ADO proves cost savings from use of CTS

May 16, 2014

 

Navy demonstrates examples of significant cost avoidance and cost reduction resulting from its use of Futura CTS.

 

In just its first year of operation with the Royal Australian Navy, CTS has generated a measured 5-year Return on Investment of over 20 times its cost to date.  This stands in addition to the solution’s impact on Navy’s Capability output and reputation.  Examples include:

 

Avoided costs: a Naval-aviation Capability Transition.  In its first month of active service, the solution identified savings on a single programme conservatively estimated at A$10m in cost avoidance plus an ongoing c A$5m per annum resulting from unrecoverable personnel shortfalls identified early and mitigated.

 

Maintained Capability: Guided Missile Frigates (FFG).  Further savings identified by Navy from CTS included options to use end-of-life frigates as training platforms to mitigate availability shortages in identified staff trades.  The expected reduction in trade shortages amounted to a saving of A$9m in terms of resource input alone.

 

Responding to the emerging savings for this important client, Futura’s MD Christopher Barker commented: “In today’s tough times for Defence, it is particularly welcome when our clients are able to measure hard savings quite as swiftly as this.  I am delighted for RAN that it is now able to realise and prove internally such substantial improvements in the cost of Capability.

 

“It is a privilege for us to work with such goal-oriented client officers.  We recognise that many of the savings Defence makes through CTS cannot by their nature be revealed, and it is encouraging to see these benefits to Naval Capability as well as to the Australian taxpayer coming to light.  We all look forward to Navy’s continued success in extracting greater Capability from its budget, and are proud to continue supporting its efforts.”

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