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Case Study:

Defence Fuel Network Transformation

The situation

The Department of Defence (Defence) was seeking to transform the management and supply of fuel and the operations and maintenance of the Defuel Fuel Network (DFN) through the establishment of an end-to-end Fuel Supply Contract (FSC) with strategic and collaborative transformation industry partner(s).

Kate Freebody

Our contribution

FreebodyCogent has been engaged since 2019 to provide expert, independent advice to the design and delivery of a multi layered procurement strategy to establish the required end-to-end FSC, including a 3-stage procurement process. Support has included:

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Design of an integrated price and payment and performance framework for the FSC;

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Development of Key Performance Indicators (KPIs) providing a transparent direct line of sight of performance of key elements such as Fuel Delivery and Quality, Asset Management, Performance of the DFN and Safety including appropriate financial risk and reward mechanisms;

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Design and delivery of analysis and cost modelling of expected future FSC costs including financial risks to support ongoing analysis and consideration of appropriate funding mechanisms; and

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Leadership of financial and performance evaluation, including provision of advice and recommendations to support value for money decisions.

The results

FreebodyCogent continues to support the Defence Fuel Transformation Project (DFTP) and drive overall value for money for Defence, at contract signature and throughout the life of the contract through:
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contract negotiations preparation and support;

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

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financial consequences and performance incentives to motivate behaviours conducive to meeting Defence’s required outcomes.

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