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DMO Program 1.1 - Management of Capability Acquisition

Through Program 1.1 the DMO acquires and delivers to Defence, in a transparent and accountable manner, specialist military equipment to enable the delivery of military capability to the Government. Equipment is purchased by DMO acquisition projects in accordance with materiel acquisition agreements between Defence and the DMO. These agreements define what is to be delivered, how much it is to cost and when it is to be delivered. The DMO currently has around 271 active major and minor projects.

Program 1.1 represented around 43 per cent of the DMOs expenses in 2012-13. This generated around $3.1b of military assets for Defence; non-capitalised project expenses were around $0.29b. Program 1.1 performed well overall, achieving its expenditure target and continuing the trend of increase in performance by the DMO and industry. There was significant progress on larger projects, including:

  • Air Warfare Destroyer Build-SEA 4000 Phase 3
  • Future Naval Aviation Combat System Helicopter-AIR 9000 Phase 8
  • Amphibious Deployment and Sustainment-JP 2048 Phase 4A/4B
  • Airborne Early Warning and Control System-AIR 5077 Phase 3.

Table 12.3 DMO Program 1.1: Top 30 major projects-deliverables

Table 12.3 DMO Program 1.1: Top 30 major projects-deliverables
Deliverables for top 30 major projects Performance summary
General Manager Joint, Systems and Air
Aerospace Systems
Air to Air Refuelling Capability (AIR 5402) This project will deliver five new generation Airbus A330 Multi-Role Tanker Transport aircraft, to be known as the KC-30A in Air Force service, and the associated through-life support infrastructure for the new fleet.

During 2012-13, this project delivered the fifth and final KC-30A Multi-Role Tanker Transport aircraft to the RAAF; completed formal accreditation testing of the simulation devices in an interim configuration; completed qualification (contract compliance) testing and documentation for fleet incorporation of changes to the military avionics systems; and commenced qualification testing of the Mission Planning System and improvements to the Aerial Refuelling Boom System.

Sufficient maturity was reached to enable declaration of an initial operational capability for a podded hose and drogue air-to-air refuelling and air logistics services capability. Further development and testing will be needed to achieve contract compliance of both the Mission Planning System and Aerial Refuelling Boom System.

This project is being managed as a project of concern.
Additional C-17A Globemaster III (AIR 8000 Phase 4) This project provides a fifth and sixth C-17A Globemaster III aircraft and related provisions, including an enhanced US-common electronic warfare self-protection system, to the existing global heavy airlift capability acquired under Project AIR 8000 Phase 3.

The sixth C-17A aircraft was accepted by Defence in November 2012 and is now in service. The enhanced US-common electronic warfare self-protection system was installed on the fifth and sixth C-17A aircraft, on schedule, in May 2013 to achieve final materiel release for the project.
Bridging Air Combat Capability (AIR 5349 Phase 1) Phase 1 of the project acquired and delivered 24 F/A-18F Block II Super Hornet multirole aircraft and associated support systems and services. This air combat capability will be maintained through to the transition to the F-35 Joint Strike Fighter.

All remaining elements of F/A-18F aircraft mission and support systems have been delivered with full operational capability declared on 13 December 2012.
C-17 Globemaster III(AIR 8000 Phase 3) This project provides a global heavy airlift capability based around four Boeing C-17 Globemaster III aircraft and related provisions, including an enhanced US-common electronic warfare self-protection system. final operational capability was declared in December 2011.

In 2012-13, this project continued maturing C-17 sustainment requirements, including delivery of spares and the procurement of ancillary items such as a cargo compartment training device, role expansion equipment, ground support equipment and materiel handling equipment.
Maritime Patrol and Response Aircraft System (AIR 7000 Phase 2) The project aims to acquire a manned Maritime Patrol and Response Aircraft, support and training systems and facilities to replace the AP-3C Orion.

A project arrangement was signed with the United States Navy in September 2012 to formalise Australia's participation in the development of the Increment 3 upgrade to the P-8A aircraft weapons and sensors. The project is preparing for second pass government approval in early 2014. Australia has also advised the United States Navy of its expected aircraft production requirements.
Airborne Surveillance for Land Operations (JP 129 Phase 2) This phase of the project delivers two RQ-7B Shadow 200 Tactical Unmanned Aerial Systems, each comprising five air vehicles, two ground control stations, a tactical launch and recovery element, associated tactical support systems, logistics and training.

The Shadow 200 Australia Based Training Contract was signed in December 2012; the first round of training commenced in country in May 2013.

Vehicle and combat radio modifications to Shadow 200 System 2 were successfully completed and tested in April 2013 for Army to conduct in-country exercises and training on a tactically mobile Australianised system.
Airborne Early Warning and Control Aircraft (AIR 5077 Phase 3) The project will provide Defence with an Airborne Early Warning and Control (AEW&C) capability, with the provision of six aircraft and associated supplies and support.

The project delivered the sixth and final aircraft in November 2012; it is capable of supporting the majority of operational tasking with a small number of limitations that were agreed under a final commercial settlement. The Chief of Air Force declared initial operational capability in November 2012, and the project was removed from the projects of concern list in December 2012. Since December 2012, the focus has been on the planning and initiation of remediation work to remove limitations that were the subject of, and mostly funded by, the commercial settlement.
Electronic Systems
Next Generation Satellite Communications System (JP 2008 Phase 4) This project will deliver the next generation satellite communication system. The capability is being delivered under a memorandum of understanding with the United States Government and has delivered Wideband Global Satellite Communications System (WGS) Service to initial operational capability and interim anchoring capability.

During 2012-13, a key project milestone was achieved: the WGS4 satellite has been positioned in the Indian Ocean Region, activated, and is now fully operational. The control infrastructure has been successfully installed and tested and is now actively controlling WGS4; the Interim Anchoring System became fully operational; and the WGS5 satellite was launched by the United States in May 2013.
Ultra High Frequency Satellite Communications (JP 2008 Phase 5A) This project is scoped to deliver UHF satellite communications to the ADF via a hosted payload on a commercial Intelsat satellite. The project will also deliver essential ground infrastructure to provide network control.

During 2012-13, this project completed key design reviews for the delivery of Integrated Waveform capable ground infrastructure to support operations of the ADF payload hosted on the deployed Intelsat IS-22 satellite.
Joint Command Support Environment (JP 2030 Phase 8) This project is an evolutionary acquisition project established to deliver a cohesive and integrated Joint Command support environment for the efficient and effective planning and conduct of ADF operations for Headquarters Joint Operational Command (HQJOC).

During 2012-13, this project delivered the first Evolution 2 capability release to HQJOC. Progressive capability releases are planned to occur in 2013-14. The incorporation of the changes to the Australian Government Security Classification System (classifications and dissemination limiting markers) has necessitated a schedule change for Release 2.
Battle Management System (LAND 75 Phase 3.4) The project is delivering into a Brigade group, and in 2012-13 continued installation and designs for the Unimog, Bushmasters, G-Wagons and Macks, and the M113 armoured personal carrier. The project has delivered more than 400 vehicle installations to the Army. The project has supported the preparation for operational test and evaluation activities to be conducted in mid-2013. The key risk remains finalising the complex design acceptance processes with the respective platform design authorities.
Battlespace Communications Systems (LAND) (JP 2072 Phase 2A) This phase is continuing the roll-out of radios selected under JP 2072 Phase 1, to replace and digitise the dismounted voice Combat Net Radios for the majority of the Land Force. Roll-out of equipment into units commenced, with approximately 2,200 radios delivered to the Army, the Air Force, and training establishments. A capability roadshow is accompanying the roll-out to supplement the acceptance and support of the enhanced communications capabilities. The training package has been finalised and procurement preparations commenced. Mature support contracts for the Phase 1 and 2A equipment have been drafted and are due for release to industry in late 2013. The transition of the capability to sustainment is progressing through a regular transition working group.
New Air Combat Capability
Joint Strike Fighter Aircraft (AIR 6000 Phase 2A/2B) This phase of the program will deliver 14 conventional take-off and landing F-35 aircraft and associated support systems. During 2012-13 production of Australia's first two aircraft progressed on schedule to support a 2014 delivery and 2015 commencement of training. This was despite delays in the contracting processes, of which Australia is a part, between the United States Government and Lockheed Martin.

The Joint Strike Fighter development and test program made slow and steady progress at a sufficient pace to support Australia's planned 2020 initial operating capability requirements.

This statement is supported by an independent review of the program. The review found that overall the F-35A, in the Block 3I configuration, together with its corresponding weapons and support systems, is likely to meet an Australian initial operational capability schedule of 2020.
Helicopter Systems
Multi-Role Helicopter (AIR 9000 Phase 2) The Multi-Role Helicopter (MRH) system consists of 46 MRH-90 helicopters and associated support and training systems for the Army and Navy.

Four MRH-90s were accepted across 2012-13, bringing the total number of aircraft accepted to 20. Key to the program advancing was the award of the MRH-90 Military Type Certificate in April 2013 and the settling of a range of commercial and contractual issues with the prime contractor in May 2013. As part of the negotiated settlement, changes to the acquisition contract re-baselined the delivery and payment schedules, while changes to the sustainment contract introduced an improved set of performance measures, greater intellectual property rights, a repair-by-the-hour pricing basis and better technical data access provisions. A 47th aircraft has also been agreed to be delivered, at no cost, to be used as a maintenance training aid.

This project is being managed as a project of concern.
Future Naval Aviation Combat System Helicopter (AIR 9000 Phase 8) AIR 9000 Phase 8 is acquiring 24 MH-60R Seahawk Romeo helicopters, engineering and logistics support, initial training for aircrew and maintainers, a suite of ground based training devices, air to surface missiles and lightweight torpedos. The acquired system will provide the Navy with a contemporary helicopter-based anti-submarine and anti-surface warfare capability, and the ability to deploy eight embarked flights to Anzac class frigates and Hobart class destroyers.

During 2012-13 the first four Australian aircraft entered production, with the first completing factory test flying in late June 2013 ahead of having the mission system inserted. Production of the first flight simulator and the avionics maintenance trainer commenced, and delivery of initial spares and support and test equipment progressed well. US-based training for the first tranche of Navy aircrew and maintainers commenced in February 2013, with the first aircrew qualifying on the Romeo in May 2013.
Armed Reconnaissance Helicopter (AIR 87 Phase 2) The Armed Reconnaissance Helicopter system has delivered 22 Tiger helicopters, a software support facility, an electronic warfare mission support system, ground mission equipment, facilities and a training system supported by a range of simulation-based training devices.

The final aircraft from the retrofit program, bringing early delivery aircraft up to the mature operational configuration, was accepted in December 2012. The final acceptance milestone was achieved on 28 May 2013, signifying closure of the acquisition contract.
Land Systems
Australian Protected Route Clearance Capability (JP 154 Phase 3A) This project will provide a protected route clearance capability to significantly improve force protection to counter the evolving improvised explosive device threat. Four route clearance systems, including support systems, will be procured. Each system will consist of the following vehicle types:
  • three HUSKY Mark 3.3 protected vehicles (two fitted with GPR and one fitted with an IA)
  • two SMRII (integrated onto protected mobility vehicles, supplied by Land 116
  • two protected HMEE.
In December 2012 this project delivered its initial operational capability in Afghanistan. This included the delivery of procured Australian protected route clearance equipment to Afghanistan and to Australia and the return of Canadian-loaned protected route clearance equipment to the Canadian Government in Montreal.
Upgrade of M-113 Armoured Vehicles (LAND 106) This project will deliver 431 M113 AS4 vehicles in seven variants, namely personnel, fitters, recovery, command, ambulance, logistics and mortar. The project is upgrading the Army's M113 A1 vehicles to improve protection, lethality, mobility and habitability. The upgrade replaces most of the vehicle, retaining only the hull, hatches, rear door and communications systems.

During 2012-13, the project delivered the remaining vehicles in seven variants. The final vehicle was delivered on 24 October 2012, ahead of the December 2012 contracted delivery date. The project delivered the repair parts to support the in-service fleet. In August 2012, the project scope changed to include the Javelin Weapon System, provisioned for but not fitted to the Armoured Personnel Carrier variant. Integration of this weapon system is continuing. LAND 106 has commenced project closure.
Bushmaster Protected Mobility Vehicle (LAND 116 Phase 3) This project was approved to deliver 838 vehicles in seven variants (troop, command, mortar, assault pioneer, direct fire weapon, ambulance and air defence). All 300 vehicles under the original contract have been delivered. Delivery of 144 Enhanced Land Force vehicles was completed in April 2009 and delivery of 293 Production Period 3 (Project LAND 121) vehicles was completed in February 2012. Delivery of the additional 101 Production Period 4 vehicles commenced in February 2012 and was completed in mid-2013.

During 2012-13, this project also finalised the design for the external composite armour capability. A further tranche of up to 214 additional vehicles, known as Production Period 5, was approved in early 2012. The delivery of these vehicles will continue between 2013 and 2015. On receipt of the final vehicle of Production Period 5 in 2015, up to 1,052 Bushmaster vehicles will have been delivered.
Artillery Replacement 155mm Howitzer (LAND 17 Phase 1A) This project will deliver 35 M777A2 lightweight towed howitzers, a command and control battle management system and course correcting fuzes.

During 2012-13, this project conducted a range of system engineering test activities to confirm interoperability with land and joint platforms, finalised the issue of software and hardware items, and established support arrangements for the capabilities.
Digital Terminal Control System (LAND 17 Phase 1B) This project will deliver 152 digital terminal control systems. This capability allows artillery forward observers and joint terminal attack controllers to identify targets with greater accuracy through the use of precision targeting software. It also provides the means to digitally request fire support from land, sea or airborne weapon systems.

During 2012-13, this project conducted a range of system engineering test activities to confirm interoperability with air platforms, the mortar handheld ballistic calculator and the indirect fires command and control system. The project also took delivery of the initial material release version of control terminal software.
Counter Rocket, Artillery and Mortar (LAND 19 Phase 7A) This project will deliver a Counter Rocket Artillery and Mortar sense-and-warn capability for Australian bases in Afghanistan to provide early warning against enemy indirect fire attacks.

During 2012-13, this project achieved final operational capability: in Afghanistan in September 2012 and in Australia in January 2013. These achievements included the delivery of procured Giraffe radars to Afghanistan and Australia, and the return of a leased Giraffe radar to the Swedish Government.
Field Vehicles and Trailers - Overlander Program (LAND 121 Phase 3A/5A) LAND 121 Phase 3A is delivering 2,146 unprotected light/lightweight Mercedes-Benz G-Wagon vehicles, together with specialist modules and associated trailers, to provide the Army and Air Force with tactical mobility for training and the flexibility to undertake a wide range of tasks in difficult off-road conditions. During 2012-13, receipt of production vehicles, modules and trailers, refinement of through-life support and vehicle operator and maintainer training continued. The main roll-out to Army and Air Force units commenced on 2 July 2012. As at 30 June 2013, 759 production vehicles and 537 production trailers had been delivered into service Australia-wide.
Maritime Systems
Amphibious Watercraft Replacement (JP 2048 Phase 3) This project will acquire 12 new watercraft to operate with the landing helicopter dock (LHD) ships. The LHD landing craft provide an organic ship-to-shore connection in support of Defence's amphibious capability. The LHD landing craft will interface and operate with the two Canberra class LHDs and enable transport of personnel and equipment between the LHDs and shore, including where there are no fixed port facilities or prepared landing facilities.

Key activities included the cutting of steel for LHD landing craft 1 to 5; completion of the detailed design review; and the commencement of final assembly and blast and painting of landing craft 1 to 4.
Amphibious Deployment and Sustainment (JP 2048 Phase 4A/4B) This project will acquire two Canberra class amphibious ships, known as LHDs. This project is one of a number of projects grouped under the Amphibious Deployment and Sustainment Program, designed to replace and enhance the Navy's amphibious and afloat support capability. This project completed the lifting of the superstructure blocks onto the hull of the first ship and full consolidation. Installation, integration and testing of the communication and combat systems are progressing. The hull of the second ship was launched in Spain in July 2012.
Anzac Ship Anti-Ship Missile Defence (SEA 1448 Phase 2B) This project will deliver a phased array radar system to the Anzac class frigate for target indication/ tracking, mid-course guidance and target illumination for the Evolved Sea Sparrow Missile in conjunction with other sensor and combat management system upgrades delivered under SEA 1448 Phase 2A.

During 2012-13, this project has advanced the development and testing of the combat management system software; the phased array radar and the navigation radar systems in HMAS Perth. Hardware installation has continued in HMAS Arunta, the second ship to undergo the anti-ship missile defence upgrade. Procurement and prefabrication of materials for the remaining ships was progressed.
Air Warfare Destroyer
Air Warfare Destroyer (SEA 4000 Phase 3) The Air Warfare Destroyer program is being delivered under an alliance-based contracting arrangement between the Commonwealth (DMO), ASC AWD Shipbuilder Pty Ltd and Raytheon Australia. This project will deliver three Hobart class destroyers and their support systems to the Navy. During 2012-13, the project achieved key milestones including Ship 01 keel-laying, delivery of the first Ship 02 blocks, delivery of the final Ship 01 blocks, and delivery of the final Foreign Military Sales equipment for Ship 01's combat system. Ship 01 consolidation is well advanced with more than half the blocks consolidated; work is underway on the majority of Ship 02 blocks and a quarter of Ship 03 blocks. The Air Warfare Destroyer schedule was re-baselined in September 2012, with the three ships to be delivered in March 2016, September 2017 and March 2019. The re-baselining reduces project risk and reduces peak demand on critical resources and facilities.
Explosive Ordnance
Mulwala Redevelopment Project (JP 2086 Phase 1) This project will deliver a modernised propellant manufacturing facility at Mulwala, New South Wales to replace the existing but now obsolete plant that dates back to the 1940s. The modernised facility will meet more stringent and contemporary environmental and work, health and safety standards. The existing Commonwealth-owned Mulwala facility, which manufactures propellants for incorporation into ADF munitions, is operated by Thales Australia Limited.

During 2012-13, this project continued with the commissioning of the modernised propellant manufacturing facility at Mulwala. The commissioning process includes performance testing of the facility and the manufacture of military grade propellants. Following acceptance by the Commonwealth in 2014, the modernised facility will be transitioned to Thales Australia Limited for operation.
Bridging Air Combat Capability (AIR 5349 Phase 2) This project is running concurrently with AIR 5349 Phase 1 to deliver the Bridging Air Combat Capability. This project will introduce into service a number of new weapons and countermeasures under the Australian Super Hornet program. These weapons will significantly enhance the Air Force's ability to conduct air, land and maritime strike operations. During 2012-13, this project achieved final material release for the AGM-154 Joint Stand Off Weapon variant C, the AIM 9X air-to-air missile and upgrades to the existing advanced medium range air-to-air missile capability. The AGM-154 Joint Stand Off Weapon variant C-1 and new advanced medium range air-to-air missile programs have been delayed within the United States Navy and United States Air Force. The updated schedules for delivery are 2014 and 2015 respectively. The project office continues to work with the United States Air Force and United States Navy to monitor their programs and to manage introduction into service of these capabilities with the Air Force.
Lightweight Torpedo Replacement (JP 2070 Phase 2) This project is being managed in conjunction with JP 2070 Phase 3. This project will deliver MU90 anti-submarine lightweight torpedoes integrated with the Anzac and Adelaide class frigates.

During 2012-13, this project completed modifications to the torpedo tubes for all Anzac and Adelaide class frigates, established an in-service support contract for the shipborne torpedo system, established a recovery system for exercise weapons, tested and accepted loading and handling equipment and took delivery of a significant number of spares. On 5 June 2013, the DMO claimed final materiel release for JP 2070 phases 2 and 3.

Top 30 major projects by expenditure

Table W12.1 provides details of the top 30 major projects (by forecast expenditure in the Portfolio Budget Statements 2012-13). Expenditure for the top 30 major projects represented 74 per cent of total expenditure on major capital equipment projects in 2012-13.

Table W12.1 Top 30 major projects by expenditure as forecast in the 2012-13

Table W12.1 Top 30 major projects by expenditure as forecast in the 2012-13
Project name Project number/ phase  Approved project expenditure Cumulative expenditure to 30 June 2012 Budget estimate 2012–13 Revised estimate 2012–13[1] Final plan 2012–13[2] Actual expenditure 2012–13[3] Variation
    $m $m $m $m $m $m $m 
            (a) (b) (b-a) 
General Manager Joint, Systems and Air
Aerospace Systems
Air to Air Refuelling Capability AIR 5402 1,803 1,466 174 119 118 91 -27
Additional C-17A Globemaster III AIR 8000Phase 4 554 419 51 4 4 3 ..
Bridging Air Combat Capability AIR 5349
Phase 1
3,281 2,697 49 29 29 29 1
C-17 Globemaster III AIR 8000
Phase 3
1,845 1,336 40 10 10 9 ..
Maritime Patrol and Response Aircraft System AIR 7000
Phase 2
172 72 31 27 27 27 ..
Airborne Surveillance for Land Operations JP 129
Phase 2
93 47 27 17 16 16 ..
Airborne Early Warning and Control Aircraft AIR 5077
Phase 3
3,844 3,255 289 209 207 198 -9
Electronic Systems
Battlespace Communications Systems (LAND) JP 2072
Phase 2A
441 59 156 101 99 99 ..
Next Generation Satellite Communication System JP 2008
Phase 4
864 468 116 90 89 75 -14
Joint Command Support Environment JP 2030
Phase 8
256 123 47 25 25 24 -1
Ultra High Frequency Satellite Communications JP 2008
Phase 5A
436 312 43 18 18 17 -1
Battle Management System LAND 75
Phase 3.4
308 132 33 52 51 52 1
New Air Combat Capability
Joint Strike Fighter Aircraft AIR 6000
Phase 2A/2B
2,592 130 103 111 110 98 -12
Helicopter Systems
Multi Role Helicopter AIR 9000
Phase 2
3,650 2,048 260 156 155 131 -24
Future Naval Aviation Combat System Helicopter AIR 9000
Phase 8
2,958 254 145 207 205 213 8
Armed Reconnaissance Helicopter AIR 87
Phase 2
2,032 1,813 72 51 51 45 -6
General Manager Land and Maritime
Land Systems
Field Vehicles and Trailers-Overlander Program LAND 121
Phase 3A/5A
991 233 132 152 152 154 2
Bushmaster Protected Mobility Vehicle LAND 116
Phase 3
1,247 771 58 57 88 87 -1
Counter Rocket, Artillery and Mortar (C-RAM) LAND 19
Phase 7A
254 147 55 30 29 28 -1
Artillery Replacement 155mm Howitzer LAND 17
Phase 1A
324 122 29 15 14 13 -1
Digital Terminal Control System LAND 17
Phase 1B
115 33 35 8 8 7 -1
Australian Protected Route Clearance Capability JP 154
Phase 3A
74 13 29 18 18 19 ..
Upgrade of M-113 Armoured Vehicles LAND 106 885 768 26 23 23 22 -1
Maritime Systems
Anzac Ship Anti-Ship Missile Defence SEA 1448
Phase 2B
676 340 52 67 67 65 -2
Amphibious Deployment and Sustainment JP 2048
Phase 4A/4B
3,074 2,185 158 210 209 206 -4
Amphibious Watercraft Replacement JP 2048 Phase 3 221 17 59 33 33 32 -1
Air Warfare Destroyer
Air Warfare Destroyer Build SEA 4000
Phase 3
7,869 3,840 622 621 619 725 106(4)
Explosive Ordnance
Bridging Air Combat Capability AIR 5349
Phase 2
275 123 54 14 13 14 1
Lightweight Torpedo Replacement JP 2070
Phase 2
336 250 33 26 26 24 -2
Mulwala Redevelopment Project JP 2086
Phase 1
369 314 28 17 17 15 -2
Total top 30 projects   41,837 23,785 3,007 2,515 2,529 2,538 9
Notes
  1. 2012-13.
  2. The final plan for 2012-13 is the final approved annual plan for the project inclusive of variations for foreign exchange movements and changes to materiel acquisition agreements.
  3. Actual expenditure will include transactions in foreign currency applicable at the exchange rate at the time of the transaction. The budget estimate, revised estimate and final plan will include foreign currency exposures converted using the budgeted exchange rates applicable to the respective budget update.
  4. Variance is a result of labour, subcontract and materiel fluctuations from the alliance industry participants in achieving the production schedule.

Table W12.2 Variation to project approval for the 2012-13 top 30 major projects

Table W12.2 Variation to project approval for the 2012-13 top 30 major projects
Project number / phase Initial project approval date  Original approval Price indexation variation Exchange variation Real variation[1] Current approval Real variations 2nd pass approval[2] Scope[3] Transfers[4] Other[5] Total real
    $m $m $m $m $m $m $m $m $m $m
General Manager Joint, Systems and Air
Aerospace Systems
AIR 5402 17 Jul 03 2,077 484 -469 -289 1,803 - - -136 -154[6] -289
AIR 8000 Phase 4 16 Mar 11 291 - -10 272 554 272[7] - - - 272
AIR 5349 Phase 1 31 Jul 07 3,546 367 -393 -240 3,281 - - -132 -107[8] -240
AIR 8000 Phase 3 1 Mar 06 1,864 124 -141 -2 1,845 - - -2 - -2
AIR 7000 Phase 2 16 Jul 07 144 21 -17 24 172 84 -22 -38 - 24
JP 129 Phase 2 30 Sep 04 2 24 -30 97 93 97 - - .. 97
AIR 5077 Phase 3 1 Dec 97 2,170 723 -109 1,059 3,844 - 226[9] 619 215[10] 1,059
Electronic Systems
JP 2072 Phase 2A 1 Nov 11 436 - 5 - 441 - - - - -
JP 2008 Phase 4 28 Sep 07 885 132 -154 - 864 - - - - -
JP 2030 Phase 8 22 Aug 06 42 8 .. 207 256 98 109[11] - - 207
JP 2008 Phase 5A  16 Feb 09 4 18 -43 457 436 457 - - - 457
LAND 75 Phase 3.4 6 Dec 05 8 16 -34 318 308 325 - - -7[12] 318
New Air Combat Capability
AIR 6000 Phase 2A/B 7 Apr 10 2,752 351 -507 -3 2,592 - - - -3 -3
Helicopter Systems
AIR 9000 Phase 2 22 Apr 04 3 680 -345 3,312 3,650 954 2,597[13] -239 - 3,312
AIR 9000 Phase 8 10 Jul 09 .. .. -71 3,029 2,958 3,029 - - .. 3,029
AIR 87 Phase 2 16 Mar 99 1,584 418 120 -91 2,032 - - -84 -7 -91
General Manager Land and Maritime
Land Systems
LAND 121 Phase 3A/5A 14 Aug 07 2,686 691 -190 -2,197 991 -2,187[14] -15[15] 4 - -2,197
LAND 116 Phase 3 30 Nov 98 295 125 -6 833 1,247 221 619[16] -7 - 833
LAND 19 Phase 7A 28 Apr 10 266 5 -17 - 254 - - - - -
LAND 17 Phase 1B 14 Feb 06 3 .. .. 112 115 112 - - - 112
LAND 17 Phase 1A 30 Nov 09 348 17 -42 - 324 - - - - -
JP 154
Phase 3A
5 Dec 11 74 - .. - 74 - - - - -
LAND 106 1 Nov 93 40 155 .. 691 885 - 441[17] 252 -2 691
Maritime Systems
SEA 1448 Phase 2B 1 Nov 05 249 76 -12 363 676 215[18] - 149 - 363
JP 2048 Phase 4A/4B 27 Jan 04 3 428 -322 2,965 3,074 2,950 5[19] 9 .. 2,965
JP 2048 Phase 3 24 Feb 09 3 .. -8 225 221 225 - - - 225
Air Warfare Destroyer
SEA 4000 Phase 3 19 Jun 07 7,207 1,173 -511 - 7,869 - - - - -
Explosive Ordnance
AIR 5349 Phase 2 31 Jul 07 182 24 -30 99 275 - - 99 - 99
JP 2070 Phase 2 3 Jul 01 288 63 -14 .. 336 - - - .. ..
JP 2086 Phase 1  5 Oct 06 338 46 -14 .. 369 - - - - -
Notes
  1. 'Real variation' is the total of all variations except 'Price indexation' and 'Exchange'. Real variations are divided into 'Second pass approval', 'Scope', 'Transfers' and 'Other'.
  2. Second pass approval-under processes introduced as part of the Kinnaird reforms, major capital equipment projects are now generally managed in two stages-a definition stage, which is funded at first pass, and an acquisition stage, which is funded at second pass. On occasion, the second pass stage is funded as a separate project. Many of the projects detailed in Table W12.2 were approved before the two-pass process was implemented.
  3. Scope-any real cost increase or decrease provided to address a formal scope increase or decrease.
  4. Transfers-any real cost increase or decrease to a project as a result of a transfer in budget to another project or group, or to sustainment with no net change to the existing project approval.
  5. Other-all other real variations, for example real Increases needed to fund underestimates or budget overruns.
  6. Other variation consists of a $149.4m funding adjustment to another project, $1.1m in administration savings and a saving of $3m in the Skilling Australia's Defence Industry Program.
  7. Project cost increase of $272m for the acquisition of additional Boeing C-17 Globemaster III Aircraft.
  8. Variation consists of savings negotiated in contract.
  9. Increase in scope associated with the decision to purchase two additional aircraft (to a total of six) in June 2004.
  10. Variation is due to a retrospective correction to an underestimate for indexation and partial funding for additional two aircraft.
  11. Increase in scope to further develop the Joint Planning Suite approved in September 2011.
  12. The Government agreed at the 2012-13 Budget to reduce scope by cancelling the installation in the M-113 fleet.
  13. Incorporation of Phase 4 Black Hawk upgrade/replacement and Phase 6 Maritime Support Helicopter and Full Flight and Mission Simulator facilities, April 2006.
  14. Decrease in scope to recognise the transfer and management of Medium and Heavy Capability, Field Vehicles, Modules and Trailers to LAND 121 Phase 3B.
  15. Reduction represents the return of Enhanced Land Force Funding.
  16. Increase in scope associated with the purchase of 250 additional vehicles for the Enhanced Land Force Budget Measure and the procurement of Long Lead Supplies and the production of up to 50 Command Variant and 158 Troop Variant Bushmaster Protected Mobility Vehicles.
  17. Result of the Defence White Paper deliberations, ($227m) inclusion of an additional 81 M-113 Armoured Personnel Carriers ($214m).
  18. The Acquisition Strategy, approved by the Government on 21 November 2011, to deliver the full Stage 2 Anti Ship Missile Defence capability to ships 2 to 8, installation through the Alliance and complete the Stage 2 capability in HMAS Perth.
  19. Increase in scope due to risk reduction activity for the project to obtain design data and develop designs to meet Australian essential requirement-between first and second pass.

Previously reported top 30 major projects - current status

Table W12.3 provides an update on major projects that are not included in the current year top 30 but were reported upon in previous years.

Table W12.3 Current status of previously reported top 30 projects

Table W12.3 Current status of previously reported top 30 projects
Project name Project number/ phase  Last financial year reported in top 30  Approved project expenditure Cumulative expenditure to 30 June 2012 Actual 2012–13 Status report
      $m $m $m   
General Manager Joint, Systems and Air
Aerospace Systems
AP-3C Electronic Support Measure Upgrade AIR 5276 Phase 8B 2009-10 130 79 11 This project was listed as a project of concern in October 2010 due to schedule delay. The project completed regression laboratory testing of the system, however further software deficiencies were identified, requiring rework and retesting. While prototype flight testing was conducted in May 2013 and was broadly successful, the completion of flight testing has been re-forecast to avoid schedule conflict with deeper maintenance of the prototype aircraft from May 2013.
F/A-18 Hornet Upgrade AIR 5376 Phase 2 2011-12 1,879 1,612 24 This project provides several upgrades to the F/A-18 (Classic) Hornet fleet to achieve improved mission situational awareness, including radar and electronic warfare capabilities. Project initiatives also provide for an updated flight simulator for F/A-18 aircrew training, delivered initially as part of an earlier phase to the project. The project achieved final materiel release for electronic warfare elements in September 2012. Updates to the flight simulator for F/A-18 aircrew training are being undertaken to better align the simulator with the upgraded aircraft capability.
AP-3C Capability Assurance Program AIR 5276 CAP 1 2009-10 88 65 4 Capability 1 will establish a standardised electro-optical infra-red (EO-IR) sensor baseline, replace the existing EO-IR/radar video recorder, acquire a tactical common data link and install a local area network on the P3-C Orion. The project successfully achieved Initial operational capability following the modification of an additional six AP-3C Orion aircraft and the supporting operational mission simulator.
Electronic Systems
Battlespace Communications Systems JP 2072 Phase 1 2011-12 257 187 20 All of the identified mission system elements, including combat net radios and tactical data radios, have been successfully introduced into service. An additional quantity of ancillary items, in continued support of the Land 75 Battle Management System, will be delivered in late 2013. The interim support system has been established, with transition of management responsibilities from JP 2072 Phase 1 to JP 2072 Phase 2A well underway. Deliverables to satisfy final materiel release are being finalised in consultation with the capability manager.
High Frequency Modernisation JP 2043 Phase 3A 2010-11 580 438 3 The Null Steering Signal Enhancement (Nullarbor) capability was progressed as programmed along with work to address obsolescence issues resulting from delays by Boeing Defence Australia in delivery of the final system. Nullarbor negotiations are ongoing. Network Management Facility's information technology refresh and KIV7M integration testing continue.
ADF Deployable Logistics Systems JP 2077 Phase 2B.2 2011-12 49 21 .. Closed in May 2013.
Dismounted Battlegroup and Below Command, Control Communication System LAND 125 Phase 3A 2011-12 105 55 26 Land 125 Phase 3A has accepted more than 1,300 battle managements systems for the soldier and more than 100 dismounted command posts. The project has supported the preparation for operational test and evaluation activities to be conducted in mid-2013. Following operational test and evaluation, further enhancements may be incorporated where possible to reduce the overall weight of the system.
Tactical Information Exchange Domain JP 2089 Phase 2A 2010-11 103 60 8 The Anzac FFH Multi-Link upgrade activity completed its combat management system test readiness review, first of class hardware installation, and multi-link testing. Due to the dependencies on Sea 1448 Phase 2B (Stage 2), anti ship missile defence initial operational release is now scheduled for late 2013 or early 2014. The Initial common support infrastructure successfully demonstrated fixed infrastructure during Exercise Pitch Black 2012 and finalised the functional and performance specification for JP 2089 Phase 3A.
New Air Defence Command and Control Systems for Control Units 2 and 3 AIR 5333 2011-12 274 246 .. Final materiel release was completed in August 2012, with the Air Force declaring final operational capability in December 2012. Project closure is expected to be achieved in December 2013.
MILSATCOM Terrestrial Infrastructure JP 2008 Phase 3E 2007-08 208 207 .. During 2012-13, through-life support arrangements for the Maritime Advanced Satellite Terrestrial Infrastructure System radio frequency barriers has been finalised and will be conducted by Defence Science and Technology Organisation. Project closure activities have commenced.
Electronic Warfare Self Protection for Selected Aircraft AIR 5416 Phase 2 2009-10 276 276 -[1] Closed.
Improvements to the Logistics Information Systems JP 2077 Phase 2B 2009-10 152 152 -[1] Closed.
New Air Combat Capability
Detailed Analysis and Acquisition Planning AIR 6000 Phase 1B 2009-10 103 98 - This project has been completed.
General Manager Land and Maritime
Land Systems
Australian Light Armoured Vehicle Additional LAND 112 Phase 3 2007-08 651 608 22 The project has delivered in total 144 new Australian Light Armoured Vehicle Phase 3 vehicles; 59 behind armour Commander's Weapon Stations; 9 crew procedural trainers and has standardised the Phase 2 fleet to an approximate Phase 3 build standard. Delivery and installation of 18 Multi-Spectral Surveillance Suites was completed during 2012-13.
Tank Replacement Project LAND 907 Phase 1 2007-08 558 446 3 The project has delivered all key milestones. The Foreign Military Sales cases have been progressed to deliver the two remaining elements of the tank urban survivability kit-the commander's weapon station and remote thermal sight and the cases for the mine ploughs and deep water fording kits. Training for these systems was conducted and construction work commenced to upgrade the simulator building in Darwin.
Direct Fire Support Weapons LAND 40 Phase 2 2010-11 145 37 2 The M3 Carl Gustaf and sight has been delivered and the system has been introduced into service. Defence is formulating a way forward for the lightweight automatic grenade launcher component, for consideration by government.
Maritime Systems
Anzac Ship Project SEA 1348 Phase 2 2007-08 5,381 5,371 7 Engineering configuration changes to implement warranty and safety upgrade work have been delivered and set to work on each platform, except HMAS Arunta, which is planned for completion in quarter three of 2013.
Armidale Class Patrol Boat SEA 1444 Phase 1 2007-08 537 488 .. The project is undertaking closure activities.
Guided Missile Frigate Upgrade Implementation SEA 1390 Phase 2.1 2010-11 1,450 1,349 3 The project has developed a business case to implement the Navy-directed solution to its underwater warfare system component and is awaiting Navy approval to proceed.
Standard Missile Replacement SEA 1390 Phase 4B 2011-12 400 307 20 Installation of the SM-2 mid-course guidance system software in all Adelaide class ships has been completed and the capability is being considered for operational release within Navy.
Ships Self Defence Capability Additional SEA 1779 Phase 1 2007-08 44 44 -[1] Closed.
Explosive Ordnance
Lightweight Torpedo Replacement JP 2070 Phase 3 2011-12 300 258 13 This project is being managed in conjunction with
JP 2070 Phase 2. This project will deliver an Australian manufacturing and support capability for the MU90 anti-submarine lightweight torpedo and sufficient quantities of MU90 torpedoes to meet war reserve requirements. During 2012-13, this project completed the procurement of MU90 Torpedo war stock inventory. Final materiel release was claimed by the DMO for JP 2070 phases 2 and 3 on 5 June 2013.
Explosive Ordnance Reserve Stocks JP 2085 Phase 1B 2008-09 235 205 1 All munitions planned for acquisition have been delivered. Live firings of Excalibur and SMART 155 have been successfully completed with both the rounds now certified for use. Introduction into service of the advanced field artillery tactical data system, including its integration with the Bushmaster protected mobility vehicle, is substantially complete.
Follow-On Stand Off Weapon AIR 5418 Phase 1 2011-12 316 277 7 This project will deliver the AGM-158A Joint Air to Surface Standoff Missile to improve the effectiveness and survivability of the F/A-18A/B Hornet for standoff strike against fixed and re-locatable land targets. During 2012-13, the final quantity of missiles was delivered to Australia and accepted by the DMO. The planned declaration of final materiel release was rescheduled to address project delay caused by technical issues, which have now been successfully resolved by the United States Air Force.
Evolved Sea Sparrow Missiles SEA 1428 Phase 4 2009-10 88 84 .. This project will deliver a follow-on buy of Evolved Sea Sparrow Missiles and canisters for the Anzac and Adelaide class frigates. During 2012-13, additional deliveries occurred consistent with the approved project schedule. The project remains on schedule for closure in 2016.
General Manager Submarines
Collins
New Heavyweight Torpedo SEA 1429 Phase 2 2009-10 425 293 6 Heavyweight torpedo modifications continue, dependent on the submarine full-cycle docking program. The fleet-wide installation will be complete when HMAS Collins is modified. The final delivery of weapons was made in January 2012, although software development to meet the specified operational performance continues.
Collins Class Submarine Reliability and Sustainability SEA 1439 Phase 3 2008-09 411 327 8 Modifications to the Submarine fixed fire-fighting system, automation of the sewage system, diesel engine safety improvements and submerged signal ejector remediation continues during the programmed major maintenance periods. Construction of the diesel engine land-based test facility is underway.
Collins Replacement Combat System SEA 1439 Phase 4A 2007-08 450 429 3 Combat system installations continue, dependent on the submarine full cycle docking program.
Note
  1. Project closed in 2012-13-see Table W12.5, Closed major projects in 2012-13.

New major projects

During 2012-13, eight major projects were transferred to the DMO following government approval. These are shown in Table W12.4. The DMO classifies a project as having been transferred on the signing of the materiel acquisition agreement between the DMO and Defence.

Table W12.4 New major projects transferred to the DMO in 2012-13

Table W12.4 New major projects transferred to the DMO in 2012-13[1]
Project name Project number/ phase  Budget estimate 2012–13 Actual expenditure 2012–13 Acquisition cost categorisation[2] Project information
    $m $m    
General Manager Joint, Systems and Air
Aerospace Systems
Growler Airborne Electronic Attack Capability AIR 5349 Phase 3 37 37 Level 1 The Government announced the decision to purchase the 12 new-build Growler electronic attack aircraft on 3 May 2013 instead of converting 12 of Australia's existing F/A-18F Super Hornet aircraft into the Growler configuration. Australia is the first country after the United States to secure such a capability. The Growler aircraft will start to roll off the Boeing production line from 2015 and, following initial aircrew training in the United States, be progressively delivered to Australia from mid-2017.
C-130J Capability Management Update Program AIR 5440 Phase 3 .. - Level 4 Combined first and second pass. The C-130J Capability Management Update Program is an international collaborative program to maintain the reliability and maintainability of C-130J systems through regular updates. The core designs and deliverables for the program are dependent upon completion of preceding block upgrade phases,
AIR 5440 phases 1 and 2.
General Manager Land and Maritime
Land Systems
Replacement Aviation Fire Truck (RAFT) Capability LAND 998 Phase 1 .. .. Level 4 First pass. This project will deliver a replacement aviation fire truck fleet to replace the existing Titan fleet. This capability will provide an airbase emergency response and recovery service to fixed Australian Defence Force airbases and to expeditionary airbases.
Enhanced Gap Crossing Capability LAND 155 Phase 1 .. .. Level 4 First pass. Land 155 Phase 1 will provide Land Forces with the ability to cross a range of wet and dry gaps in support of combat operations. It will provide the capability to tackle complex physical terrain features such as rivers, ravines and other natural and man-made gaps to achieve the agility required in future operating environments. The project achieved government first pass approval on 12 February 2013. Two capability options are proposed for further development under Land 155 Phase 1. These options address the same capability requirement but the solution is achieved through a different mix of four bridge types: Rapid Emplacement Bridge, Floating Bridge System, Modular Bridge System, and Footbridge. Since first pass approval the key task has been the production of four acquisitions and four support requests for tender (RFTs). RFT documentation is on schedule for release in late July 2013.
Additional Lightweight Towed Howitzers LAND 17 Phase 1C.1 6 24 Level 4 First pass. This project will deliver 19 M777A2 Lightweight Towed Howitzers (approved October 2012) and a Capability Assurance Program (not yet approved). The Capability Assurance Program will provide associated enabling systems for the 19 M777A2 Howitzers to constitute a complete mission system and an assurance program for the entire fleet of 54 Howitzers. During 2012-13, the project implemented an amendment to an existing Foreign Military Sales case for the additional howitzers and also supported progression of the Capability Assurance Program business case for government consideration.
General Manager Submarines
Future Submarines
Future Submarines-Acquisition (Analysis of Alternative Design Concepts) SEA 1000 Phase 1A 35 14 Level 3  SEA1000-Future Submarines Program is currently evaluating options available for the replacement of the Collins class submarines for government consideration. During 2012-13, SEA1000 delivered the following key activities:
  • intermediate pass submissions for government consideration of strategic guidance, governance and industry workforce
  • acquisition of broad Collins class intellectual property rights to enable its use for the Future Submarines and its successors
  • a combat system evaluation study
  • delivery of science and technology plan activities for one year
  • intermediate pass submissions for government consideration of the combat system; the Submarine Propulsion Energy Support and Integration Facility preliminary study outcomes; and status of options studies.
The Government decided in April 2013 to focus resources on options 3 and 4 (Evolved Collins class design and bespoke design). Work on options 1 and 2 has been suspendedThe Government also approved the use of the current combat system AN/BYG-1 as the reference material for design work on options 3 and 4.
Notes
  1. Two new classified projects have been created during 2012-13 and are not included in this table due to their classified nature.
  2. Acquisition cost categorisations are taken from the Defence Capability Plan where applicable and are as follows:
    • Level 1 (very high): >$1,500m
    • Level 2 (high): $500m-$1,500m
    • Level 3 (moderate): $100m-$500m
    • Level 4 (low): <$100m.

Closed major projects

In 2012-13, the materiel acquisition agreements for 13 major projects were successfully closed. All materiel acquisition agreements' deliverables were delivered and accepted with no outstanding issues and consequently closed. The DMO continues to work closely with Capability Development Group and other stakeholders to ensure that all closures comply with, and maintain the integrity of government approvals.

The total reduction of project approval at closure represented 9 per cent of the project approval value for these projects.

Table W12.5 Closed major projects in 2012-13

Table W12.5 Closed major projects in 2012-13[1]
Project name Project number/ phase  Project approval value Total expenditure Savings in project approval[2]
    $m $m  $m
General Manager Joint, Systems and Air
Aerospace Systems
C130J Electronic Warfare Self-Protection and Ballistic Protection Project AIR 5416 Phase 4A 23 17 6
Electronic Systems
Tactical Air Defence Radar System AIR 5375 Phase 1 220 174 46
Electronic Warfare Self Protection for Selected Aircraft AIR 5416 Phase 2 292 276 16
Passive Infrared Suppression Systems for ADF Aircraft AIR 5433 CTD 5 5 ..
Enhancement to Special Operations Capability JP 2042 Phase 4 32 28 4
Improved Logistics Information Systems JP 2077 Phase 2B 153 152 1
General Manager Land and Maritime
Land Systems
Direct Fire Guided Weapon Project LAND 40 Phase 1 144 135 9[3]
Maritime Systems
Landing Craft Mechanised JP 2048 Phase 1A 57 45 12
Mine Hunter Coastal SEA 1555 Phase 2 1,266 1,166 100
Ship Self Defence Capability-Rapid Acquisition of Amphibious Ships Weapon Capability SEA 1779 Phase 1 53 44 8
Explosive Ordnance
Air to Air Missile Capability AIR 5400 Phase 3 181 154 27
Evolved Sea Sparrow Missile Project SEA 1428 Phase 2B/3 264 262 2
Total   2,690 2,458 232
Notes
  1. One classified project has been closed during 2012-13 and is not included in this table due to its classified nature.
  2. This is the reduction in materiel acquisition agreement agreed price at project closure and includes transfers to other projects and sustainment products to enable more efficient delivery of remaining scope.
  3. $1.5m transferred to LAND 106, $1.2m transferred to the Foreign Military Sales Finalisation Project, and $6.5m transferred to MSA CA60-Guided Weapons Army.

Top 10 minor projects

Minor projects are undertaken to address emerging requirements-often to enhance or replace existing capability. They are funded from outside the Defence Capability Plan and are usually of relatively low value. There are currently about 87 such projects, with an average value of approximately $9m. A total of $70m was expended on minor capital investment projects during 2012-13, compared to $77m in 2011-12.

Top 10 minor projects performance summary

An assessment of the performance of the top 10 minor projects against the deliverables in the materiel acquisition agreements (described in the Portfolio Budget Statements 2012-13) is provided in Table W12.6.

Table W12.6 Top 10 minor capital investment projects deliverables in Program 1.1 in 2012-13

Table W12.6 Top 10 minor capital investment projects deliverables in Program 1.1 in 2012-13
Project name Project number Performance summary
Army
Enhanced Static Line Parachute AMP058.08 The Enhanced Static Line Parachute Capability has two components: the Static Line Parachute System and the Dispatcher Parachute System. The Static Line Parachute System is to be delivered under Foreign Military Sales arrangements.

During 2012-13, this project delivered all key milestones including delivery of steerable and non-steerable static line parachutes, and reserve and dispatcher parachutes. A wide range of spares, support and test equipment, training and training materials have also been delivered to meet the ADF's in-service support and training needs. The initial materiel release milestone was achieved on 17 June 2013.
Australian Light Armoured Vehicle Crew Procedural Trainers AMP002.12 This project will deliver nine Australian Light Armoured Vehicle crew procedural trainers to supplement the existing nine crew procedural trainers that were introduced into service in 2006. The facilities housing the crew procedural trainers are also being upgraded.

During 2012-13, this project successfully delivered eight crew procedural trainers to Puckapunyal, Victoria (three), Townsville, Queensland (four) and Darwin, NT (one). A through-life support contract was agreed in December 2012, with the support spares being accepted in April 2013. Conversion training has been conducted at Puckapunyal and Townsville.
Enhanced Land Force (ELF) Weapons Training Simulator System (WTSS) AMP029.44 This project has delivered an initial capability for four of five additional weapons training simulation systems. These systems are located at RAAF Edinburgh, South Australia; Townsville, Queensland; Singleton and Kapooka, New South Wales, with the last site at Enoggera, Queensland on schedule for completion in late 2013. The initial capability comprises the supply and installation of simulated weapons types currently in ADF service. The final capability comprises the introduction into service of new simulated weapon types, ammunition natures and training scenarios not currently in ADF service. A contract for the delivery of the final capability at these five sites is scheduled for signature in late 2013, with deliveries expected to commence in mid-2014.
Chinook Passenger and Crew Seating AMP015.36 This project delivers crashworthy passenger and crew seats to five CH-47D Chinook helicopters. The solution encompasses contemporary seats, a new floor, an improved cargo system and under floor ballistic protection. The project is currently undergoing design acceptance activities. AIR 9000 Phase 5D aircraft will also adopt the AMP015.36 solution, but funded by AIR 9000 Phase 5D. The design solution will also be integrated into CH-47F procured under AIR 9000 Phase 5C.

During 2012-13 this project delivered design products and test results for the certification and modification of the CH-47D Chinook helicopter with a contemporary crashworthy passenger and crew seating solution. The final design could not be completed in time to modify aircraft as scheduled. Design completion and installation is now scheduled for 2013-14.
Army Field Catering Equipment AMP500.09 This project will deliver a range of field catering equipment for the Army and its associated logistic support for introduction into service.

During 2012-13, this project delivered 329 griddle plate barbecues and 173 roasters including integrated logistics support documentation. Deliveries were completed in June 2013.

This project also tendered for bain-maries and steamers.
Kiowa Pilot Seating AMP15.58 This project will integrate a commercial-off-the-shelf aeronautical energy-attenuating seat installation from Accessories Incorporated, including a five-point restraint harness assembly, into 29 ADF Kiowa aircraft. The project was initiated primarily to help overcome pilot sitting height restrictions, but more recently Kiowa was also assessed against the developing ADF aircraft crash protection policy and found to be lacking. The project increases the sitting height and improves crashworthiness of the aircraft.

During 2012-13, this project completed the design and modification of the crew seats to one Bell 206B-1 Kiowa helicopter for assessment by Army aviation. The assessment identified a number of improvements required to the prototype design, delaying installation of the second prototype to 2013-14.
Traffic Collision and Avoidance System (TCAS) AFM1001 The project is installing a traffic alert and collision avoidance system onto AP-3C Orion aircraft to enhance the safety awareness and de-confliction with other air traffic, including civil aircraft, in all aspects of flight.

During 2012-13, this project successfully achieved initial operational capability following the modification of an additional four AP-3C aircraft and the supporting aircrew flight training simulator. The support system was also established.
Broadband AFM1004 This project will deliver an enhanced satellite communications capability for a number of ADF surveillance aircraft.

During 2012-13, this project completed the broadband installation on the first aircraft and service release was declared for the aircraft with effect from April 2013. The broadband capability also successfully completed operational testing in June 2013. The second and final aircraft has commenced broadband installation.
462 SQN Electronic Combat and Monitoring System AFM0977 During 2012-13, this project was reviewed by the Air Force to determine minor project priorities due to funding constraints. The outcome of the review was to cancel this project.
RAAF Intelligence Deployable LAN (RIDL) AFM1003 This project will deliver a secure and networked intelligence analysis capability that can be deployed to remote locations with minimal information and communications technology support.

During 2012-13, the project achieved final materiel release. An additional 22 deployable Local Area Networks were delivered to Air Force tactical intelligence flights, followed by achievement of accredited connectivity to the Defence Secret Network, delivery of training to the users, and establishment of a support network for the system. Operational test and evaluation by the Air Force commenced in June 2013. Transition to sustainment was completed in June 2013.

Table W12.7 Top 10 minor capital investment projects in 2012-13

Table W12.7 Top 10 minor capital investment projects in 2012-13
Project name Project number/ phase Approved project expenditure Cumulative expenditure to 30 June 2012 Budget estimate 2012–13 Revised estimate 2012–13[1] Actual expenditure 2012–13 Variation Explanation for significant variation on expenditure
    $m $m $m $m   $m  
Army
Enhanced Static Line Parachute Capability AMP058.08 28 .. 15 14 9 -5 The United States Government entered into contract for the parachutes approximately three months later than had been forecast.
Australian Light Armoured Vehicle Crew Procedural Trainers AMP002.12 44 11 14 15 15 .. Minor variation.
Enhanced Land Force (ELF) Weapons Training Simulation System (WTSS) AMP029.44 34 1 9 12 12 .. Minor variation.
Chinook Passenger and Crew Seating AMP015.36 8 .. 4 2 .. -2 Floor components, ballistic protection and seating were procured under AIR 9000 Phase 5D with funds programmed for these items returned to the Army Minor's program.
Army Field Catering Equipment AMP500.09 4 - 3 1 2 .. Minor variation.
Kiowa Pilot Seating AMP015.58 7 1 2 1 1 .. Minor variation.
Air Force
Traffic Alert and Collision Avoidance System AFM01001 25 16 3 4 3 -1 Minor variation.
Broadband AFM01004 6 3 3 3 3 .. Minor variation.
42SQN Electronic Combat and Monitoring System AFM00977 .. .. 2 .. .. - Minor variation.
RAAF Intelligence Deployable LAN AFM01003 5 2 2 3 3 .. Minor variation.
Total   161 34 58 55 47 -8  
Note
  1. The revised budget for 2012-13 was published in the Portfolio Additional Estimates Statements 2012-13.

New minor projects

During 2012-13, one minor project was transferred to the DMO following government approval. This is shown in Table W12.8. The DMO classifies a project as having been transferred on the signing of a materiel acquisition agreement between DMO and Defence.

Table W12.8 New minor projects transferred to the DMO in 2012-13

Table W12.8 New minor projects transferred to the DMO in 2012-13
Project name Project number/ phase Budget estimate 2012–13 Actual expenditure 2012–13 Acquisition cost categorisation[1] Project information
    $m $m    
Joint Logistics Minors
Materiel Entitlements Management System JMP08001 1 .. Level 4 This project will deliver a materiel entitlements management system as a replacement for both Army and Air Force current entitlement systems. The system will interface with the Defence inventory and military integrated logistics information systems.

During 2012-13 this project achieved contract signature for the acquisition and delivery phases, completed the detailed design milestone and commenced vendor factory acceptance testing. The schedule for the final acceptance milestone has been rebaselined from December 2013 until March 2014 to align with Chief Information Officer Group application hosting services resource schedules.

The Defence Materiel Organisation- materiel acquisition agreement JMP08001.01 v1.1 was formally closed on 8 May 2013 and the residual project scope and budget were transferred to Chief Information Officer Group in line with the department's shared services strategy for information technology.
Notes
  1. Acquisition cost categorisations are as follows:
    • Level 1 (very high): >$1,500m
    • Level 2 (high): $500m-$1,500m.
    • Level 3 (moderate): $100m-$500m.
    • Level 4 (low): <$100m.

Closed minor projects

In 2012-13, the materiel acquisition agreements for 16 minor projects were successfully closed.

The total reduction of project approval at closure represented 34 per cent of the project approval value for these projects.

Table W12.9 Closed minor projects in 2012-13

Table W12.9 Closed minor projects in 2012-13
Project name Project number/ phase Project approval value Total expenditure Savings in project approval[1]
    $m $m  $m
Navy        
Personal Locator Beacon NMP1857 2 .. 1
Night Flying Capability in HMAS Sirius NMP1892 4 4 ..
Army        
Doppler Very High Frequency Omni-Directional Radio Range and Distance Measuring Equipment AMP022.07 2 1 1
Explosive Ordnance Disposal Capability AMP050.14 31 15 16[2]
Wheel Mounted Crane 30 Tonne AMP060.29 1 1 ..
Land Headquarters Equipment Entitlement Variations AMP500.01 5 1 4
Laser Range Finders AMP500.05 5 3 2
Air Force        
Tower Visual Simulator AFM00851 15 12 3
Pilot Monitoring Facility AFM00913 17 17 ..
Interim Coalition Interoperable Combat Search and Rescue Radio AFM00962 2 1 1
Soldier Personal Radio AFM00976 2 1 1
462SQN Electronic Combat & Monitoring System AFM00977 3 .. 3
Joint minor projects        
Automated Information Technology Scoping Study JMP06005 1 .. ..
ADF Deployable Logistics System / Integrated In-Transit Visibility JMP06009 1 1 ..
Defence Transaction Processor to Soldier Support JMP09003.02 1 .. ..
Warehouse        
International policy minors        
Joint Philippines-Australian Army Water Project IPM0001 8 7 1
Total   99 65 34
Notes
  1. This is the reduction in Materiel Acquisition Agreement agreed price at project closure and includes transfers to other projects and sustainment products.
  2. $2m transferred to Materiel Sustainment Acquisition CA26, $0.1m transferred to CA31, $0.1m transferred to CA39.