Law Enforcement TechnologyOpportunities in Australia

Objectives

1. Introduction and summary2. Overview of Australian Market3. National and State Governments4. Matching markets for UK capability5. Agency profiles and 2014/15 budgets6. Specific project opportunities 7. Doing business down under8. Questions and discussion

1. Introduction

• Introduction • Courts technology• Evidence management systems• Government business and support for SMB• Providing market development advice and support as

“Onshore Partners”• Focus on where money is being spent, on what and when

SummaryKey Agendas• Border security• Police technology • Emergency response• Cyber crime

Main Opportunities• Specialised equipment• Consulting and training• Special events – G20

Who is Spending• $ 12B - 2014-2015

Major Trends• Mobility • Analytics • Geospatial • Intelligence

Question?

• Who has had experience selling in the region?

2. Overview of Australian Market• Geography• Politics – liberal conservative• Currency and exchange rates• Economic policy and drivers • Interest rates and inflation• Corporate tax rates• Unemployment and wages• Cost of living – affordability• Travel times and zones• Holidays – summer vs. winter• Financial reporting periods• Political terms of office• Cultural backgrounds• Settlement patterns• Threats – bushfires, biosecurity, water security, oil prices, shipping and freight• Political priorities – boarder protection, infrastructure, debt management

Overview of Australian Market• Geography• Politics – liberal conservative• Currency and exchange rates• Economic policy and drivers • Interest rates and inflation• Corporate tax rates• Unemployment and wages• Cost of living – affordability• Travel times and zones• Holidays – summer vs. winter• Financial reporting periods• Political terms of office• Cultural backgrounds• Settlement patterns• Threats – bushfires, biosecurity, water security, oil prices, shipping and freight• Political priorities – boarder protection, infrastructure, debt management

Overview of Australian Market• Geography• Politics – liberal conservative• Currency and exchange rates• Economic policy and drivers • Interest rates and inflation• Corporate tax rates• Unemployment and wages• Cost of living – affordability• Travel times and zones• Holidays – summer vs. winter• Financial reporting periods• Political terms of office• Cultural backgrounds• Settlement patterns• Threats – bushfires, biosecurity, water security, oil prices, shipping and freight• Political priorities – boarder protection, infrastructure, debt management

Overview of Australian Market• Geography• Politics – liberal conservative• Currency and exchange rates• Economic policy and drivers • Interest rates and inflation• Corporate tax rates• Unemployment and wages• Cost of living – affordability• Travel times and zones• Holidays – summer vs. winter• Financial reporting periods• Political terms of office• Cultural backgrounds• Settlement patterns• Threats – bushfires, biosecurity, water security, oil prices, shipping and freight• Political priorities – boarder protection, infrastructure, debt management

Overview of Australian Market• Geography• Politics – liberal conservative• Currency and exchange rates• Economic policy and drivers • Interest rates and inflation• Corporate tax rates• Unemployment and wages• Cost of living – affordability• Travel times and zones• Holidays – summer vs. winter• Financial reporting periods• Political terms of office• Cultural backgrounds• Settlement patterns• Threats – bushfires, biosecurity, water security, oil prices, shipping and freight• Political priorities – boarder protection, infrastructure, debt management

2. Overview of Australian Market• Geography• Politics – liberal conservative• Currency and exchange rates• Economic policy and drivers • Interest rates and inflation• Corporate tax rates• Unemployment and wages• Cost of living – affordability• Travel times and zones• Holidays – summer vs. winter• Financial reporting periods• Political terms of office• Cultural backgrounds• Settlement patterns• Threats – bushfires, biosecurity, water security, oil prices, shipping and freight• Political priorities – boarder protection, infrastructure, debt management

Overview of Australian Market• Geography• Politics – liberal conservative• Currency and exchange rates• Economic policy and drivers • Interest rates and inflation• Corporate tax rates• Unemployment and wages• Cost of living – affordability• Travel times and zones• Holidays – summer vs. winter• Financial reporting periods• Political terms of office• Cultural backgrounds• Settlement patterns• Threats – bushfires, biosecurity, water security, oil prices, shipping and freight• Political priorities – boarder protection, infrastructure, debt management

Bruce here – In out of the office - See you in February

Overview of Australian Market• Geography• Politics – liberal conservative• Currency and exchange rates• Economic policy and drivers • Interest rates and inflation• Corporate tax rates• Unemployment and wages• Cost of living – affordability• Travel times and zones• Holidays – summer vs. winter• Financial reporting periods• Political terms of office• Cultural backgrounds• Settlement patterns• Threats – bushfires, biosecurity, water security, oil prices, shipping and freight• Political priorities – boarder protection, infrastructure, debt management

Overview of Australian Market• Geography• Politics – liberal conservative• Currency and exchange rates• Economic policy and drivers • Interest rates and inflation• Corporate tax rates• Unemployment and wages• Cost of living – affordability• Travel times and zones• Holidays – summer vs. winter• Financial reporting periods• Political terms of office• Cultural backgrounds• Settlement patterns• Threats – bushfires, biosecurity, water security, oil prices, shipping and freight• Political priorities – boarder protection, infrastructure, debt management

• Geography• Politics – liberal conservative• Currency and exchange rates• Economic policy and drivers • Interest rates and inflation• Corporate tax rates• Unemployment and wages• Cost of living – affordability• Travel times and zones• Holidays – summer vs. winter• Financial reporting periods• Political terms of office• Cultural backgrounds• Settlement patterns• Threats – bushfires, biosecurity, organised crime, oil prices, shipping and freight• Political priorities – boarder protection, infrastructure, debt management

Overview of Australian Market

3. Government MarketsAlthough there are central agencies for police services and disaster response (Australian Federal Police and Australian emergency management agency), State Parliaments retain legislative powers in this areas and most of the work is performed by State agencies. Defence, Customs and Border protection are, however, coordinated by the Australian government.

State Governments

AustralianCapital Territory (ACT)

Area 910 km2Population 357,000

Urban Pop 99%

QueenslandArea 669,589 km2

Population 4.332,732Urban Pop 46%

New South WalesArea 309,392 km2

Population 6,917,658Urban Pop 63%

VictoriaArea 87,806 km2

Population 5,354,042Urban Pop 71%

TasmaniaArea 26,222 km2

Population 495,354Urban Pop 41%

Western AustraliaArea 977,445 km2

Population 2,239,170Urban Pop 74%

Northern TerritoryArea 522,083 km2

Population 211,945Urban Pop 54%

South AustraliaArea 380,422 km2

Population 1,596,572Urban Pop 74%

Government Procurement Cycles

Nov- FebApproach to

Market

Feb-MayProcurement

Contracts

Feb – JuneProject

Implementation

April – MayBudget

Submissions

May-JulyBudgets

Approved

This is a typical/general

model

It is not uncommon for tenders to be advertised over the Christmas period

Most state and federal agencies purchase through pre-qualified supplier panel contracts

It is not uncommon for a 10-15% price preference to be factored into selection criteria based on local content.

4. Markets for UK Capability

• Boarder Security and Electronic Surveillance• Emergency Response Systems and Services• Police Investigative Technology and methods• Cyber Security and Organized Crime

Boarder Security – facts and figures

Total flight passenger movements across Australia in 2011 was 134,609,617

Australia has more than 67 ports throughout its coastline.

There are over 30,000 calls to Australian ports by containerships bulk carriers, cargo vessels and other vessels.

Port Security

Emergency Response

Hazards—sources of potential harm orsituations with a potential to cause loss. Many of these hazards are often termed ‘natural hazards’ and include floods, cyclones, earthquakes, heatwaves, windstorms and bushfires

« The security challenges for

Australia will not diminish in the near term. Australia will continue to face a persistent threat of terrorism, espionage, foreign interference, including cyber security threats. At present, the potential for a terrorist attack in Australia is feasible and could well occur »

Security Challenges

Almost 40 motorcycle clubs linked to criminal activities in Australia describe themselves as “outlaw motorcycle gangs” (OMCGs).The most recent assessment of OMCGs identified that there are currently 39 OMCGs operating in Australia, with the number of “patched” members as high as 4000. However, this is only one of the different crime organizations in Australia as for example transnational organizations.

Organized crime – Gangs - Bikies

In 2012, 5.4 million Australians were victims of cyber crime with an estimated cost to the economy of $1.65 billion.

Malicious cyber activity was identified as one of the key national security risks in Australia’s National Security Strategy.

In 2011-12, there were more than 400 cyber incidents against government systems requiring a significant response by the Cyber Security Operations Centre.

Cyber Security

Police Technology Trends

• Mobility• Geospatial• Analytics• Intelligence

Local market advantages and challenges

• Market access – Government procurement processes favors local suppliers.

• Pricing – competition from companies that benefit from a lower cost base in emerging markets.

• Reliability of partners – the ability and capacity of local partners to cover all states and territories

• Coherent marketing – UK security capability is not always promoted as much as the capability of some competitors.

• Universal standards – perceived incompatibility of British security standards with international standards.

• Export controls – dual use nature of some security products adds complexity to the export process.

• Product threat – challenges to protect intellectual property rights (IPR).

Question?

• What do you see as the major impediment to success in this market?

5. Agency profiles and budgets

AFP/ACT Police

• $26M - Asian Football Cup assistance

• $6.4M - Cricket World Cup assistance

• $3.6M - National Anti-Gang Squad to Western Australia

• $6.5M - Operation Sovereign Borders

• $9.7M - Assistance to Papua New Guinea

• Intelligence and Analytical Tools (unspecified).

• CrimTrack Agency• Australian Crime Commission• Australian Security and Intelligence Organisation

Agency Aust Fed Police ACT PoliceKnown as AFP ACT PoliceFormed 1979 1979Area Sq Km 7,692,024 2,358Coastlines - km 35877 54Population 23,488,176 373,100Members 2,855 691Stations/Offices 9 614/15 Budget - AUD $M $1,765

Capital Investment ProjectsAgency Data

Partner Agencies

NSW Police

• $45 million over four years for the Technology Asset Replacement Program, which maintains and replaces critical NSW Police Force information systems supporting frontline service delivery

• $15 million to improve NSW Police Force radio capabilities and network performance

• $7.0 million over two years, including $5 million in 2014-15, for the rollout of an additional 110 mobile Automatic Number Plate Recognition (ANPR) units to NSW Police Force vehicles across the State to improve road safety

• $4.0 million over two years to purchase body worn video cameras for frontline police officers.

Agency NSW PoliceKnown as NSW PoliceFormed 1862Area Sq Km 809,444Mainland Coastlines - km 2,007Population 7,303,700Members 16,248Stations/Offices 42614/15 Budget - AUD $M $3,418

Capital Investment ProjectsAgency Data

Victoria Police

• $2.4M Conducted energy devices (Tasers)

• $26M Police information technology refresh

• $43M Enforcement Services – enhancement/ equipment

• $17M Mobile Camera Replacement Program

• TBA - Digital evidence capture – AV recording equipment

• TBA - Hands Free Radio Kits for Police Vehicles

Agency Victoria PoliceKnown as VICPOLFormed 1853Area Sq Km 237,629Mainland Coastlines - km 1868Population 5,713,000Members 12,500Stations/Offices 32514/15 Budget - AUD $M $2,107

Capital Investment ProjectsAgency Data

QLD Police

Agency QLD policeKnown as QLD PoliceFormed 1864Area Sq Km 1,852,642Mainland Coastlines - km 6973Population 5,027,889Members 10,695Stations/Offices 335Annual Budget - AUD $M $2,000

• $45M Operational Response to Criminal Motorcycle Gangs

• $85M - G20 Event

Capital Investment ProjectsAgency Data

WA Police

Agency WA PoliceKnown as WAPOLFormed 1837Area Sq Km 2,645,615Mainland Coastlines - km 12,889Population 2,517,200Members 8,750Stations/Offices 170Annual Budget - AUD $M $1,324

• $25.4 M computer aided dispatch (CAD) systems upgrades responding to crime and 000 calls

• $1.3 M for extra CCTV networks to help make our streets safer

• Ongoing Digital Evidence Capture Technology

Capital Investment ProjectsAgency Data

SA Police

Agency SA PoliceKnown as SAPOLFormed 1838Area Sq Km 1,043,514Coastlines - km 3816Population 1,650,600Members 5,000Stations/Offices 131Annual Budget - AUD $M 800

• $0.8M Facial recognition technology for biometric identification of individuals - Jun Qtr 2015

• $8M - Implementation of digital CCTV equipment for enhanced prisoner management at various metropolitan and regional locations.

• $4.4M - Purchase of hand-held computers, a portable fingerprint system and an automated number plate recognition system.

• $30 M - Acquisition of a records management system to meet custody management and serious and organised crime legislation.

• $2.2M - Replacement of communications infrastructure including mobile computing and SA Government Radio Network (GRN) devices for operational policing.

Capital Investment ProjectsAgency Data

Tasmanian Police

Agency Tas PoliceKnown as Tas PoliceFormed 1899Area Sq Km 66,822Coastlines - km 2883Population 503,292Members 1,260Stations/Offices 7314/15 Budget - AUD $M $205

State Budget will be released on Thursday 28 August 2014.

Capital Investment ProjectsAgency Data

NT Police

• $21.8 M in 2014-15 for a new two year agreement with ‑the Commonwealth Department of Immigration and Border Protection to provide policing services to immigration detention centres in the Territory.

• $0.91 M additional funding for upgrades to the Northern Territory Fire Alarm System Transmission (NTFAST) fire alarm monitoring system.

• $3.05 M to continue supporting key information, communication and technology systems.

• $2.1 M for the second year of the Commonwealth funded ‑Natural Disaster Resilience program.

Agency NT PoliceKnown as NT PoliceFormed 1911Area Sq Km 1,349,129Mainland Coastlines - km 5437Population 229,700Members 1,381Stations/Offices 70Annual Budget - AUD $M 200

Capital Investment ProjectsAgency Data

Agency Papua New GuineaKnown as PNG PoliceFormed 1950Area Sq Km 462,840Mainland Coastlines - km 5152Population 7,059,653Members 4800Stations/Offices 30+Annual Budget - AUD $M 434Currency KinaRate to GBP 4.21 Kina

PNG Police

Agency Fiji PoliceKnown as Fili PoliceFormed 1874Area Sq Km 18,274Mainland Coastlines - km 4,638Population 858,038Members 1,500Stations/Offices 20Annual Budget - AUD $M 112Currency FJDRate to GBP 3.12 FJD

Fiji Police

Agency Solomon Islands PoliceKnown as RSIPFFormed TBAArea Sq Km 28,400Mainland Coastlines - km 5,313Population 523,000Members 750Stations/Offices 43Annual Budget - AUD $M 32Currency SIDRate to GBP 12.25 SID

Solomon Islands Police

Agency New Zealand PoliceKnown as NZ PoliceFormed 1842Area Sq Km 268,021Mainland Coastlines - km 17,209Population 4,509,461Members 8,453Stations/Offices 401Annual Budget - NZD $M 1.56

6. Specific Project Opportunities

Body worn shift recorders• Current opportunity - $4M• NSW Government approach to market imminent• Other proof of concept trials in progress• Regional market size - >10M every 2-3 years• Issues

– Price and panel access– Workplace regulation– Regional support and service– Ongoing management of content

Record of Interview Systems• More than 2000 units in national use• Opportunities AFP and Vicpol - $ TBC• NSW fleet due for refresh – 300+ units• Regional market size $15-20M every 3-5 years• Issues

– Manufacturer supply capability– National support and service– Ongoing management of content– Regulatory reform

7. Doing Business Down Under

• Quality = support and service• Local presence or partnerships• Sales channels and commissions• Procurement processes– Panels– Local content

• Product reference-ability is key• Currency risk – high exposure (China)• Aging entrepreneurs (baby boomers)

AFP Technology Forum

• Sydney• 24-25th November 2014• Opportunity to participate – 5-6 firms• Well attended – state and federal agencies

8. Questions and discussion

For more information contact

Peter CarterOnshore Partnerspeter.carter@onshorepartners.com.auMobile +61 (0) 418 231 997