New Maintenance Contract with Safe Air

AIRCDRE Newlands presents the new contract to Jeremy Remacha (GM Safe Air Ltd) and Trevor Hughes (Air NZ Engineering Services). WN-07-0036-91-tn.jpg.

The RNZAF has signed a new contract with Safe Air to provide Depot Level Maintenance for its C-130H, P-3K and UH-1H fleets and T56 engines. The six-year contract, worth about $135M, will see the RNZAF and Safe Air working closely to ensure that the RNZAF gets the best aircraft and component availability. AIRCDRE Dick Newlands, Deputy Chief of Air Force, believes the addition of joint initiatives and performance targets in the new contract pave the way for continuous improvement and long term reduction of ownership costs.

‘We want to see improved aircraft availability, improved readiness for operations, and more competitive cost of fleet ownership. The new contract promotes an open relationship between the RNZAF and Safe Air, which is designed to optimise forecasting and response times. It’s essential that we maintain a close working relationship with Safe Air if we are to get the best results during what is likely to be a very challenging period,’ said AIRCDRE Newlands.

The scope of the new contract is similar to that of the previous contract, but it has been simplified and combines what were previously separate aircraft and component maintenance, supply and propeller overhaul contracts.

The new contract shifts from what was historically a transactional service into a more strategic business approach. There is a much greater emphasis on future planning; Fleet Planning Unit (FPU) plays a crucial role in determining the RNZAF’s requirements, and works closely with Supply Chain Management Squadron (SCMS) and Safe Air to get the best servicing solutions.

There is also a big emphasis on gain sharing. The RNZAF and Safe Air have agreed a list of initiatives, which are designed to help raise the bar on performance, with potential savings to be shared equally. Two examples are where both parties will work to identify and control critical items, and prepare a plan to progressively reduce turn around times.

Given the strategic nature and value of the new contract, two contract relationship posts have been created to provide relationship oversight.

‘As the Contract Relationship Manager, I am responsible for managing and resolving all contractual issues, SQNLDR Nick McMillan said. ‘Along with F/S Jason Cunningham, who is the on-site Contract Relationship Manager at Woodbourne, we cover, for example: contract relationship, management and administration. Our contract relationship role is to ensure that both parties are fully aware of all requirements, and to promote effective liaison. This includes promoting an atmosphere of trust, ensuring that there is an effective flow of information between stakeholders and resolving contractual issues. The contract management role is to act as the single point of contact for all formal and legal correspondence relating to the contract. We have to ensure that the contract metrics are being maintained, that performance is as specified, and that future initiatives are on track to benefit the RNZAF. Finally, we are responsible for administering the contract, by keeping the documentation and procedures up to date and controlling the process of change requests.’

‘It is a complex relationship. OSW has oversight of the Base area, JLSO is responsible for the buildings and we require Safe Air to provide the contracted logistics output while also being aware of the significant aircraft upgrades being conducted through MoD. In sum, SCMS and FPU will be primarily accountable for the transactional work, and the Contract Relationship Managers will focus on the higher-level oversight of the contract, problem solving and ensuring that both parties are working towards future strategic initiatives,’ says SQNLDR McMillan.

‘The net effect of all this is to get the best result for the RNZAF, which we’ll do by working closely with Safe Air.’