2.14 The ANAO's review has confirmed that none of the Major Projects in this report have exceeded their approved budgeted cost. However, the cost of schedule slippage provided for in budgetary adjustments can be significant.
2.15 The ANAO's analysis at Table 4 identifies that the DMO had received a total of an additional $295 million in price indexation, between the forecast FOC and the year ending 30 June 2011, for projects in the MPR sample, which are yet to achieve FOC.62 These projects are: Wedgetail ($115.2 million); ARH Tiger Helicopters ($12.5 million); FFG Upgrade ($97.6 million); HF Modernisation ($63.4 million); Armidales ($4.6 million); and Collins RCS ($1.8 million).
Table 4
Price Indexation received since project's original FOC date
Project | Price Indexation to Original FOC ($m) | Price Indexation at 30 June 2011 ($m) | Price Indexation received since original FOC date ($m) |
Wedgetail | 607.8 | 723.0 | 115.2 |
ARH Tiger Helicopters | 405.7 | 418.2 | 12.5 |
Air to Air Refuel | 484.1 | 484.1 | 0.0 |
FFG Upgrade | 132.7 | 230.3 | 97.6 |
HF Modernisation | 84.7 | 148.1 | 63.4 |
Armidales | 69.9 | 74.5 | 4.6 |
Collins RCS | 54.7 | 56.5 | 1.8 |
Stand Off Weapon | 62.6 | 62.6 | 0.0 |
TOTAL | 1 902.1 | 2 197.2 | 295.1 |
Source: 2010-11 MPR and Project Cost Approval Histories. | |||
__________________________________________________________________________________
62 Sourced from the DMO's Project Cost Approval History statements and calculated on the supplementary price indexation the projects received after their original FOC date. This figure does not include additional costs incurred to run the project office, i.e. project staff salary and wages.