Case Study:

Royal Australian Navy’s Future Maritime Sustainment Model

The situation

Australia is embarking on the largest Naval acquisition program since World War 2, on average, one ship is planned for delivery each year for the foreseeable future and for the first time, Navy will have classes of vessels rolling off production lines, in operation, under maintenance and upgrades all at the same time – the result being a naval capability regeneration that hasn’t been experienced since WWII. The fleet will be significantly heavier and more complex than ever before.

To ensure that this significantly larger and more complex fleet will be available where and when needed, a new approach to maritime sustainment was required; specifically one that evolved beyond a class-based philosophy and enables a broadening and strengthening of Defence industry’s sustainment capabilities.

Matt Price

Our contribution

FreebodyCogent played a strategic role in the development of standardised commercial models that would underpin Future Maritime Sustainment Model and contracts.

Our efforts enabled a cohesive approach to financial management across the sustainment capability lifecycle that simultaneously supported the achievement of differing strategic outcomes across Designer Support Services, Asset Management and Capability Stewardship and Maintenance. Specifically, we developed and defined three separate but interconnected financial models and sets of contractual requirements that will deliver consistency, better transparency and ensure Navy becomes a more informed owner, enabling better decisions to drive down the cost of ownership.

The results

The development of common financial models and contractual requirements will enable a never been seen before level of insight on contract spend, commercial risk and technical efficiency that will:
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 better ensure value for money assessments and decision making;

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generate opportunities for contract specific improvement over time; and

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provide a level of intelligence to support best for fleet and best for Defence decisions.

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