Table 2.6 provides an update on the status of projects included in
statutory reports over the previous three financial years. The planned
expenditure for these projects during 2005–06
places them outside of the Top 30.
Table 2.5 Projects and Products
of Emerging Interest 2005–06
| Title |
Project Number |
Project Description |
Approved Project Expenditure $m(1) |
Cumulative Expenditure to 30 June 2006 $m |
2005–06
Expenditure
$m |
Status Report |
| Air Warfare Destroyer |
SEA 4000 Ph2 |
An affordable maritime air warfare capability to the ADF. This
will be a complementary part of the layered air defence capability. |
460 |
51 |
51 |
First pass approval was achieved in May 2005, concurrent with
the announcement of ASC Pty Ltd as the preferred shipbuilder. Raytheon
Australia and Gibbs & Cox have been selected as the preferred
Combat System-Systems Engineer and 'Evolved' Platform System Designer
respectively. The Gibbs & Cox 'Evolved' design will compete
with an Australianised version of Navantia's 'Existing' design F100
Destroyer. The Project is on schedule to present a fully developed
comparison of the cost, schedule and capability of the two design
options for Government consideration as part of second-pass approval
planned for July 2007. |
| Amphibious Watercraft Project |
JP 2048 Ph1A |
Six amphibious watercraft for delivery to the Army. The platform
will be capable of deployment with the Landing Platform Amphibious
ships. |
58 |
36 |
23 |
All watercraft have achieved initial operational release and are
operating in service, with project management responsibility transferred
to the Amphibious and Afloat Support Program Management Office.
In accordance with the project closure plan, the last items in project
closure arrangements are being finalised. |
| Amphibious Assault Ship (LHD) Project |
JP 2048 Ph4A/4B |
An increased amphibious deployment and sustainment capability
to support an enhanced deployed force. |
38 |
17 |
11 |
Not yet to contract. Assessment of two suitable existing ship
designs continues. Government first-pass approval was achieved in
August 2005, releasing approximately $30m for first and second pass
activities. Australian industry was briefed on first-pass outcomes.
Design development activity with resident project teams in France
and Spain was completed on 3 April 2006. The Request for Tender
for design and construction of the LHDs was released, on schedule,
on 28 April 2006. The Defence Capability Plan 2006–16
budget for this project is $1.5 to $2 billion. |
Table 2.6 Update of Status
of Previously Reported Top 30 Projects (Financial Years 2004–05,
2003–04 and 2002–03)
| Title |
Project Number |
Approved Project Expenditure $m(1) |
Cumulative Expenditure to 30 June 2006 $m |
2005–06
Expenditure
$m |
Status Report |
| Aerospace |
| F/A-18 Hornet Structural Refurbishment Program—Stage 1 |
AIR 5376 Ph3.1 |
121 |
75 |
18 |
Following successful prototype of the modification on an aircraft
in January 2004, the project is now into the production phase with
23 aircraft delivered to July 2006. Production is expected to continue
through to December 2008 at RAAF Williamtown.Costs are forecast
to exceed the programmed outlays for 2005–06
due to the additional cost of unexpected damage found during aircraft
teardown in the Hornet Upgrade Phase 3.1 modifications. |
| Lead-in Fighter Capability |
AIR 5367 Ph1 |
1,023 |
1,000 |
37 |
This project involves the acquisition of 33 Hawk A27 aircraft
to perform lead-in fighter and ADF support roles. Aircraft delivery
was completed in October 2001. The final operational capability
for radar simulation function has been delayed due to technical
difficulties. This capability is currently under test and evaluation
to facilitate final acceptance. The project underachieved against
estimates due to these delays. |
| Maritime |
| Mine Hunter Coastal Acquisition |
SEA 1555 Ph2 |
1,246 |
1,143 |
10 |
All vessels have been accepted into service. The underspend in
2005–06 was due primarily to
the prime contractor's limited resources being focused on delivering
in-service support activities, including the deactivation and short-notice
reactivation of two vessels, as opposed to finalisation of outstanding
acquisition contract changes. |
| Evolved SeaSparrow Missile |
SEA 1428 Ph2ASEA 1428 Ph2B/3 |
354274 |
348243 |
-21 |
Progressive missile deliveries, which included the last of the
Phase 2A missiles, occurred throughout 2005 and will continue in
2006–07 and subsequent years.
All Anzac-class frigates have been fitted with the Evolved Seasparrow
missile system with the last ship, HMAS Anzac, upgraded in June
2006 during that ship's recent major maintenance period. |
| Collins Class Submarine Augmentation |
SEA 1446 Ph1 |
233 |
204 |
4 |
All major elements are complete. The remaining activity under
this project is the platform training simulator upgrade, the procurement
strategy for which is almost complete. Placement of a contract is
anticipated later in 2006. Expenditure for the year was slightly
more than the revised estimate due to the ability to purchase spares
items earlier than planned. |
| New Submarine Project |
SEA 1114 Ph3 |
5,121 |
5,072 |
5 |
The last of the six submarines was delivered in March 2003. A
number of minor activities were progressed in preparation for project
closure. Expenditure for the year was slightly more than the revised
estimate due to ASC Pty Ltd's ability to take on additional minor
tasks. |
| Land |
| Direct Fire Guided Weapon |
LAND 40 |
145 |
92 |
32 |
Delivery of the Javelin Command Launch Units and Outdoor Training
Systems was completed in April 2006. The training systems were delivered
12 months ahead of the original contracted schedule. Javelin has
been deployed operationally with trained personnel and logistical
support in Iraq and Afghanistan. |
| Ground Surveillance Radar |
LAND 53 Ph1 |
84 |
86 |
22 |
The key outcomes expected in 2005–06
were the delivery of the remaining production equipment, commencement
of the through-life support contract, and completion of the service
training activities. These outcomes were achieved on schedule. Completion
of the acquisition contract was achieved earlier than forecast in
June 2006. |
| Electronic and Weapon
Systems |
| Air-to-Surface Stand-Off Weapon Capability |
AIR 5398 Ph1 |
441 |
383 |
21 |
AIR 5398 successfully completed the initial operational test and
evaluation program including two live missile firings at the Woomera
Test Range in October 2005. Chief of Air Force subsequently granted
service release for the employment of the AGM-142E weapon on the
F-111C aircraft fleet in May 2006, and initial operational capability
was declared in June 2006. |
| Air-to-Air Weapons Capability |
AIR 5400 Ph1 |
313 |
277 |
11 |
Both missiles have been released into service with the Air Force
and the project is transitioning the full capability to the in-service
management agencies. The final item to transition is the maintenance
and software support facilities contract for the advanced short-range
air-to-air missile, which will be transferred to in-service management
late in 2006. |
| Tactical Air Defence Radar Systems |
AIR 5375 Ph1 |
207 |
165 |
13 |
The Australian Government took acceptance of Tactical Air Defence
Radar System from Lockheed Martin Corporation in November 2005.
Financial withholds were put in place pending the close-out of defects
and omissions noted at acceptance.The Tactical Air Defence Radar
System is now in operational use with the Air Force. A long-term
installation operating permit for the new radar system was issued
by Commander Surveillance and Response Group on 12 July 2006. In-service
support arrangements, including contractor support, are in place.
Project office closure and project transition was concluded in July
2006. |
| E-Defence ProjectTransferred to Chief Information Officer Group |
JP 2054 Ph1 |
116 |
54 |
1 |
E-Defence aims to provide the infrastructure for a corporate electronic
identity framework. The project will develop infrastructure to enhance
current e-mail systems with a corporate directory service.All major
procurement activity is paused pending both a re-assessment of requirements
and revision of the acquisition strategy; completion of both documents
is scheduled for May 2007. Delays in completing the re-assessment
of requirements and revision of the acquisition strategy have arisen
due to the longer than planned requirements development phase and
industry's evolving ability to deliver a commercial-off-the-shelf
solution. Responsibility for the acquisition and implementation
of the capability was transferred to the Chief Information Officer
Group from the DMO. |
