Projects of concern – Update

The Hon. Jason Clare MP
Minister for Defence Materiel

Minister for Defence Stephen Smith and Minister for Defence Materiel, Jason Clare today released the updated and complete Projects of Concern list.

The Projects of Concern list was established in 2008 to focus the attention of Defence and industry senior management on solving the issues required to remediate listed projects.

This process has been successful in remediating a number of key complex and challenging projects.

Projects are placed on the list by the Minister for Defence Materiel on the recommendation of the Chief Executive Officer of the Defence Materiel Organisation.

Projects are put on the list when, for example, there are significant challenges with scheduling, cost or capability delivery.

Following the advice of the Defence Materiel Organisation, Mr Clare has added Project AIR 5276 Phase 8B – replacing the AP-3C Orion aircraft’s Electronic Support Measures system.

“The advice to me from the Defence Materiel Organisation is that BAE Systems, awarded the Prime Contract in 2007, is currently 18 months behind the delivery schedule for the upgraded Electronic Support Measures equipment,” Mr Clare said.

“I look forward to the DMO and contractor demonstrating a renewed effort toward delivering this important capability to the Australian Defence Force as soon as possible.”

Mr Clare also confirmed Project AIR 5402, the Air-to-Air Refuelling aircraft and Joint Project 2048 Phase 1A, the landing watercraft for HMA Ships Manoora and Kanimbla are on the current list of Projects of Concern.

Project AIR 5402 is late with an expected delay of more than 18 months.  The main focus is now on addressing further schedule risk, and to keep working constructively with the contractor, Airbus Military, to ensure delivery and acceptance of two first-of-type tanker aircraft by the end of 2010.

“I toured the aircraft conversion centre in Brisbane last week and was briefed on progress. Our focus is now on working with Airbus Military in Spain on developmental activities to support timely completion of testing and supporting activities,” Mr Clare said.

The Joint Project 2048 Phase 1A landing watercraft were originally approved in 1997.

The six watercraft have not been able to prove they meet the needs for their operational roles on HMA Ships Kanimbla and Manoora and for support of land forces.

“Over the past two years Defence has invested time and resources on resolving issues with these landing watercraft including detailed assessments of other roles they could perform,” Mr Clare said.

“I am expecting advice from Defence in the near future recommending what action needs to be taken on the project.”

This brings the total number of projects placed on the list since 2008 to 17, with six removed – five due to remediation and one due to cancellation.

From next year, the DMO Annual Report will also provide an update on the projects of concern list, including work being undertaken to remediate these projects.

The current complete list of projects is below.

Project Description
CN10 Collins Class Submarine Sustainment and Projects
AIR 5077

Phase 3

‘Wedgetail’ Airborne Early Warning and Control aircraft
SEA 1448

Phase 2B

Anti-Ship Missile Defence radar upgrades for ANZAC Class Frigates
JOINT 2043

Phase 3A

High Frequency Modernisation (HFMOD) – communications and data exchange capability for sea, air and land forces
AIR 5333 ‘Vigilare’ – Aerospace surveillance and command and control system

Phase 2

Tactical Unmanned Aerial Vehicles – airborne surveillance for land forces
LAND 121

Phase 3

‘Overlander’ replacement field vehicles, trailers and modules for land forces (‘Medium Heavy’ class of vehicles only)
JOINT 2070 Lightweight torpedo replacement for ANZAC and ADELAIDE Class Frigates
AIR 5402 Multi-Role Tanker Transport aircraft – Air to Air Refuelling Capability
JOINT 2048

Phase 1A

LCM2000 Watercraft for Landing Platform Amphibious ships
AIR 5276

Phase 8B

Electronic Support Measures upgrade for AP-3C Orion aircraf

Contact: Korena Flanagan (Mr Clare’s office) 0418 251 316

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