Blocking Gaps in Defence Capability

The Australian Defence Organisation recognised that capability gaps existed between its current systems and its future needs.

The client required the development of a business case for submission to Federal Cabinet. In the context of Defence capability development and procurement, this was an unusual project, in that capability definition and development was being done by another defence organisation. Further, the capability being procured was not platform or equipment specific, but rather a complex Defence information system, which would provide state-of-the-art management and financial management.

SMS was engaged to manage the project and to deliver the business case, including the highly complex costing models required for central agency approval. The project required delivery in a very short time and internal Defence suppliers were not able to respond within this truncated timeframe.

Through analysis and structured dialogue with key stakeholders, SMS identified existing capability gaps and contributing factors, then performed detailed costings of potential initiatives to close these gaps.

SMS had already identified that no single system could be purchased to provide the capabilities required by Defence. SMS identified and validated, with key Defence stakeholders, those capability gaps in the existing system and the factors contributing to these gaps. SMS identified projects and initiatives that could help address the gaps and evaluated them based on their contribution to improving the capability of the system, the costs and risks associated with these projects, and other benefits that could be achieved, including the potential for other systems to be decommissioned. SMS also focussed very strongly on obtaining detailed costs for each project, based on guidance from capability management staff in Defence.

SMS developed the required business case, supported by the Capability Options Document and Acquisition Management Plan.

At Defence’s request the project was divided into three sub-phases to better manage the significant capability delivery. The first phase - delivery of the initial business case - is complete.

SMS also developed and validated a capability model with Defence stakeholders to help prioritise the projects that were required to address the identified and agreed capability gaps.

At time of writing, SMS had delivered the first of two sub-phase business cases, on schedule and within budget, despite the tight timeframe.

All of the Defence stakeholders who reviewed it strongly endorsed the capability model that SMS developed to prioritise projects in terms of the extent to which they would improve the overall capability of Defence's system. Senior management has requested that the model be used as part of the evaluation of all future system minor projects.

A key success factor in this project is the very high level of stakeholder engagement and support SMS has generated and maintained.

The second phase of the project is currently under way (SMS is preparing two separate but inter-dependent business cases for consideration by Cabinet). Concepts for the third and final phase of the project, which will fill all remaining capability gaps, are currently in development.