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Defence Support Group

Construction for new HQ begins

On 3 November, the Prime Minister, the Hon John Howard MP, turned the first sod to commence construction of the new Defence Headquarters Joint Operations Command (HQJOC) facility near Bungendore in New South Wales.

Photograph, caption follows

The Prime Minister, John Howard, and CDF, ACM Angus Houston, receive a briefing from the Director General of the project, AIRCDRE Jack Plenty, on the design of the HQJOC complex.
Photo provided by Public Affairs

Other guests at the ceremony included the Chief of the Defence Force, Air Chief Marshal Angus Houston, representatives of the consortium carrying out construction, as well as local dignitaries and landowners.

"This new headquarters will bring together, for the first time, all the key elements necessary for the planning, command and control of Australian Defence Force operations and other designated activities - at the time of unprecedented military operational activity," Mr Howard said.

The HQJOC contract is significant for its use of private financing arrangements to construct and maintain an Australian Government facility. Praeco Pty Ltd, a consortium comprising Leighton Contractors Pty Limited and ABN AMRO Australian Limited, won the contract to build the facility and to provide a range of support services over a 30-year term.

Under these private financing arrangements, Defence will pay Praeco an annual service payment, commencing after the facility is completed in July 2008. The first full-year payment will be $39.99 million in 2009-10. The net present value of the 30-year contract for the new headquarters and supporting services to be provided by Praeco is $572 million.

The project, managed by the Defence Support Group's Infrastructure Division, is on course to deliver a fully-operational HQJOC facility by the end of 2008.

ACT Office Accommodation Project

The Office Accommodation Project, established to address Defence's long-term office accommodation and carparking requirements in Canberra, will improve functional efficiencies and reduce operational costs associated with a dispersed workforce. Looking at strategic Defence requirements, the project has identified three key objectives for the potential rationalisation of sites in the ACT:

  • consolidation of office accommodation in close proximity to the Russell precinct that meets and supports Defence's current and future operational and capability requirements beyond 2010;
  • provision of adequate car parking that includes the resolution of car parking at Russell Offices; and
  • consideration of potential future expansion (i.e., ongoing changes to incorporate Defence's operational environment and future planning considerations).

The project is part of the Defence Support Group's Infrastructure Division and has established a Governance Board that comprises representatives from each of the Services and Groups. The project is now in the process of seeking Government consideration of the Strategic Business Case for the commencement of a two-staged procurement process in 2007.

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