Andrew Nicholls

Profile/Overview

• Andrew has over 25 years experience working in the Defence environment, including 6 years in the . He has been an adviser to three Ministers for Defence on Financial and Budgetary matters, reformation of Acquisition and Logistics organisation, Shipbuilding, Submarines, reform of the DMO and CFO organisations as well as Capability Development. Andrew has worked within DSTO and the Regional Analysis and Modeling Division within the US Defense Department and undertaken substantial work in Canada of air and maritime projects as well as procurement and costing policies. His last role within Defence was Senior Adviser to the Minister of Defence on White Paper and Major Projects, including shipbuilding and submarines. • Costing. Andrew has a breadth of experience in Project life cycle costing, Military

preparedness costing and program costing. His experience has included developing Andrew Nicholls individual life cycle costs as part of the project development phase, tender evaluation as Semi-retired well as managing the development of large numbers of estimates. He has experience in the development of costs for the public and sector. Director (Casual) KPMG • Strategic Planning. Andrew has been a highly respected senior executive supporting strategic planning and execution in Defence, the Private Sector and Political Spheres. Function and Specialisation Andrew recently completed over a year as Senior Adviser to the Minster for Defence on issues of strategy, Defence Industry policy, force structure and project development. In Life Cycle Costing Strategic Leadership, Planning and analysis particular his primary focus was the new White Paper, Force Structure review, Industry Business Case Development policy, Armoured Vehicles, Future Submarines and Future Frigate programs and Joint Project Management Services Strike Fighter program. He worked closely with the Prime Minster’s, Treasurers and Capability Development Finance Minister’s offices in supporting the Minister.

Certifications & Professional • Capability Development. Andrew has over twelve years experience in the development Memberships and management of projects and associated programs in Defence Major equipment. He has worked different levels of the development process, including as an Assistant • Member of the International Cost Secretary and time as a political advisor on Capability Development for the Minster for Estimation & Analysis Association (ICEAA). • Graduate Australian Institute of Company Defence. Andrew has been a key advisor on a number of Defence White Papers, Directors particularly in 2009 where he lead costing of all major capability projects and most recent • Master of Defence Studies (University of White Paper where he was the lead in the Minister of Defence’s office. NSW) • Graduate Certificate in Applied Finances. • Certificate IV in Government (Procurement & Contracting) • PRINCE 2 (Foundation) • Bachelor of Arts (Psychology)(University of NSW)

Andrew Nicholls

Experience – Maritime Sector

• (2017) Andrew is working on the development of the updated Project Execution Strategy for SEA 5000 Future Frigate. This strategy will guide the implementation of the project, with a focus on management of key strategic risks. • (2017) Andrew developed the infrastructure business case to support the redevelopment of Techport area to support the future continuous shipbuilding program. • (2016) As part of the First to Second pass activities, Andrew Nicholls assisted the SEA 5000 project develop business case and strategic advice to support strategic planning and reporting to Government. • (2016) Andrew supported the development of the Cabinet Submissions and associated documentation for the Australian Government’s consideration of the Australian Future Frigate Program (SEA 5000) and Offshore Patrol Vessel (SEA 1180) and was primary drafter of First Pass Cabinet Submission for SEA 5000. • (2015-16) As part of the engagement of Future Frigate and Offshore Patrol Vessel, Andrew developed independent cost estimate to assist in the cost assurance assessment of these projects. • (2015) Provided costing support to the Department of National Defence in Canada around the potential acquisition of an interim refueling vessel for the Navy. This involved independent analysis and assessment of the acquisition and operating costs of a potential modified vessel. • (2015-16) Andrew provided support to the Canadian Department of National Defence around the acquisition costs of a fleet of new surface combatants. Andrew’s role was to support the development of an independent cost estimate of the fleet of vessels, taking account a range of factors. • (2015) Developed new project cost for long term research program for phased array technology for use within the military environment. He is also developing costs for the integration of advanced software modes on a range of radar systems. • (2015) Andrew completed an independent cost estimate for the Australian Antarctic Division for a new icebreaker. He developed detailed capital and operating costs using a range of tools including world leading parametric estimation and independent research into key cost drivers. • (2014) Provide strategic advice to Minister for Defence (Johnston) on major project acquisition and the White Paper. Andrew was the Senior Adviser to Minister Johnston until the reshuffle at the end of 2014. In this role he provided advice and support to the Minister in the following key areas: - Defence White Paper - Defence Capability Plan and Major Projects - Future Submarine Program - Future Frigate Program - Defence Industry Statement

Andrew Nicholls

Experience – Air Sector

• (2017) – Andrew provided SME support to the Victoria Police Air Wing to support the transition from the current contractual arrangements of their Aviation Capability Program (ACP) to the new arrangements. • (2017) Andrew worked as the Sustainment Affordability manager for the Australian F- 35A project. He is supported the analysis and estimation of through life costs to support the F-35A in Australia including the analysis of potential options to reduce costs. He has developed a model to support modeling of alternative options and investigation of cost sensitivity and uncertainty. • (2017) Andrew lead the development of a whole of life costs for a project to support Aviation future requirements. He was also responsible in leading the analysis of the future sustainment and operating costs for a range of options for existing Army aviation capabilities to support senior decision making in Army. • (2016) He developed a model to support Air 7000 to support the Commonwealth financial team manage the Project ledger, asset reporting, and introduction into service. • (2016) Andrew lead a quick look financial analysis of a range of options associated with the future operating costs of managing aviation. • (2016) Andrew lead the development of a set of life cycle cost models to support the management of three military helicopter fleets within the . These models are being designed to assist in the management decision making of Defence and to support detailed contract negotiations for the sustainment of one of the helicopter fleets. • (2012) Development of Life Cycle Costing Framework for Canadian Government. Andrew lead the costing team responsible for the development of a life cycle costing framework to support the Treasury Board of Canada Secretariat. In establishing this framework, Andrew and his team examined leading practices and standards across the world, as well as consultations within Defence and Governments globally. This framework was used for the validation of costs for the Canadian Joint Strike Fighter. Andrew was also responsible for adapting this more specific framework for use within the Canadian Department of National Defence for all major complex projects. This report was publically announced by the Canadian Government on 12th December 2012. • (2012) Joint Strike Fighter. Andrew lead the costing team responsible for the independent review of the LCC of the Canadian Joint Strike Fighter (JSF) project. He was responsible for assessing costs for the acquisition, operations, sustainment and disposal of the JSF project in Canada. This work involved independent review, consultations across the Canadian Government, including Defence and consultation with other international Defence Departments acquiring the JSF. This report was publically announced by the Canadian Government on 12th December 2012. • (2012) Air Combat Transition Plan. Andrew lead a team to review four options for the delivery of air combat capability in Australia. The total costs of all projects under review was in excess of $200 billion dollars. This work included detailed review of costs, cost drivers and a comparative analysis across aircraft systems. This work was a key input into Defence’s submission to the Defence Minister to identify suitable air combat options. Andrew Nicholls

• (2011) Develop a model to cost, and support budget reporting, and forecasting of the C- 17 heavy lift aircraft. This model was developed to be used by the Defence Materiel Organisation to support an ongoing need to estimate cost of the aircrafts operations and report actual expenditure against budgets. The tool captured a range of Australian and U.S. data sources, provided costed outputs to support budget and forward estimate planning. • (2009) Andrew undertook a costing for the provision of aircraft flying services on behalf of a $100 million plus tender by a private sector company. The model he developed included examining alternative means of training (virtual vs actual), alternative sites for the school, weather impacts on flying program and costs. This model supported the company’s bid. • (2009) Andrew undertook a costing for a private sector company bidding into the provision of helicopter services in PNG. This model examined the establishment of a helicopter fleet (mixture of owned and leased) and its deployment into PNG highlands. • (2004) DSTO– Undertook review of Maritime Patrol aircraft fleet, and supporting elements to expand level of crewing, and identify constraints within the existing system through a range of modelling techniques. Develop high level costs of approach including changes in aircraft spares holdings. • (2003) Adviser to Minister of Defence on new major capital project, including the decision to commit to the Joint Strike Fighter.

Other relevant experience

• (2017 – present) Andrew is supporting the Canadian government review its Defence procurement policies. • (2017 – present) Andrew is leading the development of cost of Defence’ future SAP project, which is the largest such project undertaken by a Government Department in Australian history. The system will consolidate all key financial, maintenance, logistics and other functions within the SAP Hanna environment. • (2016-17) Andrew led the development of business cases to support the development of a number of infrastructure projects within Defence Information Group (CIOG). • (2015) Andrew recently lead a team to develop the life cycle cost of alternative options for the upgrade of Defence’s SAP based financial system and rationalization of other non- SAP systems into SAP , including the potential move of these services in whole or in part to a cloud based infrastructure. • (2015-16) Andrew is led a team to updated Defence’s costing methodologies for Major Capital Equipment, ICT costing, Software costing and facilities costing. This work includes the development of quality standards to be applied against key project milestones, recognizing differences in cost objects (such as computer systems and armored vehicles). This framework will be aligned to world better practice and fully compliant with the Australian Department of Finance direction of cost quality. Andrew Nicholls

• (2015) Lead a team undertaking cost assurance of 28 major Defence projects and the development of 9 new project costs. These projects ranged in size from under $100 million to over one billion over their life. • (2015) Andrew led a team to develop a business case for the deployment of multifactor identification cards into the deployed military environment to access highly classified networks. In addition to leading the development of the business case, Andrew also developed costs estimates to support consideration by senior committees within Defence’s Chief Information Officer’s Group. • (2015) Andrew supported the development of an independent cost estimate for the implementation of a SAP based Child Support System Redesign program within the Department of Human Services. • (2013) Change Management Business Case costing for Australian Geospatial-Intelligence Organisation: Andrew supported the analysis of alternative options to exploit new capabilities in Geospatial-Intelligence Capabilities. His role involved developing the life cycle cost (LCC) base line, and LCC of alternative models to support a cost benefit analysis and business case. • (2015) Software Cost Estimate for Department of Health. Using parametric based cost estimating techniques Andrew developed a high level project estimate to support the implementation of new payment scheme (Family Household Support Payment) based on a SAP systems roll out, as a comparator for the Departments estimate. • (2013) Develop a cost model to assess cost benefit of alternative clothing delivery. Andrew is supported HQ Army undertake a trial of an online system of clothing management. He is developing an activity based LCC costing model and analysis tool to measure costs and other KPIs around the program. • (2012) Life Cycle Costing of Joint Project 2099 – Identity and Access Management. Andrew undertook a costing of through life components of a project to improve identity and access management within the Australian Department of Defence. His analysis was part of a program to re-focus JP 2099, to take advantages of a range of changes that had occur since the project had originally been established. • (2013) Update of existing cost presentation template. Andrew lead a small team to update the existing Defence Excel based template used to present all major project costs to the Department of Finance to ensure it address existing stability issues, and to improve existing controls to prevent unintended user errors. • (2013) Options to replace or upgrade the existing excel based cost presentation tool. This analysis included the development of high level requirements, through stakeholder workshops and review. This work also involved the analysis of existing off the shelf options, ranging from highly specialized parametric based tools through to enterprise based systems, along with associated costs and timelines. Defence accepted the findings of this review. • (2011-12) Development of the likely break even point for domestic commercial investment in munitions manufacturing in Australia. Andrew lead a small team to develop a model that could analyse a range of scenarios to support Defence gain a high level understanding of the commercial viability of munitions manufacturing in Australia. Andrew Nicholls

This analysis supported the development of aspects of the commercial arrangements for an RFT. • (2012) Undertake Life Cycle Costing of the ground segment of satellite communications system to be located on the eastern coast of Australia. Andrew was responsible for developing an estimate for the costs of the system, including facilities, electronics equipment, and support services. Additionally, he developed a tool to collect financial information from Industry and integrate these costs with Government costs to support Contract analysis and negotiations. • (2012) Develop a model that captures the full costs of the provision of HR Services within the Department of Defence for the 2010/11 Financial Year. Based on work being undertaken to implement a shared services model within Defence, develop a cost model that will support the analysis of costs and benefits of various approaches. Support Defence develop internal tools and procedures to allow them to undertake costing of HR Services into the future (knowledge transfer). • (2011-12) Undertaking a review of liabilities that the Government may be subject to, when contracts that support the manufacture of explosives and ammunition expire. This work involved both the identification of liabilities and the likely financial impact of these liabilities based on a desktop analysis of the existing contract. • (2011) Therapeutic Good Administration – Cost Recovery Charges. Andrew supported the development of Cost Recovery Charges through the development of an activity based costing model in support of services provided by TGA subject to cost recovery. • (2011) Analysis and oversight of costing in support of the tender evaluation of the Next Generation Desktop services within Defence. Andrew was responsible for ensuring the accurate and timely analysis of tenders financial data and developing a compliant report to support tender evaluations by Defence. This report was well received and supported the development of a preferred tender as well as contract negotiations. • (2011-12) Capture and explain the full costs to Defence for the Manufacture of munitions within Australia for the Defence Materiel Organisation. Andrew lead a small team to develop a detailed understanding of the full cost of manufacturing munitions within Australia. This model brought together information from a range of sources, to present for the first time these costs to Defence at the individual munition type level. • (2010) Australian Maritime Safety Authority. Andrew supported the development of costs for the current operations of Maritime Safety around Australia, to support regulatory reform. This work involved development of costs for all Australian jurisdictions and identification of costs against a described set of functions and activities. This work included analysis of financial systems and interviews with State and Territory authorities. Data collected and analyzed included non-financial data such as ship numbers and types, survey methods, licensing arrangements. The outcome of this work supported Council of Australian Governments reforms. • (2010) Reviewing the cost effectiveness and structure of ACT Shared Services, Andrew supported the analysis of ACT ICT service costing through an analysis of existing costing methodologies and customer agreements. • (2008) Department of Defence – Assistant Secretary, Investment Analysis responsible for managing the Defence unapproved major projects program (DCP), along with providing Andrew Nicholls

independent analysis of project requirements, life cycle costs, strategic alignment and procurement methods. Andrew spent three years in this role as well as an additional two years as a Director focussed on the development of Maritime Projects. Leading the DCP Companion Review, a significant reform stream associated with the Defence White Paper, to reform the development of major capital projects processes. • (2007-09) Leading the development of costed force structure options to support the Defence White Paper 2009. This involved managing the development of life cycle costs for over fifty projects, including the incorporation of reforms to the cost estimation process with Defence that are now a standard part of Defence cost estimating business process.