Tight budgets do not have to offer lower outcomes for the defense of South Africa

Aurecon believes that there are many opportunities in difficult times for the South African defense sector.Despite tight budgets, there are feasible opportunities for the South African defense sector, including prioritizing the right projects and optimizing spending to ensure positive results.

Achieving efficiency and efficiency – doing more with less money and getting stronger – in a difficult economic climate, is not easy, because many companies and government departments around the world are figuring out.

The South African defense sector is not immune to this pressure and as such has many competing priorities to optimize their budget, including the training of deployable soldiers; updating and maintaining existing military infrastructure; defend the country; and invest in new defense capabilities.

The challenges for the government and the defense sector are further deepened as South Africa's credit rating is reduced in 2017 by S & P.

Nevertheless, South African defense remains a trusted ally of governments and international peacekeeping authorities on the continent, often called to support other African countries in peacekeeping services.

Preparing the way forward

For the future, a viable opportunity for improvement is to have a larger and continuous dialogue between the national government, the South African Defense Industry (SADI) and the private sector around worrying areas and opportunities for co-creation of solutions.

It is essential for all parties to establish mechanisms for transparency and governance in investments in public financing and infrastructure. This would be well supported by a sustainable business offering, providing guidance on how projects are managed and where teams and stakeholders are enabled through upskilling.

Aurecon Principal Program Advisory, Kevin Nadasen, suggests that the Infrastructure Delivery Management System (IDMS) is a way to make positive progress: "The IDMS was designed by the National Treasury and is a toolkit that helps the public sector to improve infrastructure delivery capacity ".

He further confirms that the IDMS is "focused on deliverables and value for money through an effective and efficient functioning of procurement and delivery management in accordance with all legislation." Successful implementation of the IDMS increases capacity and reduces complexity. from three interconnected systems, namely: planning and budgeting, supply chain management and asset management ".

"Together with a performance management system, these processes and systems establish the institutional model for the delivery of infrastructure, especially in a tax-limited environment," says Kevin.

Initially designed for provincial and national departments, IDMS has recently expanded with municipalities through the Cities Infrastructure Delivery and Management System (CDIMS).

Just like personal financial considerations, public entities have to deal with one reality: if you have limited resources, what you spend on it is just as important as how you spend it. The priority lies in finding the best value for money and an optimal return on investment – goals that pave the way to a more prosperous South Africa.

The implementation challenge lies within the capacity limitations of government departments and municipalities. Typically, inefficiencies at this level are underpinned by a lack of sufficiently qualified, trained and experienced on-site staff to implement the IDMS.

The positive improvement trends that can already be seen in spending patterns and achieved value for money by the Western Cape Department of Public Works and the National Department of Health where the IDMS has been implemented are a motivation to tackle this implementation challenge.

A balanced approach is the key

Global consultancy and engineering firm Aurecon has experience in supplying IDMS and believes that there are even more ways to optimize assets and projects under difficult financial conditions and manage them efficiently in order to achieve positive results.

"At Aurecon we have a specialized service offering that applies our global experience in advising clients on prioritizing their project expenses and then working closely with the customer to deliver those projects," said Lizelle Botha, Principal Program Advisory, Africa at Aurecon.

After prioritization has been established, an analysis of the timing, costs and risks of the implementation indicates whether a project can reasonably be delivered within the available time frame and budget.

"We can call this process and methodology for prioritization scrubbing because it essentially cleans up a portfolio of identified projects to focus on those with the highest return on investment with maximum impact. aimed at narrowing the scope, improving project efficiency through digital solutions, fast tracking of specific activities in the roster, and the implementation of robust contracts This methodology facilitates the institutionalization of standardized project control mechanisms and the application of strategic approaches to purchasing and delivery ", explains Lizelle.

Both the IDMS and the scrubbing methodology & # 39; include components of asset management, program management and / or multidisciplinary engineering – all crucial for achieving maximum results in tight budgets.

About Aurecon

Aurecon's strategy for the defense market builds on the long tradition of the company to design and implement many defense infrastructure projects as the partner of choice for companies in the public and private sectors. With a strong reputation in consulting and technical expertise within the defense sector, the company is a level 2 B-BBEEE contributor with a strong origin in Africa.

Aurecon is a consultancy in the field of engineering and infrastructure that creates smart, innovative solutions for some of the world's most complex challenges, and adds value throughout the life cycle of the project through in-depth technical and advisory expertise.

Aurecon invites the South African defense sector to present their future with the company. Aurecon has an exhibition stand at the Africa and Aerospace Defense Expo 2018 in Hanger 5 at booth 5W6 from September 19-23.

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