Reports and Publications

• Defence Long-Term Development Plan (LTDP)
  • Contents
  • Preface by the Minister of Defence
  • Introduction
  • The Long-Term Development Plan and Defence Policy
  • Funding
  • Managing the LTDP
  • Projects Approved and in Acquisition Phase
  • Projects Approved in Principle by Government
  • Projects Critical to Avoid the Failure of Policy
  • Projects Essential to Avoid the Failure of Policy
  • Projects Necessary to Avoid the Failure of Policy
  • Projects that have Benefit but are Less Critical to Achieving Policy Objectives
  • Projects Previously on the LTDP and Moved to the Defence Capital Programme - Minors

Within this section

• Updating the LTDP
• Capability Management Framework
• Defence Sustainability Initiative

Defence Long-Term Development Plan (LTDP)
(October 2006 Update)

Contents | Previous | Next

4. Managing the LTDP

1. Several processes have been developed to ensure that the LTDP will be a core decision-making tool for the Government.

Updating the LTDP

2. It is important that the LTDP is updated regularly to provide the best information possible to inform decisions on defence acquisitions and the budget cycle. The following processes will, therefore, be a feature of managing the LTDP:
   1. An updated LTDP and accompanying report from officials will be submitted to Ministers to inform their considerations during the strategic phase of the budget process.
   2. The LTDP will be treated as a dynamic, evolutionary document and updated on a regular basis as warranted by the availability of new and more accurate information.
   3. The LTDP will be updated whenever there is a significant change in the Government's financial circumstances, a change in policy, or to support the financial impact of NZDF asset revaluations.
   4. An updated LTDP will be made available whenever acquisition proposals are submitted for government consideration and approval. This will permit Ministers to consider each project within the overall context of total planned acquisitions and with a clear view of priorities, risks and trade-offs.
3. It is also important that Ministers have confidence that projects are well managed and that acquisition activity is consistent with the LTDP and government direction. This is achieved by the use of the following processes by the Ministry of Defence and the NZDF:
   1. Government approval is sought to proceed with acquisition activity for each project.
   2. The Minister of Defence is consulted before commencing major project definition studies.
   3. The Minister of Defence is consulted before documentation being made available to commercial suppliers.
   4. The Minister of Defence is advised of the outcome of the evaluation of the responses from commercial suppliers.
   5. The Minister of Defence is consulted before documentation is made available to short-listed suppliers, and on the criteria to be used for evaluating the responses.
   6. The Minister of Defence is advised of the outcome of the tender evaluation, including an analysis of the ability of the equipment to be acquired to meet the capability, and on contract negotiations with the preferred supplier(s).
   7. On completion of the contract negotiations, Ministerial approval is sought to enter into contract with the preferred supplier(s) and for the appropriation of funds.

Capability Management Framework

4. Defence has developed a Capability Management Framework setting out governance arrangements and procedures to provide a robust and sustainable basis for the NZDF and the Ministry of Defence to progress capability development and implementation. The Framework ensures that the projects on the LTDP are defined, costed and presented to Ministers in a timely manner. The Framework also allows HQ NZDF, single Services, and the Ministry of Defence to plan for, and allocate appropriate resources to, those projects that have a higher priority on the LTDP.

Defence Sustainability Initiative

5. In December 2003 the Government initiated a review to identify both current and optimum configuration and resource requirements for the defence organisation to undertake the roles and tasks set out in the Government's statements of defence policy and in the LTDP. The resulting Defence Capability and Resourcing Review was presented to Ministers in February 2005. It confirmed that operational and organisational capabilities in a number of areas of the NZDF and Ministry of Defence were below what is required by government policy. This led to the May 2005 Defence Sustainability Initiative (DSI). This policy statement outlined a major remedial programme and a firm commitment of increased resources over the next 10 years to achieve long-term sustainability for Defence. It saw additional funding being provided (excluding GST) of $4.6 billion (operating) and $209 million (capital) over the next 10 years.

Top | Previous | Next