Project Single LEAP – a public–private partnership

On 8 June 2011, the Commonwealth engaged a strategic partner for the provision of 3,015 single member's accommodation units at 14 Defence bases across mainland Australia. AGS acted as probity adviser to the Department of Defence in Phase 2 of Project Single LEAP (Living Environment and Accommodation Precinct), the Commonwealth's third and largest public–private partnership project.

Under the approximately $4 billion contract, the strategic partner, Plenary Living (LEAP 2) Pty Ltd will be responsible, under PPP arrangements, for the planning, financing, development and construction of the accommodation facilities and their maintenance and operation over 30 years. Construction cost is approximately $1 billion, with the ongoing provision of services costing approximately $3 billion. Single LEAP Phase 2, which is designed to improve the standard of accommodation by providing single bedroom units for personnel required to live in, is anticipated to deliver occupation of the accommodation commencing progressively in 2012–13.

An AGS team led by Paul Lang, assisted by Kate Brophy and other members of the AGS Canberra and Melbourne Commercial teams provided probity advice to the Department of Defence through the development and conduct of the tender process for the selection of a strategic partner and the contract negotiations.

Joint Defence Facility Pine Gap

AGS helped the Department of Defence with the conduct of the tender process and contracting for the supply of natural gas to the Joint Defence Facility Pine Gap (JDFPG). The natural gas supply will fuel generators that provide power requirements at the facility. A reliable supply of natural gas is important for the future cost-effective and environmentally efficient operation of the JFDPG.

In March 2011 the successful tenderer, Power and Water Corporation was contracted to build and operate a number of assets, including a gas pipeline from the Amadeus Gas Pipeline to JDFPG, to support the supply of natural gas. Construction of the pipeline is scheduled to commence in September 2011.

Paul Lang provided advice to Defence during the conduct of the tender process and subsequent contract negotiations. As the assets are to be built on both Crown land and Commonwealth land, Peter Jeffery, Peter Nicholas, Alexandra Hall and Leah Lyons advised Defence on legislative, regulatory and licensing approval requirements, including arrangements under an existing Indigenous Land Use Agreement covering the proposed pipeline route.

This is an extract from the 2010–11 AGS annual report