Annual Report 2004-05

Approved Major Capital Equipment Projects

Top 30 Projects by 2004-05 Expenditure

AIR 5400 Ph 1/2 and 3 Air-to-Air Weapons Capability and Air-to-Air Follow-on Buy

Prime contractors: Raytheon, through Foreign Military Sales with the United States Government, and MBDA UK.

The two separate project phases are managed as one project due to their interrelated capability. The project seeks to maintain a credible air-to-air weapons capability for F/A-18 aircraft. To achieve this, new beyond-visual-range missiles (the advanced medium range air-to-air missile) and within-visual-range missiles (the advanced short-range air-to-air missile) have been acquired.

Service release of the advanced medium range air-to-air missile capability occurred in December 2001, with initial deliveries of the missile taking place during 2001.

United States Government approval was granted in late 2001, for the Australian acquisition of a more advanced model of the advanced medium range air-to-air missile. Further deliveries of the less capable missile were halted, with the more advanced variant of the missile being delivered in lieu of outstanding deliveries.

Management and support responsibility of both variants of the advanced medium range air-to-air missile has now been transferred to the in-service support organisation.

Service release of the advanced short-range air-to-air missile occurred in July 2004 and transition to the in-service management agencies will be completed by December 2005. Transition of management responsibility for the maintenance and software support facilities contract with MBDA will also be transferred to in-service management, commencing in August 2005.

The project did not achieve its 2004-05 expenditure targets. While the accelerated delivery of the software support and maintenance facilities resulted in some expenditure from 2005-06 being brought forward into 2004-05, a number of significant planned expenditures did not occur. These included delays in scheduled Foreign Materiel Sales payments and delayed transfer of funds to supporting projects.

This project contributes to Air Force capability.