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Annual Report 2013-14

Volume 1, Part 2 : Performance

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. The agreements define what is to be delivered, how much it is to cost and when it is to be delivered. The DMO currently has 222 active major and minor projects.

Program 1.1 accounted for around 42 per cent of the DMO’s expenses in 2013–14. This generated around $3.8 billion of military assets for Defence; non-capitalised project expenses were about $0.4 billion.

Table 6.3: Program 1.1 deliverables for top 30 major projects

Deliverable

Performance summary

General Manager Joint, Systems and Air

Aerospace Systems

Battlefield Airlift—Caribou Replacement—AIR 8000 Phase 2

This project will acquire a fleet of 10 United States military configuration C-27J aircraft as a military-off-the-shelf procurement through the US Foreign Military Sales program, with only minor changes to meet Australian airspace regulations.

The project established the interim C-27J logistics system, procured aircraft spares and support equipment, undertook activities to establish an interim US-based training system and undertook airworthiness certification activities in preparation for first aircraft acceptance in the third quarter of 2014 and the commencement of flight and maintenance training in the fourth quarter of 2014.

Growler Airborne Electronic Attack Capability—AIR 5349 Phase 3

This project will deliver a United States Navy common airborne electronic attack capability based on the EA-18G Growler aircraft and ALQ-99 Tactical Jamming System.

Foreign military sales cases for acquisition of aircraft and associated systems and support were established with the United States Navy, which also reached agreement with its primary supplier, Boeing, for the major aircraft production contracts. Growler aircraft production is on schedule; the software development effort is well underway and has achieved early development milestones.

Seven Air Force aircrew commenced training on the EA-18G at the United States Naval Air Station, Whidbey Island, Washington.

Airborne Early Warning and Control Aircraft—AIR 5077 Phase 3

The project provided Defence with an airborne early warning and control capability based on six E-7A Wedgetail aircraft and associated supplies and support.

The project made progress on software modifications to remove a small number of limitations agreed to under the final commercial settlement. In-Service Software Build 2 was released in April 2014, while the project also delivered the majority of residual spares to support the final operational capability. In-Service Software Build 3 will be released during 2014–15.

Air to Air Refuelling Capability—AIR 5402

This project will deliver five new-generation Airbus A330 multi-role tanker transport aircraft (known as the KC-30A in Air Force service) and associated through-life support infrastructure for the fleet.

The project delivered the penultimate upgrade to the simulation training devices, began the avionics modification program (which is the first phase of the overall aircraft modification) and re-entered the Aerial Refuelling Boom System flight test program.

This project continues to be managed as a project of concern (see Table 6.6).

Electronic Systems

Battlespace Communications System (LAND)—JP 2072 Phase 2A

This project will deliver and introduce into service new digital radios, provide combat radios and ancillary equipment to replace the Raven, Wagtail and Pintail fleets for most of the land force, and establish the mature support system for combat and tactical data radios.

Delivery and introduction into service of the new digital radios are 60 per cent complete. Initial materiel release and initial operating capability were achieved. Interim support arrangements are in place, while two major support contracts for the life-of-type of the new radios are being tendered or evaluated.

Next Generation Satellite Communications System—JP 2008 Phase 4

This project will deliver high-priority components of the next-generation satellite communication system to support the ADF. The capability is being delivered under a memorandum of understanding with the United States Government. Wideband Global Satellite Communications System Satellites 1 to 6 are now fully operational. The interim anchoring system has achieved materiel releases 3 and 4 milestones and is fully operational. Offshore anchoring has achieved materiel release and is fully operational.

The project achieved final materiel release on 26 June 2014.

Battle Management System—LAND 75 Phase 3.4

This project will deliver mounted battle management systems, including command post systems, to the ADF in cooperation with Land 125 Phase 3A (Dismounted Systems) and JP 2072 Phase 1 (Combat Radio System).

The project delivered to the Army all installations of the battle management systems into Bushmaster protected mobility vehicles and selected logistic vehicles. Installations into G-Wagon vehicles were also progressed during the year. The completion of design acceptance activities and introduction into service processes will continue in 2014–15.

Military Satellite Capability—Wideband Terrestrial Terminals —JP 2008 Phase 3H

This project will deliver 51 medium-sized transportable satellite terminals for ADF units, along with onsite spares kits, spares, and support and test equipment. The terminals will allow early use ofthe Wideband Global Satellite Communications (WGS) system by introducing medium-sized WGS-certified terminals to the ADF land forces.

The project completed acceptance testing of the transportable satellite terminals, and introduction into service training has concluded. The initial tranche of 24 terminals was delivered to the ADF as part of the initial materiel release requirement. Action is underway to improve the power supply system in the context of contemporary Australian Standards. The final tranche of terminals will be delivered in 2014–15.

Anzac Electronic Support System Improvements—SEA 1448 Phase 4A

This project will provide the Anzac class frigates with an improved tactical electronic support mission system for improved passive situational awareness and early threat warning. The project includes the provision of a mission system and emulators for training and a ground-based support segment for mission system programming.

The project completed a preliminary design review in October 2013 and a critical design review in February 2014.

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).

The project delivered the third release Evolution 2 capability to HQJOC and the combat net radio interface capability.

Helicopter Systems

Future Naval Aviation Combat System Helicopter—AIR 9000 Phase 8

This project will deliver 24 MH-60R Seahawk Romeo helicopters to replace the capability of the current 16 S-70B-2 Seahawk Classic helicopters. The acquisition of the Romeos will enable the Navy to provide eight helicopters concurrently embarked in Anzac class frigates and the new Hobart class air warfare destroyers. The remainder will be based at HMAS Albatross in Nowra, New South Wales, conducting training and maintenance.

The first four aircraft were accepted in the United States, initial introduction into service training for aircrew and maintainers commenced, Australian certification activities were completed, and construction of the dedicated Seahawk Romeo facilities at HMAS Albatross and HMAS Stirling, in Western Australia, began.

Multi-Role Helicopter—AIR 9000 Phase 2/4/6

This project will deliver 47 MRH-90 multi-role helicopters, associated support, and training systems for the Army and the Navy.

New aircraft are now being accepted ahead of the revised production schedule that came into effect on 1 July 2013. Nine MRH-90s were accepted during 2013–14, raising the fleet total to 29 aircraft. A retrofit program to modify 12 early production aircraft to the final contracted production configuration standard is also in progress; five aircraft have been accepted out of this program to date. The first of two full flight and mission simulators was accepted into service at Oakey, Queensland, in August 2013; the second arrived in Townsville, Queensland, in May 2014 and will be accepted by the end of 2014.

The project is being managed as a project of concern (see Table 6.6).

New Air Combat Capability

Joint Strike Fighter Aircraft—AIR 6000 Phase 2A/2B

This project will deliver 72 conventional take-off and landing F-35 Joint Strike Fighter (JSF) aircraft and associated support and training systems. Three operational squadrons and one training squadron are planned to enter operational service between 2020 and 2023 to replace the ageing F/A-18A/B Hornet aircraft.

In April 2014, in addition to the previously agreed 14 aircraft, the Government agreed to the acquisition of an additional 58 JSFs and associated support systems and infrastructure.

Production of Australia’s first two JSFs is significantly advanced and is on schedule for delivery and acceptance in 2014–15.

The program delivered its first set of ground support information systems to the international pilot training centre at Luke Air Force Base, Arizona. These systems will be used to support Australia’s first two JSFs and the commencement of US-based Australian pilot training in 2015.

General Manager Land and Maritime

Guided Weapons Branch[1]

Standard Missile-2 Conversion and Upgrade—SEA 4000 Phase 3.2

This project is converting the existing inventory of surface-to-air standard missiles from rail to canister launch configuration for employment with the Hobart class air warfare destroyer, and upgrading a proportion of the missiles from a Block IIIA to a Block IIIB configuration. The project is also upgrading the Standard Missile Intermediate Level Maintenance Facility to enable the recertification and maintenance of Block IIIB missiles.

The project delivered Block IIIB missile components and commenced the Standard Missile Intermediate Level Maintenance Facility upgrade.

Lightweight Torpedo Replacement—JP 2070 Phase 2

This project will deliver MU90 anti-submarine lightweight torpedoes integrated with the Anzac and Adelaide class frigates.

The Navy successfully test-fired an MU90 torpedo against a realistic target. Final operational capability for the MU90 lightweight torpedo system was declared in September 2013, and in-service support arrangements were implemented for the system.

Bridging Air Combat Capability—AIR 5349 Phase 2

This project is delivering new weapons and countermeasures for the F/A-18F Super Hornet.

The project delivered AIM-120 advanced medium-range air-to-air missile training assets and operational AGM-154 joint stand-off weapons, and continued to work with the United States Navy and Air Force to progress the delivery, integration and introduction into service of new weapons and countermeasures for the F/A-18F Super Hornet.

Munitions Branch[2]

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. The modernised facility will meet more stringent and up-to-date environmental and work health and safety standards.

The project continued the commissioning of the modernised propellant manufacturing facility at Mulwala. Approximately 40 per cent of the contracted capability was delivered during the year, and formal testing of the remainder of the plant began in June 2014. A number of technical issues identified throughout the commissioning process will continue to be addressed through a collaborative approach involving all stakeholders to enable the delivery of the remaining elements of the plant at the earliest possible opportunity.

This project continues to be managed as a project of concern (see Table 6.6).

Air Warfare Destroyer

Air Warfare Destroyer Build—SEA 4000 Phase 3

The Air Warfare Destroyer (AWD) Build Project is being delivered under an alliance-based contracting arrangement between the Commonwealth (the DMO), ASC AWD Shipbuilder Pty Ltd and Raytheon Australia. The project will deliver three Hobart class destroyers and their support systems to the Navy.

The project achieved a number of key milestones. For Ship 01, HMAS Hobart, block consolidation was completed, stern release was finalised and combat systems crew training commenced in the US. The keel for Ship 02, HMAS Brisbane, was laid in February 2014. HMAS Hobart system fit-out is well advanced, work is underway on all HMAS Brisbane blocks, and more than 80 per cent of Ship 03 blocks are under construction.

While the ships are coming together, shipbuilding aspects of the program are well over the target cost because of poor productivity.

The Government commissioned an independent review of the project in February 2014, which led to the announcement in June 2014 of a reform strategy to ensure that the program delivers this capability effectively and efficiently.

This project is being managed as a project of concern (see Table 6.6).

Land Systems

Field Vehicles and Trailers—Overlander Program—LAND 121 Phase 3A/5A

LAND 121 Phase 3A is delivering 2,146 unprotected lightweight and light Mercedes-Benz G-Wagon vehicles, together with specialist modules and 1,799 Haulmark trailers, to provide the Army and the Air Force with tactical mobility for training and the flexibility to undertake a wide range of tasks in difficult off-road conditions.

The issue of production vehicles, modules and trailers to units, the refinement of through-life support, and vehicle operator and maintainer training continued. At 30 June 2014, 1,209 vehicles and 802 trailers had been delivered into service Australia-wide.

Bushmaster Protected Mobility Vehicles—LAND 116 Phase 3

This project will deliver 1,015 vehicles in seven variants (troop, command, mortar, assault pioneer, direct fire weapon, air defence and ambulance). They will provide protected land mobility to Army units and the Air Force Airfield Defence Guards. The vehicles comprise 737 vehicles that are to meet the current capability requirement, an additional 70 to meet future operational attrition and 208 to maintain critical skills at the Thales Bendigo site.

The project delivered 84 vehicles to the Army, bringing the total number delivered to Defence to 922.

Additional Lightweight Towed Howitzers— LAND 17 Phase 1C.1

This project will deliver 19 M777A2 lightweight towed howitzers by 1 April 2015, in addition to the 35 lightweight towed howitzers that were delivered under LAND 17 Phase 1A. The delivery of the LAND 17 PH1C.1 Lightweight Towed Howitzers Capability Assurance Program (CAP) is currently subject to consideration by the Government.

The project took delivery of the 19 M777A2 howitzers in Australia. The howitzers are being prepared for issue to the Army. The project also supported the Capability Development Group in the development of the capability proposal for LAND 17 PH1C.1 CAP.

Overlander—Medium/Heavy Capability, Field Vehicles, Modules and Trailers—LAND 121 Phase 3B

This project will deliver 2,707 medium and heavy vehicles in a number of variants, including recovery trucks, integrated load handling systems and flatbeds, in both protected and unprotected configurations. To complement the acquisition, approximately 3,800 modules and flatracks will be supplied and around 1,700 trailers will be acquired to increase payload carrying capacity.

The project entered into contracts with Rheinmetall MAN Military Vehicles Australia for vehicles and modules and Haulmark Trailers Australia for the trailers. Contract start-up has commenced, and product design for both vehicles and trailers is underway.

Digital Terminal Control System—LAND 17 Phase 1B

This project is to 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.

The project achieved initial materiel release, which was defined to include the initial 56 systems bought under an operationally urgent procurement and an additional 76 systems with updated software, and the provision of the associated operator training for those systems.

Artillery Replacement 
155 mm Howitzer—LAND 17 Phase 1A

This project is scoped to deliver 35 M777A2 lightweight towed howitzers, a command and control battle management system based on Advanced Field Artillery Tactical Data System software and course correcting fuses. The project has introduced into service all 35 howitzers and the final version of the battle management system.

The project achieved final materiel release for the towed howitzers and the battle management system and is being prepared for closure.

Maritime Systems

Amphibious Deployment and Sustainment—JP 2048 Phase 4A/B

This project is scheduled to deliver two Canberra class Landing Helicopter Dock (LHD) vessels and associated LHD support system comprising engineering information training, spares, documentation and test equipment.

The project undertook initial contractor sea trials of the first LHD but was unable to complete all trials required for delivery in accordance with the planned schedule. Continuing resource limitations within BAE Systems and the maritime sector have resulted in schedule slippage of the first LHD from early 2014 to late 2014. The second LHD currently remains on schedule for quarter three 2015, but is at risk of being affected by the same industry sector limitations that caused delay on the first LHD.

Anzac Ship Anti-Ship Missile Defence—SEA 1448 Phase 2B

This project will deliver a phased array radar system to the Anzac class frigates for target indication/tracking, mid-course guidance and target illumination for the Evolved Sea Sparrow Missile, and a new dual navigation radar system to replace the existing navigation radar suite.

The project delivered the phased array radar system with the software upgrade to both the phased array radar and combat management systems in HMAS Perth and HMAS Arunta. The capability was successfully tested operationally in August 2013 in HMAS Perth. HMAS Arunta is currently undergoing sea trials after upgrade and HMAS Anzac, the third ship, is almost complete. The upgrade on HMAS Warramunga is progressing.

Amphibious Watercraft Replacement—JP 2048 Phase 3

This project will acquire 12 new watercraft to operate as landing craft with the two Canberra class LHD ships. The landing craft will provide an organic ship-to-shore connection in support of Defence’s amphibious capability, enabling the transport of personnel and equipment between the LHD ships and the shore, including where there are no fixed port facilities or prepared landing facilities.

The project received and accepted the first batch of four LHD landing craft from prime contractor Navantia and completed the installation of military communication and navigation systems.

Standard Missile-1 Missile Replacement—SEA 1390 Phase 4B

This project upgrades four Adelaide class frigates with the Standard Missile-2 surface-to-air mid-course guidance mode missile capability. It will also acquire the weapons and provide missile technician training.

The project achieved Navy Operational Release for the ship weapon system capability and established principal support for three years for the system and its software through United States Foreign Military Sales. Direct commercial arrangements continue to be progressed. Project closure is planned for 2014–15.

Anzac Ship Anti-Ship Missile Defence—SEA 1448 Phase 2A

As part of the Anti-Ship Missile Defence Program, this project will provide the Anzac class frigates with an upgraded combat management system and introduce an infra-red search and track system to the platform.

The project installed an upgraded combat management system and an infra-red search and track system in HMAS Perth. HMAS Arunta is currently on sea trials, and HMAS Anzac, the third ship, is almost complete. The upgrade on HMAS Warramunga is progressing.

General Manager Submarines

Future Submarines

Future Submarine—Acquisition—SEA 1000 Phase 1A

This project will deliver a replacement conventional submarine capability as the Collins class is progressively withdrawn from service on reaching the end of its life.

The project continued to refine operational specifications for the Future Submarine based on informed cost and capability considerations. Formal agreement was reached on Collins intellectual property rights, after which studies on the feasibility of evolving the Collins submarine as an option for the Future Submarine began. This work proceeded in parallel with the completion of investigations into the suitability of European military-off-the-shelf submarines. At the same time, the Future Submarine Program made substantial progress in defining the key Australian requirements that would need to be satisfied by any design option, while also building the core technical competence that will be essential for the robust management of Australia’s future submarine capability. Additionally, an independent cost analysis was initiated to improve the fidelity of program costings.

Notes

  1. In April 2014, Guided Weapons Branch commenced transition to Helicopter Systems Division. The move took effect on 1 July 2014.
  2. In April 2014, Munitions Branch commenced transition to Land Systems Division. The move took effect on 1 July 2014.

Former projects of concern

Table W6.8 Former projects of concern as at 30 June 2014

Project/product name description

Project/product description

Removed

Outcome

Sea Sprite Helicopter

SEA 1411

March 2008

Cancelled

Armed Reconnaissance Helicopter

AIR 87

April 2008

Remediated

M-113 Armoured Personnel Carrier Upgrade

LAND 106

May 2008

Remediated

SF Air Drop Rigid Hull Inflatable Boat Trailers

JP 2088          Phase 1A

September 2009

Remediated

Guided Missile FFG Upgrade

SEA 1390
Phase 2.1

January 2010

Remediated

Project 'Echidna'

AIR 5416
Phase 2

July 2010

Scope reduced

LCM2000 Watercraft for Amphibious Ships

JP 2048
Phase 1A

February 2011

Cancelled

High Frequency Communications Modernisation

JP 2043        Phase 3A

June 2011

Remediated

Air Defence Command and Control System 'Vigilare'

AIR 5333

June 2011

Remediated

Anzac class anti-ship missile defence

SEA 1448
Phase 2B

November 2011

Remediated

Medium and heavy vehicles, trailers and modules

LAND 121
Phase 3B

December 2011

Remediated

Tactical unmanned aerial vehicles

JP 129
Phase 2

December 2011

Remediated

Joint air-to-surface standoff missile

AIR 5418
Phase 1

December 2011

Remediated

'Wedgetail' airborne early and control aircraft

AIR 5077
Phase 3

December 2012

Remediated

Lightweight torpedo replacement

JP 2070        Phase 2/3

December 2012

Remediated

Electronic support measures upgrade for AP-3C Orion aircraft

AIR 5276      Phase 8B

April 2014

Remediated

Expenditure by projects

Table W6.9: Top 30 major projects by expenditure

Project name Project number/ phase Approved project expenditure Cumulative expenditure to 30 June  Budget estimate Revised estimate[1] Final Plan[2] Actual expenditure[3] Variation
      2013 2013–14 2013–14 2013–14 2013–14  
    $m $m $m $m     $m
            (a) (b) (b-a)
General Manager Joint, Systems and Air
Aerospace Systems
Battlefield Airlift - Caribou Replacement  AIR 8000 Phase 2 1,290 278 162 164 146 147 ..
Growler Airborne Electronic Attack Capability AIR 5349 Phase 3 3,037 37 90 291 376 370 -6
Airborne Early Warning and Control Aircraft AIR 5077 Phase 3 3,873 3,452 87 59 60 61 1
Air to Air Refuelling Capability AIR 5402 1,821 1,557 61 29 30 31 1
Electronic Systems
Battlespace Communications System (Land) JP 2072 Phase 2A 460 158 152 114 119 122 3
Next Generation Satellite Communications System JP 2008 Phase 4 869 543 38 39 39 23 -17
Battle Management System LAND 75 Phase 3.4 315 184 30 29 29 19 -10
Military Satellite Capability - Wideband Terrestrial Terminals  JP 2008 Phase 3H 45 8 29 30 31 25 -6
Anzac Electronic Support System Improvements SEA 1448 Phase 4A 269 10 25 22 22 20 -2
Joint Command Support Environment JP 2030 Phase 8 256 147 24 22 22 22 1
Helicopter Systems
Future Naval Aviation Combat System Helicopter AIR 9000
Phase 8
3,197 467 412 425 460 455 -5
Multi Role Helicopter AIR 9000 Phase 2 3,785 2,179 204 244 251 251 ..
New Air Combat Capability
Joint Strike Fighter Aircraft AIR 6000 Phase 2A/2B 13,456 228 231 214 219 223 5
General Manager Land and Maritime
Air Warfare Destroyer 
Air Warfare Destroyer Build SEA 4000 Phase 3 7,848 4,565 625 623 663 659 -3
Guided Weapons Branch
Standard Missile-2 Conversion and Upgrade SEA 4000 Phase 3.2 104 20 37 35 36 35 -1
Lightweight Torpedo Replacement JP 2070 Phase 2 342 274 26 26 26 26 ..
Munitions Branch
Mulwala Redevelopment Project JP 2086 Phase 1 370 329 24 15 15 13 -1
Bridging Air Combat Capability  AIR 5349 Phase 2 288 138 24 8 8 8 ..
Land Systems
Field Vehicles and Trailers - Overlander Program LAND 121 Phase 3A/5A 1,021 386 235 204 220 222 2
Bushmaster Protected Mobility Vehicles LAND 116 Phase 3 1,250 858 62 59 59 59 ..
Additional Lightweight Towed Howitzers LAND 17 Phase 1C 1 77 24 47 29 30 28 -2
Overlander - Medium Heavy Capability, Field Vehicles, Modules and Trailers  LAND 121 Phase 3B 3,469 8 45 45 33 33 ..
Digital Terminal Control System LAND 17 Phase 1B 122 40 41 37 38 43 5
Artillery Replacement 155MM Howitzer LAND 17 Phase 1A 336 135 28 22 22 23 1
Maritime Systems
Amphibious Deployment and Sustainment  JP 2048 Phase 4A/B 3,089 2,391 203 227 247 248 ..
Anzac Ship Anti-Ship Missile Defence SEA 1448 Phase 2B 678 405 73 62 72 71 -1
Amphibious Watercraft Replacement JP 2048 Phase 3 240 49 37 39 47 45 -2
SM-1 Missile Replacement SEA 1390 Phase 4B 407 327 24 7 7 5 -2
Anzac Ship Anti-Ship Missile Defence SEA 1448 Phase 2A 387 283 23 17 23 23 ..
General Manager Submarines
Future Submarines
Future Submarine - Acquisition  SEA 1000 Phase 1A 235 14 58 52 52 44 -8
Total -Top 30 Projects  (Gross Plan)   52,937 19,492 3,158 3,189 3,402 3,356 -46

Notes

  1. The revised budget for 2013–14 was published in the Portfolio Additional Estimates Statements 2013–14.
  2. The Final Plan for 2013–14 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.

Table W6.10: Top 30 major projects by variation

Project name Project number/ phase Initial project approval date Original approval  Price indexation variation Exchange variation Real variation[1] Current approval[17] Real variations 2nd pass approval[2] Scope[3] Transfers[4] Others[5] Total real
      $m $m $m $m $m $m $m $m $m  
General Manager Joint, Systems and Air
Aerospace Systems
Battlefield Airlift - Caribou Replacement  AIR 8000 Phase 2 16 April 2012 1,156 - 133 .. 1,290 - - - .. ..
Growler Airborne Electronic Attack Capability AIR 5349 Phase 3 14 August 2012 1,155 - 395 1,486 3,037 - 1,486 [6] - - 1,486
Airborne Early Warning and Control Aircraft AIR 5077 Phase 3 1 December 1997 2,170 723 -79 1,059 3,873 - 226 [7] 619 215 1,059
Air to Air Refuelling Capability AIR 5402 17 July 2003 2,077 484 -450 -289 1,821 - - -136 -154 -289
Electronic Systems
Battlespace Communications System (LAND) JP 2072 Phase 2A 1 November 2011 436 - 24 .. 460 - - - .. ..
Next Generation Satellite Communications System JP 2008 Phase 4 28 September 2007 885 132 -148 .. 869 - - - .. ..
Battle Management System LAND 75 Phase 3.4 6 December 2005 8 16 -27 318 315 325 - - -7 [8] 318
Military Satellite Capability - Wideband Terrestrial Terminals  JP 2008 Phase 3H 16 June 2011 6 - 3 37 45 37 - - .. 37
Anzac Electronic Support System Improvements SEA 1448 Phase 4A 14 February 2011 8 - 9 252 269 252 - - - 252
Joint Command Support Environment JP 2030 Phase 8 22 August 2006 42 8 .. 207 256 98 109 [9] - - 207
Helicopter Systems
Future Naval Aviation Combat System Helicopter AIR 9000
Phase 8
10 July 2009 .. .. 206 2,990 3,197 3,029 - -39 .. 2,990
Multi Role Helicopter AIR 9000 Phase 2 22 April 2004 3 680 201 3,312 3,785 954 2,597 [10] -239 - 3,312
New Air Combat Capability
Joint Strike Fighter Aircraft AIR 6000 Phase 2A/2B 7 April 2010 2,752 351 -160 10,513 13,456 10,515 - - -3 10,513
General Manager Land and Maritime
Air Warfare Destroyer 
Air Warfare Destroyer Build SEA 4000 Phase 3 19 June 2007 7,207 1,173 -423 -110 7,848 - - -110 - -110
Guided Weapons Branch
Standard Missile-2 Conversion and Upgrade SEA 4000 Phase 3.2 29 August 2011 94 - 10 .. 104 - - - .. -
Lightweight Torpedo Replacement JP 2070 Phase 2 3 July 2001 288 63 -8 .. 342 - - - .. ..
Munitions Branch
Mulwala Redevelopment Project JP 2086 Phase 1 5 October 2006 338 46 -14 .. 370 - - - .. ..
Bridging Air Combat Capability  AIR 5349 Phase 2 31 July 2007 182 24 -18 99 288 - - 99 .. 99
Land Systems
Field Vehicles and Trailers - Overlander Program LAND 121 Phase 3 14 August 2007 2,686 691 160 -2,197 1,021 -2,187 [11] -15 [12] 4 .. -2,197
Bushmaster Protected Mobility Vehicles LAND 116 Phase 3 30 November 1998 295 125 -1 832 1,250 221 619 [13] -8 .. 832
Additional Lightweight Towed Howitzers LAND 17 Phase 1C 1 11 October 2012 69 - 8 .. 77 - - - .. ..
Overlander - Medium Heavy Capability, Field Vehicles, Modules and Trailers  LAND 121 Phase 3B 16 June 2004 2,573 - 184 712 3,469 712 - - .. 712
Digital Terminal Control System LAND 17 Phase 1B 14 February 2006 3 .. 6 112 122 112 - - .. 112
Artillery Replacement 155mm Howitzer LAND 17 Phase 1A 30 November 2009 348 17 -29 .. 336 - - - .. ..
Maritime Systems
Amphibious Deployment and Sustainment  JP 2048 Phase 4A/B 27 January 2004 3 428 -307 2,965 3,089 2,950 5 [15] 9 .. 2,965
Anzac Ship Anti-Ship Missile Defence SEA 1448 Phase 2B 1 November 2005 249 76 -10 363 678 215 - 149 [16] .. 363
Amphibious Watercraft Replacement JP 2048 Phase 3 24 February 2009 3 .. 12 225 240 225 - - .. 225
SM-1 Missile Replacement SEA 1390 Phase 4B 12 July 2004 553 128 -65 -209 407 -209 - - - -209
Anzac Ship Anti-Ship Missile Defence SEA 1448 Phase 2A 26 November 2003 449 101 -3 -160 387 - - -160 .. -160
General Manager Submarines
Future Submarines
Future Submarine - Acquisition  SEA 1000 Phase 1A 30 April 2012 214 - 5 15 235 - - -8.124 23.293 15.169
Total -Top 30 Projects  (Gross Plan)     26,253 5,267 -383 22,532 52,937 17,250 5,027 180 74 22,532

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 occasions, the second pass stage is funded as a separate project. Many of the projects detailed in the Table were approved before the two-pass process was implemented.
  3. Scope - Any Real Cost Increase / Decrease provided to address a formal scope increase/decrease.
  4. Transfers - Any Real Cost Increase/Decrease to a project as a result of a transfer in budget to another Project, Group or to Sustainment with no net change to the existing Project Approval.
  5. Others - All other Real Variations e.g. Real Increases needed to fund underestimates/budget overruns.
  6. Acquisition of 12 new-build EA-18G Growler aircraft in lieu of modifying 12 existing F/A-18F Super Hornet aircraft to growler configuration.
  7. Increase in scope associated with the decision to purchase two additional aircraft (to a total of six) in June 2004.
  8. Government agreed at 2012-13 Budget to reduce scope by cancelling the installation in the M-113 fleet.
  9. Increase in scope to further develop the Joint Planning Suite approved in September 2011.
  10. Incorporation of Phase 4 Black Hawk upgrade/replacement and Phase 6 Maritime Support Helicopter and Full Flight and Mission Simulator facilities, April 2006.
  11. 2nd Pass approval by government to purchase additional 58 F-35 aircraft
  12. Decrease in scope to recognise the transfer and management of Medium and Heavy Capability, Field Vehicles, Modules and Trailers to LAND 121 Phase 3B.
  13. Reduction represents the return of Enhanced Land Force Funding.
  14. 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. 
  15. 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.
  16. The Original Approval plus Variations may not add to Current Approval due to rounding.

Table W6.11: Current status of previously reported Top 30 major projects (projects reported in the last five financial years)

Project name Project Last Approved Cumulative Actual Status report
  number/ financial project expenditure 2013–14  
  phase year expenditure to 30 June 2013    
    reported in        
    top 30 $m $m $m  
General Manager Joint, Systems and Air
Aerospace Systems
AP-3C Electronic Support Measure Upgrade  AIR 5276 Phase 8B 2009-10 130 90 15 This project upgrades obsolete components of the AP-3C's AN/ALR-2001 Electronic Support Measure (ESM) System. Twelve major components or approximately 40 per cent of the ESM System will be replaced, the software will be re-hosted, and most of the ground support environment will be replaced.

During 2013-14, this project achieved In-Service Date (first aircraft), a key milestone supporting removal from the Project of Concern list in April 2014. The project also accepted into service the upgraded Operational Mission Simulator and Part Task Trainers.
F/A-18 Hornet Upgrade AIR 5376 Phase 2 2011-12 1,881 1,636 10 This project has provided several upgrades to the F/A-18 (Classic) Hornet weapon systems to achieve improved mission situational awareness, including radar and electronic warfare modifications and enhanced data recording capabilities. The project achieved Final Materiel Release for all electronic warfare elements in September 2012. Remaining project initiatives provide for an updated flight simulator for F/A-18 aircrew training, delivered initially as part of the earlier AIR 5376 Phase 2 project. Updates to the flight simulator are currently underway to better align the simulator with upgraded aircraft capability.
AP-3C Capability Assurance Program AIR 5276 CAP 1 2009-10 88 69 2 This project 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 with METADATA capability and install a Local Area Network on the AP-3C Orion.

During 2013-14, this project successfully upgraded five AP-3C Orion aircraft and commenced modification of the last two aircraft.
Bridging Air Combat Capability AIR 5349 Phase 1 2012-13 3,307 2,726 10 Phase 1 of this 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 planned withdrawal date of 2030.

During 2013-14, this project has continued to support the procurement of spares through Foreign Military Sales Cases and integration and service release for weapons. 
Maritime Patrol and Response Aircraft System AIR 7000 Phase 2 2012-13 3,505 99 24 This project will acquire eight P-8A Poseidon aircraft and related systems as part of a cooperative program with the United States Navy to replace the AP-3C Orion.

During 2013-14, this project achieved Second Pass Government Approval. The project subsequently authorised the United States Navy to procure the first aircraft components for Australia’s P-8A aircraft.  
C-17 Globemaster III AIR 8000 Phase 3 2012-13 1,697 1,346 22 This project provides a global heavy airlift capability based around the Boeing C-17 Globemaster III aircraft and related provisions, including an enhanced United States common electronic warfare self-protection system. 

During 2013-14, this project continued delivering remaining C-17 sustainment materiel, including spares and the procurement of ancillary items such as training devices, role expansion equipment, ground support equipment and materiel handling equipment.
Additional C-17A Globemaster III AIR 8000 Phase 4 2012-13 559 422 17 This project provided an additional two C-17 Globemaster III aircraft and related provisions to the existing global heavy airlift capability acquired under Project Air 8000 Phase 3. Both aircraft are in service with the Air Force following the installation of the enhanced United States common electronic warfare self protection system leading to the achievement of Final Operational Capability.

During 2013-14, this project continued delivering remaining C-17 Globemaster III sustainment materiel, including spares and the procurement of ancillary items such as ground support equipment and materiel handling equipment.
Airbourne Surveillance for Land Operations JP 129 Phase 2 2012-13 96 63 9 This project has delivered two Tactical Unmanned Aerial Systems. Each comprise five air vehicles, two ground control stations, a tactical launch and recovery element, associated tactical support systems, logistics and training.

During 2013-14, the project declared Final Materiel Release marking the completion and release of the DMO acquisition supplies required to support the achievement of Final Operating Capability.
Electronic Systems
Ultra High Frequency Satellite Communications System JP 2008 Phase 5A 2012-13 437 328 8 This project procured 20 25kHz Ultra High Frequency Satellite Communication channels via a hosted payload on a commercial Intelsat satellite to provide coverage of the Indian Ocean Region. The project will also deliver associated ground infrastructure to provide network control upgrades and data channel increases.

During 2013-14, the IS-22 reached its final orbital location in the Indian Ocean Region. The Network Control System software was demonstrated to the North Atlantic Treaty Organisation and the United States Department of Defense.  In 2014-15, the system will be enhanced in order to provide additional capacity through an Integrated Waveform capability.
Battlespace Communications Systems JP 2072 Phase 1 2011-12 259 207 15 This project will provide a multi phase joint project to enhance ADF land element communications through the development of integrated battlespace communications architecture. The project will define the architecture, system design and procure digital communications radios required by LAND 75 Phase 3.4 and LAND 125 Phase 3A.

During 2013-14, most of the Final Material Release and Introduction into Service activities were completed.
High Frequency Modernisation  JP 2043 Phase 3A 2010-11 580 442 7 This project will provide replacements for Naval High Frequency Stations at six sites; replace Air Force High Frequency stations at four sites; upgrade the design and performance of the systems replaced and upgrade selected Mobile Platforms.

A contract was entered into on 20 June 2014 for the delivery of improved signal processing, known as the Nullarbor Capability, as well as contract changes to extend the Network Operation Support Contract and Support Services Contract  to provide for the continued support of the Defence High Frequency Communications System, inclusive of the integrated Nullarbor capability.
ADF Deployable Logistics Systems JP 2077 Phase 2B.2 2011-12 21 21 - This project closed in May 2013.
Dismounted Battlegroup and Below Command, Control Communication System LAND 125 Phase 3A 2011-12 107 81 10 This project delivers Dismounted Battle Management Systems including Command Post Systems to the ADF in cooperation with LAND 75 Phase 3.4 and JP 2072 Phase 1.

During 2013-14, the project accepted all remaining equipment which will be issued to the Army in 2014-15.
Tactical Information Exchange Domain JP 2089 Phase 2A 2010-11 104 68 12 This project will provide Variable Message Format and Link-16 integrated with the Mark 3E Combat Management System on the Anzac class frigates and provide the initial common support infrastructure to support the Tactical Information Exchange Domain.

During 2013-14, the Anzac Multi-Link Upgrade completed Initial Material Certification for the Lead Ship and is progressing toward Initial Operational Release in September 2014.  Installation of the follow-on ships has begun.  The Initial Common Support Infrastructure is being transitioned from a proof of capability to an operational capability.
New Air Defence Command and Control Systems for Control Units 2 & 3 AIR 5333 2011-12 274 246 .. This project, Vigilare, has provided replacement Air Defence Command and Control Systems for the Northern and Eastern Regional Operations Centres. The project was completed and closed in January 2014 with the capability now in operation.
New Air Combat Capability
Detailed Analysis and Acquisition Planning AIR 6000 Phase 1B 2009-10 103 98 - This project has been completed.
Helicopter Systems
Armed Reconnaissance Helicopter AIR 87 Phase 2 2012-13 2,033 1,858 7 This project delivered 22 Tiger Armed Reconnaissance Helicopters, a software support facility, an electronic warfare mission support system, ground mission equipment, facilities and a training system supported by simulation-based training devices.

The final acceptance milestone was achieved in 2013 and the acquisition contract completed in July 2013.
General Manager Land and Maritime
Guided Weapons Branch
Lightweight Torpedo Replacement JP 2070 Phase 3 2011-12 303 272 3 This project proceeded with implementation of the Underwater Warfare System.  Navy Operational Release for the Underwater Warfare System component and subsequent project closure is planned for 2015-16. 
Follow-On Stand Off Weapon AIR 5418 Phase 1 2011-12 317 284 .. The project delivered AGM-158 Joint Air to Surface Stand-Off Missiles for the F/A-18. The delivery of missiles was completed in 2012-13.
Evolved Sea Sparrow Missiles SEA 1428 Phase 4 2009-10 88 84 ..' The project is delivering a follow-on buy of Block 1 Evolved Sea Sparrow Missiles and canisters for the Adelaide and Anzac Class Frigates. The delivery of missiles continued throughout 2013-14.
Munitions Branch
Explosive Ordnance Reserve Stocks JP 2085 Phase 1B 2008-09 235 206 .. This project was established to supplement stocks of a range of high priority munitions.  The project scope was subsequently expanded to acquire the Excalibur and SMArt 155 artillery munitions and manage their integration with the Advanced Field Artillery Tactical Data System. 

During 2013-14, this project finalised introduction into service of the Excalibur and SMArt 155 munitions, the last items acquired under this project.  The project also established Safety Danger Zones for the Excalibur and SMArt 155 munitions and commenced reconciliation activities in preparation for project closure.
Land Systems 
Direct Fire Support Weapons LAND 40 Phase 2 2010-11 145 39 .. This project will deliver two new direct fire support weapons, a M3 Carl Gustaf medium direct fire support weapon and a Lightweight Automatic Grenade Launcher.

During 2013-14, the introduction into service of the M3 Carl Gustaf and associated sights was completed and the capability accepted. The acquisition of the Lightweight Automatic Grenade Launcher through a new open tender was agreed and the project continues to be managed as a Project of Concern.
Counter Rocket, Artillery & Mortar (C-RAM) LAND 19 Phase 7A 2012-13 260 175 1 This project delivered the Counter – Rocket, Artillery and Mortar capability. Both Final Materiel Release and Final Operational Capability – Australia were achieved in January 2013.  A submission seeking Government approval to proceed to full introduction into service of this capability is being prepared.

During 2013-14, this project commenced remediating the capability post deployment in Afghanistan.
Australian Protected Route Clearance Capability JP 154 Phase 3A 2012-13 74 32 3 Project will deliver an Australian Protected Route Clearance Capability (APRCC) which includes two new vehicle platforms, the Husky Mine Detection Vehicle and the High Mobility Engineer Excavator (HMEE).  The project is also delivering eleven mine rollers (SMR-II) to be used by Protected Mobility Vehicles.  The APRCC will significantly improve ADF force protection capabilities and counter the evolving threat from Improvised Explosive Devices. 

During 2013-14, this project commenced the introduction into service of the APRCC into the three Army combat brigades and the training centre, remediated the APRCCs for use in Australia and completed delivery of the training equipment.  The project also commenced the integration of the Battle Management System into the HMEE platform and the communications system into the Husky platform.
Upgrade of M-113 Armoured Vehicles LAND 106 2012-13 885 790 1 This project delivered 431 upgraded M113AS4 vehicles in seven variants, with the final vehicle delivered in September 2012.

During 2013-14, this project achieved certification for transportation by air, sea, road and rail, and the safe carriage of a missile system. Final Materiel Release was achieved in June 2014.  Responsibility for on-going support of the family of vehicles has been transferred to the M113 sustainment program and project closure activities were commenced.
Maritime Systems
Guided Missile Frigate Upgrade Implementation SEA 1390 Phase 2.1 2010-11 1,453 1,352 14 This project proceeded with implementation of the Underwater Warfare System.  Navy Operational Release for the Underwater Warfare System component and subsequent project closure is planned for 2015-16. 
General Manager Submarines
Collins 
New Heavyweight Torpedo SEA 1429 Phase 2 2009-10 427 299 3 This project is acquiring the United States Navy Mk 48 Mod 7 Advanced Capability (ADCAP) Heavyweight Torpedo for the Collins Class Submarine to replace the Mk 48 Mod 4 Heavy Weight Torpedo previously in service.

During 2013-14, this project gained Operational Release of the latest software version and completed implementation of platform modifications and testing in HMAS Rankin. HMAS Collins will be the final submarine to be modified during a full cycle docking planned for 2016-18. If this docking schedule is maintained, project completion will be in 2019.
Collins Class Submarine Reliability and Sustainability SEA 1439 Phase 3 2008-09 412 335 9 This project is providing upgrades to Collins Class platform systems to improve the fleet's reliability, sustainability, safety and capability.

During 2013-14, this project completed modifications in HMA Ships Rankin, Dechaineux and Collins in scheduled maintenance periods. This included modifications to the fixed fire fighting system, automation of the sewage system, diesel engine safety improvements, and Special Forces safety enhancements. Construction of the diesel engine land based test facility is progressing as planned. Key activities that occurred between 1 July 2013 and 30 June 2014 include completion of project modifications in HMAS Rankin and the achievement of Initial Operational Release for the Torpedo Decoy System.

Notes

  1. Project closed in 2013-14 refer to Table W6.12 Closed major projects below

Closed major materiel acquisition agreements

In 2013–14, 19 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.

Table W6.12: Closed major projects in 2013–14[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
AP-3C Electronic Support Measures Automatic Test Equipment Replacement AIR 5276 Phase 8A 15 14 2
Replacement Air Defence Targets JP 66 Phase 1 3 3 ..
Electronic Systems
Joint Command Support Environment JP 2030 Phase 7 71 65 6
Battlefield Command Support System LAND 75 Phase 3.2 99 79 20
Battlefield Command Support System LAND 75 Phase 3.3 86 66 20
Battlefield Command Support System LAND 75 Phase 3.3B 25 23 2
Jindalee Operational Radar Network JP 2025 Phase 3/4 1,249 1,239 10
ADF Deployable Logistics Systems  JP 2077 Phase 2B2 49 21 28
Deployable Accredited Secure Intelligence Facilities JP 8001 Phase 3C2 12 10 2
Combat Identification for Land Forces LAND 146 Phase 2 7 3 4
Nulka SEA 1397 Phase 4 21 20 ..
Active Missile Decoy SEA 1229 Phase 2/3 193 193 ..
Vigilare AIR 5333 274 246 28
General Manager Land and Maritime
Land Systems
Chemical, Biological, Radiological and Nuclear Defence (CBRND) JP 2110 Phase 1A 15 7 7
Special Operations Vehicle - Special Reconnaissance JP 2097 Phase 1A 77 61 17
Water Purification Desalination JP 2059 Phase 3 35 32 3
Joint Theatre Distribution JP 126 Phase 2 73 45 27 [3]
Maritime Systems
Interim Maritime Humanitarian Assistance and Disaster Relief Capability JP 3033 130 128 2
Mine and Obstacle Avoidance Sonar (MOAS) Capability for the Anzac Ships SEA 1348 Phase 3C 66 63 4

Notes

  1. Classified projects have been closed during 2013–14 and is not included in this table due to its classified nature.
  2. $0.051 million transferred to Sustainment.
  3. The Savings in Project Approval may not add to Project Approval Value less Total Expenditure due to rounding.

New major projects

During 2013–14, 15 major projects were transferred to the DMO following Government approval. The DMO classifies a project as having been transferred on the signing of materiel acquisition agreement between DMO and Defence.

Table W6.13: New major projects transferred to the DMO in 2013–14[1]

Project Name Project number/ phase Programmed estimate Actual expenditure Acquisition cost categorisation[2] Project information
    2013–14 2013–14    
    $m $m    
General Manager Joint, Systems and Air
Aerospace Systems
AP-3C Capability Assurance Program 2 AIR 5276 CAP2 15 15 4 CAP2 seeks to address obsolescence and supportability issues for the ARC-222 VHF radio, Operational Mission Simulator, Advanced Flight Simulator including the Visual System, Automatic Flight Control System and Fuselage Station 1117 on the AP-3C platform.
AEW&C Interoperability Compliance Upgrade AIR 5077 Phase 5A 1 1 4 AIR 5077 Phase 5A seeks to address E-7A Wedgetail interoperability and compliance issues associated with identification friend or foe, datalink, communications sub-systems in support of Joint and Coalition operations. The project has been provided seed fu
Electronic Systems
Future Frigate SEA 5000 Phase 1A 6 6 4 SEA 5000 Phase 1A will develop Radar technology for possible use in the future frigate program.
Battlefield Command System As Part of Land 200 Tranche 2 LAND 75 Phase 4 17 17 3 Land 75 Ph4 seeks to expand the basis of provisioning beyond that approved under Land 75 Ph3.4 to equip additional vehicles with a Battle Management System.
Battlespace Communications System (LAND) as part of Land 200 Tranche 2 JP 2072 Phase 3 25 35 3 Continuation of the rollout of materiel in support of the BMS-C2. Evolution of the BCS(L) architecture through procurement of new subsystems under Workpackages B- D.
Space Surveillance Telescope JP 3029 Phase 2 .. - 4 JP 3029 Phase 2 will support the relocation of a Space Surveillance Telescope (SST) from New Mexico, USA to a site near Harold E HOLT (NCS HEH) Exmouth, WA.
Helicopter Systems
Tactical Information Exchange Domain (Datalinks - Armed Reconnaissance Helicopter (ARH)) LAND 2089 Phase 3B 1 1 4 Funding for pre first pass expenditure.
This project installs an interim tactical data link capability into the Tiger fleet which will allow aircraft to be operated as nodes within Army's Battle Management System
General Manager Land and Maritime
Land Systems
Deployable Sepcial Operations Engineer Capability JP 3025 Phase 1 1 1 3 JP 3025 Phase 1 will provide a deployable ADF Counter- Chemical, Biological, Radiological, Nuclear, Explosive (C-CBRNE) capability. The project will deliver capabilities to Special Operations Command elements, primarily the Special Operations Engineer Reg
Chemical, Biological, Radiological and Nuclear Defence JP 2110 Phase 1B 2 .. 3 JP 2110 Phase 1B (Chemical, Biological, Radiological and Nuclear Defence (CBRND)) will introduce new CBRND capabilities into service for ADF deployed elements. This includes the capability to detect, identify and monitor, warn and report a CBRN threat. It
Night Fighting Equipment Replacement LAND 53 Phase 1BR .. .. 3 Land 53 Phase 1BR will provide Night Vision Goggles, Laser Aiming and Illumination Devices, Laser Aiming Illumination and Ranging Devices, and mounting systems to close combatant and general combatant service personnel.
Maritime Systems
ANZAC Air Search Radar Replacement SEA 1448 Phase 4B 4 4 4 This project will deliver a modern Long Range Air Search Capability to provide a volume air search capability to the ANZAC Class of ships.  The Project will also replace the existing Identification Friend or Foe capability with a new enhanced capability.  During 2013-14, this project successfully completed the build and test of a single radar tile, and the completion of an initial impact assessment for the physical integration of the radar into the ANZAC Class ships.
Collins Submarine Management Program
Collins Obsolescence Management - Integrated Ship Control Management & Monitoring System Obsolescence SEA 1439 Phase 3.1 12 11 4 SEA 1439 Phase 3.1 will remediate the existing Integrated Submarine Control Management and Monitoring System (ISCMMS) aboard the six Collins class submarines. The project will also include improvements to associated shore-based infrastructure. 
Total New Major Projects   84 91    

Notes

  1. 3 new classified projects have been created during 2013-14 and are not included in this table due to their classified nature
  2. Acquisition Cost Categorisations are taken from the DCP where applicable and are as follows:
    Level 1 (Very High): >$1,500 million
    Level 2 (High): $500m-$1,500 million
    Level 3 (Moderate): $100m-$500 million
    Level 4 (Low): <$100 million

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.

Table W6.14: Top 10 minor projects

Project name Project number/ phase Approved project expenditure Cumulative expenditure to 30 June 2013 Budget estimate Revised estimate Actual expenditure Variation
        2013–14 2013–14 2013–14  
    $m $m $m $m $m $m
Navy
Digital Voice Recording Equipment NMP1822 16 7 3 3 3 ..
Army
Enhanced Static Line Parachute Capability AMP058.08 29 9 8 12 10 -2
Enhanced Land Force Weapons Training Simulation System AMP029.44 35 12 5 7 7 ..
Australian Light Armoured Vehicle Crew Procedural Trainers AMP002.12 30 26 5 5 4 -1
Chinook Passenger and Crew Seating AMP015.36 3 1 4 2 1 -1
Kiowa Pilot Seating AMP015.58 7 2 3 2 1 -1
Airforce
Deployable Tactical Air Control and Navigation AFM01006 6 - 3 .. - ..
Multi-Band, Multi-Mode Radio Capability AFM00975 5 2 3 .. .. ..
Tactical Communications Router AFM00935 4 1 2 3 3 ..
Aeronautical Information Services AFM00930 16 13 2 2 1 -1
Total - Top 10 Minor Projects   152 72 38 36 30 -6

Closed minor materiel acquisition agreements

In 2013–14, 36 minor projects were successfully closed. The total reduction of project approval at closure represented 31 per cent of the project approval value for the projects.

Table W6.15: Closed minor acquisition agreements

Project name Project number/ phase Project approval value Total expenditure Savings in project approval[1][9]
    $m $m $m
Air Force Minor Projects
Controlled Environmental Soft Shelters AFM00995 2 2 .. [2]
Interim Upgrade of the Hardware and Operating System of the Airborne Navigation Trainer/Synthetic Trainer (ANT/SNT) AFM01002 6 6 ..
RAAF Intelligence Deployable Local Area Network (RIDL) AFM01003 5 5 ..
Army Minor Projects
Black Hawk Electronic Warfare Self Protection EWSP AMP0015.41 11 10 ..
ASLAV Crew Procedural Trainer AMP002.12 40 30 10
Light Tracked Bulldozer AMP007.25 8 5 3[3]
Light Wheeled Tractor AMP007.26 11 7 4
Self Propelled Vibrating Roller AMP007.27 8 5 3[4]
Black Hawk Fast Rope Insert/Extraction System AMP015.49 4 2 2
Kiowa Helicopter Navigation Rationalisation Project AMP015.50 8 8 1
CH-47D Chinook Internal Lighting Upgrade AMP015.55 1 1 1
Deployable ATM Hub Assembly (DAHA) AMP023.54 5 3 2[5]
Remote Operations Video Enhancement Receiver (ROVER) AMP024.25 3 2 2
Communication Security Monitoring System (CMS) for Australian Army AMP025.33 3 3 ..
Image Capture and Transfer System (ICATS) for Australian Army AMP028.19 5 4 1
Technical Data Management Capability Project AMP036.02 19 18 1
Medium Artillery Replacement Project (MARAP) AMP040.10 21 .. 21
SOCOMD Long Range Sniper Weapon System AMP048.37 2 2 0
Bullet Trap Blank Firing Attachment AMP048.42 11 7 4
Motar Computer Fire Control Replacement AMP048.44 4 3 2
Field Refrigeration Storage and Distribution AMP081.03 22 11 11[6]
Replacement Truck Fire Fighting Rural (TFFR) AMP085.06 12 9 3[7]
Single Channel Radio System (SCRS), Functional Test Capability (FTC) AMP087.22 5 5 1[8]
Concept Evaluations AMP500.02 3 1 2
Project Develoment Funding AMP500.03 3 1 2
AHQ Equipment Entitlement Variations FY 10/11 AMP500.04 5 1 5
Machine Gun Minimi, Tri-Rail AMP500.06 2 2 1
AHQ Equipment Entitlement Variations FY 11/12 AMP500.07 5 1 4
Marksman Rifle Systems AMP500.08 5 4 1
Navy Minor Projects
Crash Data Recorders for RAN Aircraft NMP1724 22 19 2
Naval Aviation Night Vision Capability - Aircraft NMP1809PH1 6 4 2
Chemical Warfare Detection System NMP1820 11 7 5
Enhanced High Speed Data (EHSD) NMP1840 21 17 4
People Services Minor Projects
Occupational Hygiene Monitoring Equipment Project HMP00001 2 1 1
Joint Minor Projects
Joint Electronic Fuel Management JMP06007 20 20 1
Materiel Entitlements Management System (MEMS) JMP08001 3 .. 3
Total Closed Minors   327 225 102

Notes

  1. This is a reduction in Materiel Acquisition Agreement agreed price at project closure and includes transfers to other projects and sustainment products.
  2. $0.170 million transferred to Materiel Sustainment Agreement CA 47
  3. $0.120 million transferred to Materiel Sustainment Agreement CA 24
  4. 4.  $0.288 million transferred to Materiel Sustainment Agreement CA 24 
  5. $0.105 million transferred to Materiel Sustainment Agreement CA 31
  6. $1.075 million transferred to Materiel Sustainment Agreement CA 22
  7. $0.592 million transferred to Materiel Sustainment Agreement CA 46
  8. $0.146 million transferred to Materiel Sustainment Agreement CA 31
  9. The Savings in Project Approval may not add to Project Approval Value less Total Expenditure due to rounding.
  10. The Savings in Project Approval may not add to Project Approval Value less Total Expenditure due to rounding.

New minor projects

During 2013–14, 7 minor projects were transferred to the DMO following Government approval. The DMO classifies a project as having been transferred on the signing of major acquisition agreements between DMO and Defence.

Table W6.16: New minor projects transferred to the DMO in 2013–14

Project name Project number/ phase Programmed estimate Actual expenditure Acquisition cost categorisation[1] Project information
    2013-14 2013-14    
    $m $m    
Air Force Minors
Integrated Airbase Protection System (IAPS) AFM00998 1 - 1 Integrated Airbase Protection System
School of Air Warfrare (SAW) Training Environment Remediation AFM01029 .. .. 4 The project received seed funding to undertake a Project Definition/Scoping Study in order to obtain near tender quality costing data for AFM01029 - School of Air Warfare (SAW) Training Environment Remediation.
Navy Minors
Navy Minor Projects Business Process NMB8000 .. .. 4 This business process will deliver services to develop unapproved project capability documentation such as developing proposals, conducting studies, equipment testing and assessing schedule and price structure which is required to achieve project approval.  During 2013-14, this business process was not required to achieve any significant activity.
Naval Aviation Night Vision Capability - FFG NMP1846 2 3 4 This project will deliver modifications to the existing aviation and navigation lighting systems on three Adelaide Class ships to make them compatible with current night vision goggles. This modification will allow helicopter pilots using night vision goggles to land on the ship, without interference from the ship's lights. During 2013-14, this project achieved installation on the first ship and initial testing. 
Warship Automatic Identification System (W-AIS) NMP1883 Phase 1 1 1 4 This project will deliver a Warship Automatic Identification System for ships to comply with International Maritime Organisation regulations on collision avoidance. During 2013-14, this project achieved installation and testing on the initial Minor War Vessels. 
Typhoon Training System for the DDG and LHD at West Head Gunnery Range (WHGR) NMP1928 1 .. 4 This project will deliver a Typhoon Weapon Mark 25 Modification 2 System and associated training consoles at West Head Gunnery Range at Flinders, Victoria.  The system will support training for the Navy gunnery system being installed on the Landing Helicopter Dock and Air Warfare Destroyer ship classes.  During 2013-14, this project achieved initial planning and design activities.
International Policy Minors
Tongan Defence Services Landing Craft IPM0002 2 .. 4 This project will deliver one Landing Craft Medium with sea lift capability to assist the Tonga Defence Services with the transport of equipment and supplies within the Tongan archipelago.  During 2012-13, this project achieved delivery of all contractor plans and the preparations for the conduct of design reviews.
Total New Minors   7 3    

Notes

  1. Acquisition Cost Categorisations are taken from the DCP where applicable and are as follows:
    Level 1 (Very High): >$1,500 million
    Level 2 (High): $500m-$1,500 million
    Level 3 (Moderate): $100m-$500 million
    Level 4 (Low): <$100 million

Program 1.1 key performance indicators

The key performance indicators for Program 1.1 are to deliver major and minor capital equipment within the agreed parameters for schedule, scope and budget. The detail varies with each project and is specified in the materiel acquisition agreements.