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Engagement |
We have been engaged by the Department of Defence on many occasions to conduct business case analysis, involving strategic planning and complex financial modelling.
Recently, we undertook the following for the Department:
+ Provided strategic and risk advice on the management of facilities for the whole of Defence $52 billion infrastructure estate.
+ Developed a forecasting model for Defence which enable the Department to better define the Defence Estate unfunded liability as part of their
White Paper Process.
+ Developed financial models that reflect the cost and synergy impacts of the Defence strategic rationalisation program, this involved the
consolidation and migration of over 18 Defence bases.
+ Developed a risk management tool to assist Defence in managing the risk involved in the maintenance of the whole Defence Infrastructure
Estate assets. |
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Challenges |
The Department holds approximately $52 billion of infrastructure assets across 400 locations.
On all of our engagements with the Department, we were required to manage information relating to unique assets, stored in non-uniform database systems. |
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Approach |
Through continuous consultation with the Department key stakeholders in the infrastructure division, we successfully developed financial models that would allow the Department to analyse and estimate the following:
+ Funding requirements;
+ Unfunded liabilities;
+ Quantum of cost-savings; and
+ Value-add from synergies |
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Outcomes |
The forecasting and risk management model is now being used as a tool to support strategic investment decisions in relation to force disposition, funding allocation and risk management.
The 30 models were used by the Department to identify those rationalisation options that would deliver the optimum value for money.
This risk management model allowed Defence to analyse the impact that various funding options would have on the Defence Infrastructure Estate. |
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