Minister for Defence Industry & Minister for Defence - Joint Media Release - Projects of Concern Update

Release details

Release type

Related ministers and contacts

The Hon Christopher Pyne MP

Minister for Defence Industry

Senator the Hon Marise Payne

Minister for Defence

Media contacts

Minister Pyne Media Contact
Rory Grant 
0439 764 809,

Minister Payne Media Contact

Henry Budd 0429 531 143

Department of Defence Media (02) 6127 1999,

Release content

18 August 2017

Project AIR 5431 Phase 1 Deployable Defence Air Traffic Management and Control System and Project AIR 5431 Phase 3 Civil Military Air Traffic Management System have been added to the Projects of Concern list.

Although the projects are under the same program, there is no dependency between the two and their inclusion on the Projects of Concern list is unrelated.

AIR 5431 Phase 1 was awarded to Indra Australia in 2014 to deliver a mix of mobile and transportable air traffic control radars and supporting equipment to allow Defence to control and monitor air traffic while deployed on operations.

The project has experienced schedule delays since approval, and initial delivery is expected almost two years later than originally planned.

AIR 5431 Phase 3 was approved in 2014, to deliver the Defence aspects of a harmonised civil/military air traffic management system under the OneSKY banner—collectively being led and managed by Airservices Australia.

This is a highly complex, inter-departmental project of national significance that has experienced some substantial challenges getting into contract. The challenges revolve around issues with ensuring value for money for the taxpayer. 

The Projects of Concern process has delivered proven results through the remediation of 17 troubled projects with a combined value of around $17 billion.

Other related releases