Annual Report 2004-05

Approved Major Capital Equipment Projects

Top 30 Projects by 2004-05 Expenditure

AIR 5333 New Air Defence Command and Control Systems for 2CRU/3CRU (previously reported as 2CRU/3CRU Control and Reporting Units)

Prime contractor: Boeing Australia Ltd

This project will replace the ageing air defence command and control systems at Nos. 2 and 3 Control and Reporting Units located at RAAF Tindal (Northern Territory) and RAAF Williamtown (New South Wales), and will design and implement an integrated, real-time, ADF air defence system and communications network. Acquisition and logistic support contracts were signed with Boeing Australia Ltd on 1 March 2004. The first command and control system is expected to be installed and operational at Tindal by mid-2007.

The project's integrated baseline review was completed in late 2004, disclosing a protracted ramp-up of Boeing Australia's project team that resulted in slower work progress than had been contracted. Consequently, recurring monthly progress payments to the contractor were less than programmed. Also, the reduced rate of progress was anticipated to impede achievement of the next major project milestone and its associated payment to the contractor, resulting in a revised estimate for the year of $21m being submitted ¹. The project slightly over-achieved against the correct revised expenditure estimate.

The preliminary design review, the third major contractual milestone programmed to occur during 2004-05, was held in May 2005, with formal completion occurring on 21 July 2005.

The project contributes to Air Force capability.

1. This amount was incorrectly reported in the Portfolio Additional Estimates Statements 2004-05 as $30m. [ back ]