Prime Contractor: Boeing, through a Foreign Military Sales case with the US Air Force.
This project has delivered an additional four C-17 Globemaster III aircraft and related provisions, including an enhanced US-common electronic warfare self-protection system, to complement the four aircraft acquired under Project AIR 8000 Phase 3. All eight aircraft are now in service with the Air Force and, following the installation of the enhanced electronic warfare self-protection system on the eighth and final aircraft in fourth quarter 2016, Final Operational Capability is expected in December 2017. The variance is driven by delays in US Government contracting actions required to finalise payments for the 7th and 8th aircraft, with expenditure made in financial year 2016-17 which was originally programmed to occur in financial year 2015-16.
Air to Air Refuelling Capability
AIR 5402
2015-16
1,819
1,760
6
7
2
In November 2015, Airbus Defence and Space completed all major contracted deliveries.
During 2016-17 the final spares deliveries are expected and the project will transfer residual activities to the sustainment organisation in order to finalise project closure. The variation is driven by a delay in billing of breakdown spares and repairable items with expenditure made in financial year 2016-17 which was originally programmed to occur in financial year 2015-16.
Airborne Early Warning and Control System
AIR 5077 Phase 3
2014-15
3,885
3,576
23
34
10
This project has delivered six E-7A Wedgetail Airborne Early Warning and Control aircraft and the associated ground and support systems. The project achieved Final Operational Capability in May 2015. During 2016/17 the project will transfer residual activities and associated funding in order to finalise project closure. The variation is due to movement in Australian dollar relative to foreign currencies and procurement of ongoing radar development and support infrastructure.
C-17 Globemaster III Heavy Airlifter
AIR 8000 Phase 3
2014-15
1,517
1,422
10
15
5
The project procured the initial four C-17 Globemaster III for Australia. Residual project tasks continue to be transitioned to in-service management agencies with the aim to achieve project closure in June 2017. The variance is primarily driven by increases in the cost of projected Logistic Support arrangements.
The Classic Hornet simulator improvement program is the final approved element of the project, with Final Operational Capability scheduled for 2017. The variance is due to the early achievement of simulator acceptance.
Table 68: Current status of Previously Reported Top 30 Projects (Projects Reported in the Last Five Financial Years) (Continued)
Project
number/
phase
Last
Financial
Year
Reported
in Top 30
Approved
Project
Expenditure
$m
Cumulative
Expenditure
to 30 June 2016
$m
Budget
Estimate
2016-17
$m
Revised Estimate
2016-17
$m
Variation
$m
Status Report
Aerospace (Continued)
Airborne Surveillance for Land Operations
JP 129 Phase 2
2012-13
97
77
1
..
-1
The project has successfully delivered the majority of equipment required for the capability and has transitioned support activities to the sustainment organisation. The final equipment delivery of four One System Remote Video Terminals along with Project closure activities are planned during 2016-17.
Additional Chinook Helicopter Project
AIR 9000 Phase 5C
2015-16
636
426
31
32
1
Variation is the net effect of activity changes which have slipped from 2015-16 financial year to 2016-17 financial year.
Rotary Wing for Land Force
AIR 87 Phase 2
2012-13
2,033
1,867
3
3
..
The project is anticipated to be closed in 2016-17.
Joint
Military Satellite Capability – Wideband Terrestrial Infrastructure
JP2008 Phase 5B1
2015-16
206
151
20
21
1
Variation relates to two month schedule delay to the Prime Contract, resulting Milestones Payments slipping from 2015-16 to 2016-17.
Tranche 1 of this project has completed the delivery of all small, medium and large sized transportable satellite terminals to Australian Defence Force units with associated spares and has commenced the introduction into service of an advanced waveform modem. The satellite terminals enable the use of the Wideband Global Satellite Communications System. Introduction into service training is scheduled for completion in March 2017.
Battlespace Communications System (Land)
JP 2072 Phase 1
2011-12
261
237
4
1
-3
Variation relates to later than expected billing from the US Foreign Military Sales Program, and later than expected development of specifications for Integration and Test Facility. Project closure is planned for mid 2017.
Battlespace Communications System (Land)
JP 2072 Phase 2A
2014-15
463
316
9
32
23
Variation relates to acceleration in delivery of key components for this project, acquisition of additional radios, and additional studies to review communication requirements.
Battle Management System
LAND 75 Phase 3.4
2014-15
316
253
28
20
-8
Variation is due to re-scheduling to further consider the requirement for the Track Management System upgrade.
C-130J Large Aircraft Infrared Countermeasures (LAIRCM)
AIR 5416 Phase 4B2
2015-16
230
71
38
20
-18
Variation relating to lower cost of modification program and later than expected billing from the US Foreign Military Sales Program associated with this project.
Table 68: Current status of Previously Reported Top 30 Projects (Projects Reported in the Last Five Financial Years) (Continued)
Project
number/
phase
Last
Financial
Year
Reported
in Top 30
Approved
Project
Expenditure
$m
Cumulative
Expenditure
to 30 June 2016
$m
Budget
Estimate
2016-17
$m
Revised Estimate
2016-17
$m
Variation
$m
Status Report
Joint (Continued)
Fixed Defence Air Traffic Control Surveillance Sensors
AIR 5431 Phase 2
2015-16
194
48
24
16
-8
The project successfully completed Preliminary Design Review in May 2016 and planning for Detailed Design Review is well underway with the review occurring in March 2017. The variance in the planned expenditure is due to the Detailed Design Review Milestone cash payment slipping from June to July 2017.
Indian Ocean Ultra High Frequency Satellite Communication
JP 2008 Phase 5A
2012-13
421
341
5
10
4
Variation relates to requirement for additional contractor support to assist with management of Prime Contract. This project has delivered an upgraded Ultra High Frequency Satellite capability to the Australian Defence Force. The associated network management system has experienced delays associated with software development. The project was re-baselined to mitigate delay and introduce an Interim Capability in 2017 which will provide an Integrated Waveform capability. The Interim Capability installations have been rolled out to the three sites and are operational. Training will be completed in early 2017.
Variation relates to higher than previously anticipated cost of replacement satellite terminals to meet wide-band global satellite certification requirements.
Military Satellite Capability – Wideband Terrestrial Terminals (WTT)
JP 2008 Phase 3H
2013-14
45
39
-
..
..
Capability outcomes have been realised with all terminals and deployment kits being delivered to the Australian Defence Force along with introduction into service training and the support system is in place and operating. The project achieved Initial Operational Capability in 2015; however Final Operational Capability has been delayed, awaiting final technical certification which is anticipated early 2017. This delay is due to implementation of the Operational Test and Evaluation recommendations and mitigation of additional safety requirements detected during the JP2008 Phase 5B1 safety assessment of similar terminals.
Battlespace Communications System (LAND)
JP 2072 Phase 3
2014-15
179
146
3
3
..
Tender evaluation and negotiations continue and will deliver a Tactical Communications Network to support the LAND 200 Battlefield Management System.
High Frequency Modernisation
JP 2043 Phase 3A
2014-15
580
481
13
22
9
The variation is the result of delays from previous years in enhancing communications equipment (Project Nullabor). While experiencing minor schedule delays due to complex software testing issues this project is forecast to be delivered in early 2017 with most build and integration activities being conducted in 2016-17.
Table 68: Current status of Previously Reported Top 30 Projects (Projects Reported in the Last Five Financial Years) (Continued)
Project
number/
phase
Last
Financial
Year
Reported in Top 30
Approved
Project
Expenditure
$m
Cumulative
Expenditure
to 30 June 2016
$m
Budget
Estimate
2016-17
$m
Revised Estimate
2016-17
$m
Variation
$m
Status Report
Joint (Continued)
Joint Command Support Environment
JP 2030 Phase 8
2014-15
257
205
-
..
..
Information is as reported in the 2016-17 Portfolio Budget Statements.
NULKA PH5A Replenish Nulka Warstock
SEA 1397 Phase 5A
2014-15
88
78
7
5
-1
Variation reflects a delay in billing for the delivery of rounds for the United States Navy procured under joint contract (managed by Australia).
Bridging Air Combat Capability – Super Hornet Weapons
AIR 5349 Phase 2
2014-15
303
215
21
20
-1
Variation relates to later than anticipated billing from US Foreign Military Sales Program for Joint Stand Off Weapons. Initial delivery of new AIM-120 Captive Training Missiles occurred in September 2016. Operational test and evaluation of new air launched weapons will commence from May 2017 to realise the full capability.
Follow-on Stand Off Weapon Capability
AIR 5418 Phase 1
2011-12
319
284
-
1
1
Variation relates to earlier billing by US through Foreign Military Sale program.
Lightweight Torpedo Replacement
JP 2070 Phase 2
2013-14
342
317
1
2
1
Variation relates to increase in cost of facilities work at HMAS Creswell, and later payments than expected for shipborne pre-set up system software and hardware modifications.
New ADF Anti-Submarine Lightweight Torpedo
JP 2070 Phase 3
2011-12
276
276
-
-
-
This project closed 9 June 2016.
Evolved Seasparrow Missile (ESSM) Upgrade
SEA 1352 Phase 1
2015-16
393
233
10
5
-6
Variation relates to payment for consortium fees at the end of 2015-16 rather than 2016-17.
Variation relates to lower than expected non-recurring engineering costs.
Table 68: Current status of Previously Reported Top 30 Projects (Projects Reported in the Last Five Financial Years) (Continued)
Project
number/
phase
Last
Financial
Year
Reported in Top 30
Approved
Project
Expenditure
$m
Cumulative
Expenditure
to 30 June 2016
$m
Budget
Estimate
2016-17
$m
Revised Estimate
2016-17
$m
Variation
$m
Status Report
Land
Light and Lightweight Capability (LLC) Field Vehicles, Modules and Trailers
LAND 121 Phase 3
2015-16
1,018
842
37
59
21
The variation is primarily due to the reprogramming of deliverables into 2016-17 to align with industry's capacity to deliver.
Mulwala Redevelopment Project
JP 2086 Phase 1
2013-14
371
362
5
5
1
Variation relates to impact of foreign exchange adjustment. No capability impact.
Digital Terminal Control System (DTCS)
LAND 17 Phase 1B
2013-14
121
93
-
-
-
The final control terminal software and the support systems have been delivered to allow the full operating capability milestone to be met on schedule in March 2016. The project is scheduled to close in quarter one 2017.
Replacement Artillery
LAND 17 Phase 1A
2013-14
158
158
-
-
-
Information is as reported in the 2016-17 Portfolio Budget Statements.
Counter - Rocket, Artillery and Mortar (C-RAM) Project
LAND 19 Phase 7A
2012-13
265
186
-
..
..
The project has successfully transitioned the C-RAM capability to sustainment and is scheduled to close in quarter one 2017.
Australian Protected Route Clearance Capability
JP 154 Phase 3A
2012-13
36
36
-
-
-
Information is as reported in the 2016-17 Portfolio Budget Statements.
Bushranger Protected Mobility Vehicle
LAND 116 Phase 3
2015-16
1,251
1,026
6
11
5
The variation is primarily due to the slippage of payments from 2015-16 to 2016-17.
M-113 Upgrade
LAND 106
2012-13
791
791
-
-
-
Information is as reported in the 2016-17 Portfolio Budget Statements.
This project will deliver 225 Combat Reconnaissance Vehicles and support systems that will replace the current Australian Light Armoured Vehicle (ASLAV) capability.
The project is in stage 2 of the tender evaluation. Stage 2 includes a Risk Mitigation Activity (RMA). This improves opportunities for Australian Industry involvement and assesses cost and capability trade-off options. The RMA commenced on 19 August 2016 and is scheduled to be completed in August 2017.
The RMA will validate technical compliance through a Test and Evaluation program against the shortlisted tenderers and determines the recommendations for the final source evaluation for consideration by Government.
The variation is due to the delay in the commencement of the RMA.
Table 68: Current status of Previously Reported Top 30 Projects (Projects Reported in the Last Five Financial Years) (Continued)
Project
number/
phase
Last
Financial
Year
Reported in Top 30
Approved
Project
Expenditure
$m
Cumulative
Expenditure
to 30 June 2016
$m
Budget
Estimate
2016-17
$m
Revised Estimate
2016-17
$m
Variation
$m
Status Report
Maritime
Amphibious Ships (LHD)
JP 2048 Phase 4A/B
2015-16
3,092
2,775
19
33
13
LHD #1 was delivered to the Navy in October 2014 and commissioned as HMAS Canberra in November 2014.
LHD #2 was delivered to the Navy in October 2015 and commissioned as HMAS Adelaide in December 2015.
The project is currently focused on transition of supporting products to the sustainment organisation and close-out of residual defects, deficiencies and associated testing. Completion of the above has been delayed as a consequence of competing access to ship resources and systems during availability periods to undertake both sustainment and outstanding acquisition activities. Final Acceptance is now expected in the first half of 2017 with Project and Materiel Acquisition Agreement closure expected in 2018.
Prime Contractor: BAE Systems Australia Maritime.
Amphibious Watercraft Replacement
JP 2048 Phase 3
2014-15
237
176
..
..
..
All twelve craft have been delivered, the final four craft delivered to Navy on 7 March 2016.
The Project achieved Integrated Logistics Support Certification (Final) on 29 February 2016 and has transitioned the support products to the sustainment organisation.
A submission for Final Materiel Release (FMR) and Full Operational Capability (FOC) was raised and submitted to Navy in October 2016. Chief of the Defence Force and Head Navy Capability agreed FMR on 13 December 2016 with FOC anticipated in mid 2017. FMR was delayed in consultation with the Capability Manager to allow alignment with the regulatory authorities regarding the operational envelope. Navy is currently analysing the data obtained from the Landing Helicopter Dock (LHD)/Landing Craft interface trials and is planning to conduct another trial in 2017.
Project and Materiel Acquisition Agreement closure is scheduled for 1st Quarter 2017 with Navy acceptance of FMR.
During 2016-17, this project will continue with the Anti Ship Missile Defence Follow-On-Ship upgrade work on HMA Ships Parramatta, Toowoomba and Stuart. The variation of $3M is mainly due to revised estimate of gainshare payable to industry and a number of minor changes to payment phasings.
Anzac Anti-ship Missile Defence
SEA 1448 Phase 2B
2015-16
679
598
39
49
10
During 2016-17, this project will continue with the Anti Ship Missile Defence Follow-On-Ship upgrade work on HMA Ships Parramatta, Toowoomba and Stuart. Estimate variation of $10.1M is mainly due to slippage of payments from 2015-16 to 2016-17 and small amount of costs which were not previously estimated.
Table 68: Current status of Previously Reported Top 30 Projects (Projects Reported in the Last Five Financial Years) (Continued)
Project
number/
phase
Last
Financial
Year
Reported in Top 30
Approved
Project
Expenditure
$m
Cumulative
Expenditure
to 30 June 2016
$m
Budget
Estimate
2016-17
$m
Revised Estimate
2016-17
$m
Variation
$m
Status Report
Maritime (Continued)
SM-1 Replacement Project
SEA 1390 Phase 4B
2013-14
416
352
9
7
-3
Project deliverables have been transitioned to in-service sustainment. Chief of Navy agreed the Final Operating Capability in June 2015. Formal project closure is scheduled to complete during 2016-17. Variation is due to slip in FMS payments.
Future Submarine - Acquisition
SEA 1000 Phase 1A
2015-16
298
186
49
-
-49
Following recent Government approvals, as listed at Table 64 on page 81, SEA 1000 Phase 1A has been closed and remaining budget has been transferred to a new phase, SEA 1000 Phase 1B.
