Case study: PPPs in action at the Australian Defense Force.

PPPs in Action: Australian Defense Force

How KPMG helped guide a PPP to upgrade the living quarters for members of the Australian Defense Force.

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Empirical research in Australia shows that P3 are less likely to experience cost overruns and suffer delays than traditionally financed projects. So, when the Australia government wanted to upgrade the living quarters for members of the Australian Defense Force, a P3 was a fiscally sound option.

Much of the single-unit housing at military bases across Australia were in need of significant maintenance and refurbishment to bring them in line with community standards. At the same time, the Australian Defense Force recognized that modern living quarters were critical for attracting and retaining Navy, Army and Air Force personnel.

KPMG was able to assist the Australian Defense Force with its Single LEAP (Living Environment and Accommodations Precinct) project to create a P3 for the design, construction, operation, and financing of 4,400 single-housing units located in 14 bases across the entire continent of Australia. The P3 included a provision for the commercial contractor to maintain and operate the living quarters for 30 years.

Using the P3, the Australian Defense Force was able to transfer the financing, operational, and maintenance risks to the commercial contractor.  KPMG is committed to helping public sector organizations build success through their P3 initiatives. Using our global experience, understanding of the unique challenges of the public sector and in-depth knowledge of the military, we’re ready to help Federal agencies such as the DoD meet their budgetary requirements while achieving greater value on their investments.

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