The Hon Stephen Smith
Minister for Defence
The Hon Jason Clare MP
Minister for Defence Materiel
15 October 2010
15/10
Projects of concern - Update
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
JOINT 129
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 aircraft
Contact: Korena Flanagan (Mr Clare’s office) 0418 251 316
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