Projects Of Concern - Update

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15th October 2010, 02:02pm - Views: 949

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The Hon Stephen Smith

Minister for Defence

The Hon Jason Clare MP 

Minister for Defence Materiel

15 October 2010


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 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.

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“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. 




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


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



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


JOINT 2048

Phase 1A

LCM2000 Watercraft for Landing Platform Amphibious ships

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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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