Part 6: Minor capital equipment

New Zealand Defence Force: Progress with the Defence Sustainability initiative.

In this Part, we discuss NZDF's progress in rectifying shortages of minor capital equipment.

NZDF has made good progress in clearing a backlog of minor capital equipment shortages.

The Defence Funding Package provided funding to help NZDF deal with a backlog of minor capital equipment shortages. NZDF planned to rectify the shortages over 10 years, but assigned a higher proportion of the funding to the first three years.

During the foundations phase, NZDF spent about $323 million on minor capital equipment, which was double the amount spent in the preceding three years. There were also about double the number of projects to buy equipment for than in the preceding three years. NZDF has made good progress in clearing the backlog of shortages.

The fast pace in starting projects, combined with the need to ensure that the right personnel were available to manage each project well, meant that some projects ran late.1 NZDF took steps to ensure that new projects to buy minor capital equipment will not start unless there will be enough personnel available to manage them to completion within the relevant financial year/s.

NZDF had an effective and thorough method, using decision-modelling software, to help senior personnel decide which proposals for new minor capital equipment would get priority. Proposals for funding had to describe how the new equipment would help NZDF meet its strategic objectives.

1: The deployment rate was one factor that affected personnel availability.

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