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Wednesday, 14 June 1989
Page: 4035
<ANSWER.TO.QWN>


Senator Richardson —At the 26-29 May 1989 Senate Committee of the Whole, nine questions were taken on notice. Answers are provided to eight of them. Question 164 concerns the operating costs of No. 34 Squadron and the new Falcon 900 aircraft. That answer will follow shortly. The eight answers are:

Question 157

DEPARTMENTAL CIRCULAR MEMORANDUM NO 60/89

Note: Departmental Circular Memoranda are of a permanent nature and remain in force until cancelled. They should be reviewed by the sponsor every 2 years and repromulgated only where a significant change of content is necessary.

13 JUNE 1989

DESINE CONTRACT-ACQUISITION GUIDELINES

INTRODUCTION

1. The Defence EDP Systems Integrated Network Environment (DESINE) provides a standard environment for hardware and software products with capacity for interoperation and distribution of data and processing within a proven and coherent network architecture. A full description of the DESINE environment is outlined in DCM 59/89. The Defence Information Systems strategy is to facilitate functional decentralisation of information systems services through the implementation of DESINE. IBM Australia Ltd is the prime contractor for the supply and support of hardware and software acquired from the DESINE contract for the five year period, 1989 to 1994, and will do so in conjunction with its subcontractors and to meet contracted Australian and New Zealand content provisions.

PURPOSE AND DISTRIBUTION

2. This Circular Memorandum (CM) states the procedures to be followed in the acquisition of equipment and services following the award of the DESINE contract and describes the scope of application of that contract. In due course this CM will be replaced by a Defence Instruction (General) and Departmental Instruction. Pending issue of this DI(G) and DI, this CM is to be distributed widely in the Department and Defence Force as the operative document.

SCOPE AND NATURE OF THE DESINE CONTRACT

3. Under the terms of the DESINE contract, IBM is contractually bound to supply to Defence, to provide early access by Defence to Open System Interconnection (OSI) developments and products through appropriate programs such as its Early Support Program and to make new technology and upgrades available to Defence. Also under the contract Defence has an obligation to purchase equipment and/or services from Schedule A to the contract if they are capable of satisfying the requirement fully or in part, unless an exemption has been granted. In this respect the DESINE contract differs from a period contract, which is a standing offer to supply, and a contract is not formed until an order is placed.

4. The benefits of the DESINE contract include:

a. the contracted availability of a range of proven hardware and software products needed to implement a proven network architecture, leading in turn to improved interoperability. This range of products has been evaluated as having the highest overall cost effectiveness available;

b. savings in training and other support costs;

c. increased contingency and back up potential;

d. the contracted availability of acceptable new technology and of products compatible with Defence OSI aims;

e. increased Australian/New Zealand (ANZ) industry participation;

f. a simplified procurement process for the supply of contracted products; and

g. availability of maintenance for 10 years after equipment delivery.

5. The overall benefits resulting from the contract will be cumulative to Defence. In this context the cost of individual equipments Defence is committed to procure from the contract may on occasion be higher than those of competitors, due to transient factors and ANZ content. Also, while the discount applied to some products from the contract may be low, this is balanced by others having a high discount thereby leading to a high cost effectiveness across the range of products.

6. The DESINE contract is the first source for procurement of new Defence computing requirements. Schedule A to the contract consists of two parts: The DESINE Standard Product List (DSPL) and its Addendum.

a. The DSPL is the main body of Schedule A to the contract and lists products which satisfy the environment.

b. The Addendum to the DSPL lists some additional products which may facilitate inter-working of existing systems with DESINE systems, along with additional products which may offer benefits to Defence. Items from the Addendum are available only for the individual purposes attributed in the Addendum.

The scope of the DESINE contract does not include hardware or software suitable specifically for embedded or specialist systems (see paragraph 17).

7. IBM is required to propose additional products to both the DSPL and its addendum, including technology updates. Following consultation with Departmental representatives, FASIS has authority to add or delete products on the basis of their cost, Australian/New Zealand industrial content, utility and acceptability to the DESINE environment.

8. Services are available for equipment installation and associated support services from the DESINE contract but overall project implementation is the responsibility of the Defence project manager.

9. IBM is responsible for:

a. the integration of all equipment supplied from Schedule A for the DESINE environment;

b. the provision of support services and maintenance for all equipment supplied from Schedule A;

c. ensuring that all equipment supplied from Schedule A meets specified functional and performance requirements; and

d. the project management and coordination of the supply and delivery of all equipment ordered from Schedule A including that from subcontractors.

Contract Administration

10. ISP Division is responsible for administration of the DESINE contract and for maintaining the DESINE network architecture. FASIS is the contract delegate, responsible to VCDF and DEPSEC (A&L). Annex A lists the delegate's responsibilities under the contract.

PROCEDURES-GENERAL

Project Approval

11. Sponsors of proposals are to obtain project approval by following standard Departmental procedures, including the use of the SPECTRUM project management package set up to facilitate such procedures, when appropriate.

Development of Functional Requirements

12. Functional requirements are to be developed before any acquisition approval is sought. The degree of documentation and the extent to which functional requirements are reflected in technical solutions or specifications will vary for different applications and expenditure levels. There is no provision under the DESINE contract for the contractor to develop functional requirements.

Establishment of Options

13. To convert the functional requirement into options which meet the project aims and objectives, the Departmental manager may use the following resources:

a. project staff;

b. ISP Division staff; or

c. external consultants.

14. In determining whether Schedule A hardware or software has the potential to satisfy the requirement, users should first consult with IBM, using:

a. representatives assigned by IBM to support Defence users; or

b. IBM's DESINE Project Office (DPO), which will be collocated with ISP Division.

Identifying Specific Equipment

15. Once tasked with advising on a solution to a functional requirement, IBM will present a proposed hardware and software list, allocate a project manager (if appropriate) and provide a quote and a timetable to Defence.

EXEMPTIONS

16. Under certain circumstances, it may not be appropriate to purchase hardware or software listed under Schedule A to the Contract. However such potential exemptions will need to be examined against Defence aims for its DESINE environment. This section describes the grounds for exemption and the process for seeking exemption.

Exemptions from the DESINE Contract

17. Acquisitions exempted from the DESINE contract include:

a. Embedded Systems. Meaning for these purposes, equipment in those systems which are integrated or qualified specially for use in a weapon or a weapon platform together with those systems (except general purpose computers not utilised in the weapon platform) used for their support and training. Embedded systems also include equipment which is integral and dedicated to manufacturing equipment and robotics applications.

b. Specialist Systems. Those where security, compatibility and interoperability considerations are paramount for systems used in cooperative manner with allied defence organisations or in accordance with international agreements.

c. Final Extensions, Minor Enhancements and Component Replacements for Existing Systems. Final extensions, procured under certificate of exemption and whereby IBM is advised; minor enhancements and component replacements for systems for which there is an endorsed and documented Migration Plan. Guidance on contract exemptions for existing systems is at Annex B. Advice of the approval of a final extension is to be forwarded to IBM, copy to FASIS, by the authority discharging this responsibility.

d. Unforeseen Urgent Operational Requirements. Unforeseen urgent operational requirements which cannot be satisfied in a timely fashion from the DESINE contract.

e. Unsuitable Contract Solutions. Solutions from the contract which are clearly unsuitable in terms of function, or time, or project cost where project cost includes all aspects of the introduction of the system, rather than just the equipment price, and is interpreted as described in paragraph 5.

f. Requirements not met by Schedule A of Contract. These include hardware and software which are not available under Schedule A to the contract. Note that applications software development and project integration are not available under the contract.

Procedures for Exemptions

18. Authorisations to assess applications for exemptions from the contract will be established by VCDF and DEPSEC (A&L) on the advice of FASIS. The total functions to be discharged by those authorised are shown at Annex A. Those with this authorisation will be responsible for documenting justification of contract exemptions.

19. Should a case for a contract exemption be established, the option concerned and alternatives should be forwarded for consideration of the effects of the exemption, and of the alternatives, on Defence aims for DESINE, the principal aim being that for a coherent network architecture. The authority for approval as to whether the exemption is acceptable and whether alternative procurement to the DESINE contract may proceed is:

a. for command and tactical systems-HQADF; and

b. all other systems-FASIS

DESINE exemptions guidelines and procedures will be issued separately by HQADF and FASIS.

20. Exceptions to the processes to obtain approval for the exemption as described in paragraph 19 will be embedded systems; those existing systems for which a migration plan to DESINE has been approved under the master planning process or by FASIS; and those projects to be considered by the DSCD. A chart showing the broad processes for exemptions is attached at Annex C.

21. In some instances collective authorisation of contract exemptions together with approval of DESINE exemptions will be possible as part of the master planning process. This will be so when sufficient detail of the requirement, its solution and the implications of a DESINE exemption are available during this process. Similarly, the extent of intended utilisation of the DESINE contract can be established in some cases in the master planning process.

22. At the DSDC, or other earlier meeting to consider the future of projects to be taken by the DSDC in due course, FASIS will provide advice on the contract and DESINE exemptions if such exemptions are sought. HQADF and DSTO will provide DESINE exemptions advice also on command, and tactical systems and urgent operational requirements, and on scientific systems respectively.

ORDER PROGRESSION

Requirements with a DESINE Contract Solution

23. When the detailed hardware and software selections necessary to satisfy a functional requirement have been made from Schedule A, approved orders are to be placed directly with the IBM DESINE Project Office. This applies regardless of whether the items required are supplied by IBM or by subcontractors on the DESINE contract. The IBM Project Manager will coordinate delivery of the items.

Projects with a Partial DESINE Contract Solution

24. In the case of acquisitions such as capital procurement projects, where only part of the total requirement comprises computing equipment or services which may be capable of being supplied from Schedule A of the DESINE contract, the normal processes for seeking information from a range of sources will continue, ie invitations to register interest (ITR), requests for proposals, quotation or tender (RFP, RFQ, RFT) etc. Until the relevance of DESINE to the requirement is determined, any documentation issued to industry must include an appropriate statement regarding the existence and implications of the DESINE contract and a copy of the documentation must be forwarded to IBM simultaneously with release to industry. This statement will also advise potential suppliers of non DESINE contract solutions that Defence, in considering the relative merits of such solutions, may be influenced by how closely they comply with the longer term Defence aims for the DESINE environment. Where appropriate, IBM will offer equipment and services available from the DESINE contract Schedule A to interested prospective prime contractors under terms and conditions no less favourable than would apply if they were being supplied to Defence direct.

25. Bids containing a non-DESINE contract solution versus a DESINE contract solution received as a result of these competitive processes will be assessed by the DSDC where subject to DSDC processes and by the paragraph 17-21 process for others.

Non DESINE Contract Solution

26. The paragraph 24 statement, including its reference to the DCM on the DESINE environment, describes how Defence may consider compliance with longer term DESINE and OSI aims should there be no partial or full DESINE contract solution available.

Partial or non DESINE Contract Purchases from IBM

27. In cases where IBM has been approached direct with a functional requirement to determine whether there is a Schedule A solution available and IBM offers a partial Schedule A equipment solution together with other products, or a totally non-Schedule A solution, only the Schedule A equipment is to be ordered under the DESINE contract. Normal procurement procedures are to apply to meet the remainder of the requirement utilising the paragraph 24 statement as necessary.

Alteration of Schedule A During Competition

28. In cases where there is competition between IBM and other potential suppliers, there will be no new products or applications added to Schedule A which could affect the competition outcome.

MAINTENANCE AND SUPPORT SERVICES

29. A summary of services available under the Contract is attached at Annex D.

30. A range of maintenance and support services is available as described in the DESINE Contract. Project managers should select the level of service best suited for their system and this should be stated in the purchase order.

31. No provision exists under the Contract for the maintenance of existing IBM or subcontractor supplied hardware and software purchased prior to the DESINE contract.

I. W. KNOX...M. K. McINTOSH

VADM, RAN...DEPSEC (A & L)

VCDF

ANNEXES

A. Responsibilities of the Contract Delegate

B. Guidance on Exemptions for Existing Systems

C. Flowcharts

D. Summary of Services Available under the DESINE Period Contract

REFERENCE: OMS 88/30202

DISTRIBUTION: SDL 4, 5, 6, 7, 8, 9a, 14

CONTACT OFFICER: FASIS (062) 65 3454 (N-2-12)

ANNEX A

DESINE CONTRACT-RESPONSIBILITIES OF THE CONTRACT DELEGATE

Introduction

1. FASIS, responsible to VCDF and DEPSEC (A&L), is the delegate as defined in paragraph 1.1.17 of the contract. It should be noted that this delegation has no relationship to financial delegation.

Responsibilities

2. The responsibilities of the contract delegate are as follows, with contract clauses to which these responsibilities refer, (functions that can be discharged by those within Defence who are authorised by VCDF and DEPSEC (A&L) on advice from FASIS are shown with `*'):

a. Providing authorisations to perform the functions of the Delegate. (1.1.17)

b. Providing to IBM annual estimates of Equipment which may be required under the Contract. (4.2.1)

*c. Deciding whether requirements can be met by the Contract (4.2.2)

*d. Payment

receiving a correct account for payment from IBM. (6.1.1)

responsibility for rejecting Equipment for which advance payments have been made. (6.8.4)

*e. Price/Performance Guarantee-responsibilities for approving delivery of other than the latest technology equipment to achieve the price/performance improvement and for agreeing with the performance algorithm. (7.3.2)

f. Responsibility for nominating technically suitable or reasonably adaptable local products for evaluation by IBM. (7.5 & 8.9)

g. Progress Reporting-requesting progress reports from IBM. (10.1)

*h. Contractor's Personnel-responsibility for reporting to IBM unsatisfactory performance or conduct. (11.1)

i. Subcontractors-nominating suppliers and receiving nominations of suppliers from IBM for inclusion on the Contract. (Section 12)

agreeing to the substitution of other equipment if subcontractors fail to meet their obligations. (12.6)

*j. Access to the Site-requesting information re Contractor's personnel requiring access, denying access and determining the access date. (14.1-5)

*k. Packing Materials-requesting removal of packing materials. (16.2)

*l. Cabling Requirements-requesting IBM to undertake cabling for Hardware purchased under the Contract. (19.6.1)

*m. Acceptance Testing-nominating the shifts (20.1.1)

approving the Operating System to be used for Acceptance Testing (20.1.11)

deciding whether all levels of tests are to be carried out (20.1.15)

nominating a representative for the Acceptance Tests, ie the Supervisor (20.2.1)

accepting replacement items during testing (20.2.4 (c))

increasing the scope of tests or requesting additional Functional Tests (20.3.2)

determining that each item of Equipment is satisfactory (20.3.4 & 20.4.5)

*n. Maintenance-agreeing to the replacement of unserviceable Hardware (23.2.2)

nominating the Basic Maintenance Period (BMP) (23.5.1), advising IBM in writing of the period (23.5.2), varying the BMP (23.5.3.) and temporary extensions to the BMP (23.5.4)

Preventative Maintenance (PM)-requesting details and electing to have PM performed outside the BMP (23.6.4-5)

Remedial Maintenance-receiving notifications of faults in Equipment (23.7.1)

approving any Time Plus Materials Maintenance which is likely to exceed $500 (23.9.10)

approving replacement of unserviceable parts and interchange of parts between Equipment (23.14.1)

agreeing to implementation of engineering changes (23.15.1) and evaluating engineering changes (23.15.12)

receiving advice of hazardous equipment (23.16.1)

movement of Equipment-advising IBM to relocate Equipment (23.19.2)

requesting records of maintenance (23.20.1)

notifying IBM of the need to extend maintenance to cover additional items of equipment (23.22.2) and notifying transfer of items of Equipment (23.22.3)

Time Plus Materials Maintenance-notifying a fault condition which requires provision of TPMM and providing one month's notice of transfer of items from Maintenance Service to TPMM.

*o. Training-liaison with IBM concerning training programs (48.4.4.1)

NOTE Where Schedule A equipment is being integrated into an existing non-DESINE system, IBM is not responsible for the integration and therefore project/system managers should ensure that Defence does not incur a surcharge for management and integration services.

ANNEX B

GUIDANCE RELATED TO EXISTING SYSTEMS

1. In considering exemptions relevant to the provisions of paragraph 17c, the following broad definitions will apply:

a. Final Extensions. Extensions for which a DESINE solution would yield no gain to the user and any associated users, and which will complete the system until it reaches its end of life as per the migration plan. Normally would not exceed 1/3 cost of system procured prior to 28 February 1989.

b. Minor Enhancements. Those which normally would not exceed about 1/10 cost of system procured and which can extend the capability of the system but not its end of life as per the migration plan. Generally, minor enhancements after a final extension are unlikely to occur.

c. Component Replacements. Replacements which do not appreciably extend the system capability, and are needed for the system to reach its planned life as per the migration plan.

2. These meanings are intended for Department of Defence guidance only for those authorised by VCDF and DEPSEC (A&L) and not as an interpretation of the DESINE contract. Defence will apply exemptions under the contract depending on individual cases and instances which are outside the spirit of these guidelines should be referred to FASIS for consideration.

ANNEX D

SUMMARY OF SERVICES AVAILABLE UNDER THE DESINE PERIOD CONTRACT

1. Services which may be ordered under the DESINE contract include:

a. Maintenance, and

b. Support Services

2. Maintenance consists of:

a. Preventive Maintenance (Clause 23.6) and Remedial Maintenance (Clause 23.7) including the installation of engineering updates (Clause 23.15); and

b. Time Plus Materials Maintenance (Clause 23.24).

3. Varying levels of software services are available-see Clause 24.2.1 g to j. Software updates are provided under the appropriate licensing agreement.

4. Support Services include training. The scope of the training courses to be provided is outlined in Clause 48.4.5.1 and covers programmers, analysts, computer operations staff, non-EDP users of the equipment and Defence staff who will themselves be responsible for providing training. (See Clause 48.4 of the contract).

5. This summary does not cover those services provided by IBM Australia as part of its contractor role for the supply of hardware and software, eg preparing site specifications, installation and testing of equipment, etc or contract management.

Department of Defence

DEPARTMENTAL CIRCULAR MEMORANDUM NO 59/89

Note: Departmental Circular Memoranda are of a permanent nature and remain in force until cancelled. They should be reviewed by the sponsor every 2 years and repromulgated only where a significant change of content is necessary.

13 JUNE 1989

THE DEFENCE EDP SYSTEMS

INTEGRATED NETWORK

ENVIRONMENT (DESINE)

INTRODUCTION

1. The aim of the DESINE concept is to provide a standardised computing environment for the Defence Organisation. This will provide Defence with the strong central control of policy and technical standards necessary to support the decentralisation of information systems along functional lines. A brief outline of the DESINE concept is at Annex A. A glossary of terms and definitions is provided at Annex B.

2. Defence is committed to the evolution to Open Systems Interconnection (OSI) as the products compatible with the International Standards Organisation's (ISO) OSI Basic Reference Model become commercially available. The DESINE RFT required a commitment to the implementation of OSI. Due to present limitations in the availability of OSI standards it is not yet possible to obtain full network management facilities across multivendor networks interconnected using OSI standards.

3. DESINE will facilitate Defence implementing solutions based on the Australian Government Open Systems Interconnection Profile (GOSIP) as and when it is proclaimed as an Australian standard. GOSIP is based on existing OSI functional standards and other profiles to obtain levels of interworking with non-GOSIP systems and to avoid undesirable diversification.

4. Thus the DESINE concept for Defence computing extends beyond the products selected as a result of the tender evaluation. The DESINE concept applies to all aspects of computing suitable for standardisation.

5. The benefits of the DESINE contract include:

(a) the contracted availability of a range of proven hardware and software products needed to implement a proven network architecture, leading in turn to improved interoperability. This range of products has been evaluated as having the highest overall cost effectiveness available;

b. savings in training and other support costs;

c. increased contingency and back up potential;

d. the contracted availability of acceptable new technology and of products compatible with Defence OSI aims;

e. increased Australian/New Zealand (ANZ) industry participation;

f. a simplified procurement process for the supply of contracted products; and

g. availability of maintenance for 10 years after equipment delivery.

6. The DESINE contract is the first source for procurement of new Defence computing requirements. Schedule A to the contract consists of two parts: The DESINE Standard Product List (DSPL) and its Addendum.

a. The DSPL is the main body of Schedule A to the contract and lists products which satisfy the environment.

b. The Addendum to the DSPL lists some additional products which may facilitate inter-working of existing systems with DESINE systems, along with additional products which may offer benefits to Defence. Items from the Addendum are available only for the individual purposes attributed in the Addendum.

The scope of the DESINE contract does not include hardware or software suitable specifically for embedded or specialist systems (see paragraph 17).

7. This DCM will be replaced by a DI (G) in the future. Procurement procedures for acquisitions under the DESINE contract are covered in DCM 60/89, which will also be replaced by a DI (G).

AIM

8. This DCM describes the initial Defence Standard Computing environment established as a result of the DESINE tender evaluation which resulted in contract number C59/78320W, signed with IBM on 28 February 1989.

THE ENVIRONMENT

9. The environment is based initially on IBM's Systems Application Architecture (SAA), includes OSI standards and other relevant standards endorsed by international bodies. The products available from the DSPL are consistent with this environment.

10. This environment enables the implementation and development of Defence information systems and networks incorporating international standards. Notwithstanding, there may be special measures required to migrate existing systems to the environment.

11. The commitment to OSI is carried into the contract with IBM. Clause 8.8 of the Contract states:

`The Contractor agrees to maintain the development of Open Systems Interconnection and to periodically notify Defence of these developments. The Contractor further agrees to provide Defence with early access to the developments and products through appropriate programs such as the Contractor's Early Support Program to enable Defence to consider the acquisition of additional equipment pursuant to Clause 7.'

Selected Network Architecture

12. Defence is committed to the adoption of ISO communications networking standards as the standards, and products implementing those standards, become available. The initial network architecture, which provides comprehensive network management facilities, incorporates available OSI features and will be updated regularly to support international standards as these are implemented. In implementing networks, Defence has access to products which implement OSI standards as they become available through the contract. In addition, interoperability with a wide range of other systems is supported using networking products available from the contract.

13. The selected hardware and software are supported by IBM's System Network Architecture (SNA) and associated networking products. These provide the network management services required by Defence but not yet encompassed by the OSI Reference Model or existing standards. This enables a high degree of interoperation between systems implemented using hardware and software from the DSPL.

Selected Equipment-Hardware

14. The hardware products on the DSPL cover the entire spectrum from micro (PCs including laptops) to mainframe. These are complemented by a full range of peripheral equipment such as data capture devices and laser printers. TEMPEST and ruggedised versions of some equipment are also available.

15. Currently the hardware architectures are:

a. the S/370 represented by the 3090, 4300 and 9370 families of processors;

b. the new generation of PC represented by the PS/2; and

c. the PC represented by the PC-AT and compatible families of processors.

16. The DSPL will be updated quarterly with the latest compatible hardware technology as appropriate to the Defence requirement.

Selected Equipment-System Software

17. The operating system software for the S/370 hardware architecture is MVS and VM. The PC architecture supports MS-DOS and the equivalent PC-DOS operating systems. The PS/2 architecture is supported by the OS/2 Extended Edition Operating System and is available for multitasking solutions.

18. The software on the DSPL will be monitored continually and amended to ensure Defence is served by the latest compatible software appropriate to Defence requirements.

Application Software Packages

19. A variety of packages including PC based wordprocessing, spreadsheet and database packages is included on the DSPL.

20. Large scale and specialised application software packages are not the province of the DESINE contract. To meet these requirements separate procurement may be required. Requests for prices/quotations should indicate a preference for packages which will operate on equipment selected from the DSPL.

MIGRATION OF EXISTING SYSTEMS TO THE ENVIRONMENT

21. Managers of existing systems will be required to determine whether a migration path to the environment is required. Endorsed plans for migration or the explicit exemption from such migration are to be identified in their associated Office Master Plan. For some of these systems migration will occur after end of life of the present contract. Others will need to have specific paths developed including the development of special interfaces. Migration plans are to be developed for endorsement in advance of any exemption request.

22. Studies of the larger Defence systems may be required to identify a migration path to DESINE. A specific study by a Defence working group will be conducted on the need for migration of UNIX based systems to DESINE, or for the incorporation of UNIX into the environment.

I. W. KNOX...M. K. McINTOSH

VADM, RAN...DEPSEC (A & L)

VCDF

ANNEXES

A. An Outline of the Desine Concept

B. Glossary of Terms

REFERENCE: OMS 88/30202

DISTRIBUTION: SDL 4, 5, 6, 7, 8, 9A, 14

CONTACT OFFICER: FASIS (062) 65 3454 (N-2-12)

ANNEX A

AN OUTLINE OF THE DESINE CONCEPT

Background

1. During 1981 the Defence Computing Infrastructure Study Working Party (DCISWP) concluded that Defence should decentralise administrative computing conditional upon:

a. Improved long-range strategic planning of administrative computing.

b. Implementation of strong central control of policy and technical standards.

2. Those `technical standards' were further defined in terms of a standardised computing environment, referred to as DESINE. The concept of DESINE was subsequently defined in the DESINE Implementation Study report as `an approach to standardisation of Defence computing that would allow:

a. decentralisation along functional lines, and

b. effective vertical and lateral interaction between differing functions.'

3. The means by which this was to be achieved was through `a network architecture selected by open tender for implementation in the first instance by a contractor . . .', a network architecture being defined as a set of rules and protocols which enables the interoperation of distributed computer systems. When implemented, a network architecture is a range of special hardware and software products which specifies the relationships between different elements of the network (computers, terminals and associated software) and provides communications facilities.

DESINE Implementation Policy

4. Defence policy for the implementation of the DESINE concept may be distilled to the following key directions:

a. Defence is committed to support the philosophy of the International Standards Organisation's (ISO) Open Systems Interconnection (OSI);

b. the Environment is being implemented through a range of compatible and proven hardware and software products which in total comprise a network architecture; and

c. the prime acquisition vehicles for the establishment of the Environment will be the Supply Systems Redevelopment Project (SSRP) and the Sector/base level element of the Manpower System Redevelopment Project (MSRP), with other projects being included as they are approved.

Long-Term Computing Strategy

5. The implementation of DESINE constitutes the essence of the long-term Defence Computing Master Plan. The Department's long-term strategy is to facilitate the functional decentralisation of computing services through the implementation of DESINE.

Implementation Plan

6. Practical steps to implement the DESINE concept involved establishing a five year period contract with a contractor for the provision of computing hardware and software. The contractor selected as a result of open tender is IBM Australia Ltd.

7. The original strategy had been for this Contract to cover only administrative computing requirements. The RFT broadened the application of the contract to cover operational computing systems not classified as embedded or specialist systems.

8. The essential elements required by the RFT were:

a. a proven network architecture, including support for international standards, to the extent these were available as proven products.

b. a full range of equipment from basic terminals and microcomputers through to mainframes, including software; and

c. an interface to existing UNISYS mainframes.

9. The products selected by the evaluation will be used to replace existing equipment when it reaches the end of its economic life, and provide new equipment for SSRP, MSRP and most other large, medium and small computing systems.

Establishment of Standards

10. The objective of the RFT evaluation was to establish a contract with a contractor for the supply of hardware and software which provided the basis for a standard computing environment, initially for a period of five years. The selected supplier is responsible for providing equipment for:

a. the replacement of existing systems when they reach the end of their economic life, and

b. the establishment of new systems for various functional elements of Defence.

11. The standards established during this initial five year period will guide the Defence information technology development for many years. Defence is building an operating, standard, computing environment from proven current equipment and software building blocks supplied as a result of the DESINE contract.

12. The most important criterion was the capa- bility of the whole environment to support the management of Defence information with integrity and coherence using compatible and interoperable equipment, to standards which are consistent with present and future international standards. The successful contractor demonstrated that it can offer the most substantial and stable total environment, in terms of current products and strategic direction.

ANNEX B

Glossary of Terms

The following terms are defined for use in this and associated memoranda and instructions. Where these terms are used in other documents a reference to this Annex will be made.

Addendum to DSPL-The Addendum to the DSPL is composed of products selected from the Australian Published Price Lists of the Contractor and its Sub Contractors. It represents additional products which are available under the contract but only for the individual purposes identified therein.

Contract-See DESINE contract.

Contractor-IBM, being the company that by the contract undertakes to supply the goods or to render such other services as is provided by the contract. The expression shall also include any person or company to whom the benefit of the contract may be assigned by the contractor with the consent of the Commonwealth.

DESINE-Defence EDP Systems Integrated Network Environment.

DESINE Contract-DESINE contract refers to contract C59/78320W between the Commonwealth of Australia and IBM Australia Ltd for the supply, installation and maintenance of computing facilities for the Department of Defence.

DESINE Environment-The Defence standardised computing environment which is evolving towards full OSI implementation, initially by a network architecture comprising a range of hardware and software products identified in the DSPL. Note that the DESINE concept extends beyond the products available from the DSPL to include all aspects of computing suitable for standardisation.

DSPL-DESINE Standard Product List. The list of products which have been evaluated as conforming with the DESINE environment. See Schedule A.

Embedded Systems-Meaning for these purposes, equipment in those systems which are integrated or qualified specially for use in a weapon or a weapon platform together with those systems (except general purpose computers not utilised in the weapon platform) used for their support and training. Embedded systems also include equipment which is integral and dedicated to manufacturing equipment and robotics applications.

Equipment-Hardware and special features, including software, as listed in Schedule A to the contract.

Existing Systems-An existing system is an information system for which orders had been placed prior to the announcement of the DESINE contract. It may not necessarily have been physically in place at the time of the announcement.

GOSIP-The Government OSI Profile. A precise expression of the Government's policy commitment to OSI as the most effective way of ensuring that Agencies can make best use of it. It recognises that a careful selection from the OSI base standards is necessary, often at a very detailed level, in order to make such standards suitable for use in procurement and to ensure that appropriate products and testing services are available.

Schedule A-Schedule A of the DESINE contract, which lists products and their prices, available under the contract from the Contractor and includes those products supplied by its subcontractors. The main portion of this list constitutes the DSPL. An addendum to the DSPL contains other products which are available-(see Addendum to DSPL).

Specialist Systems-Those where security, compatibility and interoperability considerations are paramount for systems used in a cooperative manner with allied defence organisations or in accordance with international agreements.

Support Services-The services, other than maintenance services including, but not restricted to professional advice and assistance in the installation and implementation of equipment supplied, training, coordination, documentation and facilities management services.

Question 158

Page 2939 LHS & RHS

Senator Newman-Were the services involved in the evaluation of Unix during the DESINE tender process?

Could the Minister please give me some more details [about representation by the Services]?

[Were the Services represented . . .] Throughout the entire evaluation process?

Response: The original DESINE team, established in 1983, had three military positions, at LTCOL (or equivalent) level, representing the three services (Pos No M862, M861 and M863) (duty statements attached). The occupants of these positions were involved in the RFT preparation and subsequent tender evaluation. The Army and Air Force were present throughout, the Navy until April 1988. In addition, in response to a request for additional resources to assist with the tender evaluation, DCGS provided a Major for the period Sep 87, to Mar 88.

1. Represent the Navy on behalf of DCNS on the DIAD Team.

2. Ensure in the development of Defence administrative EDP standards, the incorporation of Navy requirements through liaison with Navy computing users.

3. Participate in the evaluation, development, production and promulgation of standards, including participation with relevant Departmental authorities in the establishment of appropriate security standards.

4. Report progress of the DIAD team to DCNS and the Navy Computing Services Policy Committee on a regular basis.

5. Prepare Navy aspects of policy and planning briefs for the CSPC and contribute to the DESINE input for the Departmental EDP Strategic Plan.

6. Implement, in concert with DMIS-N, approved standards and decentralisation criteria.

7. Oversee, in concert with DMIS-N, the decentralisation of the Navy administrative computing function.

8. Perform other duties as directed.

1. Represent the Army on behalf of DCGS on the DIAD Team.

2. Ensure in the development of Defence administrative EDP standards, the incorporation of Army requirements through liaison with Army computing users.

3. Participate in the evaluation, development, production and promulgation of standards, including participation with relevant Departmental authorities in the establishment of appropriate security standards.

4. Report progress of the DIAD team to DCGS and the Army ADP Computing Committee on a regular basis.

5. Prepare Army aspects of policy and planning briefs for the CSPC and contribute to the DESINE input for the Departmental EDP Strategic Plan.

6. Implement, in concert with DAIM, approved standards and decentralisation criteria.

7. Oversee, in concert with DAIM, the decentralisation of the Army administrative computing function.

8. Perform other duties as directed.

1. Represent the RAAF on behalf of DCAS on the DIAD Team.

2. Ensure in the development of Defence administrative EDP standards, the incorporation of Air Force requirements through liaison with Air Force computing users.

3. Participate in the evaluation, development, production and promulgation of standards, including participation with relevant Departmental authorities in the establishment of appropriate security standards.

4. Report progress of the DIAD team to DCAS and the Air Force Computing Services Policy Committee on a regular basis.

5. Prepare RAAF aspects of policy and planning briefs for the CSPC and contribute to the DESINE input for the Departmental EDP Strategic Plan.

6. Implement, in concert with DAMIS, approved standards and decentralisation criteria.

7. Oversee, in concert with DAMIS, the decentralisation of the RAAF administrative computing function.

8. Perform other duties as directed.

Question 159

Page 2939 RHS

Senator Newman-I ask for details on the $25m stated by the Department for Unix based systems. I asked for a break up listing hardware costs, software costs, software development costs, any consultancy costs, communication costs, training costs, et cetera. I wanted a total cost identification over the life period of all Unix based systems.


Senator Richardson — . . . This will take a little time . . .

Senator Newman-How long is a little time in the eye of the Department.


Senator Richardson —Two weeks.

Response: In response to Senate Estimates Committee Question 107, the Department advised that the UNIX-based investment was of the order of $25m rather than the $70m suggested by Senator Newman. The actual, identifiable amounts total a little over $23m, as follows:

Navy

Air Force

$

$

Hardware ...

7,550,065

8,904,993

Software ...

1,336,668

2,470,561

Software Development ...

-

73,000

Consultancy ...

579,209

-

Turnkey ...

1,300,000

-

Communications ...

105,209

95,000

Training ...

238,077

526,736

Total ...

11,109,228

12,070,290

The amount shown as Turnkey was one provided to a systems integrator by Navy.

As the systems acquired through expenditure of the above amounts are still in use it is not possible to provide a final total cost over the life period of the systems. However it is estimated that, on average, the systems have a remaining life of eight years and that a further $12m to $15m will be required for maintenance and support.

Question 161

Page 2942 RHS

Senator Newman- . . . Is the Minister aware that SAA is not a commercially available product and that even the first major SAA application, Office Vision, will not be available until early 1990? The industry and the computer press have continually reported this fact.

Response: SAA is not a product. SAA defines a set of standards for the complete system development environment within the IBM processor product range. The solution established by the DESINE tender evaluation is covered by SAA, with some variations determined by Defence.

Defence understands that Office Vision will be available to customers as follows: for PS/2, September 89, for S/370, December 89, and in June 90 for AS/400.

Question 162

Page 2943 RHS

Senator Newman-Could the Minister advise me whether the reports in the computer press that some DESINE subcontractors have already withdrawn from the DESINE contract are true?

. . . I would be grateful if I could be informed of the names of the companies and the reason they decided to withdraw?

. . . perhaps the Department is able to indicate whether there is any concern at this action so early in the life of DESINE and whether any further withdrawals are anticipated?

Response: As of 30 May, no notification of any DESINE sub contractor withdrawal has been received nor is any expected.

Question 163

Page 2944 LHS

Senator Newman- . . . can the Minister . . . provide me with a copy of the terms of reference of the Unix working party?

Response: A copy of the working party terms of reference is attached. The report is scheduled for completion by September 1989.

TERMS OF REFERENCE FOR UNIX WORKING PARTY

Background

1. Pending establishment of DESINE standards some areas of Defence, civilian and military, adopted UNIX as an interim standard for certain applications. The future of UNIX based systems and the potential role of UNIX itself now needs to be considered. The migration of existing systems based on other interim standards is a separate consideration.

2. None of the shortlisted solutions for DESINE was based on UNIX, however, all three offered some support for UNIX. This would provide some support for existing systems, allow the use of application software packages running under UNIX, and exploit its capabilities as an engineering/scientific workstation.

3. The Working Party will review current investment by Defence in UNIX based systems and their future, including possible migration to DESINE. The study will also consider the potential benefits that might be brought to DESINE by the integration of UNIX with the environment.

Terms of Reference

4. The terms of reference for the Defence UNIX Working Party are as follows:

a. Current Systems. Determine the current inventory of UNIX based systems in Defence in terms of equipment and application software packages. Determine the cost, function and subsequent upgrade requirements.

b. Interconnection Options. Report on whether current UNIX systems need to communicate with other systems, what communication interconnections are required to interface current UNIX systems to DESINE, what DESINE and third party options exist, whether UNIX systems will be capable of interconnection with DESINE systems using OSI standards, and whether all workstations are visible in a network environment.

c. Migration Path. Report on whether there is a migration path for UNIX based systems to DESINE.

d. UNIX as a Standard. Determine where UNIX is in relation to international standards, and what are the main implementations of UNIX and their differences.

e. The use of UNIX by Allies. Review the extent to which UNIX has been most recently implemented by our allies, the applications involved (including identifying those applications which could be shared with our allies), and the impact our allies' use of UNIX will have on Australian Defence interoperability with allies.

f. Security. Review what are the security limitations of UNIX and what is the effect of any security limitations on the use of UNIX for Defence computing.

g. UNIX and Industry. Report on the direction UNIX is taking within the information technology industry broadly, including IBM's direction for UNIX and what Australian/New Zealand based equipment exists and how widespread is the use of UNIX by industry and educational authorities.

h. Functionality provided by UNIX. Determine what functions are provided by UNIX based systems that are not available from DESINE and whether future changes can be expected.

i. Applications suitable for UNIX. Describe weaknesses and strengths of UNIX for distributed data base and multiple workstation access, and as an application platform (including transaction processing and associated operating system overheads).

j. Procurement of UNIX based systems. Advise how UNIX could be added to the DESINE contract and how upgrades can be procured for current systems.

5. Make recommendations on:

a. the potential role of UNIX in Defence computing;

b. a generic migration plan for current UNIX based systems;

c. procurement options for current and future systems;

d. the addition of UNIX to DESINE.

Question 165

Page 2953 RHS

Senator MacGibbon-The nomination of the Garden Island Dockyard is just a fiction because Garden Island does not do submarine overhauls.


Senator Richardson —I do not have a response to what the honourable senator has said about Garden Island. I will get one for him but I will have to take that on notice, as I am not certain of it at the moment.

Response: On 27 January 1989 the Department of Defence issued an Invitation to Register Interest (ITR) in performing Oberon submarine depot level maintenance at a site other than Cockatoo Island. The ITR specified that the task be performed in one or other of the locations where the submarines are home-ported, that is Sydney NSW or Fremantle WA. The responses to that invitation have been analysed within the Department and a recommended short list has been sent to the Minister of the organisations who will be invited to respond to a Request for Tender (RFT). The content of that list is currently `Commercial-in-Confidence'.

Garden Island Dockyard (GID) was invited to respond to the ITR and did so. The assessment of the Department is that GID has the potential capability to refit Oberon submarines after some investment is made in personnel, management systems and facilities. Whether GID has the workload capacity is an area under close examination at present given current projected surface ship work at GID. That examination is being done within the Department and by GID itself.

The formation of Australian Defence Industries (ADI), of which GID is a part, gives GID management much more flexibility than formerly to handle varying workloads. The effect of this flexibility is one of the factors under examination from the capacity viewpoint.

Question 166

Page 2954 LHS

Senator Crichton-Browne-. . . Can the Minister confirm whether, as a result of damage or otherwise, when travelling to a depth of 600 feet the vessel is taking four litres of water per minute through leaks in the port gland? Can he also advise whether there have been problems with the antifouling on the HMAS Swan which has caused it to be replaced as a result of inappropriate applications?

Response: Water leakage of the order of four litres per minute through an Oberon submarine propeller shaft gland is not a matter of concern; some leakage is to be expected. Leaks of this magnitude are a function of the design of seals and bearings and OXLEY's leakage is unrelated to her recent intermediate docking in Western Australia.

There have been no problems with HMAS Swan's antifouling paint attributable to inappropriate application. Selective removal of old paint, preparation of surfaces and repainting is a normal component of a refit work package and some work of this nature is being done on HMAS Swan during current refit.

</ANSWER.TO.QWN>