The Capital Facilities Program funds the construction of buildings and infrastructure projects including specialised ranges, training and accommodation facilities, maintenance hangars, messes and warehouse facilities. The program develops facilities and infrastructure to support the introduction of new military equipment into operational service, as well as maintaining facilities to support Defence personnel where they work, live and train. The program comprises approved and unapproved major and medium projects.
Approval processes for capital facilities projects vary according to value. Major capital facilities projects cost at least $6m and are subject to Government consideration and review by the Joint Statutory Committee on Public Works. Medium facilities projects have budgets between $250,000 and $6m. Medium facilities projects between $5m and $6m are subject to ministerial approval. Projects under $5m are approved by departmental delegates.
The three major Capital Facilities Program projects in 2005–06 were:
- the RAAF Williamtown Redevelopment Stage 1 and airborne early warning and control works at RAAF Williamtown;
- the Special Forces Training Facilities project at Holsworthy; and
- the RAAF Amberley Redevelopment Stage 2 works.
Total expenditure on Defence's capital facilities program in 2005–06 was $83.9m above the projected result of $346.4m. This result was due primarily to the work completed at RAAF Amberley, where contractors worked 24 hours a day to strengthen and widen the main runway pavement. Other projects where expenditure exceeded projected results included the RAAF Williamtown Redevelopment Stage 1 and airborne early warning and control works at RAAF Williamtown, and the Special Operations Working Accommodation project at Holsworthy.
The operating expenses component of Defence's major capital facilities program was $9.3m above the projected result of $41.2m. Operating expenses include all costs incurred in developing projects such as preliminary designs, environmental clearances and cost estimates for facilities including whole-of-life operating and maintenance costs. The 2005–06 result represented a substantial increase in project development activity and has significantly increased the aggregate value of projects approved for construction.
Approved Major Capital Facilities Projects
In 2005–06, the Government approved six major projects. Of these, two projects received parliamentary approval. These projects are the Holsworthy 171 Aviation Squadron Relocation and HMAS Cairns Base Redevelopment and both are reported in Tables 3.3 and 3.4. The remaining four projects are scheduled for consideration by the Parliament in 2006–07. In 2005–06, parliamentary approval was also obtained for seven projects approved in late 2004–05. During the same period, 16 medium projects received either departmental or ministerial approval to proceed.
Table 3.3 and the following descriptions provide details on progress and expenditure during 2005–06 on major capital facilities projects.
Notes:
- RAAF College Relocation Wagga/East Sale has an approved budget of $133.4m covering two locations, RAAF East Sale and RAAF Wagga. Total project expenditure is reported under RAAF East Sale – College Relocations.
- HMAS Cairns Redevelopment was approved in June 2006, after publication of the Portfolio Additional Estimates Statements 2005–06.
New South Wales
Nowra—HMAS Albatross Base Redevelopment
Achieved
This project replaced existing facilities and engineering services that were beyond economical repair, and included redevelopment of operational and administration support facilities. Key elements completed in 2005–06 included the construction of a helicopter flight deck procedural trainer where shipboard procedures can be simulated, and a base-wide power control and monitoring system and associated generator controls. The project was completed in mid-2006. This project contributes to Navy capability.
Holsworthy—Special Forces Training Facilities
Partially Achieved
This project provides specialised ranges and training facilities to support special forces units based at Holsworthy. The significant earthworks required for the 400-metre range and the training facilities are substantially complete. The construction of the training buildings and supporting infrastructure is well advanced and will continue into 2006–07. Construction is scheduled for completion in late 2007. This project contributes to Army and joint force capabilities.
Holsworthy—Special Operations Working Accommodation and Base Redevelopment Stage 1
Partially Achieved
This project provides facilities to support a full-time commando capability, the Tactical Assault Group (East), the Incident Response Regiment, and Special Operations Command elements along with the supporting upgrade of base infrastructure. Construction on high priority work packages commenced in mid-2006. Construction is scheduled for completion in mid-2009. This project contributes to Army and Special Operations capabilities.
Holsworthy—171 Aviation Squadron Relocation
Achieved
This project will relocate 171 Aviation Squadron from Townsville to Holsworthy. Interim facilities will be available for the unit to relocate in early 2007. Construction of permanent facilities commenced in mid-2006 and is on schedule for completion by mid-2008. This project contributes to Army and Special Operations capabilities.
Randwick—Disposal and Rationalisation—Interim Works
Partially Achieved
This project, which is related to the Defence property disposal program, will allow the disposal of surplus land at Randwick. Key activities such as site remediation and the development of a public environmental park are now scheduled for 2006–07. A plan is being prepared for Government consideration to allow disposal of further segments of the property. The net return from the sale of the additional segments would be returned to the Government in future years.
Richmond—RAAF Richmond Reinvestment
Partially Achieved
This project involves a limited capital reinvestment to address pressing infrastructure deficiencies. Construction of the combined headquarters building is now complete. The upgrade of the high voltage electrical reticulation and stormwater system is planned for 2006–07. The project is scheduled for completion in late 2006. This project contributes to Air Force capability.
Ermington—Pre-Disposal Site Works
Partially Achieved
This project is preparing the Ermington site for disposal and involves the progressive filling and stabilisation of flood-prone areas of the site, and the installation of trunk services infrastructure to enable the site to be sold in stages. During 2005–06, the trunk infrastructure works were substantially progressed with completion expected in early 2007. The remainder of the site is scheduled for sale as a whole in 2007–08.
Williamtown—RAAF Williamtown Redevelopment Stage 1 and Airborne Early Warning and Control Works
Achieved
This project provides a range of new and redeveloped facilities and the infrastructure necessary to support the introduction into service of the airborne early warning and control capability. The No. 2 Squadron hangar, pavement and airfield works, and engineering services are complete. The project is scheduled for completion in late 2007. This project contributes to Air Force capability.
RAAF College East Sale and Wagga Relocation
Achieved
This project will relocate the RAAF College from RAAF Williams (Point Cook) and RAAF Edinburgh to RAAF East Sale and RAAF Wagga. The project will provide working, training and living-in accommodation for headquarters, administrative staff and students. Construction commenced in December 2005 and is planned for completion in mid-2008. This project contributes to Air Force capability.
Victoria
Fishermans Bend—Relocation of Defence Science and Technology Organisation Platforms Sciences Laboratory
Partially Achieved
This project will relocate DSTO functions from Maribyrnong to Fishermans Bend, integrating common functions and providing enhanced research laboratory facilities. The works on the conference centre, the chemical, biological, radiological and nuclear defence centre building and the Maritime Platforms Division facilities will continue into 2006–07. Construction is scheduled for completion in mid-2007. This project contributes to Navy, Army and Air Force capabilities.
Queensland
Amberley—RAAF Amberley Redevelopment Stage 2
Achieved
This project will provide new facilities for the relocation of 9th Force Support Battalion and the establishment of multi-role tanker transport capability at RAAF Amberley and will provide upgraded trunk engineering services for the base. The works to support the battalion include workshops, administration buildings, hardstanding and vehicle shelters. The works for the multi-role tanker transport aircraft include construction of administration buildings, airfield pavement upgrades, maintenance facilities and the provision of hydrant refuelling. The engineering services works include refurbishment and upgrading of the electrical reticulation, communications, water, stormwater, and sewerage infrastructure. The project is planned for completion in early 2008. This project contributes to Army and Air Force capability.
Canungra—Kokoda Barracks Redevelopment
Achieved
This project will provide upgraded training and mess facilities, and working and living-in accommodation for the Army training units at Canungra. The project includes the provision of upgraded engineering services. Construction commenced in December 2005 and the project is scheduled for completion in late 2007. This project contributes to Army capability.
Townsville—Lavarack Barracks Redevelopment Stage 3
Achieved
This project provides new working facilities for Army units at Lavarack Barracks. Facilities for the 1st and 2nd Battalions, the Royal Australian Regiment, Headquarters 3rd Brigade, dental health, training and associated base engineering infrastructure upgrades have been completed. The project was completed in late 2005. This project contributes to Army capability.
Cairns—HMAS Cairns Redevelopment
Achieved
This project provides a combination of new and refurbished facilities to accommodate a full range of operational and support functions at HMAS Cairns, including appropriate berthing space and shore services to accommodate all vessels home-ported at HMAS Cairns. The project received parliamentary approval in June 2006. Construction is expected to commence in the second half of 2006 and is scheduled for completion in 2009. This project contributes to Navy capability.
South Australia
Edinburgh—Defence Science and Technology Organisation Edinburgh—Extension to Joint Electronic Warfare Building
Achieved
This project provided facilities to support the collocation of electronic warfare activities, with additional space for the software support facilities for a number of ADF platforms that are, or will shortly be, fitted with electronic warfare equipment. The project was completed in May 2006. This project contributes to joint forces capabilities.
Port Wakefield—Ordnance Breakdown Facility
Achieved
This project provides a new facility for the breakdown and analysis of ammunition and ordnance. Construction commenced in January 2006 and is scheduled for completion by the end of 2006. This project contributes to Navy, Army and Air Force capabilities.
Northern Territory
Timber Creek—Bradshaw Field Training Area Infrastructure
Achieved
This project provides engineering services and infrastructure to allow the use of Bradshaw as a field training area for the 1st Brigade. Internal access roads were completed in November 2005. The training force maintenance area, base camp, range control and caretaker facilities were completed in July 2006. The residual work, fencing, signage and air corridor markers are due for completion by December 2006. This project contributes to Army capability.
Darwin—1st Aviation Regiment Relocation
Partially Achieved
This project provides new facilities for the 1st Aviation Regiment at Robertson Barracks in Darwin and includes purpose-built working, training and domestic accommodation facilities. Six of the seven construction packages are complete. The final package, consisting of the simulator building and military instruction block, is scheduled for completion in late 2006, after minor delays were experienced due to work sequencing. This project contributes to Army capability.
Darwin—Darwin Naval Base—Patrol Boat Facilities
Achieved
This project provides upgraded facilities at the Darwin Naval Base for the new Armidale-class patrol boats. Construction of the wharf extension is complete. Construction of the balance of the project commenced in early 2006 and is being completed in stages to allow the continuing operation of the naval base and to support the staged introduction of the patrol boats. The construction is due for completion in late 2007. This project contributes to Navy capability.
Status of Major Projects Foreshadowed for Government and joint statutory Committee on Public Works Consideration in 2005–06
Defence foreshadowed a number of projects for consideration by the Joint Statutory Committee on Public Works in 2005–06. Table 3.4 provides details on the progress of the proposed projects.
Approved Medium Capital Facilities Projects
Table 3.5 shows spending in 2005–06 for medium facilities projects. Medium capital facilities projects are those expected to cost between $250,000 and $6m.
Status of Medium Capital facilities Projects for Departmental Approval in 2005–06
Table 3.6 lists new medium capital facilities projects (costing between $250,000 and $6m) foreshadowed for approval in 2005–06.
Note:
- These projects are now reported as RAAF Base Amberley—Redevelopment Stage 2.
Notes:
- Project approved after publication of the Portfolio Additional Estimates Statements 2005–06.
- Increase in out-turn cost.
- Approval to increase project budget granted after publication of the Portfolio Additonal Estimates Statements 2005–06.
- Project has subsequently been cancelled.
Notes:
- Approved after the production of the Portfolio Additional Estimates Statements 2005–06.
- Project approval accelerated due to departmental priorities.
- The deferral of this project approval is due to delays in departmental development of the project and conflicting priorities
Approved Projects Being Developed for Private Financing Arrangements
New South Wales
Eden-Monaro – Headquarters Joint Operations Command (formerly Headquarters Australian Theatre
The Headquarters Joint Operation Command Project will bring together the Chief of Joint Operations and strategic staff located in Canberra with the Sydney-based Deputy Chief of Joint Operations, joint staff and operations, plans, intelligence, logistics, personnel and other staffs of the environmental Commands into an integrated staff structure at a headquarters facility to be constructed approximately 11 kilometres south-west of Bungendore, New South Wales.
The contract for the construction of the Headquarters Joint Operations Command facility and the delivery of supporting services for a 30-year term under private financing arrangements was finalised with Praeco Pty Ltd (Leighton Contractors Pty Ltd and ABN AMRO Australia Limited) on 30 June 2006, with financial close achieved by 28 July 2006. In April 2006, expressions of interest were sought from industry for the delivery of the command, control, communications, computing and intelligence systems under a single contract. The contract was put to tender on 14 August 2006 and closed on 18 September 2006. Tenders are currently being evaluated.
The Headquarters will represent an investment at an estimated cost of $339.2m (2006–07 outturned prices) in buildings, infrastructure, fit-out, land acquisition and command, control, communications, computing and intelligence systems.
A traditional (or direct) procurement strategy is being used to acquire, install and maintain the command, control, communications, computing and intelligence systems.
The project contributes to Command of Operations capability.