FY2006/07 to FY2008/09 - Department of Defence

chapter 8Type of ExerciseInterop EAST. Visits to and exercises with African naviesInterop WEST. Visits to and exercises with African naviesChile International Exhibition. Participate in exhibitionInterop NORTH. Visits to and exercises with African naviesFY 2006/07Sep/OctMay/JunNov-Note: Does not include formal and informal work-up and continuation training.Table 8.4Maritime Defence Programme - Planned Exercises (Service Unique) (continued)RISKS AND MITIGATING ACTIONSA number of risks and managerial challenges have beenidentified by the SA Navy as having the potential toinfluence negatively its ability to achieve the statedobjective of defending and protecting the RSA by maintainingand providing prepared and supported maritimecombat forces, services and facilities. Risk mitigationand management intervention plans have, however,been developed in order to reduce the possibility ofthese risks becoming untenable.The most important output risk being managed withinthe short to medium term is the lack of sufficientresources to meet all requirements. This risk manifestsitself mainly in the areas of the continued ability to conductthe required and contracted qualification trials inorder to accept the special strategic defence packagesinto service, the ability to meet the life cycle costs of thenew equipment and the ability to establish/adapt theinfrastructure to support the new equipment.Additional funds have been allocated by NationalTreasury as part of the mitagation actions. Actions havebeen initiated for more effectiveness, efficiency, and costeffectiveness, by establishing capabilities in industrythrough technology transfer programmes, facilityupgrade/build programmes, maintaining a minimumcore conventional capability, downsizing the force structureto a level where it is both affordable and sustainableand disposal of redundant/obsolete equipment. The SANavy is further committed to maintaining personnelrelated expenditure at 60% of its allocation.A further risk is the availability and development of thepersonnel needed to support the new equipment. Thisrisk is mitigated by firstly downscaling existing capabilitiesto release personnel, and secondly, a large numberof personnel have been sent overseas for training. Theintroduction of the Military Skills Development ServiceSystem into the SA Navy has also contributed to a rejuvenatedand young human resources component whichwill be used to further negate the risk.SERVICES TO BE SCALED DOWNSUSPENDED OR ABOLISHEDSubprogrammeReduction in OutputReason for Scaling Down/Suspension of ServiceShortfall/Savings(R'000s)ImplicationsMaritimelogisticscapabilityClosure of ArmamentDepot Durban (Serviceto be provided in Simon'sTown)Reduction in costs and improvedefficiency through consolidationand concentration offacilities in Simon's Town0(Transferred)It is planned that thefacility will only be closedat the end of FY2006/07Maritimetraining (HRsupport)capabilityInvestigations launchedito DOD PlanningInstruction 07/02 re rationalisationof SA Navytraining unitsIncreasing efficiency, effectivenessand economy throughproposed reductions andadjustments to DOD forcestructure0(Transferred)Savings will only beeffected once the newfacilities are handed overto the SA Navy - scheduledfor FY2008/09Table 8.5Services / Outputs to be Scaled Down or Suspended66D E P A R T M E N T O F D E F E N C E