Appendix F: Top 30 Sustainment Products by 2016-17 Forecast Expenditure

Appendix F: Top 30 Sustainment Products by 2016-17 Forecast Expenditure

71. 
    Top 30 Sustainment Products by 2016-17 Forecast Expenditure
    

    		Budget Estimate 2016-17 $m	Revised Estimate 2016-17 $m	Variation $m	Project Performance Update and Explanation of Variation
    Aerospace Domain
    E-7A Airborne Early Warning and Control Capability System	CAF20	213	196	-17	The variance is due to movement in the Australian dollar relative to foreign currencies and deferment of capability assurance upgrades and modifications such as obsolescence modifications as a result of capability prioritisation.
    F/A-18 A/B Classic Hornet Weapon System	CAF02	192	201	9	The variance is due to additional scoping activities and movement in the Australian dollar relative to foreign currencies.
    F/A-18F Super Hornet Weapon System	CAF21	192	227	35	The variance is due to the costs associated with the transition of Growler to sustainment.
    Lead-In Fighter Hawk Weapon System	CAF03	117	119	2	The variance is due to additional scoping activities.
    P3C Orion Weapons System	CAF04	108	89	-19	During financial year 2016-17 the AP-3C 'safety-by-inspection' program comprising of additional targeted airframe structural inspections has been completed. P-3 sustainment will continue to enable achievement of the Raise, Train and Sustain flying program and on operations in northern Australia. Fleet disposal will continue in 2016-17 in accordance with the approved disposal strategy, resulting in a planned fleet size of 12 by June 2017. The variance is due to the reduction in avionics repairs due to the P3 withdrawal date being brought forward.
    C130J-30 Weapon System	CAF06	104	98	-6	During 2016-17, the focus will be on continuing fleet embodiment of Link 16 and the secure communications systems, fitment of crashworthy loadmaster seating and internal storage panniers to the C 130J fleet, and the development of a new loadmaster and maintainer training device. The net variance is due is to the movement in the Australian dollar relative to foreign currencies, activity reprioritisation, as well as the incorporation of the secure communication system and loadmaster crashworthy seats together with unforeseen additional costs related to repairs against the number of increased engine failures.
    C-17 Heavy Air Lift Weapons system	CAF19	93	102	9	The variance is due to the expanded C-17 fleet following the delivery of aircraft 7 and 8 and redistribution of funding for common spares.
    KC-30A Weapon System	CAF22	77	72	-5	The variation is primarily due to movement in the Australian dollar relative to foreign currencies.
    Special Purpose Aircraft	CAF09	52	50	-2	The variation is due to movement in the Australian dollar relative to foreign currencies.
    Multi Role Helicopter Weapon System	CA48	207	165	-42	Reduced funding requirement is mainly due to compensation received from the Prime Contractor as a result of a prior commercial settlement (Deed 2).
    Armed Reconnaissance Helicopter System	CA12	145	131	-14	Variation is mainly due to movements in the Australian dollar relative to foreign currencies.

    
    Table 70: Top 30 Sustainment Products by 2016-17 Forecast Expenditure (Continued)
    

    		Budget Estimate 2016-17 $m	Revised Estimate 2016-17 $m	Variation $m	Project Performance Update and Explanation of Variation
    Aerospace Domain (Continued)
    MH-60R Seahawk Romeo Weapon System	CN35	53	87	34	Variation is a result of higher than anticipated operating costs during introduction into service of this new capability.
    Joint Domain
    Guided Weapons - Navy, Army, Air force	CN38, CA60, CAF33	208	128	-80	Variation relates to delays in negotiations for MU-90 Light Weight Torpedoes and facilities work in Orchard Hills.
    Wide Area Surveillance	CAF13	101	109	8	Variation relates to requirement for additional communications to support Harts Range - NT.
    Command and Intelligence Systems Software Applications	CA40	65	68	3	Variation relates to an additional requirement for the Provisional - Battlespace Telecommunications Network.
    Battlespace Communications Systems	CA31	54	45	-9	Variation largely relates to lower than expected requirement for replenishment of the rechargeable battery fleet.
    Land Domain
    Munitions - Navy, Army, Air force	CN37, CA59, CAF32	290	302	12	Variation largely relates to payments for Navy munitions occurring in 2016-17 rather than 2015-16 as previously forecast. No impact on capability delivery.
    ADF Clothing	CA39	89	88	-1	Variation is primarily due to acquisition timings to 2017-18.
    Commercial Vehicle Fleet	CA19	84	89	5	A key priority is to replace the ageing commercial vehicle fleet at Royal Malaysian Air Force Base – Butterworth. This programme commenced in 2015–16 and is now scheduled for completion in 2017–18. In 2016-17, the fleet will continue to focus on reducing the number of vehicles that are beyond their designated life, with an emphasis on improvement of overall utilisation. The variance represents the acquisition of additional aircraft refuelling hydrant trucks and vehicles brought forward into 2016-17.
    General Service B Vehicle Fleet	CA45	57	57	..	Fleet work continues as scheduled to achieve the approved 2016-17 budget.
    ASLAV	CA02	54	49	-5	Variation is primarily due to acquisition timings to 2017-18.
    Protected Mobility Vehicles	CA04	51	64	13	The additional funding variation is primarily due to 40 additional Protected Weapon Stations being upgraded.

    
    Table 70: Top 30 Sustainment Products by 2016-17 Forecast Expenditure (Continued)