Annual Report 2004-05

Approved Major Capital Equipment Projects

Top 30 Projects by 2004-05 Expenditure

AIR 5402 ADF Air Refuelling Capability

Prime contractors: EADS CASA (acquisition) and through-life support (not yet to contract) under negotiation

This project will provide five new generation Airbus A330 multi-role tanker transport aircraft, together with through-life support services including engineering, maintenance, spares, technical data, software and training support for the new fleet.

The acquisition contract was signed with EADS-CASA on 20 December 2004. The contractor has successfully met the initial payment milestones on schedule, signifying a satisfactory rapid ramp-up and completion of preliminary design activities up to and including the conduct of the Preliminary Design Review.

The in-service date (comprising two aircraft, completion of qualification testing and issue of the military airworthiness certificate) is planned for late 2009.

Slippage in the through-life support contract from late 2004 to 2005-06 is due to negotiations on a critical aspect of the contract. Development of the through-life support contract will continue in 2005-06. Preliminary design activities commenced in early 2005 and were completed in July 2005.

The lower than expected expenditure in 2004-05 was due primarily to economic adjustments and refinement of earned value payments following completion of the baseline review.

This project contributes to Air Force capability.