NZ Anzac Ship PSU Project Review
New Zealand Ministry of Defence
The New Zealand Secretary of Defence commissioned Cica Group to undertake a review of the Platform Systems Upgrade (PSU) Phase II on HMNZS Te Kaha in October 2013 and provide recommendations for remedial and future action to ensure completion of Te Kaha to a revised budget and schedule. As a result the upgrade to the second ship HMNZS Te Mana was achieved on budget and schedule.
The New Zealand Ministry of Defence contracted Babcock NZ and several major OEMs to undertake an extensive upgrade of the two Royal New Zealand Navy Anzac Ships HMNZS Te Kaha and HMNZS Te Mana. Phase II of the upgrade involved the updating and replacement of the Integrated Platform Systems (IPMS) and Heating, Venting and Air Conditioning (HVAC systems) on both ships.
The upgrade program for both vessels consisted of two phases. Of those two phases, Phase II was the most complex and difficult due to the extensive nature of the physical modifications which required intrusion into all sections of both ships. The Ministry recognised there were significant time, schedule and budgetary problems while working through the first ship, HMNZS Te Kaha, in phase II and understood there was to be sharp scrutiny from RNZN and Government regarding budget blow outs and unavailability of the vessel for planned RNZN deployments.
The terms of reference were to:
- Examine the issues that had arisen leading to the current project status.
- Assess whether governance, management oversight and project management of the PSU Project has been sound.
- Assess the degree to which contributing factors had contributed to current project difficulties.
- Summarise lessons learnt which could then be applied to successful completion of the project.
- Advise the Secretary of Defence and Chief of Defence and make recommendations on identified policy and governance issues to be addressed.
Cica Group produced a report following interviews with 37 stakeholders throughout the NZ Defence Force, NZ Ministry of Defence, Babcock NZ and several major OEM contractors and an extensive review of over 20 major documents pertinent to the project.
In accordance with the terms of reference, the report contained 52 recommendations for remedial and future action to ensure completion of HMNZS Te Kaha to a revised budget and schedule.
Additionally, the report recommended that senior stakeholders act on certain governance issues. A total of 51 of the 52 recommendations were accepted, and as a result the upgrade to the second ship HMNZS Te Mana was achieved on budget and schedule.