UNIVERSITI PERTAHANAN NASIONAL MALAYSIA

KEM SUNGAI BESI

57000 KUALA LUMPUR
MS ISO 9001:2000 REG NO KLR -0500197
Duty, Honour, Integrity

GROUP ASSIGNMENT
PROCUREMENT
Assignment 1 – Need Analysis (20%)

Introduction

A scenario illustrating the decision-making process involved in the establishment of a

military capacity is shown in this case study. It is a specific reflection of the procedures
that culminate in a decision regarding whether to buy a replacement or upgrade an existing
maritime capability. Specifically, these processes include: The case study depicts the
national interests and activities of defence procurement of a created nation called
"Nilaland," as well as the possibly hostile nation-states of "Sagaland" and "Unguland."
Concerns regarding procurement and support decision-making that were brought up by
the case are ones that senior officials who are involved in the purchase of military capacity
regularly face.

This scenario is given from the point of view of a Programme Manager working in a
national defence procurement agency; this individual is you. The process of decision-
making begins with you—specifically, the choices you make and the subsequent steps
you take in response to those choices.

Scenario

"Nilaland" is bordered on the North West by the country of "Sagaland," with whom long-
standing border issues have recently worsened, leading to the deployment of a
considerable number of Army units over the course of the previous four years. Incursions
and terrorist activities carried out by religious fundamentalist organisations based in
"Unguland" have also forced the deployment of a substantial number of Special Forces
and anti-terrorism units along the country's eastern border. The conduct of two campaigns
at the same time has placed a significant strain on a military logistics support network that
was already operating at near capacity. The Navy fleet and its capacity to deploy, support,
and reclaim national waters have been under the most intense amount of pressure
recently. The situation has become significantly worse due to a combination of factors,
including inadequate system reliability and maintainability as well as a lack of mechanical
engineers and naval architects that are adequately prepared and experienced. As a direct
result of this, there is a significant reduction in the number of support ships that are readily
available to satisfy the rising demand for operational activities.

The Defence Minster endorsed the special budget maritime asset in order for Nilaland to
maintain Martime Support Capability.

As the Programme Manager, it is your duty to make certain that the Assessment Phase
of the programme produces a proposed choice that can fulfil the capacity need. The
preliminary investigation uncovered a total of four distinct opportunities. You need now
carry out a cost benefit analysis, often known as a CBA, in order to establish the most
effective way to fulfil the capability demand.

OPTIONS

Option 1 (Do Nothing)

In the middle of the 1990s, fifteen of the ships that today make up the Maritime Support
fleet were purchased from a major European defence manufacturer. Subsequent
purchases have led to the fleet's current configuration, which is comprised of ships of three
distinct build standards. Configurations of the primary engine, engine management, and
avionics suite are now significantly different from one another. Ships do not typically come
equipped with defensive aids such as missiles, with the exception of six recent upgrades
that were made in 2015. It is possible to draw the conclusion that the current fleet of 23
ships can be maintained until the year 2028; but, beyond that year, the availability of ships
will diminish due to the obsolescence of their components. According to the most recent
assessment, the current capability will not be able to be supported beyond the year 2028.
This is due to the fact that 11 ships are currently categorised as being permanently in
"KAT 4," which means they are not operational. In addition, because this alternative does
not fulfil the prerequisite for carrying out Intervention Operations, it has been disregarded
as a potential solution.

Option 2 (CEP)

A Capability Enhancement Program (CEP) will be carried out on the existing training fleet
in order to solve obsolescence and elevate it to the level of a warship. The CEP will
introduce a common main engine, engine management system, avionics, and defensive
aids. This will be accomplished by the original equipment manufacturer (OEM), who will
implement it with the help of a combination of locally recruited civilians and expatriate
contractors. The manufacturer's maintenance facility in Europe will be responsible for the
upgrade of the main engine, while the manufacturer's existing maintenance facilities in
Niland will be responsible for the repair of all other assemblies. The major objective of the
CEP option is to upgrade the fleet; additional benefits include a large reduction in the
number of spares and repair contracts, a reduction of up to 25 percent in the size of the
locally hired personnel, and a reduction in through-life support expenses.

Option 3 (New Build - Import)

A one-for-one replacement of the existing Frigate might be accomplished by purchasing
the most recent variant of the Frigate from the original equipment manufacturer (OEM).
This option would offer a marginal improvement in performance in comparison to Option
2, but it would come at a higher price. The reason for this is partly due to the necessity of
also acquiring the integrated operations and maintenance (O&M) service package offered
by the manufacturer. The O&M service would be supplied by utilising the already
established locally employed personnel, with the addition of a select few expatriate service
managers to round out the team. In the event that the O&M service is not contracted, the
manufacturer will only be able to offer a limited guarantee or warranty regarding the ship's
availability.

Task

You have identified that your country the Nilaland critically required the Program in Figure
1. By taking into considerations on financial requirement and return on investment, choose
the most appropriate option with key assumptions for instance the criticality, priority and
etc.

Figure 1. Return on Investment

Requirement

Produce a minimum 2,500 words assignment. The SWOT analysis in Figure 2 can be use
in critically analyse the program required.
Figure 2. SWOT Analysis

Submission

1. You are required to submit the assignment latest by Monday, 12th September 2022.

2. Submission should be typewritten in English using Arial 12 font, 1.5 spacing with not
less than 3,500 words. Proper page numbering, paragraph numbering and references are
expected.

3. Students are required to submit turnitin report. The similarity index should not more than
20%.

Date Issued to Students : 27th August 2022 (Saturday)