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Annual Report 2013-14

Volume 1, Part 3 : Governance and Accountability

Chapter 11 - Asset management, procurement and capital investment


Defence asset management

Defence manages $74.9 billion of total assets. This includes:

  • approximately $41.3 billion of specialist military equipment
  • $24.1 billion of land, buildings and infrastructure
  • $6.4 billion of inventory
  • $1.0 billion of heritage and cultural assets
  • $2.1 billion of other items, including cash, receivables and prepayments.

Defence Groups and Services, including the Defence Materiel Organisation (DMO), are accountable for the underlying business transactions and records that substantiate the reported financial balances of assets under their control.

Defence Asset Accounting within the Chief Finance Officer Group undertakes accounting processes to enable the accurate and timely reporting of asset balances and to ensure that they are consistent with requirements for financial statements reporting defined in the Australian Accounting Standards.

During 2013–14, Defence worked to secure and advance the improvements in financial and asset management achieved in previous years. This was achieved by:

  • evolving the shared services delivery model for asset accounting to further enhance the financial reporting of assets and deliver standardised policies and processes to support the management of assets
  • a maturing data assurance framework and controls environment to identify and resolve asset management issues swiftly as they occurred.

Defence procurement

Defence undertakes procurement in accordance with the Commonwealth Resource Management Framework and Defence policies. For the Commonwealth Procurement Rules (CPRs) Division 1, Defence must comply with the rules for all procurements regardless of the procurement value. The rules include:

  • value for money
  • encouraging competition
  • efficient, effective, economical and ethical procurement
  • accountability and transparency in procurement
  • procurement risk
  • procurement method.

Procurements at or above the relevant procurement threshold are subject to Division 2 of the CPRs. Exemptions are included in the CPRs Appendix A: Exemptions from Division 2.

Under non-materiel procurement shared services, the Defence Support and Reform Group provides high-level procurement advice and support to officials who exercise delegations under the Financial Management and Accountability Act 1997.

The value, volume and complexity of Defence’s non-materiel procurement requirements allow Defence to leverage its purchasing power. The organisation’s strategic view of its non-materiel procurements enables it to establish long-term relationships with suppliers where appropriate.

The Defence Annual Procurement Plan is published on the AusTender website (www.tenders.gov.au) to give industry notice of potential business opportunities and to help it prepare for the competitive tendering phase. Defence publishes open tenders on AusTender.

Defence conducts industry consultations for significant procurements before approaching the market and holds industry briefings during the tender open period. These processes inform suppliers of the scope of the organisation’s business requirements and proposed procurement and contracting strategies, and provide feedback on compliance obligations, risks, cost issues and innovation opportunities. Defence engages with potential suppliers ethically throughout the procurement cycle and uses equitable and non-discriminatory complaint-handling procedures.

The organisation also engages with suppliers at corporate and contract management levels through consultations, briefings, industry engagement meetings, strategic contract management review meetings and conferences. Defence is implementing procurement strategies to improve the application of supplier diversity requirements.

Defence monitors contractor performance, provides feedback to its suppliers and sustains industry relationships throughout the procurement contracting cycle.

Defence Materiel Organisation asset management

The DMO manages its assets in accordance with Chief Executive Instructions, relevant accounting standards and internal DMO guidelines.

The DMO’s property, plant and equipment, which were valued at $5 million, are subject to an annual stocktake to ensure that records are accurate. Impairment reviews were also undertaken at 30 June 2014, and valuations were conducted as outlined in Note 1.21 of the DMO financial statements in Volume Two of this report.

Defence Materiel Organisation specialist legal, procurement and contracting policy and practice

The Contracting and Legal Division in the DMO Commercial Group makes a critical contribution to the acquisition and support of ADF capability. As part of its work, it provides strategic commercial law advice and contracting support directly to DMO project and system project offices, maintains and improves Defence procurement policy, guidance and contracting templates, and takes responsibility for whole-of-Defence procurement training and professionalisation.

Major procurement policy and practice achievements during 2013–14 included a significant update to the Defence Procurement Policy Manual in preparation for the commencement of the Public Governance, Performance and Accountability Act 2013, the release of two new templates designed to aid industry engagement during the early stages of capability development, and the inclusion of new work health and safety provisions in contracting templates in response to industry feedback. In addition, the division made significant progress on two major commercial reform initiatives focused on intellectual property and technical data and on the allocation of commercial risk under the contracting templates.

Another achievement of the Contracting and Legal Division during 2013–14 was the establishment of the Performance Based Contracting Centre of Excellence. In its first year of operation, the centre supported 55 projects and system program offices in drafting, negotiating and implementing performance-based contracts. The centre has also taken an active role in enhancing knowledge and expertise in performance-based contracting across the DMO by developing practical guidance and specialised training and by evolving the DMO approach to performance indicator setting and measurement.

AusTender business improvement initiatives remained a key focus area for the division during 2013–14. As a result of these efforts, the DMO has expanded its electronic tendering. Policy introduced during 2013–14 now mandates e-tendering for procurements valued at over $200,000.

Approved Major Capital Investment Program

The Approved Major Capital Investment Program generally comprises those projects that cost more than $20 million and which, following approval, have been transferred from the Defence Capability Plan to acquisition agencies within Defence to manage the acquisition phase.

Funding for approved major capital equipment projects, including project management and overhead costs, is usually provided by Defence to the DMO under separate materiel acquisition agreements for each project. Funding is also provided to other groups, such as the Chief Information Officer Group and the Defence Support and Reform Group, to deliver the ICT and infrastructure components of the projects. A small number of projects are led by Groups other than the DMO, such as the Chief Information Officer Group and the Intelligence and Security Group.

Projects costing between $20 million and $100 million are approved jointly by the Minister for Defence and the Minister for Finance. Projects costing more than $100 million are approved by the National Security Committee of Cabinet.

2013–14 achievements

In 2013–14, a total of 26 approvals with a combined value of more than $19 billion were achieved. Significant approvals were for:

  • AIR 6000 Phase 2A/2B—New air combat capability (58 aircraft)
  • AIR 7000 Phase 2B—Maritime patrol aircraft replacement
  • LAND 75 Phase 4—Battle management system command and control (LAND 200 Tranche 2)
  • LAND 121 Phase 3B/5B—Field vehicles, modules and trailers
  • SEA 1352 Phase 1—Evolved Sea Sparrow missile upgrade and inventory replenishment
  • SEA 1442 Phase 4—Maritime communications modernisation.

Capital Facilities Program

The Capital Facilities Program comprises approved and unapproved major and medium projects.

Major capital facilities projects are defined as having expenditure over $15 million (including GST) and are subject to government approval and review by the Parliamentary Standing Committee on Public Works.

Medium facilities projects have expenditure between $500,000 and $15 million (including GST). Projects between $2 million and $15 million are subject to departmental or government approval and are notified to the Standing Committee on Public Works.

The Capital Facilities Program develops facilities and infrastructure to support the Approved Major Capital Investment Program, sustain current and future capability requirements, support other government initiatives, meet legislative obligations and assist initiatives that support Defence personnel. A significant proportion of the program funding is directed towards the provision of basic engineering and infrastructure services, in support of new projects and upgrades to existing facilities.

Table W11.1: Major capital investment projects approved by the Government in 2013–14


Project no.

Phase

Name

Approval budget (band $m)

Status at 30 June 2014

First pass approval

AIR 7000

2D

Maritime patrol aircraft replacement—additional four aircraft

n.a

4

JP 2069

3

High-grade cryptographic equipment

<$100m

5

JP 3025

1

Deployable Special Operations engineer capability

<$100m

3

LAND 53

1BR

Night fighting equipment replacement

<$100m

2

LAND 2110

1B

Chemical, biological, radiological and nuclear defence

<$100m

4

SEA 1352

1

Evolved Sea Sparrow Missile (ESSM) upgrade and inventory replenishment

$100m–$500m

4

SEA 1654

3

Maritime operational support capability

<$100m

4

Second pass approval

AIR 5276

CAP2

AP-3C Capability Assurance Program

<$100m

5

AIR 5416

4B2

Large aircraft infrared counter measures (LAIRCM) for C-130J aircraft

$100m–$500m

1

AIR 6000

2A/2B

New air combat capability (58 aircraft)

>$1b

5

AIR 7000

2B

Maritime patrol aircraft replacement

>$1b

1

JP 2064

3

Geospatial information, infrastructure and services (Evolution 1)

<$100m

1

JP 2072

3

Battle space communications system (LAND 200 Tranche 2)

$100m–$500m

1 & 5

JP 3029

1

Space surveillance—C-band radar—Tranche 2

<$100m

1

JP 3029

2

Space surveillance—Tranche 1

$100m–$500m

2

LAND 75

4

Battle management system command and control (LAND 200 Tranche 2)

$100m–$500m

1

SEA 1442

4

Maritime communications modernisation

$100m–$500m

1

Other approvals[1]

AIR 7000

1B

Multi-mission Unmanned Aircraft System (MUAS)

<$100m

4

CTD

18

Capability and Technology Demonstrator (CTD) Program—Round 18

<$100m

2

INV

2

Defence innovation projects

<$100m

2

JP 2069

3

High-grade cryptographic equipment

<$100m

5

JP 3029

2

Space Situational Awareness—Space Surveillance Telescope

<$100m

5

LAND 121

3B

Field vehicles, modules and trailers

$500m–$1b

1

LAND 121

5B

Field vehicles, modules and trailers

N/A

5

SEA 3036

1

Pacific patrol boat replacement

<$100m

4

SEA 5000

1

Future frigate—preliminary design work

<$100m

4

1.   One classified project received approval for a real cost increase.
Status
1    Project underway (contract signed)
2    Tender closed
3    Out to tender
4    Yet to go to tender
5    Various: either contributing to more than one project or consisting of several internal phases of varying status.

Table W11.2: Approved capital facilities projects, by state and federal electorate

 

State and electorate

Total estimated expenditure

Cumulative expenditure to
30 June 2014

2013–14
budget
estimate

2013–14
revised
estimate

2013–14
Actual

$m

$m

$m

$m

$m

Enhanced Land Force Stage 2 works [1]

 

 

 

 

 

 

Singleton Training Area

NSW: Hunter

 

114.3

10.1

6.6

2.0

Simpson Barracks, Watsonia

Vic.: Jagajaga

 

20.2

0.0

0.0

0.2

RAAF Amberley

Qld: Blair

 

9.7

0.0

0.0

0.0

Kokoda Barracks, Canungra

Qld: Forde

 

66.9

40.3

31.0

27.1

Lavarack Barracks, Townsville

Qld: Herbert

 

61.7

0.0

0.0

1.2

Greenbank Training Area

Qld: Rankin

 

118.6

13.0

18.0

17.3

Gallipoli Barracks, Enoggera

Qld: Ryan

 

790.7

133.5

145.0

155.0

Wide Bay Training Area

Qld: Wide Bay

 

65.8

19.0

11.0

6.1

RAAF Edinburgh

SA: Wakefield

 

35.4

0.0

1.6

1.0

Majura Field Training Area

ACT: Fraser

 

22.6

0.0

0.0

 

Total

 

1,457.8

1,305.9

216.1

213.2

209.9

Enhanced Land Force Stage 1 works [1]

 

 

 

 

 

 

Holsworthy Barracks

NSW: Hughes

 

38.6

-

-

0.0

Singleton Training Area

NSW: Hunter

 

62.0

-

-

0.0

Kapooka Training Area

NSW: Riverina

 

104.3

-

-

0.2

Swan Island

Vic.: Corangamite

 

6.4

-

-

0.0

Puckapunyal Training Area

Vic.: McEwan

 

78.6

10.5

12.6

14.8

RAAF Amberley

Qld: Blair

 

122.5

-

-

0.0

Townsville

Qld: Herbert

 

189.2

3.3

3.8

3.8

Edinburgh Defence Precinct

SA: Wakefield

 

35.7

1.3

12.4

12.0

Campbell Barracks

WA: Curtin

 

3.9

-

-

0.0

Total

 

793.1

641.3

15.1

28.8

30.9

Defence Logistics Transformation Program [1]

 

 

 

 

 

 

Defence National Storage & Distribution Centre, Moorebank

NSW: Hughes

 

190.0

146.5

135.7

136.6

Wadsworth Barracks, Bandiana

Vic.: Indi

 

19.2

7.8

19.1

19.2

RAAF Amberley

Qld: Blair

 

90.5

68.7

84.2

84.7

Townsville

Qld: Herbert

 

32.9

9.6

32.7

32.9

RAAF Edinburgh

SA: Wakefield

 

0.4

6.4

0.4

0.4

Robertson Barracks

NT: Solomon

 

113.9

88.1

101.6

102.3

Total

 

752.7

446.9

327.1

373.6

376.1

Moorebank Units Relocation [2]

 

 

 

 

 

 

Steele Barracks, Moorebank

NSW: Hughes

352.9

176.2

101.5

118.4

132.3

Amberley Redevelopment Stage 3

 

 

 

 

 

 

RAAF Amberley

Qld: Blair

331.5

326.4

13.6

21.9

20.0

Albatross Redevelopment Stage 3

 

 

 

 

 

 

HMAS Albatross, Nowra

NSW: Gilmore

192.0

20.5

39.9

22.0

19.8

Facilities for MH-60R Seahawk Maritime Combat Helicopters

 

 

 

 

 

 

HMAS Albatross, Nowra

NSW: Gilmore

-

67.9

-

63.5

67.9

HMAS Stirling, Rockingham

WA: Brand

-

5.7

-

5.2

5.7

Total

 

189.0

73.6

-

68.8

73.6

East Sale Redevelopment

 

 

 

 

 

 

RAAF East Sale

Vic.: Gippsland

185.6

57.2

79.0

62.2

45.6

Defence Facilities at HMAS Harman

 

 

 

 

 

 

HMAS Harman

ACT: Canberra

163.5

160.5

0.3

10.3

11.1

Facilities for Air Warfare Destroyer
(SEA 4000)

 

 

 

 

 

 

Garden Island

NSW: Wentworth

109.9

16.4

-

16.0

16.4

Defence Force School of Signals

 

 

 

 

 

 

Simpson Barracks, Watsonia

Vic.: Jagajaga

101.3

90.8

3.3

0.1

0.0

Facilities for Amphibious Deployment and Sustainment (JP 2048)

 

 

 

 

 

 

Garden Island

NSW: Wentworth

60.3

3.9

-

5.0

3.9

ADFA Redevelopment

 

 

 

 

 

 

ADFA

ACT: Fraser

98.5

74.7

32.4

41.1

30.2

Defence Science and Technology Organisation (DSTO) Fishermans Bend—Human Protection Performance and Security

 

 

 

 

 

 

Fishermans Bend

Vic.: Melbourne Ports

41.1

0.2

-

2.5

0.2

Airfield Capital Works [1] [3]

 

 

 

 

 

 

RAAF Williamtown

NSW: Newcastle

-

8.8

9.6

7.7

8.8

RAAF Amberley

Qld: Blair

-

40.7

24.8

33.7

38.3

RAAF Townsville

Qld: Herbert

-

4.2

6.5

3.7

4.2

RAAF Darwin

NT: Solomon

-

29.4

12.7

24.4

27.7

Total

 

88.3

83.1

53.6

69.5

79.0

HMAS Penguin and Pittwater Annexe Redevelopment [1]

 

 

 

 

 

 

Pittwater Annexe

NSW: MacKellar

-

5.9

2.0

2.0

1.9

HMAS Penguin, Balmoral

NSW: Warringah

-

55.5

9.8

11.3

10.6

Total

 

63.3

61.4

11.8

13.3

12.5

Facilities for Replacement Towed Artillery (LAND 17) [1]

 

 

 

 

 

 

Gaza Ridge Barracks, Bandiana

Vic.: Indi

-

2.3

2.4

1.5

1.4

Bridges Barracks, Puckapunyal

Vic.: McEwan

-

2.3

2.0

1.3

1.2

Lavarack Barracks, Townsville

Qld: Herbert

-

4.1

2.3

2.4

2.3

Gallipoli Barracks, Enoggera

Qld: Ryan

-

28.3

16.3

21.9

20.9

RAAF Edinburgh

SA: Wakefield

-

3.2

2.3

2.3

2.2

Robertson Barracks, Darwin

NT: Solomon

-

2.2

3.2

1.2

1.1

Total

 

46.5

42.4

28.4

30.6

29.1

Liverpool Military Area High Voltage Reticulation Systems Upgrade

 

 

 

 

 

 

Liverpool Military Area

NSW: Hughes

19.6

14.6

15.3

16.9

14.5

Scottsdale Specific Nutritional Capability

 

 

 

 

 

 

Scottsdale

Tas.: Bass

18.7

18.5

7.8

9.2

9.6

Explosive Ordnance Storage

 

 

 

 

 

 

Proof and Experimental Establishment Port Wakefield

SA: Wakefield

15.5

15.2

2.2

2.2

2.0

Facilities for Joint Counter Improvised Explosive Device Capability [1]

 

 

 

 

 

 

Steele Barracks, Moorebank

NSW: Hughes

-

0.1

3.1

-

0

Singleton Training Area

NSW: Hunter

-

-

0.5

-

0

Wadsworth Barracks, Bandiana

Vic.: Indi

-

-

1.5

-

0

Simpson Barracks, Watsonia

Vic.: Jagajaga

-

0.8

1.8

1.7

0.8

Kokoda Barracks, Canungra

Qld : Forde

-

-

0.4

-

0

Townsville Training Area

Qld: Herbert

-

0.1

0.5

-

0

Cultana Training Area

SA: Grey

-

-

0.3

-

0

Edinburgh Defence Precinct

SA: Wakefield

-

0.7

2.8

1.5

0.7

Campbell Barracks, Perth

WA: Curtin

-

-

0.7

-

0

RAAF Darwin

NT: Solomon

-

-

0.6

-

0

Total

 

13.4

1.7

12.2

3.2

1.5

6th Aviation Regiment—Expanded 171 Aviation Squadron Facilities

 

 

 

 

 

 

Holsworthy Barracks

NSW: Hughes

11.7

9.1

0.0

1.0

0.7

Australian Operational Concept Contingency and Stores [1]

 

 

 

 

 

 

RAAF Williams

Vic.: Lalor

-

0.0

-

-

-

RAAF Townsville

Qld: Herbert

-

0.0

-

-

-

Gallipoli Barracks, Enoggera

Qld: Ryan

-

0.0

-

-

-

RAAF Edinburgh

SA: Wakefield

-

0.0

-

-

-

Derwent Barracks, Glenorchy

Tas.: Denison

-

0.1

0.1

-

0.1

RAAF Darwin

NT: Solomon

-

0.0

-

-

-

Total

 

7.9

0.2

0.1

-

0.1

Thermal Test Facility [3]

 

 

 

 

 

 

Fishermans Bend

Vic.: Melbourne Ports

9.2

0.2

3.6

1.3

0.1

Corrosion Control Facility

 

 

 

 

 

 

RAAF Tindal

NT: Lingiari

6.7

4.8

4.2

6.7

4.7

Corrosion Control Facility and Spray Paint Booth Facilities Upgrade

 

 

 

 

 

 

RAAF Williamtown

NSW: Newcastle

6.3

6.2

3.2

5.5

5.6

Potable Water Supply Upgrade [3]

 

 

 

 

 

 

RAAF Pearce

WA: Pearce

4.6

0.8

0.8

0.4

0.4

Triangular Island Facility Upgrade

 

 

 

 

 

 

Shoalwater Bay Training Area

Qld: Capricornia

2.2

1.0

-

0.0

0.1

Projects in or about to enter Defects Liability Period

 

 

 

4.8

35.5

26.1

Total

 

5,143.0

3,653.6

976.2

1,179.3

1,156.1

Notes
1.   These projects cross state and electoral boundaries. Estimated cumulative expenditure to 30 June 2013 and expenditure estimates for 2013–14 are provided in the table per project and location.
2.   This amount represents the Defence-funded element of the Moorebank Units Relocation Project. The Department of Finance is funding the remaining element of $517.1m for a total approved project value of $870.0m. These works are at Holsworthy to enable the relocation of units from Steele Barracks, Moorebank, to Holsworthy.
3.   Approved project budget has increased since publication of Portfolio Additional Estimates Statements 2013–14.

Table W11.3: Performance of major capital facilities projects


Project

State and electorate

Status

2013–14 achievements

Enhanced Land Force Stage 2 Works

Various

Substantially met

This project will provide modern purpose-built facilities and supporting infrastructure for the 8th/9th Battalion the Royal Australian Regiment and supporting elements of the Army's 7th Brigade at Gallipoli Barracks in Enoggera, Brisbane. The project includes the construction of new and refurbished accommodation and training facilities, as well as common use facilities and site infrastructure upgrades at Enoggera and other Defence sites across four states and both mainland territories.
Facilities at Townsville, Singleton, Duntroon and Watsonia will provide modern accommodation and supporting infrastructure for increased Army career training. In Sydney and at RAAF Bases Amberley and Edinburgh and at nine Defence Training Areas, new and refurbished facilities and site infrastructure upgrades will be provided for the Army and joint enabling elements supporting the Enhanced Land Force capabilities. The project experienced delays in obtaining approval for the change of location for the Unexploded Ordnance Training Field from Greenbank Training Area to Wide Bay Training Area. Works at Garden Island and Balmoral were completed in 2010.
Facilities at Garden Island, HMAS Penguin, Watsonia, Puckapunyal, RAAF Base Amberley, Townsville Field Training Area, Majura Field Training Area and Royal Military College Duntroon have
been completed.
Construction commenced in mid 2010 and is scheduled to be completed by late 2014.

Enhanced Land Force Stage 1 Works

Various

Substantially met

This project will provide modern, purpose-built facilities and supporting infrastructure for the relocation of the 3rd Battalion, the Royal Australian Regiment from Sydney to Townsville. The works involve the construction of new and refurbished accommodation and training facilities, as well as the construction of common-use facilities and site infrastructure upgrades at Townsville and other Defence sites across five states. Some works were accelerated to achieve value for money and reduce the risk of escalation costs
Facilities at Kapooka, Singleton, Holsworthy and Puckapunyal will provide modern accommodation and supporting infrastructure for increased Army initial employment training. At RAAF Bases Amberley, Edinburgh and Richmond, new facilities will be provided for joint enabling elements supporting the Enhanced Land Force capabilities. Facilities at RAAF Base Richmond, Campbell Barracks Perth, Holsworthy, Singleton and, RAAF Amberley have been completed. Construction commenced in mid 2009 and completion of the remaining elements is scheduled by late 2014.

Defence Logistics Transformation Program

Various

Met

The project is modernising and enhancing the wholesale storage, distribution and land materiel functions of Joint Logistic Command units nationally to provide optimal support to Defence operations. The project will provide enhanced logistics facilities at Moorebank, New South Wales; Bandiana, Victoria; Amberley and Townsville, Queensland; Palmerston, Northern Territory; Edinburgh, South Australia; and Guilford and Garden Island, Western Australia. Some works were accelerated to achieve value for money and reduce the risk of escalation costs. Construction is programmed to be completed in mid 2016.

Moorebank Units Relocation

NSW: Hughes

Met

The project is delivering new facilities at Holsworthy Barracks to relocate affected Defence units and facilities from the proposed Moorebank Inter-Modal Transport site, including the School of Military Engineering. Some work elements were brought forward to allow beneficial project delivery programming and to achieve greater value for money. Construction is scheduled to be completed in late 2015.

Amberley Redevelopment Stage 3

Qld: Blair

Substantially met

This project will provide new trainee living-in accommodation and messing facilities, physical fitness facilities, office, medical and working accommodation, consolidation of maintenance facilities, construction of a new fuel farm and a base security upgrade. Construction commenced in 2008. All works are complete with the exception of Package 6—Passive Defence Augmentation. Some delays were experienced due to delays in negotiating the scope of the final work package. Completion is scheduled for mid 2015.

Albatross Redevelopment Stage 3

NSW: Gilmore

Substantially met

The project will replace ageing and obsolete engineering services and infrastructure. It will also provide a combination of new and refurbished facilities to support operational and training outcomes as well as enabling functions. The project experienced delays in finalising delivery phase contracts. The project is scheduled to be completed in mid 2017.

Facilities for MH-60R Seahawk Maritime Combat Helicopters

Various

Substantially met

The project will provide new and upgraded facilities for maritime helicopter operations at HMAS Stirling (Fremantle, WA), at HMAS Albatross (Nowra, NSW) and at Eden, NSW. The works include the provision of facilities for aircraft hangars and workshops, synthetic training and working accommodation (primarily at Nowra), and additional explosive ordnance facilities at Fremantle and Eden. The project experienced delays due to wet weather and unforseen in-ground conditions. Construction is scheduled for completion in mid 2017

East Sale Redevelopment

Vic.: Gippsland

Partially met

This project will provide in-ground engineering services upgrades, new working accommodation, new training and maintenance facilities, security upgrades, a new air traffic control complex, new commercial and community facilities, a new chapel, a new firing range, new living-in accommodation, a fuel farm and demolition of redundant facilities. The project experienced delays due to procurement delays and weather. Project is programmed to be completed in mid 2015

Defence Facilities at HMAS Harman

ACT: Canberra

Met

The project will provide an extension to the existing Defence Network Operation Centre that controls and monitors communication activities within Defence, as well as providing new data storage facilities for other capability projects and additional support facilities for the Army. All works are now complete.

Facilities for Air Warfare Destroyer
(SEA 4000)

NSW: Wentworth

Met

This project aims to provide new and upgraded wharf-side facilities to support berthing and sustainment at Garden Island, Sydney, for the new Hobart class air warfare destroyer. The works also include the provision of training facilities at HMAS Watson and Randwick Barracks. Construction commenced in mid 2013 and is on track to be completed in late 2015.

Defence Force School of Signals

Vic.: Jagajaga

Substantially met

This project will provide new working accommodation, improved security arrangements and upgraded living-in accommodation for the Defence Force School of Signals at Simpson Barracks. Construction commenced in October 2008. The living-in accommodation and other major components of the project are now complete. The project experienced delays while delivery options for the final scope items were investigated. Remaining scope elements are scheduled for completion by early 2015.

Facilities for Amphibious Deployment and Sustainment (JP 2048)

NSW: Wentworth

Met

This project aims to provide new and upgraded wharf-side facilities to support berthing and sustainment at Garden Island, Sydney, for the new Canberra class landing helicopter dock ship. The works also include the provision of training facilities at Randwick Barracks. Construction commenced in mid 2013 and is on track to be completed in late 2015.

ADFA Redevelopment

ACT: Fraser

Substantially met

The project aims to address the functional deficiencies of the teaching, training, office and living-in accommodation and mess facilities at ADFA to meet current and future academic and military training needs for the next 20 to 30 years. The project experienced some delays due to unforeseen in-ground conditions. Project is programmed to be completed in mid 2015

Defence Science and Technology Organisation (DSTO) Fishermans Bend—Human Protection Performance and Security

Vic.: Melbourne Ports

Substantially met

The project will provide new and upgraded site security and will rectify identified accommodation shortfalls within on-site Human Protection Performance Division facilities located at the DSTO site at Fishermans Bend in Melbourne. The project experienced some delays due to investigations into contracting options. Construction commenced in early 2014 and is scheduled for completion by early 2016.

Airfield Capital Works

Various

Met

The project aimed to resurface asphalt pavement and replace airfield lighting at RAAF Base Amberley, RAAF Base Darwin and RAAF Base Townsville. The project experienced delays and additional cost due to some reconstruction works required at RAAF Base Amberley. All works have been completed.

HMAS Penguin and Pittwater Annexe Redevelopment

Various

Met

The project provided a comprehensive upgrade of base-wide engineering services infrastructure, security works and working accommodation for training and support functions. All works are now complete.

Facilities for Replacement Towed Artillery (LAND 17)

Various

Substantially met

The project will provide new and upgraded facilities to support the introduction into service of new towed artillery. The works are planned at six sites: Enoggera, Puckapunyal, Townsville, Edinburgh, Darwin and Bandiana. The project has experienced delays due to remediation of unforeseen in-ground conditions and contractor insolvency. It is programmed to be completed in late 2014.

Liverpool Military Area High Voltage Reticulation Systems Upgrade

NSW: Hughes

Substantially met

The project is providing improved energy supply and distribution to the Liverpool Military Area, primarily at Holsworthy Barracks. It will provide a necessary increase in electrical supply to the Liverpool Military Area and improved electrical reticulation within Holsworthy Barracks. The project experienced some delays due to testing and remediation of asbestos. It is programmed to be completed in late 2015.

Scottsdale Specific Nutritional Capability

Tas.: Bass

Met

The project provides a reinvestment in the existing DSTO nutritional capability at Scottsdale through the construction of replacement food technology laboratories and working facilities. It is programmed to be completed in late 2014

Explosive Ordnance Storage

SA: Wakefield

Substantially met

The project will provide new facilities to replace aged, noncompliant explosive storehouses at Port Wakefield, SA. It has experienced delays due to errors in design. It is programmed to be completed in late 2015.

Facilities for Joint Counter Improvised Explosive Device Capability

Various

Partially met

The project will provide test and evaluation facilities at Edinburgh (Adelaide, SA), plus storage and training facilities at 14 other sites across Australia in support of the ADF's counter IED capability. The project has experienced delays due to delays in finalising the required scope. It is programmed to be completed by late 2015.

6th Aviation Regiment—Expanded 171 Aviation Squadron Facilities

NSW: Hughes

Met

The project provided facilities to accommodate the additional personnel moved to Luscombe Airfield, Holsworthy, as part of the relocation of 171st Aviation Squadron to Holsworthy and the raising of 6th Aviation Regiment. All works have been completed.

Australian Operational Concept Contingency and Stores

Various

Partially met

The project will deliver storage facilities for vehicles and other materiel in support of contingency operations in Australia. It has experienced a delay due to the finalisation of delivery phase contracts. It is programmed to be completed by early 2015.

Thermal Test Facility

Vic.: Melbourne Ports

Partially met

The project will deliver an integrated test facility capable of supporting multiple air and maritime platform research programs. Delays were experienced due to a failed tender process. The project is programmed to be completed by late 2016

Corrosion Control Facility

NT: Lingiari

Met

The project delivered working accommodation at the RAAF Base Tindal Corrosion Control Facility. All works have been completed.

Corrosion Control Facility and Spray Paint Booth Facilities Upgrade

NSW: Newcastle

Partially met

The project will deliver compliant working accommodation at the RAAF Base Williamtown Corrosion Control Facility. Design compliance has caused delays. The project is programmed to be completed by early 2015.

Potable Water Supply Upgrade

WA: Pearce

Substantially met

The project will deliver a compliant potable water system for RAAF Base Pearce. A secondary outcome is to deliver prioritised works to the 2nd class water system—fire hydrant network, bore-field development and irrigation upgrades. The project experienced some delays due to a change in the delivery methodology. It is programmed to be completed by late 2015.

Triangular Island Facility Upgrade

Qld: Capricornia

Met

This project delivered new working accommodation. All works have been completed.

Status
Met: All targets for 2013–14 were met or executed.
Substantially met: Targets were mostly met and any issues were being managed.
Partially met: Some targets were met and any issues were being managed.
Not met: No or minimal progress was made against targets.

Table 11.4: Status of program of works foreshadowed for consideration and approval in 2013–14

 

State and electorate

Current status

Major capital facilities projects foreshadowed for PWC consideration in 2013–14

 

 

RAAF Base Williamtown Redevelopment Stage 2

NSW: Newcastle

In development

Defence Science and Technology Organisation (DSTO) Fishermans Bend—Human Protection Performance and Security

Vic.: Melbourne Port

Agreement 15 May 2013

Facilities for Air Warfare Destroyer (SEA 4000)

Multiple

Agreement 15 May 2013

Facilities for Amphibious Deployment and Sustainment (Joint Project (JP) 2048)

Multiple

Agreement 15 May 2013

Facilities for the MH-60R Seahawk Maritime Combat Helicopters (AIR 9000 Phase 8)

Multiple

Agreement 15 May 2013

Facilities for Chinook Helicopter (Air 9000 Phases 5B and 5C)

Herbert

Agreement 14 July 2014

Facilities for Force Protection Research and Training (Joint Project (JP)154)

Multiple

In development

AIR 6000 New Air Combat Capability (NACC)

Multiple

In development

Defence Terrestrial Communications Network Facilities Upgrade (Joint Project (JP) 2047)

Multiple

Agreement 14 July 2014

Medium Capital Facilities Projects Forshadowed to seek approval in 2013–14

 

 

Army Emergency Response Facilities, Luscombe Airfield—Holsworthy

NSW: Hughes

In development

Hunter Water Corporation Wastewater Transfer Scheme—RAAF Williamtown

NSW: Newcastle

Agreement 16 May 2013

Support Facilities for Joint Project (JP) 2048 Phase 3 Landing Helicopter Dock (LHD) Landing Crafts—Sydney

NSW: Wentworth

Agreement 13 February 2014

End of Lease Relocation—Sydney University

NSW: Sydney

In development

Samford Road—Gallipoli Barracks Enoggera

Qld: Ryan

In development

Explosive Hazard Training Area—Wide Bay Training Area

Qld: Wide Bay

In development

Proof & Experimental Establishment (P&EE) Road and Car park Upgrade—Graytown

Vic.: Murray

Agreement August 2013

Low Level Bridge—HMAS Stirling

WA: Brand

Agreement 13 February 2014

Armoury—Royal Military College Duntroon

ACT: Fraser

Agreement June 2013

Cyber Security Operational Centre (CSOC) Refurbishment—Russell Offices

ACT: Fraser

In development

Shoal Bay Receiving Station (SBRS) Facilities Upgrade—Darwin

NT: Lingiari

In development

Flood Mitigation Project—RAAF Darwin

NT: Solomon

In development

Proof & Experimental Establishment (P&EE) Vibration Test Facility Port Wakefield

SA: Wakefield

In development

Joint Project (JP)154 Phase 3A (Project Ningaui) Australian Protected Route Clearance Capability

Multiple

Agreement 19 June 2014

Joint Project (JP) 2059 Phase 3—Water Purification and Desalination Equipment

Multiple

In development

Facilities for Australian Light Armoured Vehicle (ASLAV) Crew Procedural Trainer (CPT)

Multiple

In development

The Single LEAP project

The ADF Single Living Environment and Accommodation Precinct (LEAP) project is a multi-phase project to deliver up to 6,400 permanent living-in accommodation units. This is part of the strategy to replace substandard accommodation for single ADF personnel with new accommodation that meets contemporary standards. Single LEAP Phase 1 delivered 1,395 living-in accommodation units and was completed in December 2008. Single LEAP Phase 2 delivered 3,015 living-in accommodation units at 14 Defence bases and was completed in February 2014.
Defence entered a contract on 28 June 2011 with Plenary Living Pty Ltd under a public–private partnership arrangement for Phase 2 of the project. Plenary Living provided the financing, constructed the units, and will operate the units and provide whole-of-life maintenance for them over a 30-year period. Under the partnership arrangement, annual payments to Plenary Living began after the commercial acceptance of each site.

Table W11.5: Single LEAP projects, by state and federal electorate


State

Electorate

Locality

New South Wales

Gilmore

Nowra: HMAS Albatross

Riverina

RAAF Base Wagga Kapooka: Blamey Barracks

Victoria

Indie

Albury/Wodonga: Bandiana

 

Jagajaga

Watsonia: Simpson Barracks

McEwen

Puckapunyal

Queensland

Herbert

Townsville: Lavarack Barracks

South Australia

Wakefield

RAAF Base Edinburgh

Western Australia

Brand

Garden Island: HMAS Stirling

Curtin

Swanbourne: Campbell Barracks

Northern Territory

Solomon

Darwin: Robertson Barracks

Darwin: HMAS Coonawarra (Larrakeyah Barracks)

Australian Capital Territory

Fraser

Royal Military College Australian Defence Force Academy

Table W11.6: Major Defence Establishments and Bases

Establishment or Base

Federal Electorate

Location

Australian Capital Territory

Australian Defence College

Canberra

Weston

Russell Offices

Fraser

Russell

HMAS Harman

Fraser

Canberra

Australian Defence Force Academy (ADFA)

Fraser

Canberra

RMC Duntroon

Fraser

Duntroon

Anzac Park West

Fraser

Parkes

Brindabella Park Offices

Fraser

Canberra Airport

Campbell Park Offices

Fraser

Campbell

Fairbairn

Fraser

Canberra Airport

HMAS Creswell

Fraser

Jervis Bay Territory

New South Wales

General John Baker Complex

Eden-Monaro

Bungendore

Albury Wodonga Military Area

Farrer

Albury / Wodonga

Mulwala Explosives Factory

Farrer

Mulwala

HMAS Albatross

Gilmore

Nowra

Liverpool Military Area

Hughes

Liverpool

Lone Pine Barracks, Singleton

Hunter

Singleton

Myambat Explosive Ordnance Facility

Hunter

Muswellbrook

Randwick Barracks

Kingsford Smith

Randwick

Defence Establishment Orchard Hills

Lindsay

Orchard Hills

RAAF Base Glenbrook

Macquarie

Glenbrook

RAAF Base Richmond

Macquarie

Richmond

RAAF Base Williamtown

Newcastle

Williamtown

HMAS Waterhen

North Sydney

Waverton

Timor Barracks

Parramatta

Dundas

Blamey Barracks

Riverina

Kapooka

RAAF Base Wagga

Riverina

Wagga Wagga

Defence Plaza Sydney

Sydney

Sydney

HMAS Penguin

Warringah

Mosman

HMAS Watson

Wentworth

Watsons Bay

Garden Island Defence Precinct (Fleet Base East)

Wentworth

Potts Point

Victoria Barracks, Sydney

Wentworth

Paddington

Queensland

RAAF Base Amberley

Blair

Amberley

Victoria Barracks, Brisbane

Brisbane

Brisbane

Army Aviation Centre Oakey

Groom

Oakey

Borneo Barracks

Groom

Cabarlah

Lavarack Barracks

Herbert

Townsville

RAAF Base Townsville

Herbert

Townsville

Ross Island Barracks, Townsville

Herbert

Townsville

HMAS Cairns

Leichhardt

Cairns

RAAF Base Scherger

Leichhardt

Weipa

Gallipoli Barracks

Ryan

Enoggera

Kokoda Barracks

Wright

Canungra

Northern Territory

RAAF Base Tindal

Lingiari

Katherine

Defence Establishment Berrimah

Solomon

Coonawarra

Larrakeyah Defence Precinct

Solomon

Larrakeyah

RAAF Base Darwin

Solomon

Winnellie

Robertson Barracks

Solomon

Palmerston

Western Australia

HMAS Stirling

Brand

Rockingham

Campbell Barracks

Curtin

Swanbourne

RAAF Base Curtin

Durack

Derby

RAAF Base Learmonth

Durack

Learmonth

Irwin Barracks

Curtin

Karrakatta

Leeuwin Barracks

Fremantle

Fremantle

RAAF Base Pearce

Pearce

Bullsbrook

South Australia

Hampstead Barracks

Adelaide

Adelaide

Keswick Barracks

Adelaide

Keswick

Warradale Barracks

Boothby

Adelaide

Defence Estate Woomera

Grey

Woomera

Woodside Barracks

Mayo

Woodside

Edinburgh Defence Precinct

Wakefield

Edinburgh

Proof and Experimental Establishment Port Wakefield

Wakefield

Port Wakefield

Victoria

AGO Geospatial Analysis Centre - Bendigo

Bendigo

Bendigo

HMAS Cerberus

Flinders

Crib Point

RAAF Base East Sale

Gippsland

East Sale

Albury Wodonga Military Area

Indi

Albury / Wodonga

Simpson Barracks

Jagajaga

Macleod

RAAF Base Williams (Laverton)

Lalor

Laverton

RAAF Base Williams (Point Cook)

Lalor

Point Cook

Puckapunyal Military Area

McEwen

Seymour

Proof and Experimental Establishment Graytown

McEwen

Graytown

Defence Plaza Melbourne

Melbourne

Melbourne

DSTO Fishermans Bend

Melbourne Ports

Fishermans Bend

Victoria Barracks, Melbourne

Melbourne Ports

Southbank

Tasmania

Anglesea Barracks

Denison

Hobart

Derwent Barracks

Denison

Glenorchy