Collins Submarine Fleet – Commercial Model Implementation

designing a commercial model to be phased in over time, transitioning from a cost plus environment to a commercial model which incentivised both cost and operational performance;

transitioning to more commercially realistic profit targets;

implementing a more equitable model to share the cost and gains for financial performance against Targeted Cost budgets;

having profit subject to Operational KPIs; and

provide a more robust and better defined cost guidance framework.

vastly improved Fleet maintenance performance with a greater focus on Navy requirements, including Fleet Availability;

a more focused approach to financial efficiency;

a clear and comprehensive framework for measuring, managing and improving contractual performance;

financial consequences and performance incentives to motivate behaviours conducive to meeting the Collins Fleet required outcomes; and

an end state five years after implementation where the Collins Fleet was measuring up to and exceeding international benchmarks.