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CAPABILITY STATEMENTCOMPLETE MARITIME SUSTAINMENT SOLUTIONS FOR OUR CUSTOMERS’ CRITICAL ASSETS

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Naval Ship Management (Australia) Pty Ltd (NSM) is a leading provider of complete maritime sustainment solutions. Utilising a team of highly skilled professionals strategically located across Australia in conjunction with a robust, agile and scalable international supply chain, we provide cost-effective, responsive and customer-focused solutions that optimise the availability and capability of our customers’ critical assets.

Established in 2012 as a Joint Venture between Babcock and UGL Pty Limited, NSM provides an extensive range of services in support of the ANZAC Class and associated system support facilities, initially through the ANZAC Class Group Maintenance Contract and more recently as a member of the Warship Asset Maintenance Agreement in conjunction with our alliance partners the Commonwealth of Australia, BAE Systems and SAAB.

Services provided by NSM include:

• Engineering Support Services

• Maintenance Support Services

• Ship Repair, Refit and Refurbishment

• Supply Chain Management

• Procurement and Logistics

Headquartered in the Australian Marine Complex, Henderson, Western Australia with a national footprint and a highly responsive international supply chain, NSM is ideally placed to support our customers’ critical assets wherever the need may arise. Furthermore, our dedicated 24/7 urgent defect response cell enables us to react at

extremely short notice to emergent requirements at naval and ship repair facilities throughout Australia and internationally.

Through the utilisation of our supply chain, NSM operates an extremely portable Thin Prime model that can be readily deployed to support additional maritime assets. This means that NSM retains a lean but effective program and project management organisation that does not incur the costs of unnecessary overheads or latent capability associated with a resident blue collar workforce. Supported by our scalable and diverse supply chain NSM can quickly adapt to suit changes in the volume, location and scope of work to be performed.

Our Thin Prime model offers a successful alternate to the traditional Prime and provides an agility and low overhead base that traditional Primes find hard to match. Some benefits of our Thin Prime model include:

• Lean and cost-effective

• Scalable in terms of capability, capacityand geography

• Flexible in terms of the meeting emergingclient needs

• Engages a diverse supply chain that supportsa range of industries and is not dependant onlyon maritime or defence spending, which in turnencourages the cross pollination of industrybest practice into maritime sustainment

• Supports development and enhancement of asovereign maritime sustainment capability

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ENGINEERING SUPPORT SERVICES

NSM has progressively developed its engineering capabilities over time to provide a range of value add services to our customers that leverages the problem-solving expertise of our in-house engineers and a broad range of specialist skills accessible to us via our supply chain.

We recognise that an absolute focus on data integrity and configuration management is integral to providing the necessary assurance to our customers that the right maintenance tasks are being undertaken at the right times. The risks and costs associated with over maintaining or under maintaining are w ell understood. We work diligently with a range of stakeholders to optimise the frequency of maintenance in addition to identifying innovative techniques and technologies that can improve the process and methodologies used to execute maintenance.

Experience and data gathered over a number of years has also enabled us to undertake a range of life cycle cost modelling exercises and provide important contributions to broader studies that assess the impact of extending the life of our customers’ assets.

OUR CAPABILITIES

To enable the delivery of our Engineering Support Services, we have advanced capabilities in:

• Configuration management

• Technical data management and remediation

• Maintenance engineering

• Life-cycle cost analysis

• Life of type extension studies

• Classification society coordination

NSM HAS PROGRESSIVELY

DEVELOPED ITS ENGINEERING

CAPABILITIES OVER TIME TO PROVIDE A

RANGE OF VALUE ADD SERVICES TO OUR

CUSTOMER

CASE STUDY 01CAPABILITIES STATEMENT

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CASE STUDY 01CAPABILITIES STATEMENT

MAINTENANCE SUPPORT SERVICES

NSM’s maintenance philosophy focuses on lowering costs, reducing operational risk and improving asset reliability and safety.

In conjunction with our customers NSM can implement maintenance programs and develop performance targets, health indicators and bespoke reporting suites that meet specific requirements, such as the Naval Technical Regulatory Framework, whilst also providing for high levels of assurance.

Our ability to accurately determine and plan maintenance requirements over the short, medium and long-term coupled with a range of innovative estimation techniques provides our customers with clarity of future expenditure profiles. Working collaboratively with our customers we are then able to develop strategies supported by risk based analysis that provide options to optimise asset availability and capability within any given budget constraints.

With extensive experience in the development of work instructions NSM has a proven track record in reducing the cost of maintenance and improving data integrity through the provision of standardised and easy to use documentation.

OUR CAPABILITIES

To enable the delivery of our Maintenance Support Services, we have advanced capabilities in:

• Maintenance requirements analysis

• Condition based monitoring

• Maintenance performance reporting and modelling

• Maintenance planning

• Work instruction authoring

• Scheduling

• Estimating

SHIP REPAIR, REFIT AND REFURBISHMENT

NSM’s agility, proven systems and extensive project and risk management expertise enables us to consistently deliver ships out of complex maintenance periods that meet or exceed our customers’ quality, schedule and cost expectations without compromising safety.

Key to this success is the ability to work collaboratively with our customers to identity windows of opportunity to undertake non-invasive maintenance and survey tasks that de-risk and inform subsequent maintenance periods.

Whilst NSM can provide a full turn-key solution including provision of all trade types to undertake preventative maintenance, corrective maintenance, engineering change and habitability tasks we are also a skilled integrator of works undertaken by our customers and their suppliers.

We understand that maximising the availability of our customers’ assets is critically important. With our centralised 24/7 urgent defect response cell and extensive international supply chain we quickly and efficiently respond to emerging issues, regardless of location, ensuring that ships are returned to service as soon as is practicable.

OUR CAPABILITIES

To enable the delivery of our Ship Repair, Refit and Refurbishment Services, we have advanced capabilities in:

• Project delivery and implementation

• Project systems controls and governance

• Original Equipment Manufacturer (OEM) and contractor management

• Integration of 3rd party concurrent works as required by customer

• In-water and dry-dock maintenance

• Engineering change embodiment

• Test and trials coordination

• Urgent defect response

• Comprehensive range of trade disciplines

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PROCUREMENT AND LOGISTICS

With extensive expertise in inventory management, logistics and warehousing, NSM provides innovative solutions that seamlessly integrate with the existing infrastructure, systems and processes of our customers providing optimal cost outcomes whilst ensuring availability of spare parts.

NSM has access to facilities strategically located across Australia close to key maritime sustainment hubs that provide rapid support to our customers and ultimately maximise the availability of equipment, systems and ships. Supply performance is measured, analysed and periodically benchmarked as part of our continuous improvement program to ensure customer service is optimised.

We develop logistics strategies specific to the needs of our customers, taking cognisance of slow and fast moving stock items, minimising inventory holdings and maximising just in time delivery. Our extensive supply chain, which includes a range of Original Equipment Manufacturers (OEMs), provides a multi-disciplinary overhaul and repair capability and delivers further synergies when aligned with ship repair activities.

NSM provides a full asset management approach to our customers’ support and test equipment, which includes the ongoing management of maintenance and calibration for items as required, from initial purchase/issue through to end of life disposal and replacement.

Whether procuring items directly or via our customers’ existing supply chain NSM ensures that interfaces and information exchange between Enterprise Resource Planning (ERP) systems provide full visibility of stock holdings to our customers.

OUR CAPABILITIES

To enable the delivery of our Procurement and Logistics Services, we have advanced capabilities in:

• Receipt and staging

• Warehousing

• Logistics

• Disposal

• Rotable management

• Inventory investment planning

• Codification

• Procurement

• Materials planning

• Obsolescence management

SUPPLY CHAIN MANAGEMENT

NSM’s Thin Prime model complements our in-house expertise with an established scalable, responsive and diverse international supply chain comprising over 250 suppliers. Collectively this model provides us with the agility and resilience to cost-effectively meet our customers’ requirements regardless of location, whilst achieving extremely high levels of Australian Industry Content.

Facilitating a robust sovereign maritime sustainment capability, NSM develops long-term contractual relationships with our supply chain partners. This provides our suppliers with assurance, stability and an environment that encourages investment in training, systems, equipment and facilities, all of which actively contribute to improved outcomes for industry and our customers.

These long-term contracts implemented by NSM are typically performance based and tailored to utilise metrics that support delivery of our customers’ objectives. Furthermore, this enables us to benchmark supplier performance across a large section of industry and focus on specific areas of opportunity for improvement.

More generally our supply chain receives ongoing development through the Supplier Continuous Improvement Program (SCIP), designed to accelerate the competitiveness of industry by raising performance of suppliers and focusing on embedding best practice leadership and a continuous improvement culture. Current SCIP participants embedded within NSM’s supply chain represent >30% of our supplier expenditure and this continues to grow.

NSM views the Royal Australian Navy (RAN) Fleet Support Unit (FSU) as a key member of our supply chain. In accordance with the FSU capability statement, NSM develops FSU work packages and assists FSU in delivering those packages with exposure to innovative best industry practices. This approach enhances the capability of FSU over the longer term and benefits the RAN with reduced maintenance costs.

OUR CAPABILITIES

To enable the delivery of our Supply Chain Management Services, we have advanced capabilities in:

• Strategic procurement

• Supply chain optimisation

• Performance based contracting

• Supply chain improvement programs

• Royal Australian Navy (RAN) Fleet Support Unit (FSU) integration

• Maximising Australian Industry Content

• Enhancing indigenous participation

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MAINTENANCE SUPPORT SERVICES

Our highest priority is to ensure the safety of our employees and those of our customers, our suppliers and our enterprise partners. In what is a complex environment with significant inherent risk we have a Safety First culture that permeates the entire organisation as we exhaustively strive towards our goal of Zero Harm.

Everyone is empowered to stop work if they observe hazards or unsafe working practices. Our wider team responds immediately to these situations, ensuring efficient rectification and return to work. Pro-active review of high risk activities such as confined space entry and working at height, has enabled NSM to implement leading safety procedures, minimising the occurrence of Health, Safety and Environmental events.

OUR CERTIFICATIONS

NSM’s Business Management System is certified by SAI Global for “the provision of sustainment services for maritime vessels” as follows:

• Quality Management System ISO 9001:2015;

• Work Health and Safety Management System AS/NZS 4801:2001; and

• Environmental Management System ISO 14001:2015.

OUR HIGHEST PRIORITY IS TO ENSURE THE SAFETY OF OUR EMPLOYEES AND THOSE OF OUR CUSTOMERS, OUR SUPPLIERS AND OUR ENTERPRISE PARTNERS.

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27 Quill Way, Henderson, WA 6167

Phone: +61 8 9219 5015

E-mail: nsminfo@nsm-aust.com.au

www.nsm-aust.com.au

CONTACTS

Joe Smith General Manager joseph.smith@nsm-aust.com.au +61 467 765 878

Gavin Stewart Head of Operations and HSE gavin.stewart@nsm-aust.com.au +61 439 814 509

Brett Peek Supply Chain Manager brett.peek@nsm-aust.com.au +61 466 478 080