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New Zealand Defence Industry Awards of Excellence 2003

The Defence Industry Committee of New Zealand sponsors the New Zealand Defence Industry Awards on an annual basis. Nominations are called from the New Zealand Defence Force and other organisations with an interest in defence procurement.

For the 2003 Awards ten nominations were received, the following awards were presented.

Category A: New Zealand Defence Industry Awards of Excellence

The Category A awards are for major suppliers of goods or services to the New Zealand Defence Force or Ministry of Defence. This may include major sub-contractors or service suppliers.

Category A Winner

These two civil engineering companies formed a joint venture to tender for the reconstruction of the runway at RNZAF Base Ohakea. The project had significant civil engineering challenges including some uncertainties regarding the sub-strata of the existing runway. The project involved considerably more removal and refill than was anticipated and had a very tight time frame to minimise the impact on operational flying.

Potential additional costs became the focus of major cost reduction activities. The result was reuse of much of the excavated material. This reduced the environmental impact of disposal of large quantities of waste and reduced the quantities of material trucked out and in. It also enabled the cost and project timescales to be kept within original estimates. All parties associated with the project agreed that it was a technically excellent project characterised by an innovative approach and exceptionally good relationships between all involved.

Category A Highly Commended Certificates

Serco Project Engineering Ltd (SPEL) provides depot level warehousing and engineering services to the NZ Army under a contract, which has been in place now for over five years. SPEL has consistently provided excellent service to the Army, introducing innovation in a number of areas to solve problems and improve quality and productivity. As a direct result of continuous improvement the cost of providing these services to the Army has steadily reduced.

The relationship between the Army and SPEL is characterised as a partnership of co-operation and trust. The contract is maintained as the basis of the arrangement, but the aim of both parties is to ensure that the Army receives the service it wants and needs, at a fair price. SPEL has representation on a number of Army planning groups, and plays a key, and successful, role in operational planning, ensuring that the equipment needed for deployments is available as and when required, and is fully operational.

Creans are the sole food suppliers to the Royal New Zealand Navy, acting as providers of foodservices to the Devonport Naval Base and as provedores to the ships.

Creans have worked very effectively with the Navy to improve the processes involved in the supply of food, and have achieved significant cost savings, especially in terms of accounting processes. Creans have improved the delivery frequency, accuracy and general responsiveness of the service. They have also freely offered their own services, and made arrangements with their suppliers, to assist in training of Naval catering staff in their areas of expertise.

The key features of this contract have been 'responsiveness' and innovation. All naval needs have been met and Creans are now working with Navy to implement the NZDF electronic procurement process into the service they provide. This will result in further savings and efficiencies.

Category B: New Zealand Defence Recognition of Industry Excellence

This category recognises sub-contractors and lower level suppliers who provide excellent service in a variety of ways, but are difficult to assess against the major contractors.

Category B Winner

Covertex were contracted, against international competition, to construct an inflatable shelter for the use of RNZAF servicing crews in severe tropical environments. The overseas companies offered the product at a higher cost with up to four months' lead time, where Covertex completed the design and manufacture in four weeks. The product was larger than any known similar structure. Manufacture required identification of fabrics and adhesives capable of doing the job under particularly demanding conditions. It also required air conditioning to a level not previously used in such situations.

Covertex accepted considerable financial risk in carrying out this development, which in the final outcome performed extremely well. The one significant problem was dealt with expeditiously. The company regularly seeks feedback on performance of the shelters and continues to make improvements to the product in the field.

Category B Highly Commended Certificates

Ordnance Development (ODL) is a small company that provides blank ammunition to armed forces. The New Zealand Army is one of ODL's main customers.

The company has consistently served the NZDF well, providing innovative solutions to problems. ODL is consistently applying new developments to the benefit of the NZDF. The company goes out of its way to be responsive in supply and in the provision of technical advice. Whenever a new need or situation arises with any of ODL's customers, the results are shared, subject to IP ownership issues, with all customers. This allows the NZDF and overseas customers to receive the benefit of others' experience and problem solving at no cost. The Army carries out 'Service Performance Reviews' of all its major suppliers, and ODL consistently rates very highly in these reviews.

ODL is now working with the Army to jointly plan future ammunition procurement so that the production schedules can meet the needs of both army and ODL, generating both efficiencies and cost savings through this collaboration.

Motor Sport Apparel (MSA) is a sub-contractor to Yakka Apparel Solutions Ltd (Yakka), the New Zealand Defence Force's prime contractor for clothing. MSA's main products are webbing products, tentage and some protective clothing items.

Both the Army and Yakka speak very highly of the way the MSA conducts its business. MSA consistently provides an excellent, quality product on schedule. The company is very proud that it has 'never had an item returned as faulty.'

Yakka notes that Motor Sport Apparel is very responsive to research and development requests, and both Army and the local business community comment on the company's attitude to improvement. The products are for everyday applications of great importance to the individuals who use them. MSA encourages individual users to visit the factory and comment on the products. The outcome of this and the attitude of company management is a continuous flow of suggestions for improvement in product utility and economy. Although a second tier supplier, Motor Sport Apparel has succeeded in establishing strong communication with the ultimate users of its products and in responding to their feedback.

Award of Excellence Certificate

This recognises sub-contractors and suppliers who provide excellent service in a variety of ways, but don't meet the requirements of Catergory A and B. Awards are made on a 'as required basis'.

Stephen Parsons Travel was asked by the Army to provide a particular service to NZDF personnel to meet a gap in the NZDF's current supply arrangements. In short, the service required was to provide recreational travel for personnel and their families on leave whilst posted overseas.

Several other companies, when asked, were willing to provide a standard travel agent's service, but this company made exceptional efforts to understand the issues, and developed a means of dealing with them. The service included:

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