton (Leonora) Casino Lismore Evans Head AWR Wallangarra Woomera Prohibited Area Grafton ! Defence Establishment Coffs Harbour Muchea AWR Armidale Lancellin T.A. SA Woomera Bindoon T.A. Kalgoorlie Defence Establishment ! Woomera Tamworth - Beersheba Bcks Kempsey Gin Gin Port Macquarie Northam RAAF Base Woomera Broken Hill Taree Lone Pine Bcks WAXA Cultana T.A. Myambat Muswellbrook Singleton T.A. PERTH Port Augusta - El Alamein Bcks Salt Ash AWR Defence Establishment Orchard Hills Rutherford - Scobie Bcks Defence Plaza Sydney Whyalla RAAF Base Port Pirie NSW Parkes DSTO Sydney Bunbury RAAF Base Wagga Marrangaroo Williamtown Garden Island Dockyards Coolilup Kataning HMAS Kuttabul Clare Orange - Romani Bcks Kadina Blamey Bcks Bathurst SYDNEY Liverpool Military Area Berri HMAS Penguin Bandiana military area Wollongong Leeton Cootamundra EAXA HMAS Watson Port Lincoln Mulwala explosives factory Goulburn RAAF Base Glenbrook Albany ADELAIDE Jervis Bay air field RAAF Base Richmond Campbell Bcks (Swanbourne) Benalla Munitions Factory ACT Irwin Bcks (Karrakatta) Randwick Bcks Port Wakefield Proof and Exp Establishment Murray Bridge T.A. Wagga Wagga Timor Bcks Leeuwin Bcks Albury Wirlinga HMAS Waterhen HMAS Stirling AGO - Bendigo Cooma Victoria Bcks RAAF Base Pearce Horsham Freemantle Artillery Bcks Mangalore Eden Palmer Bcks SAXA HMAS Creswell Ballarat Monegeeta VIC Mt Gambier Bairnsdale HMAS Albatross MELBOURNE Beecroft WR Edinburgh Defence Precinct Colac RAAF Base East Sale RAAF Base Edinburgh CANBERRA Geelong Dutson T.A. DST Edinburgh ANZAC Park West Elizabeth Nth Training depot Australian Defence College Hampstead Bcks West Head Devils Tower AWR Australian Defence Force Academy Puckapunyal Military Area Pyramid Rock AWR Keswick Bcks Puckapunyal T.A. Gunnery Range Brindabella Park Warradale Bcks Graytown Proof & Exp Establishment Campbell Park Offices Woodside Bcks Deakin Offices Stony Head T.A. Defence Establishment Fairbairn Scottsdale HQ Joint Operations Command Defence Plaza Melbourne HMAS Harman DST Fishermens Bend Royal Military College Duntroon DST Maribyrnong Russell Offices (Defence Headquarters) Fort Queenscliffe TAS Fairbairn Business Park HMAS Cerebus Buckland T.A. Fyshwick Offices Maribyrnong Explosives Factory Point Cook HOBART RAAF Base Williams Simpson Bcks Victoria Bcks Anglesea Bcks Derwent Bcks

Establishments Exercise Areas Training Areas Defence Practice Areas 4 Department of Defence Other selected establishments Highways 0 200 400 600 800 Major Cities Defence Estate Kilometers Produced by E&IG/ID/EPB Task: 19/003 Ref: BS6610796 Date Created: 31/10/2019 Annex B

Army Reserve Presence in Rural and Regional Australia

1. NSW-based units (5th and ) train at the following locations:  Holsworthy  Singleton  Majura  Kapooka  RAAF Base Williamtown  Greenbank Range Facility  Orchard Hills.

2. Shoalwater Bay Training Area and Wide Bay (QLD) are used when conducting paired activities with , or when participating in Exercise HAMEL.

3. QLD-based units (11th Brigade) train in the following locations:  Townsville Field Training Area (TA)  Mount Stuart TA  SWBTA  Wide Bay TA  Canungra TA  Greenbank TA  Gallipoli Barracks, Enoggera.

4. 51st Far North Queensland Regiment sub-units train in local depots, using Defence land where possible. Non-Defence land is requested when required. Training is conducted in the following locations:  Mt Isa rifle ranges  Weipa (RAAF Base Scherger)  Atherton rifle ranges  Bamaga  Torres Strait Islands and sea zones  Cairns: o Wangetti rifle ranges o Cowley Beach o Local sea inlets for watercraft activities.

5. Victoria-based units () train in local depots, primarily conducting field training at the Puckapunyal Training Area. In addition, Shoalwater Bay Training Area and Wide Bay (QLD), Cultana Training Area (SA) and the Mount Bundey Training Area (NT) are used when conducting paired activities with and , or when attending Exercise HAMEL. 6. Tasmania-based (9th Brigade) units primarily use Stony Head and Buckland Training Areas (TAS). In addition, Shoalwater Bay Training Area and Wide Bay (QLD), Cultana Training Area (SA) and the Mount Bundey Training Area (NT) are used when conducting paired activities with 4th Brigade and 1st Brigade, or when attending Exercise HAMEL.

7. WA-based units () train in local depots, primarily conducting field training at:  Bindoon Training Area  Northam Training Area  Lancelin Training Area  Coolilup Defence Rifle Range (Bunbury)  Non-Defence Training Areas, such as Collie Forrest are used (occasional use).

8. WA-based Pilbara Regiment uses the following training areas:  Peron WA Department of Education Camp  Bindoon TA  HMAS Stirling  Lancelin TA  RAAF Learmonth  Exmouth Stations (Exmouth, Cardabia)  Carnarvon Stations (Brick House, Callagiddy, Ella Valla, Murchison, Quobba)  Karratha - Stove Hill crown land  Karratha Stations (Karratha, Cleeverville, Mt Welcome)  Dampier Archipelagos  Port Hedland Stations (Pipingara, Wallal, Munda, Boordarie, Pardo, DeGrey)  Newman - Round Hill crown land  Newman Stations (Sylvania, Hooley, Mulga Downs, Roy Hill)  Tom Price - Tom Price Stations (Hooley, Rocklea)  Karijini National Park.

9. SA-based units (9th Brigade) primarily use the Murray Bridge Training Area and Cultana Training Area. In addition, Shoalwater Bay Training Area and Wide Bay, and the Mount Bundy Training Area are used when conducting paired activities with 4th Brigade and 1Brigade, or when attending Exercise HAMEL.

10. NT-based units (North West Mobile Force) conduct most training at the Kangaroo Flats TA and Robertson Barracks. Training is also conducted at the following locations:  Tipperary Station  Coomali Farm  Boating courses are conducted in Darwin Harbour and in the vicinity of the Tiwi Islands.

11. Other small activities have been conducted around the NT/WA on private land and/or Indigenous land. Annex C

Examples of Expenditure at Defence Establishments [Full Year Spend for 2018-19]

RAAF Base Townsville, Lavarack Barracks, Ross Island Barracks, Mr Stuart Training Area.

Military Civilian Major Employee Employee Facilities Facilities Capital Supplier Financial Expenses Expenses Capital Operating Grants Equipment Expenses Total Year $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 2018-19 523,596 16,706 15,486 11,013 40 253 21,639 588,732

Shoal Water Bay Training Area

Military Civilian Major Employee Employee Facilities Facilities Capital Supplier Financial Expenses Expenses Capital Operating Grants Equipment Expenses Total Year $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 2018-19 1,308 95 14 340 - 2 1,423 3,181

HMAS Cairns, RAAF Base Scherger, Sarpeye Barracks Thursday Island

Military Civilian Major Employee Employee Facilities Facilities Capital Supplier Financial Expenses Expenses Capital Operating Grants Equipment Expenses Total Year $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 2018-19 488,398 6,191 - 399 47 49 41,912 136,996

Robertson Barracks, RAAF Base Tindal, Bradshaw Field Training Area, Delamere Range Facility Mount Bundey Training Area Kangaroo Flat Training area, Robertson Barracks Close Training Area

Military Civilian Major Employee Employee Facilities Facilities Capital Supplier Financial Expenses Expenses Capital Operating Grants Equipment Expenses Total Year $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000

2018-19 188,861 3,033 111,237 12,516 - - 31,046 346,692 Cultana Training Area (CUTA) Woomera Range Complex, Proof and Experimental Establishment Port Wakefield

Military Civilian Major Employee Employee Facilities Facilities Capital Supplier Financial Expenses Expenses Capital Operating Grants Equipment Expenses Total Year $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 2018-19 3,252 2,264 26,619 566 - 195 9,888 42,784

RAAF Base Curtin, RAAF Base Learmonth, Taylor Barracks, Naval Communications Station, Harold E Holt, Yampi Sound Training Area (YSTA), Australian Defence Satellite Communications Station (ADSCS) – Kojarena.

Military Civilian Major Employee Employee Facilities Facilities Capital Supplier Financial Expenses Expenses Capital Operating Grants Equipment Expenses Total Year $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 2018-19 9,507 582 25,688 2,271 157 10 1,032 39,247

Singleton Military Area

Military Civilian Major Employee Employee Facilities Facilities Capital Supplier Financial Expenses Expenses Capital Operating Grants Equipment Expenses Total Year $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 2018-19 53,582 1,607 - 498 1 201 1,624 57,512

Puckapunyal Military Area

Military Civilian Major Employee Employee Facilities Facilities Capital Supplier Financial Expenses Expenses Capital Operating Grants Equipment Expenses Total Year $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 2018-19 23,385 2,567 - 68 - 42 1,254 27,316 DEFENCE ESTATE STRATEGY 2016 - 36

Annex D Estate Design and Use Principles FPR - Estate initiative E001-14

DISPOSITION LAND FACILITIES & INFRASTRUCTURE

An Estate of the right size, in the right location. Where do we need to be to Use the land that comprises the Defence Estate effectively and efficiently. Use buildings, services and infrastructure on the Defence Estate conduct operations? Where do we need to be to effectively and efficiently effectively and efficiently. raise, train and sustain capability?

D1. Capability Requirements L1. Ensure Highest & Best Use F1. Locate Facilities Appropriately This is the primary disposition principle. Base location is primarily influenced by Reserve / use high value land for operational purposes and not for lower priority Ensure facilities, services and infrastructure are appropriately sited in accordance with operational requirements. Basing should ensure critical capabilities are dispersed for purposes. Allocate land to precincts to cluster similar or related functions together. accompanying Land Principles, relevant Zone and Environmental Management Plans security reasons as is required. If operational requirements are not location specific, the Consider the hierarchy of functions together with the principles of security layering. Allow and in consideration of relevant site constraints. Consider the functional alignment of other principles below can inform disposition. for adequate access to and movement between working and living areas. Reserve space buildings and their proximity to each other. Allow adequate buffers between our facilities for the upgrading and / or augmentation of services and utilities. and the property boundary to minimise the potential for land use conflicts from external development / encroachment occurring at / near the property boundary. Estate Strategic Guidance, WP, FSR, Estate Strategic Review, Disposition Review Estate Base Plan, Zone Plan, IBC, DBC Estate Base Plan, Zone Plan, IBC, DBC

D2. Site Attributes L2. Ensure Compliance F2. Ensure Compliance Consider the conduciveness of the site’s attributes such as its size and topography to Ensure land use is compliant with relevant legislative requirements, land use agreements Ensure facilities are designed, constructed and maintained to be fit for purpose accommodate the intended purpose and also potential future intensification and / or and/or leasing arrangements, including EPBC Act approval conditions, Indigenous Land and compliant with relevant legislative requirements, land use agreements and/or capability enhancements and the necessary separation space between adjoining land Use agreements, property lease conditions and / or Practice Area Declarations etc. leasing arrangements, including WHS, Security and Building Code requirements, EO uses. Consider environmental constraints that may restrict utility, including seasonal Safeguarding Arcs and Range Safety Templates. weather conditions and resilience to long term changes to the estate from climate change, including temperature, sea level rise, erosion, flooding, bushfire and increased frequency of extreme weather events. Consider the site’s ability to provide a secure and reliable energy and water supply. Reduce excessive travel time between training areas (excluding CAT 1) and their primary users as far as practicable.

Estate Strategic Guidance, WP, FSR, Estate Strategic Review, Disposition Review Estate Base Plan, Zone Plan, IBC, DBC, Estate Operations, Service Delivery, Environmental Management Programs IBC, DBC, Estate Operations & Service Delivery

D3. Consolidate Into Fewer, Larger Bases L3. Increase Capacity F3. Maximise Multi-use / Shared Facilities Pursue estate consolidation to reduce the estate footprint, increase functional alignment Make better use of developable land by increasing development densities where Maximise the use of shared facilities that are not service specific such as messes, gyms, and reduce estate operating costs. practicable, including increasing building storeys and use of multi-storey car parks. lecture halls, training rooms, office accommodation, storage facilities and ablutions Maximise the amount of developable land by remediating sterilised land that could where appropriate. otherwise be utilised.

Estate Strategic Guidance, WP, FSR, Estate Strategic Review, Disposition Review Estate Base Plan, Zone Plan, IBC, DBC, Environmental Management Programs Estate Base Plan, Zone Plan, IBC, DBC, Estate Operations & Service Delivery

D4. Foster Personnel Retention L4. Dispose of Surplus Land F4. Maximise Efficiency Locate properties in family friendly locations to increase personnel retention, by Dispose of surplus property in a timely fashion. Ensure buildings are designed, constructed, operated and maintained to maximise the maximising spousal employment opportunities and access to community and social efficient use of utilities such as electricity and water. Consider ‘Whole of Life Costs’ services. Consider the proximity bases and existing / potential Defence Housing including the ability to monitor facility efficiency. Maximise the use of standard designs locations. for generic building types, whilst allowing for the flexibility to alter the building footprint to account for site attributes and orientation to improve resource efficiency. Designs should also consider ease of maintenance including cleaning.

Estate Strategic Guidance, WP, FSR, Estate Strategic Review, Disposition Review Estate Planning, Service Delivery, Estate Disposals Program Estate Base Plan, Zone Plan, IBC, DBC, Delivery, Estate Operations & Service Delivery

D5. Enable Access to Industry F5. Enable Adaptive Re-use Locate properties to allow access to and certainty for Industry with regard to sustainment Ensure facilities are designed to be readily adaptable to enable them to be used for a and support. Consider ‘off base’ solutions that utilise non-defence owned strategic range of purposes. Actively consider the adaptive re-use of a building before pursuing infrastructure to reduce reliance on Government Furnished Facilities arrangements where new builds or demolition. If re-use is not feasible, demolish facilities, subject to relevant it is feasible to do so. heritage considerations and demolition plans. Consider heritage values holistically across the estate. Achieve balanced outcomes that meet capability needs, heritage obligations and community expectations within available resources.

Estate Strategic Guidance, WP, FSR, Estate Strategic Review, Disposition Review Estate Base Plan, Zone Plan, IBC, DBC, Delivery, Estate Operations

D6. Maintain Urban and Regional Disposition F6. Manage Vacancy Rates Maintain an urban and regional disposition to promote community linkages to Defence Manage Office, Working and Living-in Accommodation vacancy rates to ensure that they and facilitate provision of reservist and cadet capabilities. are within prescribed / acceptable levels, including allowing for surge capacity.

Estate Strategic Guidance, WP, FSR, Estate Strategic Review, Disposition Review Estate Operations & Service Delivery 35