Defence: Seasprite Helicopters

Senator Chris Evans asked the Minister for Defence, upon notice, on 16 May 2002:

With reference to Seasprite helicopters:

1. Have any payments been made to Kaman in 2002; if so, can the Minister indicate: (a) the type of payment made; (b) the date; and (c) the value of the payment.
2. In terms of the service contract: (a) what payments were made to Kaman; (b) on what date; and (c) what was the value of the payments.
3. The Defence Annual Report 2001-02 notes that 805 Squadron has been 'commissioned': (a) when was this squadron commissioned; and (b) have any personnel been assigned to the squadron; if so, how many (or does it exist as a notional unit).
4. Has a facility been established to house the squadron.
5. To date, what has been the full cost of funding the squadron, that is, all personnel costs, administration costs, supplier costs, and facility costs.
6. Is the principal role of this squadron to fly the Seasprite helicopters.
7. When was the Chief Petty Officer assigned to the integrated service team for the Seasprite (as indicated in an answer to a question at Senate estimates hearings).

Senator Hill - The answer to the honourable senator's question is as follows:

1. As at 31 May 2002, against the prime acquisition contract, there have been 4 earned value payments totalling AUD 14,929,660, 8 milestone payments totalling AUD 1,578,031 and associated price variation payments totalling AUD 4,636,715.80. Of the AUD 14.9 million in earned value payments approximately AUD 5 million was for purchase of spares and ground support equipment. Payments withheld over the period total approximately AUD 0.72 million.
2. As at 31 May 2002, against the support contract, there have been 4 Milestone payments totalling AUD 3,962,789 associated price variation payments totalling AUD 287,384 and inventory purchases totalling AUD 1,760,762. Payments withheld, which include management fees (Milestones) for the month of March 2002 onwards, total AUD 3.45 million. Agreement has been reached with Kaman to significantly reduce monthly payments. While contract changes are being prepared to formalise this, Kaman is invoicing the Commonwealth for the reduced amount.
3. 805 Squadron was commissioned as a Fleet Unit on 28 February 2001. At commissioning the squadron consisted of 25 military personnel and 1 Australian Public Servant (APS). Squadron strength peaked at 26 military personnel and 1 APS. Further postings to the squadron were suspended in April 2001. A reduced activity plan was implemented for the squadron in December 2001. The squadron is a cadre of 15 personnel, a Commanding Officer (observer), 1 Aeronautical Engineering Officer, 1 APS clerical support and 12 maintenance sailors. A minimum number of squadron personnel are involved in essential support roles in preparation for the introduction of the SH-2G(A). This includes participating in final line assembly, which develops the squadron personnel's aircraft system knowledge as well as the essential conduct of mandatory customer inspections of the product (a contractual requirement). The squadron personnel also continue to prepare the squadron to qualify as an Authorised Maintenance Organisation under the new airworthiness regulations. In preparation for their future operational role, 805 Squadron personnel are conducting tactical development and also setting to work the squadron's workshops, ground support equipment, technical library and tool control. Squadron personnel have also provided assistance to the Super Seasprite Project office and other Navy squadrons.
4. Yes. 805 Squadron facilities were provided as part of the HMAS Albatross Phase 1 Redevelopment. The facility includes a 4 berth deep maintenance hangar and associated workshops, a stores receipt and dispatch facility, 6 individual 'hangarettes' each capable of housing 1 SH-2G(A). Attached to the hangar complex is an integrated Headquarters, maintenance management and training facility.
5. To date the costs involved in funding the Squadron amount to $13.1 million including building costs of $11.2 million.
6. Yes.
7. The Chief Petty Officer position within the Navy Aviation Logistic Management Unit for the SH-2G(A) was first manned in late January 2001 and became vacant in late March 2002. Whilst the position is currently still vacant, it is expected to be manned again in mid June 2002 to assist with the ramp up towards SH-2G(A) flying operations. This position provides Navy operational knowledge and experience as input to the preparations for flying operations.

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