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Defence Industry Minister Melissa Price has announced the $193 million upgrade of defence infrastructure at Point Wilson, Victoria, as part of the Point Wilson Waterside Infrastructure Remediation (PWWIR) Project.
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Minister Price and senator for Victoria Sarah Henderson announced that a $193 million contract had been awarded to CPB Contractors for remediation of waterside infrastructure at Defence’s Explosive Ordnance site.
The objective of the PWWIR project is to remediate the Point Wilson Explosives Area (PWEA) waterside infrastructure in order to enable the recommencement of bulk EO importation operations at the PWEA.
The structure is at the end of its service life and requires an upgrade to improve the safety of operations and functionality. The proposed works include:
- A new wharf and link structure;
- Refurbished jetty piles and new jetty deck;
- Refurbished and new mooring and berthing infrastructure; and
- Upgrade and replacement of the support infrastructure involving electrical, communications, hydraulics and fire services.
Minister Price added, "The broad scope of the project includes remediation of a 2.4 kilometre-long jetty and reconstruction of the wharf. CPB Contractors will act as Defence’s managing contractor and deliver the works through the engagement of sub-contractors."
The PWWIR project has multiple benefits for both defence and local industry, including:
- Returning PWEA to operational status will contribute to a broad range of Australian Defence Force capabilities;
- PWEA waterside infrastructure is at the end of its service life. The project works are expected to extend the service life of the facility to 2055; and
- The project will generate employment in the region and will provide the opportunity to supply goods and services.
Under the government’s Defence Policy for Industry Participation, CPB has developed a Local Industry Capability Plan that will maximise opportunities for local involvement.
Henderson said that meant the project, which is being fully-funded by the Morrison government, would primarily benefit the local community.
"There will be opportunities for local business, with around 200 workers anticipated to be directly employed by the project over the construction period of two years. It is also great to see that CPB Contractors has committed to maximising opportunities for local industry including suppliers and the construction workforce alike," she explained.
The 2019 Defence Policy for Industry Participation will provide more opportunity for Australian companies to compete for work with Defence and represents the next step in the Australian government’s multi-faceted defence industry policy agenda.
The policy builds on the Australian Industry Capability Program and Local Industry Capability Plan. The policy introduces a new requirement on tenderers to address Australian industry involvement for all Defence materiel and non-materiel procurements above $4 million, and for the procurement of construction services above $7.5 million.
To meet the new requirements of the policy, successful tenderers will need to provide detailed commitments on how they will utilise and develop Australian industry. These commitments will become contracted deliverables and successful tenders will be required to report on their performance against them.
The policy provides a more consistent approach to the consideration of Australian industry at the national and local levels across Defence procurement. This will assist in addressing the requirements to consider the broader economic benefits of such procurements under the Commonwealth Procurement Rules.
Defence will apply the requirements of the policy through a staged implementation process over 2019 to both new projects and new phases of existing projects. This will provide industry with time to become familiar with, and prepare for, the new requirements – further information about the Defence Policy for Industry Participation is available here.
Stephen Kuper
Steve has an extensive career across government, defence industry and advocacy, having previously worked for cabinet ministers at both Federal and State levels.
