Naval Shipyard Expansion Project (SA)

Developing Australia’s ship building capability

Our client is a Federal Government Business Enterprise, established to support the Commonwealth’s continuous naval shipbuilding program by being the owner, developer and manager of infrastructure and related facilities. They are also tasked with providing access and efficiently and effectively managing the infrastructure to ensure an integrated and coordinated approach to delivery of all aspects of the shipbuilding program.

Our client is currently charged with delivery of a major infrastructure expansion program at its South Australian Osborne shipyard to support future strategic naval shipbuilding activities for Defence. This multi-billion-dollar expansion program is highly complex, comprising delivery of special purpose buildings, shipbuilding facilities, maritime structures, testing and commissioning complexes and secure areas.

Our role

MBB was engaged to develop a Delivery Strategy for the expansion program – conducting strategic development, benchmarking and development of range of options for the packaging, procurement, commercial and contract models.

Our services

MBB conducted a strategic review and assessment to support a unique program that is novel to the Australian infrastructure delivery environment. The engagement was successfully completed under time pressure, and to the satisfaction of a range of Government, GBE and Defence stakeholders.

Successful project achievements include:

• Facilitation of client workshops to test delivery model concepts and confirm requirements
• Development of a market engagement approach and supporting materials to test delivery model concepts with key industry players
• Engagement with the industry through a market sounding process to gather feedback on the model, identify areas for refinement and analyse feedback for market outcomes report
• Development of agreed commercial principles and preliminary risk allocation to guide the progression of the program
• Agreement on a bespoke commercial delivery model, supported by extensive benchmarks from local and international case studies
• Assessment of the Australian infrastructure market, workforce and supply chain capacity to inform future market engagement.

Our approach also included:

• Baselining program requirements, constraints and prioritization of drivers
• Co-developing commercial principles, likely risk allocations and high-level program
• Developing commercial and contract models options
• Developing scope packaging and procurement approaches
• Benchmarking the options against worldwide best-practice and agreed assessment criteria
• Identifying an optimal pathway to progress the delivery of the program.

MBB has since been retained to further assist with implementing the Delivery Strategy through the procurement phase of this ambitious program.