File Reference: Xxxx/Yyyy/Zz

File Reference:

PRELIMINARY DETAILED BUSINESS CASE

PROJECT NUMBER

PROJECT TITLE

LOCATION AND STATE

Project Sponsor:

Project Value: Option 1 short description $x.xxx million (price basis) P70

Option 2 short description $x.xxx million (price basis) P70

DGCFI Endorsement

This Preliminary Detailed Business Case provides details of the development of this project, costed at a P70 level of cost confidence, including a recommendation of the preferred option. I endorse this Business Case as suitable for seeking the approval of the Sponsor and FASI, and as the basis for seeking subsequent Government Second Pass approval.

Name

Director General Capital Facilities and Infrastructure

mmm yyyy

Sponsor Approval

This Preliminary Detailed Business Case satisfies the requirements for the facilities and infrastructure required to support AIR 6754 military capability. I approve this Preliminary Detailed Business Case as the basis for seeking Government Second Pass approval.

Name

Position

mmm yyyy

Finance Business Partner - Infrastructure Division

The estimated cost of the preferred option at $x.xxx million (cost basis P70 Cost Confidence) is within the current provision for this project in the Integrated Investment Program.

Name

Finance Business Partner – Infrastructure Division

mmm yyyy

Departmental Approval

This Preliminary Detailed Business Case was presented to the Gate Review for review and endorsement on dd mmm yyyy. I approve this Preliminary Detailed Business Case as the basis for seeking Government Second Pass approval.

Name

First Assistant Secretary Infrastructure

mmm yyyy

TABLE OF CONTENTS

TABLE OF CONTENTS 3

LIST OF Tables 5

Executive Summary 6

PRELIMINARY DETAILED BUSINESS CASE 7

Purpose 7

Project Aim and Description 7

Previous Government/Committee Considerations 7

Project Assumptions 8

Proposal Overview 8

Key Project Stakeholders 9

Requirement 9

Related Projects 10

Options to Meet Requirements 10

Issues and Risk Assessments 10

Siting Issues 11

Property Aspects 11

Environment and Heritage Considerations 11

Financial Aspects 11

Funding Source 11

Capital Infrastructure Costs 12

Program Funding Offsets (If Required) 15

Timeframe for Implementation 15

Comparison of Options 15

Development of the Preferred Option 16

Project Review Group 16

Recommendations 17

Annexes 18

Annex A 19

Development of Preferred Option 19

Annex I 20

Abbreviations and References 20

LIST OF Tables

Table 1 Key Project Milestones 5

Table 2 Scope Overview and Changes 7

Table 3 Key Project Stakeholders 8

Table 4 Requirements 8

Table 5 Siting Departures 9

Table 6 Project Budget (Net-Indexed and Out-turn) 11

Table 7 Proposed Budget Allocation 11

Table 8 Annual Net Operating Costs 2008/2009 (excluding GST) 12

Table 9 Annual Net Operating Costs 2008/2009 Prices (excluding GST) 12

Table 10 Key Milestone Dates 14

Table 11 Project Review Group Membership 15

Executive Summary

1.  The Executive Summary provides a summary of the key issues and outcomes of the Preliminary Detailed Business Case, such as:

a.  significant changes to the project since the Initial Business Case (IBC) was considered by the Gate Review;

b.  significant decisions or approvals relating to the project;

c.  the Requirement/Proposal, including the options;

d.  any assumptions to which the Requirement/Proposal is dependant;

e.  the options for delivery of the Requirement/Proposal, including relevant timings and costs for each delivery option;

f.  Key Project Milestone summary, in the below table format if appropriate;

Table 1 Key Project Milestones

2.  List of PDBC Recommendations.

[TAILOR AS APPROPRIATE]

Note: Each component will appear within a numbered paragraph.

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PRELIMINARY DETAILED BUSINESS CASE

Purpose

1.  The purpose of this Preliminary Detailed Business Case is to present the financial analysis of the facilities options to be developed as agreed at First Stage Approval. The Preliminary Detailed Business Case includes the functional requirements, preliminary designs, risk analysis, program, cost plan and whole-of-life costs.

2.  The Preliminary Detailed Business Case will inform Departmental delegate approval and Second Stage Project approval.

Project Aim and Description

3.  This section should introduce the Initial Business Case (IBC) outcomes and the Project Development and Delivery Plan (PDDP) and identify the primary aims of the PDBC.

4.  The user requirement from the IBC should be refined to enable the scope of the PDBC to be clearly identified and costed at a P70 probabilistic cost confidence.

5.  Describe any background issues that are relevant to this proposal including priority or timing requirements. This section should also provide a context in which to base the business case.

6.  Identify any other factors, which may have an impact on this proposal such as the age of the facility or capability requirements.

7.  List the key Project Milestones such as In-Service date requirements, initial and final operating date requirements. As IOC and FOC are defined by the capability project, and will comprise deliverables other than facilities, the facilities deliverable at IOC/FOC will need to be defined/explained.

Previous Government/Committee Considerations

8.  Describe any Government or Committee decision relating to this proposal to support the decision making process.

9.  Identify and describe any background issues from the endorsed IBC, which are relevant to this proposal. This should include any previous recommendations.

Project Assumptions

10.  Detail any assumptions made during the development of the PDBC. This may include assumptions such as:

·  Second Stage Approval dates

·  Government Approval dates

·  Parliamentary Approval dates

·  Construction commencement dates

·  Base population and estimated growth

Proposal Overview

11.  Summarise the project scope and provide a breakdown of identified scope requirements. Detail all functions to be performed, the movement of personnel, and new facilities and infrastructure that will be established.

12.  Detail the requirements that the IBC identified and any additional requirements identified during PDBC development.

13.  If appropriate provide the summary in table format. This section needs to include all that is being proposed by the PDBC.

14.  Provide reference to the detailed summary of the functions, recommended scope of works, construction budget and NPOC estimate for each project element to the relevant attached annex.

Table 2 Scope Overview and Changes

15.  Indicate the changes to the scope from the Gate Review endorsed IBC, in further detail if required.

16.  Reference the specific requirements and options that were considered for each of these scope elements to the applicable attached annex to the PDBC.

Key Project Stakeholders

17.  Identify all key stakeholders who were consulted in the development of the PDBC. This section should capture the involvement of the user and sponsor as well as any other stakeholder.

Table 3 Key Project Stakeholders

Requirement

18.  Detail the requirement in general terms (include only if this adds value). For example, you may wish to group the requirements against each element and categorise each requirement against the primary reason(s) behind the requirement. An example of this is provided below.

Table 4 Requirements

Related Projects

19.  Detail if this proposal and the requirements are linked to any other phase or project and how it is linked.

Options to Meet Requirements

Issues and Risk Assessments

20.  Using the risks identified in the IBC as a basis, identify and assess the identified risks that may affect the procurement and development activities of the PDBC process. Each significant risk identified should be detailed via subheadings. Mitigation strategies need to be detailed against each provided risk. Some examples of risk categories, include:

·  Project Timing (Schedule) Risk

·  Cost (Budget) Risk

·  Commercial / Market Risk

·  Construction Risk

·  Operational Risk

·  Environmental Risk

·  Heritage Risk

·  Plant/Equipment Lead Times

Siting Issues

21.  Detail any siting departures from those proposed in the IBC. Example table format provided below.

Table 5 Siting Departures

Property Aspects

22.  This section should identify all issues and risks relating to Property Aspects, such as:

·  Any land acquisition, property disposals or leasing requirements and any associated issues;

·  Government Furnished Facilities (GFF);

·  Native Title/Indigenous Land Use Agreement issues; and

·  Archaeological heritage issues.

Environment and Heritage Considerations

23.  This section should identify all issues relating to Environment and Heritage Aspects, including issues relating to:

·  The natural environment;

·  The physical environment;

·  Asbestos;

·  Site Contamination;

·  Social Environment;

·  Ecologically Sustainable Development; and

·  Heritage.

Financial Aspects

Funding Source

24.  The funding source for this project is the Integrated Investment Program.

25.  Detail any approved facilities funding including the date and position.

26.  Summarise the remaining project budget. Is the cost of the preferred option within the provision in the Integrated Investment Program? Include table to show both the IIP provision, the required cash flow, any difference in provision and/or cash flow. Provide a comment (endorsed by CFO Business Partner) indicating how IIP provision or cash flow will be addressed.

Table 6 Budget Allocation

Capital Infrastructure Costs

27.  The Net-Indexed and Out-turn Costs by project element are detailed as follows.

Table 6 Project Budget (Net-Indexed and Out-turn)

28.  Costs should include ICT costs. Provide a basis of estimate for these costs such as the number of additional phones, DRN and DSN to the new / refurbished facilities.

29.  The proposed budget allocation for Option 1 and Option 2 proposed in this PDBC is detailed below.

Table 7 Proposed Budget Allocation

30.  Detail the Net Personnel and Operating Costs for each option. See Example Table Below.

Table 8 Annual Net Operating Costs 2008/2009 (excluding GST)

31.  Phase the Net Personnel and Operating Costs for each option. Example table below.

Table 9 Annual Net Operating Costs 2008/2009 Prices (excluding GST)

NPOC estimates must be signed off by the Sponsor

Program Funding Offsets (If Required)

32.  Identification with the Sponsor of any Program funding offsets that may be required to enable delivery of the project. If an offset is required, identify recommended options, such as existing MCF projects that could be deferred or cancelled to make funding available. The sponsor may identify one of their own projects to be used as an offset and E&IG may develop funding options based on strategic priorities (offsets may be from any sponsor). Alternatively, the sponsor or E&IG may be able to identify funding from a different source. It is recommended that proposed funding offsets be discussed with DIFP for programming purposes 10 days before the PDBC is sent to Delegate.

Timeframe for Implementation

33.  Reference the timeframes identified within the IBC and include details of any slippages to the approved IBC timeframes.

34.  Re-cap the proposed delivery method (MC/HC etc). Detail any concurrent construction, if applicable. State the range (months) for construction completion of all works and the proposed start month and year for construction.

35.  Provide key milestone dates in table below, if appropriate.

Table 10 Key Milestone Dates

Note – Refer to the DEQMS Guidance on Scheduling Project Development and Delivery Phase however please note that this resource is guidance only and the complexity of the project will be as detailed in this serial and of which should define the timeframe.

Comparison of Options

36.  Detail the two options (or other number) proposed by the PDBC.

·  Option X

·  Option Y

37.  Confirm the Preferred Option and detail why this is the preferred option. Include all benefits.

38.  Short paragraph of Option 2 and any other options if applicable. State why this/these are not the preferred option.

Development of the Preferred Option

39.  Detail what key activities will follow the endorsement of the PDBC (e.g. Present to the Investment Committee, Second Pass approval, development of the DBC, referral to PWC, etc)

40.  Summarise the activities undertaken to date (i.e. what the development of options has included to date), such as reviews of existing plans, drawings, condition audits, geotechnical assessments, site surveys, etc.

41.  Summarise the user consultation undertaken, including any Value Management Workshops held.

42.  Detail any further development activities that will be undertaken upon approval of PDBC. Such as, planned stakeholder workshops/user consultation workshops, continuation of design development aspects as applicable for each project element, etc.

Project GOVERNANCE bOARD

43.  A Project Governance Board is to be established for this project in accordance with the Governance requirements described at http://intranet.defence.gov.au/estatemanagement/ under ‘Governance’ followed by ‘Project Governance Board’. The following membership of the Project Governance Board has been authorised by DGCFI for this project: