DyerNeed has worked with a large Australian Government agency to develop the relevant material and information to enable the Australian Government to approve a significant sum of money to acquire advanced technology.

The acquisition focuses on the long-term assembly and delivery of a reasonable quantity of this advanced technology. Included in the acquisition is an upgrade of facilities to gather the components and assemble the final product.

DyerNeed’s work included developing an execution strategy and an appropriate cost model to show not only feasibility but achievability and affordability. This work identified the value for money aspects as well as the strategic risks related to the ultimate delivery of an important capability.

In doing the work, DyerNeed faced considerable challenges in ensuring that value for money was clearly demonstrated.

• This technology, developed in Australia, is also to be produced for an international partner; resulting in variables in the cost of production based on quantity. This aspect was cooperatively addressed by assuming a total minimum order quantity which was to be shared by Australia and the international partner.
• Demonstrations of achievability and affordability took into account in-year phasings driven by Portfolio budgets. DyerNeed addressed this concern by identifying a way of presenting financial data related to the known elements to be acquired.
• Costs were influenced by the outcomes of a research phase that had not yet been completed and low rates of initial production. DyerNeed addressed this by using historical data to understand the potential manufacturing learning curve and applying this to the future cost per item.
• The upgraded facility was not only to be upgraded to meet changed safety and security standards, but was also to be relocated to a more suitable location. Cost of transport and location of a future workforce were the key considerations for re-location; the current facilities were also aged and did not meet modern workplace health and safety standards. DyerNeed, collaboratively with the Project Team, worked with the infrastructure organisation to dovetail any construction activities and costs into the execution strategy.

In supporting the project approval and initiation work, DyerNeed had to consider the business outcomes and effects over a significant period of time (initial delivery not expected for at least five years) to ensure that plans to acquire technology today will meet the needs of the next few decades.