Defence updates ‘projects of concern’ list
27 October 2022
The Commonwealth government has added a defence capability program to the “projects of concern” list, just weeks after publicly lamenting cost blowouts and delays associated with a raft of programs.
The Albanese government has listed the Thales Australia-led Civil-Military Air Traffic Management System project as a “project of concern”, citing “significant schedule, technical and cost challenges”.
The project aims to deliver a joint Civil-Military Air Traffic Management System to support civil and military operations, including at 12 ADF air bases around Australia.
According to the government, the project has experienced a two-year delay in forecasting initial and final operational capability.
“It is my expectation that this listing brings more high-level attention, resources and energy — from both Defence and our industry partner Thales Australia — to the task of remediating this project,” Minister for Defence Industry Pat Conroy said.
Conversely, the government has removed the Deployable Defence Air Traffic Management and Control System project from the list, lauding Indra Australia’s work remediating the project.
Indra Australia is reportedly on track to deliver the third and final mission system to Defence in October 2022.
This comes just weeks after the Albanese government released data from the Australian National Audit Office (ANAO), which identified issues relating to a number of key Defence capability projects, valued at a combined $69 billion.
At least 28 projects are behind schedule by a cumulative 97 years and at least 18 projects are over budget, with variations totalling at least $6.5 billion.
Projects listed by the government in a statement to the media include:
- $44 billion Hunter Class Frigate program — construction delayed by four years and expected cost is $15 billion higher than initially anticipated.
- $1.4 billion C-27J Spartan Battlefield Airlifters — delivered four-and-a-half years behind schedule and unable to be deployed into battlefields.
- $3.7 billion offshore patrol vessel project — running one year behind schedule.
- $356 million Evolved Cape Class patrol boats — running nearly a year behind schedule.
- $970 million Battlefield Command System — three years behind schedule.
- Defence SATCOM projects worth $906 million — running between two and four years behind schedule.
According to the Albanese government, these “significant and systemic issues” are the result of mismanagement from the former Morrison government.
Source: Defence Connect