Cost Performance

The project remains within its current approved budget.

Program expenditure in Financial Year 2010-11 was less than budgeted. The contributing factors were; reduced FMS expenditure; gains in foreign exchange rates; partially offset by increased expenditure against budget for industry participants.

Schedule Performance

In response to delays in hull block fabrication, the AWD Alliance acted to limit a potential two year slippage in the completion of HMAS Hobart by up to 12 months. Two key actions were an initial reallocation of hull blocks among Australian shipyards in December 2010, followed by a further reallocation of blocks between the Australian shipyards and Navantia in May 2011. The AWD Alliance also took action in 2010 to place more shipbuilding experts from Navantia, Bath Iron Works and Lloyds Register into the three shipyards.

Since July 2010, the following major events and activities have occurred:

• Support System Detailed Design Review was successfully completed in August 2010.

• First delivery of FMS Aegis equipment arrived in the ASC Shipyard in September 2010.

• Independent Alliance Project Risk Review as conducted in October 2010 by experts from the US Navy, UK Ministry of Defence, ARMADA, Raytheon US and Navantia.

• AWD System Centre at Techport Australia was opened by the Minister Defence Materiel and the Premier of South Australia on 20 December 2010.

• Factory testing, acceptance and delivery of the Combat System is progressing consistent with program milestones.

Significant components of the combat system (for example, the Mk45 gun, typhoon gun, digital EM log, Nixie and several other systems) have arrived in Adelaide and over 98% of the Aegis program adaption software is now coded.

Materiel Capability Performance

All significant government specified capability is currently planned to be achieved and in some warfare areas, the capability will be exceeded. However, Electronic Warfare Radar - Electronic Attack subsystem procurement has been deferred as current technology does not meet the contract and Royal Australian Navy (RAN) requirements. The budget has been preserved to support second generation technology being fielded in the AWD. It is expected that the capability will be available in the 2017-18 timeframe. Decisions made by the program in conjunction with the Capability Manager will ensure that AWD is delivered with the expected capability and affordable cost of ownership; and within the acquisition budget and schedule.